VALENCIAN REGION THE BEST BET TABLE OF CONTENTS Why invest in the Valencian Region? 5 01 General data and economic trend in Spain 7 02 Foreign investment in Spain 9 03 General data and economic trend in the Valencian Region 11 04 Foreign investment in the Valencian Region 13 05 Key factors for investing in the Valencian Region 15 5.1 Location 16 5.2 Human capital 18 5.3 Diversified industrial base 20 5.4 Business opportunities 22 5.5 Quality of life 24 5.6 Institutional support 26 06 Investor support: INVEST-CV 29 Contact information 33 4 Why invest in the Valencian Region? • Because the Valencian Region is a land of opportunity, resources and strengths that favour investment. • Because the Valencian Region is a highly-competitive, enterprising and innovative region that stands out from other regions. • Because the Valencian Region is strategically located, has well-developed infrastructure, and offers expert training, culture and quality of life and business. • Because our past, the legacy of diverse cultures, a tradition of industrial development and export capacity has brought together present consolidation and a future of growth and stability. • Because the Valencian Region offers investors all this and a dynamic, open and modern character. Because the Valencian Region is the best investment. 5 The growth forecast for 2015 is 2.2%, which is higher than Germany and France 6 01 General data and economic trend in Spain Spain is the fourth-largest country in Europe and has the 13th-largest economy in the world. It is very much a multicultural region and contributes to the creation of a unique identity, ‘Brand Spain’, characterised by design, creativity and hard work. In 2014, growth emphatically returned to Spain with figures that have not only confirmed various international organisations’ forecasts but exceeded them. It is the Eurozone country whose GDP grew fastest in the second quarter at a year-on-year rate of 1.4%. This is particularly praiseworthy when compared with stagnation in the Eurozone and even recessions in Italy and France. The revised forecasts for 2015 are again positive. Spain is set to lead Eurozone GDP growth at a rate of 2.2%, ahead of Germany, France and Italy. Spanish exports, which now exceed €140 billion, are enjoying a new golden age, driven mainly by the motor industry, food and consumer goods manufacturing. Spain is at the forefront of renewable energies in terms of both production and management, as well as development of environmental, high-speed, motor industry, transport, logistics, IT, communication and healthcare technologies, thanks to the experience built up in its national health system and the encouragement of industries such as biotech. 7 Spain: an attractive place for foreign investment 8 02 Foreign investment in Spain Spain is back on the growth path and has positioned itself again as an attractive destination for foreign investment. Reforms undertaken in recent years notably include making the labour market more flexible. A large pool of qualified professionals, innovation policies, and a favourable RDI tax system, plus the existence of high-tech infrastructure and companies, are just some of the economic attractions for investment. The Support for Entrepreneurs and International Expansion Act 14/2013 of 27 September is notable in having a section dedicated to residence permits for foreign investors. Spain is the country with the 9th-highest Foreign Direct Investment (according to UNCTAD’s latest report, World Investment Report 2014). The main countries investment flows in from are: Germany, France, the United Kingdom, the Netherlands, Italy and Switzerland. 9 10 03 General data and economic trend in the Valencian Region It is the 4th Spanish region in terms of GDP (10% of the total) and population with 5.1 million inhabitants. It is of key importance to the Spanish economy due to the large size of some industries, such as tourism, the motor industry, plastics, chemicals and food and agriculture. With 1.3% GDP growth in 2014 and a foreseeable 2.4% in 2015, growth in the Valencian Region is speeding up. The region stands out as one of the most stable regions in legal, political and social terms. It is also necessary to stress its connection with the Mediterranean and Spain’s capital city through efficient infrastructure enabling it to be a point of connection between Europe and the world. The region is clearly focused on international markets and its openness to foreign trade is above the WTO average (46%). The Valencian Region is among the top 4 exporting regions in Spain. It is the region where exports have grown at the fastest rates (9.7% each year since 2012) mainly thanks to the diversity of target markets, with growing share among emerging economies rather than the EU, and increased specialisation of exports (motor industry, ceramic products, fruit and vegetables). It is not only foreign markets that are driving the region’s economy forward: the increase in domestic demand is also benefiting from greater economic certainty, stabilisation of the property market, a resurgence of private consumption, an increase in financial wealth and falling unemployment. All these aspects have brought about a real and tangible recovery in the Valencian Region. Main data for the Valencian Region 11 12 04 Foreign investment in the Valencian Region The Valencian Region offers economic and geostrategic factors, infrastructure and quality of life, among other aspects, which have attracted foreign investment into the region over the years. More than 11,000 foreign companies have set up in the Valencian Region, 800 of which are industrial companies wholly-owned by foreign investors. Ford, UBE Industries, CETCO Spain, Vossloh, BP Oil, IKEA, ArcelorMittal, Roquette, Plastic Omnium, Hasbro, Mediterranean Shipping Company and Hewlett-Packard are just some of the foreign countries that have placed their trust in our region rather than others in Spain and Europe. The largest investor countries in order of size in the region are: Germany, Italy, France, the United Kingdom, the Netherlands and Switzerland. 13 14 05 Key factors for investing in the Valencian Region 5.1 LOCATION: 5.4 BUSINESS OPPORTUNITIES: • Logistic hub • Numerous industries to invest in • Well-developed infrastructure • Industries that drive investment • Gateway to Europe • Strategic industries 5.2 HUMAN CAPITAL: 5.5 QUALITY OF LIFE: • Extensive training • Excellent climate • Low staff turnover • Mediterranean cuisine • Highly competitive salary costs • Political stability 5.3 DIVERSIFIED INDUSTRIAL BASE: 5.6 INSTITUTIONAL SUPPORT: • Strong support for RDI • Speeding up bureaucracy • Strong network of supplier companies • Aid and incentives • High volume of patents registered • Advising investors on the path to follow 15 5.1 LOCATION The Valencian Region has an exceptional geostrategic position in the middle of the Western Medite- rranean Arch. This provides quick access to both the national and European markets and makes it a true logistic hub in the South of Europe. The port joins North Africa and Europe and is a key link with Latin America, with which we have strong historical and cultural connections. It has excellent transport connections through an extensive network of quality motorways and rai- lways and well-developed infrastructure providing an ideal platform for businesses looking to sell outside the region. Infrastructure in the Valencian Region Port system in the Valencian Region: there are 5 ports in the region: Castellon, Alicante, and Sagun- to, Valencia and Gandia, grouped together as ValenciaPort. ValenciaPort is the largest commercial port in Spain and the Mediterranean, the 5th-largest in Europe and the 31st-largest in the world in terms of the number of containers handled. It is the natural port for the capital city, Madrid and inland cities such as Saragossa. As a logistic hub with 140 shipping lines it can efficiently distribute goods within a radius of 2,000 kilometres, reaching 243 million consumers. Alicante Port ships to North Africa, the Balearic Islands and the Canary Islands. It is also the emerging natural port for industrial exports from Alicante. Castellon Port stands out as the epicentre for exports from the chemical and ceramics industries. Expanded facilities, increased shipping lines, improved indoor infrastructure and active commercial efforts have contributed to maximising its performance in recent years. 16 05 Road network: the Valencian Region is connected by road to the rest of Spain and Europe through a network of fast roads. One notable example is the A-3 which reaches Madrid in 3.5 hours and from there links up with the rest of the motorways connecting all of the other major Spanish cities. The A-7 (E-15) crosses the Valencian Region along the Spanish Mediterranean connecting France with Algeciras. The approximate distance from Valencia to France is 500 km and takes an average of 5 hours. Railways: we have excellent railway connections for passengers and goods. Spain is the country with the 2nd-longest high-speed railway network in the world, a total of 2,230 km. The AVE (Spanish high-speed trains) connects Valencia and Alicante to Madrid. Travel time to the Spanish capital is 100 and 150 minutes, respectively. The Valencian Region is part of the Mediterranean Corridor, the main railway from France to Murcia. It is used by local, medium-distance and long-distance passenger trains and goods trains. The so-called Third Line is now reality; it allows international gauge rolling stock to travel at a speed of more than 200 km/h on intercity stretches and is part of the so-called European D corridor connecting Valencia with Budapest. It is also part of the Cantabria-Mediterranean Corridor, which improves connections between Valen- cia and Aragon and the Bay of Biscay, and strengthens connections between the ports of Sagunto, Valencia and Bilbao. Air connection: we now have 3 international airports located in Alicante (El Altet), Valencia (Manises) and Castellon.