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INVEST in KARLOVAC COUNTY, Croatia Investment Profile Content

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INVEST in KARLOVAC COUNTY, Croatia Investment Profile Content INVEST IN KARLOVAC COUNTY, croatia INVESTMENT PROFILE CONTENT KARLOVAC COUNTY 4 LOCATION 5 HUMAN CAPITAL 6 COST COMPETITIVENESS 6 ECONOMY AND BUSINESS CHARACTERISTICS 8 INTERNATIONAL BUSINESS ENVIRONMENT 9 ATTRACTIVE INVESTMENT INCENTIVES 11 READY–MADE INVESTMENT LOCATIONS 12 INTERESTING FACTS 18 BASIC INDICATORS LOCATION Karlovac County covers 5.9% of the total Karlovac County is positioned in the middle of Croatia, at the intersection of the most important roads connecting Croatian territory and has its county seat in REGIONAL HIGHLIGHTS Europe with the Adriatic coast and is bordered by the Republic of Slovenia in the North-West and by Bosnia and Karlovac. Herzegovina in the South-East. The important transit, traffic and geopolitical GOOD GEOSTRATEGIC POSITION The County is continental and has one of the most valuable hydrogeological systems in Croatia, with rivers Kupa, position of Karlovac County with extraordinary Dobra, Mrežnica and Korana. A part of Plitvice Lakes National Park adds to this extraordinary biodiversity. nature resources defined and determined its GREAT ACCESSIBILITY AND EXCELLENT TRANSPORT INFRASTRUCTURE The vicinity of Zagreb (54 km), the capital of Croatia and the strongest economic centre, as well as Rijeka (110 economic development, giving the County a km), the largest Croatian seaport, marked the development of the County as a large manufacturing area. unique and great geostrategic importance. COST COMPETITIVE EUROPEAN CORRIDOR Vb (BUDAPEST – RIJEKA) TEN-T MEDITERRANEAN ROUTE THE MOST VALUABLE (E65 Budapest - Zagreb – Karlovac – Rijeka) Zagreb – Karlovac – Rijeka E71 Budapest – Zagreb – Karlovac – Split - Dubrovnik) Zagreb – Karlovac – Split HYDROGEOLOGICAL SYSTEM IN THE REGION VICINITY OF ZAGREB INTERNATIONAL VICINITY OF THE BIGGEST SEA PORT IN AIRPORT (63 KM), RIJEKA INTERNATIONAL CROATIA, PORT OF RIJEKA (117 KM) AIRPORT (111 KM) LAND AREA 3,626 km2 COUNTY SEAT Karlovac ADMINISTRATION 5 towns (Karlovac, Duga Resa, Ogulin, Ozalj, Slunj) and 17 municipalities RIVER PORT Karlovac Ozalj Zagreb POPULATION (EST. 2016) RAILWAY PORT 120,321 AIRPORT CLIMATE Duga Resa Continental RAILWAY Ogulin HIGHWAY GDP PER CAPITA (2015) € 8,007 LOCAL ROAD Slunj UNEMPLOYMENT RATE (2016) 21.2 % AVERAGE MONTHLY GROSS SALARY (2015) € 946 4 5 HUMAN CAPITAL EDUCATION POSSIBILITIES IN THE COUNTY There are 15 secondary schools in the County. In Majority of active working population. addition to a science school and three grammar schools, majority of others have curriculums in nursing, economy, tourism, trade, forestry and carpentry, as well as industry and crafts. AGE Structure IN KarloVac COUNTY The Karlovac University of Applied Science offers studies in Management, Work Safety and 13 % Protection, Civil Engineering, Hunting and Nature 0-14 Protection, Mechatronics, Food Technology, 22 % 15-64 Nursery School, Textile Technology and Catering. 65 % 65 and more Since 2008, the Rijeka University Economic Faculty has offered the Business Economics Studies in Source: Croatian Bureau of Statistics, Population Estimates 2016 Karlovac. ELECTRICITY PRICES FOR INDUSTRIAL CONSUMERS (€ PER KHW), 2017 S1 CROATIA COST COMPETITIVEness Investment costs SLOVENIA SLOVAKIA Cost competitiveness, in terms of initial investment costs, utility prices BULGARIA and salaries is significant advantage that qualify Croatia and Karlovac 33% lower POLAND county as an excellent destination for expanding business activities, EU 28 growing the market share and improving profitability. than EU28 average CZECH REPUBLIC HUNGARY 0,00 0,01 0,02 0,03 0,04 0,05 0,06 Source: Eurostat 2018; 70 000 < Consumption < 150 000 Mwh AVERAGE GROSS EARNINGS PER HOUR (2015) PRICE LEVEL INDICES FOR INVESTMENT 2016 KARLOVAC COUNTY CROATIA 67 % CROATIA EUROPEAN UNION (28 THE LOWEST NATURAL GAS PRICES MORE THAN 4 X LOWER EUROPEAN 100 % UNION (28 COUNTRIES) ELECTRICITY PRICES ARE AMONG THE LOWEST AVERAGE MONTHLY GROSS SALARY COUNTRIES) FOR INDUSTRIAL USERS IN EUROPE THAN IN THE EU 0 5 10 15 20 25 0 20 40 60 80 100 Source: Eurostat Total Labour Costs, 2018; Croatian Bureau of Source: Eurostat 2018 Statistics, 2018 6 7 ECONOMY AND BUSINESS CHARACTERISTICS INTERNATIONAL BUSINESS ENVIRONMENT The most important economic sectors of the County are processing industries, trade, construction, transportation and storage. The key branches of the processing industry, well known in the County for its long tradition and skilled workforce, includes food processing and beverage industry, metal processing, the machinery & equipment industry Semmelrock and the wood industry. As a leading supplier of high value concrete pavers in the Central and Eastern Europe, The biodiversity of the ecosystem and the preserved natural and cultural-historical heritage represent significant Semmelrock offers stunning landscaping solutions for private and public spaces. Its production and distribution network comprises 17 plants and 11 countries in CEE. One of potential for investment in sustainable development of agriculture (eco-production) and continental tourism, which PRODUCTION OF CONCRETE Semmelrock plants is located in Ogulin. The Company chose Ogulin because it is very well PAVERS has recorded a steady increase in the number of arrivals and overnight stays in recent years. located at the intersection of the highways that connect the region with all other parts of Croatia. DS SMITH Key economy sectors in the county Manufacturing industries The Company injects moulding experts with 50 plus years’ experience developing reusable packaging and translates customer needs into optimised packaging design utilising the latest injection moulding techniques and state-of the-art design software. It supplies returnable beverage crates to numerous beer and water companies such as: 2.4 PRODUCTION OF CORRUGATED 3% % Heineken, Molson Coors, AB InBev, Carlsberg, Coca Cola, Jamnica and many others. 6.4% PACKAGING 9.7% 12.9% 25.7% TURBINE Works Ltd. 59.4% Industrial and marine production program 16.6% 13.8% • Steam turbines and auxiliary equipment in power plants • Marine and industrial centrifugal pumps • Marine and industrial tube and shell heat exchangers 23.3% METAL INDUSTRY • Water ejectors • Services (erection, maintenance and overhauls of steam turbines, compressors, gearboxes and pump; reversible engineering for steam turbines and pumps; vibrodiagnostic power machines; dynamic balancing; noise measurement and analysis) Manufacturing industry Food manufacturing industry Wholesale and retail Manufacture of fabricated metal products HS Produkt Construction Beverage manufacturing industry HS Produkt is one of the world’s leading manufacturers of small arms which, with its continual innovations in technology and production as well as with top-quality new products, has a Transport and storage Machinery manufacturing industry prominent position in the world market. The company employs 1,700 in its modern factory in Karlovac. PRODUCTION OF SMALL ARMS Waste and water management, Wood processing industry remediation activities Source: Financial Agency of the Republic of Croatia, Croatian Chamber of Source: Financial Agency of the Republic of Croatia, Croatian Chamber of Economy 2018 (data for 2016) Economy 2018 (data for 2016) 8 9 HEINEKEN HEINEKEN Hrvatska is among the most important companies in Karlovac and Karlovac county. The brewery in Karlovac has a long brewing tradition since 1854 while today it is AttractiVE INVestment INCENTIVES a modern production facility and the company holds a strong number two position on the Croatian beer market. Sustainability is one of the company’s strategic pillars. A new green, Up to 1 million EUR cash grant for capital costs of the investment project energy efficient warehouse was recently opened in Karlovac. Furthermore, the brewery uses Up to 45% ZelEN - green electric energy obtained from renewable sources. HEINEKEN Hrvatska is very INTERNATIONAL BEER Up to 0% corporate profit tax for 10 proud of its local sourcing initiative which directly contributes to Croatian agriculture: only PRODUCER of the investment cost Up to 18,000 EUR for each new employee barley from Croatian fields is being used for Karlovačko beer, while Karlovačko Natur Radler mandarina is made out of Croatian mandarins, from Neretva valley. return through Up to 0.5 million EUR cash grant for investment in development and innovation activities various incentives EU funds available Guarantee scheme, up to 80% of investments, provided by Croatian Agency for SMEs, Innovations and Investments (HAMAG – BICRO) KIM MLJEKARA KarloVac Ltd. Business loans programs, provided by Croatian Agency for SMEs, Innovations KIM Mljekara Karlovac Ltd, a part of the Lactalis Group, produces UHT milk and cream in and Investments (HAMAG – BICRO), with interest rates starting from 0.5% HDPE bottles, as well as UHT milk in Tetra Pak package, with 80 million kilograms produced Subsidized business loans programs; loan repayment up to 17 years, annually. After a significant (20 million EUR) investment in 2010, KIM Dairy Karlovac has become the provided by Croatian Bank for Reconstruction and Development (HBOR) most modern production plant of the Croatian and regional dairy industry. The plant uses a state of the art line to produce HDPE bottles for UHT milk, and a line for processing and filling DAIRY PRODUCTS UHT milk into bottles, unique to Croatia and this part of Europe. ADDITIONAL INCENTIVES IN KarloVac COUNTY ŽITOPROIZVOD Plc. Relief in the form of reduction/exemption of payment of municipal contributions in most business zones in the County.
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