FURNITURE INDUSTRY in the Opolskie Voivodeship Ladies and gentlemen, If you keep this informer in your hands, it means that you are interested in investing in the Opolskie Voivodeship. It’s a very good choice! Why? Not only because we have well prepared investment areas in many locations, well educated and prepared to work in various occupations people, a dense network of modernized or constantly ren- ovated roads or a highway perfectly communicating west and east. Also because we know how to make an advantage of the fact that we are the smallest region in Poland. Thanks to this, it is easier for us to make joint arrangements and activities to best support our entrepreneurs. We also know better the companies operating in our region, their specificity and thanks to that we more accurately select everything that is hidden under the concept of post-in- vestment service. And this is perhaps the most important thing: our support for companies never ends with your decision to invest in the Opolskie Voivodeship. Our philosophy of business-friendly region is implemented at every stage of your business activity. Therefore: we invite you to Opolskie! Andrzej Buła Marshal of the Opolskie Voivodeship 2 REGION 523€ gross (2250 PLN) Area: minimum wage in 2019. 9412 square kilometers 1178€ gross (5058 PLN) 986,000 average salary the number of inhabitants in the region Central Statistical Office of Poland, December 2018 Central Statistical Office of Poland, May 2019 million 5.7% 8.5 unemployment rate unemployed registered population within 150 km 20 700 Central Statistical Office of Central Statistical Office of Poland, May 2019 Poland, December 2018 334,000 inhabitants in the Opole Agglomeration The Agglomeration Opole Trust, 2018 r. * more on page 8 & 9 3 Norway Sweden Estonia 0 KM 100 Latvia Russia KM Denmark 500 Lithuania Belarus Ireland KM 300 United Kingdom Netherlands Poland LOCATION Belgium Germany Ukraine A4 Czech Republic A1 Slovakia Moldova Austria Hungary France Switzerland Romania Slovenia Croatia Bosnia and Serbia Harzegovina Bulgaria Italy Montenegro Portugal Macedonia Turkey Spain Albania Greece pomorskie warmińsko-mazurskie Distance and travel DISTANCE BY CAR zachodniopomorskie duration from Opole (km) (h) kujawsko- podlaskie pomorskie CZECH REPUBLIC 45 00:40 mazowieckie GERMANY 240 02:20 wielkopolskie PRAGUE 300 04:01 lubuskie WARSAW 315 03:50 łódzkie BERLIN 420 04:09 dolnośląskie lubelskie BRATISLAVA 440 04:17 świętokrzyskie VIENNA 450 05:02 opolskie LVIV 530 06:30 śląskie podkarpackie małopolskie Distance and travel DISTANCE BY CAR BY TRAIN duration to polish (km) (h) (h) cities Opole WROCŁAW 97 01:05 00:55 KATOWICE 113 01:24 01:13 KRAKÓW 188 01:53 04:03 ŁÓDŹ 185 02:53 05:00 POZNAŃ 269 03:34 03:11 WARSZAWA 315 03:50 02:52 4 1hour up to 2 air- TRANSPORT 3 hours ports offering in- to Warszawa ternational flights (Train) from Katowice and from Wrocław WIELKOPOLSKIE ŁÓDZKIE Wrocław 1 h | 97 km from Opole DOLNOŚLĄSKIE Gliwice-Sośnica Katowice 1h | 113 km ŚLĄSKIE CZECH REPUBLIC A4 MotorwayAutostrada Kraków 2h | 188 km 11 NationalDroga krajowa road 408 Droga wojewódzka Voivodeship roads Ostrawa (CZ) Węzeł autostradowy 2h | 120 km Motorway junctions 5 HR Human capital The labour market in Poland and the opolskie region is characterised by high productivity and low labour costs. According to Eurostat, the cost of working hours in Poland is estimated at 10.1 EUR, while the average for the whole EU is EUR 27.4 and the euro zone itself - EUR 30.6. namysłowski kluczborski Poland oleski 5,5% EDUCATION in Opolskie brzeski opolski 19,635 university students, Opole opolskie 6 203 students of the technological strzelecki and engineering faculties 5,7% nyski krapkowicki 18 092 pupils in vocational and technical schools prudnicki kędzierzyńsko-kozielski 6 universities Education within 150 km from głubczycki Opole 2% 260,000 university students Czech Republic 68 339 students of the technologi- cal and engineering faculties 2 – 4,1 Unemployment rate in Opolskie (in %) 4,2 – 6,2 135 260 pupils in vocational and 6,3 – 7,8 technical schools 7,9 – 9,6 4 universities listed in the TOP 20 ranking Source: Central Statistical Office of Poland, Czech Statistical Office, Voivodeship Labour Office in Opole, May 2019 (Central Statistical Office of Poland, December 2018)6 Map of average gross wages in Poland HR pomorskie: 5459 PLN (1270 €) warmińsko-mazurskie: 4070 PLN zachodniopomorskie: (947 €) 4638 PLN (1077 €) podlaskie: kujawsko-pomorskie: 4292 PLN 4487 PLN (998 €) (1043 €) mazowieckie: lubuskie: wielkopolskie: 6311 PLN (1468 €) 4323 PLN 4671 PLN (1005 €) (1086 €) łódzkie: 4568 PLN (1062 €) lubelskie: dolnośląskie: 5203 PLN 4179 PLN (972 €) (1210 €) świętokrzyskie: opolskie: śląskie: 4553 PLN 4253 PLN (1059 €) 5114 PLN (989 €) (1189 €) podkarpackie: małopolskie: 4218 PLN (981 €) 5264 PLN Source: Central Statistical (1224 €) Office of Poland, 2019 Opolskie Voivodeship: 8th place in the “Strategy for acquiring foreign direct investment in small European regions (less than 1.5 million inhabitants). according to fDI Magazine (2018) 7 Polish Investment Zone namysłowski kluczborski oleski brzeski opolski INCENTIVES Opole Wałbrzych Special Economic Zone strzelecki “Invest-Park” nyski krapkowicki Katowice Special prudnicki Economic Zone kędzierzyńsko-kozielski głubczycki Quantitative criteria Eligible costs (million/PLN) Quantitative criteria The unemployment Big (industrial Big (modern Medium Small Micro rate in a given county project) services) < 60% Investment costs (investment expenses or two-year work cost) > 100 > 5 > 20 > 5 > 2 depend on: • Unemployment rates in the county proper for the place of (60%; 100%) > 80 > 4 > 16 > 4 > 1,6 investment (compared to the average unemployment rate in the country) (100%; 130%) > 60 > 3 > 12 > 3 > 1,2 • The size of the enterprise (130%; 160%) > 40 > 2 > 8 > 2 > 0,8 In the case of investments in the field of modern services for busi- ness and SME conditions for eligible costs is decreased by: • 98% (micro entrepreneurs), (160%; 200%) > 20 > 1 > 4 > 1 > 0,4 • 95% (small entrepreneurs), • 80% (medium entrepreneurs), (200%; 250%) > 15 > 0,75 > 3 > 0,75 > 0,3 • 95% (modern services). > 250% > 10% > 0,5 > 2 > 0,5 > 0,2 Quality criteria The minimum number of points to get decision on support in the Opolskie province is 5 points. Maximum number of points = 10. Industrial project * / Investment project from the business services sector ** Sustainable economic development (5 points) Sustainable social development (5 points) • Investment in projects supporting industries compat- • Setting up high-paying jobs and offering stable employ- ible with the current development policy of the coun- ment, try in which Poland can gain a competitive advantage, • Running a business with low negative impact on the en- • Achieving an appropriate level of sales outside the vironment, territory of Poland, • Locating investments in a city that loses its socio-eco- • Membership in the National Key Cluster *, nomic functions or a municipality bordering with it, or in • Running research and development, a county where the unemployment rate is at least 160% • Establishment of a modern business services centre of the average unemployment rate in the country (ex- with a range that goes beyond the territory of Poland, cluding cities in which the province governor or regional ** council head office is located), • Having a micro-enterprise or SME status. • Supporting the acquisition of education and profes- sional qualifications and cooperation with vocational schools, • Taking action in the field of employee care. 8 INCENTIVES Wałbrzych Special Economic Zone Katowice Special Economic Zone “INVEST-PARK” 1996 - foundation year 1997 - foundation year 2749 ha - area 3774 ha - area 390 - the number of investors 220 - the number of investors 80,000 - new jobs 53 500 - new jobs PLN 36 billion - invested capital PLN 27 billion - invested capital ksse.com.pl invest-park.com.pl The amount of tax reliefs MICRO SMALL MEDIUM BIG ENTERPRISE ENTERPRISE ENTERPRISE ENTERPRISE EMPLOYED <10 EMPLOYED <50 EMPLOYED <250 EMPLOYERS ≥ 250 TURNOVER ≤ EUR 2 MILLION TURNOVER ≤ EUR 10 MILLION TURNOVER ≤ EUR 50 MILLION TURNOVER> EUR 50 MILLION ANNUAL BALANCE ≤ EUR 2 ANNUAL BALANCE ≤ EUR 10 ANNUAL BALANCE ≤ EUR 43 ANNUAL BALANCE> EUR 43 MILLION MILLION MILLION MILLION TAX RELIEF Voivodeship Opolskie Voivodeship Opolskie Voivodeship Opolskie Voivodeship Opolskie e.g., Śląskie and Voivodeship e.g., Śląskie and Voivodeship e.g., Śląskie and Voivodeship e.g., Śląskie and Voivodeship Dolnośląskie Dolnośląskie Dolnośląskie Dolnośląskie 45% 55% 45% 55% 35% 45% do 25% do 35% INVESTMENT COSTS OR TWO-YEAR WORKING COSTS CIT INCOME TAX RELIEF Tax relief period 12 years for investments located in areas with an intensity of public aid amounting to 35% Source: www.invest-park.com.pl, www.ksse.com.pl, June 2019 9 Furniture sector in the Opolskie Voivodeship Furniture industry is an important pillar of Polish exports. In 2017 Polish manufacturers of furniture registered exports in the amount of 11,4 mld € achieving market share in the furniture market in the EU at the level of 9.5%. This result allowed Polish furniture companies to take the 3rd position under by value of furniture produced in the EU. One of the key centres of domestic furniture industry is located in Opolskie voivodeship. Local traditions of furniture manufacturing go backward 200 years. One can here find family-managed companies that have been in the business since several generations. Located 45 km from Opole, the small town of Dobrodzień is regarded as the regional industry centre and is recognizable not only in Poland but also in Europe. Companies such as Kler, Lissy, Mebel Rust and DES have their operations here. Dobroteka also operates in Dobrodzień – selling products of several local brands under one roof and in the same time running R&D activity in the field of interior design. Dobroteka is an example of successful cooperation of local furniture manufacturers, contributing to the growth and recognition of this key sector of Opolskie voivodeship.