Special edition newsletter
Invest in Montenegro – Opportunities, Insights, Growth
Nebojša Šolaja, CEO of Elkon: From Montenegro, we export knowledge and technological solutions to four continents
(Photo: Elkon)
At the same time, the company is facing a new development phase in which automation is increasingly being linked with artificial intelligence. Elkon is currently developing AI models for air-conditioning management in hotels and large public facilities, as well as for the management of technological processes of alumina electrolysis, in cooperation with partners from Montenegro and Switzerland. In an interview with eKapija, Šolaja talks about how international engineering references are being built from Montenegro, why the professional staff is a bigger limitation than conquering new markets, what AI can specifically change in industrial automation and where Elkon sees room for further growth.
Elkon is a company from Podgorica that operates on markets all over the world. How important is international business to the company today, and in which markets are you most active?
- International business is today a very important part of Elkon`s business. Montenegro is a small market, and for a company that wants to develop in the fields of industrial automation and advanced control solutions, it is natural to look for its market outside the country`s borders. Working on foreign projects is certainly more demanding because we encounter different standards, technical requirements, different climatic conditions, etc.
Over the past years, we have worked on projects in Europe, Africa, Asia, and North and South America. We are especially present on projects related to industrial automation, metallurgy, water management and management and regulation of dams for hydropower plants, irrigation, flood protection, etc. Currently, we have excellent cooperation with companies from England and Switzerland, whose long-term partners we are on projects all over the world.
How did a Montenegrin engineering company manage to position itself on the international market and compete with major global players? What was crucial for Elkon to position itself as a partner on projects in Europe and other continents?
- I don`t think there was a single breaking point, but rather it was a process that lasted for years.
In our business, company size is not always crucial. Much more important are knowledge, reliability and ability to solve a problem. Large international companies with whom we cooperate must be sure that we will finish what we undertake with quality and on time, regardless of whether the project is located a few kilometers or a few thousand kilometers away.
The second important thing is specialization. We have been dealing with industrial automation for a long time and it is an area we know relatively well. We were not trying to be great at everything, but good at what we do.
And finally, I think that references are extremely important. Once you have successfully completed the first serious international project, it is much easier to get the next one. After a certain time, you are no longer seen as a company from a small country, but as an engineering partner that can solve a specific problem with quality.
The very fact that we have long-term cooperation with our main foreign partners is probably proof of the quality we offer at a competitive price.
Water supply to the settlement of Bigovo from the Regional Waterworks (Photo: Elkon)
Is it a bigger challenge for you today to conquer the market or to find enough professional staff for such growth?
- Today, in my opinion, the bigger problem is finding high-quality professional staff. Unfortunately, this problem will become more and more pronounced.
As I already said, conquering the market is a continuous process, but it is all the more difficult if there is not enough professional staff in the company. The fact is that you cannot form a good automation engineer in a few months. It takes years of working on real systems, programming, troubleshooting and designing.
Automation is also specific because it requires a very wide range of knowledge. You must know electrical engineering, the process you manage, PLC and SCADA programming, communication protocols, regulation, sensors, and information technology. That`s why we try to develop our own staff and involve younger engineers in serious projects as early as possible. I think that the lack of quality engineers will be one of the biggest limitations for the growth of technology companies in the region in the coming years.
Your dam management automation solutions have been installed on more than 30 projects worldwide. Which projects were the most important for you and what did their realization bring you?
- It`s hard for me to single out just one project. Each of those systems had its own specifics, and we worked in very different countries and conditions.
For me, perhaps the most important were the first international projects, because they showed us that the knowledge we have can be applied anywhere in the world on a completely equal basis. Later, increasingly complex systems came with more complex automation, remote monitoring, more complex communication and requirements for very high reliability. I would like to mention the project of managing two dams for the needs of the waste water interception system in Dubai. There, we encountered extremely strict technical requirements, but also a special challenge in the form of extreme temperatures and the influence of the proximity to the sea.
Such projects, in addition to references, brought us great practical experience, but it was precisely working on such projects that improved us significantly as an engineering company.
Project for the management of two dams for the needs of the waste water interception system in Dubai (Photo: Elkon)
Elkon has a number of important projects behind it in Montenegro, from the reconstruction of the water source Mareza 2 and the implementation of the SCADA system in the Podgorica Waterworks, to participation in designing the first section of the highway. Which projects would you single out as the most significant for the development of the company and what role can Elkon play in the implementation of new large projects in Montenegro today?
- Yes, Elkon has worked on many important infrastructural facilities in Montenegro during its almost 19 years of existence. You asked about the implementation of the reconstruction of the Mareza 2 water source. It was a very demanding and big job that came somehow in the first years and where we showed and proved to ourselves and our respected partners that we are capable of carrying out such a complex project. We did this together with Japanese partners Yokogawa and Torishima and the domestic company ETG group. For this job, we received all the praise from our Japanese colleagues as well as from the management of the Waterworks in Podgorica. Apart from this, I will only mention some more important projects that we have done and are currently doing in the country. They are:
- CANU building in Podgorica
- The building of the Municipal Museum in Podgorica
- Moj Lab Hospital in Podgorica
- Several hotels in Podgorica in the south and north of the country. I would especially like to point out the high category hotels Teuta in Risno, Emerald in Žabljak, Ami in Petrovac, Lazure in Herceg Novi, Merit in Budva, etc.
- Several primary schools in Podgorica
- SCADA system for the Waterworks in Bar
- Aqua park "Imanje Knjaz" in Podgorica
- Water supply to the settlement of Bigovo from the Regional Waterworks
- The reconstruction of King Nikola`s Castle in Bar
An especially interesting segment of your development is artificial intelligence. What exactly are you working on and what will AI change in the way automation systems work?
- We see artificial intelligence as the next development step of industrial automation.
Classical automation works by the engineer pre-defining the logic by which the system reacts. PLC, SCADA and control systems then execute that logic very accurately. However, modern industrial systems produce a huge amount of data that is often only partially used today.
AI enables us to recognize patterns from these data that are difficult for humans to perceive, to predict certain process states and to propose an optimal way of working based on historical data.
We are particularly interested in combining classic industrial automation, which we know very well, with machine learning and AI algorithms. We don`t think that AI will replace PLC or classical automation systems. A much more realistic model is for AI to be an extra intelligent layer on top of the existing system.
We are currently working on two AI model development projects within the program of the Fund for Innovations of Montenegro. Here I have to take the opportunity to praise the excellent work and great professionalism of this Fund.
The first project is the development of an AI model for the management of air conditioning systems in hotels and large public facilities. We are working on this project together with the Faculty of Information Technologies of the Mediterranean University.
The second project is the development of an AI model for managing technological processes of alumina electrolysis. The project is being carried out together with the Swiss company Metsol. The models are being developed on a concrete electrolysis batch in Cameroon.
Moj Lab Hospital in Podgorica (Photo: Elkon)
You have announced the development of AI solutions for managing air conditioning systems in hotels and public facilities. How will that solution work in practice and what savings or other effects do you expect?
- The idea is that the existing BMS system no longer manages the facility only according to predetermined time programs and set process values.
The AI model would use data from the facility itself, outside temperature and weather forecast, history of energy consumption, room occupancy and behavior of the facility over time. Based on this, it could estimate in advance how much energy is needed and when certain systems should be activated or reduced.
For example, a classic system can turn on the air conditioning at a specific time. An intelligent system can learn how long it takes for a specific object to reach the desired temperature depending on the external conditions, the current occupancy of the object, the type of event, and determine the optimal moment for switching on or setting the set point.
The aim is not just to reduce energy consumption. Equally important are user comfort, smoother operation of the equipment and reduction of the number of operating hours of individual devices, which in the long run can reduce maintenance costs.
We expect significant energy effects, but I wouldn`t bid on percentages in advance until we confirm them through work on real buildings. As an engineer, I trust a measured and verified result more than a good marketing judgment.
Will AI in the future be more of a tool for optimizing existing systems or do you expect that it will completely change the way of designing and managing industrial and infrastructure facilities?
- In the short term, AI will first of all be a very powerful tool for optimizing existing systems. It is also the most logical way of its application, because you cannot completely change industrial facilities overnight.
In the long term, however, I expect a much bigger change.
Nowadays, the designer defines most of the behavior of the system in advance. In the future, we will likely design systems that have a basic secure control structure, but will learn part of their optimal behavior during exploitation.
However, in industry one should always be more cautious than in some other areas of AI application. There are processes in which the algorithm`s decision cannot simply be accepted without limitation. The security and deterministic behavior of the system must remain a priority.
That`s why I expect a combination of classic automatics and AI, not replacing one with the other.
How difficult is it in Montenegro to develop such technological solutions and to connect the economy with the scientific research sector? What could the state do so that more domestic companies invest in the development of their own technologies?
- It is not easy, first of all because the market is small and the development of new technologies requires time, people and serious financial resources, without guarantee that you will get a commercial result immediately.
I think that in Montenegro there is quality knowledge in both companies and universities, but the connection between the economy and the scientific-research sector should be much more intense.
Companies have real industry problems, data and markets, while universities have the research potential and people who can deal with the more fundamental part of the problem. When it comes together, it can create a serious product. I would like to point out the cooperation between Elkon and the Mediterranean University as an example of good practice in this area.
The state could help through simpler and more accessible co-financing programs for research and development, tax incentives for companies investing in the development of their own products and especially through the support of joint projects of companies and universities.
For a small country like Montenegro, the development of knowledge and technology is particularly important, because we can hardly compete with quantity on the world market, but we can with knowledge. I think that Elkon is a good example of how it is possible to export high-tech products from Montenegro to the world`s most demanding markets.
What are Elkon`s plans for the coming years: new markets, development of own technologies or stronger participation in big projects in Montenegro?
- All three, but probably with an increasing emphasis on developing one`s own knowledge and conquering new technological solutions.
We want to continue our international business and to expand the markets where we can offer specialist solutions from industrial automation. At the same time, we want to take part in serious projects in Montenegro, especially where a high level of automation and technical knowledge is required.
The main goal is to follow world trends in this area, which is not an easy task because we are witnessing a very dynamic development that will accelerate even more with the introduction of AI technologies. Apart from that, we want to build our place both on the domestic and global market and remain recognizable for quality and reliability for all our partners.
However, in the long term, perhaps I am most interested in developing my own solutions. That`s why we want to try to turn the experience we`ve gained over the years on a large number of industrial systems into our own solutions, especially in the areas of advanced automation, SCADA systems, and the application of artificial intelligence.
Our goal is not for Elkon to become a large company in terms of number of employees. It is much more important to me that it is a technologically strong company that can work equally with the best and be their preferred and reliable partner.
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