Transcript Slide 1

Serbia Investment and Export Promotion Agency
AUTOMOTIVE INDUSTRY IN
SERBIA 2012
Vladimir Tomic| Assistant Director for FDI
PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012.
TRADITION OF AUTOMOTIVE INDUSTRY IN SERBIA
Serbia Investment and Export Promotion Agency
1939
1954
 Current
no. of Companies: around 100
1965
 Number of Employees: around 24,000
 Turnover 2010: 861.7 million EUR
1971
 Largest






Companies:
Fiat Automobiles Serbia
Michelin - Tigar Tyres
Trayal
CIMOS Livnica Kikinda AI
DAD Dräxlmaier
Yura Corporation d.o.o.
1988
2008
2012
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AUTOMOTIVE INDUSTRY IN SERBIA TODAY
Serbia Investment and Export Promotion Agency
 Passenger
cars
 Tires
 Car
batteries
 Casted
 Ball
& machined parts
bearings
 Wiring
harness
 Trucks
 Seat
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covers
AUTOMOTIVE FDI IN SERBIA 2004
Serbia Investment and Export Promotion Agency
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AUTOMOTIVE FDI IN SERBIA 2006
Serbia Investment and Export Promotion Agency
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AUTOMOTIVE FDI IN SERBIA 2008
Serbia Investment and Export Promotion Agency
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AUTOMOTIVE FDI IN SERBIA 2010
Serbia Investment and Export Promotion Agency
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AUTOMOTIVE FDI IN SERBIA 2012
Serbia Investment and Export Promotion Agency
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CORNERSTONE OF AUTOMOTIVE SECTOR IN SERBIA
Serbia Investment and Export Promotion Agency
• Joint Venture between Fiat Group
Automobile and the Republic of Serbia
Government;
• Total investment at around 1 billion EUR;
• Starting from 2012, FAS will set-up the
production of at least 200,000 units per
year ;
• The new factory should export 1.5 billion
EUR/year worth of cars;
• Up to 85% of new model components will
be produced in Serbia;
• 2,400 jobs will be created by Fiat, while
10,000 more by suppliers and subsuppliers;
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TIER 1 SUPPLIERS
Serbia Investment and Export Promotion Agency
Dashboard
Exhaust assembly
Door Panel
IP crossbeam
Seat Assembly
Suspension
Tire Assembly
Front & Rear Painted Bumper
Stamping and Welding
Wiring Harness
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SERBIA COST TABLE
Serbia Investment and Export Promotion Agency
Average net salary (EUR)
350
372
370
331
324
275
150
2002
179
168
2003
2004
204
2005
2006
2007
2008
2009
2010
2011
Unemployment rate (%)
Typical monthly salaries:
Minimal salary:
Average salary in automotive ind.
Average blue collar salary
Average white collar salary
Net:
184 €
305 €
250 €
550 €
Working week:
Overtime:
No. of shifts:
40h
8h/week 4h/day
max 3
Utilities:
Electricity cost:
Gas cost:
Water cost:
0.05 €/kWh
0.42 €/m3
0.2 €/m3
Building:
Average rent cost:
Average building cost:
4 €/sqm
400 €/sqm
24.4
21.8
21.6
20
18.8
16.9
14.4
2005
2006
2007
2008
2009
2010
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2011
Total:
303 €
503 €
412.5 €
907.5 €
SERBIA FREE TRADE AGREEMENTS
Serbia Investment and Export Promotion Agency
European Union
EFTA
Russia
Kazakhstan
CEFTA
Turkey
Belorussia
USA –
preferential
trade
0% - import duties; 0% - export duties
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MOST ATTRACTIVE TAX SYSTEM IN EUROPE
Serbia Investment and Export Promotion Agency
Serbia
Serbia
12%
18%
Croatia
15%
Slovakia
20%
Czech
15%
Czech
20%
Bulgaria
20%
Romania
16%
Poland
Poland
18%
Slovakia
Romania
19%
Bulgaria
5%
Salary Tax
10%
15%
20%
25%
25%
Hungary
24%
0%
24%
Croatia
20%
Hungary
23%
30%
27%
0%
Serbia
10%
Bulgaria
10%
5%
10%
15%
VAT
Romania
16%
Poland
19%
Slovakia
19%
Croatia
20%
Czech
20%
Hungary
20%
0%
5%
10%
Corporate Profit Tax
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15%
20%
25%
20%
25%
30%
GRANT DISTRIBUTION SYSTEM
Serbia Investment and Export Promotion Agency
Standard-scale projects:
• Minimum requirement 1 million
EUR investment – standard regions
• Minimum requirement 0.5 million
EUR investment – underdeveloped
regions
• Minimum 50 new jobs
• Incentives from 4,000 to 10,000
EUR/ every new job created
Large-scale projects:
• Minimum requirement 50 million
EUR investment, 300 new jobs
• Up to 20% value of investment
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EXAMPLE OF STATE GRANTS
Serbia Investment and Export Promotion Agency
15 million euro investment
5,000 euro per job created
1,300 jobs created
1,300 x 5,000 =
6.5 million euro state subsidies
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About SIEPA
Serbia Investment and Export Promotion Agency
Project
Aftercare
Investment
Promotion
Information
Provision
Project
Management
Location
Advisory
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SIEPA LOCATIONS DATABASE
Serbia Investment and Export Promotion Agency
The largest database of industrial and service locations in Serbia – www.serbia-locations.rs
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SIEPA SUPPLIERS DATABASE
Serbia Investment and Export Promotion Agency
The largest database of Serbian industry – www.siepa.gov.rs
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KRAGUJEVAC SEE AUTOCOMPONET 2012
Serbia Investment and Export Promotion Agency
May 9th 2012
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Serbia Investment and Export Promotion Agency
Thank you for your attention!
SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY
3, Vlajkoviceva St.
11000 Belgrade, Serbia
Phone: +381 11 33 98 55 0
Fax: +381 11 33 98 81 4
E-mail: [email protected]
www.siepa.gov.rs