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Eastern Estonia

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Eastern Estonia Kunda Nordic Cement Ltd BUSINESS OPPORTUNITIES IN EASTERN ESTONIA Endla Nature Reserve EXISTING FOREIGN COMPANIES IN EASTERN ESTONIA 2 ABOUT ESTONIA ▪ Population: 1,316,000 ▪ Total area: 45,336 km² ▪ Population density: 30 inhabitants per km² ▪ Capital city: Tallinn ▪ Length of sea border of continental Estonia: 1,242 km ▪ Member of UN, EU, NATO, OECD, WTO, euro area, Schengen area ▪ Time zone: GMT +2 hours ▪ The offi cial language is Estonian. English, Russian, Finnish and German are widely spoken as well. ▪ Daytime temperature: 0 °C to –30 °C in winter and +15 °C to +30 °C in summer Why invest in Estonia Foreign enterprises are attracted to Estonia for the following reasons: ▪ Good business climate ▪ Corporate income tax rate for reinvested profi t is 0% ▪ Access to the EU Single Market ▪ Low level of corruption ▪ Low manufacturing setup costs and the presence of supporting industries, a highly-developed infrastructure and a smooth transportation system (inland transport, rail connections, ports) ▪ Entrepreneurial tradition ▪ Estonia is politically and economically stable and has a fl exible, well-educated and comparatively low-cost labour force: ▪ 1st on the Tax Competitiveness Index (Tax Foundation 2016) ▪ 3rd on the Index of Economic Freedom in the EU (9th in the world), (The Heritage Foundation 2016) ▪ 12th on the Ease of Doing Business Index (World Bank 2016) Port of Sillamäe and Sillamäe Free Zone 3 ABOUT EASTERN ESTONIA ▪ Eastern Estonia consists of four very distinct counties: Ida-Viru (with Jõhvi city as its centre), Jõgeva (Jõgeva city), Järva (Paide city) and Lääne-Viru (Rakvere city) counties. ▪ Largest cities: Narva (57,100 inhabitants), Kohtla-Järve (35,200) ▪ Population: 264,000, share in population of Estonia 20.1% ▪ Area: 12,029 km², share in total area of Estonia 27.7% ▪ Population density: 22 inhabitants per km² ▪ Average monthly wages: 900–1,000 euros ▪ Average value of an apartment purchase and sale transaction: 150–280 euros/m² ▪ Ida-Viru county is one of the easternmost counties of the EU Single Market and the location of the most important border control posts with Russia. Ida-Viru county plays a vital role in the Estonian economy – nearly a half of the electricity consumed in Estonia is produced here. Oil shale is an important resource in terms of the economy of the county. Oil shale is used in energy production but it is also a signifi cant raw material of the chemical industry (production of shale oil). Ida-Viru county has a long tradition of light industry. Wood processing, the manufacture of building materials and the metal industry have an essential role in the economy of the county. The Port of Sillamäe is capable of serving all vessels coming through the Danish Straits. In recent years, Ida-Viru county has become a major tourist destination in Estonia. ▪ The largest enterprises of Lääne-Viru county operate in the manufacture of food products, wood products, furniture, metals and building materials. In addition to the county capital Rakvere, other major business regions include the cities of Kunda and Tapa, where several important industries can be found thanks to the Port of Kunda and Tapa Army Base. Lääne-Viru county is also where the largest foreign investment in Estonia – an aspen pulp factory owned by Heinzel Group – was made. In Rakvere, there is the Rakvere Smart House, which helps the enterprises, public authorities as well as research and development institutions of the sector create, develop and implement smart house technologies, making our everyday environment more convenient, energy-effi cient and safe. ▪ Jõgeva county is traditionally an agricultural region and the county still boasts the largest number of primary sector enterprises. Other major business sectors include wood processing, the manufacture of household chemicals, food processing and the metal industry. Jõgeva county is the location of the Estonian Crop Research Institute, which continues the long-established traditions of fi eld crop breeding and agrotechnical research on environmentally friendly and eff ective agrotechnologies of fi eld crops, on the impact of fi eld crop breeding and agrotechnologies on yield and quality, but also on plant protection, plant health and fertilisation. ▪ In geographical terms, Järva county is situated in the middle of Estonia. Järva county is known for enterprises engaged in wood processing and engineering. Thanks to fertile soils, there are also several agricultural enterprises and food industries in the region; the manufacture of building materials and the metal industry are well-developedp as well. 4 Infrastructure Vergi Gulf of Finland Kunda Narva-Jõesuu Kunda Suur-Lootsi Aseri Toila Sillamäe Purtse Jõesadam Sillamäe Kohtla-Järve 4 Rakvere Jõhvi Narva Kulgu Püssi Kiviõli Tapa Tamsalu Alajõe Remniku Vasknarva Jõekääru Lohusuu Paide Mustvee Mustvee Türi Raja Omedu Jõgeva Sassukvere RUSSIA Põltsamaa Lake Peipsi 20km Gas pipeline D-category Kunda Port Electric lines Narva City Gas distribution station Vergi Small port 220 kV Türi City without Main road Aseri Port development 330 kV municipal status area Basic road 110 kV Sources: Elering, Estonian Land Board, Airport or airfield 35 kV Railway State Port Register, Statistics Estonia Foundation Ida-Virumaa Industrial Areas Development 5 Natural resources Gulf of Finland Narva-Jõesuu Kunda Kohtla-Järve Narva Sillamäe Kiviõli Rakvere RUSSIA Paide Mustvee Lake Peipsi Jõgeva Põltsamaa 10 km 20 km Deposits Mined-out areas Limestone Narva City Oli shale Surface mine Clay Main road Peat Underground mine Phosphate rock Operating mines Sources: Estonian Land Board, Statistics Estonia Mineral reserves, 2015 ▪ Oil shale: 4.7 billion tonnes ▪ Phosphorite: 2.9 billion tonnes ▪ Peat: 0.6 billion tonnes Forest land, 2015 ▪ Area: 672,000 ha, 29.1% of total forest land in Estonia ▪ Forest ratio: 55.9%; in Estonia 53.1% ▪ Most common tree species: birch, pine, spruce and alder ▪ Growing stock: 72.9 million m³ ▪ Felling volumes: 3.6 million m³ Agricultural area, 2016 ▪ Agricultural lands with the most fertile soils in Estonia are found in Lääne-Viru, Järva and Jõgeva counties. ▪ Sown area of cereals: 124,800 ha (35.5% of total sown area of cereals in Estonia) ▪ Sown area of forage crops: 58,800 ha (32.3%) ▪ Sown area of industrial crops: 20,500 ha (27.2%) ▪ The area is suitable for growing open-fi eld and greenhouse vegetables and greens. 6 Gross domestic product, 2015 Structure of value added GDP at current prices, million euros 2,533.4 Agriculture, forestry and fishing Value added total, million euros 2,188.8 7% Agriculture, forestry and fi shing 156.5 Industry and construction 1,055.5 Services Services 976.8 45% Eastern Net taxes on product, million euros 344.6 Estonia Region´s share in GDP, % 12.4 Industry and GDP per capita, euros 9,460.8 construction GDP per capita, % of Estonian average 61.4 48% Exports by commodity chapter, 2016 Ida-Viru county Petroleum oils and oils obtained from bituminous minerals Top countries of Boilers, machinery and mechanical appliances destination: Organic chemicals ▪ Netherlands ▪ Synthetic filament yarn Russia ▪ Finland Wood and articles of wood Million euros 0 50 100 150 200 250 Lääne-Viru county Wood and articles of wood Top countries of Furniture and parts thereof; prefabricated buildings destination: Wood pulp ▪ Latvia ▪ Ships' derricks; cranes Finland ▪ Denmark Trailers and semi-trailers Millio euros 0 1020304050607080 Järva county Dairy produce Top countries of Furniture and parts thereof; prefabricated buildings destination: Wood and articles of wood ▪ Finland Wheat and meslin ▪ Netherlands ▪ Germany Rape or colza seeds Million euros 0 5 10 15 20 25 Jõgeva county Animal or vegetable fats and oils Top countries of Wood and articles of wood destination: Residues and waste from food industries ▪ Lithuania Furniture and parts thereof; ▪ Finland prefabricated buildings ▪ Latvia Dairy produce Million euros 0 5 10 15 20 25 30 7 Labour market, 2016 General labour market indicators in counties, thousands Ida-Viru Jõgeva Järva Lääne-Viru Inactive 15–74-year-olds 110.1 23.8 23.2 44.5 36% Labour force 68.6 15.1 15.7 28.9 Eastern employed persons 59.4 14.3 14.4 26.0 Estonia Employed unemployed persons 9.3 0.8 1.2 2.9 57% Inactive persons 41.4 8.7 7.6 15.6 Unemployed 7% 15–24 6% Employed persons in counties by age, thousands Ida-Viru Jõgeva Järva Lääne-Viru 50–74 40% Employed persons 59.4 14.3 14.4 26.0 Eastern 15–24 3.2 1.2 0.7 1.4 Estonia 25–49 31.2 8.2 7.3 15.3 25–49 50–74 25.0 4.9 6.5 9.2 54% Agriculture, forestry and fishing Employed persons in counties by economic sector, thousands 7% Ida-Viru Jõgeva Järva Lääne-Viru Employed persons 59.4 14.3 14.4 26.0 Industry and agriculture, forestry and 1.4 2.2 1.6 2.1 Eastern Services Estonia construction fi shing 57% 36% industry and construction 22.8 4.2 5.4 9.0 services 35.2 7.8 7.4 14.9 Primary or basic education Higher 11% Education level of labour force in counties, thousands education 31% Ida-Viru Jõgeva Järva Lääne-Viru Labour force 68.6 15.1 15.7 28.9 Eastern primary or basic education 4.9 1.8 2.7 5.2 Estonia secondary education 40.8 8.9 9.0 15.8 higher education 22.9 4.4 3.9 8.0 Secondary education 58% Vocational and higher education institutions and competence centres Ida-Virumaa Vocational Education Centre http://www.ivkhk.ee/en/about-us/ Järvamaa Vocational Training School http://jkhk.ee/pages/school-introduction.php Luua Forestry School https://luua.kovtp.ee/web/eng Rakvere Vocational School http://www.rak.ee/general-information/ Sillamäe Vocational School http://www.svtc.ee/ Väike-Maarja Vocational School http://vmok.v-maarja.ee/ Lääne-Viru College http://www.lvrkk.ee/?lang=en Tallinn University Rakvere College http://www.tlu.ee/en/rakvere-college University of Tartu Narva College http://www.narva.ut.ee/en Virumaa College of TTU http://www.ttu.ee/en/?id=64614 Estonian Corp Research Institute http://etki.ee/index.php/eng/ Oil Shale Competence Centre http://www.pkk.ee/en 8 Entrepreneurship ▪ In 2016, there were approximately 15,000 economically active enterprises in Eastern Estonia; 25 of them had 250 or more employees, 149 had 50–249 employees and 777 had 10–49 employees.
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