Why Invest in

Nis?

2018

Macro Economics

WELCOME TO NIS!

Source: Pictures taken from: visitnis.com

BRIEF OVERVIEW OF NIS

It is a 3rd largest city in Serbia and an economic, administrative, health, educational and cultural center of South-East Serbia

3,275

Number of Active

Business Enterprises

350 €

Average Net Salary

(2017)

170,929 Working Age Population

(est. 2017)

26,046 Registered Unemployed

(June 2018)

596 km2

Area

256,825 Number of Inhabitants

(est. 2017)

Source: Statistical Office of the Republic of Serbia; National Employment Agency: Business Registers Agency

CONNECTIVITY

Nis has an excellent and important strategic position- it is a major European crossroad connecting Southern branches

of Corridor X- one leading to Greece and the other towards Bulgaria and than further Turkey and Middle East

CONNECTIVITY

Motorway A1 (0 km away)

Belgrade, Serbia (240 km)

Niš, Serbia (0 km)

Corridor X (0 km away)

Accessibility overview:

Nis Area accessibility:

CONNECTIVITY

Destination Distance from Nis (km) Estimated Travel Time

Niš Airport 5 11 min

Belgrade City Center 240 2 h 30 min

Belgrade International Airport 250 2 h 50 min

Sofia, Bulgaria 170 2 h 20 min

Skopje, Macedonia (FYROM) 210 2 h 40 min

Thessaloniki, Greece 410 4 h 40 min

Budapest, Hungary 610 6 h 10 min

Vienna, Austria 850 8 h 30 min

Istanbul, Turkey 730 8h

CONNECTIVITY- AIRPORT IN NIS

International Airport Constantine the Great is the second largest airport (passenger

and cargo) in Serbia.

The expansion in traffic began in 2015 when low-cost airlines Wizz Air and Ryanair

lounched their flights

After these events airport experienced triple-digit growth in passenger traffic,

exceeding the previous record figure

On October 2016, Turkish Cargo (part of Turkish Airlines) commenced scheduled

cargo service between Nis and Istanbul

Airport in Nis will continue to develop, and the planned investments of the state in

that airport are 7.5 million euros

Airline companies Destinations from Airport

Wizz Air (offers 5 direct flights) Malmo, Eindhoven, Dortmund, Basel, Memmingen

Ryanair (offers 5 direct flights) Berlin/ Schonefeld/, Milan/Bergamo/, Bratislava,

Dusseldorf/Weeze/ and Stockholm

“SWISS” and “Germania Flug AG” Offer flights to Zurich

Turkish Cargo (cargo flights) Istambul-Nis-Istambul

Living and Tourism

LIVING AND TOURISM

Source: Pictures taken from: visitnis.com

LIVING AND TOURISM

Nis offers all of the advanteges of modern city and at the same time surounded by the amazing

natural scenary

In the area Nis Spa, Sicevacka gorge, Suva mountain are just some of the must-visit nature

attractions

As one of the oldest cities in Europe, Nis is a rich of historical treasures such as Nis fortress, Cele

Kula, Medijana etc, and it is also the home town of famous Roman emperor Constantine the

Great who represents one of the key figures in the history of Europe and Christianity

Besides historical monuments and attractions, Nis offer dynamic everyday life with numerous

festivals, cultural and sport events such are: Nisville Jazz festival, Film festival, International

Choral Festival and etc.

LIVING AND TOURISM Tourist traffic

Total jan-dec

2016

Total jan-dec

2017

Total jan-dec

2016

Total jan-dec

2017

arrivals % number of nights % Total 85048 106884 +26% 160947 188730 +17%

Domestic tourist

40419 46848 +16% 90175 95467 +6%

Foreign tourist

44629 60036 +34,5% 70772 93263 +32%

Why Invest?

• In February 2018, Financial Times fDi Magazine published its ranking of economic, financial and business strengths of cities and regions in the Europe region – ‘European Cities and Regions of the Future 2018/19’.

• It identifies locations with the most promising prospects for inward investment, economic development and business expansion

• Category: FDI Strategy, small european cities (less than 500.000 inhabitants)

WELCOME TO NIS European City and Region of the Future 2018/19’.

Nis region City of Nis

3rd 7th

WELCOME TO NIS the champion of local development

In July 2018, The City of Niš has been awarded the Local Development Champion Award for 2018/19 for best practice in attracting investors. In the framework of the joint project by NALED and the Development Agency of Serbia, awards were given to prominent individuals, towns and municipalities that contributed to the development of local self-governments

2 Available

Qualified

Labor Force

3 Competitive

Operating

Costs

1 Industrial

Heritage

4 Technology

And engineering

Hub

5 High Priority

Government

Location

• Before WWII the local economy started developing through textile, machining and tobacco industry

• In the period between 1960—1990 economy started blooming- the companies such as Electronic Industry, Tobacco Industry,

Machining Industry, Niteks, Vulkan, Nis brewery, Bank of Nis, etc. grew into the economic giants and in 1981 GDP per capita

was at 110% of Yugoslavia average

• Since the beginning of the interior turmoil, dissolution of Yugoslavia, sanctions, Nis economy started deteriorating- production

halved, many people lost their jobs, etc. but during the last 15 years Nis stared to regain its former industrial glory

INDUSTRIAL HERITAGE

Company Name Products manufactured Number of employees

in 1989

Current number of

employees Current status

Company

“Electronic

industry”

From semicondutor to home

appliances and electromedical

appliances

20 000 0 does not exist

Company

“Machinery

industry“

From machine structures to

reconstruction of wagons and

locomotives

20 000 300 mostly in bankruptcy or

sold

Jastrebac Pumps factory 1 700 0 bankruptcy

Nisal Aluminum processing 1 000 300 privatized

DIN Tobacco industry 1 500 800 Privatized-Philip Morris

internationa

Nitex Textile industry 1 500 2 000 Privatized-

Olimpias/Beneton

TOTAL 45,700 3,400

INDUSTRY TODAY

12.761

3.012

3.087

3.171

3.960

5.313

6.318

8.241

13.793

17.572

77.228

0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000

Other

Administrative and supporting services

Food industry and accomodation

Professional, scientific, innovation and…

Public Administration and Social Security

Transportation and Storage

Education

Human Health and Social Work

Wholesale and retail

Manufacturing

Registered employment

Registered Employed, City of Nis (avg. 2017)

Most of the people are employed in manufacturing sector

INDUSTRY TODAY- TOP EMPLOYERS

2,200

1,600/

3,400

Shinwon- Yura Eltech Automotive

700

Philip Morris International Tobacco

800

Source: City of Nis

Integrated Microelectronics Electronics

100/

1,250

Aster Textile Textile

700/

2,000

Zumtobel Lights

200/

1,100

FDI

FDI

FDI - Foreign Direct Investment Note:

FDI FDI

FDI FDI

FDI

FDI

LEONI WIRING SYSTEMS Automotive

1,300/

2,200

Johnson Electric Electronics

YURA Corporation Automotive

FDI Benetton/Olimpias Textile

2,000

Niš Ekspres Transportation

1000

Company profile Company Overview

• Johnson Electric, global provider of electrical motors, started

operating in Serbia in 2013 with building its initial 10,000 m2

production facility

• Based on the success of its first project, the company is

targeting 65 million euros total investment

• Total 3,400 workers will be employed in Nis by the end 2021

• The facility in Nis will have production capacity of 5 million

electrical motors

• Total exports are expected to reach 190 million euros and are

intended for EU customers such as Mercedes, BMW and

Renault

COMPANY IN SPOTLIGHT

Company profile Company Overview

• As part of their global expansion strategy, Integrated Micro-Electronics company decided to set up their operations in Serbia

• IMI is part of Ayala corporation with 10 billion euros turnover

• The facility will produce electronic components for automotive and IT industries

• The total investment is estimated at 32 million euros, while the company plans to employ around 1,500 by the end of the project implementation

• Around 500 engineers will be employed in production and product development

• The company is also promoting Serbia as investment location for its partners and suppliers

COMPANY IN SPOTLIGHT

Company profile Company Overview

• The Austrian producer of lighting devices and components will

be employing mostly engineers, and the factory started its test

production in 2018

• The value of the investment in the Zumtobel plant in Suvi Dol

near Nis is around EUR 31 million

• Total area of production facilities is 40,000 m2, where the

company will employ at least 1,100 people

• Part of the staff will be working on research and development

of new product lines

• Also, secondary schools and faculties as source of fresh ideas

and labour are closely cooperating with Zumtobel

COMPANY IN SPOTLIGHT

AVAILABLE QUALIFIED LABOR FORCE

Included are secondary schools in Nis.

Secondary Schools Main Study Programs Total enrolled

students

Technical Schools

Electronics, IT, Auto mechanic, Machinery operator,

Computer control (CNC) technician, Energetics,

Cooling systems, Robotics

3,384

Schools of Economics, Administration and

Trade

Business Administration, Financial Administration,

Commercial, Legal Administration 2,446

Gymnasiums Natural and Social Sciences studies, Special courses

for students with interest in IT 3,032

Other Art, Music, Medicine, Catering, Fashion and Beauty,

Trade 3,223

TOTAL 12,085

Source: City of Nis

AVAILABLE QUALIFIED LABOR FORCE

Higher education in Nis

Universities Faculties

University of Nis

Faculty of Civil Engineering and Architecture; Faculty of Economy/ Faculty of Electronic

Engineering; Faculty of Mechanical Engineering; Faculty of Sciences and Mathematics/ Faculty

of Law; Other (Occupational Safety, Fine Arts, Medicine, Philosophy)

Metropolitan University Faculties: Information Technology, Business, Digital Design

Singidunum University Centre Nis – Faculties: Business Economy, IT, Tourism

University Union Law and Management

Source: City of Nis

• Nis is among most important and largest university and engineering centers in Serbia

AVAILABLE QUALIFIED LABOR FORCE- CITY OF NIS

2.659

6.092 5.860 5.922

5.513

1.128

3.086 2.882

3.031

2.064

1.531

3.006 2.978 2.891

3.449

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

15-24 25-34 35-44 45-54 55-65

Unemployed by age group and gender – June 2018

Total Women Men

AVAILABLE QUALIFIED LABOR FORCE-CITY OF NIS

4.239

15.611

6.196

Unemployed – EducatIonal Level

Primary School Education

Secondary School Education

Higher and High Education

16%

60%

24%

5.508

9.045

11.493

Unemployed – Duration of Unemployment

0-6m 6m - 3y 3y+

44%

21%

35%

AVAILABLE QUALIFIED LABOR FORCE- AREA

3.559

7.389 7.447

7.865

6.894

1.531

3.709 3.669 3.974

2.460 2.028

3.680 3.778 3.891 4.434

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

15-24 25-34 35-44 45-54 55-65

Unemployed by age group and gender – June 2018

Total Women Men

7.276

19.360

6.518

Unemployed by level of education

Primary Secondary Higher and High

58%

22% 20%

Note: Nis area encompasses Nis+ municipalities within 30km: Zitoradja,Doljevac,Merosina and Gadzin Han

Labor Cost Calculation Amount

Average Net Salary (Nis) 350 €

Contributions and Taxes (Employee) 135 €

Contributions and Taxes (Employer) 87 €

Total Contributions 221 €

Average Total Salary Cost (Nis) 571 €

Average Total Salary Area (Nis + 30km) 559 €

610 599

633 617

597 608

641

534 517

554 549 525

543 571

200

250

300

350

400

450

500

550

600

650

700

2011 2012 2013 2014 2015 2016 2017

TOTAL SALARY COST (EUR)

Republic of Serbia Nis

Source: Statistical Office of the Republic of Serbia; RAS calculations Note: Nis Area is Nis + 30km: Nis, Zitoradja,Doljevac,Merosina and Gadzin Han

COMPETITIVE OPERATING COSTS – LABOR COST

0,92 EUR/m3 0,17 EUR/m3 0,067 EUR/kwh 0,23 EUR/m3

WATER SEWAGE ELECTRICITY GAS

All prices are average and do not include VAT

COMPETITIVE OPERATING COSTS – UTILITIES

Technology and Engineering Hub

TECHNOLOGY AND ENGINEERING HUB

• In the period 1948-1990 Nis was the leader in electronics manufacturing in the Region

• At the beginning of the 1980s, electronic industry employed more than 28,000 workers and products were exported

all over the world ($ 600 million a year).

• The center was the EI company (appliances, air-conditioners, medical equipment, X-ray machines, acoustic

equipment, printed plates, electronic machine elements, hydraulics, pneumatics,etc.)

• Since 1991 started major difficulties and falling of production due to dissolution of Yugoslavia, sanctions etc.

• Today, there are more than 150 companies with around 3000 workers in advanced technologies

• Most important pillar of tech and engineering today are Faculty of Electrical and Faculty of Mechanical Engineering

TECHNOLOGY AND ENGINEERING HUB

Faculty Departments No.

students

Mechanical

Engineering

Mechatronics; Natural-Mathematical Sciences; Mechanics; Thermotechnics, Thermo Power and Process

Engineering; Hydropower; Mechanical Engineering, Development and Engineering; Production-Information

Technology; Management in Mechanical Engineering etc. 1,500

Electrical

Engineering

Control Systems; Computer Science; Electronics; Electric Power Engineering; Mathematics; Microelectronics;

Telecommunications; Theoretical Electrical Engineering 1,700

TOTAL 3,200

IT COMPANIES IN THE CITY OF NIS

• Ates Soft • Jakov Sistem • Acto team • ION Code • Prizma Software • CDS Digital Marketing • Joombooz d.o.o • Max Code • FAZI • HTEC Group • Team Logic • Peaksel d.o.o • Skyneting d.o.o • Web Hosting Srbija • Ninet Company • Kraftwerk International d.o.o • Strategy • Ates Nearsourcing • Seavus d.o.o • LMB Soft • Mihajlovic Soft • Mikelsen • Better Collective • ING Software • Webelinx • Logic

Now - more than 150 companies with arround 3000 workers in advanced technologies, with vision to become City of advanced technologies again.

FACULTY OF ELECTRONIC ENGINEERING

FACULTY OF MECHANICAL ENGINEERING

PRIVATE UNIVERSITIES

1. SINGIDUNUM * FACULTY OF COMPUTER SCIENCE AND COMPUTING • Development of mobile applications • Security in cyberspace • Information technology * FACULTY OF TECHNICAL STUDIES • Engineering Management • Software and information engineering

2. METROPOLITAN * FACULTY OF INFORMATION TECHNOLOGY • Information technology • Information systems • Software Engineering • Computer Games

• Nis is among the most important university and R&D centers in Serbia

• Research work is performed at all faculties of the University of Nis, in the areas of basic, applied and

development scientific research.

• Many faculties of Nis University have, within their own organizational units, research labs and innovation

centers, providing professional and technical support as well as other scientific research related services

• Examples of centers:

- Scientific and research work and development

- Innovation activity

- Quality assurance

- Engines and Motor Vehicles

- Welding and Welding Structures

- Development and Design of Machines

- Nonlinear Dynamics and Active Structures

- Development and design of machines

- Abrasive Water Jet Cutting (AWJC)

- Innovation Center for Application and Development of Innovative Technologies

TECHNOLOGY AND ENGINEERING HUB

Research and Development- Higher education in Nis

TECHNOLOGY AND ENGINEERING HUB

Science-Technological Park project – in implementation

Phase 1 - Student center for innovative entrepreneurship

- creating conditions and creating an environment for the development of innovative start-ups

Phase 2 - Multi purpose Lab annex within the Faculty of Electronics

- Space for mutual project implementation (students, professors, private sector)

Phase 3 - Building and creation of the Scienctic-Technological Park

- provide space and innovative equipment to start ups and reduce initial investment costs

High Priority Government Location

HIGH PRIORITY GOVERNMENT LOCATION

• Nis is the 3rd largest city in Serbia and financial, educational, industrial, commercial, administrative and

cultural center of Southern and Eastern Serbia Region

• The position of Nis is strategically important, at the intersection of European highway and railway networks

connecting Europe with Asia

• As such is the regional center for 1,5 million inhabitants (according to the last estimations) and it is in

constant focus of the development strategy of Government of the Republic of Serbia

• Many important infrastructure and other investment projects were inititated/finished during the last years:

• Corridor X highway, Clinical Center Nis, Nis Airport Development etc.

• Many foreign investors have chosen Nis recently as their investment location: Integrated Micro

Electronics, Zumtobel, Leoni, Aster Textile, while others such as Johnsons are constatly expanding

their business

• Government will continue with the development strategy for Nis, especially in terms of developing Nis as

engineering, technological and manufacturing hub of South Serbia

HIGH PRIORITY GOVERNMENT LOCATION

Railway bypass around Nis

HIGH PRIORITY GOVERNMENT LOCATION

Waste water treatment plant

• Value of the project: 60 mil. EUR • Source of funding:City of Niš participated,donated by SIDA/EPTISA

HIGH PRIORITY GOVERNMENT LOCATION

Clinical Center

• Value of the project : 50 mil. EUR • Source of funding: European Investment Bank loan

Conclusion

• Nis is one of the most important economic, administrative, cultural and educational centers in Serbia

• It has more than 250,000 inhabitants and around 26,000 of unemployed people of all age groups and education level

• It has also an excellent strategic position since it is located on the Corridor X, main highway in Serbia, and it is also a crossroad leading to Bulgaria and Macedonia which enables further access to Greece and Turkey

• Nis has an excellent local government team and recently many investor have chosen Nis to set up their businesses

• In addition, it offers many available greenfield and brownfield locations

CONCLUSION

• With all of the above it is one of the most attractive investment locations

" Our decision (to invest in Serbia) was based on a high confidence to find a very motivated and skilled

workforce, to have optimal logistics conditions from and to the other European countries, to develop an intense

cooperation with technical high schools and universities and to build a strong partnership with the national and

local authorities "

Mr. Laurent Cardon, General Manager Operations Europe, Johnson Electric

CONCLUSION

"Leoni has chosen Niš as the location for its third factory in Serbia for several reasons. One of the most

important is the large free labor market, which is necessary for the realization of production activities.

Additionally , the city of Niš and all relevant city institutions have given us great extraordinary support. I am

personally more than satisfied and happy that Leoni has chosen Nis. That was the best decision! "

Mr. Klemens Saks, General Manager of LEONI Wiring Systems Southeast d.o.o

CONTACT US!

City of Nis - Office for Local Economic Development and Projects

Tel/Phone + 381 18 209 239, 209 240

kler@gu.ni.rs

https://www.ni.rs/en/

http://www.investnis.rs/

Development Agency of Serbia

Kneza Milosa 12, 11 000 Belgrade

P: +381 11 3398 900

office@ras.gov.rs

www.ras.gov.rs/en