1 Iași Open for Business WKO - Vienna, 23rd of September, 2014
2 Who we are? - Location - Tradition - Economy How we work? - Major projects - Business & investments - Global & knowledge-based cooperation What we have to offer? - Connections - Business infrastructure - Human resources - Quality of life
3 Location and demographics. North-East Region 6 counties (Iași, Bacău, Botoșani, Neamț, Suceava and Vaslui) 3.8 million inhabitants (17.30% of total Romanian s population); 56.3% in rural areas km² surface Romania Regional GDP EUR billion, contribution of 10.8% to Romania s GDP North-East Region economic catchment area includes part of the neighbour counties (Vrancea, Galați), Republic of Moldavia and a part of Ukraine (over 5 million inhabitants) South-Eastern Europe
4 North-East Region medieval history 143 monasteries eolian energy academic and health care center aero knowledge agricultural land hunting fund
5 Location and demographics. Iași County IS 0,87 million inhabitants: 44.7% in the urban area and 55.3% in the rural area (the second most populated county in Romania, after Bucharest) km² surface (2.3% from the Romanian territory, of which 69.45% is agricultural land, 17.81% woods and forest land area, 2.54% water and ponds and 10.19% lands with other destination) 2 municipalities (Iași and Pașcani), 3 towns and 93 communes
6 Regional connections Moldova region is served by three airports (Iași, Bacău and Suceava). Bacău International Airport flights are operated by BlueAir and Carpatair (low cost flights to cities in Italy and UK London). IAȘI Suceava International Airport provides 3 weekly flights to Bucharest. All other counties Neamț, Vaslui, Galați, Vrancea are served mostly by Iași Airport. Iași is the boarding gate to the Eastern Europe for the citizens of the Rep. of Moldovia and Ukraine. Average distance to be traveled to reach Iași & Iași Airport = 158 km.
7 IAȘI REGIONAL KEY PLAYER IAȘI BRIDGE TO THE NEW EASTERN EUROPE
8 Iași: Facts and Figures tradition and culture: DEUTSCHES KULTUR- ZENTRUM IAȘI
9 Iași County Economy Main industries : Services; Education; Healthcare and Pharmaceuticals; IT, Software & Electronics; Textiles; Automotive, Metallurgy and Heavy-equipment manufacturing; Constructions. Regional clusters were set up recently in Iași to valorize the potential of the IT&C and bio-medicine industries. North-East Region Counties ranking according to their contribution to national GDP (2011): Iași: EUR 3.45 billion; Bacău: EUR 2.9 billion; Suceava: EUR 2.42 billion. Activity Iași County structure of economic activities No of active local units (%) Turno ver (%) Gross investment (%) Industry 10,4 30,6 59,9 28,8 Constructi ons 9,2 11,8 15,6 13,1 Trade 41,6 43,4 10,0 23,6 Services 38,8 14,2 14,5 34,5 Company No of employees (%) Top 5 Private Employers in Iași County, 2013 DELPHI DIESEL SYSTEMS ROMANIA SRL 2,071 E.ON MOLDOVA DISTRIBUȚIE SA 1,556 Antibiotice SA 1,465 Continental VDO 1,000 Xerox Business Services Romania SRL ,000 companies employees* * Total no of employees = No of employees EUR 4,1 billion total turnover
10 Iași County Economy. Foreign investments companies with foreign capital in Romania (EUR 38.9 billion) in Bucharest in Moldova in Iași (IT, software, textiles, agriculture & construction) Source: Romanian Trade Register Office Total invested capital in Iasi = EUR 325 million.
11 Academia The name of Iași City is bound up with the socalled "golden period" of the Romanian culture. Nowadays, the city is still known as the cultural capital of the country. In 1860 the first university ( Al.I.Cuza University) within Romania was founded in Iași. Today, Iași is hosting 5 public universities. The region has 2 more academic centers in Bacău and Suceava. Public universities within the region have over 6,500 employees (academic staff) altogether, out of which 5,500 in Iași, all of whom frequently travel to conferences abroad. They enroll students every year. University No of academic staff Alexandru Ioan Cuza University, Iași 2,009 Gheorghe Asachi Technical University, Iași Gr.T. Popa University of Medicine and Pharmacy, Iași 1,777 1,124 George Enescu University of Arts, Iași 323 Ion Ionescu de la Brad University of Agricultural Sciences and Veterinary Medicine, Iași 240 Ștefan cel Mare University, Suceava 766 Vasile Alecsandri University, Bacău 349
12 Iași competitiveness in IT&C Office Buildings and Facilities for Investors: Iasi has an office premises stock of over 100,000 m2, of which at least 70,000 m2 are of A/B + class standard. 6,000 employees in Iași County work in IT&C companies. Total turnover 2013: EUR 150 million. Over 800 IT&C companies in Iași.
13 The most important projects of Iași County Council Modernization of Iași International Airport Intermodal Transport Center & Industrial Park Integrated waste management Moldova- Transilvania Highway Regional Emergency Hospital Improving county roads connectivity TOMORROW S PROJECTS TODAY
14 Iași International Airport The Easternmost airport of the European Union and the Regional Airport in the North-East of Romania pax in 2013 a growth of 34% comparing to Iași Airport is ranked no. 7 in Anna.Aero Top 10 with European Airports growth, comparing 2012 to Estimations for 2014: pax. Passengers flow evolution, Modernization of Iași International Airport directly contributes to the economic development of Iași and the North-East Region.
15 1 INTERNATIONAL FLIGHT 9 INTERNATIONAL FLIGHTS IAȘI Current routes Bucharest Tel Aviv Wien Rome London Bologna Torino Milano Dublin Venice Summer routes Antalya Rhodos Zakynthos Heraklion Airlines Tarom Austrian Air Bucharest Blue Air WizzAir Forecasted routes Munich, Paris, Istanbul
16 Iași International Airport Terminals & Equipment TERMINAL T pax/hour 4 check-in desks 2 scanning gates TERMINAL T 2 In service from July 2012, with 200 pax/hour 4 check-in desks 2 scanning gates TERMINAL T 3 Ready to use in May pax/hour 6 check-in desks 3600 sqm Ground Handling Agent: MENZIES AVIATION Rescue and Fire Fighting: RFF CAT.6 Fuelling issues: Available suppliers EUROSPEED Fuel Type JET A1 Refuelling Truck 19 to Storage 80 to
17 Iași International Airport new runway (future representantion)
18 Iași International Airport m new runway Runway suitable for Class C (Boeing B737, Airbus A320) and D (Boeing B767, Airbus A310) aircrafts. 70/F/D/W/T Lenght: m RWY designator: 14/32 Investment value: EUR 56,7 million (European Funds), including a new 3,200 m² passenger terminal, new taxiways and platforms. Contract signed in August 2013 with the consortium MAX BOEGL Vega 93 UTI. Works to be finished before July First m ready to use in August- September The first flexible runway in Romania.
19 Iași International Airport New runway (works in progress)
20 Iași International Airport m runway inauguration August 21 st, 2014
21 Regional Intermodal Freight Transport Center The project consists in the execution of the railway, road and parking infrastructure works, thus ensuring the interconnection to the national railway and road network, as well as the connection to utilities: temporary storage platform of intermodal freight units (especially containers); provision of utilities (electricity, drainage, water supply, sewerage, etc.). rail access and related railway infrastructure; road and rail infrastructure within the terminal. The Intermodal Center is planned to be financed by the Transport Sectoral Programme or Major Investments Programme The project is in the phase of writing the grant application. The technical and economic documentation was finished this year and the procedure for the joint venture approval by the National Railway Company is ongoing. IAȘI provides unique logistic facilities, ensuring interoperability between the Russian railway track gauge and the European railway system. Estimated value: EUR 21.7 million.
22 Regional Intermodal Freight Transport Center Map of Iași City Railway Corridor (to be defined) Regional Intermodal Freight Transport Center
23 Industrial Park Lețcani, Iași Main road connections: DN28 (E583), DJ248A, DJ248. Railway connections with other functional areas of the country. Iaşi International Airport - 15 km away. Main advantages: the presence of a major investor in the area (Delphi Diesel Systems Romania); utilities available. Impact: new jobs; boost investment in the area; stable labour force. Estimated value: EUR 32 million. Expected funding sources: capital contribution; loans from banks and other financial institutions; concessions in advance and PPP. April 2014: Starting of the execution of the Zonal Urban Plan (30 ha). Mai 2014: Legal registration of the Industrial Park Management Company. Iași Industrial Park, Lețcani Initiator and main shareholder: Iași County Council. Partner: Local Council of Lețcani, Iași County. Iași International Airport
24 TransAgropolis Transfrontier Agribusiness Support Objective: Development of an adequate agricultural marketing infrastructure aiming to improve transborder economic situation. Location: Lețcani commune, 25.4 ha. Value: EUR 5.9 million. Partners: Lețcani Local County (Romania); Iași County Agriculture Department (Romania); University of Agricultural Sciences and Veterinary Medicine, Iași (Romania); Fălești County Council (Republic of Moldova); Ungheni County Council (Republic of Moldova); Vinnytsia Regional State Administration (Ukraine). September 10th: signing of the contract for the execution of works.
25 Improving road connectivity and accesibility. Moldova (Iași) Transylvania (Tg. Mureș) Highway Need: Moldova and Transylvania are connected through DN 15B DN 15 and DN 15 DN 12C DN 13B, which are overcrowded, slowspeed and with congested traffic. The lack of infrastructure (geographical isolation) leads to an increased economic disparity between North-East Region and the rest of the country. IAȘI TG. MUREȘ Impact: Ungheni (Republic of Moldova) Iași Tg. Mureș highway will ensure international transit traffic between the pan-european Corridors IV and IX. Lenght: 310 km. Feasibility study in progress Estimated costs: EUR 3.5 billion.
26 Quality of life in Iași County Over 100 Kindergartens and primary schools (English, German & French). 15 Hospitals and medical centers of excellence specialities: cardiology, neurology, emergency hospital, recovery, infectious diseases, obstetrics and gynaecology hospitals etc. Parks, shopping centers and leisure facilities Palas park & shopping center, Expo Park, Botanical Garden, 4&5-stars hotels, Palace of Culture, University Library. Universities and Cultural Centers German Cultural Center, British Council, French Cultural Center, Cultural Center of Latin America and Carribean, 5 universities. Multicultural environment Each year, the city of Iași hosts students from over 80 countries, enrolled in various study programs (mainly in Medicine); International conferences, workshops and scientific exchanges held annually by universities on topics like Linguistics, History, International Relations etc.; Traditional festivals, bringing together different nationalities.
27 Capitalizing on tradition: Austrian Romanian cooperation, today and... tomorrow 1995: Romania Austria Bilateral Economic Trade (immediately afterwards over companies have opened offices in Romania). 2008: Romania and Austria co-initiated the EU Danube Region Strategy, one of the most important joint project of European Affairs. 2010: celebration of 60 years since the first Austrian investment in Romania. January June 2020: Austria, Romania and Finland will jointly ensure the EU presidency.
28 Austrian businesses in Romania, today companies with Austrian equity (June 2014) jobs (2.5% of the total no. of employees in Romania) (2012) Total Austrian direct investment since 1990: EUR 10 billion. 2nd place among foreign investors (June 2014) TOP 5 share of total FDI by country 1. The Netherlands EUR 7.69 billion (4.523 companies) 2. Austria EUR 5.03 billion 3. Germany EUR 4.44 billion ( companies) 4. Cyprus EUR 2.55 billion (5.495 companies) 5. France EUR 2,12 billion (7.802 companies) Source: Romanian Trade Register Office
29 Austrian businesses in Romania, today Exports to Romania: +11.1% (EUR 1.8 billion). Imports from Romania: +18.4% (EUR 1.11 billion) (2011). 18% share of total FDI in Romania, representing 10% of the Romanian GDP. Major sectors: Industry (extractive and manufacturing) = 42.8% Banking, financial and insurance services = 29.4% Resources (energy, renewable energy, oil, gas, water) = 9.7% Constructions = 6.9% Services = 3.4%
30 Austrian businesses in Romania, today. Top 20 Success Stories Company Name Industry Turover (mil.eur) Employees Omv Petrom S.A. Drilling oil and gas wells BANCA COMERCIALA ROMANA SA (Erste Group Bank AG) Commercial banks RAIFFEISEN BANK SA Commercial banks OMV PETROM MARKETING S.R.L. Fuel oil dealers PORSCHE ROMANIA S.R.L. New and used car dealers BCR ASIGURARI VIENNA INSURANCE GROUP SA (Erste Group) National commercial banks ASIGURAREA ROMANEASCA - ASIROM VIENNA INSURANCE Life insurance HOLZINDUSTRIE SCHWEIGHOFER SRL Sawmills and planing mills UNIQA ASIGURARI SA Insurance agents, brokers OMV PETROM GAS SRL Natural gas distribution GENERALI ASIGURARI SA Life insurance AGRANA ROMANIA SA Cane sugar refining EATON ELECTRO PRODUCTIE SRL Electrical equipment STRABAG S.R.L. Residential construction PORSCHE INTER AUTO ROMANIA S.R.L. Automobiles BAUMAX ROMANIA S.R.L. (Karlheinz und Agnes Essl Privatstiftung) homefurnishings PETROM LPG SA (OMV Aktiengesellschaft) Liquefied petroleum gas AUTO ITALIA IMPEX S.R.L. (RAN-AUTO Handels Ges.m.b.H.) New and used car dealers SOCIETATEA COMERCIALA PETROM AVIATION SA (OMV) Petroleum products EXPRESS - INTERFRACHT ROMANIA SRL Trucking
31 Iași your business partner for today. And tomorrow. Why choosing IAȘI? 1. GREAT MARKET POTENTIAL Romania is the largest market in South Eastern Europe and the 2nd largest in Central and Eastern Europe. IAȘI is the 2nd largest city in Romania. 2. STRATEGIC LOCATION Romania is set at the crossroads of 3 major markets: EU, Community of Independent States and Middle East. IAȘI is the border of EU, neighbouring Ukraine & Republic of Moldova. IAȘI ensures interoperability between the Russian railway track gauge and the European railway system. IAȘI is the boarding gate to the Eastern Europe for more than 5 million people. IAȘI International Airport is the largest & newest in SE Romania, and has direct flight connections with some of the world leading business capitals: London, Tel Aviv etc.
32 Why choosing IAȘI? 3. STRONG LOCAL BUSINESS ENVIRONMENT IAȘI was chosen as business location by world top players: Amazon, Delphi, Lear Corporation, Microsoft, Xerox, Deloitte, Ernst & Young, Continental, EON etc. 4. SUPPORTIVE & PARTICIPATIVE & TRANSPARENT PUBLIC ADMINISTRATION IAȘI provides business infrastructure in place: Iași Industrial Park (300 K sqm) to be opened soon, TEHNOPOLIS Technological and Scientific Park, TRANSAGROPOLIS Park etc. IAȘI County offers free concession of land to investors. IAȘI County is dedicated to implement PPP, according to the newly extended legal framework. IAȘI County is implementing the one-stop shop policy for major foreign investors. IAȘI County is committed to transparency & equality of treatment within its relation with partners.
33 Why choosing IAȘI? 5. FINANCIAL INCENTIVES Romanian legislation supports foreign investments in all sectors, gives companies the possibility to freely manage the business with full ownership rights and allows full repatrion of capital and profits. IAȘI County administration facilitates investors access to state aid scheme. State aid is provided for investments in electric and thermal energy production and consumption, renewable energy resources, industrial parks, RDI. Specific state aid scheme for investments between: 5-10 million EUR and minimum 50 new jobs created; million EUR and minimum 100 new jobs created; million EUR and minimum 200 new jobs created; over 30 million EUR and minimum 300 new jobs created; over 100 million EUR and minimum 500 new jobs created. Support via grants, tax exemption, green certificates. State aid intensity reaches 40-50% of the total eligible cost of expenditure and may grow by 20% for small enterprises and 10% for SMEs.
34 Why choosing IAȘI? 6. LABOR FORCE IAȘI hosts 5 public universities (covering all scientific fields, including medicine, technical studies, architecture, agriculture, creative arts, social sciences and humanities). IAȘI delivers to the labor market graduates per year. IAȘI has a young population (more than 50% under 40 years old). Pool of technical engineering and technically skilled professionals. IT&C talent pool. Cost advantage. Competitive prices of highly skilled labour force: 2nd lowest in the EU. Particularly strong language skills of both management and technical staff (English, French, German, Italian). 95% of young Romanians speak English, 47% speak at least one other foreign language and 26% speak 2 foreign languages.
35 SUMMARY: Iași County Your business partner for 2014 Business opportunities Research & development Research projects in IT&C, pharma, energy, telemedicine, Access to EU funds (Horizon 2020) Business infrastructure in place Transagropolis Park Iași Industrial Park IT&C Cluster Corporate Access to EU funds (Structural Funds, Horizon 2020) Human Resources Young, well trained and skilled human resources (all specialities) Relatively low labour force costs Agriculture & Environment Renewable energy potential (eolian energy) Vineyards tradition Zootechnics Grains Economic & legislation background Positive country ratings from specialized agencies Facilities for investors (land, utilities, administration support, GRANTS, banks)
36 Business opportunities in place, in IAȘI, TODAY. 1. IAȘI INDUSTRIAL PARK Land available (3229 K sqft). Investments in technical fields of production could benefit from a highly skilled labor pool available immediately (professionals from communist companies FORTUS - CUG, ȚESĂTURA - shut down after 1989 or later in siderurgy, metalurgy, electrotechnics, engines, textiles etc.). Investments in technology and RDI are subject to additional fiscal incentives (20% deduction from the eligible costs for RDI). Larger investments can benefit from state aid schemes. Possibiliy to get European Funds for the development of the company.
37 Business opportunities in place, in IAȘI, TODAY. 2. IT&C Romania is the regional pole for international IT&C companies, and IAȘI is the 2nd top destination (after Cluj-Napoca). Romania is the EU leader and 6th in the world by the number of certified specialists (230 IT specialist/million graduates/year, one of the highest rate in the world, exceeding U.S. and Russia). 2nd lowest labor cost market. Market value în 2013: EUR 150 million. Over 800 companies. Class A offices available in IAȘI (to reach 2152 K sqft before 2015). Top destination for outsourcing and custom software development. Access to EU structural funds (including HORIZON 2020, with a total budget of EUR 80 billion). Investments in technology and RDI are subject to additional fiscal incentives (20% deduction from the eligible costs for RDI). Fiscal incentives. IAȘI is a stable environment for IT&C. Possibility to join the Regional Innovative Cluster EURONEST IT&C HUB which was set up in 2013 and gathers companies, universities and administration from the North-East Region of Romania.
38 Business opportunities in place, in IAȘI, TODAY. 3. CONSTRUCTION AND EQUIPMENTS Due to EU funds, Romania and Iași are growing rapidly. Therefore, investment on rehabilition of community infrastructure and facilities can achieve the twin goal of increasing people access to basic services and utilities and supporting business development. PPP legislation was recently modified to facilitate large investment projects. Construction and rehabilition priorities: highways and regional road infrastructure; irrigation systems for intensive agriculture; broadband infrastructure. ESTIMATIONS SHOW A TOTAL INVESTMENT VALUE OF OVER EUR 1 BILLION IN THE NEXT EUROPEAN PROGRAMMING PERIOD, IN THE NORTH-EASTERN REGION.
39 Business opportunities in place, in IAȘI, TODAY. 4. AGRICULTURE Predominantly agricultural, due to its topography, IAȘI county is suitable for agriculture diversification. Excessive fragmentation of ownership has led to a decrease in the degree of mechanization and equipment, lower agricultural productivity and ultimately led to the practice of subsistence agriculture. Recently, associated systems were set up to operate larger area of land. Investments are needed especially in terms of: the agricultural mechanization, the biological material used, the proper use of chemical fertilizers and pesticides, irrigation. Foreign investors have access to qualified human resources and EU funds to develop agricultural potential and acquire technology.
40 MEDICAL FRIENDLY ADMINISTRATION YOUTH INTERNET INFORMATION INFRASTRUCTURE BUSINESS CAPITAL RESOURCE CREATIVE ART CONSTRUCTION YES LOW COSTS COMMERCIAL LEAD DESIGN INDUSTRIAL PARKS FACT YES PHARMA UNITED ENGAGE WEB NETWORK SOFTWARE LOW RISK APPLICATION SPEED DATA MULTICULTURALISM BUSINESS CAPITAL NATURAL RESOURCES ECONOMIC DIVERSIFICATION TRAINING TOWER COMMERCIAL LEAD TRADITION DESIGN IMPROVE FICTION EXPAND ENGAGEMENT WEB NETWORK TRANSNATIONAL MARKETS HI-SPEED INTERNET DATA TELEVISION WORLD OFFICES DIGITAL SMART EDUCATION TALENT SCIENCE TEXT INTERNET DIGITAL INFORMATION TRABSPARENCY STUDY KNOWLEDGE AGRICULTURE ACADEMIA INDUSTRY T&C
41 Thank you for your attention! Cristian Mihai ADOMNIȚEI President of Iași County Council Web: Open for innovation
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