Transcript Pealkiri - Arenduskeskus

Food Industry in Lääne
– Viru County
Lääne-Viru Development Centre
2013
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 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 production 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 food industry skilled
workers at Lääne-Viru County
31.11.2012 (www.tootukassa.ee)
• Production manager 1
• Meat processor 4
• Confectioner 2
• Baker 2
• Baker-confectioner 5
• Dairy products manufacturer 3
• Production line operator 16
• Grain processor 2
TOTAL 35 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
Food Industry in Lääne-Viru County
• Leading sector in the county – strong traditions, existing raw materials, good
agricultural land and big grain production
• Sector has developed at highly level and has the second place in Estonia
(after Harju County)
• Opportunities for new food productions
• Existing labour force
• Biggest suppliers in the region: AS Rakvere Lihakombinaat, OG Elektra
AS, AS Viru Õlu
• The most suitable areas: closest surroundings of Rakvere and southern part
of county
• 15 companies 1400 employees
• Sales 127230670 EUR
• Export 2405609 EUR
• Profit 7939697 EUR
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 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)
Industrial Areas in the Region
Tamsalu Industrial Area
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Surface 73 ha
Architectural drawings
In offer 30 plots from 0,2
to 1ha
Electricity
Water supply, sewerage
Teleservice
Railway connection
Highway (500 m)
Location on the edge of town (2300
citizens)
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Location:
Tallinn airport 90 min
Tartu 90 min
Narva 120 min
Kunda port 45 min
Rakvere 25 min
Tallinn-Tartu- Moscow railway
Traditional branches of economy:
Metallurgical industry
Production constructionmaterials
Food production industry
Wood production industry
Agriculture
Logistics (railway and motor
transport
Industrial Areas in the Region
Haljala Industrial Area
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Location:
Tallinn 55 min , 90 km
Tallinn airport 60 min
Tartu 130 km
Narva 124 km
Pärnu 150 km
Kunda port 20 km
Rakvere 11 km
Tallinn – Narva – Saint-Petersburg
railway
Well-developed and modernizing industry.
Some important enterprises of the county:
ViruÕlu AS, Bellus Furniture OÜ and
Baltic Fibres OÜ which have owners from
Denmark, Finland and United Kingdom.
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Attractive to foreign investors and
investments
Intensive agriculture
High speed internet connection
Surface area ca 34 ha
Electricity
Water supply, sewerage
ICT services
Railway connection ( in Rakvere)
Highway
The number of registered unemployed 3%
Biggest Suppliers in the Region
AS Rakvere Lihakombinaat (Rakvere
Meat Processing Plant)
• Rakvere Lihakombinaat and subsidiaries employ approximately 1,200
people, about 900 of them in Rakvere.
• Largest manufacturer of meat products in the Baltic States.
• Market leaders in both the meat and meat products.
• One of the largest employers in Lääne-Viru County.
• Exports account for about 30% of the turnover.
• Rakvere is implemented integrated quality and environmental
management system and have obtained the international ISO 9001 and
ISO 14001 certifications
• Turnover: 140 704 000 EUR(2011); 1 428 765 000 EEK(2010)
(91 314 726,5 EUR) (2009);
• Profit: 6 750 000 EUR (2011); 72 052 000 EEK(2010); 4 604 962,1
EUR (2009)
Biggest Suppliers in the Region
Maag Piimatööstus AS
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Since 2011 operates in Jõhvi,at Ida-Viru County
Subsidiary of AS MAAG Grupp and deals with production and marketing of highquality dairy products and ice creams.
MAAG Piimatööstus is based on Estonia’s oldest dairy industry
Approximately 11,000 m2 of production space
The production plants of MAAG Piimatööstus located in Jõhvi City and Rakvere City
provide work for 250 persons at January 2009.
ISO 22000:2005 certificate. On many occasions products made by MAAG
Piimatööstus have been awarded the title of Best Estonian Dairy Product and are the
local mark of quality (contains the image of a swallow).
Turnover: 35 768 973 (2010); 559 662 812 EEK (2009)
Profit: -1 570 588 EUR (2011); 756 627 EUR (2010); 11 838 646 EEK (2009)
Export turnover: 2 798 273 EUR (2011); 3 280 977 EUR (2010)
Biggest Suppliers in the Region
AS OG Elektra kontsern
• A privately held group of companies founded in the domestic business
enterprises whose main activity is the manufacture and sale of food
products, covering the whole chain from producer to consumer mostly due to our own manufacturing units, logistics centers and retail
outlets in the chain.
• In the meantime, the company has its central warehouse and 35 food
and convinience goods stores around Estonia. The stores are located in
East and West-Viru, Tallinn and Harju County
• Kontserin kuuluvad: OG Production Ltd, Ltd. butcher, Lepna
Manufacture Ltd, Oleg Gross Farm LLC, Annikvere Farm LLC, PM
carotene, Avec Publisher.
• OG Elektra, Ltd. employs about 700 people.
• Turnover: 7 832 827 EUR (2011); 8 151 902 EUR (2010)
• Profit: 1 362 252 EUR (2011); 984 307 EUR (2010)
Biggest Suppliers in the Region
AS Viru Õlu
• Estonian beer and soft drinks producer since1975.a, located at Haljala.
The company is a cheaf shareholder of Danish brewery Harboe
Bryggeri AS.
• 2000th market share was 7%, 2003 was 10.2% in 2005 13% and 2007
was 9.0%. The production in 2005 was 164 100 hl, in 2007 was
115,400 hl.
• Products include soft drinks, waters, juices, syrups, beers, ciders,
energy drinks and coffee.
• Turnover: 8 363 264 EUR(2011); 8 776 238 EUR (2010)
• Profit: 177 376 EUR(2011); 13 099 EUR (2010)
• Export turnover: 1 377 129 EUR (2011); 2 220 106 EUR (2010)
Foundation Lääne -Viru
Development Centre
Investor consultant
[email protected]
Phone nr: + 372 32 58 028
www.arenduskeskus.ee