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ECONOMIC PANORAMA A GOOD REGION FOR PEOPLE TO LIVE AND WORK AND FOR COMPANIES TO GROW East A GOOD REGION FOR PEOPLE TO LIVE AND WORK AND FOR COMPANIES TO GROW

According to the general attitude of from a very young age and is refl ected But what makes East Belgium really spe- inhabitants of East Belgium based on in the excellent level of education com- cial is its small size. The German-speaking a representative survey (1), the living pared with other countries. The proxim- community is the smallest constituent conditions in this region are excellent. ity to internationally renowned colleges state of Belgium with 77,000 inhabitants. 98 percent of citizens are satisfi ed or and universities in the direct catchment It enjoys a large degree of autonomy in extremely satisfi ed with their standard area and networking beyond borders person-related areas such as language, of living. Particular emphasis is placed also play an active role in this context. education and culture as well as in eco- in this context on personal life and As a result, inhabitants of East Belgium nomic areas. A logical consequence of above all on apartments, houses and the make up an ambitious, highly sought-af- this is that distances in East Belgium are neighbourhood. This is closely followed ter workforce. short. People know one another and get by employment as well as health and a lot done through direct contact with- well-being. These results are an indicator East Belgium lies in the heart of Europe out very much bureaucracy and often on of the close link between the population and benefi ts from excellent traffi c con- quite a personal basis. It could also be and their region as well as of a high-out- nections. Over 40 million consumers or said that the region’s small size creates put economic region. 20% of the purchasing power of the Eu- an unbeatable competitive advantage. ropean Union can be reached within just The economic landscape of East Belgium four hours by HGV. And all this is situat- In short, East Belgium has many trump is marked by a large number of burgeon- ed within a largely natural, family-friend- cards to play and is an excellent breed- ing small and medium-sized fi rms. The ly region characterised by excellent living ing ground on which to develop you and conditions are ripe for future-orientat- conditions. It is little wonder, therefore, your fi rm in the long term. The following ed, sustained economic development in that East Belgium is considered by pages present what East Belgium has on this area. This begins with multilingual- non-residents to be an attractive region offer for you. ism and a high level of cultural under- in which to live and work; it has a great standing which is promoted in children appeal for people. Happy reading!

NATHALIE KLINKENBERG ISABELLE WEYKMANS Managing Director Employment Minister of WFG Ostbelgien for the German-speaking community

(1) Survey on the opinions and mood of the population of East Belgium conducted by ‘forsa Politik- und Sozialforschung GmbH’ (). 1,000 people over the age of 18 responded to a telephone survey during the period from 30 June to 26 July 2018.

How large are In which sectors How many employers and 80.94% East East Belgian fewer than do the majority employees are there Belgium 10 employees businesses? of employees work? altogether? THE FILM!

Manufacturing industries 4,904 21.87% All our employers are Health and welfare 3,005 13.40% taken to be branches Trade and repairs 2,975 13.27% which employ staff in Education and training 2,540 11.33% East Belgium (regardless Public administration 2,341 10.44%

of whether their head- 2017 security social for ce offi regional Source: 17.77% Building industry 1,484 6.62% 2,251 22,422 quarters are based). The between employers employees number of employees Other economic services 1,364 6.08% 10 and 99 corresponds to the 1.29% Transport and warehousing 811 3.62% employees Hotel and restaurant industry 667 2.97% number of jobs in these more than www.wfg.be/standort-ostbelgien/ Personal services 536 2.39% branches. 2017 Sozialsicherheit für Landesamt Source: 100 employees 2018 Gemeinschaft Deutschsprachigen der Arbeitsamt Source:

2 ECONOMIC PANORAMA of East Belgium 3 „ is considered East Belgium normal in East Belgium.“

According to Peter Gijbels, who moved to East Belgium two and a half years ago BUILDING BRIDGES where he became Human Resources Manager with AstenJohnson, “More than 95 percent of our products are intended for export markets. We are therefore totally dependent on multilingual staff. We have the advantage, however, of being able to THROUGH MULTILINGUALISM recruit multilingual staff easily in East Belgium and the surrounding area and that is a real luxury.”

East Belgium is the tiny area of Belgium on the border with AT LEAST BILINGUAL option. The region is small and people , the Netherlands and the Grand Duchy of Luxem- Even the production workers at Asten- are dependent on their neighbours in bourg (approximately 77,000 inhabitants, 854 km²) with a high Johnson are generally at least bilingual. , Germany and the Netherlands. degree of self-determination and where German is not only “German has always been the working This multilingualism is also promoted in a the language of business, education and the courts but also language. Our employees therefore need targeted manner however. Children are the native language of the majority of the population. to be conversant in German at least to a introduced to their fi rst foreign language level which enables them to understand through play at kindergarten and this is The region is a meeting point of two cultures: Germanic and Ro- work orders, safety instructions and a real trump card which is worth holding manic. The East are held in high esteem for their “Prus- product descriptions. German speakers onto. sian” zeal on the one hand and their French ‘Savoir Vivre’ on the in East Belgium generally speak French other. They have something of both cultures and this helps to as well and are happy to help their WORKING INTERNATIONALLY build bridges and create networks. French-speaking colleagues if neces- AND EXPERIENCING NATURE The border sary,” acknowledges Gijbels. People fi nd What motivated Peter Gijbels to move All this begins with the multilingual approach to education at triangle in that quite normal here but this has not from Hamont (Belgium) 110 km away to a very early age. Children are introduced to their fi rst foreign – an intersection always been the case everywhere. East Belgium? “The possibility of working of cultures and language in the form of play at kindergarten (which is free in languages in an internationally active fi rm and living Belgium and part of the school system). The second language OPENNESS TO CULTURES in a uniquely beautiful, largely natural re- PETER GIJBELS, photo: Frans Berkelaar Human Resources Manager is built on at primary school followed by English and Dutch at AND LANGUAGES gion. I also love the mentality: the people with AstenJohnson in Kettenis, secondary school. He is convinced that the border loca- are extremely entrepreneurial and willing is impressed by the multilingualism tion and associated openness to other to work but at the same time relaxed and and mentality of East Belgians An increasing number of schools offer bilingual classes in which cultures and languages is what makes open in their dealings. We Limburgers are photo: GrenzEcho / David Hagemann German and French are taught at the same time and in equal all this possible. People have no other not very different from this.” measure by native speakers from kindergarten through to gra- duation from high school. AstenJohnson is a global leader in the manufacturing of coverings and NL screening for the paper and non-woven fabric industry. The fi rm (founded in 1885) has been based since the end of the 20th century in its original lo- cation in Kettenis (). In 1999, it merged with the Canadian / American fi rm Johnson to consolidate and expand its worldwide presence. The fi rm B employs 175 people in East Belgium.

East Belgian D

L D

B East Belgian German/East Belgium F How do you say…?

Euregio Maas-Rhein L Greater region of SaarLorLux ✔ 11,000 km² ✔ 65,400 km² ✔ 4 m inhabitants ✔ 11 m inhabitants ✔ 5 regions: Belgian Limburg, Dutch ✔ 6 regions: Grand Duchy of German: German: German: German: German: German: Limburg, Region of , Luxemburg, Lothringen, , stilles Wasser der Lastwagen der Bonbon Province of Lüttich (Liège), East Rhineland Palatinate, Region of der Kugelschreiberder Gebrauchtwagender Terminkalender Belgium Wallonia, East Belgium

✔ Maas-Rhein Euregio ✔ SaarLorLux 3 languages: Dutch, French, languages: French, Luxemburgish, East Belgian: East Belgian: East Belgian: East Belgian: East Belgian: East Belgian: German German plattes Wasser der Bic die Okkasion das Agenda der Camion die Schick

4 ECONOMIC PANORAMA of East Belgium 5 More opportunities in the employment market thanks to dual diplomas

Thanks to different agreements with the Chambers of Crafts in Aachen and , automotive mechatronics engineers, hairdressers, retailers and cabinet makers in East Belgium automatically obtain a German professional licence in addition to the Belgian diploma with just a single journeyman’s examination. This increases the value of the diploma and the professional experience in a neighbouring country promotes the independence of trainees as well as the mobility in the employment market. This offers real opportunities for young people and fi rms in East Belgium. The dual diploma also promotes mobility in the employment market.

Results of 2015 PISA study?

EAST BELGIUM Natural sciences: 505 Points Mathematics: 502 Points Reading: 501 Points

AVERAGE OF OECD COUNTRIES East Belgium Natural sciences: 493 Points Mathematics: 490 Points OECD BELGIUM EAST OECD BELGIUM EAST OECD BELGIUM EAST Reading: 493 Points EDUCATION AND 2015 OECD Source: Natural sciences Mathematics Reading TRAINING Number of schools in When King Philippe paid a visit to East Belgium in the autumn of 2015, he gave his full attention to dual education. The youth unemployment rate in Belgium’s German-speaking community stands at East Belgium? 11.9% (2017). This is signifi cantly lower than the rate in the other Belgian regions (approx. 15% in and over 30% in the Region of Wallonia (without the German-speaking community). This is 23 primary schools (59 establishments) largely due to the dual education model which has been an integral part of professional education 10 secondary schools in East Belgium for the past fi fty years. 2 training centres for small businesses (ZAWM) Dual learning means that young people acquire tices and 250 masters candidates have been KING PHILIPPE 1 college (health and education) the theory in a professional education centre trained in over 400 training centres on appren- in discussion with Robin and learn how to put the theory into practice ticeship contracts or masters courses. This pro- Henry from Kelmis, a in a recognised centre of learning. East Belgian portion far exceeds those of other regions. trainee automotive mechatronics engineer at fi rms are happy to offer their services as cen- “The results speak for themselves,” concludes the ZAWM in Eupen, fi nding tres of learning. They have been aware for a Thomas Pankert, Director of the centre for out about the successes of long time that this is the most effective way education and training for small businesses in dual professional training. of promoting young talent. Firms thus have the Eupen: “In East Belgium, 95% of all apprentices In the background Thomas Pankert, Director of the East Belgian tradespeople opportunity of training young people in a prac- fi nd a job within six weeks of completing their ZAWM. tical manner tailored to their particular fi rm. training – a placement rate which can only be photo: GrenzEcho – Helmut Thönissen Over recent years, an average of 600 appren- dreamed of via other training channels.” are world leaders Young East Belgian tradespeople are reaching the winner’s podium time and again at the Worldskills and Euroskills events, which recognise the best tradespeople in the Metal 31 world and in Europe. In 2017, Sabrina Scheen (painter), Wood 29 Most popular training John Pauquet (tiler), Johann Krings (automotive mecha- Mechanics 28 courses for trade professions Architecture 26 tronics engineer) and Julien Boveroux and Micha Meys (horticulturalists) represented Belgium at the Worldskills Newly concluded apprenticeship contracts 2017 Services 23 Horticulture 16 event in Abu Dhabi. Retail trade 15 Personal hygiene 15 Food 14 JOHANN KRINGS, Electricity 14 Automotive mechatronics engineer, Painting/interior design 7 Johann Krings from Heppenbach, at Printing 4 the Worldskills event in Abu Dhabi. Other 4 photo: Worldskills Belgium Animal care 3

TOTAL 229 2017 1 October / Status 2018 : IAWM Source

6 ECONOMIC PANORAMA of East Belgium 7 Excellent networking for East Belgian economy and science A small region must be a clever region capable of transcending its own borders, building bridges and networking. East Belgium excels in all these areas particularly when it comes to cooperation between the economy and the world of science. Universities and colleges lie in the direct catchment area in Lüttich and Namur, Leuven and Hasselt, Maastricht and Heerlen, Aachen, Cologne and Trier and Luxemburg. They are attended by East Belgian students and may be consulted by local fi rms.

Intensive cooperation agreements exist with some of these institutions. The “Science for East Belgium” initiative connects East Belgium with KU Leuven and Cologne University. If a fi rm is looking for a scientifi c part- ner to conduct studies or develop products; if it has research and devel- opment questions; if it is seeking help for the formulation of a scientifi c query; or if it is interested in cooperation with one of these universities, STEFAN EBERHARD it can contact a coordination offi ce in Eupen directly. Stefan Eberhard studied const- ruction engineering at FH Aachen FH Aachen takes it a step further by not simply offering East Belgian and wrote his master’s thesis at fi rms access to the world of science and applied research and devel- LIGNA Systems in St.Vith where he is currently in charge of the opment; it also strives to develop close, practical partnerships with lo- technical offi ce. cal fi rms either within the framework of dual education through prac- photo: Talking Circles tice-orientated fi nal dissertations which may be written in the local fi rm „Cooperation between FH Aachen or through contract investigations and scholarship programmes. FH Aachen is present in East Belgium via a permanent point of contact. and East Belgian fi rms is a real It also supports the Early Birds Technology Breakfasts, a networking win-win partnership“ event which is organised on a regular basis by WFG Ostbelgien. When Stefan Eberhard 2015 was looking for a traineeship as a timber engineering student at FH Aachen, he came into CONTACTS contact almost by chance after a lecture with the business manager of the East Belgian St. Vith based fi rm LIGNA FH Aachen WifO - Wissenschaft für Ostbelgien Systems, a young, dynamic business specialising in the construction of wooden hall buildings. However, this meeting +32 (0)87 59 12 83 +32 (0)87 56 82 28 was not quite a coincidence as FH Aachen had been working intensively for a number of years with fi rms from the [email protected] [email protected] German-Belgian border region. Both undergraduates and masters students are increasingly completing their practical training with fi rms from East Belgium. www.fh-aachen.de www.wifo.info

Stefan Eberhard comes from Moers in constructions, time which is often lack- cal training whilst the fi rm has access the German Ruhr area and had already ing in less innovative fi rms”, says the to specialist staff and maintains close been introduced to East Belgium prior former student of FH Aachen, who is contact with professors and research to his studies from motorcycling trips currently in charge of the technical of- and development centres enabling it to through the idyllic countryside. fi ce at LIGNA Systems. Three former keep abreast of current innovations. “When I came into contact with LIGNA FH students have since been taken on Systems as a student, I immediately felt by LIGNA Systems and a further two So what is it like for a German to work “The dual education excited away as timber construction is are currently completing their practical for an East Belgian fi rm? “It’s complete- programme in East Belgium provides us my thing and corresponds to my basic training with the fi rm. ly different! The hierarchy is quite fl at. with an excellent, effi cient system. Multilingualism, the ecological beliefs. But above all I was You know who your line manager is but availability of land and good geographical connections give impressed by the dynamism and inno- Stefan Eberhard sees this close coop- you discuss things on an equal footing. us opportunities to grow and be in a position to implement this vative nature of LIGNA Systems. Re- eration between FH Aachen and lo- There are often lots of different opin- growth.“ petitive tasks are very quickly automat- cal industry as a win-win partnership. ions and that can be slightly chaotic at ed leaving time to deal with challenging Students receive interesting, practi- times but it often leads to new ideas.” GERT LUDT, Branch Manager & Head of Land Transport / Head of Logistic Eupen, Schenker nv (Eupen)

LIGNA Systems based in St.Vith has specialised since it was established in 2006 in the construction of wooden hall buildings for industry, commerce and leisure sectors. The core business involves the planning, calculation and production of large scale timber structures. The young fi rm currently employs over 30 people and its main markets are Germany, Austria, Switzerland and Belgium.

8 ECONOMIC PANORAMA of East Belgium 9

East Belgium A44 A4 COLOGNE / BONN CENTRAL LOCATION E313 IN THE OF EUROPE

AND CONNECTIONS E25

E40

E40

LIEGE CHARACTERISTICS

E42 • 77,000 inhabitants • German as the language of business, education and the courts • 9 communities on 854 km² • 61,100 Belgians (79.16%) 13,619 EU citizens (17.64%) 2,466 non-EU- citizens (3.19%) E42

PROPERTY IN Average sale price of industrial sites E25 EAST BELGIUM in Eupen: 50 EUR/m² Eupen 120 East Belgium lies in the From Eupen… Brussels 275 heart of Europe and is di- Amsterdam 370 Cologne (85 km) Rental prices rectly linked to the largest Frankfurt 444 Düsseldorf (91 km) for office and urban centres in Europe Milan 500 retail areas via the E40 and E42 mo- Brussels (132 km) Luxemburg 576 (EUR/m² per year) torways. Over 40 million Luxemburg (147 km) Dublin 592 Paris 790 consumers can be reached Antwerp (148 km) ST.VITH London 1,513 within just 4 hours by Rotterdam (241 km) HGV. This corresponds to Frankfurt (278 km) around 20% of the overall purchasing power of the Paris (411 km) . Basel (490 km) Passengers can travel with the Intercity from Eupen station directly to Liege, Leuven, Brus- „East Belgium is located in sels, Gent, Bruges and Ostend. International the heart of the Euregio surrounded by There are 7 international airports within a radius connections can be made close by at Aachen an extensive motorway network which enables us of 150 km which connect East Belgium to Europe central station (17 km) and Liège Guillemins to transport goods quickly from A to B. Our employees’ and the rest of the world. (50 km). journeys are short, which means that they do not waste time AIRPORT ENTFERNUNG unnecessarily on their way to or from work. We also benefit from good framework conditions which enable us to LGG LIEGE AIRPORT 47 km • The Port of Liège (39 km away) is Europe‘s develop industrially. A wide range of service industries are located in MAA MAASTRICHT AACHEN 62 km third-largest inland port. AIRPORT the region, for example, which are able to carry out maintenance and • The multimodal „Liège Trilogiport“ in Hermalle- repair work quickly.“ CGN COLOGNE BONN 98 km AIRPORT sur Argenteau is developing into a hub serving inland waterway, road and rail transport, GREGOR FRECHES, DUS DÜSSELDORF AIRPORT 111 km offering direct access to the North Sea ports Director and administrative board member CRL BRUSSELS SOUTH 123 km of Antwerp, Rotterdam and Dunkirk. Isosystems AG, CHARLEROI AIRPORT • The large ports between Cologne and BRU BRUSSELS AIRPORT 126 km Düsseldorf are just one hour‘s drive away. LUX 145 km • Europe‘s second-largest seaport, Antwerp, is AIRPORT just 149 km away from East Belgium.

10 ECONOMIC PANORAMA of East Belgium 11 CHRISTINE BEYER appreciates the great How many Culture, sports and fun... quality of life in East Belgium particularly for tourists visit East Belgian residents are families with children photo: Sophie Bellec East Belgium? involved in associational life

175,206 arrivals in 2017

258 37 2.15 SPORTS YOUTH night stays on average ASSOCIATIONS ORGANISATIONS 20,643 MEMBERS 3,150 MEMBERS

62% 62% of guests come 67 80 26 9 from Belgium MUSICAL SINGING THEATRE DANCE ASSOCIATIONS ASSOCIATIONS ASSOCIATIONS ASSOCIATIONS

Source: Statistics Belgium 2018 Belgium Statistics Source: 2,208 MEMBERS 2,141 MEMBERS 753 MEMBERS 522 MEMBERS East Belgium 2018 Gemeinschaft Deutschsprachigen der Ministerium Source: The cost of living is QUALITY OF LIFE AND reasonable in East Belgium land prices for private accommodation 2015 FAMILY-FRIENDLY POLICIES 2HOSPITALS for medical care Christine Beyer moved to East Belgium from her home town of Lyon () four years ago when her husband

decided to go back to work at Aachen technical college after a two-year parental leave break. € Aachen They had been looking for child care for a long time but The family now live in their own home in . Chris- 334.02 there were simply no free places in Aachen. They eventu- tine Beyer enthuses once again: “Thanks to the attractive Eupen ONE IN THREE ally found a lovely childminder in Eupen who looked after property prices, we can afford a standard of living here 76.68 € children up to the age of 18. That is nothing exceptional which would not be possible at all in Lyon or Aachen.” East Belgian residents are involved in here in East Belgium. “Work-friendly opening hours are normal here and it is easy as a mother to find a full-time She has also changed jobs. She currently works as Hu- 96.15 € VOLUNTARY WORK job”, says Christine Beyer, who wanted to go back to work man Resources Manager with Hydro in Raeren, as she was 3 after the birth of her youngest daughter. keen to work in an international environment: “I now have a challenging job with a world market leader which offers The couple found a childminder in Eupen and therefore me interesting development opportunities. And I live in INFANT looked for and found a house nearby. Christine Beyer was a region with a great standard of living and a surprising- CARE pleasantly surprised by the wonderful hospitality and spon- ly wide range of cultural activities where you always feel 38.1% in East Belgium (to 3 years) taneous helpfulness of her new neighbours. “When I didn’t safe, even at large-scale events. You can enjoy the peace leave the house for two days, the neighbours came to see and quiet of rural life here. But if I am in the mood for a EU-stipulation 33% if everything was OK and whether I needed any help. This large city, I simply jump in my car and can be in the centre 27.4 € friendly attitude is extremely heart-warming and typical of of Aachen, Maastricht or Liege within a quarter of an hour. people from this region”, the young French lady adds. What more could anyone want?!” „The things that commit us as a When the children were a little older, they went to the “We feel really at home here. The quality of life in East customer-orientated textile cleaner to East kindergarten. “The children are not simply kept busy here, Belgium is excellent. My family never want to move away Belgium are the structured mentality and multilingualism they are introduced straight away to a second language from here”, concludes the young mother. But she hesi- of our employees. These assets enable us to provide both the and actively prepared for school”, she says. And at the tates for a moment. “There is one thing I miss”, she says, Belgian and German markets with a high-quality service. St. Vith end of the school day children have access to after-school winking, “The sun… When I retire I might go back ‘home’… 2015 Belgium Statistics Source: 25.92 € We appreciate the combination of a rigorous work ethic and love of care – “This care allows me to pursue my career.” to the sunshine!”. life of East Belgians when cooperating with local firms. Incoming tasks Clervaux are dealt with in good time with a great deal of care which promotes 216.66 motivation and a sense of fun in the workplace.“

€ Bitburg-Prüm42.75 € OLIVIER EGYPTIEN, Hydro is an international aluminium manufacturer which is active throughout the value Operation Manager Polytex AG (Eupen) added chain from bauxite extraction to the creation of rolled, extruded aluminium products and construction systems. The firm operates an extrusion plant in Raeren and a die casting plant in Eupen. It employs around 250 people in total in East Belgium.

12 ECONOMIC PANORAMA of East Belgium 13 Plenary session at the Parliament of the German-speaking community photo: GrenzEcho - David Hagemann

East Belgium SO SMALL AND YET SO GREAT

The thing that makes East Belgium unique in the international sphere is its small size. With a population of 77,000, it is the smallest constituent state in Belgium and represents less than 1% of the Belgian population.

East Belgium is therefore ten times smaller the region as the “best protected” minority than the smallest federal state in Germany in Europe. () and no larger than Andorra. How- ever, the German-speaking community is The German-speaking community has its equipped with the same skills as the Flem- own parliament with 25 elected represent- ish and French communities. Furthermore, atives, its own government and associated it has acquired certain skills for its territory ministries. The German-speaking population from the region of Wallonia. It is not with- decide on their own destiny in many areas in out justification that certain people refer to a totally autonomous manner.

Mecondor chooses East Belgium Competencies: Number of parliamentarians or ministers / inhabitant: The firm Mecondor, which specialises in there. However, we decided to stay in St. „The recent reduction Culture the manufacturing of gauntlets, has been Vith. There has not been a single day of based in St. Vith for the past 42 years. strikes in all the 38 years I have worked Family, health and social affairs in corporation tax A government with 4 ministers However, the firm has increasingly been for the firm and the quality of the work Training and education 25 parliamentarians struggling due to a lack of space which produced here and the company man- in Belgium will no Cooperation between communities became even more evident with the ac- agement are second to none. In the past 1 European parliamentarian and international cooperation quisition of a production line for PVC we have worked in cooperation with the doubt help to keep separators from an Austrian business. mechanical engineering company Feka in Use of different languages in education businesses in this Approximately 1 elected representative per 3,075 citizens. Everything is moving East. But Mecondor St. Vith and Capaul in Eupen to complete Protection of monuments and the environment Approximately 1 minister per 19,250 citizens. and the Italian parent company decided major developments for the main factory area as well as and excavations to build new premises in St. Vith. in Monza. Employment enticing new ones.“ The business manager Klaus Jousten ex- Over the past 42 years we have acquired Supervision and financing of the communities plains why: “We considered carefully the knowledge and know-how in our current „With its central location, Tourism option of relocating all our production to location which would have to be rebuilt in multilingual population and restorative Eastern Europe, particularly since a large a new place. All these reasons combined Additional transfers of competences are currently being environment, East Belgium offers the trump proportion of our customers are based led us to the decision to stay in St. Vith. negotiated between the DG and the region of Wallonia cards that can be enjoyed by our international particularly in relation to regional development and the customers when they visit us. The traditional location of construction of housing. Büllinger demonstrates how leading-edge technology can also be at home “in the countryside.“ Mecondor has been manufacturing gauntlets for the battery industry in St. Vith since 1976. Prior Annual budget: to the year 2000, only woven polyester gauntlets were produced, but fleece is now increasingly MARIE-JOSEPHINE KESSLER, being used and this material currently accounts for around 70% of the production volume. Around Marketing Manager, 35 employees produce approximately 250 million running metres of individual gauntlets which 314 million Euros Faymonville Group corresponds to around 29 million plates.

14 ECONOMIC PANORAMA of East Belgium 15 The partners of WFG Ostbelgien:

OSTBELGIENINVEST (OBI)

Hütte 79 Quartum Center A strong team 4700 Eupen of specialists and personal advisers are www.ostbelgieninvest.be available for WFG entrepreneurs wising to gain a foothold in East Belgium. photo: WFG – Fabian Erler CHAMBER OF INDUSTRY AND COMMERCE EUPEN- -ST. VITH East Belgium Herbesthaler Straße 1A 4700 Eupen THE POWER www.ihk-eupen.be OF SHORT DISTANCES SMALL BUSINESS ASSOCIATION OF THE GERMAN-SPEAKING The combination of a small region with a high degree of autonomy is what makes East Belgium COMMUNITY so special. Distances are short. Thanks to short, direct routes detours can be avoided, decisions speeded up and non-bureaucratic solutions sought. Vennbahnstraße 4 4780 St.Vith The WFG understands this situation and acts ly through the Belgian red tape. The system is as a partner for fi rms wishing to become active direct and uncomplicated. The “one-stop-shop” in East Belgium. It puts businesses into contact principle applies in which a contact point, a per- www.mittelstand.be with the relevant decision points and, if they are sonal adviser and a team of specialists accom- not located in East Belgium, guides them skilful- pany the customer all the way. SPI - DEVELOPMENT AGENCY OF THE PROVINCE DE LIÈGE „The short distances make us strong“ Rue du Vertbois 11 4000 Lüttich On setting up Sterisys 10 years ago, Patrick The challenges facing companies oper- And the East Belgian identity is an addi- Radermacher made a deliberate choice for ating in East Belgium are no different to tional asset: “Many people for example www.spi.be (Raeren), guided by the location in those elsewhere, whether with regard to don’t know that German is spoken in Bel- STERISYS is a market leader in Europe in the the centre of Europe, the proximity to uni- the struggle to fi nd suitable skilled labour gium. This makes them curious – and at fi eld of manufacturing ethylene oxide sterili- versities and suppliers, the multilingualism or the unstable political situation in Eu- the end of the day helps generate busi- sation equipment for the medical technology and cultural competence of our staff, but rope and worldwide and the consequent ness in the whole German-speaking re- industry. STERISYS offers comprehensive also the compactness of the region and the market uncertainty. But the CEO of the gion. And it makes it easier for us to pres- turnkey solutions to medical technology man- associated short distances. “Our proximity 20-strong company is convinced that the ent ourselves as a multicultural company. ufacturers and sterilisation service providers, WALLONIA.BE – to organisations like the WFG or OBI and company’s proximity to various institu- The multilingualism found in the region providing end-to-end support covering the EXPORT & INVESTMENT even to politicians are one of our strengths. tions and policymakers can be of great and among our staff means that we are analysis of requirements, process organisa- When questions arise, it’s easy to fi nd help. help: “It’s easy to get heard. The needs of better at understanding others.” tion, the manufacturing and commissioning Avenue des Dessus de lives 6 We aren’t faced with mountains of red tape. companies are taken seriously. And their of the systems, staff training and system 5101 Namur-Loyers We have direct access to decision-makers”, interests are represented, not just within maintenance. Founded in 2008 in Eynatten, PATRICK RADERMACHER, the company now has over 20 employees and said the CEO of this booming manufacturer the region but also further afi eld.” www.investinwallonia.be of industrial sterilisation units. CEO, Sterisys (Eynatten) has become a leading player on the interna- tional market.

16 ECONOMIC PANORAMA of East Belgium 17 Financial incentives for fi rms in (East) Belgium East Belgium The region of Wallonia pays out investment premiums of between A few examples are outlined below: 15 and 20% of the total eligible investment amount (depending • A wage tax exemption is available for night and shift work on the size of the fi rm, investment volumes, creation of jobs amounting to 22.8% for at least 2 shifts and 25% for continu- SETTLING and location) for the acquisition of building plots, buildings, ous work (at least four shifts) equipment, etc. • The employer’s contribution to social security payments is waived completely with the fi rst employee is hired. Signifi cant The notional interest deduction from equity investments is a reductions are granted for the next fi ve employees. AND FOUNDING • unique international measure which allows for a drastic reduction In the case of the recruitment of unemployed people, the em- in corporation tax. The average corporation tax currently stands ployer simply pays the net difference between the unemploy- at around 25% and is even lower in certain sectors such as distri- ment benefi t and the fi nal wage for the fi rst 6 months. Fur- Foreign investors in good hands bution and logistics and research and development. ther recruitment subsidies result in average wage cost savings of up to 12% over 4 years. 89 foreign fi rms, mainly from Europe (Flanders, the Netherlands and France) and North America (Canada and the Unit- Within the framework of the tax shift adopted in 2015, corpora- • An incentive of up to € 1,500 per quarter is also available for ed States) invested a total of 683 million Euros in Wallonia in 2017. This represented an increase of 23.5% compared with tion tax was reduced to 25% for large fi rms and 20% for small the appointment of older employees (over the age of 54) or 2016, which resulted in the creation of over 2,000 new jobs (+42% compared with 2016). Wallonia has been known for and medium-sized fi rms. Belgium is therefore becoming an ex- young unemployed people. some time now as an investment location. tremely attractive location for fi rms by comparison within Europe. Additional fi nancial incentives exist for staff education and training. The offi cial body which supports for- community is an integral part of the preneurs with questions and proce- 38,9 29 30,18 30,6 31,3 eign investors in the region of Wallonia region of Wallonia as far as economic dures in relation to property, available 25 is known as Wallonia.be Foreign Invest- matters are concerned. For East Bel- fi nancing possibilities and subsidies, 20 20 ment Agency. It also supports fi rms gium, the Walloon investment agency staff recruitment, etc. and is able to wishing to invest East Belgium and as- collaborates closely with the WFG. establish direct contact with interna- Are the (East) Belgians actually sists them in dealing with the Walloon tional tax experts.

UK more productive than other (KMU) and federal administrations and organ- Melanie Cordonnier is the main contact Spain isations. The small German-speaking partner. She supports foreign entre- www.investinwallonia.be France nationalities? Belgium Belgium Germany (General rate) (General

Netherlands USA 100% Belgium 96.4% Furthermore, tax regulations may be introduced with the federal Setting up business – „You never walk alone“ fi nancial administration which could result in a further reduction Netherlands 93.8% in the tax burden, e.g. exemption from property tax for 5 years, Denmark 92.9% Founders of businesses often have sparkling business ideas but the long list of tasks to be carried out often present hurdles. long-term tax exemption for new facilities, etc. France 92.8% The advisory service for setting up business offered by the WFG is available to address these issues. It advises future self-em- Deutschland 90.9% The Belgian government is keen to promote research and de- ployed workers and existing fi rms and offers guidance and resources for company development and project promotion. G7 countries 86.0% velopment and has therefore introduced particularly attractive Switzerland 85.9% “We discuss the necessary formalities, al advice in 2017 during their start-up As well as individual advice, the der tax-related framework conditions with extremely benefi cial develop business, fi nance and profi ta- phase and 51 started their own business WFG also organises general informa- measures such as an 80% tax reduction on income from patents, Sweden 85.3% bility plans together and fi nd out about in the same year. A further 39 business- tion meetings, raises awareness to is- partial exemption from social contributions for researchers and a Euro-zone 82.5% specifi c system for expats in the area of R&D. Special grants are promotional and fi nancing possibilities”, es were founded by people who had sues around freelance work for young Spain 78.0% says Yannick Grosch, one of the con- received support during previous years people and plans networking events for also available for research and development. Finland 76.4% sultants in the WFG team. whilst 117 existing fi rms sought advice young fi rms. on how to secure their activities in the A number of incentives exist in the fi eld of human resources UK 75.7% 248 people benefi ted from individu- long term. which are intended to reduce staff costs and promote recruit- Czech Republic 48.3% ment. Poland 43.8%

A place where ideas can come to fruition Incubators are places where new business ideas and innovative projects can develop to the point of a successful market How can we help you? launch and beyond. They are co-working spaces, where start-ups and established fi rms meet and receive support from an extensive network of specialists and experts from all kinds of fi elds. A brief overview of the services They provide a combination of infra- The East Belgian incubator stands out Sandrine Barre is the project manager offered by WFG Ostbelgien: WFG Ostbelgien VoG structure, knowledge and networks and for its close network with a further within the WFG and is delighted to wel- Wirtschafts- und Regionalförderung are springing up in many different loca- eight incubators in Flanders, Wallonia, come the fi rst “residents”: “The young- FREELANCE WORK & PROMOTION OF ECONOMIC tions. It is estimated that 10,000 already the Netherlands and Germany within er generations think and work differ- BUSINESS START-UPS DEVELOPMENT exist worldwide. An incubator of this the framework of the EU regional pro- ently. Our aim with this project is to • Project preparation • Settlement & investment kind is currently being launched in East ject “EMR StartUp”. It enables (young) provide a platform from which they can CONTACT: Belgium. It was started by WFG Ostbel- entrepreneurs in the East Belgian incu- mess around and work things out with • Formalities and • Project promotion WFG Ostbelgien +32 (0)87 56 82 01 gien and Ostbelgieninvest. The start-up bator to share their experiences with the support of experts so that they can authorisations • Financing and subsidies Quartum Center [email protected] incubator is therefore located in a place like-minded people in partner incuba- bring their innovative ideas to fruition.” • Financing and • Innovation and research Hütte 79/20 www.wfg.be where consultants and experts meet: tors and benefi t from their expert net- B-4700 Eupen www.facebook.com/wfgostbelgienvog/ subsidies • Export promotion the Eupen Quartum Center. works. • Establishment of successors

18 ECONOMIC PANORAMA of East Belgium 19 10 GOOD REASONS FAVOURING EAST BELGIUM

Multilingualism Room for growth 1 6 Whether German, French English or Dutch, Well-equipped industrial estates and language is no problem for East Belgians. infrastructures offer your company the necessary room to develop.

Highly-motivated Tailored 2 staff 7 support People in East Belgium are characterised Companies and the self-employed are provided by their high levels of motivation and with competent advice and support in developing productivity. their projects, whether with regard to development grants, investments, innovation, R&D, etc.

Practical vocational Institutional 3 training 8 autonomy VET colleges and companies work together – under Though only a small region, East the „dual“ apprenticeship system – to train skilled Belgium enjoys political autonomy workers, in line with labour market needs. and is well-integrated in international networks. Proximity to Top quality 4 academia 9 of life East Belgian is well-integrated in the network Nature, culture, sports, gastronomy .... and of surrounding universities and research excellent care facilities for children. East institutions. Belgium is a fantastic place to live.

Central Short 5 location 10 distances Located in the middle of Europe, East Decision-makers are just round the Belgian has excellent connections, corner. The WFG is there to help whether by road, rail, water or air. you develop your business.

IMPRINT : EDITOR: Concept, copywriting and production: Talking Circles PgmbH, Eupen Economic Panorama of East Belgium – WFG Ostbelgien, Hütte 79/20, B-4700 Eupen Graphic design: studiodreizehn, Eupen a magazine published by Responsible editor: Printing: Pavonet, Eupen WFG Ostbelgien VoG. Nathalie Klinkenberg Photos Cover: Ministerium der DG – Gregor Colienne / Christian Published in loose succession in German, ©2018, WFG Ostbelgien VoG - Wirtschafts- & Regionalförderung Charlier, MOCKEL AG, AstenJohnson, WFG – Fabian Erler, SPI, French and English. ostbelgien.eu – Dominik Ketz, GrenzEcho – Ralf Schaus

WITH THE RECOMMENDATION OF THE CHAMBER OF INDUSTRY & COMMERCE EUPEN-MALMEDY-ST.VITH.

WFG Ostbelgien VoG und Wirtschafts- und Regionalförderung GÖHL The European Agricultural Fund Zwischen for Rural DevelopmentEurope WESER investing in rural areas