harvest profits in odžaci west-bačka district

investinodzaci.rs
INVEST IN SERBIA
HARVEST PROFITS IN ODŽACI
WEST-BAČKA DISTRICT
Project implemented by NALED
National Alliance for Local Economic Development - NALED
30/VII Makedonska Street, 11000 Belgrade, Serbia
+381 11 33 73 063, +381 11 33 73 061 (fax)
[email protected]
www.naled-serbia.org
Project funded by EU
Riga
Copenhagen
Vilnius
Minsk
Hamburg
Berlin
Warsaw
Municipality of Odžaci
24 Knez Mihajlova Street
25250 Odžaci, Serbia
+381 25 466 032
[email protected]
[email protected]
investinodzaci.rs
Kiev
Frankfurt
Prague
Stuttgart
Vienna
Munich
Zürich
Salzburg
Bratislava
Budapest
Ljubljana
Zagreb
Milan
Odžaci - West-Baèka District
Bucharest
Belgrade
Project funded by EU
Sarajevo
This publication has been produced with the assistance of the European Union.
The contents of this publication are the sole responsibility of NALED and can in no way be taken to
reflect the views of the European Union.
Sofia
Skopje
Rome
Istanbul
Tirana
Thessaloniki
FREE TRADE AREA
Igoumenitsa
CEFTA – The Central European Free Trade Agreement – 30 million consumers
EFTA – The European Free Trade Association – 13 million consumers
Athens
Russia – The only country outside CIS that has FTA with Russia – 142 million consumers
EU – Preferential status – 502 million consumers
Turkey – Free Trade Agreement – 72 million consumers
Belarus – Free Trade Agreement – 10 million consumers
Kazakhstan – Free Trade Agreement – 15.5 million consumers
USA – Preferential status – 317 million consumers
The European Union is made up of 28 Member States who have decided to gradually link together
their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they
have built a zone of stability, democracy and sustainable development whilst maintaining cultural
diversity, tolerance and individual freedoms. The European Union is committed to sharing its
achievements and its values with countries and peoples beyond its borders.
The European Commission is the EU’s executive body.
EU CBC IP - Cross-Border Cooperation for Investment Promotion is a two-year project which has been
implemented from June 2012 in Serbia and Croatia by NALED and Municipality of Gradiste in partnership
with Municipality of Lovas, City of Ilok, TINTL, Municipality of Odžaci and Municipality of Kula.
TOP 5 REASONS TO INVEST IN SERBIA
1
Strategic location in the heart of South East Europe
Serbia is bordering the EU and several emerging
markets, located at the crossroad of European corridors,
highways (E70, E75, E80) and the Danube river
2
Duty-free access to global markets of 1 billion consumers
Serbia has preferential and free trade agreements
with Russia, Belarus, Kazakhstan, Turkey, EU, USA, as
well as CEFTA and EFTA countries
3
Favorable tax regime
Tax rates in Serbia are among the most competitive in
Central and Eastern Europe
• VAT – general rate of 20%, special rate of 10%
• Net individual income taxes and contributions –
65% (in total)
• Corporate income tax – 15%
4
Unique incentive package for investors
State grants tax reliefs for every new employee up to
75 %, tax credits for investments in fixed assets, and
financial incentives up to 50 % of invested amount (70
% for SME sector) or maximum 50 % of two year gross
salaries amount
5
Trained workforce at competitive prices
With average gross salary of ca. €490, the total cost
per employee is approximately 50% lower compared to
the EU and Eastern Europe countries
HARVEST PROFITS IN ODŽACI
West-Bačka District Welcomes Investors
West-Backa District is a fast growing region located in Serbia’s premium investment
destination – Province of Vojvodina at the far north of Serbia. Bordering two EU
countries (Croatia and Hungary), it holds a strategic position between two major
Pan-European Corridors – the Danube river (Corridor 7) and E75 Highway (Corridor
10). There are four cities in West-Backa District – Odžaci, Kula, Sombor and Apatin,
with a total population of 191.044 inhabitants.
Local economy relies on agriculture (80% crop husbandry), since the whole
district rests on 185.000 ha of finest-quality arable land. Other key industries are
food-processing, chemical, metal-processing, machine and automotive industry.
There are also several shipyards located at the Danube river.
West-Backa districts offers ideal conditions for investors who are looking to
relocate or expand their business in the region of SEE: duty free access to Russian
and other major markets in Europe and across the Atlantic, low operating costs,
skilled labor at competitive prices and certified business-friendly environment.
2
HARVEST PROFITS IN ODŽACI
3
45º30’14” N
19º15’24” E
HARVEST PROFITS IN ODŽACI
Harvest Profits in Odžaci
Municipality of Odžaci is a rising investment star of West-Backa District in the north
of Serbia. It is located near the border crossing with Croatia and 65 km away from
Hungary, which makes it an ideal logistics hub for serving the European Union market.
The municipality is well placed on the left bank side of the River Danube,
hosting the international port Bogojevo, while the Pan-European Corridor 10
(E75 Highway) is just 35 km away.
With more than 100 years of tradition in industrial and agriculture production,
the municipality offers educated work force in the field of textile, chemical and
machine industry, as well as agriculture. There are several successful investors
– Canadian company Magna Seating, leader in production of car upholstery and
Austrian Greiner Packaging, producer of glasses for food industry. The largest
domestic companies are HI Hipol, the first and only domestic producer of
polypropylene, and Standard Gas which is the largest private producer of energy in
Serbian market with its facilities in Odžaci.
Municipality’s most significant natural resource is arable agriculture land,
covering the area of 350 km2. Potential investors have at disposal completely
equipped working zone Block 46, as well as available locations suitable for both
greenfield and brownfield investments
ODŽACI ID
4
Name
Municipality of Odžaci
Location
South East Europe – North Serbia – West-Bačka District
Population
30.196
Territory
411km²; 85,56% arable land, 4,94% forests, 9,5% roads
Budget
EUR 8 million; 14.5% capital investments
Address
24 Knez Mihajlova street, 25250 Odžaci
Telephone, fax
+381 25 5 743 211, +381 25 5 742 396
E-mail
[email protected]
Website
www.odzaci.rs
ls
m
1768 km
Copenhagen
1659 km
HARVEST PROFITS IN ODŽACI
Hamburg
1547 km
Amsterdam
1721 km
Berlin
1255 km
Warsaw
1067 km
Kiev
1302 km
Traffic Connections
Vienna
533 km
Salzburg
737 km
Graz
515 km
Ljubljana
460 km Zagreb
331 km
Budapest
296 km
Odžaci
Belgrade
139 km
Skopje
562 km
Istanbul
1.126 km
Thessaloniki
765 km
10th Pan–European Corridor (E70, E75)
7th Pan–European Corridor (Danube)
Sofia
527 km
Igoumenitsa
1.063 km
The Municipality is well connected within the region of South East Europe via
highway, railway and river corridors and airports making it an attractive investment
destination.
Pan-European Corridor 10 (E75 Highway) connects Odžaci with central and
northern European countries from one side, and South-East Europe and Asia on
the other. Corridor 7 (River Danube) is the main waterway in the EU, connecting
10 European countries, from North to Black Sea. International port Bogojevo
is strategically located in Odžaci at the cross border with Croatia, offering
opportunities for three-modal transport. The nearest international airport is in
Coratia – Osijek (54 km), while Belgrade airport is 138 km away.
Two regional roads pass through the municipality – M-3 leading to Croatia,
and M-18 leading to Hungary. Besides regional roads, there is a railway line in the
vicinity of the Business zone “Block 46”.
5
HARVEST PROFITS IN ODŽACI
Human Resources
With more than 100 years of tradition in industrial and agriculture production, the
municipality offers educated work force for textile, chemical and machine industry,
as well as for agriculture and food-processing. The number of unemployed is 4.671,
while the total labor force amounts to 20.858 people, ready to meet the needs and
expectations of most investors.
Labor costs are very competitive compared to regional and EU standards - the
average gross salary is 430 euros.
Municipality of Odžaci has one High School and one School of Economics and
also a Technical High School which educates technicians of various profiles (computer
engineering, environment, and mechanical engineering), motor vehicle mechanics,
locksmiths, welders, plumbers, garment-tailors, shoe-modelers. The closest and most
important university center with 14 faculties is just 60 km away, in the City of Novi
Sad. More than 70% of local population has a high-school or university diploma.
6
HARVEST PROFITS IN ODŽACI
Local Economy
In just few years, Municipality of Odžaci has developed a
vibrant and competitive environment for doing business.
There are 254 companies and 755 entrepreneurs.
Most developed industries are agriculture and food
processing, chemical industry, automotive industry, textile
industry, packaging industry.
The largest domestic companies are HI Hipol and
Standard Gas – the biggest private producer of energy in
Serbian market. The most important foreign investors are
Magna Seating (automotive industry, Canada) and Greiner
Packaging (packaging industry, Austria).
Chemical Industry
Chemical industry currently employs 450 workers, but has
a lot of potential for growth. If all the chemical facilities
in Odžaci would work with their full capacity, that would
bring 200 new jobs and annual income of more than
40.000.000 euros.
The leader in this sector is HIPOL, locally based
chemical manufacturer which is the first and only national
producer of polypropylene – the key ingredient for making
plastic. HIPOL also deals with a full range of HIPOLEN P
homopolymer grades with the capacity of 35.000 tons per
year. This is very attractive for potential investors from
packaging industry that process these raw materials – by
locating in Odžaci they will lower their transportation costs
and secure a steady supply of the row materials just in time.
Since Odžaci is an agricultural municipality, the future of
chemical industry lays in renewable energy sources.
7
HARVEST PROFITS IN ODŽACI
Agriculture
Among the lowest usage of fertilizers and
pesticides in Europe, fertile soil, water resources
(Danube river and Danube-Tisa-Danube canal),
perfect yearly balance of sun and rain, tradition in
growing of crops – confirms huge local potentials
for agribusiness development.
Odžaci has 35.000 ha of top quality arable
land – meadow black soil and calcareous
chernozem with a significant layer of humus.
This makes up to 1,15 ha of arable land per
citizen, which is more than Serbian and European
average. 60% of arable land is planted with
grain crops: wheat, corn and soy with annual
production of around 80.000 tons of grain.
27% of arable land is planted with industrial
plants, mostly sugar beet, 6,3% with vegetables
(potatoes and melon) and 6,4% with forage crops.
Most of the working age population deals with
agriculture, while the broader region of Odžaci
offers excellent opportunities for education
and R&D in this field – Faculty of Agriculture,
Farming Institute, Veterinarian Institute, and
Food Institute.
Large number of family cooperatives and
small farmers can easily be organized for
production. There are also 200 ha of available
land near the port on the Danube river suitable
for the construction of International regional
logistics center for agriculture.
As agriculture is developing, so is the potential
for using biomass as a source of energy. Currenty,
the whaet straw potential is ca. 2.000.000 tons.
8
HARVEST PROFITS IN ODŽACI
CERTIFIED AS BUSINESS FRIENDLY MUNICIPALITY
In 2013, the National Alliance for Local Economic Development (NALED) and the
Ministry of Finance and Economy awarded Odžaci with the national BusinessFriendly Certificate (BFC). One third of all the municipalities in Serbia have entered
the certification process in order to improve the quality of services and information
they offer to investors, while only 30 of them has managed to fulfill high businessfriendly standards as Odžaci did.
BFC seal of quality serves as a unique guarantee for investors that the municipality
offers all the necessary conditions for starting and expanding the business
including:
• All the necessary planning and strategic documents
• Local Economic Development Office supporting businesses and investors
• Direct communication with local government leaders through the Business
Council
• Efficient construction permitting system
• Databases on available locations, workforce, local businesses
• Adequate infrastructure and reliable utility services
• Transparent and encouraging local taxes, fees and incentives policies
For more info please visit www.bfc-see.org
9
INVESTMENT OPPORTUNITIES
Greenfield Locations
Industrial zone Block 46
The municipality of Odžaci offers to investors more than
20 ha of fully equipped industrial zone “Block 46”. Depending on
investor’s needs, all the available plots can easily be connected to
road, electricity, water supply, sewerage, telecommunications and
gas networks. Industrial zone is strategically located 1 km from
the city center, at 20 km from the EU market and international
port Bogojevo on the Danube River.
Location area
205.191 m²
Land purpose
Construction land
Constructed facilities
Magna Seating, automotive industry – production of car upholstery, 26.796 m²
Ownership structure
100% municipal owned
Infrastructure
Access road, possibility of connection to gas, water, sewerage, telecommunications, internet
Location
1 km from city center, 35 km from E-75, 500 m from train station
Price and type of acquisition
EUR 5,3/m² starting price for lease (auction) and purchase
Land development fee
EUR 4,5/m²
Local incentives
Reduction of land development fee for new job created and one-time payment
10
INVESTMENT OPPORTUNITIES
Brownfield Locations
BIMDI
Textile Industry
Total land area: 4.129 m²
Total buildings area: 3.773 m²
Ownership: 100% private
The BIMDI company is engaged in production and sale of men’s, women’s and
children’s clothes. The factory complex is situated on the edge of the industrial area,
along the railway and main road, with good transportation access. Manufacturing
plants, warehouses of raw materials and finished products, offices, restrooms, power
plants, buildings for air conditioning are located within the fenced factory complex.
All objects are linked to the installation of utility infrastructure. At the entrance to
the factory there is a reception desk, the whole circle is fenced, lighted and paved
with concrete paths and roads. The circle is greened with lawns, parterre greenery
and ornamental trees.
www.bimdi-fashion.com/en
AGROOPREMA
Mechanical/Chemical Industry
Total land area: 10.200 m²
Total buildings area: 3.500 m²
Ownership: 90% private
Brownfield site Agrooprema is located on the main road. It has a hall which extends
to 600 m² and meets the requirements for mechanical and chemical production.
In addition to the hall, there is also an office space and warehouse, which
cover an area of 200 m². The site is equipped with electricity, water, sewage,
telecommunications, and access road.
www.serbia-locations.rs
11
INVESTMENT OPPORTUNITIES
Privatization
IMO POLJOSTROJ
Machine Industry
Total land area: 72.458 m²
Total buildings area: 13.500 m²
Ownership: 100% state
Value of the property: EUR 1.486.687
Value of the production equipment: EUR 987.900
IMO Poljostroj AD Odžaci in bankruptcy produces agricultural machines and
associated equipment with a long tradition in the municipality of Odžaci. 90% of its
production is exported to former Soviet countries and their neighbors, while only
10% of its production goes to local and regional market.
Poljostroj currently employs about 60 people, but could hire twice as much
within the existing generation capacity. When taking into account all the
parameters, starting from the workforce, through production machines, tools, dies,
suppliers of raw materials, castings and cooperatives, Poljostroj could annually
produce 300 high-pressure presses PVP-351 which would amount to approximately
1.800.000 euros. The company seeks long-term financing, strategic partner or buyer.
Value of the property – including production hall, installation hall, management
building, storage, tool room, substation, warehouses is estimated at 1.486.687 euros,
while the value of production equipment reaches almost 1 million euros.
www.poljostroj.co.rs
12
INVESTMENT OPPORTUNITIES
Local Taxes, Fees And Incentives
Average cost of connecting to the infrastructure
Electricity
EUR 835
Water
EUR 110
Sewage
EUR 620
Fixed telephone line
EUR 95
Internet (cable)
EUR 20
Municipality of Odžaci offers
35% to 99% price reduction
on land development fee for
investors employing minimum
10 to more than 100
permanent staff members
Communal and land fees for business users (on average)
Land development fee
Electricity price
EUR 4,5/m²
EUR 0.04/kw to EUR 0.045/kw
Water price
EUR 0,7/m³
Waste water (sanitation)
EUR 0,9/m³
Internet (flat rate)
Garbage collection
EUR 20/month
EUR 0,05/m²
13
SUCCESS STORIES
MAGNA SEATING
Automotive Industry
• Type of investment: greenfield
• Value of investment: EUR 5.664.667
• Number of employees: 450
MAGNA Seating is part of a multinational company Magna International – a
global leader in automotive industry, which has over 115,000 employees in 269
manufacturing facilities and 88 R&D, engineering and sales centers in 26 countries
on all five continents. MAGNA is the most diverse global supplier in the automotive
industry, an innovative leader in the development and manufacturing of high
quality complete seating systems, mechanism and hardware solutions, specialty
mechanism solutions, seat structures as well as foam & trim products.
In 2012, the Canadian company MAGNA Seating completed a greenfield
investment in the Business zone, “Block 46.” They built a factory for the production
of automotive upholstery, employing 450 people. The products made in Odžaci are
exported to markets all around the world and industrial buyers such as BMW, Fiat,
Ford, Volkswagen, Mercedes, Porsche, PSA Peugeot Citroen, Renault-Nissan and others.
www.magna.com
14
SUCCESS STORIES
GREINER PACKAGING
Chemical Industry
• Type of investment: privatization
• Value of investment: EUR 8.000.000
• Number of employees: 150
Greiner Packaging is member of global company Greiner Group, which is among the
leading foam and plastics producers for the packaging, furniture, sports, automobile,
medical and pharmaceutical industries. Also, Greiner is among the leading
producers of extrusion tooling and machinery for plant construction. It has more
than 125 production and distribution facilities around the world, and it is one of the
most important plastic producers in Europe, with over 3.000 employees.
The company’s manufacturing facilities are located in Austria, Czech Republic,
Estonia, the Great Britain, Hungary, Poland, Russia, Romania, Switzerland, Slovenia
and Serbia.
The plant in Odžaci is the first foreign investment in Business zone Odžaci and
one of the first producers of plastic packaging and other plastic products for food
and other industries.
www.greiner.at, www.greiner-gpi.com
15
SUCCESS STORIES
STANDARD GAS
Alternative Energy
• Type of investment: greenfield
• Value of investment: EUR 15.000.000
• Number of employees: 100
Standard Gas LLC is engaged in the production and distribution of liquefied
petroleum gas (Gas - EN 589) and is one of major companies in the alternative
energy sector in South-East Europe. With existing facilities in Odžaci, Standard Gas
is also the largest private manufacturer of energy in the Serbian market.
The investment in Serbia exceeds 15 million euros.
www.standardgas.rs
16
Riga
Copenhagen
Vilnius
Minsk
Hamburg
Berlin
Warsaw
Municipality of Odžaci
24 Knez Mihajlova Street
25250 Odžaci, Serbia
+381 25 466 032
[email protected]
[email protected]
investinodzaci.rs
Kiev
Frankfurt
Prague
Stuttgart
Vienna
Munich
Zürich
Salzburg
Bratislava
Budapest
Ljubljana
Zagreb
Milan
Odžaci - West-Baèka District
Bucharest
Belgrade
Project funded by EU
Sarajevo
This publication has been produced with the assistance of the European Union.
The contents of this publication are the sole responsibility of NALED and can in no way be taken to
reflect the views of the European Union.
Sofia
Skopje
Rome
Istanbul
Tirana
Thessaloniki
FREE TRADE AREA
Igoumenitsa
CEFTA – The Central European Free Trade Agreement – 30 million consumers
EFTA – The European Free Trade Association – 13 million consumers
Athens
Russia – The only country outside CIS that has FTA with Russia – 142 million consumers
EU – Preferential status – 502 million consumers
Turkey – Free Trade Agreement – 72 million consumers
Belarus – Free Trade Agreement – 10 million consumers
Kazakhstan – Free Trade Agreement – 15.5 million consumers
USA – Preferential status – 317 million consumers
The European Union is made up of 28 Member States who have decided to gradually link together
their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they
have built a zone of stability, democracy and sustainable development whilst maintaining cultural
diversity, tolerance and individual freedoms. The European Union is committed to sharing its
achievements and its values with countries and peoples beyond its borders.
The European Commission is the EU’s executive body.
EU CBC IP - Cross-Border Cooperation for Investment Promotion is a two-year project which has been
implemented from June 2012 in Serbia and Croatia by NALED and Municipality of Gradiste in partnership
with Municipality of Lovas, City of Ilok, TINTL, Municipality of Odžaci and Municipality of Kula.
investinodzaci.rs
INVEST IN SERBIA
HARVEST PROFITS IN ODŽACI
WEST-BAČKA DISTRICT
Project implemented by NALED
National Alliance for Local Economic Development - NALED
30/VII Makedonska Street, 11000 Belgrade, Serbia
+381 11 33 73 063, +381 11 33 73 061 (fax)
[email protected]
www.naled-serbia.org
Project funded by EU