Machinery, Equipment and Technology

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Machinery, Equipment and Technology
Presentation by Zlatan Miloevic Director Serbia
n Investment and Export Promotion
Agency SIEPA OECD Conference, Zurich
September 4th, 2003
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Business environment
Tax regime The lowest tax rate in CEE 14 Tax
holidays, tax credits, exemptions
Free Trade Agreements Free Trade Agreement with
Russia SEE Free Trade Area Autonomous Tariff
Preferences for EU
Favorable geographic position Serbia is
positioned at the intersection of pan European
corridors no. 10 and 8 (river Danube)
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Automotive Industry in Serbia

• Automotive industry in Serbia comprises 4
  sub-sectors
• Production of engines for motor vehicles
• Production of automobiles
• Production of car bodies, trailers and
  semi-trailers
• Production of components and sets for motor
  vehicles and engines
• Prior to UN imposed sanctions, Serbia had the
  competence, capacity and infrastructure to
  produce around one quarter of a million vehicles
  annually.
• There are 155 companies within automotive
  industry in Serbia
• They realized only 0.67 of the total domestic
  product GDP in 2001

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Workforce Automotive Industry

• Total number of employees 30,600 or 2.28 of the
  total workforce in Serbia
• In 2001, average monthly net salary was 5,740 YUD
  or 84 EUR.

Source Federal statistical office
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Structure of the Automotive Industry
Structure of the sector according to size of the
company
Structure of the sector according to ownership
Source Federal Statistical Office
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Company profiles Automotive Industry

• The representative companies in the automotive
  industry, are
• Zastava Automobili, Kragujevac holding
  activities (production of cars, parts and trade),
  consisting of 20 smaller companies. Joint stock
  company. ISO 9001.
• 21. Oktobar, Kragujevac production of parts and
  accessories for motor vehicles and engines.
  Socially owned company.
• MIV, Sremska Mitrovica production of engines
  and turbines. Socially owned company.
• Petar Drapin, Mladenovac production and parts,
  accessories and engines for motor vehicles and
  different types of metal products. Joint stock
  company.
• FAD, Gornji Milanovac production of parts and
  accessories for motor vehicles. Joint stock
  company. ISO 9001.
• Fabrika akumulatora, Sombor production of
  treble chargers and transmission batteries. Joint
  stock company.
• Case studies IDA, Kikinda

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Electronics Industry in Serbia

• Electronics in Serbia encompasses 15 sub-sectors
• Core products manufactured in Serbia include
• TV and radio receivers
• Telephone sets
• Power transformers
• Batteries along with white goods as
  refrigerators, washing machines and tumble
  dryers.
• The value of electronic imports, in 2001, was
  around seven times higher than exports
  opportunities for investors also on the local
  market.
• In 2001, total number of companies was 1,319
• Electronics industry realized 1.08 of total
  social product/GDP in 2001 and 2.5 of exports in
  2001

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Workforce Electronics Industry

• Total number of employees 24,700 or 1.84 of the
  total workforce in Serbia
• In 2001, average monthly net salary was 5,740 YUD
  or 96.5 EUR

Source Federal Statistical Office
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Structure of the Electronics Industry
Structure of the sector according to ownership
Structure of the sector according to size
Source Federal Statistical Office
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Company profiles Electronics Industry

• We analysed following representative companies in
  the electronics industry in Serbia
• (according to the total assets and importance of
  production program criteria)
• EI Corporation, Ni production of wide range of
  electronic products. Joint stock company.
• VF Holding, Belgrade production of radio, TV
  and telecommunication equipment. Joint stock
  company. ISO 9002.
• Pupin Telecom, Belgrade production of
  telecommunication equipment. Joint stock company.
  ISO 9001.
• Technicom Computers, Belgrade production, sales
  and maintenance of computer systems and
  equipment, home appliance, audio-video devices
  and telecommunication equipment. Private company.
• DZITI Comunictions, Belgrade production of
  telecommunication equipment. Socially owned
  company. ISO 9001.
• Case studies Siemens Yugoslavia, Alcatel Pupin
  Yugoslavia

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Machinery Industry

• Machinery in Serbia encompasses 6 sub sectors
• Power generating machinery
• Metal-working and wood-processing machinery
• Agricultural machinery
• Construction and mining machinery
• Professional equipment machinery
• Machinery for spec. industries
• Total number of companies is 382
• Total number of employees is 25540
• Companies within machinery sector account for
  3.9 of the total number of industrial companies
  and employ 4.8 of the total workforce

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Structure of the Machinery Industry
Structure of the sector according to ownership
Structure of the sector according to size
Source Serbian Chamber of commerce
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The share of the machinery industry in Serbias
total industry
Companies - total number of 382
Source Serbian Chamber of Commerce
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Company Profiles Machinery Industry

• We analysed following representative companies in
  the machinery
• sector in Serbia (according to the total assets
  and importance of
• production program criteria)
• Minel Kotlogradnja, Beograd company for
  designing, producing, installing and selling of
  power generating equipment. Socially owned
  company.
• 21 Maj, Beograd factory for producing
  accessories and instruments for metal-working and
  wood-processing. Socially owned company.
• 14 Oktobar, Krusevac factory of processing and
  mining accessories. Limited liability company.
• IMT, Knjazevac production of engines and
  tractors for agriculture. Joint stock company.

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Why Serbia?

• Size of the market Serbia is relatively
  large market in terms of population in comparison
  to most of its neighbours
• Good geographic location may serve as a
  distribution center to neighboring countries
  good transportation link.
• Exceptional cost efficiencies low labor
  cost, combined with lowest corporate tax rates in
  Central Europe and increasing productivity to
  underpin profitability
• Intellectual capital
• Linguistic skills best command of English
  language in Central and Eastern Europe by very
  vide margin.

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Why Serbia?

• Long tradition of cooperation with most major
  global companies - local labour has already
  received certain transfer of know-how and is
  familiar with technology, quality standards and
  procedures required by foreign investors.
• Free Trade Agreements - already ratified with the
  Russian Federation, Bosnia Herzegovina,
  Macedonia and Hungary. The negotiations are
  finalized but have not yet been approved by the
  Parliaments of Romania, Bulgaria, Albania and
  Croatia.
• Estimated average GDP growth of 5-6 per year
  will additionally influence local market demand.
• Widespread commitment to international quality
  accreditation

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• Thank you for your attention!
• Serbian Investment and Export Promotion Agency
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• Fax [phone]
• e-mail office_at_siepa.sr.gov.yu
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