GILD YOUR INVESTMENT IN THE GOLDEN VALLEY

POzEGA- COUNTY, table of content pozega-slavonia county

01 | basic indicators 4

02 | LOCATION 5

03 | HUMAN CAPITAL 6

04 | COST COMPETITIVEness 8

05 | INDUSTRIAL TRADITION 9

06 | INTERNATIONAL BUSINESS ENVIRONMENT 10

07 | READY–MADE INVESTMENT LOCATIONS 11

08 | ATTRACTIVE INVESTMENT INCENTIVES 17

09 | ADDITIONAL INCENTIVES 17

10 | DID YOU KNOW? INTERESTING FACTS 18 GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County basic indicators LOCATION

Požega-Slavonia County, also called Golden County (Vallis Aurea), is located in continental Croatia in the north-eastern Požega-Slavonia County is a county with a very favourable part of the Republic of Croatia. location between Hungarian and Bosnian-Herzegovinian borders. The County has long industrial tradition, and it is also famous by its wine production. 3h

Excellent road infrastructure and rail links ensure that 2h many EU and CEFTA markets can be serviced in 24-hours 1h or less: for example, Budapest (330 km), Vienna (550 km), Munich (730 km). Border with is 85 km, Land area Climate 70 km and only 35 km away from 2 1,815.23 km Continental the County seat.

Capital GDP per capita (2015) Požega € 6,061

Administration Unemployment rate (2016) 5 towns and 5 municipalities Zagreb (towns: Požega, , , , , 22.8 % municipalities: Velika, Jakšić, Kaptol, Brestovac, Čaglin)

Population (est. 2016) Average monthly gross salary (2015) PAN EUROPEAN CORRIDOR 10 71,920 € 862 (Salzburg – Ljubljana – Zagreb – Požega-Slavonia – Skopje – Thessaloniki) County

REGIONAL HIGHLIGHTS INTERNATIONAL RAILWAY ROUTE Munich – Ljubljana – Zagreb YOUNG AND EDUCATED WORKFORCE – Belgrade – Sofia

TRADITION IN FOOD-PROCESSING, MANUFACTURING INDUSTRY Kutjevo Pakrac AND AGRICULTURAL PRODUCTION Lipik

COST COMPETITIVE Požega VICINITY of INTERNATIONAL AIRPORT Pleternica (120 km) and ZAGREB INTERNATIONAL AIRPORT (180 km)

4 5 GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County

DID YOU KNOW? HUMAN Požega-Slavonia County employs 40.5% CAPITAL of employees in manufacturing, which generates 29.4% of total revenue.

The educational institutions: Source: Financial Agency of the Republic of Croatia (FINA)

Polytechnics in Požega (Accounting, Commerce, Administration, Viticulture-Oenology-Pomology, The County workforce is experienced, highly Food Technology and Trade Business), motivated and has a long tradition of University of Applied Health Studies Zagreb – Study Program of Physiotherapy in Pakrac excellence in education particularly in the Eight secondary schools, with various programs fields of food production, metal and wood processing.

Age Structure in Požega-Slavonia County

15 % 0-14

18 % 15-64 67 %

65 and more

Source: Croatian Bureau of Statistics, Population Estimates 2016

6 7 GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County

COST COMPETITIVEness INDUSTRIAL DID YOU KNOW? TRADITION The first data on glass production in Lipik area were recorded in 1803. Today LIPIK GLASS produces car glass for Bentley Motors, Aston Požega-Slavonia County has a long industrial tradition, ELECTRICITY PRICES FOR INDUSTRIAL CONSUMERs Martin, McLaren, Lamborghini, Ferrari and Alfa (€ per khw), 2017 s1 particularly in the fields of , glass production, furniture production and metal processing. Romeo. The lowest electricity prices for Croatia industrial users

Slovakia wood processing food processing

Natural gas prices are among Bulgaria

the lowest in Europe Poland

EU 28

Czech Republic 5x LOWER AVERAGE MONTHLY GROSS SALARY THAN IN THE EU Hungary 0,00 0,01 0,02 0,03 0,04 0,05 0,06 Source: Eurostat 2018; 70 000 MWh < Consumption < 150 000 Mwh

SPINVALIS Zvečevo Plc., the chocolate factory since 1936. AVERAGE GROSS EARNINGS per hour (€), 2015 Production of modern furniture from genuine Today it produces a range of high-quality chocolate Slavonian wood, coated in natural, environmentally bars, premium chocolate, pralines as well as spirits, Požega- friendly bio oil. liquers and brandies. Slavonia Investment costs County

33% lower Croatia

European than EU28 average Union (28 countries) fashion industry production of heating appliances

0 5 10 15 20 25 Source: Eurostat Total Labour Costs, 2018; Croatian Bureau of Statistics, 2018

PRICE LEVEL INDICES FOR INVESTMENT 2016

Croatia 67 %

Orljava Ltd. is a company which produces high - PLAMEN Ltd. - 90-year tradition in the manufacture quality men’s shirts for all occasions. of cast iron parts and final products, today one of the largest foundries and manufacturers of household European heating appliances in the Republic of Croatia. Union (28 100 % countries)

0 20 40 60 80 100

Source: Eurostat 2018

8 9 GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County the BUSINESS ENVIRONMENT Success stories

Kutjevo is one of the largest wine producers in Croatia. It’s grape and wine production has written history of almost 800 years. Today Kutjevo owns about READY–MADE 1150 ha of modern vineyards located on the same world’s geographical latitude as many distinguished vineyards such as Piemont and Bordeaux. The supreme INVESTMENT quality of Kutjevo wines is confirmed year after year by prestigious awards won at international and domestic wine competitions. LOCATIONS Production of wine

Business Zone PLETERNICA, Pleternica

Business Zone INDUSTRIJSKA ULICA SJEVER, Požega The company has been producing glass since 1963 and has been in majority ownership of Italian Finind Group. After two years or restructuring, the company Business Zone KAMENJAČA, Kutjevo started production of high-performance car glass for low-series, high-budget vehicles. Today the Lipik Glas is a world leader in providing car glass to brands Production of car glass such as Bentley, Lamborghini, Mc Laren etc. Business Zone LIPIK II, Lipik

“Our goal is to create the products of the highest quality for road safety, which includes our two brands: DLEDS for LED lighting and DPOWER for LED signalization. We have selected the city of Pakrac as a centre of our CEE operations, because of perfect ratio of manpower availability, growth potential and good support from the local government.” 10 ready-made ≈ 3 million Price of land starts Production of LED optics and Giorgio Durin, Director of Detas Group, lightning projects business zones square meters from 0,13 €/m2

10 11 GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County

Business Zone Pleternica, Pleternica Business Zone Industrijska ulica Sjever, Požega

General information Infrastructure/energents capacity General information Infrastructure/energents capacity

Location (city/municipality) Pleternica Infrastructure/energents capacity Availability Location (city/municipality) Požega Infrastructure/energents capacity Availability

Size of the zone (m²) 1,645,000 Gas Yes Size of the zone (m²) 358,326 Gas No

Available land size (m²) 619,700 Electricity Yes Available land size (m²) 47,545 Electricity Yes

Production and Construction purpose Manufacturing Water Yes Construction purpose Water Yes service

Allowed construction density 0.6 Sewage Yes Allowed construction density 0.5 Sewage Yes

Construction efficiency coefficient allowed 1.8 Construction efficiency coefficient allowed 1.8

Allowed construction height (m) 21 Allowed construction height (m) 15

Pakrac Kutjevo Pakrac Kutjevo

Lipik Lipik

Požega Požega Pleternica Pleternica

Zagreb Zagreb

12 13 GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County

Business Zone Kamenjača, Kutjevo Business Zone II, LIPIK

General information Infrastructure/energents capacity General information Infrastructure/energents capacity

Location (city/municipality) Kutjevo Infrastructure/energents capacity Availability Location (city/municipality) Lipik Infrastructure/energents capacity Availability

Size of the zone (m²) 226,968 Gas Yes Size of the zone (m²) 169,605 Gas Yes

Available land size (m²) 13,448 Electricity Yes Available land size (m²) 95,846 Electricity Yes

Manufacturing and Manufacturing and Construction purpose Water Yes Construction purpose Water Yes services services

Allowed construction density 0.64 Sewage Yes Allowed construction density 0.8 Sewage Yes

Construction efficiency coefficient allowed 1.16 Construction efficiency coefficient allowed 0.9

Allowed construction height (m) 15 Allowed construction height (m) 15

Pakrac Kutjevo Pakrac Kutjevo

Lipik Lipik

Požega Požega Pleternica Pleternica

Zagreb Zagreb

14 15 GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County

Other Available Zones Attractive investment ADDITIONAL incentives INCENTIVES • Business Zone “Svetenica”, Velika, 211,200 m2 • Business Zone “Novi Bešinci”, Kaptol, 130,000 m2 • Business Zone “Čaglin”, Čaglin, 19,758 m2 • SME Zone Pakrac, Pakrac, 540,000 m2 • Business Zone “Jakšić”, Jakšić, 169, 605 m2 • Zone Pakrac 5 – for service and trade activities, Pakrac, 172, 400 m2 Up to 1 million € cash grant for capital cost of the Požega-Slavonia County strongly supports investments. investment projects With the aim of stimulating investments in manufacturing Up to 0% corporate profit tax for 10 years sector activities, technology centres, strategic business support and high value-added services as well as tourist Up to 18,000 € for each new employee SME ZONE Pakrac activities, investors are offered various incentives, Up to 0.5 million € cash grant for investment in zone pakrac 5 BZ SVETENICA especially in business zones: Pakrac Kutjevo development and innovation activities BZ NOVI BEŠINCI • Relief in the form of reduction/exemption of payment Lipik EU funds available BZ ČAGLIN of municipal contributions BZ JAKŠIĆ Guarantee scheme, up to 80% of investments, • Exemptions from utility contributions and Požega provided by Croatian Agency for SMEs, Innovations and compensations (3-4 years) Pleternica Investments (HAMAG-BICRO) • Lower costs of connection to utility infrastructure Business loans programs by Croatian Agency for SMEs, Innovations and Investments (HAMAG-BICRO) • Exemptions from local taxes Zagreb with interest rates starting from 0.5%) • Lower price of land Subsidized business loans programs; loan • Employment and self-employment incentives repayment up to 17 years, provided by Croatian Bank of Reconstruction and Development (HBOR). • Majority of local governments have the assisted area status, which gives possibilities of further benefits.

Up to 45% of the investment cost return through various incentives Supporting Institutions for Entrepreneurs

Lipik Development and Tourist Agency LIRA, including the Entrepreneurship Incubator Donji Čaglić www.liralipik.com

Entrepreneurship Centre Pakrac, including the Entrepreneurship Incubator Pakrac www.pc-pakrac.hr TAX

Entrepreneurship Centre Pleternica, including the Entrepreneurship Incubator Pleternica www.plink.hr up to up to up to up to Town of Kutjevo Development Agency – ERA (European Development Agency) 0% €18,000 €1M €0.5M www.kutjevo.hr profit tax rate employment grants grants for capital costs for R&D Regional Development Agency of Požega – Slavonia County – PANORA Ltd. www.panora.hr

16 17 GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County GILD YOUR INVESTMENT IN THE GOLDEN VALLEY – INVEST IN Požega-Slavonia County

Agency for Investments and Competitiveness THE GOVERNMENT AGENCY

· Professional service for investors, free of charge · Highly motivated team of experienced professionals · Provides information, contacts and investment management support to potential investors as well as pre- and DID YOU KNOW? post- investment care

INTERESTING FACTS ABOUT Zdenko Lucić, Managing Director Požega-Slavonia COUNTY E: [email protected]

A: Prilaz Gjure Deželića 7, HR-10000 Zagreb, Croatia T: +385 (0)1 6286 800 E: [email protected] W: www.aik.invest.hr

KUTJEVO CELLAR Požega-Slavonia COUNTY Kutjevo Cellar, a wine cellar dates back to a Županijska 7 former 13th century Cistercian monastery. 34000 Požega, Croatia T: +385 34 290 290 W: www.pszupanija.hr

Regional Development Agency of Požega-Slavonia County – PANORA Ltd.

- Established by Požega-Slavonia County and registered in the Ministry responsible for regional development as ZVEČEVO RICE CHOCOLATE Regional development coordinator for the County to support sustainable economic growth and development of the County Zvečevo invented the rice chocolate in 1964, Panora’s business policy is to: at that time absolutely illogical mixture of • Assist foreign and domestic investors in establishing or expanding their businesses – at every stage of the process chocolate and puffed rice. (pre- and post- investment care) Mikado – the Japanese earthly and heavenly • Provide high quality service on time • Treat information confidentially ruler will always be the synonym for chocolate • Provide the relationship with respect and courtesy with rice; food for people and gods. Županijska 7, 34000 Požega, Croatia E: [email protected] E: [email protected] T: +385 (0)34 290 215 F: +385 (0)34 290 243 W: www.panora.hr Senka Horvat, M.D.Econ., director Anton Devčić, Ph.D.Econ, project team leader

18 19