central and eastern europe virtual roundtable for uk ... · • financial support for investment...
TRANSCRIPT
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 1
Hosted by SMMT, Santander and Department for International Trade
Central and Eastern Europe Virtual Roundtable for
UK Automotive Suppliers
June 2020
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 2
Thank you to the following organisations for providing their in-market
expertise:
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
PAGE 3
The Society of Motor Manufacturers and Traders
SMMT is the voice of the UK motor industry
supporting and promoting its members’ interests, at
home and abroad, to government, stakeholders and the
media.
SMMT International supports UK companies to grow
globally
• Focus on key markets
• International delegations focused on different
automotive sub sectors
• Member services including data, committees, events
and networking opportunities
Contact:
www.smmt.co.uk/international
Santander – Corporate & Commercial Banking
1
Paul Brooks
UK Head of Manufacturing
& Automotive
e-mail: [email protected]
Paul is leading Santander UK’s strategy across the manufacturing sector.
Having worked with SMEs in the Banking industry for 30 years, his keyresponsibilities include building strong relationships with industrybodies and supporting organisations. By understanding the challengesfaced by UK Manufacturers he is developing a unique proposition offinancial and non-financial solutions that address these and open upopportunities both in the UK and internationally.
Magdalena Crosa
Poland / Germany / CEE Desk Director,
Santander UK
e-mail: [email protected]
Magda has 15 years’ experience in banking, beginning in Abbey’s Head
Office in Glasgow as Business Banking Advisor and progressing quickly
through various roles.
In September 2007 her role has changed and she joined Saving & RetentionTeam which was dealing with acquisition of new business reserve accountbalances, retention of deposits and she became a main point of contact forRelationship Managers across the UK. The team was single the mostimportant department dealing with liabilities.
The success in that role allowed her to apply for Relationship Managerposition in London and after 2 years in that role she become RelationshipDirector for Corporate Banking. She had her first baby in October 2014 andafter coming back from maternity leave she was successful in securing thejob of Poland, Germany & CEE Desk Director.
2
Sector of Focus: Manufacturing
o Manufacturing Sector focus & Manufacturing Sector
Specialists Team
o Supporting manufacturers to prosper by being the “accelerator
for business growth”
o deep, holistic and tailored approach to our international
proposition to help businesses with their international growth
ambitions
o Country Specialists, Sector Specialists, Product Specialists,
regionally focused Relationship Directors
o Partnerships Ecosystem - Government, Trade bodies,
Technical R&D Centres, Universities - in UK and key corridors
o Sector specific Connectivity programmes - Webinars, Meet-
The-Buyer events, Conferences and Trade Missions
o Santander Universities - Funding and skills support.
Santander Internships Scheme
o Help to grow your existing markets and providing unrivalled
access to new market opportunities in the UK & key corridors.
We are passionate about helping ambitious businesses succeed.
DIT Prague
Adam Slezak, Senior Trade Adviser
Czech Invest
Erik Bolebruch, Director of UK & Ireland Operations
AutoSAP, Czech Automotive Industry Association
Tomas Jungwirth, International Relations
www.czechinvest.org
Connect
& Support
Erik BolebruchDirector for UK and Ireland Operations
17th June 2020
Czech Republic
The Country For The Future
Connect
& Support
• Business intelligence
2
Source: CzechInvest, 2020
One-Stop-Shop for InvestorsCzechInvest´s Services
All CzechInvest services are financially covered
by the Czech government as a business support
Connect
& Support
Number of investment projectsAccording to sector (1993 – 2019)
3
Transport Vehicles Production
Electronics and Electrical Devices
Mechanical Engineering
Rubber and Plastics
Metal and Metalworking
ICT
Food Products
Chemical and Petrochemical
Strategic Services Centres, Logistics and Services
Woodworking, Furniture and Paper Production
Biotechnological and Medicine, Pharmaceutical
Non-metallic mineral products
Textile
Aerospace
Materials and Nanotechnology
Others
Source: CzechInvest, 2020
Connect
& Support
Top 10 Investors in the Czech Republic
Company Sector
Toyota / PCA (TPCA) Automotive
Hyundai Automotive
Volkswagen Automotive
Denso Automotive
Nexen Automotive
Eaton Electronic components
Red Hat Software development
HoneywellAerospace, Strategic services,
Automotive
GE Aviation Aerospace
BMW Automotive
Mediated by CzechInvest
4
Source: CzechInvest, 2020
Note: From 1993 to 2019
Connect
& Support
5 Czech Republic as a final manufacturer of means of transport
✓ Passenger cars
✓ Aircrafts / Engines
✓ Trucks
✓ Buses
✓ Trains / Trams
✓ Tractors
✓ Motorcycles, etc.
Source: CzechInvest, 2020
Note: Selected companies
Connect
& Support
6
300 km
Source: OICA, Autonews, 2020
Connect
& Support
• Business intelligence
• Financial support for investment projects
(investment incentives)
7
Source: CzechInvest, 2020
One-Stop-Shop for InvestorsCzechInvest´s Services
Connect
& Support
Investment IncentivesSupported Activities
8
Source: Act on Investment Incentives No. 72/2000 Coll.
MANUFACTURING
INDUSTRY
starting or expanding
production facilities
TECHNOLOGY
CENTRES
establishment or expansion
of R&D centres
BUSINESS SUPPORT
SERVICES CENTRES
establishment or expansion of:
1. shared service centres
2. SW development centres
3. high-tech repair centres
4. data centres
Connect
& Support
• Business intelligence
• Financial support for investment projects
(investment incentives)
• Identification of green/brownfield sites,
production/R&D facilities and offices
• Identification of potential acquisitions,
joint-ventures partners and suppliers
9
Source: CzechInvest, 2020
One-Stop-Shop for InvestorsCzechInvest´s Services
Connect
& Support
Database of the Czech Suppliers
• Contains more than 3,400 suppliers on the Czech market operating in manufacturing and IT industry
• An efficient tool for searching and ranking partners and suppliers in the Czech Republic by sector
characteristics, modules, key technologies and locations
• Database covers the key industrial sectors
10suppliers.czechinvest.org
Source: CzechInvest, 2020
Connect
& Support
Supplier Days
• Organization of B2B event
• Opportunity to display required products and components
• Participation of Czech suppliers according to investors’ requirements
References:
11
Source: CzechInvest, 2020
Note: Selected companies
Connect
& Support
• Business intelligence
• Financial support for investment projects
(investment incentives)
• Identification of green/brownfield sites,
production/R&D facilities and offices
• Identification of potential acquisition, joint-ventures
partners and suppliers
• R&D support & cooperation
12
Source: CzechInvest, 2020
One-Stop-Shop for InvestorsCzechInvest´s Services
Connect
& Support
13
VSB – Technical
University in Ostrava
Students: 1,913
Graduates: 666
Technical University,
Liberec
Students: 1,090
Graduates: 217
Brno University
of Technology
Students: 5,197
Graduates: 1,337
Czech Technical
University in Prague
Students: 4,036
Graduates: 1,302University of West
Bohemia, Plzen
Students: 1,769
Graduates: 350
University
of Pardubice
Students: 1,409
Graduates: 265
Tomas Bata
University in Zlin
Students: 1,437
Graduates: 350
Automotive R&D
• 7 universities in automotive
• €500M spent on R&D in 2018
• Over 4,500 R&D employees
• 8 centers of excellence (supercomputer, AI and robotics, laser,
new material and nanotechnology, etc.)
Source: Ministry of Education, Youth and Sport; CZSO; 2019
Note: According to the educational programmes chosen by CzechInvest
Center of Excellence
Connect
& Support
The Highest Number of Automotive Patents in CEE RegionAutomotive-related patents issued to inventors since 2003
14
Source: fDi Benchmark, 2018
0
20
40
60
80
100
120
140
Czech Republic Hungary Romania Turkey Poland Slovak Republic Bulgaria Slovenia Serbia
Connect
& Support
Innovation Hubs Initiative
Mission
• INNOVATION Grasp new trends
• DEVELOPMENT Transfer new technologies
• EXPERTISE Establish closer cooperation between state, private sector and academia
Areas
Connect & Support
15
Eco-Innovation HubMobility
Innovation
Hub Creative BICSpace Hub
AI Hub
Source: CzechInvest, 2020
CERN BIC Czech
Crisis Response Hub
Connect
& Support
Reasons to Visit the Czech Republic
✓ Ideal place to invest, to identify new suppliers and business partners
✓ Well-developed supplier base integrated into global supply chains
✓ Strong R&D infrastructure
✓ First-class support by CzechInvest
❖ Promotion of your visit
❖ Tailore-made agenda of your visit
❖ Selection of suppliers and R&D facilities
+ meetings arrangement
❖ Connection with ministries and professional groups
16
Source: CzechInvest, 2020
Connect
& Support www.czechinvest.org
Connect
& Support
On the Wheels of Success
Investment and Business Development Agency CzechInvest
26-30 Kensington Palace Gardens, W9 4QY, London
Erik Bolebruch
Automotive Industry in theCzech Republic and its FutureTomas Jungwirth Czech Automotive Industry AssociationCEE Roundtable, June 2020
Association 01
Automotive Industry inthe Czech Republic
03Future
Mobility Innovation Hub
02
04
Czech Automotive Industry Association
01
1989 140The year of Automotive Industry Association establishment.
Currently, we represent and defend interests of 140 vehicle manufacturers, suppliers and other entities linked to the Czech automotive industry.
The Czech Republic, the best place for automotive industry.
Create conditions, provide necessary servicesand represent common interests of ourmembers leading to the development and lasting competitiveness of the automotive industry in the Czech Republic.
visionour missionour
Who We are
4
140Members
(90% of Automotive IndustryProduction in the Czech Republic)
Parts and services Suppliers
90(64%)
Others
37(27%)
OEMs
13(9%)
Our Members
5
Part of global Value Chains
source: CzechInvest 6
European regulatory framework for the automotive industry (CO2 emissions, Brexit…)
Monitoring and influencing domestic legislation
Education, human resources and R&D - support for technical education, labour market, relations with social partners, efficient R&D incentive/support scheme
Information and seminars on topics reflecting current and future trends (digitization, automation…)
Internal and external communication, membership development, services for members, joint projects
1.
2.
3.
4.
5.
Our Priorities
7
Automotive Industryin the Czech Republic
02
Current State of the Automotive Industry
Automotive Industry creates23% of exports of the Czech Republic
Automotive Industry employs
~ 500 000 Employees in Total incl. Indirect Jobs
Automotive Industry employs
180 000 Direct Employees
Automotive Industry produces26% of Industrial Production
Automotive Industry investsmore than 36% of allIndustrial R&D Investments
Automotive Industry produced1,5 mil. vehicles in 2019
9
11.4.2.1.European and global
no. 1 in buses production per capita.
No. 2 globally in passenger car
production per capita.
No. 4 in the EU in vehicle production.
No. 11 globally in vehicle production.
Czech Automotive Industry – Prominent Place at the EU and Global Level
Source: OICA 10
source: AutoSAP
Production in the Czech Republic in 2019- 0,6%; total production 1 461 179 motor vehicles
1 427 563
(- 0,7%)
1 181
(+ 42,5%)
26 238
(+ 3,7%)
980
(- 34,4%)
5 217
(+ 6,7%)
Passenger Cars & LCVs HDVs Buses TrailersMotorcycles
11
Export of the Czech Automotive Industry in 2019
1. GERMANY 31,3%2. FRANCE 7,0%3. SPAIN 6,8%4. SLOVAKIA 6,2%
5. UNITED KINGDOM 5,9%6. POLAND 5,1%7. HUNGARY 3,6%8. ITALY 3,2%9. AUSTRIA 2,7%10. BELGIUM 2,7%
EXPORT COUNTRIES
2019
2.3.
1.
4.
5.
6.
7.
8.9. 10.
Other countries 25,5 %
2017 2018
1. GERMANY 31,3%2. FRANCE 7,0%3. UK 6,6%4. SPAIN 6,4%5. SLOVAKIA 5,9%
1. GERMANY 32,8%2. UK 7,5%3. FRANCE 6,7%4. SLOVAKIA 5,9%5. SPAIN 4,9%
75,7%Suppliers export
91,3%OEMs export
12
Future of the Automotive Industry in the Czech Republic
03
MEGATRENDS TREND-SETTERS
New propulsions/electromobility
Digitalization/connectivity
Autonomous driving
Regulatory framework(CO2 emissions, transition frommeasuring cycle NEDC to WLTP)
Current state of knowledge(development in batteries and digital technologies)
Customer expectations(affordable and sustainable mobility)
Future of Automotive Industry
14
Colloquium I. and Colloquium II. about Future Topicsof the Automotive Industry in the Czech Republic
Colloquium I.16th February 2017
Colloquium II. 18th March 2019
15
Mobility Innovation Hub
04
Focus
Mission Relevant areas
Capture new trends in automotive
Transfer new technologies into practice
Closer cooperation between the private and academic sector
Electromobility& other drives
Digitalization& Connectivity
Autonomousvehicles
ArtificialIntelligence
Smart Industry
Smart logisticsand storage
1
2
3
17
1Start-up support 2Member
support 3Expert Board
services
Conception
Expert Board
Operator
Selection Board
Steering Committee
Private sectorNational
public sectorRegional
public sector
Municipalities
Innovation centres
Local public authorities
Multilevelmembership
+ +
3 main activities pillars
Intersector
character
Coordinated by
CzechInvest
Uses competences of CzechInvest
in support of innovation
mechanisms
Managed by
partners
Joint public-
private program:
18
Purpose
1Start-up support 2Member
support 3Expert Board
services
Creation of a technologically advanced environment
Generating and absorbing innovative projects in automotive industry and mobility
Incubation of domestic and foreign start-ups (SW i HW technology)
Access to unique projects
Know-how transfer (best practicesfrom abroad)
Help with orientation in project calls (domestic and foreign programs)
Support in creating project consortia
Industry, public sector and academia experts networking
19
Opportunities for Members
Priority approach to unique know-how and the possibility of its implementation into own products / services
Know-howAccess to regional and international start-ups and projects
Access
Co-decision on the direction of MIH (including financial flows)
Co-decision
Gain support in identifying, financing and implementing technological innovations
Support
Participation in regulatory adjustments to smooth implementation of innovation
Participation
Marketing visibility among commercial partners and potential employees
Visibility
Interconnection with the academic sector, transfer of ideas at an early stage, the possibility of proposing own topics
Interconnection
20
4th quarter
Mobility Innovation Hubin the Czech Republic
Source of img: Volvo
Let´s tackle the Challenges ahead Together!
Ing. Tomas JungwirthInnovative Mobility & International [email protected] www.autosap.cz
DIT Budapest
Gábor Imeli, Senior Trade Adviser
Hungarian Investment Promotion Agency (HIPA)
Martina Almási, Head of Department Investment Promotion –
Automotive Industry
Parafix
Dávid Krasznay, General Manager
Dávid Székely, Business Development Manager
Central and Eastern Europe virtual roundtable
Opportunities for UK automotive companies
Hungary
17 June 2020
Who we are & what we do?
▪ Trade promotion arm of the UK govt.
▪ Representing the UK’s interest, lobbying, partner search, market research (B2B, G2G)
▪ Helping commerical deals, investments and trade
▪ Facilitating dialogue, gathering business intelligence
Effects of the pandemic on local theautomotive industry
▪ Production lines very down 4-6 weeks
▪ The percentage of the sector is big in the industrialoutput (36% drop y-o-y)
▪ Car production down by 79.5%
▪ Factories are running on 40-60% capacity
▪ Hence govt. schemes were introduced to save jobs
Used case
▪ Parafix Hungaria, local branch of a UK adhesivespecialist company
▪ In partnership with the local trade promotionagency, HIPA the Hungarian govt. provided financialsupport for an investment securing the present and the future
▪ Also lobbied on R&D subsidy succesfully
Thank you for your attention
HUNGARYSMART. AMBITIOUS. COMPETITIVE.
Focused on Automotive
17th June 2020
Excellent location providing a gateway toEurope
• The longest motorway network in CEE
• At the cross roads of 3 core European transportation corridors
• TEN-T Corridors crossing Hungary
• 190 industrial parks
• Total modern industrial stock over 2 million sqm
• 5G coverage in Budapest
• Full countryside coverage
by 2023
Existing
Under construction
5G smart road
Future development
Lowest taxes:9% flat rate corporate income tax
Reducing tax burden on labourSocial contribution tax rate
Extremely business friendly
21%19% 19% 19%
16%
9%
Slovakia Slovenia CzechRepublic
Poland Romania Hungary
Corporate income tax rates, 2020
- 11.5pp
We listen to companiesE.g. CIT rate, R&D tax advantages, New incentives for Industry 4.0 and R&D projects, Labour mobility measures, Dual education
*Applicable from July 2020; further reduction on social contribution tax is planned, -2 pp yearly based on the economic performance
27%
22%19,5%
17,5%15,5%
2016 2017 2018 2019 2020
101 projects
13.493 FTE
5.350,41 m €
Industry segmentsCountries
Automation R&D subsidy
HIPA results
New incentive schemes
Record FDI results in 2019
Key figures of the automotive sector
700+ automotive companies
69Tier 1
suppliers
40TOP100 Tier 1
companies
5OEMs
186 000 FTE
4.1% of the total employment
Source: HCSO, 2019
4.5% EUR 29.3 billion 28.9%
500 000 2.1 M
contribution to the GDP of manufacturing output revenue
yearly production+
OEMs TIER1R&D centre and
autonomous driving Battery businesses
Fro
m „
Mad
e in
HU
” to
„In
ven
ted
in H
U”
Strong automotive ecosystem
OEMs in figuresBMW Location: DebrecenGreenfield investment project
Capacity: 150,000 unit a yearJob creation: 1,000Investment volume: 1 bn EUR
Mercedes-Benz Manufacturing (Daimler)Location: Kecskemét
Car production: ~190,000Number of employees: ~4,800Compact car competence centre
OPEL (PSA)Location: Szentgotthárd
Engine production: ~350,000Number of employees: ~820
Audi Hungaria Motor (VW)Location: Győr
Car production: ~160,000Engine production: ~2 million enginesNumber of employees: ~13,000
Magyar Suzuki (Suzuki Motors)Location: Esztergom
Car production: ~172,000Number of employees: ~3,200
1993
1991
1991
2008
2018
3 German premium car manufacturers in Hungary
1998 2013 2015 2018 2019
Mercedes-AMG Performance
ZalaZone test trackGovernmental investment in autonomous driving
TESTING ELEMENTS
– Dynamic platform– Braking surface
– Handling course
– Connecting road network– High-speed oval track
– Smart City zone
FURTHER PROVING GROUND DEVELOPMENT– 5G & ITS G5 Networks testing environment
– Bad roads
– Slopes– Noise measurement surface
– Additional vehicle dynamical modules
– Expansion of the Smart Cityurban and suburban environment
VIDEO: The 1st phase was opened in 2019
Incentives overview
I. Incentives for investment (regional aid)
Cash grants• VIP cash subsidy• Job creation subsidy• EU co-financed tenders• Local subsidy granted by municipality
Tax benefits• Development tax benefit
II. Incentives for trainings
Cash grants• Training subsidy• Workshop establishment and development subsidy
III. Incentives for R&D&I
Cash grants• VIP cash subsidy• EU co-financed tenders
Tax benefits• R&D&I tax benefit
Regional aid map
Types of incentives
Maximum aid intensitymay be reached by
the combination of VIP cash subsidy andDevelopment tax
benefit
Location selection• Tailor-made information packages• Investment Site Database: location
search and evaluation (more than 1,300 industrial sites)
• Site visits• Meetings with local authorities,
educational institutions, specialized consultants
• Reference visits
HIPA Services
State aid Supplier services• Tailor-made incentive offers
and state aid information packages
• Assistance with the incentive application
• Management the VIP cash subsidy procedure
• Extensive database about local suppliers with certificates and references to the automotive sector
• B2B meetings between Integrators and Hungarian suppliers
• Tailor-made supplier development programs
Gateway to the Government • Policy advocacy: policy proposals based on company feedbacks • Mediation between business and government to support economic development
Thank you for your attention!
Martina AlmásiHead of Department
Automotive IndustryE-mail: [email protected]
Mobile: +36 70 198 0292
Parafix Hungária Kft.
2020.
About us:
• Laminating and converting of self adhesive tapes, films, foams, foils
and other flexible materials
• Sister company: Parafix – UK (since 1969)
• Parafix Hungária Kft.: 2002
• Export: Central and Eastern Europe, North and South America, Asia,
Australia
• Industries: Automotive, Electronics, Healthcare, Life Safety, Military
and Defence, Aerospace, Lighting, Renewable Energy
Parafix UK
• Headquarters: Lancing, West Sussex, UK
• Owner: Michael Arthur Punter
• Headcount: 130 employees
• 50 years experience
• Already producing in cleanroom
• Similar size in terms of turnover
• 2/3 technology overlap
Parafix Hungária Kft.
• Headquarters: Budapest
• Headcount: 180 employees
• New facility in Ercsi (25 km from Budapest) – opens in 2020
• - approx. 30 new machine
• - cleanroom
Overview:
Main Suppliers:
Main Partners:
Parafix Customers
OEM
Tier 1
Tier 2
Tier 3
Parafix
Parafix Hungária Kft. is working with local sales representatives in theCentral-Europe Region:
• 2 Hungarian sales reps• 1 Czech sales rep• 1 Slovakian sales rep• 1 Romanian sales rep• 2 Polish sales reps
• Western-European R&D centres and HQ
Sales Structure
Typical Process Map in Automotive
RFQ from thelocal customer
Contacts to the HQ
HQ visit
Sales representative
visit
Customer audit through VDA 6.3 at Parafix Hungária Kft.
Business
Quality Certificates
• ISO 9001
• ISO 14001
• IATF (ex TS) is in progress
• ISO 13485 Gap analysis is in May 2020
• VDA 6.3 (Automotive standard, audited by customer)
Customers who audited us
through VDA 6.3
- Autoliv - Minda
- Enmech - SEI
- Eurostyle System - Siteco/Osram
- Fremach - Splast
- General Plastics - Stanley Electric
- Harman - Valmet
- KSS - Webasto
- Magna Exteriors - Zollner
Sales map
Mirror heating
Applications
EV Battery cell application
OEM: Daimler, JLR, Chevrolet Volt
Applications
Flat antenna
Applications
Thermal conductive application in LED lighting
OEM: Tesla-X
Applications
Inflator
OEM: almost all OEM
Applications
Touchscreen fixation and light leakage
OEM: Ford
Applications
B pillar fixation
OEM: Suzuki, Audi
Applications
Loudspeaker application
OEM: Volvo, Suzuki Maruti
Applications
SD slot part
OEM: Volkswagen Group - Scania
Applications
OLED Backlight application
Applications
Bumper-sensor application(Magna, Plastic Omnium)
Applications
Emblem fixation
OEM: JLR, Skoda
Applications
Thank you!
Click on the links below for videos from Parafix
DIT Bratislava
Michal Sventek, Trade Adviser
Slovak Invest and Trade Development Agency (SARIO)
Tomáš Salíni, Senior Consultant, Investment Projects Department
The Automotive sector in numbers
Represents:
• 177K people employed directly by 4 car producers – VW, PSA, Kia, JLR & Tier 1 suppliers
• 275K people employed directly & indirectly by the automotive industry
• 50% share of country’s total industrial production
• 13% share of the automotive industry on the GDP of Slovakia
• 15 Electric & partly electric models being produced in Slovakia – 4 BEV & 11 PHEV/MHEV
(including planned models)
Car production:
• Slovakia belongs in the TOP 20 biggest car producers in the world, more than 1 million cars
produced per year
• 2016 –1’043’237 cars –2020 (estimated) -1’350’000 cars
• 5 fold increase of car production in the last 10 years
1
The Automotive sector
Opportunities and trends:
• Electromobility, autonomous vehicles, digitalization, safety
• EU funds and investment incentives
Success story:
• Jaguar Land Rover – 2018
• Jaguar Land Rover opened a new, $1.6 billion plant in Slovakia, the luxury car maker's first in continental Europe.
The U.K.-based company, owned by India's Tata Motors, built the plant near Nitra, about 100 kilometers (65 miles)
east of Bratislava, to initially produce 150,000 cars a year. The Slovak government is giving the carmaker
investment subsidies of up to 130 million euros ($148 million).
Some of UK’s Automotive companies currently present in Slovakia:
2
HOW WE CAN HELP
Through our well established network of contacts we’re able to set up meetings with any (or
most) of the public or private sector companies, get ‘the foot in the door’ and help you establish
your dealings here. Be it Jaguar Land Rover or the Ministry of Transport, Construction and
Regional Development.
Our services range from market research, looking for good contacts in companies of your
choosing, translation services or setting up meetings. We can help looking for the right place for
your facility and research into law, should you need to know whom to contact directly or what
steps to follow.
We can help you meet Slovak companies on various conferences and our own events,
connecting the dots between you and your future suitable business partner.
So please feel welcome to ask! We’re here to help.
3
Automotive Sector in Slovakia
4
Michal SventekTrade Adviser | Automotive & Healthcare
Panska 16, 81101 Bratislava, Slovakia
Tel: +421 (0)2 5998 2224 | Mob: +421 907 649 961
E-mail: [email protected]
22 JUNE 2018, KOŠICE
2
INVESTMENT INCENTIVES AND R&D TAX DEDUCTION SCHEME
• Eligible projects – Industrial production , Shared service centers, Technology
centers
• State Aid rules
• Scheme is administrated by the Slovak Ministry of Economy, final decision has to
be made by the Government
• Maximum intensity in the Central and Eastern Slovakia is 35% of the eligible
costs.
• Forms of aid: income tax relief, cash grant, contribution on a new jobs, discounted
transfer/rent of the real estate
• Minimum conditions depend on the project localization and forms of aid
applied
• Support of the R&D projects – Special tax regime for the R&D
costs
• Each R&D related cost can be deducted from the tax base twice –
• once as a standard cost and
• additional 200% of the R&Dc ost
• NO part of the State Aid rules
• Automatically claimable – there is no approval by any authority
required.
• There is no formal application required, the tax payer simply utilizes
R&D deduction in the tax return from.
Two schemes attractive for the foreign investors.
Investment incentives R&D Tax Deduction
3
1. UNIQUE GEOGRAPHICAL LOCATION
2. EURO CURRENCY
3. THE HIGHEST LABOUR PRODUCTIVITY IN A REGION
4. TECHNICALLY SKILLED LABOUR FORCE WITH AFFORDABLE LABOUR COSTS
5. DENSED NETWORK OF SUPPLIERS
6. THE MOST OPEN ECONOMY IN THE EU
7. ONE OF THE TOP 3 SAFEST COUNTRIES IN THE EU
8. THE FDI & TECHNOLOGY TRANSFER LEADER IN THE CEE
9. INVESTORS FRIENDLY ENVIRONMENT
10. ATTRACTIVE INVESTMENT INCENTIVES
TOP REASONS TO INVEST IN SLOVAKIA
BRATISLAVA
3 CONTINUOUS
SUPPORT
2 RAMP UP
4
SARIO SUPPORT FOR INVESTORS – DEDICATED, TAILOR MADE AND UNDER ONE ROOF
State incentives consultancy
Delivery of business environment overview
Site selection assistance
Setting up a business entity consultancy
Identification of suppliers and services providers
Support of innovation and R&D activities
Production and operations expansion assistance
Facilitation of meetings with local stakeholders
1 LOCATION
ASSESSMENT PHASE
PHASES OF THE
PROJECT
Tailor made HR analyzes
Meetings with education institutions & services providers
Further assistance in running up the businesses
Tomáš Salíni Senior Consultant, Investment Projects Department SARIO Slovak Investment and Trade Development Agency Trnavská cesta 100 821 01 Bratislava T: +421 2 58260 100 E: [email protected] www.sario.sk
THANK YOU FOR ATTENTION
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