INVEST IN BROD-POSAVINA COUNTY,...

INVEST INBROD-POSAVINACOUNTY, CROATIAINVESTMENT PROFILE

BASIC INFORMATION 4

LOCATION 5

HUMAN CAPITAL 6

HIGHER EDUCATION AVAILABLE IN THE COUNTY 7

COST-COMPETITIVE BROD-POSAVINA COUNTY 7

MANUFACTURING TRADITION IN BROD-POSAVINA COUNTY 8

BUSINESS ENVIRONMENT IN BROD-POSAVINA COUNTY 9

READY-MADE INVESTMENT LOCATIONS 11

ATTRACTIVE INVESTMENT INCENTIVES 16

LOCAL/REGIONAL INVESTMENT INCENTIVES 17

INTERESTING FACTS ABOUT BROD-POSAVINA COUNTY 18

TABLE OF CONTENTS

4 5

Zagreb

Nova Gradiška

Slavonski Brod

Osijek

Slavonski Brod

Sarajevo

Belgrade

Budapest

LOCATIONThe County is situated in the Eastern Croatia in the southern part of the Slavonian plain, with river Sava as a

natural border with Bosnia and Herzegovina.

This particularly favourable geostrategic position, at the intersection of European transport corridors (X and Vc)

makes the County particularly suitable for the development of industry and economy.

RAILWAY PORT

AIRPORT

RAILWAY

HIGHWAY

LOCAL ROAD

LAND AREA

2,030 km2

COUNTY SEAT

Slavonski Brod

ADMINISTRATION

2 towns and 26 municipalities

POPULATION (EST. 2016)

151,012

CLIMATE

Continental

GDP PER CAPITA (2015)

€ 5,962

UNEMPLOYMENT RATE (2017)

22.4 %

AVERAGE MONTHLY GROSS SALARY (2016)

€ 942

BASIC INFORMATIONConveniently located along the river Sava, Brod-

Posavina County has a great investment potential

due to good traffic position, skilled people and

industrial tradition.

REGIONALHIGHLIGHTS

GREAT GEO-STRATEGIC

POSITION

SUPPORTING INSTITUTIONS FOR

BUSINESS DEVELOPMENT

YOUNG AND EDUCATED

WORKFORCE

COST

COMPETITIVENESS

54

PAN EUROPEAN CORRIDOR 10(Salzburg – Ljubljana – Zagreb – Belgrade – Skopje – Thessaloniki)(E-70 ZAGREB-BELGRADE)

SLAVONSKI BROD HARBOURLocated on the international waterway IV class, connected to road and rail infrastructure with international infrastructure corridors

INTERNATIONAL RAILWAY ROUTE(Munich – Ljubljana – Zagreb – Belgrade – Sofia)

AIRPORTOsijek airport is 90 km awayZagreb airport is 185 km awayBelgrade airport is 190 km awayTuzla airport is 140 km away

6 7

HUMAN CAPITAL

AVERAGE GROSS EARNINGS PER HOUR (2016)

0 5 10 15 20 25

Source: Eurostat Total Labour Costs, 2018; Croatian Bureau of Statistics, 2018

BROD-POSAVINA COUNTY

CROATIA

EUROPEAN UNION (28 COUNTRIES)

PRICE LEVEL INDICES FOR INVESTMENT (2017)

0 20 40 60 80 100

Source: Eurostat 2018

CROATIA

EUROPEAN UNION (28 COUNTRIES)

65 and more15-640-14

15 %

19 % 66 %

Source: Croatian Bureau of Statistics,

Population Estimates 2016

(the latest available data in 2018)

AGE STRUCTUREHIGHER EDUCATION AVAILABLE IN THE COUNTY• Mechanical Engineering Faculty Slavonski

Brod (J.J. Strossmayer University Osijek)

– graduate programmes in Mechanical

Engineering and Production Engineering; post

graduate specialist studies in Development of

Products and Technologies and PhD study in

Mechanical Engineering

• Slavonski Brod Polytechnic – Management;

Production Engineering; Eco Agriculture

and Rural Development; Plant Production,

Horticulture and Farming

• Faculty of Educational Sciences Slavonski

Brod (Pre-school education; Teachers

Studies)

• Lifelong learning: Technical School Slavonski

Brod offers programmes such as CNC

operator and management of solar energy

systems; Slavonski Brod Polytechnic offers

the CAMT programme (CISCO Academy), IT

professional–Microsoftcertifiedprogramme,

MCITP server administrator programme;

Mechanical Engineering Faculty offers short

programmes in the mechanical engineering

field.

COST-COMPETITIVECost competitiveness, in terms of initial investment costs, utility prices

and salaries, provides significant advantage that qualifies Croatia

and the Brod–Posavina County as an ideal destination for expanding

business activities, increasing the market share and improving

profitability.

Investment costs

33% lower

than EU28 average

THE LOWESTELECTRICITY PRICES

FOR INDUSTRIAL USERS

NATURAL GAS PRICESARE AMONG THE LOWEST

IN EUROPE

ALMOST 3X LOWERAVERAGE MONTHLY GROSS SALARY

THAN IN THE EU

One of the County’s development goals

is the continuous development of the

education system aligned with the

labour market needs, namely stronger

connection between educational and

business sectors.

The County continuously develops

lifelong programs and encourages

gaining the knowledge and skills needed

for industry and high value added

technologies.

ELECTRICITY PRICES FOR INDUSTRIAL CONSUMERS(€ PER KHW), 2017 S1

0,00 0,01 0,02 0,03 0,04 0,05 0,06

CROATIA

SLOVENIA

SLOVAKIA

BULGARIA

POLAND

EU 28

CZECH REPUBLIC

HUNGARY

Source: Eurostat 2018, the latest available data (70 000 MWh < Consumption < 150 000 MWh

8 9

BUSINESS ENVIRONMENTIN BROD-POSAVINA COUNTY

ĐURO ĐAKOVIĆ GROUPSlavonski Brod is a home to the Đuro Đaković Group, one of the biggest metal industries in the Southeast European region. The Đuro Đaković (ĐĐ) scope of activities include:• DEFENCE - main battle tanks and combat vehicles• TRANSPORT - railway cargo wagons• INDUSTRY AND ENERGETICS - industrial plants for oil and gas, chemical and

petrochemical industries, power generation plants, food industry, cement industry, metallurgy.

SAINT JEAN INDUSTRIES LTD.Saint Jean Industries Ltd. was established in 2002 as a first foreign subsidairy of Saint Jean Industries France.Since 1962 our group has consistently demonstrated the capacity to use innovation to deliver solutions that meet tehnical and cost specifications.Today, our expertise in manufacturing and the quality of our components are recognized throughout the world in many different industires: automotive, areonautics, energy, chemicals and more.Saint Jean Industries Ltd. manufactures aluminium parts for the automotive and industry sector.In 2017 we delivered 6,300,000 parts and melted 6,500T of aluminium.Our main clients are PSA Group, Renault, Land Rover, FCA Group, Porsche, Aston Martin etc.

ĐURO ĐAKOVIĆ MONTAŽAWith 90 years of tradition in steel construction, Đuro Đaković Montaža has a strong market position in construction of energy, petrochemical and industrial plants, as well as steel structures, focusing on investment and overhaul works, production, planning and “turnkey” installations. More than two thirds of revenues are earned through projects in the EU, with the majority in construction of bio-plants, waste-to-energy and plants for the reduction of emissions for leading global companies in the field of “green” technologies in the energy and industrial sectors. The company employs an average of 860 employees and is currently present in eleven EU countries.

ERGO STAPLESErgo staples Ltd is a family-owned company, producing staples since 1973. The company produces more than 1,500 different types of staples for upholstery, packaging, construction, agriculture industry etc., with yearly volume of 3,000 tonnes. They export 95% of their production and cover more than 30 countries. The company has an inhouse R&D department and is very friendly for requests for developing new products for various applications. The company is currently investing in a new production and warehouse facility for increasing the production by about 30% in 2019.

MANUFACTINGTRADITION IN BROD-POSAVINA COUNTY

The most represented business activities in

the County are the manufacturing/processing

industry, wholesale and retail and construction.

The processing industry has the largest part in

revenues from exports (predominantly metal

industry, followed by wood processing and

production of furniture, as well as chemical

products), with its most important export markets

in Bosnia and Herzegovina, Austria, France, United

Kingdom and Italy.

Key economy sectors in the county

Manufacturing industry

Wholesale and retail

Construction

Agriculture, forestry and fishery

Professional, scientific andtechnical activities

Other

Source: Financial Agency of the Republic of Croatia, Croatian Chamber of Economy 2018 (data for 2016)

Manufacturing industries

Manufacture of fabricated metal products

Wood processing industry

Repair and installation of machineryand equipment

Chemical industry

Manufacture of basic metals

Other

29.4%

11.2%

10.6%6.2%

36.4%

43.9%

15.1%

12.1%

9.2%

9.1%

Source: Financial Agency of the Republic of Croatia, Croatian Chamber of Economy 2018 (data for 2016)

8

6.2%

10.6%

S L A V O N S K I B R O D , H R V A T S K A

METAL INDUSTRY

ALUMINIUM PARTS PRODUCTION

STEEL CONSTRUCTION

WIRE STAPLES PRODUCTION

10 11

Nova Gradiška

Slavonski Brod

Osijek

CHROMOS SVJETLOSTThe company has nearly a century of tradition in the production and wholesale of paints and varnishes. Its products are of high standards and quality and are sold, in addition to Croatia, in regional and international markets in the European Union and the Russian Federation.In addition to consumer products, the company manufactures special-purpose and anticorrosion protection products, recognized by many domestic and foreign companies and institutions. The acquired knowledge and expertise in the production of paints and varnishes is continuously improved by the usage of modern technologies, while the range of products is regularly expanded in order to meet the needs of the market.

SIMPLEX LTD.The company’s main activities are construction and modernization of elevators, as well as production of specialized elevator mounting tools and components. Since its establishment 10 years ago, it has been providing installation and modernization services to the leading global elevator manufacturers, mainly in the European Union, including some of the tallest buildings in Europe. One of the company’s most recognizable references is complete installation of the next-generation elevator moving in both horizontal and vertical direction.

SIGMAT LTD.SIGMAT Ltd manufactures a wide range of welding oriented products, sold primarily on the Croatian market but it also has regional sales activities in neighbouring markets in Serbia, Bosnia-Herzegovina, Macedonia, Montenegro and Slovenia, as well as fledgling International markets in Poland, Norway, Hungary and Germany.The business consists of three core activities: (1) production and sale of company products, (2) wholesale agency activities and (3) sub-contracting production capacity to OEM to produce parts under contract in the range of stainless steel, raw steel, aluminium, copper, plastics and rubber.

MEDEXMEDEX produces metal furniture and furniture metal parts. The company employs 30 workers and exports more than 60% of its products. Through constant investment in new technologies and innovations, the company established a cooperation with leading companies that sell furniture, such as EMMEZETA, LUTZ XXL, and PRIMA, while the metal parts for furniture are exported to the biggest furniture makers in Germany, the Netherlands, Slovenia, Serbia and Bosnia-Herzegovina.

MOBILAR LTD.The Company’s main business activity is the production of upholstered furniture made of leather and other materials in its newly built furniture factory.

BUSINESS ZONE WEST (ZAPAD)

INDUSTRIAL PARK NOVA GRADIŠKA LTD.

10 READY-MADE BUSINESS ZONES

AND ADDITIONAL 7 IN DEVELOPMENT

≈4MILLIONSQUARE METERSAVAILABLE FOR INVESTMENTS

COST OF LANDSTARTS FROM

1.32 €/m2

SELECTED BUSINESS ZONES

BUSINESS ZONE “JELAS” RUŠČICA

THE PORT AUTHORITY SLAVONSKI BROD

Industrial Park Nova Gradiška

READY–MADE INVESTMENT LOCATIONS

Business zone Davor

BusinesszoneČapljaOriovac

BusinesszoneRižinopolje

Business zone Zapad

Business zoneKolonija

The Port Authority Slavonski Brod

Business zoneBjeliš zapad

Business zoneJelašRuščica

BusinesszoneDragalić

METAL FURNITURE PRODUCTION

PRODUCTION OF PAINTS AND VARNISHERS

CONSTRUCTION OF ELEVATORS

WELDING PRODUCTION

PRODUCTION OF UPHOLSTERED FURNITURE

12 13

Industrial Park Nova Gradiška Ltd.Business zone WEST (Zapad)

Location Slavonski Brod

Size of the zone (m2) 902,519

Available land size (m2) 767,141

Construction purpose Manufacturing and services

Allowed construction density 0.5

Constructionefficiencycoefficientallowed 1.0

Allowed construction height (m) 15

Infrastructure gas,electricity,water,sewage,waterpurifier

Location Nova Gradiška








Nova Gradiška

Slavonski Brod

Osijek

Nova Gradiška

Slavonski Brod

Osijek

14 15

The Port Authority Slavonski BrodBusiness zone “Jelas” Ruščica

Location Klakar

Size of the zone (m2) 1,470,000

Available land size (m2) 1,470,000





Infrastructure gas,electricity,water,waterpurifier

Location Slavonski Brod








Nova Gradiška

Slavonski Brod

Osijek

Nova Gradiška

Slavonski Brod

Osijek

16 17

UP TO

0%PROFIT TAX RATE

UP TO

€18,000EMPLOYMENT GRANTS

UP TO

€1MGRANTS FOR CAPITAL COSTS

UP TO

€0.5MFOR R&D

TAX

SUPPORT INSTITUTIONS FOR ENTREPRENEURS

CTR (Center for Technological Development) –

Development Agency of Brod-Posavina County (www.ctr.hr)

Business Incubators:

BISC - Business Innovation Support Center (BISC) Nova Gradiška (http://tehnopark.ipng.hr)

RaSB – Development agency of Slavonski Brod – www.ra-sb.hr

ATTRACTIVE INVESTMENT INCENTIVES• Up to 1 million € cash grant for capital costs of the investment project

• 0%corporateprofittaxfor10years

• Up to 18,000 € for each worker employed in Brod–Posavina County

• Up to 0.5 million € cash grant for investment in development and innovation activities

• EU funds available

• Guarantee scheme, up to 80% of investments, provided by the Croatian Agency for SMEs, Innovations and

Investments (HAMAG-BICRO)

• Subsidized business loans programmes by the Croatian Agency for SMEs, Innovations and Investments

(HAMAG-BICRO) with interest rates starting from 0.5%

• Subsidized business loans programmes (loan repayment up to 17 years provided by the Croatian Bank for

Reconstruction and Development (HBOR)

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LOCAL/REGIONALINVESTMENTINCENTIVES

Relief in the form of reduction/exemption of

payment of communal contributions:

• 100% for investments of more than 0.27 million

€, if employing at least 20 new employees

residing in Slavonski Brod

• 75% for investments with applied new

technologies, if employing at least 20 new

employees residing in Slavonski Brod







• 25% for investments in own manufacturing

facility, if employing at least 3 new employees


The town of Nova Gradiška has certain incentives for

entrepreneurs employing new workers.

These include:

• Exemption from the payments of communal

fee for investors investing more than 150,000 €

and employing more than 5 new workers (total

exemptioninthefirstyear,50%inthesecond

year and 25% in the third year).

• Exemption from the payment of communal

contributions: 100% exception for investments

of more than 6.7 million € and employment of 60

new workers; 75% for investments of 4.3 million

€ and employment of 30 workers; 50% for

investments of 1.15 million € and employment

of 15 workers; and 25% for investments of

270,000 € and employment of 7 workers.

SLAVONSKI BROD NOVA GRADIŠKA

18 19

AGENCY FOR INVESTMENTS AND COMPETITIVENESS THE GOVERNMENT AGENCY

• Professional service for investors, free of charge• Highly motivated team of experienced professionals• Provides information, contacts and investment management support to potential investors as well as pre- and

post- investment care

Zdenko Lucić, Managing DirectorE: [email protected]

A: Prilaz Gjure Deželića 7, HR-10000 Zagreb, CroatiaT: +385 (0)1 6286 800E: [email protected]: www.aik.invest.hr

BROD-POSAVINA COUNTYA: Petra Krešimira IV, br. 1, HR-35000 Slavonski Brod, CroatiaT: +385 35 216 111E: [email protected]: www.bpz.hr

CITY OF SLAVONSKI BRODA: Vukovarska 1, HR-35000 Slavonski Bord, CroatiaT: +385 35 217 000E: [email protected]: www.slavonski-brod.hr

CTR – DEVELOPMENT AGENCY OF BROD-POSAVINA COUNTYCTR operates as a “One Stop Service Centre” which assists foreign and domestic investors in establishing or expanding their business – at every stage of the process.

Wide range of activities:• Research and development work• Business, technical, financial, legal and educational services• Preparation of pre-investment and investment studies and business plans, investment assistance and monitoring etc.

A: Trg pobjede 26a, HR-35000 Slavonski Brod, CroatiaT: +385 35 637 200E: [email protected]: www.ctr.hr

RaSB – DEVELOPMENT AGENCY OF SLAVONSKI BRODProvides services to the City of Slavonski Brod and other self-governments and entrepreneurs:• Preparation work for all types of projects to attract EU funds• Providing information and advisory support in the implementation of incentives• Advisory assistance in establishing and identifying the content of activities in business zones etc.

A: Vukovarska 1, HR-35000 Slavonski BrodT: +385 35 217 090E: [email protected]: www.ra-sb.hr

INTERESTING FACTS ABOUTBROD-POSAVINA COUNTYTHE BROD FORTRESSThe Brod Fortress is the most important historic building in the Slavonski Brod, Brod-Posavina County. Although located

in the very centre of today’s Slavonski Brod, its monumental size makes it look almost unreal.

The Fortress, whose construction began in 1751, took almost sixty years to build. It was built upon impetus of Prince

Eugene of Savoy as part of a system of fortifications in the north-eastern part of Croatia. The Fortress was designed

for accommodating 5,000 soldiers. Huge moats, bastions and accompanying buildings stretched over an area of two

square kilometres, far surpassing in size the town of Brod which was spreading to the east of the fortress.

IVANA BRLIĆ-MAŽURANIĆThe town is also known for the world famous children’s writer Ivana Brlić Mažuranić, who spent her most productive

years in Slavonski Brod. Every April, the Slavonski Brod hosts a manifestation called In the Fairy-tale Word of Ivana Brlić

Mažuranić, which offers an abundance of content aimed at children, such as acting, artistic and computer workshops,

stage shows, playing activities, storytelling, meetings with writers, galleries, musical theatre programmes, etc.

Slavonski Brod FortressPhoto: Ivo Biočina, Croatian Tourist Board

Patria military vehicle produced in Slavonski Brod – Croatia

Photo: Đuro Đaković Special Vehicles

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