Why Did We Invest in Serbia?

• RAS - www.ras.gov.rs/en

• VIP - www.vip.org.rs WHY DID WE INVEST • AmCham - www.amcham.rs IN SERBIA? • AHK – www.serbien.ahk.de - 10-year tax holiday for investments over 8.3 million euro, 100 new jobs • PKS – www.pks.rs

- Strong FDI record - 26 billion euro invested in Serbia since 2000 • NALED – www.naled-serbia.org

- Well developed network of local suppliers • Conﬁndustria - www.conﬁndustriaserbia.rs

- Skilled and competitive workers

- Ideal geographic location for just-in-time production

- Customs free access to a market of 800 million customers

Major international companies tell us why they are already here... FOLLOW THEIR SUCCESS. Printing of this publication is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this publication are the sole responsibility of Chemonics International and do not necessarily reﬂect the views of USAID or the United States Government. Contents:

Introduction...... 3

Metal and Electronics industry Ball Packaging...... 4 Bosch...... 6 Continental Contitech...... 8 Fiat Chrysler Automobiles (FCA)...... 10 Grundfos...... 12 Schneider Electric...... 14 Siemens...... 16 Agriculture / Food industry Pepsico / Marbo...... 18 Construction industry Tondach / Potisje Kanjiza...... 20 Information Technology (IT) Microsoft...... 22 Textile and leather industry Pompea...... 24

Infographic...... 26

Contact...... 27

[2] WELCOME TO SERBIA

Are you a firm seeking In addition to all above, the efficiencies and global market country has political stability, advantages for the products a society that aspires to you offer the world? In Serbia, continued growth and progress, they can help make it happen. and finally cities and towns where local administrations Since 2000, Serbia has understand inward investment attracted nearly 26 billion and know how to service its euro in inward foreign direct needs. investment. This success is Union and the United States for because this country offers Starting a business in Serbia most products and services. world-class intellectual capital, means the opportunity to technically skilled labor, and export to a market of one billion We invite you to consider Serbia’s customs-free access to 15% people. Serbia is a member of cities as potential investment of the global market. Serbia the Central European Free Trade locations. In the most recent has a deep industrial tradition, Agreement (CEFTA), which (2014-2015) FDI Intelligence a strategic transportation covers a free trade area of 29 survey, they have been ranked and technical infrastructure, million people. It has favorable among the top 10 European a private sector accustomed free trade agreements with a cities of the future, recognized to complement international number of countries, including for their cost effectiveness and business, rich natural resources, Turkey, EFTA members well developed FDI attraction ideal location, a growing (Norway, Switzerland, Iceland, strategies. Come and check for network of R&D institutes, and Liechtenstein), Belarus, yourselves! We have, and are and high quality secondary and and Kazakhstan. Investors into happy to have done so. Read tertiary education. Serbia would also enjoy duty- further to find out about our free exports to the European experiences…

[3] Metal and Electronics industry

BALL PACKAGING

n order to open up new markets, and Belgrade in Southeast Europe, location strategically position the company in for the new factory fully equipped Ball Packaging Europe is one of Southeast Europe, the management of with infrastructure, skilled workforce I the leading beverage can Ball Packaging Europe considered several and a package of incentives provided locations in the region, and decided to by the Government of the Republic of producers in Europe, locate its new investment in Belgrade, Serbia through the Serbia Investment headquartered in Zurich, Serbia. Some of the deciding factors for and Export Promotion Agency (SIEPA Switzerland. It is a subsidiary of investing in Serbia were: encouraging tax (now RAS)). After the administrative policy, strategic position of the city of procedures were completed in record Ball Corporation, an international producer of high-quality packaging based in Broomfield, Colorado, USA. The company’s European workforce includes over 3,000 employees and operates 13 beverage can production plants throughout Germany, France, the United Kingdom, the Netherlands, Poland and Serbia.

[4] WELCOME TO SERBIA

Mr. David Banjai Former Ball Packaging Europe Belgrade General Manager „BPE Belgrade employs local workforce in all segments of operation, not only in the production process. Our team has a high level of expertise, knowledge, and skills that allow constant progress and development of business through the exchange of best practices and experiences. We have created one of the world’s best teams in the industry; our employees now take on central functions, provide support to the head office, as well as to other factories in the group worldwide.”

time, buying land and preparatory work the region - Slovakia, Hungary, Romania, Investments and Trade in Southeast at the site finished, Ball Packaging Greece, Czech Republic, Croatia, Europe. Europe Belgrade (BPE Belgrade) started Slovenia, Bulgaria, Montenegro and construction of the factory in May 2004. Albania. The biggest buyers of tin cans BPE Belgrade annually invests around Just over a year later, the production at that are produced in Belgrade are large one million euros in improving the the newly opened factory began, in companies that produce beer, juices quality, efficiency and performance of June 2005. The total area of the entire and soft drinks, but also small and less production, as well as safety at work. complex of BPE Belgrade is about known brands in the Republic of Serbia The company applies the following 100,000 sqm. and the region. standards and systems: ISO 9001 - Quality Management, ISO 14001 - 190 Total investment in the new BPE Environmental Management, HACCP highly qualiﬁed people Belgrade factory is 65 million euros, food safety system, and OHSAS 18001 1.2 billion making it one of the largest realized health and safety system at work. aluminum cans a year investments in the Republic of Serbia. It is also known as one of the most BPE Belgrade cooperates with primary Today BPE Belgrade plant employs 190 successful greenfield investments schools in the Republic of Serbia to highly qualified people, who produce in Southeast Europe, receiving a educate children and young people and 1.2 billion aluminum cans a year, in prestigious regional award entitled raise awareness about environmental two production lines. BPE Belgrade is “International Investor of the Year protection, recycling, and other topics. considered one of the best plants within 2014”. The award was granted by the the Ball Packaging Europe group. More Organization for Economic Cooperation than 85% of the production volume is and Development (OECD) at its third exported to neighboring countries and annual Ministerial Conference on

[5] Metal and Electronics industry

he Bosch Group is an international Bosch has been operating in the leader in the field of research and Republic of Serbia since 1991. The The Bosch Group is a leading Tdevelopment with 4.5 billion euros Representative office in Serbia also global supplier of technology invested in R&D in 2013 and about covers the Republic of Montenegro and and services. It was founded in 5,000 registered patents, or an average FYR of Macedonia. In 2006, as a result Stuttgart, Germany, in 1886 as of 20 new patents every working day. of exceptional business development, a workshop for precision me- the Representative office grew to chanics and electronics. In 2013, the Bosch Group generated total revenue of over 46 billion euros and employs 281,000 associates. Company operations are divided into four business sec- tors: automotive technology, industrial technology, consumer goods, and energy and construction technology. It comprises of more than 360 subsidiaries and regional companies in some 50 countries. Together with its sales and service partners, Bosch is represented in 150 countries.

[6] WELCOME TO SERBIA

Jovanka Jovanovic General Manager of Robert Bosch d.o.o Srbija „The attractiveness of the location, logistics advantages, availability of skilled workforce, and a very good support of the Government of the Republic of Serbia and the local community are the main reasons why the Bosch Group decided to invest in the municipality of Pecinci and the Republic of Serbia”.

became a separate company. Robert range is primarily geared towards the Serbia as well, engaged in the trade of Bosch d.o.o Srbija deals with the trade European and then the world market. household appliances, with Bosch and of a wide range of Bosch products, Siemens as the dominant brands. Robert Bosch d.o.o Srbija employs 380 including spare parts for cars; diagnostic associates. An independent enterprise In order to ensure competent production tools and equipment, power tools, operates within the Bosch Group in staff, in cooperation with GIZ (German security systems, and products in the Agency for Technical Cooperation) field of thermodynamics. and the Secondary Technical School In 2009, Robert Bosch d.o.o Srbija in Pecinci, and with the support of the established a Center for providing a Ministry of Education and Science of wide range of services for the Bosch the Republic of Serbia, a project was Group worldwide. Around 80 staff, initiated to introduce educational primarily mechanical engineers, provide profile of an industrial mechanic into services such as data and product a school curriculum. During their management, engineering design education, in addition to theoretical components of braking systems, and knowledge, students will have the quality management. opportunity to gain practical technical knowledge using Bosch equipment Within the Robert Bosch d.o.o Srbija at school and during internship at company there is also a factory Bosch manufacturing facility. The best for the production of automotive students will be guaranteed a job after components, with 22,000 square graduation. meters of production capacity, which began operations in 2012. The product

[7] Metal and Electronics industry

n order to expand production capacity, After a thorough evaluation of the management of Continental-Cont- the locations, the management of Iitech decided in 2010 to open a new Continental-Contitech decided that the factory for the production of systems company will invest in the Republic of Continental AG, headquartered for engines and transmissions, as the ex- Serbia, specifically the city of Subotica, isting production capacities in Romania because of the proximity of the exist- in Hanover, Germany, is one of (Timisoara) and Hungary (Szeged) were ing factories in Romania and Hungary, the largest tire manufacturers not able to respond to customer require- the proximity of the European market, ments. Locations considered for a new as well as logistics and transportation and suppliers of automotive factory were in the region of the Baltic advantages. industry worldwide. The countries, Serbia, Ukraine, Moldova, Bul- The decision on investing was in par- company Conti-Tech AG, owned garia and the region of North Africa. ticular facilitated by the willingness of by Continental, develops The criteria that the company man- the Republic of Serbia, Vojvodina Prov- agement requested for the new fac- ince, and the city of Subotica to provide and manufactures parts, tory location were: good regional and maximum support to the entire project. components, and systems for logistics connections, the existence The support to the realization of this in- of infrastructure, political stability in vestment was given by the Government automotive and other industries. the country where the project is lo- of Serbia through SIEPA (now RAS), by Continental AG employs over cated, the availability of skilled labor, the Government of Vojvodina Province the willingness of the local communi- through the VIP Fund, and the city of 175,000 people in 49 countries. ty and the state to support the new Subotica, which approved additional in- plant and the possible incentives from centives for hiring workers. The chosen the local government and the state. location was quickly, fully equipped and

[8] WELCOME TO SERBIA

Matthias Schönberg Head of the ContiTech Fluid Technology Business Group „Subotica city offers excellent logistics support to our customers, and additional benefits are local labor market and the proximity of our companies in Szeged, Hungary and Timisoara, Romania.”

ready for use. This was facilitated by car manufacturers such as Mercedes, dition to the existing factory, and this rapid and effective procedures for issu- BMW, Audi, Renault, Volkswagen and space is used for the production of rub- ing building permits and site preparation others, with systems for engines ber hoses for the reduction of CO2. for the new factory in the industrial and gearboxes. The annual production zone Mali Bajmok, which operates in the is at more than 2 million units in 100 regime of a free zone. product groups and 1,000 components, specifically - hoses and hose lines for In February 2011, the city of Subot- cooling and lubrication of automotive ica signed a Memorandum of Under- transmissions and turbo systems, which standing with the German investor are exported 100%. Continental-Contitech, and already in Jan- uary 2012 the construction of a factory Management of Continental-Contitech started in the industrial zone Mali Bajmok. is pleased with the fact that all the The factory started production after agreed time frames and financial Mr. Zivko Topalovic, CEO record time of 10 months (January- aspects were respected. The negoti- „The existing infrastructure, October 2012), with the first deliveries of ations began in 2011, while opera- speed of issuance of building tions commenced as early as October car parts for Audi in Gyor (Hungary) and permits, administrative pro- Porsche in Leipzig (Germany). the following year. The factory investment totaled around 15 million euros. cedures and existing transport The factory ContiTech Fluid Srbija Expansion of the production is already corridors and logistics, provide d.o.o currently employs more than 500 agreed, specifically the construction of solid and stable business envi- workers from the territory of the Republic another production plant, and addition- of Serbia. The factory in Subotica ronment, similar to the busi- al workers will be employed. Currently ness environment in the EU.” today regularly supplies European 1,500 square meters are leased in ad-

[9] Metal and Electronics industry

iat Chrysler Automobiles (FCA), the seventh-largest automaker in the Wherever the Group is present it is focused on sustainability, to the Fworld, designs, engineers, manufac- priority areas such as reductions in the environmental impact of our tures and sells passenger cars, light com- products and manufacturing processes, professional development of mercial vehicles, components and pro- employees and promotion of their individual well-being together with a duction systems worldwide. The Group’s culture of health and safety, research and solutions to enhance safety automotive brands are: Abarth, Alfa for all road users, improvements in the customer experience, efforts to Romeo, Chysler, Dodge, Fiat, Fiat Profes- sional, Jeep, Lancia, Ram, SRT, Ferrari and promote a culture of responsibility throughout the supply chain and Maserati, in addition to Mopar, the parts support of local communities. That commitment to society, environment and service brand. The Group’s business- and corporate responsibility makes the group ranked among the global es also include Comau (production sys- leaders in sustainability. tems), Magneti Marelli (components) and Most recent proof of this broad commitment is the fact that FCA has Teksid (iron and castings). once again been included in the prestigious Dow Jones Sustainability The FCA Group is organized into four Index (DJSI) World. The Company received a score of 88/100 compared regions – NAFTA (U.S., Canada and Mexi- with an overall average of 60/100 for companies in the Automobiles co), LATAM (South and Central America), industry evaluated by RobecoSAM, the specialist in sustainability APAC (Asia and Pacific countries) and investment. EMEA (Europe, Middle East and Africa). The Group achieved the highest score in its industry sector for With the goal to access new markets innovation management, climate change strategy, occupational health and to expand the production capacity, and safety, labor practices, human rights and stakeholder engagement.

[10] WELCOME TO SERBIA

Mrs. Silvia Vernetti - Blina Director FCA Srbija d.o.o. „Seven years ago we have made the decision to come to Serbia after thorough market research. We saw Serbia as a country with good strategic position, adequate infrastructure and great human resource potential. Being at a unique position in the European market, Serbia offers diverse possibilities and, above all, high quality workmanship. The decision to come to Serbia proved to be a right one. For the past three years, since production started, we have recorded very good results and constant growth, primarily due to the efforts and hard work of our employees.” in 2008 FCA began to search for a 2012 and today it rep- location for its new factory in the East resents one of the most Europe region, finaly deciding to invest sophisticated production in the Republic of Serbia (Kragujevac). facilities within the FIAT Educated and qualified work force and Chrysler Automobiles industrial culture, previous successful Group worldwide. With cooperation between FIAT and Zastava over 3,000 employees, Automobile industry, as well as the FCA Serbia is a desirable location itself and state incentives employer, a socially re- offered to new investors by the sponsible company, active Government of Serbia, through SIEPA investor in Serbia and the (now RAS - Serbian Development Serbian leading exporter. Agency) were the main key factors for In Kragujevac-based plant, the selection of Republic of Serbia as percent stake. The company has estab- so far it has been invested over EUR 1.3 the new FCA industrial location. lished excellent cooperation with the bio, out of which EUR 850 mio for the local government in Kragujevac and the purchase of the latest state-of-the-art FCA Serbia d.o.o. Kragujevac, former Ministry of economy of the Serbian Gov- equipment. Fiat 500L range (Stand- FIAT Automobili Serbia, was founded ernment. The new FCA Serbia plant in ard, Living, Trekking) is being produced in 2008, as a partnership project of the Kragujevac was officially opened in April in Kragujevac-based plant. Model Fiat company Fiat Group Automobiles (FGA) 500L is commercially available on the with the Government of the Republic market since September 2012, and it of Serbia, where Fiat has a 67, and the >3000 is exported to European and NAFTA Republic of Serbia the remaining 33 FCA Serbia employees over 3000 people markets.

[11] Metal and Electronics industry

rundfos Group is represented workforce, benefits by the Government by more than 80 companies in of the Republic of Serbia for each new Grundfos was established in more than 55 countries. Grundfos job created, assistance provided by G 1945 in the small town of products are sold in many countries specialized agencies and institutions through local distributors. The company of the Government of the Republic of Bjerringbro in the Kingdom has approximately 19 000 employees Serbia, the Government of Vojvodina of Denmark. Grundfos is and 3 billion euros in annual sales, of Province (SIEPA (now RAS) and VIP), and represented in the market of which 5% is allocated for research and favourable free trade agreements, as development. well as positive business environment, pumps for 70 years; and with an developed infrastructure and regional annual production of 16 million As part of the Grundfos globalization position of the municipality of Indjija pump units makes Grundfos the strategy, being closer to the customers (close to the city of Belgrade and Novi in Eastern and South Eastern Europe, Sad, near the airport, investment location leading pump manufacturer of the management of the company fully equipped with infrastructure, and circulators. The company holds began with a search for a location of a effective local administration). new factory in the Balkans. Following 50% of the world market share a detailed assessment of all potential Initial preparations for the start of for these pumps. In addition locations, the management decided production in Serbia began in 2009, to pumps, Grundfos produces to invest in the Republic of Serbia, when the company Grundfos bought i.e. in the municipality of Indjija. Main 150,000 m² of land to build a production standard and submersible motors, argumentation for selecting Serbia plant in Indjija. The initial production as well as superior electronics for and the Municipalicy of Indjija, was the setup was established during 2010 in monitoring and control of pumps. existence of an educated and skilled rented facilities, and the first pump was

[12] WELCOME TO SERBIA

Jim Toft Nielsen General Manager of Grundfos Srbija d.o.o. “The key factors for the decision to invest and build Grundfos factory in Serbia were: The existence of an educated and skilled workforce, incentives to investors by the Government of the Republic of Serbia, favorable free trade agreements, as well as developed infrastructure and a good geographic position.”

produced in April 2011. In February 2012 the world market. It is a small circulatory It should be emphasized that Grundfos the construction of the new factory in pump for heating and water circulation. is very satisfied with local workforce Indjija began, and after only 10 month Almost 100% of the entire production (engineers, craftsmen and workers on construction period the team was able of Grundfos plant in Serbia is exported, machines in production), and mention to move into the newly build production of which 55% in the Russian Federation, training and seminars that the company facility, and the rest in Turkey, Hungary, Germa- regularly organizes and conducts in order ny, Great Britain, France and Denmark. to educate employees. Grundfos in Serbia now has about 366 employees, of which 350 workers at the Russian Federation factory in Indjija, and about 16 employees Turkey in sales and marketing throughout the Hungary Republic of Serbia. The factory in Indjija extends to 27,000 m², and this is only Germany the first phase of Grundfos plan for the Republic of Serbia. The total investment in the first phase currently amounts to Denmark 44% 33 million euro, and total sales of pumps in 2014 was about 92 million euros. As a strategic and long-term partner, France the company Grundfos is involved in Grundfos in Serbia currently produces many social and humanitarian activities three types of pumps, one of which is the Great Britain throughout the territory of the Republic most popular and best-selling Grundfos of Serbia. product which covers more than 50% of Grundfos Serbia exports

[13] Metal and Electronics industry

chneider Electric has been pres- Schneider Electric NS DMS produces ent in the market of the Repub- software that enables big savings in Slic of Serbia since 1997, and in power distribution and which is used Schneider Electric is an inter- 2002 it opened a representative office, today by almost all the countries in which now operates under the name the region, as well as cities such as national company specialized Schneider Electric Serbia d.o.o. As part Philadelphia, Vancouver, Toronto and in the field of energy manage- of the acquisition of the Spanish com- others. The American consulting company Telvent, in 2012 Schneider Elec- pany Gartner named the software as ment that offers energy efficient tric bought the Novi Sad based DMS the highest quality product in the world solutions to reduce electricity Group that was founded in 2000 by for several consecutive years in the a team of professors from the Facul- field of smart grid (smart grid use in the consumption, as well as technol- ty of Technical Sciences in Novi Sad. management of electrical distribution ogy and processes that enable Schneider Electric recognized that DMS systems). The great success was re- Group has a specific organization and peated in 2013, at smart grid technol- achieving the same productiv- great potential for further expansion ogy fair in San Diego (California, USA). ity or comfort with less energy. beyond national borders. Today, Schnei- der Electric DMS NS employs over 1,000 Schneider Electric supplies over 70 It currently employs 160,000 experts, 30 of them with PhDs. It has a million users through its network of people in over 100 countries and long-term cooperation with universi- 50 companies and more than 130 dis- has an annual turnover of 24 ties, power plants, manufacturers of IT patch centers worldwide. Licensed equipment and IT experts worldwide. In partners have a significant place in the billion euros. 2013 alone, the company’s export was company’s operations. This kind of part- worth around 25 million euros. nership is reflected in the transfer of

[14] WELCOME TO SERBIA

Dragoljub Damljanovic General Manager, Schneider Electric Srbija d.o.o: “Schneider Electric recognized knowledge, innovation and experience of young engineers in the Republic of Serbia and invested resources in the DMS from Novi Sad, which is now a global center of Schneider Electric research, development and production of software for optimal management of electricity distribution. Since we offer solutions for efficient energy management in different segments, from data center, across a variety of industries, buildings, DMS has complete offer in the segment of power distribution, and our efforts to become recognized as specialists in energy management has been given a new meaning.”

technology between Schneider Electric In Serbia, a network of over 20 official employs over development centers around the world distributors and system integrators has 1,000 and local companies that have the po- been developed. They have their own experts in Serbia tential (technology, development, sales) stock of goods, and also contracts with to assume a part of the responsibili- about 60 retail outlets throughout the 30 with PhDs ty for creating a product and product Republic of Serbia. The company pays placement. All equipment produced by special attention to strategic clients, In 2013, the company’s export licensed partners is subject to quality some of which are present in Serbia: was worth around control, and is in line with current inter- • Lafarge 25 million euros national standards. • Holcim Licensed partners of Schneider Electric in Serbia are: • Coca Cola • Nestle • Melpo - licensed partnership for Okken low-voltage switchboards • Veolia

• SNE Energy - licensed partnership for • Saint Gobain SM6 and RM6 medium voltage installa- • FIAT tions • Microsoft • Elnos BL - licensed partnership for • IBM compact TS Biosco CS / CM • Marriot

[15] Metal and Electronics industry

iemens is a global company with portance for the development of the 168 years long tradition behind economy of the country. Siemens AG was founded by Sits successful business. It is recog- Werner von Siemens and Johann Siemens d.o.o. Beograd was founded nized for technical improvements, inno- Georg Halske on 12 October vation, quality and reliability of products in 1996 with the aim to contribute 1847. Today, Siemens AG is a and services it offers in 190 countries. to faster recovery and development German multinational conglom- The company integrates all these qual- of the economy and infrastructure ities into its own solutions in the fields systems in Serbia and today employs erate company headquartered of energy, industry, transportation, about 1,200 people. The company in Munich. It is one of the larg- medicine, and infrastructure projects. employs some 1000 employees at the est engineering companies in Siemens today is a leader in the world factory in Subotica, which produces the world. The core businesses and assembles generators for wind- market with a recognizable brand. of the company lies in the areas power plants. Since its founding in Siemens has been present in Serbia 2003 with 12 employees, this factory of industry, energy, healthcare, since 1887 when it participated in had significant growth owning to and infrastructure. Siemens and a pioneering effort of electrification development of wind industry market its subsidiaries employ approx- of Serbia - construction of the first and management decisions. The imately 343,000 people world- public thermal power plant in Dorćol factory in Subotica was built in a fully wide, and have reported global (Belgrade), construction of the first equipped industrial zone Mali Bajmok, revenue of around €71.9 billion Serbian hydroelectric power plant on which operates in the regime of free in FY2014, according to their an- the river Djetinja in Uzice, and in many zone. Since its founding, the factory has other projects which are of historic im- produced more than 15,500 generators nual report.

[16] WELCOME TO SERBIA

Ivan Knezevic Deputy General Manager, Siemens d.o.o. Belgrade “Our company’s 128 years of successful business in Serbia is a true indicator of a long-term partnership between the Serbian economy and Siemens. Based on our experience of doing business in Serbia, the quality of local human resources is definitely a comparative advantage of this region. Additionally, the country has a significant industrial tradition, complemented by stimulating income taxes.”

for wind-power plants ranging from 1.5 to 6 MW. The generators manufactured in this factory are exported to Europe, but also to the American market, thus placing Siemens in the group of 10 largest exporters in Serbia. The fact that one in four wind generators in Europe has been produced in Subotica testifies to the successes of the factory.

Using a good geographic position of the Republic of Serbia, the regime of free zones and high-quality workforce, Siemens has so far invested 20 million euros in the factory in Subotica. Further 10 million euros are planned to be invested in the development of the factory.

[17] Agriculture / Food industry

arbo Product is one of the and Herzegovina, back in 2008, which leading snack producers in the than became part of the PepsiCo PepsiCo products are enjoyed by region of West Balkans. The Group. Marbo’s production facillities M consumers one billion times a company operates since November located in Maglic and Laktasi become 1995. when the first brand - Chipsy was part of PepsiCo’s network of 200 day in more than 200 countries launched. Bosnian counterpart Marbo plants around the world. and territories around the world. doo was founded in 2000. Production Today Marbo operates within PepsiCo PepsiCo’s product portfolio in- facilities are settled in Maglic, a village West Balkans business unit and cludes a wide range of enjoyable located in Backi Petrovac municipality, employs 1,200 people in Serbia and and in Laktasi, municipality in Bosnia foods and beverages, including Bosnia and Herzegovina, whose and Herzegovina, near Banja Luka. 22 brands that generate more experience and commitment are When the company was established making brands Chipsy, Clipsy, Pardon than $1 billion each in estimated there weren’t many relevant players and Gud a synonym of a quality snack. annual retail sales. in the chips market in Serbia. The At the heart of PepsiCo is Perfor- PepsiCo integrated regionally founders of Marbo recognized the successful brands into its brand family mance with Purpose – a goal to opportunity and seized this segment and Marbo got the strong support of deliver top-tier financial perfor- of the market with a good strategy the global partner and multinational and a quality product. They built up a mance while creating sustaina- company’s know-how. The first phase good local company that eventually ble growth in shareholder value. of integration was harmonization attracted attention of a global player with the PepsiCo standards and it For more information, visit www. in the snack market. PepsiCo acquired lasted until 2011. During this phase, pepsico.com. both companies, in Serbia and Bosnia business processes were intensively

[18] WELCOME TO SERBIA

Michail Orfanoudakis Commercial Director PepsiCo West Balkans „We consider Serbian market a challenging one, however with excellent potential. Despite challenges, Marbo had a series of successful activities shaped by our vision, commitment and international experience of the PepsiCo group.“

harmonized - manufacturing, logistics, modern factories of this type in the raw materials ensuring the usage of and commercial. This process was Western Balkans, in fact the whole the highest quality raw ingredients so crowned with a unified SAP software Europe, and thanks to the continuous that consumers get the highest quality for structured planning as well as improvement of standards, it is one chips and other products. Moreover, monitoring of key performance of the most representative examples Marbo is the largest industrial indicators. The integration made the of safety workplace. In 2014. Maglic purchaser of potatoes on the Serbian local company a part of the leading plant hosted an independent audit of market and every year purchases global food and beverage company the External Global Environmental and 32,000 to 35,000 tons of potatoes. which generated more than $66 billion Health & Safety Management System Marbo brands are beloved snack brands in net revenue in 2014, driven by a (GEHSMS). Final score ranked Maglic both in Serbia and the West Balkans complementary food and beverage factory on a first position in Europe region, where the company exports portfolio that includes Frito-Lay, and on the second position globally a third of local production. Marbo’s Gatorade, Pepsi-Cola, Quaker and among all PepsiCo factories that were brands Chipsy, Clipsy, Pardon and Gud Tropicana. subject to this audit, in the category of are enjoyed by consumers in regional Environmental and Health and Safety The factories in Maglic and Laktasi markets – Croatia, Slovenia, FYROM, measures and standards. are using modern technologies and Montenegro, Greece, Albania, Bulgaria implementing leading standards Marbo represents a synonym for and Romania. As a proof of quality, for safety and product security successful business in Serbia. The Marbo is also producing products for - FSSC 22000 and ISO 14001. company is recognized as an excellent markets in Western Europe, Belgium, Following the PepsiCo acquisition, partner both externally and internally. Holland and France. significant investment followed in a The proof of the latter is receiving a Best In the future Marbo Product plans manufacturing plant in Maglic, some Employer certification in very competitive, to ensure that it remains a great of which are purchase of a modern food industry, as well as an award for the company by staying true to its values – line of high capacity for production best partner in business. sustained growth through empowered of potato chips and construction of a Additionally, Marbo stimulates local people and acting with responsibility waste water treatment plant. Today, production and cooperates with more and trust. Marbo factory is one of the most than 10 local farms, from which it buys

[19] Construction industry

Clay blocks No. 1 worldwide Facing bricks No. 1 in Europe co-leader in the USA Clay roof tiles No. 1 in Europe Plastic pipes Leading position in Europe Ceramic pipes No. 1 in Europe Concrete pavers No. 1 in Central-East Europe

otisje Kanjiza factory was subsidiary of Wienerberger AG, the founded back in 1903 by a Kanjiza world’s largest producer of bricks. Plandowner, Herman Grunfeld. Its Founded in 1819 by an true recognition and rapid economic Potisje Kanjiza today employs 425 Austrian brick manufacturer, growth came in the postwar period, highly skilled workers and is the largest Wienerberger has developed after 1945. In October 2003, this manufacturer of roof tiles made of over the past three decades fired clay in this part of Europe. The successful company was taken over into an international building company owns a well examined site of by the Austrian group Tondach, which materials group that combines purchased shares on the Belgrade Stock raw materials sufficient for the next 40 clay building materials, pipes and Exchange in the amount of 30 million years, located in the immediate vicinity euros. After buying the factory, Tondach of the factory. Potisje Kanjiza annually pavers businesses. Wienerberger invested about 45 million euros in the produces about 70 million tiles of which has over 200 production sites in modernization, production automation, about 60% is exported to Romania, 30 countries, all over the Europe and capacity increase. Since 2013, Bulgaria, FYR Macedonia, Albania, and in the US. Tondach has been operating as a Montenegro, Bosnia and Herzegovina, Ukraine, and Russia. In 2013 alone, export to Russia for the construction of the Olympic Village in Sochi amounted 425 to 700,000 pieces of tile. Potisje Kanjiza highly qualiﬁed people is the only manufacturer that offers a 33 year guarantee for its products. 70 million tiles

The management of the company, 33 year guarantee for its products

[20] WELCOME TO SERBIA

Istvan Jenei General Manager of Potisje Kanjiza „Over 110 years of tradition with quality and educated workforce are the guarantee for good products and the key to successful business“.

in cooperation with the Ministry of roofers in secondary vocational schools throughout Serbia. Potisje Kanjiza Education and Science of the Republic in Knjazevac, Ada, and Subotica. The cooperates with a large number of small of Serbia, has initiated a pilot project management also cooperates with other and medium-sized enterprises engaged for the education and scholarships secondary and post-secondary schools as suppliers and subcontractors. for children to train for carpenters and for construction and architecture

Wienerberger-facts Divisions: Clay Building Materials Europe Pipes & Pavers Europe North America Holding & Others Production sites in the Austria, Switzerland, Czech Republic, Slovakia, Poland, following countries: Estonia, Finland, Hungary, Romania, Bulgaria, Russia, Italy, Croatia, Slovenia, Serbia, Germany, Denmark, Swe- den, Norway, Netherlands, Great Britain, Belgium, Mace- donia, France, India, Canada, USA, Greece, Turkey, Ireland Free float: 100% Revenues 2014: € 2,834.5 mill. Results 2014: operating EBITDA € 317.2 mill. operating EBIT € 100.2 mill. Employees 2014: 14,836

[21] Information Technology (IT)

s a leader in innovating the IT (MDCS). The site started its operation in sector, Microsoft’s goal in Serbia 2005 and now it is a premier employment Microsoft is the worldwide Ais to be a true partner of the destination for local engineering Serbian government by further investing talent. The center has made notable leader in software, services in the local IT industry, as well as contributions within respective divisions and solutions that help people helping increase awareness about the (STB, Office and Online Services and businesses realize their full importance of computer literacy and Division). Building on strong skills in core intellectual property rights. Microsoft sciences (Mathematics and Physics), potential. Microsoft is founded in started operating in Serbia in 2001, MDCS features exceptional number of 1975 by Bill Gates and Paul Allen. when representatives of the Serbian International Olympians in Informatics The company is headquartered government signed a strategic IT and Mathematics. Unique areas of collaboration agreement with Bill Gates, expertise are in applied mathematics in Redmond, Washington, USA. setting a cornerstone for long term (machine learning, statistics, data ascent of scientific and technological science) and distributed data processing. development in Serbia.During more than Due to its technical talent, the core a decade of existence, Microsoft Serbia strength of MDCS team is ability to has managed to achieve remarkable convert research ideas into core product results in the development of the contributions for all divisions present in domestic IT market. the center. Besides creating components for Microsoft software, The Microsoft Belgrade is the site for the first Microsoft Development Center in Serbia helped R&D operation in Southeastern Europe create key components for SQL, Office – Microsoft Development Center Serbia 2013, and has developed PDF Reflow,

[22] WELCOME TO SERBIA

Zeljko Vujinovic Microsoft General Manager for Serbia and for Montenegro „Microsoft is present on the Serbian market for 13 years; opened the Development Center 10 years ago. We are always used as an example to many other foreign companies and are excellent promoters of Serbia and their potential for foreign companies to start business on this market and do investments.“

which is part of the latest Office and used culture. our company donated free software by millions of people around the world. packages for 50 thousand computers to Furthermore, Microsoft also helped various academic institutions in Serbia Today, Microsoft’s Development Center launch a legalization campaign during and more than 1M$ worth software in Serbia employs 190 very promising which 30 thousand computers in the annually for the non-profit sector. and bright young people from Serbia, public administration were licensed, while which is a clear indicator of the development of our business here, as well as the Serbia’s overall IT potential. Also, Microsoft Development Center engages more than 25 interns from Serbian Universities every year. Since 2004, all Microsoft programs are available in Serbian, while key programs from the Office platform (Word, Excel, Power Point and Outlook) are available in both the Cyrillic and Latin scripts. In this way, Microsoft Serbia helped reach a better understanding of new technologies, while increasing user productivity in Serbia, and helping maintain cultural identity through respecting the local language and

[23] Textile and leather industry

famous Italian company for the Due to a very positive experience in production of underwear and the Republic of Serbia, and because Pompea S.p.A. was founded in socks, Pompea from Medole, of the free trade agreement that the A 1996 and it is a world excellence after a detailed market analysis and Republic of Serbia has signed with testing opportunities for investment the Russian Federation, the company company in the production and in the region of Southeast Europe Pompea in 2006 decided to expand sale of pantyhose, seamless and North Africa, decided to buy the its capacity. After considering several lingerie, sportswear, leisurewear knitwear factory Brusjanka from Brus locations throughout the Republic (southern Serbia). In 2004, it started of Serbia, the management of the and swimwear. It employs over the production of men, women and company Pompea decided to build its 1,500 workers worldwide. children’s underwear and men’s socks. new factory and set up a subsidiary Its headquarters is in the city Benefiting from a favorable business company Modital d.o.o. in the town environment in the Republic of of Zrenjanin, in the industrial zone of Medole, Italy. Pompea is Serbia, tax breaks, experienced and Bagljas. The willingness of municipal commercially present in more educated workforce and support of the leaders to provide maximum support than 60 countries worldwide. Government of the Republic of Serbia to the new investor, the organized local through the Serbia Investment and administration, the Industrial Zone with With 80 million euros turnover Export Promotion Agency (SIEPA (now complete infrastructure, the educated per year, Pompea is one of the RAS)), the company Pompea invested workforce and the support of the largest manufacturers of socks a total of 7 million euros in its factory institutions of the Government of the in Brus, employed 530 workers, and Republic of Serbia and the Government and underwear in the European exported the entire production to Italy. of Vojvodina Province (SIEPA (now market. RAS) and VIP), were the main reasons

[24] WELCOME TO SERBIA

Claudio Berardi Deputy Managing Director, Modital d.o.o. part of Pompea Group „Despite the global economic crisis and problems with liquidity of the domestic economy, the company Pompea is still investing in Serbia. Pompea decided to invest in the Republic of Serbia and to strategically position itself in this part of Europe, using all the benefits the country offers to domestic and foreign investors. It was the right choice ”.

for Pompea to decide to build a amounted to 12 million euros. The Serbia exported goods worth over 10 new production plant in Zrenjanin, factory currently employs 320 people, million euros. with 16,000 m2 of production and with annual production of 45 million warehouse space in 2007. The new pairs of women’s stockings and the Since the very beginning of operation of factory was built in less than a year, as entire production is exported to Italy the factory in Zrenjanin, Serbia Modital one of the first greenfield investments and the Russian Federation. company has been working closely with in Serbia. The total investment local suppliers and subcontractors in During 2014, the company Modital the Republic of Serbia.

[25] EUROPE

Belgrade

Capital City Tax and customs Distance from Belgrade to: Budapest 384km Belgrade free industrial zone Vienna 612km Pirot, Subotica, Zrenjanin, Novi Sad, Bucharest 641km Currency Kragujevac, Sabac, Uzice, Smederevo, Soﬁa 756km Krusevac, Svijalnac, Apatin, Vranje Prague 907km Serbian Dinar (RSD) Munich 930km Water transport Warsaw 1,067km Zurich 1,175km • Ports on the Danube: Language - Apatin Berlin 1,255km Serbian - Backa Palanka Frankfurt 1,282km - Novi Sad Rome 1,289km - Pancevo Istanbul 1,356km Airports - Belgrade • Ports on the Sava: Amsterdam 1,722km Nikola Tesla - Belgrade - Smederevo - Sabac London 2,042km [26Constantine] The Great - Nis - Prahovo - Belgrade Moscow 2,235km Contact

Development Agency of Serbia (RAS) www.ras.gov.rs [email protected]

Belgrade, February 2016 [27] • RAS - www.ras.gov.rs/en

- Strong FDI record - 26 billion euro invested in Serbia since 2000 • NALED – www.naled-serbia.org

- Well developed network of local suppliers • Conﬁndustria - www.conﬁndustriaserbia.rs

- Skilled and competitive workers

- Ideal geographic location for just-in-time production

- Customs free access to a market of 800 million customers