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Invest in VUKOVAR-SRIJEM COUNTY, Croatia

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Invest in VUKOVAR-SRIJEM COUNTY, Croatia INVEST IN VUKOVAR-SRIJEM COUNTY, CROATIA INVESTMENT PROFILE CONTENT BASIC INDICATORS 4 LOCATION 5 HUMAN CAPITAL 6 COST COMPETITIVENESS 6 THE MOST SIGNIFICANT INDUSTRIAL BRANCHES 8 INTERNATIONAL BUSINESS ENVIRONMENT 9 READY–MADE INVESTMENT LOCATIONS 12 ATTRACTIVE INVESTMENT INCENTIVES 17 ADDITIONAL INCENTIVES 17 GET TO KNOW THE VUKOVAR-SRIJEM COUNTY BETTER 18 Osijek RIVER PORT BASIC INDICATORS (DANUBE) The Vukovar-Srijem County is the easternmost county in Croatia Zagreb RAILWAY PORT Vukovar bordering Serbia and Bosnia and Herzegovina, with Vukovar as the county Vinkovci seat. The County has a huge potential in food production and wood AIRPORT processing industries and it offers excellent opportunities in logistics and transportation services. RAILWAY Ilok Otok ROAD Županja ! REGIONAL HIGHLIGHTS: LONG INDUSTRIAL AND AGRICULTURE TRADITIONS LOCATION AT THE CROSSROADS BETWEEN HUNGARY, SERBIA, AND BOSNIA AND HERZEGOVINA The County is situated at the intersection of road, rail and waterway routes of international importance. Two Pan- MODERN INFRASTRUCTURE (MOTORWAYS, RIVER PORTS, European corridors pass through the County: corridor X for rail and road transport (E70) and corridor VII for river INTERNATIONAL AIRPORT) transport (Danube). HUGE POTENTIAL FOR ORGANIC FOOD PRODUCTION The County’s traffic and storage potentials are the elements that increase its economic competitiveness on domestic and foreign markets. LAND AREA CLIMATE PAN-EUROPEAN CORRIDOR X PAN-EUROPEAN CORRIDOR X 2,448 km2 Continental (Salzburg - Ljubljana - Zagreb - Belgrade - INTERNATIONAL RAILWAY ROUTE Skopje - Thessaloniki) (European road E70, Munich – Ljubljana – Zagreb – Croatian motorway A3) Belgrade – Sofia CAPITAL GDP PER CAPITA (2015) Vukovar € 6,235 ADMINISTRATION UNEMPLOYMENT RATE (2016) PAN EUROPEAN CORRIDOR VII VICINITY OF OSIJEK 5 towns and 26 municipalities 29.7 % VUKOVAR RIVER PORT ON DANUBE INTERNATIONAL AIRPORT (24 km) POPULATION (EST. 2016) AVERAGE MONTHLY GROSS SALARY (2015) 165,799 € 863 4 5 Investment costs HUMAN CAPITAL 33% lower The human capital of Vukovar-Srijem County is than EU28 average internationally recognized for its expertise and productivity in agricultural production, food and wood AGE STRUCTURE THE LOWEST ELECTRICITY PRICES FOR processing. INDUSTRIAL USERS Education possibilities Secondary schools: 3 grammar schools, 9 technical schools and 4 other high schools. 16 % Higher education include 0-14 - Faculty of Agriculture in Osijek, Department Vinkovci - College of Applied Sciences “Lavoslav Ružička” in 18 % 15-64 66 % NATURAL GAS PRICES ARE AMONG Vukovar THE LOWEST IN EUROPE 65 and more Source: Croatian Bureau of Statistics, Population Estimates 2016 5 X LOWER AVERAGE MONTHLY GROSS SALARY THAN IN THE EU COST COMPETITIVENESS Labour costs, energy prices and infrastructure availability are significant factors for choosing the Vukovar-Srijem County as preferred investment location. ELECTRICITY PRICES FOR INDUSTRIAL CONSUMERS (€ PER KHW), 2017 S1 AVERAGE GROSS EARNINGS PER HOUR (€), 2015 PRICE LEVEL INDICES FOR INVESTMENT 2016 CROATIA VUKOVAR- SRIJEM SLOVENIA COUNTY CROATIA 67 % SLOVAKIA BULGARIA CROATIA POLAND EU 28 EUROPEAN EUROPEAN UNION (28 100 % CZECH REPUBLIC UNION (28 COUNTRIES) HUNGARY COUNTRIES) 0,00 0,01 0,02 0,03 0,04 0,05 0,06 0 5 10 15 20 25 0 20 40 60 80 100 Source: Eurostat 2018 (the last available data); 70 000 MWh < Consumption < 150 000 Mwh Source: Eurostat Total Labour Costs, Croatian Bureau of Statistics - Average Source: Eurostat 2017 Monthly Gross Earning, the latest available data 6 7 The most significant branches are THE MOST SIGNIFICANT food processing, metal industry, wood INTERNATIONAL INDUSTRIAL BRANCHES processing, chemical industry and BUSINESS ENVIRONMENT agriculture. The County is rich in natural resources such as wood, clay and gravel, oil and gas fields, and geothermal sources. Same Deutz-Fahr žetelice Ltd. Županja Same Deutz-Fahr žetelice Ltd. Županja manufactures harvesters and connecting devices. It is one of 11 Same-Deutz-Fahr subsidiaries in Europe and exports over Production of tractors and 95% of its total production. SDFŽ is the former Đuro Đaković agricultural machinery agricultural machines and equipment factory Županja acquired by SDF. Since 2006 until today SDF has invested over 38 million EUR in Croatia. Same-Deutz-Fahr (SDF) is one of the world’s leading manufacturers of tractors, harvesting machines and diesel engines. It distributes products through SAME, DEUTZ-FAHR, Lamborghini Trattori, Hürlimann and Grégoire. The company has its headquarters in North Italy, in Treviglio (BG). “Skilled and knowledgeable workforce is the main reason for investing in Croatia. This is why we continue to grow our business in the Republic Croatia.” Damir Kobaš, General Manager, Same Deutz-Fahr Žetelice Ltd. Same Deutz-Fahr factory Nexus Ltd. Cerna Manufacturing industries The core business is machining, manufacturing parts for welding machines, production tools and devices used in mechanical engineering and the automotive Metal industry industry. Food manufacturing industry 19% Machinery manufacturing industry Adriatica Dunav Ltd. Vukovar 6% 41.6% Wood processing industry Owned by Adriatica Spa Italy, Adriatica Dunav produces a wide range of Mineral 6.5% Fertilizers, NPK, PK, NP Formula, a lot of different Nitrogen Slow Release fertilizers, Chemical industry Chemical industry with high efficiency in respect of the environment. Its activity starts from a selection Production of fertilizers 13% Manufacture of other non-metalic of best raw materials, mixing and reaction, production, packaging services and 13.9% mineral products warehousing. The R&D of Adriatica continues to test new formulas, new ideas, with trials, and tests in many crops, in order to introduce special fertilizers to the Other market, more efficient and with respect of the environment. Source: Financial Agency of the Republic of Croatia, Croatian Chamber of Economy 2018 (data for 2016) 8 9 Furnir Otok Ltd. Otok PIK Vinkovci Inc. Vinkovci Wood processing industry with emphasis on different veneer products (oak veneer The company’s main activity is the primary production of agriculture crops, and oak boards). In its own veneer factory, the company produces boules rift, processing, drying and storage of cereals and oilseeds, processing of seed material, Food production boules crown and single bundles and offers veneering services. production of industrial plants, storage, processing and packaging of fruit and Wood processing vegetables, and cattle production. Primary agricultural and vegetable production boasts first-class farms on about 6,000 ha of land in the climatic region that is ideal for primary crops and vegetable production. The largest storage capacities in the region are in Vinkovci – 90,000 tons in silo and floor storages. PIK Vinkovci own storage facilities in Lipovac for onion and potatoes whose capacity is 12,000 tons. Spačva Inc. Vinkovci Cattle production takes place on three pig farms and one cattle farm. Production Spačva consists of five factories: sawmill, parquet production, final products is based on the best available technology according to the principles of good factory, veneer factory and bio-fuels factory. It employs 850 workers, which agricultural practice. Wood processing makes it one of the leading employers, both in Vinkovci and in the County. For the most part, the company exports to the European market, and its goal is an even stronger breakthrough in the export of finished products, primarily parquet floors, solid wood flooring and doors, and the production of bio-fuels, in whose facility considerable funds have recently been invested. Iločki podrumi Ltd. Ilok The core business of Iločki podrumi Ltd. is production of high quality wines from local varieties. The average annual production is around 4 million litres of wine. Beside wine-making, Iločki podrumi is a leader in the development of authentic and unique tourism and gastronomy potentials of the County, which is continuously Wine production Dilj Ltd. Vinkovci member of NEXE Group developing into an attractive wine tourism destination. The core business of Dilj Ltd. Vinkovci is production of clay roof tiles. We offer our customers the whole roof solutions in various colour palette. We have 95 years of Construction materials experience and have modernised our production to meet the trends in the roofing industry and markets. More than 65% of our production is exported. Each year our export rises as foreign markets have recognised our quality. Borovo Inc. Vukovar With its 630 employees, Borovo is the best-known shoe manufacturer in Croatia. Fashion industry Founded in 1931, with headquarters in Vukovar, during the past 87 years Borovo has built its identity not only in Croatia, but in the whole region by producing stylish, urban, sports and safety-working footwear. Beside production for its own retail network of 84 stores located in Croatia, Borovo still has free production capacities Yasenka Ltd. Vukovar for outside customers. As a state-owned company, Borovo Inc. is in the process Yasenka Ltd. is a company for the production of medicinal products, food of searching for a strategic partner who would be interested to invest in further supplements and cosmetics. It consists of a modernly equipped production plant, development of the company. Pharmaceuticals and laboratory for quality control and a warehouse constructed in accordance with the cosmetics current requirements which are applicable for the pharmaceutical industry. Pharmaceutical quality system
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