Transcript Pealkiri - Arenduskeskus

Metal Industry 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
Why should you set up business
in Lääne-Viru County ?
•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;
• Closeness to important business areas: the largest Estonian
business areas in Tallinn, Harju County and Ida-Viru County;
Helsinki region ;
• Closeness to the largest sources of Estonian labour force: Tallinn,
Harju County and Ida-Viru County ;
• A good transport network ;
• 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
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
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 66 701
people
• 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 as 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 metal industry was 8,18 eur
(www.stat.ee, year 2008)
• 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 metal industry skilled
workers at Lääne-Viru County
30.11.2012 (www.tootukassa.ee )
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Product painter 1
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Electrical welder 2
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Welder 14
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Tinman 2
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Car tinman 2
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Metal construction producer 1
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Locksmith 9
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Tool locksmith 1
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Machine tool operator 3
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Metal cutting machine tool operator 1
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Metal turner 3
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Metal decorator 2
TOTAL 41
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
Metal industry in Lääne-Viru
County
• Long history and traditions
• Developing sector, reproducing workforce itself
• The most suitable areas for production: Rakvere, Sõmeru,
Kadrina, Tamsalu, Tapa, Vihula
• 35 companies, 215 employees
• Revenue 13159993
• Export 2335024
• Profit 888585
Industrial areas in the region
Rakvere Industrial Area
• Location in the centre of county
• 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 bring 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)
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: Metal industry,
building material industry,
production must be
environmentally
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
Tapa Industrial Area
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The industrial park is located in the southwestern part of Tapa. The area has access
to a railway line owned by the town and a
good entrance road. A water and sewerage
network was built on the territory of the
industrial park. A new high voltage line
and two new substations supply the area
with electricity.
Total area: 50 ha
Distances: Tallinn 100 km, 70 km by
railway Rakvere 30 km,
Technical networks: Electricity 2*1000
KVA ,substation and 2*630 KVA
substation.
Heating can be purchased from the boilerhouse of a
timber-processing enterprise.
Communications cable available in the
centre of the industrial park, water and
sewerage available.
The area of business is expected to:
- wood products manufacturing industry;
- cluster companies servicing companies
(wood cluster, metal cluster);
- companies related with logistics
- production must be environmental
friendly;
- production should not be labour
intensive.
The area of business is expected to:
- wood products manufacturing industry;
- cluster companies servicing companies
(wood cluster, metal cluster);
- companies related with logistics
- production must be environmental
friendly;
- production should not be labour
intensive.
Biggest suppliers in the region
Rakiste Tehas AS
General info:
• Export share of turnover:13 %
• Number of employees:58
• Year of establishment:1992
• Working languages: Estonian, Russian, German, Finnish, English
• Certificates: ISO 9001 : 2000
• Fields of activity: Design and production of metalwork. Manufacturing of
metal framed garden furniture, machine-building subcontract works
 Products: Metal framed outdoor furniture, punched details, light welded
frames, machining (CNC turning, milling, drilling, grinding), special
equipment and inventory according to drafts of customers, subcontracting.
 Technologies: Mechanical processing (turning, milling, drilling, grinding),
thermal processing.
 Turnover: (2011) 2 246 991€; (2010) 1447817 €
 Profit: (2011) 321 291€; (2010) 199158€
 Export turnover: (2011) 273 400€; 279 561€
Kunrex OÜ
• Established in 2003, Kunrex OÜ is a fast growing company engaged in
metalwork.
• Our main activity can be divided in two: sale of workforce services and
production of industrial and structural metal constructions and facilities
including installation. In addition we act as construction subcontractors and
manufacture different metal parts by order.
• Today the company has 54 highly qualified employees and a 1250 m²
production facility with lifting gear and equipment needed for metalwork. The
main markets are Estonia, Finland and Sweden.
• In 2007 Kunrex OÜ achieved a top 5 position in the Estonian Competitiveness
Chart.
• Sertifikaat: ISO 9001:2008
• Turnover: (2011)3330072€; (2010) 1878788€;
• (Profit:(2011) 58 503€; (2010)-93389€
• Export turnover: (2011) 3140800€, (2010) 1624970€
Lindfords Steel OÜ
• Established in 2006, metalworking company, has premises
in Rakvere, Lääne-Virumaa.
• Specialized on producing of stainless steel equipment and
inventary:
-Different transporters
-Lifting and inclineing appliances
-Inventary for facilities
-Different appliances and solutions according to
customer`s needs
• Turnover: (2011) 348376€; (2010) 293265€
• Profit: (2011) 24134€, (2010) - 49597€
• Export turnover: (2011) 108353€, (2010) 95983€
HeTi Pere OÜ
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Estonian based metalworking
company manufacturing
complex high-quality machines
and precision details for
customers with high
requirements since 1995.HeTi
Pere has developed a complete
production process from
storaging of raw materials,
welding and mechanical
processing to painting,
assembling and testing.
The company currently has 64
employees whose task is to
provide fast and flexible highquality supplies on a
subcontracting basis in a short
period of time.
• The company is useing different
materials in their products:
steel, high resistant steel
(Hardox), acid-proof stainless
steel (AISI 316, Duplex), etc.
HeTi Pere produces a wide
range of conveyors and
equipment for plywood and
paper industry, mainly for
export..
• Turnover: (2011) 4280106€;
(2010) 3164459€
• Profit: (2011)187617€; (2010)
-153645€
• Export turnover: (2011)
3653532€; (2010) 2874645€
Pomemet OÜ
 Pomemet LLC was founded in 1996. Today, the production volume is
steadily increasing and improving and meets the most strictest quality
requirements.
 The company has hold ISO 9001:2008 certification since 2005: in the field
performing metal and welding jobs, and in manufacturing accessories for
construction machinery.
 The company's product range includes snow plows, buckets for loaders and
excavators, quickcouplers, asphalt cutters, cable shovels, forks.
 Export represents almost 90% of the turnover. Products are mainly exported
to Finland, Sweden and the Baltic countries.
 Through the ages have been Pomemet mission the client's wishes to grant
flexible manufacturing in high quality products to ensure customer
satisfaction
 Turnover: (2011) 3631440€; (2010) 2475393€
 Profit: (2011) 729740€; (2010) 373161€
 Export turnover: (2011) 2483074€; (2010) 2047417€
Kopar Baltik AS
 Kopar Baltik AS, established in 2005, is a subcontracting company
founded and owned by a Finnish engineering and manufaturing
company Kopar Oy. For the moment approximately 90% of all of its
production Kopar Baltik supplies to its Finnish parent company.
Kopar Baltik AS has premises in Lääne-Virumaa, close to the city of
Rakvere, approx. 100 km from Tallinn to east. In the small village of
Uhtna, we have some 2000 m2 of production and office facilities. In
January 2007 we had 23 employees, 16 of which worked in
manufacturing .
 Turnover: (2011) 2425226€; (2010) 1302069€
 Profit: (2011) 189633€; (2010) 4003€
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Foundation Lääne -Viru
Development Centre
Investor consultant
[email protected]
Phone nr: + 372 32 58 028
www.arenduskeskus.ee