SARIO Slovak Investment and Trade Development Agency

Automotive Sector in Automotive Overview of the Automotive Sector in Slovakia Industry In Slovakia

The automotive industry has a strong tradition in Slovakia This publication is designed to introduce and became the most important sector and driving force of Slovakia's dynamically growing automotive the Slovak economy. Over the past 20 years it has been an sector — facts and figures, sector strenghts important source of foreign direct investment. Top Reasons and vision — to illustrate why Slovakia is to Invest in Automotive an ideal location for doing business Industry in Slovakia in this industry. 80,000 People employed directly by the 3 1 80,000 producers — VW, PSA, Kia & Tier 1 Highest labour productivity in the CEE region suppliers General Information 2 Total area: 49,035 km2

Population: 5.4 million Cost-effective & skilled labour force Capital city: 200,000 2015 3 Currency: Euro Helsinki St. Petersburg 200,000 People employed directly & indirectly Member of: European Union, Political & economic stability Eurozone, Schengen Area, Stockholm by the automotive industry OECD, WTO, NATO 4 Time zone: GMT +1 hour Strategic location in Europe with great export potential Edinburgh Copenhagen Moscow 43% Share of the automotive industry 5 Gdansk 43%

Hamburg of the country's total industrial Wide supplier network in automotive sector Dublin

Amsterdam production Berlin 6 Warsaw London Growing R&D centers & innovation network Prague Kiev

Paris 35% 7 Vienna Munich 1800 km 1200 km 600 km 100 km 35% Share of the automotive industry of Numerous technical schools Bratislava & implementation of dual education Budapest the total industrial export of Slovakia Zagreb scheme

Belgrade Bucharest 8

Marseilles Euro currency as one of a few in CEE Sofia Rome 17 BN €

Istanbul 9 Madrid 17 BN € Volume of industrial export generated Ankara by the automotive industry Fastest growing Eurozone Lisbon member within the last 10 years Athens

Tunis 10 2.5 BN € Attractive investment incentives 300 milion 600 milion for automotive industry clients in radius clients in radius 2.5 bn € Added value in the automotive of 1000 km of 2000 km industry 11 Cairo

Source: Statistical Office of the SR, Automotive Industry Association of the Slovak Republic (ZAP SR), Top Trend Top Republic (ZAP SR), Source: Statistical Office of the SR, Automotive Industry Association Slovak Well-developed infrastructure

1 www.sario.sk 2 www.sario.sk Growing Car Production Automotive Producers in Slovakia

Volkswagen Slovakia The only plant in the world producing The Slovak automotive industry 6 brands under one roof experienced significant growth since 1992, Year of Establishment: 1991 Production (2014): 394,474 vehicles which became even more rapid after the Sales (2014): € 6.17 bn turn of the millennium. Number of employees: 9,900 5 fold increase Models: VW Touareg, Audi Q7, VW Up!, Škoda Citigo, SEAT Mii, Porsche Cayenne, of car production body in white for Bentley Bentayga Nowadays Slovakia belongs to the 20 in last 10 years Annouced expansion: construction The Slovak biggest car producers in the World and of new SUV bodyshop (1 bn € investment) automotive sector produces more than Italy and Poland gradually grew to combined. It is expected to hit the annual a global scale benchmark of 1 mil. cars produced KIA Motors Slovakia by the end of 2015.

Kia's first and only factory Year of Establishment: 2004 in Europe Production (2015): 338,000 vehicles, Car Production in Slovakia 582 000 engines Sales (2014): € 4.59 bn

Car Number of employees: 3,800 2020 f 1 350 000 manufacturer Models: Kia cee’d, Kia cee’d_Sportswagon, in Slovakia with Kia pro_cee’d, Kia Sportage, Kia Venga. 2015 E 1 040 025 its own engine production Annouced expansion: extension of production capacities 2014 971 160 (140 mil. € investment)

2013 987 718

2012 926 555

2011 639 763 PSA Peugeot Citroën Slovakia 2010 561 933 The most profitable plant in 2009 463 140 the PSA group Year of Establishment: 2003 2008 575 776 Production (2015): 303,025 vehicles 2007 571 071 Sales (2014): € 2.08 bn Number of employees: 3,500 2006 295 380 Models: Peugeot 208, Citroën C3 Picasso. 2005 218 349 Source: Automotive Industry Association of the Slovak Republic (ZAP SR), SARIO Annouced expansion: start of new Citroen 249 model production in 2017

178 Jaguar Land Rover

Car Production Largest investment in per 1000 Inhabitants Europe in the last 7 years Year of establishment: 2015 118 Start of operation: 2018 Taking into consideration the Production capacity: 300,000 81 number of inhabitants, Slovakia is by Estimated number of employees: 2,800 69 far the global leader in car production 65 57 Models: Premium SUVs. per 1000 inhabitants. 42 40 Annouced investment: establishment 25 23 23 of the new manufacturing facility Source: SARIO calculations based on data (1.5 bn € investment) by Organisation Internationale des Constructeurs d’Automobiles Source: Volkswagen Slovakia, Kia Motors Slovakia, PSA Peugeot Citroen Slovakia, Jaguar Land Rover. SK SK CZ KR DE JP SI BE ES CA UK FR All images used are for illustrative purposes only. forecast 2020

3 www.sario.sk 4 www.sario.sk Automotive Suppliers in Slovakia Volkswagen Martin (gearboxes component Not only the three established production) automotive producers make the Kia Slovakia core of the Slovak automotive industry Žilina but also a well developed and high–quality Stará Ľubovňa Bardejov supplier network. Tier–1–2 suppliers also export Čadca their products to plants located around Europe and to other overseas locations. Kežmarok Humenné Snina Žilina Dolný Kubin Prešov Bytča Spišská Nová Poprad Ves Liptovský Považská Ružomberok Mikuláš Púchov Bystrica Martin Michalovce Košice Dubnica PSA Peugeot n. Váhom Volkswagen Citroen Brezno Trebišov Stupava (tool shop) Trnava Rožňava Banská Prievidza BystricA Trenčín Revúca Skalica Nové Mesto n. Váhom Bánovce n. Bebravou

Zvolen Partizánske

Senica Žiar n. Hronom

Piešťany Topoľčany Rimavská Volkswagen Sobota Košice Zlaté Moravce Lučenec Volkswagen (vehicles customization Hlohovec Bratislava Trnava for Russian market) 300+ and Malacky Veľký Krtíš Stupava Sereď Nitra Levice still growing Pezinok Galanta Tier 1 Supplier Tier 2 Supplier Senec Šaľa Bratislava

Nové Zámky 300+ Automotive Suppliers More than 300 suppliers operate in Slovakia and based on

Dunajská past experience with the arrival of previous OEMs, it is expected Streda that the investment of Jaguar Land Rover will considerably expand

Komárno the automotive suppliers network, also to the central and eastern part of the country.

Jaguar Land Rover Nitra

Source: SARIO, Online Matchmaking Fair for Automotive Slovakia, GLOBAL Slovakia, 2015

5 www.sario.sk 6 www.sario.sk Overview of major Tier 1–2 Suppliers in the Cabrio Systems Webasto Donghee, Matador, Webasto SAFETY EQUIPMENT Slovak Automotive Industry Edscha Cabrio, INALFA Roof systems, Garay, Belt & Buckle, IEE Sensing INTEVA Products

Antennas Modul Rear End Interior Modules, Dashboards Calearo Mobis Daejung, Faurecia, Eurostyle Systems, Reydel Automotive, Textile, Covers, Leather Seats Fuel Tanks & Systems Hanil E-Hwa, IAC Group, KOAM, LPH Vranov, Synothec, Lear Eissmann Automotive, ADTOOL, Johnson Controls, Plastic Omnium Auto Inergy, Corporation, SAS Automotive, Grupo Antolin, Treves, Eissmann, HOWE, IAC Group, Jobelsa, Heiland Sinoc Faurecia, Donghee, Martinrea, Nobel Z Industries, CRW Slovakia, Bourbon Automotive plastics, Automotive, Automotive group SK, Lear Corporation, Automotive, Coavis, Oerlikon, Magna Interiors, Magneti Marelli, Mobis Slovakia Treves, Trim Leader Hyundam

Wiring Harnesses & Electronic Components Body and Body Stampings Delphi Slovensko, Leoni, SE Bordnetze, Calearo, Yazaki, ArcelorMittal Gonvarri SSC, COMAX TT, Kromberg & Schubert, JOHRAmont, Yura Corporation, Mirrors Autotest Bratislava, Benteler, Matador, PRETTL, Konfektion E, CRT Electronic, DongYang E&P, Magna Švec a Spol, Donghee, TOWER PANASONIC Industrial devices, Molex, Mkem, SIIX EMS, Automotive, Bekaert, DURA Automotive, Služba Nitra, MTA, CEMM THOME Sungwoo Hitech, Farguell

Steering Wheels Exhaust Systems ADTOOL, TRW Automotive TAJCO, SEJONG, Faurecia, Matador Automotive, Liaz

Air-Conditioning Plastic Components Hanon Systems Slovakia, DELPHI Slovensko POLYTEC, Fremach Slovakia, HTP, THERMOPLASTIK, Nobel Automotive, Bourbon Automotive, Rehau, RF, K-plast, MTA, Steep Plast, Z Industries, Polytec Composites Modul Front End HBPO, Mobis, Faurecia

Brakes, Brake Systems, Dampers Fragokov , Continental Automotive Systems, Europalt, FTE Shock Absorbers Automotive, HUHN PressTech, Nobel Automotive, Ti-Hanil, Plastic Omnium, Mobis, TI Automotive, Mobis, Akebono Brake Rehau, Matador

Door Systems & Modules Engine, Engine Parts & Components Brose, PHA Slovakia, Dura Automotive, Bourbon Automotive Mobis, Pankl, Miba Sinter, Nemak, Getrag Ford Plastics, Pyeong Hwa Automotive, Slovakian Door Comnapy, Transmissions, MAR SK, Hriňovské strojárne, ZF, U – Shin, Dongwon, Faurecia, Grupo Antolin Honeywell Turbo, CCN Group Slovakia, Magneti Marelli, EUROPALT, Miba Steeltec, ZWL Slovakia, HUHN PressTech, Plastic Omnium, Suspensions Driveline, Mechanical Operations Nissens, Mahle Behr, GeWiS, Panasonic-Sanyo Donghee, Iljin Küster, GAMMA, Kongsberg Automotive, Bauer Gear Motor

Springs C.E.P. Scherdel, PFS, Subtil Slovakia Tyres, Balance Weights Seals and Silentblocs & other Rubber Components Continental Matador Rubber, Continental ALDOBEC, CIKAUTXO, COBA Automotive, DONGIL RUBBER BELT, Elastomer Matador Truck Tires, Rotobalance, Bekaert Solutions, Eldisy, MIKON, Rubena, Vegum, SaarGummi, Contitech, Boge Elastmetall Bearings Exterior Lights KINEX, Omnia KLF, GGB, DANEX, OSRAM, SEC, CEMM THOME, HELLA Front Lighting, INA Kysuce / Skalica, MAHLE, ZVL Auto HELLA Signal Lighting, Služba Nitra, ZKW, Hella Innenleuchten

Source: Automotive Industry Association of the Slovak Republic (ZAP SR), SARIO

7 www.sario.sk 8 www.sario.sk 40 Largest Suppliers in the Automotive Sector

Country Sales Revenue NuMber of Country Sales Revenue NuMber of Company name Locality Company name Locality of Origin ths. EUR (2014) Employees (2014) of Origin ths. EUR (2014) Employees (2014)

Mobis Slovakia South Korea Gbeľany 1 135 821 1 703 Hanil E – HWA automotive Slovakia South Korea Dubnica n. Váhom 176 440 450

Continental Matador Rubber Germany Púchov 792 017 2 612 U-Shin Slovakia Japan Košice 174 476 1 813

Johnson Controls International USA Bratislava 633 341 3 150 Sejong Slovakia South Korea Lietavská Lúčka 168 421 165

Continental Matador Truck Tiers Germany Púchov 572 569 1 187 Plastic Omnium Auto Exteriors France Lozorno 161 814 640

Faurecia Slovakia France Bratislava 528 031 1 970 ZKW Slovakia Austria Krušovce 155 997 1 141

SAS Automotive Germany Bratislava 495 637 476 Leoni Slovakia Germany Trenčín 153 850 2 163

INA Skalica Germany Skalica 448 815 4 689 Lear Corporation Seating Slovakia USA Prešov 150 286 1 100

Kysucké Nové Bánovce INA Kysuce Germany 447 996 4 059 Hella Slovakia Signal-Lighting Germany 148 768 1 173 Mesto n. Bebravou

Yura Corporation Slovakia South Korea Lednické Rovne 275 147 2 505 Brose Bratislava Germany Lozorno 141 572 358

Bekaert Belgium Hlohovec 271 620 1 490 HBPO Slovakia Germany Lozorno 139 517 130

Johnson Controls Lučenec USA Lučenec 267 342 749 Donghee Slovakia South Korea Strečno 137 553 452

Nové Mesto Hanon Systems Slovakia South Korea Ilava 257 716 495 Magna Slovteca Canada 135 697 500 n. Váhom

Železiarne Podbrezová Slovakia Podbrezová 240 211 3 229 Osram Germany Nové Zámky 132 572 1 262

Continental Automotive Systems Germany Zvolen 228 519 904 Iljin Slovakia South Korea Pravenec 132 152 312 Slovakia

Inergy Automotive Systems Getrag Ford Transmissions Slovakia Canada Kechnec 221 400 950 France Lozorno 132 113 181 Slovakia

Nové Mesto Emerson USA 208 248 1 328 Matador Automotive Vráble Slovakia Vráble 131 262 685 n. Váhom

Hella Slovakia Front-Lighting Germany Kočovce 201 395 821 Tower Automotive USA Malacky 123 971 540

Inteva Products Slovakia Netherlands Lozorno 199 373 561 Magneti Marelli Slovakia Italy Kechnec 120 702 425

Nové Mesto Yazaki Wiring Technologies TRW Automotive Slovakia USA 197 166 400 Japan Michalovce 114 930 4 591 n. Váhom Slovakia

ArcelorMittal Gonvarri SSC Slovakia Luxembourg Senica 194 315 101 SE Bordnetze - Slovakia Japan Nitra 96 277 1 213

ZF Slovakia Germany Trnava 192 411 2 138 Boge Elastmetall Slovakia China Trnava 93 971 635

Sungwoo Hitech Slovakia South Korea Žilina 186 282 693 Trim Leader USA Košťany n. Turcom 91 546 1 263

Source: Trend Top 2015, Global Slovakia 2015, SARIO

9 www.sario.sk 10 www.sario.sk Qualified and Productive Technical Growing R&D & Innovation Labour Force Education in Slovakia Network Thanks to Slovak universities with a technical background companies can find many suitable engineers for R&D jobs. Due to high and steadily increasing productivity in the More and more subcontractors move their R&D divisions Slovak automotive sector, the production in this industry to Slovakia due to the growing potential of the Slovak is not categorized as low cost anymore. Nevertheless, market. Decision to relocate and establish R&D capacities it remains cost–competitive on the regional as well as the results not only in cost saving, but also contributes to European level. The Slovak labour force is known for its company's flexibility to become more responsive to clients' flexibility, excellent qualification and high productivity. needs. As well as they benefit from the available pool of AeroMobil 5 Technical Universities highly qualified engineers and experts. A unique prototype of a flying car is being developed Average Gross Monthly Salary 32 in Slovakia by AeroMobil R&D. Selected Positions in the Automotive Sector (supplier network) Technical faculties — Success Stories in Automotive R&D The Aeromobil R&D 42 453 was supported by the Slovak Students in technical fields government with state aid. 14 468 Graduates in technical fields State Vocational Training Institute Training State Vocational

Johnson Controls ZKW Slovakia

2015/2016, 2015/2016, Part of the global R&D Innovation of lighting network for seat systems systems

100+ Technical Vocational Secondary Institute of West Central East West Central East Schools Materials & Machine Mechanics 600 € 565 € 605 € 665 € 625 € 700 € 44 080 Students in technical fields Applied research institute within the Slovak Academy of Sciences. Production Operator/ Quality 10 455 Electronic Equipment Assembler Controller Graduates in technical fields Leoni Continental Automotive Development of car cable systems Development of brake calipers

725 € 675 € 700 € 900 € 875 € 900 €

Dual Education Lacquerer/Painter Welder/Metal cutter Comeback

Slovakia renews 800 € 740 € 775 € 1 200 € 1 125 € 1 200 € tradition of vocational training at employer’s workplace. — CEIT Production Supervisor Technician 54+ secondary vocational schools already esta blished cooperation with Focus on innovative solutions Bratislava region is excluded and employer's contributions (35.2%) is not included. 115 companies around Slovakia. Yanfeng INA Schaeffler and complex research projects in

Source: SARIO calculations based on data provided by Grafton Recruitment Slovakia s.r.o., 2015 Source: Institute of Education Information & Prognosis Slovakia for the Academic Year Engineering centre for interiors systems Development of rolling and ball bearings cooperation with industry.

11 www.sario.sk 12 www.sario.sk Investment Incentives SARIO Profile

The primary role of the investment Slovak Investment and Trade Development Agency (SARIO) is a governmental incentives is to motivate investors to investment and trade promotion agency of the Slovak Republic. The agency was place their new projects in regions with established in 2001 and it operates under the Ministry of Economy of the SR. higher unemployment. The positive impact of a new investment shall be proved by Investment Services jobs creation, improved chances for the Services for Potential Investors graduates to get a job, as well as by creation • Investment environment overview 439 of new entrepreneurial opportunities for • Assistance with investment projects implementation local companies. • Starting a business consultancy • Sector and regional analyses • Investment incentives consultancy • Site location and suitable real estate consultancy Number of SARIO Maximal Regional Intensities of Investment Aid in Slovakia Investment Projects from Services for Established Investors 2002 — 2015 • Identification of local suppliers, service providers sk no • Assistance with expansion preparation and execution ca sl bj ts sp ml km • Relocation assistance, work/stay permits by sb dk kk sv he • Support of innovation and R&D activities za le pu pp LM po vt pb mt rk • Social networking sn il so gl tn tr br ke mi bb ks pd rv tv ra sa bn Foreign Trade Services my nm Eligible Projects 150 zh dt se pe zv pn to pt The Act on Investment zc lc rs If you are looking for tt hc zm bs ma Aid divides the projects which may be ka pk nr supported into four categories: • Slovak supplier or subcontractor vk sc ga lv ba sa • Industry • Information about Slovak export/trade environment nz Number of SARIO • Technology Centers • Sourcing opportunities ds • Shared Services Centers • Forming a joint venture, production cooperation or other forms of partnership Investment Projects in kn 25% • Tourism with a Slovak partner 35% Automotive sector from 35% Services for Exporters 2002 — 2015 for SMEs plus 10 to 20% Bratislava region is excluded • Information on foreign territories Eligible Costs • Customized search for foreign partners • Costs of land acquisition • On-line database of business opportunities Industry • Costs of buildings acquisition and • Export Training Centre Our Award • Minimum investment amount/share of new technology: construction • Subcontracting assistance 10 mil. EUR, 5 mil EUR, 3 mil. EUR, 0.2 mil. EUR (SMEs 5 mil. EUR, • Costs of new technological equipment 2.5 mil. EUR, 1.5 mil EUR, 0.1 mil. EUR)/60%/50%/40%/30% and machinery acquisition • Minimum 40/10 newly created jobs • Intangible long-term assets — licences, Innovation Support • Expansion includes minimum increase in the production volume patents, etc. • Support activities for development • Encouragement to foreign investors or turnover by at least 15% and popularization of Slovak innovations to bring investments with substantial 2014 Global Best to Invest 2013 and R&D environment R&D components to the SR Selection Site magazine • Establishment of relations with domestic • Ecosystem analysis of local investment Forms of Investment Incentives and foreign well–established innovative opportunities as well as domestic and Technology Centers • Contribution for the creation new jobs companies foreign investors in order to support • Minimum investment of 500 000 EUR on the fixed assets in all regions • Transfer of the state/municipality • Interconnection of Slovak R&D capacities acquisitions and joint ventures projects • At least 250 000 EUR must be covered by own equity property to the investor for the with industrial production and investors' • Specific information from the field, All our • The company must employ at least 70% of employees having discounted price needs in order to transfer leading in order to obtain capital and foreign Services are free university education • Cash grant innovative technology processes closer markets penetration • Minimum 30 newly created jobs • Tax relief to production praxis of charge

13 www.sario.sk 14 www.sario.sk Publisher Slovak Investment and Trade Development Agency Trnavská cesta 100 821 01 Bratislava T: +421 2 58 260 100 F: +421 2 58 260 109 [email protected] www.sario.sk

Graphic design Slovak Investment and Trade Development Agency Trnavská cesta 100 821 01 Bratislava T: +421 2 58 260 100 F: +421 2 58 260 109 [email protected] www.sario.sk

Author Slovak Investment and Trade Development Agency Trnavská cesta 100 821 01 Bratislava T: +421 2 58 260 100 F: +421 2 58 260 109 [email protected] www.sario.sk

Content Advisor

Automotive Industry Association of the Slovak Republic (ZAP SR) Secretariat Bojnická 3, 831 04 Bratislava T: + 421 2 4364 2235 – 6 [email protected] www.zapsr.sk

SARIO is your one stop shop for investment & trade in Slovakia. Talk to us today!

SARIO I Slovak Investment and Trade Development Agency Trnavská cesta 100 I 821 01 Bratislava I Slovakia gps +48° 9' 52.77", +17° 9' 20.27" [email protected] I [email protected] I www.sario.sk

Copyright © 2016 SARIO The information in this publication needs to be in every case double–checked to ensure that it is up to date. Photo sources: Volkswagen Slovakia, Kia Slovensko, Dreamstime.com, 123RF.com

ISBN 978–80–89786–30–5