June 2012June 2012

Invest MacedoniaInvest Macedonia

•• Mission: Mission: - to win new investment projects into Macedonia and support the expansion of

the existing base of overseas companies in the country. To deliver value to

investors by using our broad knowledge of the Macedonian business

environment and market segments, country-wide connections and a broad

network of partners.

•• Vision:Vision:•• Vision:Vision:- to become the best and most professional IPA in Europe and to contribute a

significant percentage of Macedonia’s FDI inflows. To be recognized not as a

government organization but as a pro business service provider

•• 4 Main functions:4 Main functions:1. Country promotion

2. Investor Servicing

3. Aftercare

4. Export promotion

Promotion of MacedoniaPromotion of Macedonia

One of the core activities of Invest Macedonia is to widely promote

the business climate of the country, its political, monetary and

macroeconomic stability by:

• Media campaign (global TV-networks and newspapers)

• Specialized editions and brochures

• Network of economic promoters (direct marketing)

• Business forums, fairs and road shows

Our Services Our Services –– Investment ProcessInvestment Process

Evaluation

& Strategy

• Business opportunity analysis

• Identification of supplier base

• Identification of project-specific location factors

• Cost analysis

• Site pre-selection

• Organization of meetings with state and local authorities

• Organization of meetings with legal advisors and financial partners

Decision &

Investment

• Site visit organization

• Final site decision support

• Incentives negotiations and establishment of formalities

Aftercare

• Support with relevant tax and legal issues

• Coordination and support of negotiations with other state and local authorities

• Support with your future expansion or reinvestment needs

44 mainmain sectorssectors identifiedidentified withwith greatestgreatest exportexport potentialpotential

Metal and Precise machinery industry inc. automotive components

ICT

Textile industry

Agribusiness/Food industry

Our Services Our Services –– Export PromotionExport Promotion

MainMain activitiesactivities includeinclude::

• Support and assistance for attendance on international fairs

• Organization of B2B events

• Organization of trade missions

• Country and market analysis

• Creation of data bases of Macedonian companies from different

industries

goal: INCREASING THE VALUE OF EXPORTS

• 26 economic promoters in 22 countries

• Europe: Sweden, Italy, UK, Germany, France, Austria, The

Netherlands, Belgium, Turkey, Poland, Russia, Croatia, Serbia,

Albania

• Asia: China, Japan, India, Qatar, Kazakhstan

Economic promotersEconomic promoters

• Americas: USA, Canada, Argentina

INVESTMENTINVESTMENTOPPORTUNITIESOPPORTUNITIESOPPORTUNITIESOPPORTUNITIES

Investment OpportunitiesInvestment OpportunitiesTarget SectorsTarget Sectors

Machine and Automotive components

ICT

Medical Devices and Pharmaceuticals

Agribusiness and Food ProcessingAgribusiness and Food Processing

Energy sector

Mineral Resources

Textile

Tourism

Investment OpportunitiesInvestment OpportunitiesMachine and Automotive Components IndustryMachine and Automotive Components Industry

• Existing engineering and manufacturing

tradition

• Legacy of skills available to new investors

• Component production started in the 1960’s to

supply Zastava, Serbia

• Companies primarily supply the aftermarket• Companies primarily supply the aftermarket

• Johnson Controls, Johnson Matthey, Kemet,

Teknohose, SMR, (Free Economic Zones)

Kromberg & Schubert, Hi-Tech to supply OEM’s

• Markets are Europe, Russia, Turkey, Africa

• Most companies have ISO 9001 / TS 16949

quality certification

Investment OpportunitiesInvestment OpportunitiesAgribusiness and Food Processing IndustryAgribusiness and Food Processing Industry

• Agribusiness is one of the fastest growing

sectors with more than 10% increase over the

past three years

• More than 400.000 people make whole or

part of their income from agriculture

activities

• Sector comprises 16% of national GDP

• 18.4% increase of exports in 2010

• Excellent supply

• 297 agricultural enterprises

• 192,378 family owned agricultural holdings

• EU Standards applied

Investment OpportunitiesInvestment OpportunitiesAgribusiness and Food Processing IndustryAgribusiness and Food Processing Industry

• Winegrowing and wine production accounts

for ~20% of total agricultural GDP

• More than 80 existing wineries

– Total capacity: 2,338,476hl

Wine ProductionWine Production

– Total capacity: 2,338,476hl

– Production: 100,000,000l

• Domestic cellars purchased 115,542,000kg

wine grapes in 2010

• Domestic consumption of ~15l per

inhabitant

• Major export markets: Germany, Slovenia,

Serbia, USA, Russia, China

Investment OpportunitiesInvestment OpportunitiesTextile sectorTextile sector

• Esteemed reputation of Macedonian textile

producers on the European Union market

• High flexibility and readiness to adapt to the

demands of foreign markets

• Exceptional relation between product quality

and costsand costs

• Modern equipment

• 1-2 days distance to European Union markets

• Foreign investment welcomed in the ready-

made clothing and knit production industries

Investment OpportunitiesInvestment OpportunitiesHealthcare Healthcare Sector, Medical Sector, Medical Devices Devices and Pharmaceuticalsand Pharmaceuticals

• Existing pharmaceutical industry exports to

over 30 countries worldwide

• Strong educational system, with an

abundance of medical and pharmacy

graduates

• Supportive regulatory environment • Supportive regulatory environment

• Licensing arrangements in place with many

of world’s leading pharmaceutical

companies

• Availability of serviced industrial sites

• Manufacturing tradition

Investment OpportunitiesInvestment OpportunitiesICT SectorICT Sector

• Best telecommunication networks in the

region – the system is 100% digital

• Leading multinational hardware and

software suppliers (Microsoft, HP, IBM)

have local sales and support services in

Macedonia

• 100,000 PCs for every school child; free

internet sessions provided by the internet sessions provided by the

government

• IT skills shortage in Western economies

and growing demand for outsourcing

services – Macedonia can be your

solution!

• Availability of well-educated staff at

competitive costs

• Quality assurance and standardization

procedure intitialized

Investment OpportunitiesInvestment OpportunitiesMineral ResourcesMineral Resources

• Wide range of mineral resources

– Metals: Iron, Copper, Lead, Zinc, Gold,

Silver Ferronickel, Ferrosilicon,

– Non-metalic resources: Marble, Granite,

Onyx, Gypsum, Limestone, Quartz, Silica,

Marl, Bentonite, Feldspar, Clay

• 7.4% sector growth in 2011

• 18.5% of Macedonian industrial output

• Sector employs 6% of total employees in

Macedonia

• Strong mining tradition

Summer Destinations

• Numerous tectonic, glacial and man-

made lakes, 50 in total

• Large Ohrid, Dojran and Prespa lakes

• Wartersports, archeological, wine,

eco and rural tourism

• In 2011, increase in foreign tourists

Investment OpportunitiesInvestment OpportunitiesTourismTourism

• In 2011, increase in foreign tourists

from EU of 38%

Winter Destinations

• Over 45 mountain peaks over 2.000m

• Around 70% of the territory is

mountainous, many locations have

more than 100 days of snow

• Opportunities for development and

enhancements of hotels and resorts

on many locations

TECHNOLOGICAL INDUSTRIAL TECHNOLOGICAL INDUSTRIAL DEVELOPMENT ZONESDEVELOPMENT ZONES

(TIDZs)(TIDZs)(TIDZs)(TIDZs)

Investment OpportunitiesInvestment OpportunitiesFree ZonesFree Zones

Free Zone Tetovo

Area Size: 95 ha;

Distance from Skopje - 35 km

Free Zones Skopje 1 & 2

Area Size: 145 + 95 ha;

E-75 Highway;

Next to the Int’l Airport

Free Zone Rankovce

Area Size: 40 ha;

Corridor 8

Free Zone Stip

Area Size: 208 ha;

The largest Free Zone;

Excellent logistic support

Free Zone Radovis

Area Size: 10 ha;

Main Road M6

Free Zone Strumica

Area Size: 23 ha;

Free Zone Gevgelija

Area Size: 50 ha;

85 km from the port of

Thessaloniki

Free Zone Prilep

Area Size: 68 ha;Between Prilep and Bitola

(4th and 2nd largest city)

Free Zone Struga

Area Size: 30 ha;

Next to the Int’l Airport;

170 km from Durres port

Free Zone Kicevo

Area Size: 30 ha

TAXTAXTAX RATESTAX RATES

TIDZsTIDZs Outside TIDZsOutside TIDZs

Corporate tax0%

for the first 10 years10%

Personal income tax0%

for the first 10 years10%

Value added tax 0% 18%

PRODUCTPRODUCTCUSTOMS DUTYCUSTOMS DUTY

TIDZsTIDZs Outside TIDZsOutside TIDZs

Raw materials 0% Up to 15%

Equipment 0% 5% - 20%

Fiscal BenefitsFiscal Benefits

Investment OpportunitiesInvestment OpportunitiesTechnological Industrial Development Zones Technological Industrial Development Zones -- TIDZs TIDZs

• Connection to utilities

• Subsidy of up to €500,000 towards building costs

• Green Customs Channel available at border for rapid export

from Zone to EU countries

• Land in a TIDZ in Macedonia is available under long-term lease

for a period of up to 99 years

Property tax 0.1% - 0.2% 0.1% - 0.2%

Excise taxes 0% 5% - 62%

TIDZ TIDZ ““““““““Skopje 1Skopje 1””””””””

JOHNSON CONTROLS

• $40mn automotive components plant;• 150 employees initially – increasing to 500;• Integrated circuits

JOHNSON MATTHEY

• €55mn investment• over 500 employees• catalyst production

KEMETKEMETJOHNSON CONTROLSJOHNSON MATTHEY

TEKNOHOSE TEKNOHOSE ANNOUNCING BEGINNING OF ANNOUNCING BEGINNING OF

CONSTRUCTION WORK IN TIDZ CONSTRUCTION WORK IN TIDZ ““““““““SKOPJE 1SKOPJE 1””””””””

KEMETKEMETSIGNING OF THE AGREEMENTSIGNING OF THE AGREEMENT

PRODIS GROUP PRODIS GROUP ANNOUNCING BEGINNING OF ANNOUNCING BEGINNING OF

CONSTRUCTION WORK IN TIDZ CONSTRUCTION WORK IN TIDZ ““““““““SKOPJE 1SKOPJE 1””””””””

SAMVARDHANA SAMVARDHANA MOTHERSON GROUP MOTHERSON GROUP ANNOUNCED BEGINNING OF CONSTRUCTION ANNOUNCED BEGINNING OF CONSTRUCTION

WORK IN TIDZ WORK IN TIDZ ““““““““SKOPJE 1SKOPJE 1””””””””

Thank YouThank You

AGENCY FOR FOREIGN INVESTMENTS AND EXPORT PROMOTION AGENCY FOR FOREIGN INVESTMENTS AND EXPORT PROMOTION OF THE REPUBLIC OF MACEDONIAOF THE REPUBLIC OF MACEDONIA

Nikola Nikola VapcarovVapcarov 77

1000 Skopje1000 SkopjeRepublic of MacedoniaRepublic of Macedonia

Tel.: Tel.: + 389 2 31+ 389 2 3100 11100 111

Fax: + 389 2 3122 098Fax: + 389 2 3122 098

ee--mail: mail: fdi@investinmacedonia.comfdi@investinmacedonia.com

web: web: www.investinmacedonia.comwww.investinmacedonia.com

International Office SwedenInternational Office Sweden

Katerina Orovchanec

Head of International Office - SwedenAgency for Foreign Investments and Export Promotion of Agency for Foreign Investments and Export Promotion of the Republic of Macedonia

Riddargatan 35 , 114 57 Stockholm

Kingdom of Sweden

T: + 46 8 661 18 30

F: + 46 8 661 03 25

M:+ 46 73 326 2968

E-mail: katerina.orovcanec@investinmacedonia.com

sweden@investinmacedonia.com