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How to select your new food processing site in Eastern Europe?
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How to select your new food processing site in Eastern Europe?


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  • 1. How to select your new food processing site in Eastern Europe? by Dr. Balazs Csorjan, investment promotion specialist 2014 edition
  • 2. [NOTE] These slides are designed not to present but to read as a document. Switch to Fullscreen View, please!
  • 3. Central- and Eastern Europe Emerging part of the EU Low-cost manufacturing region inside the world’s largest market Cultural and geographical nearness
  • 4. Food industry in CEE One of the leading agricultural locations of Europe Net food exporter Strong education and infrastructure Stable business environment
  • 5. Hungary EU market focus: 80% of food export goes to Europe Food processing clusters, business parks (e.g: Hajdúböszörmény, Northern Great Plain Region) Good natural conditions, effective farms, developed infrastructure
  • 6. Poland Largest economy and food business in CEE Liberalized land market, effective farms, natural conditions under the average Leading food processing region: Greater- Poland
  • 7. Romania Emerging food processing location of CEE Agricultural population: over 3 million Low taxes Leading locations: at the Western (Hungarian) border
  • 8. Raw material trends Boosting agri-production Rising prices (e.g +18% for cereals or +9% for milk in 2011, +9% for cereals but -5% for milk in 2012) Increasing efficiency (agri.income per annual labour unit) e.g +43% in Romania
  • 9. Real estate market Approx. 1,000 industrial parks in CEE More thousands brown field sites Industrial land for sale: 10-40€/sqm some municipailities provide industrial plots for free Manufacturing halls and storage for rent: 2,5-5€/sqm/month
  • 10. Motorways Most extended in Hungary Developing in Poland and Romania Toll for trucks in many states
  • 11. Railways Extended network, including high speed lines Industrial rail in more business parks Average rail development cost: 1 million €/km
  • 12. Electricity grid developers and independent energy providers competitive electric market, stable supply onsite grid developments by business parks
  • 13. Water and sewage Typically managed by local governments EU guidelines for water treatment and environmental issues (not country- specific) Large-scale water supply: alongside the rivers
  • 14. Vocational education: strong company presence Global recruiters are present Governmental labour offices for jobseeking, subsidies, trainings Flexible regulations
  • 15. How to select your site? long listing: 10-20 potential sites might fit to your criteria site selection questionnaire - answers from the long listed locations facilities, transport, labour issues, regulations and taxes short listing: the most promising 4-8 sites visit personally each one listen to your instincts - it's not a science rank and propose 2-3 to your board
  • 16. Site selection assistance non-profit governmental investment promotion agencies (IPAs): HITA (Hungary), CzechInvest (Czech Republic), PAIZ (Poland), Sario (Slovakia) World Bank's investment portal Independent blogs, e.g: Manufacturing Hungary Blog, www. consultants and real estate agents
  • 17. About us Manufacturing Hungary Blog is an information source about the manufacturing topics in Hungary and Eastern Europe. Our goal is to support site selection team’s job, providing useful information. Dr. Balazs Csorjan, investment promotion specialist, the former regional director of Hungarian governmental investment promotion agency. Dr. Csorjan has taken part in more hundred site selection projects - he knows your questions.
  • 18. E-mail your questions or ask the original maps, graphics, slides: