MEĐIMURJE COUNTY Investment profile MEĐiMURJE ... for success is not a coincidence table of contentS

BASIC INFORMATION 4

LOCATION 5

HUMAN CAPITAL 6

EDUCATION OPPORTUNITIES 6

COST COMPETITIVENESS 7

ECONOMY AND BUSINESS CHARACTERISTICS 8

DEVELOPED INDUSTRY 9

EMERGING SECTORS 9

MEĐIMURJE - WHERE THE WORLD’S FINEST MEETS THE CROATIAN FINEST 10

READY-MADE INVESTMENT LOCATIONS 13

ATTRACTIVE INVESTMENT INCENTIVES 17

LOCAL /REGIONAL INCENTIVES 17

QUAL ITY OF LIFE 18 BASIC INFORMATION LOCATION Did you know?

Being situated in the very north of , between One of the biggest advantages of Međimurje is Međimurje is the northernmost county in Croatia, rivers Mura and Drava, on both plains and hills, its geographical position in the northern part of also perceived as one of the most business-friendly Međimurje County has a great perspective for the Republic of Croatia bordering Hungary and counties with a number of business zones and further investment development. , in close vicinity to Austria, and excellent developed industry. Međimurje County was awarded traffic connection to the City of . 7th place in the Top 10 small Mursko Središće

regions for FDI strategy by the railway port fDi Magazine’s European Cities airport Čakovec Land area and Regions of the Future Awards 729 km2 2018/19 railway

Prelog road Capital Čakovec

Zagreb Population (est. 2016) INVEST IN MEĐIMURJE 112,089 FOR A REASON

Population density 156,73 inhabitants/km² People with an initiative, passion ! and focus on the goal

Average age 37.4 Stimulating business ! environment

GDP per capita (2015) Modern Good transport network Distance from European cities € 9,029 ! infrastructure zagreb 101 km graz 148 km E65 RIJEKA-ZAGREB-ČAKOVEC-BUDAPEST Unemployment rate (2016) vienna 224 km Suitable location 12.1 % ! budapest 260 km (crossroads) M20 ZAGREB-KRIŽEVCI-KOPRIVNICA-BUDAPEST salzburg 430 km M30 MARIBOR-VARAŽDIN-KOPRIVNICA-OSIJEK venezia 430 km Average monthly gross salary (2015) munich 570 km € 827 Balance and harmony ! ZAGREB INTERNATIONAL AIRPORT IN VICINITY milan 700 km of business and quality of life stuttgart 800 km

4 5 ELECTRICITY PRICES FOR INDUSTRIAL CONSUMERs COST (€ per khw), 2017 s1 Croatia COMPETITIVENESS Slovenia Slovakia

Bulgaria

Poland

EU 28

Czech Republic Investment costs Hungary 0,00 0,01 0,02 0,03 0,04 0,05 0,06

33% lower than Source: Eurostat 2018, the latest available data (70 000 MWh < Consumption < 150 000 MWh EU28 average

AVERAGE GROSS EARNINGS per hour (€), 2015

međimurje County Age Structure Cost competitiveness, in terms of initial HUMAN CAPITAL investment costs, utility prices and salaries is a significant advantage that qualifies Croatia Croatia The main advantage of Međimurje County are its people. Their and Međimurje County as an excellent productivity, flexibility and readiness to innovate are complimented, 16 % destination for expanding business activities, European without exception, by both domestic and foreign business people. increasing the market share and improving Union (28 17 % profitability. countries) 67 % 0 5 10 15 20 25 Did you know? Source: Eurostat Total Labour Costs, Croatian Bureau of Statistics - Average • The knowledge of languages in the region is one of its strong points: Monthly Gross Earning, the latest available data (2018) English, German and Italian are studied even from the preschool age. • Međimurje County has the highest share of entrepreneurs AMONG The lowest

with net profit among other counties in Croatia (74.1%). 0-15 16-64 65 and more electricity prices Source: Financial Agency of the Republic of Croatia for industrial users Source: Croatian Bureau of Statistics, PRICE LEVEL INDICES FOR INVESTMENT 2016 Population Estimates 2016, the latest available data in 2018 COMPETITIVE Croatia 67 % NATURAL GAS EDUCATION POSSIBILITIES PRICES

• Computer Engineering, Management of Tourism and Sports, and Sustainable Development - Polytechnic of European Međimurje Union (28 100 % countries) • Nursing - University of Osijek, School of Medicine, Department in Čakovec 4 x LOWER AVERAGE • Teacher Education Studies and Preschool Education Studies - Faculty of Teacher Education, Zagreb University, MONTHLY GROSS SALARY 0 20 40 60 80 Department in Čakovec THAN IN THE EU Source: Eurostat 2018

6 7 DEVELOPED INDUSTRY

Metal processing in Međimurje is not only an industry The textile and leather industry has played a big sector and a source of revenue but much more. role in the industrial development of Međimurje and still ECONOMY AND BUSINESS CHARACTERISTICS Experience, knowledge and skills of today have been represents a significant factor in the economy. Numerous gained by generations and made the metal industry one small local enterprises maintain their market position Međimurje region is characterized by developed manufacturing industry, especially metal, furniture and food of the most propulsive sectors of the local economy. in this highly competitive sector through innovation, industries, as well as clothes and rubber production. There are around 165 companies in the sector which, knowledge and flexibility. On the other hand, Međimurje is using modern technology, produce different components the home of many global textile and footwear companies Key economy sectors manufacturing and end-products, from small tools to railway wagons, that achieve the highest standards of productivity and in the county industries and export mainly into the countries of the EU. product quality.

2.2% Did you know: 98% of micro and small entrepreneurs 2.8% employ 57.3% of all employed workforce. 10.1% BOOMING SECTORS Source: Financial Agency of the Republic of Croatia 26.4% 27.3% 9% 53.9%

7.9% 22% 15% 8.7% 14.7%

Manufacturing industry Manufacture of fabricated metal products Wholesale and retail Furniture manufacturing industry Construction Food manufacturing industry Information and communication technology is a rather new, emerging sector in the Međimurje economy. Proactive Transport and storage Manufacture of machinery and equipment and ever more successful companies, offering a wide range of IT services and solutions, are keeping up with the global Agriculture, forestry and fishery Plastic and rubber industry trends, constantly improving their skills and pool of experts as well as opening new markets and opportunities. There Other Other is a system of business support for ICT in place, including Technology Innovation Centre Međimurje with a business Source: Financial Agency of the Republic of Croatia, Croatian Chamber of Source: Financial Agency of the Republic of Croatia, Croatian Chamber of Economy 2018 (data for 2016) Economy 2018 (data for 2016) incubator for IT start-ups and higher education institutions with relevant study programmes.

8 9 Centrometal Ltd. MEĐIMURJE - WHERE THE WORLD’S FINEST The leading Croatian thermo-technical equipment constructor which operates on 30 European markets. MEETS THE CROATIAN FINEST Centrometal Ltd has expertise in design and production of boilers (wood pellets, wood chips, solid fuel, oil/gas, combined), wood pellet stoves and thermo-stoves, accumulation tanks and boilers, as well as inox tanks. The company has its own training centre, testing station, a modern technological centre as well as very MANUFACTURE OF MACHINERY AND EQUIPMENT AND developed range of service centres. The emphasis in production is given to the use FABRICATED METAL PRODUCTS of renewable energy sources and its sustainable utilization.

FURNITURE PRODUCTION

EKO MEĐIMURJE Plc. EUROPEAN SUPPLIER FOR METAL PARTS AND WELDED CONSTRUCTIONS LPT ltd.

The company’s main activities are: Activities: Manufacture of various types of spring units for mattresses and furniture • manufacturing machine parts for construction machinery (cabin, fuel and oil as well as engineering production of machinery and equipment for mattresses tanks, hulls/chassis, staircases etc.), production. • manufacturing food industry plants (ovens for fresh pastry products, ovens for Newly built facility with a surface of 15.000 m2 in 2008 followed by a large expansion durable baked goods, cold storage for frozen or chilled foodstuffs, equipment in 2017. for the manufacture and storage of beverages), • manufacturing various boilers for heating, recycling plant parts and other metal structures according to the customer’s requirements Hilding Anders

Activities: Comfortable beds production Holds the 6th place in Međimurje County on the list of companies by their revenues (2015).

LTH ALUCAST ltd. Hilding Anders produces a variety of mattress, beds and furniture. It operates in Specialist for aluminium die-cast automotive components modern business and manufacturing premises, covering 42,000 m2, equipped with LTH Alucast Ltd. is a part of the group LTH Castings Ltd. Slovenia. The company is state-of-the-art technology, and currently employs 500 people. located in Čakovec and engaged in casting and processing of aluminium for the automotive industry. PLASTIC AND RUBBER INDUSTRY

MURAPLAST Tehnix Ltd. MURAPLAST is the leading and most modern producer of polyethylene blown The leading eco industry which produces devices and equipment for environmental film in Croatia and Southeast Europe. It operates in 5 production halls withan protection sold worldwide. annual production capacity of 22,000 tonnes and employs more than 230 people. Tehnix Ltd. develops projects and technology in waste-management and water The main product is extruded Polyethylene tubular blow film which is used for protection areas. It has 400 employees and offices in main European cities. The packaging various goods. company collaborates with a number of national and European environmental protection experts.

10 11 FOOD INDUSTRY READY-MADE Perutnina INVESTMENT LOCATIONS Perutnina Ptuj is a company which has, during more than 100 years of its history, developed into an international company specialized for poultry processing and Međimurje County provides a large number of business production. It is now among the biggest and most important meat processing industries in South-eastern Europe, with organized production in Slovenia, Croatia, zones with different sizes located on attractive locations. Serbia, and Bosnia and Herzegovina. The company has numerous certificates of reputable international institutions that confirm the highest quality. Since 1998, 51 ready-made Most of them are already active zones with successful the PP Group has acquired 12 standards and quality certificates. business zones The major company brand is POLI – an exceptionally recognized brand that became investment stories. and additional 7 a synonym for chicken sausage. in development

HYGIENE AND TEXTILE SOLUTIONS

CWS-boco

CWS-boco Čakovec is a part of the CWS-boco group and the leading international provider of professional and innovative hygiene and textile solutions. The facility in Čakovec is an industrial laundry service which currently employs 88 people. The ≈ 11 million technology used in a process enables high productivity and at the same time fully optimizes the use of water, energy sources and detergent use. square meters

BALLISTIC SECURITY EQUIPMENT

ŠESTAN-BUSCH

In the field of ballistic security equipment and biological-chemical protective items, Šestan Busch products meet and exceed the criteria for top quality of military products in the world. ŠESTAN-BUSCH Ltd has been producing antiballistic combat helmets for 20 years cost of land and in that period has developed 25 different types of helmets. Its products are starts from SELECTED BUSINESS ZONES sold in more than 50 countries on 4 continents. 5 €/m2 In addition to helmets, the company produces ballistic protection devices and Međimurje Business Park biological-chemical protection, as well as plastic parts for mines and explosives. Business Zone Goričica Business Zone Sveti Martin na Muri Prelog Sjever Economy Zone Business Zone

12 13 Međimurje Business Park Business Zone Goričica Business Zone Sveti Martin na Muri Business Zone Prelog Sjever

General information General information General information General information

Sveti Martin Location (city/municipality) Čakovec Location (city/municipality) Nedelišće Location (city/municipality) na Muri Location (city/municipality) Prelog

Zone area (m²) 784,922 Zone area (m²) 165,021 Zone area (m²) 220,000 Zone area (m²) 242,188

Available land area (m²) 102,624 Available land area (m²) 135,658 Available land area (m²) 80,000 Available land area (m²) 55,284

Production- Production- Production- Land purpose services Land purpose Production Land purpose services Land purpose services

Allowed construction density 0.5 Allowed construction density 0.6 Allowed construction density 0.4 Allowed construction density 0.6

Allowed construction efficiency coefficient 1.5 Allowed construction efficiency coefficient 1.5 Allowed construction efficiency coefficient 1 Allowed construction efficiency coefficient 1

Allowed construction height (m) 12 12 Allowed construction height (m) 12 17 Allowed construction height (m) 12 8.8 Allowed construction height (m) 12 12

Permitted noise (at the edge of the area, dB) 60 dB Permitted noise (at the edge of the area, dB) 60 dB Permitted noise (at the edge of the area, dB) 50 dB Permitted noise (at the edge of the area, dB) 60 dB

Capacity Capacity Capacity Capacity

Gas, Electricity, Water, Drainage The business zone is now partly infrastructurally equipped with Gas, Electricity, Water, Drainage Gas, Electricity, Water, Drainage water, gas, and electricity. Within the next year, construction works are planned to equip the zone completely. Located near the railway and road, this business zone has a competitive position. business zone sveti martin na muri

Mursko Središće Mursko Središće

međimurje business park Čakovec Čakovec

business zone prelog sjever business zone goričica Prelog Prelog

14 15 Business Zone Mala Subotica TAX

General information up to Location (city/municipality) Mala Subotica 0% profit tax rate ATTRACTIVE INVESTMENT INCENTIVES Zone area (m²) 151,964 INVESTMENT PROMOTION ACT

Available land area (m²) 23,763 Up to 45% of the investment cost can be Land purpose Production-services returned through various incentives

Allowed construction density 0.4 Up to € 1 million cash grant for capital costs of the investment project

Allowed construction efficiency coefficient 1 Up to 0% corporate profit tax for 10 years

Up to € 12,000 for each worker employed in Međimurje County Allowed construction height (m) 12 8

up to Up to € 0.5 million cash grant for investment in development and innovation activities Permitted noise (at the edge of the area, dB) 60 dB €12,000 EU funds available employment grants Capacity Guarantee scheme, up to 80% of investments, provided by the Croatian Gas, Electricity, Water, Drainage Agency for SMEs, Innovations and Investments (HAMAG-BICRO)

Subsidized business loan programmes by the Croatian Agency for SMEs, Innovations and Investments (HAMAG-BICRO) with interest rates starting from 0.5%

Subsidized business loan programmes (loan repayment up to 17 years) provided by the Croatian Bank for Reconstruction and Development (HBOR) Mursko Središće

up to LOCAL/REGIONAL INCENTIVES €1M grants for capital costs Possibility of exemption from payment of communal charges in certain cases

Possibility of exemption from paying communal contributions in certain cases

business zone Reduced municipality tax in case of employing inhabitants from the Čakovec mala subotica municipality where the business activity is conducted Possibility of paying communal contribution in instalments

Negotiable price of land for large investment projects

All necessary permits for construction obtained in a very short period (few days) in cases when all the prescribed documents have been submitted along with the application. Prelog up to €0.5M for R&D

16 17 Agency for Investments and Competitiveness THE GOVERNMENT AGENCY

• Professional service for investors, free of charge QUALITY OF LIFE • Highly motivated team of experienced professionals • Provides information, contacts and investment management support to potential investors as well as pre- and post- investment care …is graced by a specific blending of tradition and cultural heritage, Zdenko Lucić, Managing Director E: [email protected] patterned with different advantages of the modern way of life. A: Prilaz Gjure Deželića 7, HR-10000 Zagreb, Croatia T: +385 (0)1 6286 800 E: [email protected] W: www.aik.invest.hr

Međimurje is a recognizable REDEA Međimurje Regional Development Agency and competitive region for dynamic and healthy vacation. Project counselling service includes: • providing detailed information on human resources availability and their qualifications, investment locations Health, sport, enogastronomic, business and cultural tourism availability, basic costs and potential suppliers branches are developing. • identifying potential investment locations and organising site visits • establishing cooperation with representatives of local and regional government units and key stakeholders in resolving issues of work permits and incentives for investors • post-investment support for investors assisting investors in the successful implementation of subsidy measures

Bana Josipa Jelačića 22, 40000 Čakovec, Croatia T: +385 (0)40 395 560 F: +385 (0)40 395 142 E: [email protected] W: www.redea.hr

MEĐIMURJE COUNTY

Ruđera Boškovića 2 40000 Čakovec, Croatia By combining favourable social relationships and services, Did you know? T:+385 (0)40 374 111 safe environment, preserved ecosystem and cultural Međimurje County has achieved the significant F:+385 (0)40 374 269 resources, the region accomplishes a harmony between growth of tourist demand in last three years (25% E: [email protected] having a private life and a successful career. growth of arrivals and 33.6% in overnight stays) W: www.medjimurskazupanija.hr Source: Croatian Bureau of Statistics and Ministry of Tourism, 2018

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