Transcript Pealkiri

Wood Processing in
Lääne-Viru County
Lääne-Viru Development Center
2013
Investor consultant
Sustainable competitiveness in
business services
Estonia offers distinctive opportunities for business service centres for
both in-house and outsourced solutions. Estonia is the emerging Nordic
location and an excellent gateway between Northern, Western and Eastern
Europe and Russia.
Estonia offers sustainable, high-quality, competitive costs and low risk
solutions for BPO, IT and financial services shared service centres,
customer and technical support centres.
Enterprise Estonia is here to help you achieve and maintain these
competitive advantages.
Why Estonia?
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Quality technical skills
Foreign language skills
Competitive costs and taxes
Cutting-edge ICT infrastructure
Strategic location and global vision
Easy to do business
Low risk: economic & political stability
Room for growth: a sustainable solution
Supporting your investment
Business enviroment in Estonia
• Estonia's economy offers key opportunities for companies in a number
of sectors including ICT, electronics, machinery and metalworking,
wood processing, logistics/transport and food. The R&D elements of
these activities are supported by the country's 10 universities and 25
higher education colleges, which collectively provide a source of
graduates, often fluent in English, Swedish, Russian, Finnish and
German.
• Estonia has been ranked 16th in the Index of Economic Freedom
(2012, Wall Street Journal/The Heritage Foundation), 24th in the Ease
of Doing Business Report (2012, World Bank), and 33th in the Global
Competitiveness Report (2012, World Economic Forum).
• Estonia has some of the highest credit ratings in the region (Fitch
IBCA, Standard & Poor's, Moody's).
Business enviroment in Estonia
• Estonia is a member of euro area as of January 1, 2011.
• 0% corporate income tax is imposed on all reinvested earnings in
Estonia.
• The Estonian cost level is still significantly lower than that of
neighboring Scandinavian countries.
 In Estonia, all capital is treated equally, foreign or domestic.
 Estonia is a member of the International Center for the Settlement of
Investment Disputes, the Multilateral Investment Guarantee Agency,
and the New York Convention.
 Estonia is the leading country in Central and Eastern Europe in terms of
attracting foreign direct investments.
 Estonia is one of the leading countries in the world in creating and
implementing e-government solutions and cyber security
Why Lääne-Viru County ?
• Logistically very good location ( 100km to the airport in Tallinn, 25
km to port Kunda, 120 km to the east border in Narva)
• Closeness to important markets: the largest Estonian market in Tallinn
and Harju County, the largest Finnish market in Helsinki region, one
of the largest Russian markets in St. Petersburg region;
• Highways network in good shape
• A railway and port to ship raw materials and/or goods for export
• The existence and availability of local raw materials
• Skilled labor force within a radius of 100 km
• The presence of wood specialty professional learning
Why Lääne-Viru County ?
• Long experience and traditions in wood processing in the region
• Good cooperation with local authorities and assistance to investors
• Existing business areas that offer various services (including
electricity and gas supply);
• Various existing companies: building materials, wood processing, food
industry, metal and engineering industry, electronic industry;
• A good living environment with a normal social infrastructure and
recreation opportunities
Location
• Situated in northern Estonia. Bounded by Ida-Viru County on the east,
south and west of Jõgeva, Järva and Harju counties.
• Bounded on the north by Gulf of Finland
• Fifth most populated county in Estonia, with the population of 66
701people
• Territory is 3609 sq km and we are the third largest county in Estonia.
• Divided into 15 municipalities (13 rural municipalities and 2 towns).
Rural population is 55%
• The largest municipality is town Rakvere with 16 570 inhabitants,
being the county center as well
Connections
Transport and logistics
• Lääne-Viru County has a very favourable logistic location by the sea,
between Tallinn on one side and Ida-Viru County on the other side.
• Rail link with St.Petersburg and Pskov (Russia)
and Riga (the Baltic States, Belarus, the Ukraine)
• Port of Kunda – located 26 kilometres from Rakvere
• Close to Tallinn-Narva highway (Rakvere – Tallinn 98 km, Rakvere
– Narva 120 km)
• Rakvere-Väike-Maarja- Vägeva highway (Rakvere – Tartu 135
km)
• Sõmeru- Rakvere –Pärnu highway (Rakvere – Pärnu 178 km)
• International road transport companies: transport operations all over
Europe as well in Russia and in the Ukraine
• Storage terminals for chemical and oil products
• Airport in Tallinn – 98 km
Power network
• Electric power reaches Estonian households and companies with the
help of Eesti Energia Jaotusvõrk OÜ which provides services for 87,7
% of Estonian electricity consumers.
• Lääne-Viru County is supplied by a network of power lines with a total
length of 5235 kilometres, 4520 kilometres of it is made up by
overhead transmission lines. In the financial year 2010, over 2.58
million € was invested by the distribution network in the renovation of
the power network of Lääne-Viru County. Nearly half of that sum was
spent on the installation of underground cable lines.
• In 2011 the focus was on replacing overhead transmission lines with
underground cable lines, the company replaced 80 km of lines with
underground cable lines. The distribution company invested about 2.88
million € in 2011 in Lääne-Viru County for the construction and
renovation of networks. In addition, maintenance and repair work
necessary for sustaining the operating reliability is carried out.
www.energia.ee
Regional workforce skills and costs
• Estonia has relatively low taxes and a simple tax system. Currently
there is no corporation tax ( tax is not imposed on reinvested profit)
• Income tax on dividends forms 21/79 of the dividends received.
• Value added tax is 20 per cent with just a few exceptions.
• The average labor cost per hour worked in 2009 wood processing,
wood and cork products produstion and production of braids was 6.5
eur (www.stat.ee)
• Educational level in Lääne-Viru County
Statistics 2011 (people, thousands)
• Primary education or lower
5.2
• Secondary, post secondary and pre tertiary education
17.3
• Tertiary education
9.2
• Education after secondary education
2.7
• Higher education, mater`s doctoral degree
5.5
Unemployed wood processing
skilled workers at Lääne-Viru
County 30.11.2012 (www.tootukassa.ee)
Wood processing
• Wood processor 53
• Joiner 3
• Wood machine tool operator 8
• Paper producing line operator 2
• Wood industry device operator 10
• Sawmill operator 3
• Wooden furniture compiler 1
TOTAL 80 persons
Taxes and duties
• Rate of tax on income 21%.
• Additional tax-exemption income when accidents at work or
occupational disease benefit is 64 euros monthly
• Social security tax is 33%. The minimum obligation base
monthly rate for social security tax is 290,00 euros, which
means that the minimum obligation social security tax is 95,70
euros monthly.
• Unemployment tax for the worker is 2%, for the employer it is
1%.
Taxes and duties
 The company must be registered as a VAT payer when from the
beginning of the calendar year, turnover is in excess of 16,000 euros,
on a voluntary basis can be registered also earlier.
 When the company is registered VAT payer in Estonia and starts to use
the imported (equipment, goods) for goods under VAT too, it can
deduct VAT paid at customs on these good from its taxable supplies
VAT.
 Each month for the 20th is needed to present a tax return when
registered VAT payer, VAT return form KMD. VAT payer can read
from the registration requirement of § 19 VAT law (law is also
available in English).
 When the company will make special payments or other distributions
paid in Estonia, and the company already is registered in Estonia, then
you may re-turn to the specific tax questions also directly at
[email protected].
Labor costs
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The average wages in Estonia in
2011 was EUR 839. The monthly
minimum wage for full-time work
is EUR 290.
Approximately three to four times
lower labour costs, compared to
Scandinavian
countries,
in
miscellaneous business activities
sectors.
More than three times lower labour
costs in the computer related
services sector compared to the
EU27 average.
6,000,000
5,690,992
Total labour costs, EUR/year
Shared service centre/BPO, 80 persons
4,872,490
5,000,000
4,277,570
4,000,000
3,495,198
3,000,000
2,312,688
1,965,661
2,000,000
1,551,833
1,487,476
1,811,572
1,559,355
1,000,000
0
Latvia Lithuania Poland Hungary Estonia Czech
Republic
UK
Finland Sweden Germany
Benchmark locations
Source: fDiBenchmark.com, spring 2012
• Accountant – 15
• Credit control officer – 4
• Head of finance and administration –
1
• Junior accountant – 28
• Senior accountant – 9
• Customer service manager – 5
• Computer operator – 2
• Data entry clerk – 9
• Office services specialist – 2
• Secretary – 4
Wood processing in Lääne-Virumaa
• Logistically good place, whence starts the road network in all directions in
Estonia
• Railway (station in Rakvere and Tapa, stop in Tamsalu)
• Port of Kunda
• Existing raw materials
• Local governments provide different plots for companies in the wood sector ,
investors are welcome
• Experienced and skilled unemployeed workforce
• Branch of industry with the long-standing traditions
• Opportunities for continuing education and training
• The most suitable areas for production: Rakvere, Sõmeru (Näpi), Kadrina
(Hulja), Viru- Nigula, Väike-Maarja, Laekvere, Roela, Tudu.
• 86 companies
2215 employees
• Revenue 152756737
• Export 78704639
• Profit 11429278
Larger foreign investments in wood
sector in Estonia
Company name
Field of business
Foreign investor (country)
Estonian Cell
Pulp plant
Norway, Austria
Horizon Pulp and Paper AS
Singapore, USA
Balti Spoon AS
Pulp, paper and other paper
products
Furniture industry materials
Stora Enso AS
Wood processing
Finland
Valga Gomab Mööbel AS
Furniture
Sweden
Finnforest AS
Sawn wood
Finland
Fenestra AS
Windows and balcony doors
Finland
Natural AS
Sawn wood
Iceland
Flexa Eesti AS
Furniture, sawn wood
Denmark
Viktor Stationery
Stationery
UK
USA
Industrial areas in the region
Rakvere Industrial Area
• Reconstructed infrastructure
• Good logistical position of the highway (Tallinn-Narva), railroad and
port of Kunda
• Good labor force potential in urban and in near rural municipalities
• Perspective of bringing one of railway line to industrial park
• Perspective of developing airport for serving enterprises
• Existing neighborhood of the Estonian energy and natural gas
distribution network
• Possibility of developing the industrial park area existing residential
areas and residential land to allow the relocation of labor
• The business environment in addition to a quality living environment
• Opportunity to provide affordable and cheaper production costs, while
logistically well-located plots (eg Harju county companies)
Industrial areas in the region
Kadrina Industrial Area
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Kadrina industrial village is situated on
21,5 ha in the northern and north-eastern
part of Kadrina.
Operating enterprises own 7 registered
immovables with the total area of 16,8 ha,
two plots are owned by the state. The
territory has a good access roads and
streets.
Location: Kadrina municipality
Technical networks: Free electrical
capacity of 1200 kW, heating 70 MW/
daily, water 150 m³/daily , sewerage-waste
water treatment facility, capacity 400 cupic
metres per 24 hours
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Desired use: wood products
manufacturing industry;
- cluster companies servicing companies
(wood cluster, metal cluster);
- production must be environmental
friendly;
- production should not be labor
intensive.
Distances:
Tapa railway junction (Russia, Latvia) 15
km
Port of Kunda 35 km
Port of Loksa 60km
Tallin-Narva highway and PärnuRakvere-Sõmeru highway – Tallinn 90
km, Rakvere town 15 km
Biggest suppliers in the region
Jed-Wen Eesti AS
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Wood products
Number of employees 647
Profit 6 969 000 EUR
Turnover 48 693 000 EUR
Revenue 40,9 milj EUR
Contact: www.jeld-wen.ee
Arkna tee 1, 44317 Rakvere
Ph.nr/ Tel +372 3229 130
Fax +372 3229 132
• [email protected]
Biggest suppliers in the region
Estonian Cell AS
• Aspen pulp mill which is located in Kunda, Estonia. The production started in
April, 2006. Total project cost was 153 million Euros and thereby was the
second largest foreign direct investment into Estonian industry.
Owner of AS Estonian Cell is the Heinzel Holding GmbH from Austria.
• The main constructer was RWE Industrie-Lösungen GmbH,
equipments supplier was Austrian company Andritz.
The mill annual capacity is over 150 000 tons of aspen pulp. This pulp is raw
material for high quality paper and tissue. Estonian Cell employs 85 people.
Turnover: 67 786 000 EUR (2011); 744 136,1 EUR
• Profit: -8 869 000 EUR (2011); 10 366 597,2 EUR
• Export turnover: 67 112 000 EUR (2011); 64 741 000 EUR (2010)
Biggest suppliers in the region
Aru Grupp AS
• 19 years of experience in the timber processing industry
• Aru Group, a woodworking factory situated in Northern Estonia, was founded
in the year 1993 and currently employs about 150 people. The whole
production consists of four factories: window and door production; stairs
production; log-house production and component production.
• Ensured quality
• Aru Group meets the requirements of the ISO 9001:2008 quality management
system.
• Brand
• Aru Grupp Ltd owns the brand Aru Joinery.
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Turnover: 6 195 571,4 EUR (2010); 7 011 662 EUR(2011)
Profit: 69 870, 96 EUR (2010); 394 185 EUR (2011)
Export turnover: 2 989 015 EUR (2011)
Biggest suppliers in the region
Stora Enso-Eesti AS
• Stora Enso is the global rethinker of the paper, biomaterials, wood products
and packaging industry. We always rethink the old and expand to the new to
offer our customers innovative solutions based on renewable materials.
• The Group has some 30 000 employees in more than 35 countries
worldwide, and is a publicly traded company listed in Helsinki and
Stockholm.
• Sõmeru Stora Enso Forest is one of the world's largest timber industry group
of Stora Enso wood supply company in Estonia. The log is stored for the
Stora Enso sawmill industry, chips and pulpwood for Stora Enso's paper
industry in Finland and Sweden. The goal is to supply the wood sustainably
and thereby create new values ​for both current and future consumers of
timber for forest owners
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Turnover: 180 111 735 EUR (2011); 163 395 945,4 EUR (2010)
Profit: 15 109 445 EUR (2011); 17 533 EUR (2010)
Export turnover: 126 799 725 EUR (2011); 115 131 774 EUR (2010)
Foundation Lääne -Viru
Development Centre
Investor consultant
[email protected]
Phone nr: + 372 32 58 028
www.arenduskeskus.ee