Located in Central and Southeastern Europe, Croatia has been traditionally linking West and East. Today this role is even more important, as country has started integration in EU, while maintaining its close ties to its Central, Eastern and Southeastern European neighbors.Croatia has been EU member state from July 2013.

Competitive investment environment of Croatia, characterized by excellent location in the middle of South Eastern Europe, improved business climate, and high intellectual capital has resulted in fact that Croatia was one of most attractive investment location in CEE according FDI per capita within the period 2006-2013.

Nova Gradiška is situated in eastern part of Croatia. It is town with 15.000 citizens and center of area with ap-proximately 60.000 inhabitants. The town is situated in plain area with mountain background. Nova Gradiška is positioned on main European motorway (E 70) and railway directions, which connect West Europe with South-east Europe and Asia (European transport corridor 10), and North Europe with Mediterranean (Euro-pean transport corridor 5c – Budapest – Adriatic see).

Natural potential, saved environment with low level of environmental pollution create opportunity for high quality and healthy life, and opportunity for development of tourism and ecological agriculture production. Nova Gradiška is important industrial center with high development potential in metal processing, wood pro-cessing, electro-technical and food processing industry. Development of educational institution and business support infrastructure create an excellent base for intensive economic growth and development.

VISION:

“City of Nova Gradiška has been developed as industrial and educational centre and bases its development on knowledge and innovativeness.“

WELCOME TO NOVA GRADIŠKA, CROATIA

THE CITY OF NOVA GRADIŠKA – DEVELOPMENTAL POTENTIALS

SKILLED, EDUCATED AND MOTIVATED WORKFORCE

• With professional, IT/IS and foreign language knowledge, willing to learn continuously and work according to the European working standards, • Long tradition in metal processing, electrotechnics, wood and food processing industry, • Intensive development of educational and business support institutions, especially in the field of metal processing, electrotechnics and informatics.

EDUCATIONAL INSTITUTION

• PRIMARY SCHOOLS

• INDUSTRIAL SCHOOL NOVA GRADIŠKA Professional programs: Metal processing (turner, machinery locker, and toolmaker) Wood processing (carpenter)

• ELECTROTECHNICAL AND ECONOMIC SCHOOL NOVA GRADIŠKA

Professional programs: Electro technician, Electro machinery technician, Computer technician

• GIMNASIUM NOVA GRADIŠKA

• MECHANICAL ENGINEERING FACULTY IN SLAVONSKI BROD

FAVOURABLE GEO-TRAFFIC POSITION

DEVELOPED BUSINESS INFRASTRUCTURE

• BUSINESS INNOVATION SUPPORT CENTRE (BISC) • International highway (E 70) and international railway corridor (EC 10) • Telecommunication infrastructure • Developed Banking Sector • Developed Insurance Sector

• Nova Gradiška is positioned on international highway (E70) and international railway corridor (EC10), which link West Europe with Southeaster Europe and Asia, and close to the intersection of two Pan-European transport corridors EC 10 and EC 5c (Budapest – Adriatic sea)• Close to and good access to European Union and South- eastern and Eastern Europe market.

Mission: “Regional development by investment attraction.”

Competitive investment environment of Croatia, characterized by EU membership in 2013, improved business climate, high intellectual capital, excellent location in the middle of Europe and cost efficiency, has resulted in fact that Croatia was number four investment location in Europe according to FDI per capita. Excellent location on cross of two European transport corridors EC 10 and EC 5c, motivated professional workforce, developed communal and business infrastructure, investment incentives and benefits, high level of responsiveness and flexibility, create opportunity for Your successful business.

Industrial park Nova Gradiška offers excellent terms and conditions for investment, comparable with the best in Europe.Industrial park Nova Gradiška is positioned on very fa-vorable location along international highway E70. It is developed on 82 ha, while additional 60 ha is available.

PROFESSIONAL SUPPORT – HIGH RESPONSIVENESS AND FLEXIBILITY

Industrial park Nova Gradiška Ltd. ensures full professional support, fast response on investors’ requirements and flexibility:

• Coordination with local and regional institutions – Building permit issue,

• Coordination with state institutions – State Investment incentives and benefits – Ministry of

Economy,

• Coordination with Employment service and Educational institutions – Selection and education

of employees,

• Contacts with Project and Building companies, Business service companies, potential

supplier, customers or partners.

PANNONIAN GREEN INDUSTRIAL PARK NOVA GRADIŠKA

BUSINESS INNOVATION SUPPORT CENTER (BISC)

The Project Business Innovation Support Center (BISC) Nova Gradiška has been realized with the pur-pose to contribute to the sustainable regional development and to improve competitiveness of business sector by creation of business environment favorable for development of knowledge and technology based innovative entrepreneurship and development of human capital.BISC focuses its activities on CNC technology in metal processing and wood processing industry, electrome-chanical engineering and computer science. The project is realized in close cooperation with Industrial school Nova Gradiška, Electrotechnical and economic school Nova Gradiška and Faculty of Mechanical Engineering in Slavonski Brod.

Basic components of the project:

Training center for New Technologies

Offers basic and advanced training on using CNC and CAD techniques, and it is equipped with modern machinery for CNC metal and wood processing.

- Basic and advanced training in CNC metal processing - Basic and advanced training in CNC wood processing

Centre for Business and Marketing Services

Business consulting in the following areas:

- Business planning and development, - Preparation of investment studies, business and marketing plans, applications for EU and other funds, - Financial management, - Marketing management, - Human resource management.

Business Technology Incubator

Office, classroom and manufacturing space is given to rent to new entrepreneurs and existing technology oriented compa-nies at favorable prices, general office and presentation equip-ment, LAN, advisory and technical services are also provided. It provides an ideal place for the development and business growth.

Center for Engineering and Technology Services

Centre offers advisory services to SME in the region, focused on mechanical engineering, electrical engineering and wood industries. Center also provides services of CNC metal pro-cessing in terms of making high precision metal parts and products, and CNC wood processing and manufacturing of complex products of wood. Services in 3D scanning and re-versible engineering are also provided.

INVESTMENT AND EMPLOYMENT INCENTIVES AND BENIFITS

With the aim to promote investment in economic projects, relating to the number of new employees, type, value and dynamism of investment, competitive package of investment incentives and benefits could be approved on state level and local level.

Incentive measures for investment projects in the Republic of Croatia are regulated by the Act on Invest-ment Promotion and Enhancement of the Investment Environment (OG 111/12) and pertain to investment projects in: manufacturing and processing activities; development and innovation activities; business support activities and high added value services.

Incentive measures are:

1. Incentives for microenterprises 2. Tax advantages 3. Tariff preferences 4. Incentives for eligible costs of new jobs linked to the investment project 5. Incentives for eligible costs of training linked to the investment project 6. Incentive measures for: development and innovation activities; business support activities; and high added value services 7. Incentive measures for capital costs of the investment project and 8. Incentive measures for labor intensive investment projects

TAX INCENTIVES

EMPLOYMENT INCENTIVES

PROGRAM FOR INVESTMENT AND EMPLOYMENT PROMOTION OF THE CITY OF NOVA GRADIŠKA

• Local tax, communal contribution and communal fee benefits, • Full support in new employees training (including co-financing), • Sale, leasing, usage or granting of construction rights of infrastructural equipped land in Industrial Park under favorable conditions – price 3.4 EUR/m2.

Investment amount(€ mil.)

Number of newly employed

Period (years)Period of

employment (years)Profit tax rate

<1 5 (3 for micro) 10 3 (SME’s), 5 (large) 10%

1-3 10 10 3 (SME’s), 5 (large) 5%

>3 15 10 3 (SME’s), 5 (large) 0%

County Unemployment

Rate

Incentive Rate in Relation to Eligible Costs of Opening New Workplaces

Increase for Technology Innovation and Develop-

ment Centers

Increase for Business Support Strategic

Activities

Incentives for innova-tion and development

activities

<10% 10% (max. 3,000 €) +50% (1,500 €) +25% (750 €) 20% of the eligible cost of buying the equipment /machinery (up to € 0.5 million) - All the equipment has to be high technology

10-20% 20% (max. 6,000 €) +50% (3,000 €) +25% (1,500 €)

>20% 30% (max. 9,000 €) +50% (4,500 €) +25% (2,250 €)

BUSINESS COSTS IN NOVA GRADIŠKA

Market Dimension Utilites EUR

Size of Domestic Market 4.7 mill Water Cost (drinking water)/ m3 1.03

Size of Regional Markets 60 mill Sewage - waste water /m3 0.42

Size of Market Country Serves 600 mill Waste/garbage collection /month 7.22

Market Accessibility free trade Gas Cost / m3 0.40-0.50

Manpower Availability Electricity Cost

Production +++ Installed power EUR / kW 186.33

Data Processing / Administrative +++ Tariff model - Medium Voltage

Engineers / Skilled Production ++ Working power EUR / kW / month 13.06

Management ++ Working energy /kWh

Executive + High / low tariff 0.8552 / 0.6184

Research & Development +

Training Provision +

Skill Assessment +

Unemployment Rate 25%

Unionized Labor (%) 50-70% Transport EUR

% Completing Primary School 98% Road Zagreb-Trieste 700.00

Population 4.7 mill > 500 km 0.9 EUR/km

Rail

Economic Indicators Ship N.Gradiška - Hamburg 40", <35t 1,200.00

N.Gradiška - Barcelona 40",<35t 1,000.00

Political and Economic Stability EU membership Telecommunications EUR

Corporation Tax - Profit tax 20% Monthly Costs (monthly fee) 11.58

Financial Assistance/Grants for new employment National circuits - daily tariff / min 0.0380

Enterprise Zones/Tax Concessions investment incentives - night tariff /min 0.0190

Inflation Rate 2.3 % Telephone Costs - call to Germany / min 0.3119

Bank Rate 4-8%

Property EUR Communal Fees and Contributions EUR

Site Costs - Commercial (city) / ha 500,000 *Communal fee - Industrial park - IV zone

Production Space - Industrial park / ha 35,000 Production area /m2/month 0.0676

Cost to Build/m2 (prod.space) 200-400 Service area /m2/month 0.1470

Cost to Rent/m2 **Communal Contribution - IV zone /m3 1.08

Office Space ***Water contribution - B zone

Cost to Build/m2 (city) - office 600-1,000 Office area /m3 5.80

Cost to Build/m2 (non-city) - prod.space 200-400 Production area /m3 1.04

* Calculation based on surface (m2) of production and service area - monthly payment

** Calculation based on building volume - one-time obligation at moment of building permit issue - Local legislation

*** Calculation based on building volume - one-time obligation at moment of building permit issue - State legislation

Processing Industry - Average salary

Neto salary Total costs

Qualification level:

High degree (M.Sc.) 850 1,400

Higher degree (B.Sc) 580 950

Qualified worker 460 720

Unqualified worker 370 580