Valga county -

Southern gate of Estonia is the heart of the Baltic Sea. Small country but big punch!

Area 45,227 km2 (similar in size to Denmark or the Netherlands)

Population 1.34 million (68% Estonians, 25 % ) Capital (403,000)

Official language Estonian (belongs to Fenno-Ugric language group, similar to Finnish language)

Currency Euro

Time Zone GMT+2 Country credit ratings Member of EU and NATO Fitch A+ since 2004 S&P AA- Member of Schengen zone Moody’s A1 since 2007 Valga County/ Valgamaa

• Population: 30 158 (01.03.2012), • Population Density: 15,3 inhabitants/ km², • Size: 2 046,49km², 4,5% of the total territory of Estonia, • 13 municipalities - 2 towns, 11 rural municipalities • The biggest municipality and administrative centre - Valga town, 13 563 (01.05.2012) inhabitants (Source: Rahvastikuregister and Valga Maavalitsus) Valga County – location and accessibility

• Tallinn Airport – 250km, • Airport – 80km, • Airport and Port, 165km • Pärnu Port – 145km • Helsinki – 300km, • Russian border – 95km, • Sankt-Peterburg – 410km, • Berlin – 970km • Directly on the border of the Latvian Republic

Mixed Valga county

OTEPÄÄ region

Traditional MULGIMAA

Friendly twin-town Traditional VANA VALGA-VALKA VÕROMAA Tolerant Valga county

• Estonians • Russians • Ukrainians • Latvians • Byelorussians • Finns • Gypsies • Lithuanians • Germans • Poles • Tatars 6

Strengths of the Valga county:

• Geographical position – logistically good location, close to Latvian and Russian market. • Good accessibility - Valga is a junction of inernational roads (Via Baltica) and railways (Rail Baltica), good network of roads in whole county. • Labour force availability including Latvian labour force. Valga twin-town Valka has population of 6000 people, the whole Valka region up to 32 000 which forms a good source for labour and sales. • Cheap labour - brutto income in Valga county was on the 13- 12th place among 15 Estonian counties. • Free trade Zone in Valga town. • Free and unused industrial land exists • Industrial parks development (2 industrial parks are been developed – 1 in county center Valga, another in Tõrva town). Valga county in general terms

• Traditional industries are food and wood industry, agricultural production, metal industry. • There are 1856 companies registered in Valga county. 30% of all companies in Valga County are registred in Valga, 17% in Otepää municipality and 17% in Tõrva town and in its surrounding municipality Helme. Free trade Zone in Valga town

The main activity – rendering of customs and warehouse services to the goods delivered to the Free zone from the EU and exported to the third countries, no need to pay VAT. ERTS Group provides neutralization of the documents, readdressing of goods, changing the plan of railcar movement order to reduce cost of the railway freight. Vocational education

• Valga County Vocational Training Center (VKOK) in Valga arranges vocational training for car mechanic, social worker, home servicing specialist, cook, logistics customer service specialist, shop assistant, log house constructor, garments tailor and joiner. It is possible to get training in welding. • Tartu Vocational Education Center (TKHK) in Tartu arranges vocational training in fields of metal work and machinery, incl locksmith, welding, mechatronics, electrician.

Biggest companies in Valga County

Aclima Ltd - sports-underwear factory; located in Valga Moon Ltd – shoe-facotory, both – own brand and subcontracting; 70 employees Valga Gomab Ltd – 256 employees, timber furniture producer; located in Valga Atria Estonia Ltd – 70 employees, meat processing factory; located in Valga UPM Kymmene Otepää Ltd – 170 employees, ply-wood producer; located in Otepää municipality Meat Industry Edgar Ltd – 27 employees, high quality meat- products; located in Otepää municipality Meat Industry Oskar Ltd - 17 employees, high quality meat- products; located in Otepää municipality Skan Holtz Helme Ltd – 70 employees, log-house-producer; located in Helme municipality Jumek Ltd – 110 employees, timber furniture; located in Puka municipality

Biggest companies in Valga County

Ritsu Ltd - 80 employees, log-house-producer; located in Helme municipality EHA Metalli- ja puidutooted – 50 employees, trailers, containers, located in Valga. Moodul Ltd, 50 employees, metal/ steel constructions for building industry, containers, subcontracting; located in Valga Otepää Metall Ltd– 20 employees; steel constructions and containers, subcontracting; located in Otepää community Otolux Ltd– 44 employees; containers, hunting equipment; located in Tõlliste municipality Sanwood Ltd - 114 employees, timber furniture; located in municipality Valga Ferrum Ltd– 26 employees; production and assembly of machines made of metal/ steel, subconrtacting; located in Valga Techne Töökoda Ltd– 22 employees; replacement parts for vehicles in agricultural industry, subcontracting; located in Otepää

Labour market in Valga county

Valga Estonia Data of county

IV quarter Average gross monthly wage 733 euros 916 eurot 2012

Registered unemployment 9,1% 5,7% 31.12.2013 rate in labour force

Labour force 12 600 651 700 2013 average aged 16 - pension age Labour market in Valga county

% of GDP Value 2009 2009

Primary sector 9,4% 14,2 mln €

Secondary sector 30,9% 46,4 mln €

Tertiary sector 59,6% 89,4 mln €

• Rising primary sector • Declining service sector • Volatile industry sector - dependence of situation in the countries of export Source:Valga county entrepreneurship research, 01.11.2011 Labour market in Valga county

No Bachelor’s Master’s elementary studies studies education 4% 1% 1% Vocational higher education 2% Basic education 28%

Secondary or/ and vocational education 64%

31.12.13 – 1151 unempoyment persons, rate 9,1% Labour market in Valga County 30.06.12

Higher fucntionaries, Top specialists managers Armed forces Middle specialists, technicians Shop-floor Office workers and clerks

Service and Appliance and sales workers machine operators

Skilled and handicraftsmen

Agricultural, fishery skilled workers Väike-Laatsi Industrial Park in Valga town • Detailed plan has been approved by the town government autumn 2008 • Industrial and commercial land based on the detail plan • 60 ha lands with infrastructure accessibility • Power consumption 220 V and 380 V • Local heating • Water and sewerage • Existing enterprises in the industrial area: - Valga Moodul Ltd. – metal works - Eha Wood and Metal Works • Location close to the border of Estonia-, major highways (distance 3 km) and international railway station (distance 2 km) Väike-Laatsi Industrial Park in Valga town Väike-Laatsi Industrial Park in Valga town Väike-Laatsi Industrial Park in Valga town • Adventages of the industrial area: - Regional advantages: located close to Latvia and 95 km from Russian border - Transportation advantages: located close to major highways and international railway. - Low land price and rent • The industrial park is suitable for light and heavy manufacture, both for export and for mix of domestic and international sales.

Tõrva Industrial Area, Tõrva town

Activites since 2004 made by Tõrva Town Government • valid detailed plan • valid infrastructure construction plan • Cost-benefit analysis 2010-2020

• At the moment there are altogether 20 companies connected with wood, metal and sewing industry and trade-logistics – sewing (Hooviekspert Ltd, Saarepere Ltd), wood (Scandinavian Furniture Ltd, Rabatec Ltd), logistics (Heelix Grupp Ltd), trading (Vahtre VK Ltd, Nave Ltd) and metal (RS Motorsport Ltd)

Tõrva Industrial Area, Tõrva town Tõrva Industrial Area, Tõrva town • Size of the industrial area is 14,5 hectares and includes 22 cadastral units (most of these are already built-up) • In the area can be hired existing buildings to start-up for action or use empty cadastral units to build new industrial buildings. • The existing boiler house has additional back-up connections for 2 MW • Electricity is in good condition (new substations) and has free capacity for new companies • Communications (water, canalization, telephone and Internet) are located in cadastral units • Routes are hard covered. Industrial landed property „Lekto“

• Location: village, Karula parish – just beside the border of Valga town (6km from the town centre) • Register identification: 28901:002:018 • Area of the plot: 18,43ha • Water well, sewerage, electricity. • Partially built – building were initially meant for production of potato chips, which never happened. • This real estate has been used for production of pellets.

Property in Puka municipality–

furniture production unit/ Jumek Ltd

• Address: Suurefarmi, village, Puka municipality • 47 km from Tartu • Land register no 60802:002:2201 • Belongs to Jumek Ltd, furniture producer • Area of the plot 5,38 ha • 4 buildings with area of 3 400 m2, possiblity to expand. • One building is renovated for furniture production. • Different buildings are connected via galery which is also renovated. • Renovated office zone with toilets and shower. • Enough electricity power as there is trafo on the plot.

Property in Puka municipality– furniture production unit/ Gomab Furniture Ltd

• Address: Tööstuse 1, Puka hamlet • 49 km from Tartu • Land register no 60803:001:0860 • Belongs to Gomab Furniture Ltd, furniture producer • Factory buildings with useful/ production area of 3 045 m2 • Area beneath buildings 6 308m2, area of total plot 30 711m2. • Existing electricity affiliation. • Water from own drilled well. • Bio-pond for sewrage (owned by the municipality).

Property in Puka municipality– furniture production unit/ Gomab Furniture Ltd

Propery in Valga

• Address: Tranpordi 1, Valga • Land register no: 85401:001:0131 • Area of the plot 96 151 m2 • Area beneath buildings 12 960 m2 • Possiblity to enlarge. • More information http://www.kv.ee/5- kaarhalli-2-viilhalli-traspordihoone- remonditook- 2064061.html?nr=1&search_key=50abc 04a2eba96bc134b32012e68c300

Property in Valga

• Address: Metsa 19, Valga • Land register no: 85401:011:0390 • Area of the plot 53 167 m2 • Area beneath buildings 17 116 m2 • Exist electricity, water sewerage • More information about the buildings on the plot http://www.ehr.ee/v12.aspx?loc=0101&p ageNr=2

Living enviroment in Valga county • There are 24 schools in Valga County from which there are 7 high schools/ gymnasiums and 13 elementary schools. • There are 3 health care centers in Valga County where people are provided with special and stationary health care (Valga Hospital, Tõrva Health Center and Otepää Health Center). • Winter capital Otepää has gained fame with its world class skiining possibilities and competitions. • Well-known and filled with visitors are also concerts held on the shores of lake Leigo, flying and airplaning days at , the gatherings of old American cars in Valga and festivals held between two cities Valga and Valka. Valga county to visit

31 Valga county to enjoy Leigo Lake Music Festival

32 Valga county to live 70% condsider they are happy here 

Thank you! 33 Contact person

Elo Mets Investor Consultant Valgamaa Arenguagentuur/ Valga County Developent Agency

E-mail: [email protected] Mob. +372 511 3932 Skype: elo.mets www.arenguagentuur.ee