Invest in www.investinvoru.com Võru County Contents

Foreword 3

Estonia is a country of modern solutions 4 Liberal enterprise policy promoting investments 5 Võru County – connecting 3 countries 6 Qualified workforce 8 Support services for investors 10

Wood and furniture industry 12 Food industry 14 Metal and machinery industry 16 Logistic possibilities 18 Plastics industry 20 Light industry 22

Invest in Võru County 23 Võrusoo industrial area 24 industrial area 26 Väimela industrial area 28 Kobela industrial area 30 Vastseliina industrial area 32 Rõuge industrial area 34

Võru County – a place for living and resting 36

This document has been produced with the financial assistance of the – Latvia – Russia Cross Border Cooperation Programme within the European Neighbourhood and Partnership Instrument of 2007 – 2013. The contents of this document are the sole responsibility of Võru Maavalitsus and can under no circumstances be regarded as reflecting the position of the Programme, countries participating in the Programme, or the European Union.

part-nanced by the European Union The Estonia – Latvia – Russia Cross Border Cooperation Programme within the European Neighbourhood and Partnership Instrument of 2007- 2013 financially supports joint cross-border development activities for the improvement of the region’s competitiveness by utilising its potential and beneficial location on the crossroads between the EU and Russian Federation.

The Programme’s web-site is www.estlatrus.eu. The project is titled “Fostering Socio-economic Development and Encouraging Business in Border Areas” The project partner and beneficiary is Võru Maavalitsus Contact person: Mihkel Värton Phone: +372 502 5936 E-mail: [email protected] Compiler/designer: (Why OÜ) Foreword

www.koda.ee/en

stonia is a small and flexible country. Our County. Estonia could become a country that E business environment is often set as an is open to foreign investors, so the latter would example, and our entrepreneurs are doing well in be able to operate well and not be restricted by exporting. During the last decade the latter have their location in a certain municipality or county. learned how to manage business both during There are great many diligent and ambitious times of rapid economic growth and during a entrepreneurs in Võru County, who have done recession. and will do a lot for this area. This should As a company manager, I see that our business encourage new entrepreneurs to take an interest environment could become even more open, in the area because the conditions for successful friendly and stable than it already is. I meet a development are already provided. number of entrepreneurs and foreign investors daily. There is a great interest in Estonia, but we I encourage investors to discover Võru County have to make an effort to get actual progress. and wish a thriving growth of prosperity to all Nothing just happens. We have to make our current and future entrepreneurs! environment even more attractive to foreign investors, we have to invest into the training of qualified workforce, and there are a lot of other areas to be improved as well. And certainly, we have to talk about ourselves and our activities with a positive undertone as we really do have a lot to offer. A country is as strong as its smallest and most distant corner. It is important that the investments that are made are contributed equally between different parts of the country. What matters is that the development would be balanced Mait Palts throughout Estonia, and it would be a great place Director General of the Estonian Chamber of to live, work and be an entrepreneur, both in Commerce and Industry the capital city and in the deep woods of Võru

3 RubriikEesti

Estonia is a country of modern solutions

Estonia

Area: 45 227 km2 Population: 1.3 million Currency: Euro Languages: Estonian. Russian, English and Finnish are commonly spoken.

Great economic freedom

The Heritage Foundation and the Wall Street stonia is trusted by many international Journal rank Estonia the 11th in their economic E organisations – both the NATO Cyber freedom index, leaving countries like USA, Great Britain and Finland behind. Defence Centre and the European Union’s IT Agency are located here. Estonia is a part of the European Union, OECD, NATO and the ID Schengen Area. E-Estonia

There is a unique ID-card system used in Estonia is one of the leading countries in IT. Estonia, allowing access to various internet Skype, GrabCAD and several other innovative based services such as: ▪ (Business related e-solutions originated here. Ericson, a leading E-Business register information centre) communication devices company that has ettevotjaportaal.rik.ee over 1300 employees; Scandinavian banks; ▪ E-Tax Board/e-customs international logistic companies such as www.emta.ee Kühne + Nagel, and many other top level ▪ Patient portal (medical data) www.digilugu.ee companies operate in Estonia.

Communicating with state institutions or banks is € conducted mainly via internet, and Estonians are Online banking

used to a rapid pace of life that is supported by 99% of all bank transactions in Estonia are made smart devices. Starting a new company via the via internet banking. internet takes just 15 minutes.

4 Liberal enterprise policy promoting investments

Characteristics of Estonia:

▪ Economic liberty ▪ Easy to start a business ▪ Well educated workforce or years Estonia has been practising ▪ Part of the Eurozone ▪ Low national debt liberal economic policy that values private F ▪ Low index of corruption property and treats all entrepreneurs on an ▪ Clear tax system equal level. The objective of the state is to foster ▪ Entrepreneurship-friendly 3rd sector entrepreneurship and creation of employment, and to raise the competitiveness of the businesses. and for the European Union member states that are situated in the west, it is a bridge to The “Estonian Entrepreneurship Strategy Northwest Russia. 2014-2020” states its objective as developing Estonia to become the centre for start-up Entrepreneur favouring tax companies that originate from the Baltic States, system Scandinavia and Northwest Russia, and to be the most suitable location in Europe for the All companies in Estonia are taxed equally and development centres of large corporations. In the on the same terms. Estonia’s trump is the tax framework of this strategy, the state has been exemptions for profit that is reinvested to the focusing on integration into the international company. business environment, export, and enhancing the competitiveness of companies and transit. The state taxes are income tax, social security The last mentioned point means that Estonia is a tax, land tax, customs, excise duties and heavy transit corridor to the Central European markets, goods vehicle tax.

5 Võru County

Võru County – connecting 3 countries

Finland

Helsinki St. Petersburg Russia

Tallinn

Tartu

Võru

Riga Latvia Moscow

Lithuania Belarus

õru County is situated in the southeast of Estonia and is bordered in the south by the V Võru Republic of Latvia and in the east by the District Võru County Võru County of Pskov of the Russian Federation. It is therefore Area: 2305 km² the perfect location for international business. Largest town: Võru Population: 35 652 Due to the geographic location, the local people have centuries of experience in doing business with both of their neighbours. That knowledge and those skills are also useful nowadays. It is a strategically versatile location as the with important centres, both in Estonia and in the longest highway in Estonia, a highway that territories of the bordering neighbours. connects Luhamaa border crossing point with The GoSwift info system makes cargo delivery to (the capital of Estonia), passes through other countries easy and comfortable. A program Võru County; as well as the international that was created in Estonia helps to avoid transport corridors Via Estica, -Pskov obstructive traffic jams on highways, minimizing highway and Riga-St. Petersburg railroad. time expenditure, and has won several awards. airport is also located just 63km away from Võru. Today, the system is already in use in other All those possibilities ensure a fast connection countries including Russia, Finland and Lithuania.

6 Municipalities favouring entrepreneurship

The county government and the local municipalities favouring entrepreneurship and new investments, provide comprehensive support. Suitable manufacturing and commercial premises can be found in Võru, the county centre, as well as nearby. Additional options are provided by the already existing industrial areas, as well as those that are still being set up, whereby investors can have a say.

The advantages of the area

Võru County’s advantages include great scientific and developmental potential, accessibility to qualified workforce and existing industrial areas.

The strengths of Võru County

▪ High level of know-how and qualified workforce.

▪ Võru County Vocational Training Centre.

▪ Vicinity of Estonia’s oldest and largest educational institution – .

▪ Woodwork and furniture manufacturing competence centre.

▪ International highways (EE77/E263) and the railway.

▪ Presence of state institutions and availability of public services in the area.

▪ Safe area which is close to natural living environment.

▪ Rich cultural heritage and strong local identity.

“Our location makes us the gate between Eastern and Western Europe.”

Andres Kõiv Võru County Governor

7 Võru County

Qualified workforce

rofessions, including such areas P as technology, tourism, catering, accommodation, commerce and business, are taught at Võru County Vocational Training Centre at an excellent level. The training centre also offers continuous training and retraining that contributes to the ability of its students to adapt to the labour market requirements. The environment at school is modern and there is a lot of cooperation between the school and local businesses, to ensure an up-to-date and practical education for the students. A good example of this is the woodwork and furniture manufacturing competence centre that is located in Võru County Vocational Training Centre.

The requisite workforce and cooperation possibilities are fostered by the fact that the oldest and largest educational institution in Estonia, the University of Tartu (www.ut.ee) (established in 1632) and the Estonian University of Life Sciences (www.emu.ee), are located just 71km away from Võru. The Estonian University of Life Sciences focuses mainly on the areas of agriculture and rural economy.

8 A good experience

In 2012 a mainly German based energy company, Danpower, expanded their operations into Estonia. The company supplies their customers with heating, electricity and conditioning and their customer base includes both industrial and residential areas. The company has nearly 400 employees and the turnover of the year 2013 reached 155 million euros. Danpower Eesti AS mainly focuses on supplying the city of Võru with environmentally Võru County as an appreciated friendly district heating. work environment Near the end of the year 2013 Danpower Eesti AS opened a call centre that serves clients, Commuting is very common in Estonia and mainly living in Germany, by phone, e-mail, fax people are willing to work far away from home. and post. The biggest centre in Võru County is the city of The most excellent technical solutions industry Võru where 4800 people are employed. 39% of and motivating salaries attract employees from them, that is 1875 people, commute from different all over Estonia. Highly appreciated professionals municipalities. are settling down in Võru County and committing to the region.

Internet access is widely available in Estonia, and www.danpower.ee this supports the possibility of telecommuting. For example, Danpower Eesti AS call centre in Võru operates based on the principle of telecommuting. 949 € According to the report prepared by Statistics 740 € Estonia in 2013 the average gross salary in Võru County is lower than the Estonian average. The average This means that it is easier to find the desired gross salary workforce in Võru County for a company which in 2013 Estonia Võru County offers a competitive salary.

9 Võru County

Support services for investors

he municipalities of Võru County are T interested in investments and creating new jobs, and are preparing industrial areas to welcome new businesses into the county. More detailed information can be found at the portal www.investinvoru.com and all your questions will be answered by an investments project manager at [email protected]. On the homepage, or using the contacts given there, you will find support, information and instructions on the following topics: 1. Setting up a business and procurement of the required permits; 2. Offers for consultations including business planning and financial consulting; 3. Organisation of accounting; 4. Legal advice and training.

The Development Centre of Võru County (www.vaa.ee), a partner of Enterprise Estonia (EAS, www.eas.ee), is ready to give advice on how to start a business in Võru County.

EAS : ▪ Offers possibilities and solutions, on a national level, for starting a business and helping it to grow; ▪ Provides information, advice and a business Contact us: [email protected] mentoring program; More information: www.investinvoru.com ▪ Enables you to apply for various grants.

10 An innovation from the competence centre

To foster the development of companies which process wood and manufacture furniture, the Woodwork and Furniture Manufacturing Competence Centre (PMKK) has been established in Võru County Vocational Training Centre. The centre enables research, testing new products, finding partners and experts.

PMKK links the public spheres with companies which process wood and produce furniture, with educational and research institutes and enterprises from other spheres. This constructs a network that consolidates the best knowledge and skills in materials technology, production management and product development.

The main thrust in the development of wood processing and furniture production is the finishing of wooden products with modern and sustainable agents (water-based finishes, oils, and waxes).

The main thrust of product development and production efficiency is to provide support to the businesses for their development and better management.

PMKK offers the following support to enterprises:

▪ Product development programs, from preparations up to prototype production; ▪ Advice on marketing and support on The Southwest Estonia implementing the marketing plan; Wood Cluster ▪ Advice on developing the brand; ▪ Advice on production management and The Southwest Estonia Wood Cluster connects elaboration of action plans for increasing businesses which process wood or manufacture efficiency. furniture in the southwest of Estonia. The purpose of the cluster is to cooperate on product More information can be found on the PMKK development and export. homepage: pmkk.vkhk.ee

More information: www.puiduklaster.ee

11 Industries Rubriik

Wood and furniture industry

n Estonia, a total of 48% of land is covered by There is qualified workforce for the wood and I forests. According to Statistics Estonia, in 2011 furniture industry on-site. Most enterprises with the total felling was 8,153,000 m³, however the the greatest impact on the development of the optimal amount is 12-15 million cubic meters per region are operating in the latter industry (AS year. Therefore it is a business sphere with great Toftan, AS -Inno, AS Barrus, AS Wermo, potential. and Anro PT OÜ).

The forest and wood industry has always been important for Võru County, considering the availability of local raw material. The forests in Võru County are ample and that business field offers many possibilities for success.

A total of 47% of Võru County is covered by forests. The most common types of trees are pine, spruce and birch. According to the Estonian Environment Agency 480,472 m³ of wood was cut Forestry in Võru County, 2003-2013 in Võru County in 2012. Source: Statistics Estonia

12 An outstanding example of the sector: Toftan

The second biggest sawmills in Estonia and the third biggest in the Baltic States belong to a Swedish owned company. They produce, for example, both pine and spruce lumber from which earthquake proof houses in Japan; houses, scaffolding and furniture in North-Africa; building constructions in Europe; window scantlings and door components; and glulam beams for buildings and bridges manufactured in Estonia, are made.

AS Toftan was founded in 1995, a year when a second hand piece of sawmilling equipment was brought from Toftan village in Middle Sweden to Sõmerpalu parish in South-Estonia and was set up into an old potato storage facility. As a result of investments and years of work the sawmill, initially producing 35,000m³ lumber in Sweden, has become a strong player in the sawmill industry. In 2012 the production output of lumber reached up to 200,000m³. The customers of AS Toftan are wood processing industries in Estonia and in 24 other countries all around the world.

There are 125 people employed and the turnover of 2013 was 42.5m euros, with a profit of 5.8m euros. A total of 53% of the sales came from export.

Contact: [email protected], +372 782 7800, www.toftan.ee

Other successful businesses: AS Barrus

Contact: [email protected], +372 785 0700, www.barrus.ee Business area: laminated wood material production for door and window manufacturers. Employees: 185 Turnover/profit (2012): €20.5m/€1.9m Export markets: Netherlands, United Kingdom, France, Japan, Norway, Sweden, Finland, Denmark, Germany and Poland.

AS Wermo

Contact: [email protected], +372 786 8115, www.wermo.ee Business area: manufacturing furniture. The main production is veneered, laminated and compressed (MDF) panelled materials. The solid wood materials used in production are birch, oak and pine. Employees: 61 Turnover/profit (2013): €2m/€0.11m Export markets: Sweden, Finland, Latvia, Lithuania and England.

Anro PT OÜ

Contact: [email protected] , +372 786 4758, www.anro.ee Business area: the production of birch and oak wood details for the upholstery industry. Employees: 30 Turnover/profit (2012): €1.29m/€0.07m Export markets: Finland, Lithuania and Latvia.

RMK Antsla-Inno AS The State Forest Management Centre Contact: [email protected], (www.rmk.ee) manages the state forests and www.pohjanmaankaluste.com takes care of the growth, use and protection of Business area: the production of upholstered furniture. this important resource. The profit made by the Employees: 204 State Forest Management Centre goes to the state Turnover/profit (2013): €13.56m/€0.17m Export markets: Latvia, Lithuania, Finland, Slovakia and Bulgaria. treasury.

13 Industries

Food industry

he food industry in Estonia is an important T branch of the processing industry and in comparison with the other sub-branches it is the most stable one. In 2012, 36% of the production was exported and its share of the industrial production was 11%.

The companies operating in Võru County offer meat, dairy and bakery products. The beverage industry and cultivation of fruits, berries and vegetables are also playing an important role.

Cristella and Valio Eesti AS provide over 300 jobs in the county and their turnover which totalled up to nearly 100 million euros in 2012 illustrates the suitability of Võru County in terms of food production.

mill € 1400

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0 2008 2009 2010 2011 2012 2013

Sales Export

Sales and export of the food industry Source: Statistics Estonia

14 An outstanding example of the sector: Cristella VT OÜ

Cristella VT OÜ is the largest producer of frozen bakery products in the Baltic States, as well as the biggest provider of jobs in Võru. Therefore, Võru can be considered the bakery capital of Estonia and the whole Baltics.

The key to success is constant development. The first line for frozen bakery products was installed at the factory in autumn 2004, and the sales of frozen bakery products to Latvia, Lithuania, Poland and Finland began. In addition, a modern line for making frozen buns was installed in December 2010.

Constant development and a future-oriented mind-set means that the company is always open for new ideas, and implements these into production based on the taste preferences of the Nordic people. The fast-growing number of consumers of Cristella products is a real proof of it.

There are about 200 people working for Cristella VT OÜ and in 2013 5,805,780 kg of bakery products were produced. The turnover of Cristella VT OÜ was 15.3m euros.

Contact: [email protected], +372 786 6800, www.cristella.ee

Other successful businesses: Valio Eesti AS

Contact: [email protected] , +372 628 5700, www.valio.ee Business area: the production of dairy products. Employees: 350 Turnover/Profit (2013): €76.48m/€1.95m Export markets: USA, Germany, Belgium and Denmark.

Arke Lihatööstus AS

Contact: [email protected] , +372 787 0514, www.karni.ee Business area: the production of pork and beef products, and catering. Employees: 110 The production volumes of the Turnover/Profit (2013): €8.7m/€0.5m food industry Export markets: Finland and Switzerland.

In 2013 the acreage in Võru county was 30,506 hectares in total, which produced 49,556 tons of AS Linda Nektar grain, 14,154 tons of potatoes, 5,519 tons of rape Contact: [email protected] , +372 785 5768, www.lindanakter.ee seeds and 4,705 tons of open-field vegetables in Business area: the production of unpacked apple and pear wine, and total. The meat production totalled up to 1,112 tons cider for beverage industries. and milk production totalled 25,633 tons. Employees: 13 Turnover/Profit (2013): €3.66m/€0.82m Export markets: Latvia, Lithuania, Finland and Denmark.

Our own trademark Taarapõllu Talu OÜ Since 2010 it has been possible to apply for the (Edgar Kolts FIE) UMA MEKK local trademark for food products Contact: info@taarapõllu.ee , +372 5919 0227, www.taarapõllu.ee that have been cultivated or produced in Võru Business area: cultivation and processing of organic fruits, berries County. There are training programs and fairs and vegetables. Employees: 6 organised and trade shows being visited, under Turnover (2012): €0.44m the sponsorship of the trademark. So far the UMA Export markets: Finland, Denmark, Latvia, Russia, Belgium and MEKK trademark has been attributed to more than Sweden. 70 products. http://voruleader.ee/uma-mekk

15 Industries

Metal and machinery industry

or years now, the metal industry has held a The machine industry is also on the rise as in F leading role in the economies of Estonia and 2013 its sales volume exceeded the frontier of Võru County. In the whole country there are more 300 million euros. The main contributing factors than one thousand businesses operating in that are the external markets and export. According field, and over 11,000 people are working in the to the estimates of the Estonian Ministry of industry. Economic Affairs and Communication and the Estonian Ministry of Finance, the sales to the According to the Estonian Ministry of Economic domestic market will increase. Affairs and Communication, a continuing growth of workloads in the metal industry is predicted. There are about 150 small and medium The main contributing factor in that is export. machinery and equipment producers in Estonia In 2012 a total of 55% of metal products were and the machine industry is present in almost exported, and the main exort products were metal every part of the country. constructions. Lifting and transferring apparatus exported to mill € various European (including Scandinavian), 1200 American and Asian countries, staff and repair 1000 vehicles for European racing teams, are produced 800

600 in Võru County.

400

200 The biggest companies representing the metal 0 industry are AS Rauameister, AS Lapi MT, AS VG 2008 2009 2010 2011 2012 2013 Holding, and AS Võru Hallid. Sales Export

Sales and export of metal industry Source: Statistics Estonia

16 An outstanding example of the sector: Rauameister

Rauameister, owned by the Finnish investors, has been operating since 1996. The fast growing metal processing company’s manufacturing capacities have grown constantly, and at the moment they have a manufacturing range that includes welding, metal sand- blasting, colouring, and assembling units.

The company has many foreign partners from different locations and its main products are wood waste, peat and lime conveyor chains for wood processing and energy companies.

The products are of good quality and are also valued outside Estonia. The company also co-operates with big manufacturers of conveyor chains like Raumaster Oy, Foster Wheeler Co., and Andritz Oy.

AS Rauameister has been exporting its production to various European, American and Asian countries. Its turnover in 2012 was 7.2 million euros and the profit was 0.84 million euros. Almost 100 people are employed by AS Rauameister.

Contact: [email protected], +372 782 6716, www.rauameister.ee

Other successful businesses: AS Lapi MT

Contact: [email protected], +372 786 8640, www.lapimetall.ee Business area: the production of metal products, equipment and constructions. Employees: 50 Turnover/Profit (2013): €1.55m/€0.08m Export markets: Finland and Sweden.

VG Holding AS

Contact: [email protected], +372 782 0626, www.vg.ee Business area: electroplating of metal surfaces (zinc-plating, anodizing, electro polishing and black oxidizing) Employees: 12 Turnover/Profit (2013): €0.37m/€0.09m Export markets: Latvia and Russia.

AS Võru Hallid

Contact: [email protected] , +372 783 0720, http://hallid.ee Business area: the production and installation of steel modules and constructions; and sale of steel profiles. Employees: 20 Turnover/Profit (2013): €0.67m/€0.03m

17 Industries

Logistics options

stonia has all prerequisites to be the logistic Maritime transport; 1911 Rail transport; 43680 E centre of Northern Europe, being surrounded by a market of 300 million people. By using the local logistics companies, distribution centres, industrial parks and infrastructure it is possible to get from Estonia to all consumers within just 48 hours.

Võru County is therefore located at the most Road transport; 33131 favourable place for international logistics Estonian transport enterprises freight transport statistics (2013), one thousand tons. business. Source: Statistics Estonia

Tallinn-Tartu-Luhamaa highway and the international transport corridors - Via Estica, the immediate vicinity of the border and providing Riga-Pskov highway and Riga-St. Petersburg services directly connected to border crossing. railway - are Estonia’s main channels of transportation and logistics. There is also the All this creates a strong basis for the develop- Estonian-Russian border crossing point at ment of transport and logistics. No cargo will ever Luhamaa and Tartu Airport is located nearby. get stuck in Võru County!

At the moment there are two service providers Fast transport of goods in Võru County is ensured (Collade OÜ and Association of Estonian by OÜ Plangi Trans, OÜ Võru Trans and Haugas International Road Carriers) operating in the Transport OÜ.

18 An outstanding example of the sector: OÜ Plangi Trans

The freight forwarding and transportation company OÜ Plangi Trans was established in 1997. Its main activities are domestic and international transportation services, and conducting international transport to almost all European countries. In addition, OÜ Plangi Trans provides truck and car purchase, sale, repair and maintenance services.

OÜ Plangi Trans provides employment for 65 people, and the company owns 70 trucks.

The company has been a member of the Association of Estonian International Road Carriers since the year 2000 and, as of the year 2003 has held a TIR authorization.

The turnover of OÜ Plangi Trans in 2013 was 2.95m euros.

Contact: [email protected], +372 786 8693, www.plangitrans.ee

Other successful businesses: OÜ Võru Trans

Contact: [email protected], +372 782 8277, www.vorutrans.ee Business area: international freight. Employees: 91 Turnover (2013): €4.15m Export markets: Germany, Finland, Austria and Russia.

Haugas Transport OÜ

Contact: [email protected], +372 504 1035, www.haugastransport.ee Business area: international freight. Employees: 32 Turnover/Profit (2013): €1.96m/€0.06m Export markets: Finland, Latvia, Lithuania, Poland, Austria and Hungary.

The Estonian Logistics Cluster

The Estonian Logistics Cluster is a joint initiative (founded by the Logistics and Transit Association) which is dedicated to the international marketing of members services, the introduction of the logistic advantages of Estonia to target markets, product development involving free resources, logistics-related educational issues and cooperation in the IT field.

www.transit.ee

19 Industries

Plastics industry

n today’s economic system, the plastics mill € I industry has an increasing role to play. During 350 300 the last decade the industry, including in Estonia, 250 has gone through a rapid development in terms 200 of technology and marketing, and as a result the 150 100 services provided here are the best in the Baltic 50 States. 0 2008 2009 2010 2011 2012 2013

All the main plastic processing techniques such Sales Export as injection moulding, film and profile extrusions, Sales and export of the plastic industry pneumatic moulding, rotational moulding, vacuum Source: Statistics Estonia forming, machining, moulding foam products and reinforced plastic products are represented in Estonia. The production capabilities of Võru County are, The Estonian rubber and plastics industry for example, used for Bombardier snowmobiles consists of nearly 200, mainly small and medium and the train seats of the Finnish state railway sized, companies. The most successful of these trains. The elastomer plough blades that are the ones that stay flexible, using modern are produced in Võru County are helping to technology and valuing external marketing. The keep roads in Estonia, Scandinavia and other future of the industry is very closely connected European countries clean from snow during to exports and at the present day most of the wintertime; and the plastic windows produced are production is exported too. According to Statistics sold successfully in the European markets. Estonia, the export of plastic and plastic products has shown a rapid growth in a period of four The largest companies in Võru County, years – from 226.8 million in 2010 to 307 million representing the plastics industry, are Estelaxe in 2013. OÜ, Polüpakend OÜ and Rehpol AS.

20 An outstanding example of the sector: Estelaxe OÜ

The company was established in 2008 and is based entirely on private capital. This relatively new company grew out from a recognized metal processing company, Lapi MT.

Estelaxe OÜ started out as a producer of upholstery, but nowadays they produce different plastic products including ABS, polyurethane products and performing HDPE vacuum forming. Besides elastomer they also use flexible polyurethane foam and plastic that is used to produce snowplough blades, head and backrests, seats for trains and snowmobiles, pillows and matrasses.

The products are used, for example, by the Estonian army and the Finnish state railways.

There are 35 people employed by Estelaxe and 95% of its production is exported to Finland. In 2013 the turnover of the company was 2.3 million euros, and the profit was 0.1 million euros.

Contacts: [email protected], +372 505 2877, www.estelaxe.ee

Other successful businesses: Polüpakend OÜ

Contact: [email protected], +372 785 5211, www.polypakend.ee Business area: the production of packaging of different purposes and constructions. Employees: 13 Turnover/Profit (2013): €1.08m/€0.08m Export markets: Latvia, Lithuania and Finland.

RehPol AS

Contact: [email protected], +372 600 3737, www.rehpol.ee Business area: the production of PVC profile plastic windows and doors; and the production of wooden and wood-aluminium windows. Employees: 30 Turnover/Profit (2012): €1.9m/€0.2m Export markets: Sweden, Finland, Norway, Belgium, Switzerland, Germany and Russia.

The Estonian Plastics Association (EPA)

is the Estonian plastics industry’s leading trade association and a springboard for industry action that connects the companies operating in the plastics industry and represents their interests both in Estonia and in the rest of the world. The main objectives of the organisation are the following: ▪ Developing common co-operation projects; • Common market research; • Research of products and materials; • Organising occupational training programs; • Fair participations and study visits abroad.

More information: www.plast.ee

21 Industries

Light industry

lothing and footwear production has an C important role in the Estonian light industry. According to Statistics Estonia the latter products and produced textiles formed a total of 8.1% of the share in the retail market.

More than 400 companies in Estonia are producing clothing, and the sector offers employment for about 6000 people. The main export markets for the Estonian clothing manufacturers are Finland, Sweden, Latvia, Norway and Germany, and in 2013 the outbound freight volumes were over 100 million euros.

Many businesses in Võru County produce An outstanding example of footwear and clothing. Their experience, constant the sector: product development and ability to keep up with modern technologies ensure that they are OÜ Abris significant partners for organisations both in The history of Võru footwear factory goes back to the beginning of the previous century, when a tannery was established in the Estonia and abroad. city. The factory has been called AS Abris since 1993, and it has been engaged in footwear manufacturing since 1960.

Products made by OÜ Abris are available in the The company is constantly improving to meet the needs of Baltic, Scandinavian and other markets. Ritico, the actual users and work environments; the result is durable, comfortable and high quality footwear. which operates in Võru County, has become one of the largest insole manufacturers in Eastern Quality natural genuine leather, certified safety elements, and modern comfortable materials are used. A wide range of Europe. working and safety footwear is offered. There are over 100 articles from slippers to boots, and many of them are CE Having more than 20 years of experience, marked safety footwear and are certified in the Finnish Institute of Occupational Health. Nancotex Eesti OÜ produces clothes for both In addition, Abris exports footwear to the Scandinavian market, children and adults and exports its production meaning that shoes bought in Finland might have been born in to Scandinavia. The success of OÜ Hamery is a Võru factory.

affirmed by their cooperation with such well- Contact: [email protected], +372 782 4040, www.abris.ee known brands as Seppäla, Lindex and Halens.

22 Industrial areas

Invest in Võru County

he industrial areas of Võru County are Concerning the development of the industrial T welcoming both international and domestic areas, a target for 100 new enterprises and up to businesses. In the interests of developing the six 1000 new jobs has been set. The development industrial areas, the following groundwork has and marketing of the industrial areas is been done: managed in unity and in close co-operation with ▪ Feasibility and cost-effectiveness analysis municipalities. and marketing plans; • Detailed plans.

Positioning of the industrial areas

Võrusoo Misso Väimela Kobela Vastseliina Rõuge

Wood industry P P P P Metal industry P P P Construction material industry P P Food industry P P P P Electronics industry P Textile industry P Logistics P Agriculture P P P Transport P P Machinery industry P

23 Industrial areas

Expand your business in Võrusoo industrial area

Võru Võrusoo

The location of the industrial area in Võru County

Other companies in Võru City

Total number of companies: 900 Areas of operation: wholesale and retail, construction, metal industry, agriculture, forestry, õrusoo is located in the largest town, Võru, food industry, plastics industry, logistics, furniture industry and many more. V and is part of a well-functioning industrial area where several large companies, such as Võrusoo´s advantages Wermo, a furniture producer, and Valio, a food ▪ Availability of good workforce producer, operate. All important factories in ▪ Good condition of the communication networks the town are nearby and the industrial area is ▪ Well-developed utility services developing rapidly. The development is enabled ▪ Heat pipeline project and proximity of the boiler plant by good workforce and suitable infrastructure ▪ Good location in the centre which are available for those starting a business. ▪ Municipality favouring business activities

First and foremost, Võrusoo industrial area welcomes enterprises operating in the food, “Võrusoo industrial area is located in a self- electronics, and textile industries. established industrial site, and the companies operating there can make use of the infrastructure of the biggest town in the region, The total size of the industrial area is 39.4 ha and qualified workforce, and the determined people.” there are 32 plots with a total area of 220,360 m². The sizes of plots vary, starting from 4,000 m² Mayor of Võru, Anti Allas, 2014 and reaching up to 20,000 m².

24 VÕRUSOO

According to the established plan the neighbouring Detailed plans and construction permits plots could be connected with each other.

25 Industrial areas

Expand your business in Misso industrial area

Võru

Misso

The location of the industrial area in Võru County

isso industrial area is located in Misso M Parish, in the southwest corner of Võru County, directly next to the border of the Russian federation, close to the crossing of two major transportation corridors – Riga-Pskov-St.Peter- sburg and Tallinn-Pskov-Moscow. Other companies in

Total number of companies: 65 The advantage of Misso industrial area and Areas of operation: agriculture, forestry, the reason why the region is very attractive for construction, food industry, furniture industry and logistics companies, is the proximity of Luhamaa service. border crossing point. Misso´s advantages

The size of the industrial area that will be set up ▪ Economically and geographically attractive location in the immediate proximity of a major in the first phase of the development is 28 ha and transport corridor and the Schengen border; it will have 19 plots with a total area of • Municipality favouring business activities. 212,250 m². The sizes of the plots vary from 5,000 m² up to 19,000 m². “For centuries, trade routes have passed right through Misso. This is the place where different cultures and traditions, that have given great “The location and planning of Luhamaa logistic centre experience for trading, cooperation and mutual is well elaborated.“ understanding, interlace.”

Illimar Paul, development manager of the Estonian Head of Misso Parish, Lembit Sikk, 2014 Logistics Cluster

26 MISSO

Riia-Pihkva mnt

According to the established plan the neighbouring Detailed plans and construction permits plots could be connected with each other.

27 Industrial areas

Expand your business in Väimela industrial area

Väimela Võru

The location of the industrial area in Võru County

äimela industrial area that is located in the V immediate proximity of Võru is especially welcoming companies operating in the wood, metal, construction material and machinery Other companies in Võru Parish industries. Total number of companies: 1180 Areas of operation: wholesale and retail, The technology laboratory of Võru County construction, metal industry, agriculture, forestry, Vocational Training Centre, where students food industry, plastics industry, logistics, furniture acquire practical skills in mechatronics, industry and many more. In addition, the area is in immediate proximity to information technology, cleaning services, as well AS Rauameister, a company that produces metal as processing wood and metal, is located nearby. constructions. Koido Tootmine OÜ, a company The technology laboratory is regularly used for that produces concrete and concrete details, is teaching. The Estonian Ministry of Education and located approximately a kilometre away. Research is planning a further expansion of the Väimela’s advantages vocational training centre into the immediately nearby plots. ▪ Good substrate for construction ▪ Good condition of the communication networks and development possibilities The total size of Väimela industrial area is ▪ Proximity and availability of the workforce 27.5 ha and it is situated on a flat land which is ▪ The capacity (1MW) of the Koolmeisteri perfect for improvement. The area is founded on (10/0m4kV) substation ▪ Proximity of an artesian well (debit 4.2l/s) a territory that once was a farm. There are 19 plots with a total area of 191,564 m². The sizes of the plots vary from 5,000 m² up to 28,000 m². “There are over one thousand enterprises in Võru Parish which could be useful for your The industrial area is bordered in the west by business. The local partners and international plans will make your investment grow.” Võru-Põlva highway which has excellent surfacing and is wide enough for the transportation of Head of Võru Parish, Georg Ruuda, 2014 industrial products.

28 VÄIMELA

According to the established plan the neighbouring Detailed plans and construction permits plots could be connected with each other.

29 Industrial areas

Expand your business in Kobela industrial area

Kobela Võru

The location of the industrial area in Võru County

obela industrial area is located in Antsla Other companies in K Parish, 38 km away from the county centre. Number of companies: 280 AS Antsla-Inno which produces furniture, OÜ Areas of operation: agriculture, forestry, Sän & Män which offers transportation services, wholesale and retail, construction, and transportation. and AS Linda Nektar which produces fermented beverages, are all located nearby. Kobela’s advantages

▪ Proximity of Linda substation (110/10kV) The total size of Kobela industrial area is ▪ Operating businesses in the immediate 7 ha. It is located on a flat and clear area by proximity Valga highway. ▪ Relatively low necessity for investments ▪ Municipality favouring business activities

Kobela industrial area is welcoming companies

operating in the wood, food, transportation and “The largest university in Estonia is located agriculture industries. The area qualifies well for 80km away and Võru County Vocational Training small businesses. Centre is 35km away from Antsla Parish. Implement this potential into your company’s development.” Kobela industrial area has 7 plots with a total size

of 50,460 m². The sizes of the plots vary from Head of Antsla Parish: Merike Prätz, 2014 5,000 m² up to 10,000 m².

30 KOBELA

According to the established plan the neighbouring Detailed plans and construction permits plots could be connected with each other.

31 Industrial areas

Expand your business in Vastseliina industrial area

Võru

Vastseliina

The location of the industrial area in Võru County

Other companies in the region

Number of companies: 155 Areas of operation: agriculture, forestry, fishery, astseliina industrial area is located in electricity services, construction, metal and V Vastseliina Parish, next to Võru-Luhamaa furniture industry. highway, approximately 23 km away from Võru. Vastseliina’s advantages AS Förmann, which operates in the wood ▪ Proximity of Vastseliina substation (35/10kV) industry and logistics, is located in the immediate ▪ Operating businesses proximity. ▪ A tradition as an industrial area ▪ Municipality favouring business activities. The total size of Vastseliina industrial area is 15 ha and it is welcoming companies operating in the wood, metal, food or construction material “You will find outstanding opportunities to develop business considering the wood or metal industry, or in the field of agriculture. industry. Succeed in Vastseliina!”

There are 9 plots with a total area of 78,571 m². Head of Vastseliina Parish, Raul Tohv, 2014 Plot sizes vary from 6,000 m² up to 12,000 m².

32 VASTSELIINA

According to the established plan the neighbouring Detailed plans and construction permits plots could be connected with each other.

33 Industrial areas

Expand your business in Rõuge industrial area

Võru

Rõuge

The location of the industrial area in Võru County

õuge industrial area is located in the village R of Rõuge which is situated in the heart of Võru County. The district is located about 15 km south of Võru and is the crossing point of all six of the county’s asphalt coated highways.

The total size of Rõuge industrial area is 4 ha and the companies operating in the wood, metal or food industry, or in the field of agriculture are Other companies in the region especially welcomed. Qualified workforce can be Number of companies: 180 incorporated from Võru and Võru Parish. Areas of operation: agriculture, forestry, fishery, construction and production of briquette. There are two large companies nearby – Trendwood OÜ, which manufactures lumber and Rõuge’s advantages

Võru Sako OP, which is a bakery. One of Rõuge’s ▪ Boiler house and a planned heat pipeline strengths is its municipality, where the plans ▪ New wastewater treatment plant and reconstructed piping are big and actions are wise. For example, an ▪ Municipality favouring business activities. enterprise hotel which offers suitable premises for businesses that need operational space, will

be opened. “Rõuge is situated in the most beautiful place in Estonia. We have created opportunities for There are 6 plots planned on Rõuge industrial starting small and medium size companies. Trehvämi Rõugõn!” (See you in Rõuge – in the area and the total area is approximately Võru dialect) 27,244 m². Plot sizes vary from 3,000 m² up to

6,000 m² and qualify well for businesses with Head of Rõuge Parish, Tiit Toots, 2014 small capacities.

34 RÕUGE

According to the established plan the neighbouring Detailed plans and construction permits plots could be connected with each other.

35 Võru County

Võru County – a place for living and resting

s an addition to the business opportunities, ensures a smooth way home, and a versatile A Võru County attracts with its people and selection of recreation provides them with stuns with its nature. The extraordinary nature extracurricular activities. involves rolling hills, forests, quiet lakes and clean bogs. The highest point in the Baltic States, Active lifestyle is highly respected in Võru County. Great Egg Hill, as well as Haanja Nature Park, Fitness centres that take care of one’s body and Paganamaa Landscape Reserve and Karula mind are equipped with track and field arenas, Nature Park are situated here. ball courts and stadiums. The ski runs, roller and jogging tracks, tennis, volleyball, biking and To characterize the locals, the words kind, helpful basketball courts and skate parks are all inviting. and friendly are best suited. The local people are open and talkative and they stick together. The most important sports events of South- Estonia, both national and regional, are held in While visiting Võru County you will surely gain a Võru County. unique experience.

Good schools and sports facilities The biggest indoors motocross hall in Europe: Võru County offers a comfortable and safe www.adrenalinarena.com living environment for the whole family. There Sports facilities: are enough kindergarten places and schools www.spordikool.voru.ee for children. A good transportation connection

36 Photo: Grete Rõõm Tasty food

The traditional food of Võru County has its own taste or “uma mekk” as it is said in Võru dialect. The cuisine of Võru County includes smoked meat prepared in a smoke sauna, golden- yellow sõir or home-made cottage cheese, bread, barley-bread, home-made root beer, and refreshingly sour birch juice. Home-grown food and home cooked meals are highly valued in Võru County

The smoke sauna that cleanses body and mind

The smoke sauna tradition of Vana-Võromaa was entered to the UNESCO World Heritage List in 2014.

In the smoke sauna, both body and mind are cleansed, and there are distinctive and rich traditions and rituals, which in addition to the actual visiting of the sauna, also include the heating of the sauna and making and use of sauna whisks; one of the rituals is the jumping into cold water or even into snow.

It is an experience that is hard to put into words and needs to be experienced by oneself.

Celebrations and fairs

Gatherings and fairs are a part of life in Võru County. Wherever there are a large number of people together, there will also be a musician playing music. Then somebody starts singing and the party has started. The bigger fairs bring merchants and visitors from nearby and far away. The summer is full of several crowded cultural festivals, concerts and Võru county has its own dialect that is an sports events. It is never dull! important part of the local culture and the nature Võru County has its own dialect that is an of the area. At the same time one can easily important part of the local culture, as is the nature cope by speaking English or Russian. of the area.

37 Võrumaa

Breathtaking nature

Võru County stands out from the rest of Estonia thanks to its varied relief, diverse landscape and rapidly changing natural community. The most beautiful and most valuable places in terms of conservation purposes are protected and guarded well.

The highest point of the Baltic States, the Great Egg Hill, which offers a breath-taking view of

Photo: Kristin Kaur the surrounding landscape with the rolling hills, is located in the south of Võru County. Haanja Nature Park conserves a unique landscape, rich with lakes, where the fast-flowing River is surrounded by eye-catching sand cliffs and picturesque valleys.

The life here can be described by active freedom that includes hiking, boat rides, horse riding, ski runs, saunas and fairs.

Life in Võru County allows you to enjoy the comforts of modern world as well as the peace and purity of wilderness.

More information: www.visitvoru.ee

38 Thank you for your investment in the future!

Contact: www.investinvoru.com

Photo: Sven Zacek [email protected] part-nanced by the European Union

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