1BARANYA COUNTYResource Map

1Imprint

Published by Chamber of Commerce and Industry of Pcs-Baranya (HU)Publisher in charge: Dr. Tams Skfi

Layout and Printing by Molnr Nyomda Ltd.Pictures unmarked are just for illustration purposes

Work and collaborate!

H-7625 Pcs, 36 Majorossy Str.Tel.: +36 72 507 148, Fax: +36 72 507 152

E-mail: pbkik@pbkik.hu, www.pecsikamara.hu www.youtube.com/pecsikamara, www.facebook.com/pecsikamara

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Date of compilation: May 2016Please check www.pecseconomy.eu

for updated information

www.pecseconomy.eu

1Introduction

Baranya, Hungarys southernmost county is a medi-

um sized administrative unit of the country with a

population of 371,000 and a land area of 4,300 sq km.

With its plains and hills, rivers (the Danube and the

Drava), countless streams and artificial lakes, it is one

of the most diverse counties in Hungary. Due to its

natural conditions, mineral resources and multi-ethnic

population, Baranya belonged to the most developed

areas in the past.

The economic changes in the past 25 years were

not beneficial to Baranya County. Large capital was

rarely invested in the county, which had an adverse

transport network for a long time. The stagnation of

the agriculture and the construction industry resulted

not only in the relative but, in certain years, also the

actual deterioration of the situation of people living

here. Several local organizations intended to reverse

the negative processes. They were seldom productive;

however, but some of the initiatives have proved to

be successful. Beside programs with a spectacular

start, negative processes, which have prevented real

breakthroughs, have also emerged. One of the reasons

for this may be the insufficient knowledge of local

conditions that is why we considered it important to

compile an inventory of the county and its smaller

administrative units. This resource map primarily pre-

sents the diversity and qualifications of the population

living here, shows the present conditions and oppor-

tunities of education and training, and describes the

condition of business and agricultural infrastructure.

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POPULATIONThe population of Baranya County was approximately 371,000 at the beginning of 2015.This is 1.8% lower than it had been two years before. The negative change is characteristic of all administrative units.

Figure 1: Population of Baranya, 2015 (persons)

Szentlrinc District:

Szigetvr District: Bly District:Hegyht District:

Koml District:

Mohcs District:Sikls District:

Sellye District:

Pcsvrad District:

Pcs District:

24 385

14 586

35 539

13 986

11 567

178 291

34 084

34 210

12 40511 607

Source: NSO (National Statistical Office)

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3According to the data of the population census 2011, 85.1% of the population was Hungarian, 6.7% was German, 4.6% was Gipsy and 1.8% was of Croatian origin. 0.6% of the population belongs to various ethnic groups that have been living here for several decades or centuries, whereas 1.2% of the population comprised foreign students studying at the University of Pcs and people who had settled down here in the migration processes of the past two or three decades. The number of the Dutch who relocated from the Netherlands was significant.

Table 1: Population by nationality, 2011 (persons)

Nationality

Bly

Dist

rict

Hegy

ht D

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t

Kom

l D

istric

t

Moh

cs D

istric

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Pcs

Dist

rict

Pcs

vra

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stric

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Selly

e Dist

rict

Sikl

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Szen

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rict

Szig

etv

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rict

Bara

nya C

ount

y

Hungarian 10 541 11 500 29 557 30 121 159 194 10 134 12 573 30 781 12 686 21 283 328 370

German 2 918 923 1 555 6 080 8 258 2 646 112 2 273 519 493 25 777

Gipsy 708 1 518 1 728 1 342 4 408 234 2 283 2 871 938 1 555 17 585

Croatian 360 11 77 905 3 272 139 1 381 721 104 215 7 185

Serbian 12 5 28 185 359 12 6 168 12 7 794

Rumanian 17 20 66 33 312 9 23 44 32 44 600

Polish 1 13 6 161 6 2 16 2 6 213

Bulgarian 2 2 15 8 135 5 6 8 5 18 204

Slovak 10 1 19 18 104 5 3 13 4 5 182

Greek 1 1 20 1 116 1 5 2 1 1 149

Ukrainian 3 9 5 66 1 3 11 3 101

Armenian 4 2 5 4 60 1 2 10 1 5 94

Rusyn 1 2 69 4 2 2 80

Slovenian 2 2 4 19 3 1 3 34

Minority nationalities total

4 037 2 484 3 538 8 593 17 339 3 059 3 826 6 144 1 621 2 357 52 998

Russian 5 15 9 215 1 4 17 7 13 286

Arabic 1 9 5 178 8 7 208

Chinese 1 4 5 91 1 2 6 3 113

Vietnamese 1 44 1 1 47

Other 58 70 211 141 2 809 55 26 170 70 211 3 821

Total 14 643 14 054 33 335 38 874 179 870 13 249 16 430 37 123 14 390 23 875 385 843

Source: NSO

4 5

The knowledge of foreign languages of the county population is highly influenced by their nationality. Accord-ingly, the number of people speaking German, Gipsy, Croatian and Serbian is quite high. More and more people are learning other languages as well. The number of people speaking English is high (57,503). This is close to the number of people speaking German (67,312); however, more people with higher education qualifications speak English than German.

Figure 2: Knowledge of languages according to the highest completed level of education, 2011 (%)

0

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40

50

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Source: NSO

Other

Dutch

Serbian

Spanish

Rumanian

French

Italian

Russian

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English

German

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5Over 221,000 inhabitants of the county population above 16 years of age have secondary or higher educational qualifications. Approximately 50,000 people of them (22.4%) have higher educational qualification, and 95,000 (42.8%) secondary education. These rates (30.3% and 46.5%) are even better in the town of Pcs.

Table 2: Population aged17 years or over by the highest qualification, 2011 (persons)

Districts

Secondary education without matriculation

examination with certificate

Matriculation examination

University, college degree

Total

Bly 2 697 2 268 1 035 6 000

Hegyht 2 707 2 139 761 5 607

Koml 9 223 8 046 2 582 19 851

Mohcs 8 184 7 389 3 205 18 778

Pcs 31 066 55 456 35 045 121 567

Pcsvrad 2 968 2 335 997 6 300

Sellye 2 974 2 058 638 5 670

Sikls 7 961 7 133 2 556 17 650

Szentlrinc 3 451 2 995 1 034 7 480

Szigetvr 6 012 4 851 1 707 12 570

Baranya County altogether 77 243 94 670 49 560 221 473

Of which: Pcs town with county rights 23 928 47 771 31 088 102 787

Source: NSO

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BUSINESS ENVIRONMENT

Baranya County belongs to the underdeveloped areas in terms of its GDP per capita. The county value is only two thirds of the national average. If data are calculated without the value of Budapest, the county figure appears to be better (88%). However, this just reveals the extent to which regions are lagging behind Budapest. The situa-tion is far more disadvantegous if the data are compared to the European Union average. The GDP per capita in purchasing power is only 44% of the EU-28 average.

Table 3: GDP per capita in Baranya County

Description 2008 2009 2010 2011 2012 2013 2014

Per capita gross domestic product at market prices

Thousand HUF 1 891 1 814 1 816 1 841 1 902 1 947 2087

As percentage of national average 70,2 69,2 67,1 65,3 65,9 64,1 64,0

Rank of the county in GDP per capita ranking 12. 12. 13. 15. 13. 16. 15.

GDP per capita based on purchasing power parity

PPS 10 990 11 077 11 233 11 586

As percentage of EU-28 average 43,4 42,6 42,9 43,6

Source: NSO

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7The situation of the county is not ideal considering the economic sectors either. The rate of agriculture is above the national average whereas the industry especially the processing industry - significantly lags behind.

Figure 3: Gross value added by economic sectors (at current prices) in Baranya County (Million HUF)

2011 2012 20130

100000

200000

300000

400000

500000

600000

700000Mvszet s szabad id; egyb szolgltatsok

Kzigazgats, vdelem; oktats; humn-egszsggyi s szocilis ellts

Szakmai, tudomnyos, mszaki, adminisztra-tv s szolgltatst tmogat tevkenysg

Ingatlangyletek

Pnzgyi, biztostsi tevkenysg

Informci, kommunikci

Kereskedelem; szllts, raktrozs; szl-lshely-szolgltats s vendglts

ptipar

Ipar

Mezgazdasg, erdgazdlkods, halszat

Arts and leisure time; other services

Public administration, defense, education,health and social care

Activities supporting services andprofessional, academic, technical andadministrative activities

Real estate transactions

Financial, insurance activities

Information and communication

Trade, transportation, warehousing;Accommodation services, restaurants andhotels

Construction industry

Industry

Agriculture, forestry and fishery

Source: NSO

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There are more than 23,000 enterprises in the county, the majority of which are corporate entities. The number of enterprises in agriculture and industry is below 3,000, which shows that the economic output per business is the highest in these sectors.

Table 4: Number of enterprises per industrial sector and their legal status in Baranya County, 2013

Economic Sector Companies Sole proprietors Total

Agriculture, forestry and fishery 539 472 1 011Mining and quarrying 21 1 22Food, drink and tobacco production 225 75 300Textile, clothes, leather and leatherware production 104 55 159Wood processing, paper productions andprinting 162 38 200Production of chemicals and chemical products 8 2 10Pharmacy 2 2Production of rubber, plastic and other non-metallic mineral products 127 16 143Manufacture of basic metals and fabricated metal products 204 39 243Production of computer, electronic and optical products 18 8 26Manufacture of electrical equipment 19 4 23Manufacture of machinery and equipment 72 3 75Manufacture of motor vehicles 21 5 26Other manufacturing 180 153 333Manufacturing 1 142 398 1 540Electricity, gas, steam and air conditioning supply 22 22Industry, without water supply; sewerage; waste managment and remediation activities

1 191 399 1 590

Water supply; sewerage; waste managment and remediation activities 54 12 66Industry 1 245 411 1 656Construction 1 170 702 1 872Trade, motor vehicle servicing 2 683 1 462 4 145Transporting and storage 315 283 598Accommodation and food service activities 562 432 994Information and communication 585 225 810Financial and insurance activities 316 500 816Real estate activities 767 144 911Professional, scientific and technical activities 2 169 1 002 3 171Office administrative and support activities 598 411 1 009Public administration and defence; compulsory social security 6 6Education 349 648 997Human health and social work activities 740 390 1 130Arts, entertainment and recreation 203 208 411Other services 246 568 814

Total 12 493 7 858 20 351

Source: NSO

9SUPPLIER CAPACITIES

Machinery Manufacturing Industry

The machinery manufacturing industry is traditionally a diversified key sector, which has firm professional grounds (and history) in Baranya County. There are approximately 300 Hungarian and foreign SMEs working in this industry.

The South West Hungarian Engineering Cluster (www.ddgk.hu) is an Accredited Innovation Cluster, which is also entitled to use the international Bronze Label qualification. Members cover a comprehensive scale of engineering activities using state-of the art technologies including CNC technology, sheet metal working, metal cutting, water jet cutting and metalworking. Enterprises with all the required technological standards and ISO qualifications are suppliers to the automotive, engineering and steel structure industries. 50-80% of their revenue is generated by export activities. The Faculty of Engineering and Information Technology of the University of Pcs has laboratory capacity and a development center for innovative electrical technologies and mechanical engineering.

Technologies, activities and qualifications used by engineering enterprises

CNC technologies (milling, machine cutting, sheet metal working, machining, horizon lathe, turning, grinding, top grinding), tap welding, edge bending, surface treatment technologies, machining, injection moulding technologies, rolling, hydrogen-powered fuel cell technologies, heat treatment, industrial welding technologies (CO, inert gas,GMAW, SAW, MIG, TIG, AWI, WIG), laser, plasma and flame cutting, laser engraving, mechanical machining and cold forming, robotic welding, deburring, compu-ter-aided design andwater jet cutting. Fabricated metal

product manufacturing (automotive slivered parts, steel structures, electric filter housings, roller/chain tracks, mechanical safety devices, engine and generator houses) electrical equipment manufacturing (sensors, metering boxes, control and regulating devices), mechanical en-gineering - mechanical equipment manufacturing (food processing technologies, welded crane components, fireplaces/chandeliers) and automotive manufacturing (aluminum silo units, hydraulic equipment, communal vehicle superstructures)

ISO 9001, 9002, ISO 14001, DIN EN ISO 3834-2, ISO TS 16949, EMAS DIN EN 1856-2, EN 1090-2, DIN EN 18800-7, AD 2000 HP0, DIN 2261

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Food Industry

The food industry in the county is closely related to food production, agro-innovation (manufacture of agricultural equipment) and agro-trading. The aim of the majority of the local Hungarian food production and agro-enterprises is to implement sustainability both in production and consumption. Local developments cover the Research+De-velopment+Innovation (RDI) of the full food production chain. The goal of the food industry projects is to establish a short food chain both in space and time that keeps the biological value and promotes the creation of local brands, whereby not only local points of sales are created but export opportunities are also generated (especially for unique Hungarian products, the so-called Hungaricums). The role of RDI is of great importance in the production of quality food with high added value, functional foods and Hungaricums in the local food industry, shortening the food production chain and food safety.

Most important local sectoral development priorities

Research on using traditional agricultural products in the product chain with special focus on their physiological effects, eg- adding grape seeds or herbs to fruit juice, and experimental development of the production of handmade beer based on hop as vegetable ingredient.

Research on functional food which is related to the spe-cific local products of the county, their development as marketable products (eg. honey capsule, development of age-related foods), development of healthy food ad-ditives, and research on grape varieties.

Companies in the food industry have the required operation and production licenses.

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Creative Industry

The key objective of the creative industry is to generate innovative industrial processes with high economic po-tential, whose impact on economic development may improve the income-generating capacity and qualitative development of services within the sector.

Key factors of the creative industry: Technology: presenting the use and utilization of the creative industry, its relation to industrial production,

biotechnology, environmental projects, and communication and financial services; Knowledge: operating a network that regularly communicates and co-operates and is capable of coherently

formulating its interests, optimizing the capacity of the internal market and cooperate.

The Creative Industry Cluster (www.kikk.hu) is responsible for managing the paradigm shift of the economic development, whereby a more efficient utilization of the capacities of the local creative industry and export of creative industry products and services should be implemented. There is an outstanding rate of creative companies (including IT enterprises) in the county. The University of Pcs provides training programs of IT, creative industry management and arts as well.

Activities of the creative industry companies in the county

Between 2008 and 2012, the fastest growing areas wit-hin the creative industry were the product, graphic and fashion design areas. The gross added value was nearly tripled and the number of enterprises was increased by two and half times. Software and game development,

planning and design and architecture are the areas where employment grows and entrepreneurial activities increase. Creative industry companies are able to implement all the activities that are related to marketing, public relations and IT development at a high level.

Obtaining qualifications within the creative industry is not relevant.

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Plastic Industry

The plastic industry in Baranya County is significant even when the quality aspects are taken into consideration.

The utilization of the capacities of the enterprises working in the automotive and construction industries and producing for both the domestic and foreign markets can be considered to be acceptable.The organizational, technological and infrastructural developments are implemented continuously partly with their own resources or with funds from tenders.

Clustering has begun recently as a bottom-up initiative to increase market presence and representation and achieve better supplier positions and closer technological cooperation.

Activities and classifications of the plastic industry companies in the county

3D scanning, shading, manufacture of other plastic pro-ducts, manufacture of injection moulded plastic products, manufacture of road vehicle, motor vehicle parts, plastic packaging material, plastic construction materials, plastic plates, sheets, tubes and profiles, technical consulting,

prototype development and production, development and production of complex electronic units, production and trade of polyethylene (PE) packaging material, Ra-pid Tooling, Reverse Engineering, Rapid Manufacturing, design and development, mass production.

MSZ EN ISO 9001:2009, 14001:2005, 28001:2008, EN13067:2003, MA-G standard, DVS Guidelines, ISO14001, HACCP and ISO/TS 16949.

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Environmental Industry

The environmental industry is one of the industrial branches that have been developing dynamically in the past decades. They include large re-gional companies and some small businesses with only a few employees. The majority of them are Hungarian enterprises, but there is municipal ownership as well and restructuring that complies with the communal policy of the government. The number of companies operating in the environmental and related industries is over 200 in the county.

The Hungarian Environmental Technologies Manufacturing and Development Cluster (www.hunvirontech.hu) has been established recently. The primary objective is to develop and produce tools and procedures for the resource-efficient urban systems management. Close co-operation is planned between manufacturers and suppliers, and between the supply and demand sides, involving the knowledge base of the national and local research units. Another important objective of the cluster is to create jobs.

The coordination of the activities of the manufacturers enables the region to produce entire product chains rather than remain in a supplier position. This will not only improve the income generating capacity of the region, but it also contributes to retaining highly qualified specialists here and creates new jobs.

The product range is expected to cover the majority of necessary communal industry equipment. Vehicles suitable for transporting urban solid and liquid waste, road surface repair and slippery prevention equipment, vehicles for water utility companies, flat bed and curtainsider freight superstructures, which can enable further market expansion on the basis of the current orders, can also be found in the portfolio. The Faculty of Engineering and Information Technology of the University of Pcs also offers environmental industry training while there is an environmental industry research centre at the Szentgothai Research Centre.

Activities and certifications of the environmental companies in the county

Environmentally friendly, up-to-date disposal of animal waste, mining, CNC machining, turning, geological exp-loration, geothermal exploration-planning , production of machinery, welding, hydrogeological investigations, machinery with infrared heat technology for asphalt re-pair and reheating asphalt, composting, environmental

planning, collection, selection and sale of secondary raw materials, engineering services, plasma cutting, radiometric tests, computer aided design, soil mechnical engineering and investigation, collection, treatment and disposal of urban solid waste, water and soil chemical analyses, and laboratory testing (NAT-1370/2012)

ISO 9001, ISO 14001, ISO/IEC 27001 DVS Guidelines, ISO TS 16949

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Biotechnology

There is a long tradition of research on life sciences and biotechnology in South West Hungary and especially in Pcs. Micro-enterprises, which started to cooperate in order to become more effective, were established owing to the research results. This cooperation was later extended beyond the university.

The Biotechnology Innovation Base Cluster, which is an Accredited Innovation Cluster (www.bibnet.hu), was generated from this collaboration in 2007. The cluster and its member companies mainly develop, manufacture and market products and services for the medical biotechnology, pharmaceu-tical and agroalimentary sectors. The cluster provides a more rational use of resources in several research and innovation related areas: procedures investigating the biological impact of ingredients and substances of in vitro diagnostic medical devices, diagnostic procedures, reagents and instruments, pharmaceuticals, cosmetics, foods, and other chemicals with environmental impacts. The world class medical and biotechnological training programs in foreign languages at the Medical School of the University of Pcs and the Szentgothai Research Centre support the professional work of the local SMEs. www.szkk.pte.hu

The research groups of the Szentgothai Research Center at the University of Pcs, and activities and certifications of the county biotechnology companies

Names of the Research Groups by Activities

Circulation Research Laboratory Functional Protein Dynamics Research Group Lab-on-a-Chip Research Group Microbial Biotechnology Research Group Molecular Neurophysiology Research Group Molecular Pharmacology Research Group

Neurobiology Research Group Plant Biology Research Group Reproductive and Tumour Immunology Research Group Signal Transduction Research Group Structural Neurobiology Research Group Wnt Signalling Research Group

Certifications in the field of biotechnology

MSZ EN ISO 9001:2001 qualification, MSZ EN 1997 (Eurocode 7) standard, MSZ EN ISO 9001:2009 qualification, MSZ EN ISO 14001:2005 standard, ISO 9001:2008 audit, ISO 13485:2003 audit, complex systems according to the Hungarian Health Care Standards.

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Engineering Firms

Engineering firms in the county represent eight professions

Geodesy and Geoinformatics Solid Minerals Mining Building Design Building Services Engineering Water management Environmental Protection General contracting Transport

The activities of the approximately 800 SMEs cover all the areas of the technical development such as data processing, structural design, architecture and noise control. The local SMEs are capable of planning industrial facilities and managing the entire construction work. The University of Pcs, Faculty of Engineering and Information Technology offers high quality engineering training, which includes architecture, statics, mechanics, electrical disciplines and industrial design as well.

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Major international companies in the county

Company Activity Website

Amalgam Europe GmbH production of model cars www.finemodelcars.com

Bader GmbH electronics www.badergruppe.com

Cemex Group construction materials www.cemex.com

Eckerle Holding GmbH production of electronics spare parts www.eckerle-gruppe.com

EON AG energy supply www.eon.com

Ethanol Renewables Ltd ethanol production www.pannoniaethanol.com

GC Grohandels Contor GmbH trade of construction materials www.gc-gruppe.de

Harman electronics www.harman.com

Hauni Maschinenbau AG machinery manufacturing www.hauni.com

HeidelbergCement Group building materials www.heidelbergcement.com

iT Systems ICT www.it-system.hu

Jabil Circuit EMS www.jabil.com

Koller Gruppe automotive supply industry www.koller-formenbau.de

Lafarge Group cement production www.lafarge.com

Max Blank GmbH fireplace production www.maxblank-kaminofen.com

ODW-ELEKTRIK GmbH automotive industry www.odw-elektrik.com

Ottakringer Brauerei AG food industry www.ottakringerbrauerei.at

POS-Hungaria GmbH maintenance of upholstered furniture www.polsterservice.de

Spitzer-Group vehicles manufacturing www.spitzer-silo.com

Terex Corporation mechanical engineering www.terex.com

Veolia energy production www.veolia.com

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Major Banks Operating in the County

Bly District

OTP Bank Bly, Hsk tere 8/b

Hegyht District

OTP Bank Ssd, Dzsa Gyrgy utca 2. OTP Bank

Koml District

K&H Bank Koml, Vroshz tr 18.

OTP Bank Koml, Kossuth Lajos utca 95/1.

Mohcs District

Erste Bank Hungary Mohcs, Szabadsg utca 16.

K&H Bank Mohcs, Szenthromsg utca 1-3.

OTP Bank Mohcs, Jkai Mr utca 1.

Pcs District

Budapest Hitel- s Fejlesztsi Bank Pcs, Rkczi t 60.

CIB Bank Pcs, Ferencesek utcja 33.

Erste Bank Hungary Pcs, Rkczi t 62-64.

K&H Bank Pcs, Bza tr 6/a

OTP Bank Pcs, Rkczi t 44.

Raiffeisen Bank Pcs, Bajcsy-Zsilinszky utca 11.

Sberbank Pcs, Kirly utca 66.

UniCredit Bank Pcs, Rkczi t 17.

Magyar Klkereskedelmi Bank Pcs, Bajcsy-Zsilinszky utca 11.

Pcsvrad District

OTP Bank Pcsvrad, Bem utca 2/b

Sellye District

OTP Bank Sellye, Kztrsasg tr 4.

Sikls District

OTP Bank Sikls, Felszabaduls u. 60-62.

Szentlrinc District

OTP Bank Szentlrinc, Munkcsy Mihly utca 16/a

Szigetvr District

K&H Bank Szigetvr, Szchenyi utca 4.

OTP Bank Szigetvr, Vr utca 4.

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INFRASTRUCTURE

Location of Pcs, Baranya County

Figure 4: Distance of European Cities from Pcs

BERLIN

1000 km800 km500 km

MUNICH

ZURICH

CRACOW

BUDAPEST

BELGRADE

PCS

VIENNA

TRIESTE

ZAGREB

PRAGUE

ISTANBUL

ATHENS

ROME

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PCS

Production Infrastructure

Baranya County has all the elements of a modern production infrastructure.

Road Network

The M6 Motorway between Budapest and Pcs connects the county directly with the European motorway network. After the planned developments have been implemented, there may be direct connection with the southern, eastern and western countries as well.

Figure 5: Motorway Network in Hungary (October, 2015)

Source: Wikipedia

EXISTING MOTORWAYS

CLEARWAYS UNDER CONSTRUCTION

PROPOSED CLEARWAYS

PCS

20 21

Rail Transport

There is an electrified rail line between Pcs and Budapest with direct train service pairs nine times a day. There is access to Zagreb by transfer from either the Szigetvr or the Dombvr railway line, and Osijek can also be reached by rail from Villny. Main lines and branch lines within the county can be used by both passenger and freight trains.

Figure 6: Rail Map of Hungary

Source: Wikipedia

PCS

21

Air transport connections

The Pcs-Pogny Airport is located 9 km south of the city center of Pcs, next to the Main Road 58, 3 km from the exit of the Pcs-Budapest motorway and the Pcs South Industrial Park. The four-lane road provides a quick connection between the airport and the city center. The Pcs-Pogny public airport has cross-border right. It is currently conducting general air transport activities such as sports aviation, training, and receiving business flights. Charter flights are mainly launched and received during the summer season. The runway of the Pcs-Pogny Air-port is 1,500 m long and 30 m wide.

The Liszt Ferenc International Airport in Budapest, which is a Class I airport, can be reached (240 km) via motor-way. The Osijek airport (Osijek-Klisa airport) is 95 km south of Pcs, and its runway is 2500 m long and 45 m wide.

Inland shipping

The Danube, Europes largest river, is the eastern border of Baranya County. Mohcs is 40 km from Pcs and its port is a European Union border port as well. From Pcs it can be accessed via the M60 motorway. The port includes 2,000 sqm usable building and provides full customs house services.

Figure 7: River Navigation in Europe

Source: Wikipedia

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Figure 8: River Navigation in Hungary

Source: slideplayer.hu/slide/2209799/

The local government of Mohcs is planning to establish a new public open-water port in the coming years by creating an approximately 330-meter vertical river wall and associated port infrastructure. The port is designed mainly for the distribution of general cargo and container loading.

Pcs Mohcs

Szekszrd

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Dunajvros

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Budapest

Krs

Tisza

Duna

Drva

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Public Utilites

ENERGY NETWORKS

Baranya County is directly connected to Hungarys largest power generator, the Paks Nuclear Power Plant, the pow-er plant in Pcs and the national transmission grid. The 400 kV voltage system is capable of meeting the regions total need for electricity. The safety of supply is further increased by its connection to the Croatian network, which provides an opportunity for a bidirectional supply. The natural gas network of the county is directly connected to the gas production and storing system in the Southern Alfld, from where a pipeline network transports the required quantity of gas to the county.

WATER SUPPLY, WASTE WATER MANAGEMENT

Water supply is provided in the whole area of the county, and the constant water supply is also ensured by local water bases and built network systems (Mohcs-Pcs-Koml, Pcs-Harkny, Pcs-Szentlrinc). Sanitary sewers and sewage and waste water treatment are mainly available in larger settlements.

WASTE COLLECTION AND DISPOSAL

Municipal solid waste is collected and disposed of in each settlement of Baranya County. Selective waste collection and disposal started in the past few years.

PUBLIC UTILITY CHARGES

The main suppliers of electricity and natural gas in the County are members of the E.ON Group. Four tariff packages for electricity consumption are offered so that different customers needs can be met.

The price of gas supply is determined on the basis of basic, capacity and aggregated flow tariffs, which depend on the nominal capacity of the gas meter, and the volume of the capacity defined in the contract.

It is advisable to directly negotiate with both suppliers in order to optimize the services and tariffs.

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24 25

INDUSTRIAL PARKS, INDUSTRIAL AREASPcs Industrial Park

The municipality of Pcs (a town with county rights) regarded accessibility as the most important factor in the development of its first industrial areas. This is how the central industrial area inside the town and the eastern industrial areas were established. Companies located in the central industrial area represent the towns historical industries with a long tradition: machinery manufacturing, leather processing and precision engineering). After the mine, which had been the most important industry in the region, was closed down, its site in the eastern part of Pcs was completely restored and extended southward, whereby the Pcs Industrial Park could be established in this new area. The municipality provides industrial areas from 15 to 50 hectares, with maximum 5% inclination for greenfield investments requiring a significantly large contiguous area. They are located next to the national main roads and adequate in all respects.

ATTRACTIONS FOR INVESTORS

It is located 2 km from the Main Road 6 (Pcs Budapest) next to the Pcs East exit of the M60 motorway (Pcs Budapest) and 15 km from the Pcs-Pogny International Airport

Supportive management services (to obtain permits and exploit tenders) Re-training and further training systems adapted to needs Highly skilled and relatively cheap workforce familiar with the latest technologies

The industrial park expects enterprises to locate here from the following areas: The industrial park expects enterprises to locate here from the following areas: local businesses, Hungarian investors outside Baranya and foreign investors.

Main profile of the Industrial Park: industry, logistics and trade

Figure 9: Layout of the Pcs Industrial Park

M60 Hons

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Southern Industrial Park

The 110-hectare land at the Southern border of Pcs has been entitled to use the Industrial Park title since 2010, and the Best Industrial Park award from HITA since 2012. Its system of points of single contact (PSC) and the provision of legal, financial and technical counselling were developed in collaboration with the town of Pcs. The Industrial Park collaborates with representatives of the national and foreign industry, chambers of commerce, vocational schools and the university.

They provide 200 hectares of land in one block, where the minimum size of the sites is 2,500 sqm with 50% site coverage andthe maximum building height is 6-10 meters or, depending on the location, 10-15 meters. Sites with full infrastructure are sold, rented or leased.

ATTRACTIONS FOR INVESTORS

Direct connection to M6/M60 Budapest Pcs motorways 1 km distance from the Pcs-Pogny International Airport Supportive management services (to obtain permits and exploit tenders) Skilled and trained, multilingual workforce

Businesses: The Industrial Park provides opportunity for green field investments. The industrial park expects businesses to locate here from the following areas: local businesses, Hungarian investors outside Baranya and foreign investors

Main profile of the Industrial Park: industry, logistics and trade.

Figure 10: Layout of the Southern Industrial Park

26 27

PANNOVA Industrial Park (Kvgszls)

This 58.82-hectare area is the real estate investment of STRABIL Ltd. is located at the premises of the former ore dressing plant and in its sur-roundings at the South- West foot of Mecsek hills. PANNOVA Park has very favorable geographical conditions: it is far from inhabited areas, located in green areas, and business activities are not restricted. The aim of the location strategy of the Pannova Industrial Park is to satisfy the requirements of the investors concerning both the utilities and location to the greatest possible extent.

Figure 11: Layout of PANNOVA Industrial Park

Sites within the industrial park area can be instantly connected to the full spectrum of the reconstructed infra-structure: gas, electricity, drinking water, fire water network, sanitary sewer, drainage, telephone, railway siding, outdoor lighting and road networks.

ATTRACTIONS FOR INVESTORS

Direct connection to the Main Road 6, 10 km distance from the M6/M60 Motorways 16 km distance from the PcsPogny International Airport Mohcs/Danube Port: 50 km Distance from inhabited areas Supportive management services (to obtain permits and exploit tenders) Skilled and trained, multilingual workforce Flexible attitude toward investor needs

Businesses: buildings and sites are available for investors. The industrial park expects businesses to locate here from the following areas: local businesses, Hungarian investors outside Baranya and foreign investors.

Main profile of the Industrial Park: industry and services

27

Why Pcs as local people see it

The M6 motorway directly connects Pcs and its surroundings with Budapest, the Liszt Ferenc International Airport and the European motorway network. The central location of the micro-region and the existing road network allows for quick access to each area. There is an electrified rail route to Budapest.

Electricity, gas and water supply are provided for Pcs and its region. The installed capacity of networks allows for smooth operation and contributes to meeting consumers further demand for development.

The available workforce in the town and its region is about 6700 persons, 5000 of whom have professional qualifications. Approximately 800 of them have certificate from higher-level vocational training or college or university degree. It is an important advantage of Pcs and its surroundings that due to central traffic conditions, it is easy to commute from smaller regions to the center on a daily basis. Owing to this, the available workforce is more than 20,000 persons, 12,600 of whom have professional qualifications.

Another advantage is that beside the high rate of German and Croatian minority workforce, the number of people with English, Italian and French language competence is quite high owing to the special language programs in high schools and foreign language training programs at the university.

The Pcs region is rich in outstanding natural conditions due to Mecsek Hills, which have several nature reserves, park facilities, forest paths, streams, and lakes in the valleys, whereby they attract not only the local population but also offer pleasant resting and sporting facilities to tourists.

Pcs defined the directions of its economic development by taking into account the traditions of the town and the region, and emerging needs that can be expected in the near and distant future. In the past, mining was the basis of the economy. However, advanced food processing, light industry and machinery manufacturing were also present. The energy industry used to have an impact on the entire region of South-Transdanubia. All these were supported by a prominent vocational training system. In the past 25 years, however, significant changes have occurred. Mining has ceased, the food and light industries have shrunk, the energy industry (production or supply of energy) has significantly transformed. The machinery manufacturing industry,

after a setback two decades ago, has started developing again and has become the crucial factor of the local economy.

The university significantly contributes to the local capacities. Its role in education and position in research contribute to the development of the local economy. It offers several possibilities to the environmental industry, health industry and the creative industry, where the competitiveness of enterprises has considerably improved in recent years.

The greatest challenge of future needs is the protection of the environment. Therefore, Pcs has set the objective - taking the traditions and capacities into consideration to develop the machinery manufacturing industry, the environmental industry, and technologies and services applied in the green economy. Investors are mostly expected in this field.

Beside the three industrial parks in the Pcs area, there are several smaller areas that are suitable for industrial activities. There are further large development areas in the neighbourhood of the Pcs Industrial Park, which is the location of Hungarian and foreign businesses. The Southern Industrial Park - directly located at the M60 motorway - provides sites with public utilities, and the preparation of the other areas has been started. The Pannova Industrial Park is located far away from residential areas offering modern infrastructure to investors. Existing, unoccupied factory buildings are also available in this industrial park. When construction work is needed, the staff of the industrial park help the licensing procedures and the technical preparation of the investments. The Southern Industrial Park has developed a system of points of single contact (PSC) with provision of legal, financial and technical counselling. There is no uniform investment support scheme in Pcs. It is possible, however, to apply for specific support. Depending on total investment cost and planned employment, the implementation of development plans has been assisted several times in the past.

The transport connection of Pcs and its region has significantly been improved by the M6- M60 motorways. Nevertheless, it is unfortunate that the motorway network connection to the South or to the West has not been completed. Air traffic is ensured by the Pcs-Pogny Airport. The technical development of the airport is also planned for the upcoming years.

28 29

Bly Industrial Park

The Bly Industrial Park has very advantageous conditions. It was awarded with the Industrial Park title in 1998. It provides completely improved land (full infrastructure) and is an intact area in terms of environmental protection.

ATTRACTIONS FOR INVESTORS

Direct connection to the M6 motorway 30 km distance from the PcsPogny International Airport Mohcs Danube port distance: 15 km A fibre optical network Thermal water with temperature of 80 C suitable for industrial utilization Supportive management services (banking, IT, transportation and technical advice, financial and investment

counselling) Flexible attitude to investor needs Preferential land purchase options, low fees during lease Full infrastructure available Skilled, trained and multilingual workforce

The Industrial Park provides workshops and sites for potential investors.

The industrial park expects busi-nesses to locate there from the following areas: local businesses, Hungarian investors outside Baranya and foreign investors

Main profile of the Industrial Park: industry, services, trade and logistics

Figure 12: Layout of Bly Industrial Park

29

Why Bly and its region as local people see it

The greatest advantage of the micro-region is the motorway that traverses it. Each settlement is connected to the electricity, water and natural gas network. In Bly, the thermal water could provide further development opportunities

The available workforce in the area is usually not skilled and capable of doing only semi-skilled jobs. The trained and skilled workforce should be attracted back from abroad. The local population consists of hard working Hungarians and minority Germans.

The micro-region is well protected from natural disasters, has excellent soil and sub-Mediterranean weather.

The industrial park in Bly expects investors mainly from the agricultural processing industry; however, industrial production facilities are also provided.

There is a 15-hectare available land in the Bly Industrial Park with full infrastructure. Further available areas can be found in the villages of Szajk and Olasz.

When construction work is needed, the staff of the industrial park staff the licensing procedures and the technical preparation of the investments In addition, the local government naturally helps decision making by providing local and market information to the interested parties.

It is possible to lease or buy land in the Bly Industrial Park. Full infrastructure is available at each site border (water, sanitary sewer, drainage, natural gas, 22 kV power grid with transformers, optical fibre net, security camera system, 80C thermal water network, and road network). In case of purchase of land, the price is 1,800 HUF/sqm.

The construction of utility lines was provided by the local government; however, service development tariffs should be paid to public utility companies.

There is no land tax in Bly, the property tax is 250 HUF per sqm per useful floor area per year.

The main obstacle to economic development of the micro-region is the lack of unoccupied rentable factory buildings.

The main obstacle to economic development of the micro-region is the lack of unoccupied rentable factory buildings..

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Bicsrd Industrial Area

Bicsrd is located in the central part of Baranya County, 18 km southwest of Pcs. The settlement was first men-tioned in a certificate in 1262 in the so-called rpd era. Developed agriculture has been typical here for several centuries. Bicsrd is well known for the fishing lake in the center of the village, streets decorated with flowers, outdoor works of art of the artists at the Bicsrd International Art Colony, the annual Potato Festival and other large-scale programs.

The utilization of the former military object on a 3.5-hectare land is planned to create jobs and improve employment.

ATTRACTIONS FOR INVESTORS

Distance from the Main Road 6 is 3 km and from the railway station is 2.5 km Its distance from the settlement is in accordance with the regulations, and it can be accessed on a paved

road Electricity and water are available Buildings have been renewed, the piping system has been replaced, new electrical wiring has been installed

and new lighting network has been created The area is equipped with external spotlights, alarm systems, the entrance area is protected with video

surveillance, and the whole area is fenced

Businesses: the area is suitable for small workshops, storage of goods, small warehouses or several smaller plants with little workforce.

Figure 13: Bicsrd Industrial Area

31

Hosszhetny Industrial Area

Hosszhetny is located 16 km northeast of Pcs, on the southern slope of the East Mecsek Hill, at the foot of Hrmashegy and Zeng in picturesque surroundings. Pspkszentlszl and Kisjbnya, the largest forest villages of Baranya County can also be found here.

As a public administrative unit, it is directly adjacent to Pcs, the County seat and Koml, which is the second largest town in the county.

ATTRACTIONS FOR INVESTORS

Opportunities due to the traffic on the Main Road 6 The village belongs to a free enterprise zone with special discounts available for enterprises Appropriate infrastructure, available network of institutions, and all utilities are provided in the village

Main profile: areas for economic utilization will be made available along the western bypass road, between the road and the settlement. Building restrictions will conform to natural environment in an environmentally friendly way, which will be included in the master plan amendment due in the near future.

Figure 14: Hosszhetny Industrial Area

32 33

Koml Industrial Park

The town of Koml has gone through radical economic transformation in the past 15 years. A number of aban-doned mining sites were taken over by entirely new companies with new profiles, many of which are re-utilizing the former mining facilities. The industrial park, which is privately owned today, was established in the area of the former mining plants in 1999. There are several privately owned areas for development at former Zobk and Bta shafts. The area owned by the local government in Nagyrt Street is used by a recently established enterprise manufacturing automotive parts.

The first inhabitants of the industrial park were businesses privatized from former ancillary plants of the Mecsek Coal Mines. By now, a dozen new companies have joined them at the site. There is about 6 hectares of free land available for investors.

ATTRACTIONS FOR INVESTORS

Fully developed infrastructure: electricity provided by their own transformer station, access to gas, water and sanitary sewer networks and the communication cables have been laid down

Outdoor lighting Fully developed internal road network Proximity to local railway station Potential partners are provided with comprehensive consulting services in case of change of site relocation

including technical, legal, financial, environmental and quality assurance issues

Figure 15: Koml Industrial Area

Ratipur Ltd.

TeGaVill Ltd.

Lakics Ltd.

Edil-Komszer Ltd.

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Why Koml as local people see

The best advantage of the town and its region in terms of in-frastructure is the full and high-capacity utility network. The rate of paved roads within municipal boundaries is also high.

Another favorable condition is the availability of thermal water and spas (Komlo-Sikonda, Magyarhertelend) in the micro-region.

Metallurgical industry is considered a traditional industry in this micro-region, where trained workforce is available in each trade. However, their rate is low due to migration.

The town and its region expect investors in the fields of metallur-gical industry, green energy and renewable energy production. Due to the high number of low-skilled job seekers, the investment of businesses requiring assembling activities is also welcome.

Koml provides direct financial support for the purchase of land and acquisition of real estates - depending on the planned number of people to be employed. Investors are completely exempted from paying the obligatory contribution fee to public utility development.

In terms of licensing procedures and technical preparation, the local government has been providing maximum assistance to investors.

Major obstacles to economic development include the lack of national main roads, low number of appropriate municipal estates, the low skills and qualifications of the local labor force and the migration of educated and trained young people.

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34 35

Mohcs Industrial Park

The local government of Mohcs established the industrial park in 1999 in order to improve its economic situa-tion. Full infrastructure has been installed by the town of Mohcs in nearly 30% of the 166.9-hectare unimproved municipal area of the industrial park in the Mohcs Business Zone.

The investment included the sanitary sewer, water, gas, outdoor lighting, electricity network and the transport infrastructure. As a result of the development, new premises have been created. Owing to the infrastructure de-velopment, entrepreneurs of the region can exploit the opportunities of regional and EU business expansion. The town is ready to provide green field investment requiring large contiguous sites (7-11 hectares) with completely suitable areas that have direct access to the motorway network (M6), are situated next to the River Danube and are connected to the railway network with and industrial track rail.

New Hungarian and foreign manufacturing enterprises locate in the incubator house as their business risk can be diminished during the initial period. The incubator house contributes to the strengthening of the productive capacity of the region, the development of new industrial infrastructure, the improvement of the competitiveness of the SMEs of the region with low capitalization, and the increase in the utilization of the Mohcs Industrial Park. The target group of the development is SMEs with low capital, which needs support for starting or continuing and improving their operation under adequate circumstances. The Incubator can contribute to their market stability, enables them to develop independently in the future and can make them become stable actors in the economy..

ATTRACTIONS FOR INVESTORS

It is located in a border area, which contributes to building international relations with Serbia, Croatia and the Balkans

Proximity of the Danube and significant (freight and passanger service) traffic due to the international wa-terway access

Distance from the M6 Motorway (Budapest-Pcs): 7km Distance from the international airport of Pcs-Pogny: 40 km Trained, multilingual (German and English) and relatively cheap workforce

Main profile of the industrial park: logistics, shipment, incubation house services, food industry, textile industry and automotive industry.

35

Why Mohcs as local people see it

The best advantage of the micro-region in terms of infrastruc-ture is the direct access to the M6 Motorway, which traverses the area. It is within easy reach of the regional settlements, Mohcs, the Industrial Park and the Danube port.

In the industrial area of Mohcs, it possible to develop an in-termodal logistics base with appropriate water, rail and road transportation links.

The volume of available workforce is about 3,600 people, mini-mum 2,000 of whom are suitable for employment in competitive enterprises.

There is a lot of minority workforce in the micro-region with German and Croatian language skills.

The most significant natural condition is the direct proximity of the River Danube , the beautiful natural environment of the Gemenc and Bda-Karapancsa areas, and the high quality of arable lands.

The agricultural processing industry, wood industry, light in-dustry and metallurgical industry (iron and aluminium foundry, manufacturing of construction machinery and metal processing) have a long tradition in the region. There is great potential in exploiting opportunities of the logistics capacities, agricultural processing industry and other industries requiring higher skills and technological expertise.

In the industrial park, if a fully improved land is sold, the purchaser can be offered a discount of 600 thousand HUF for each new job created and a discount of 300 thousand HUF per capita per work-place for investments for job preservation. Production floors in the 2,700-sqm incubator house can be leased at a discount rental fee. When construction work is carried out, the staff of the technical department of the local government help businesses with the licensing procedures and technical preparation of investments.

In the industrial park, the fee of contribution to water and waste water development can be spent on the water and sewage network installation of the given investments of businesses. The rate of local tax is as low as 263 HUF per sqm for buildings used by the enterprise. Land tax is calculated on the basis of the size of the land. A site is exempted from land tax if actual production as a main activity is implemented in the building suitable for production, for which at least 25% of the total site is used.

The major obstacle to economic development is the lack of a port suitable for loading containers and general cargo and the lack of a bridge over the Danube.

36 37

Szigetvr Industrial Areas

Szigetvr is located in Baranya County, 35 km west of Pcs. The small town and its region have excellent natural conditions. Besides the good quality farmland, forests and lakes, the area is rich in thermal water and medicinal water. The spa, which provides 62oC thermal water for visitors wishing to heal and relax, is located in the heart of the town next to the castle.

Food industry, metallurgical industry and wood industry are mainly typical of the economy of the town.

The town does not have a single industrial park, and industrial plants are located in different parts of the settlement. There is only one contigous industrial area in the southeast part of the town. The local government can provide four areas for rent or sale, two of which are 0.5 hectares and the other two areas are approximately 2 hectares.

Figure 16: Layout of the Szigetvr Industrial Area

Map data OpenStreetMap contributors, CC BY-SA

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Why Szigetvr as local people see it

The best infrastructural advantage of the micro-region is that the Main Roads 6 and 67 traverse it. Road 6 provides connection to east and Pcs, from where there is a motorway to Budapest, and the road reaches Barcs and Croatia toward west. The Main Road 67 leads to Kaposvr and Lake Balaton.

The Pcs-Barcs-Gyknyes main railway line, which provides great transport services to Budapest, Pcs, West Hungary and Croatia (Zagreb), goes through Szigetvr.

There are about 1,000 job seekers in the micro-region with some qualifications. Most of the unemployed have qualifications in the fields of agriculture, construction industry, light industry and machinery manufacturing industry.

The natural conditions of the region include a significant re-serve of medicinal and thermal water and plenty of hours of sunlight per year.

Expansion of employment opportunities and the strengthening of the local economy are considered to be the most important tasks in the town and its micro-region; therefore, in addition to job creation, the deployment of plants planning the develop-ment of a suppliers network is preferred. Businesses involved in logistics, food industry, light industry are expected in particular.

The local government can support the development of busi-nesses by offering properties with full infrastructure for sale, and they also help with the licensing procedures and technical preparation.

Establishing preferential land prices and overtaking the con-tribution fee for public utility development are possible on the basis of individual agreements.

The major obstacle to economic development is the distance from motorways and the partial lack of business services.

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Sellye Industrial Park

Sellye is the single town in the Ormnsg area. The industrial park is located in a designated industrial area in the southwest of the town. The total area (including roads) is 20.43 hectares, 12.75 hectares of which can be utilized. 84% of the area is owned by the local government of Sellye.

ATTRACTIONS FOR INVESTORS

Proximity to the Croatian border Proximity to the River Drava Tax relief depending on the number of employees Flexible administration Skilled and re-trainable, inexpensive and creative workforce Competitive land price

Businesses: the industrial park offers opportunities for green investments on leased or purchased sites to busi-nesses locating there.

The industrial park expects businesses to locate there from the following areas: local businesses, Hungarian investors outside Baranya, and foreign investors.

Main profile of the industrial park: logistics, trade and manufacturing

Figure 17: Layout of the Sellye Industrial Park

39

Sikls Industrial Park

The municipality of Sikls acquired the title Industrial Park in January 2016. The industrial park is located next to the northern bypass. The infrastructure of the settled territory is good (sanitary sewer, water, gas, electricity network, landline telephone and internet, transport and parking places, and outdoor lightning), 16-hectars, with 24 active enterprises.

The expansion of the necessary infrastructure and the establishment of an incubator house on the 13.5-hectare development area would the municipality implement with funds, within the tendering TOP-1.1.1-15., call for the development of industrial parks and industrial areas. The incubator house in Sikls would also contribute to the development of economic cooperation on the Hungarian-Croatian border.

ATTRACTIONS FOR INVESTORS

10 km distance from the EU border crossing point Drvaszabolcs The bypass is part of the Pcs-Sikls-Villny-Bly-Mohcs centerline 20 km distance from the M6 and M60 motorway Distance from the international airport of Pcs-Pogny: 20 km Mohcs Danube port distance: 40 km Flexible attitude to investor needs After installation of the infrastructure and the incubator, the municipality

would introduce new settlement benefits The industrial park expects busi-nesses to locate there from the following areas: local businesses, Hungarian investors outside Baranya and foreign investors.

Main profile of the Industrial Park: industry, trade.

Figure 18: Layout of the Sikls Industrial Park

40 41

OTHER CONDITIONSTable 5: Major tax rates of local tax regulations for enterprises of towns and settlements with industrial areas in Baranya County (2015)

Name of Settlement

Property TaxesTourism Tax paid for

length of stay HUF/ day

Local Business Tax

BuildingTax Ft/sqm

Land Tax Ft/sqm Percentage of adjus-ted net revenue

Daily Overhead

Bicsrd 2 5 000

Bly 250 2 5 000

Harkny 600-1 200 240-260 430 2 5 000

Hosszhetny 220 3-6 220 2 5 000

Koml 300-1 655 1-280 385 2 5 000

Kozrmisleny 1,6 5 000

Mgocs 50 1,5 5 000

Mohcs 270 11-320 360 2 5 000

Pcs 0-1 700 0-60 400 2 5 000

Pcsvrad 300 2 4 500

Ssd 100 1,8 5 000

Sellye 300 2 5 000

Sikls 100-350 150 450 2 5000

Szigetvr 200-1 720 21-300 350 2 5 000

Villny 200 450 2 5 000

Kvgszls 345 1,4 1 000

Innovation Capacity

A key element of the Competitiveness Pole Project is innovation, which is essential for the competitiveness of individual sectors and projects.

The region has an outstanding innovation potential and knowledge transfer system.

The Szentgothai Research Centre (www.szkk.pte.hu) is the leading innovation base of the region, which is the Central European centre of the health industry, the environmental industry and the engineering sciences. The Research Centre organizes R&D work ranging from basic research to development of industrial applications in 25 research groups relying on industrial relations. The innovation department of the Chamber of Industry, the regional office of the Hungarian Association for Innovation and knowledge transfer offices of the universities in Pcs and Kaposvr support the utilization of the innovation potential.

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The Chamber of Commerce and Industry of Pcs-Baranya is a member of Europes largest business and innovation network, the Enterprise Europe Network, which implements innovative knowledge transfer, conducts potential surveys and coordinates the export market opportunities for innovative products and services via 600 points of contact. (www.enterpriseeurope.hu)

Clusters in Pcs and South West Hungary

The Competitiveness Pole Strategy is supported by outstandingly well-organized regional cluster networks and systems in all three priority sectors and also in horizontal sectors.

In 2010 the Chamber of Commerce and Industry of Pcs-Baranya signed a cooperation agreement with several clusters operating mainly in the South-West Hungarian region. The objective of the framework agreement is to start synergic development work with the cooperation of the chamber and clusters so that the economic and innovative potential of the region can be strengthened. The clusters, which are representatives of the sectoral cooperation of the local economy, can get international visibility and opportunities for training and business via the European projects of the chamber of commerce. The economic exploitation of the results of innovation, the joint representation and the development of export capacities can be achieved through the collaboration. The local clusters have not only been involved in the development work in European international collaborations, but also signed international business agreements.

A cluster development platform based on a special methodology, the so-called cluster portfolio, was developed with the support of the Ministry of National Economy and the Hungarian Chamber of Commerce and Industry in 2013. The innovation and service/product portfolio of ten clusters in the region were analyzed and identified. Portfolios are available at www.klaszterportfolio.hu

In the absence of economic development, South-West Hungary will remain among the lagging regions. The Cham-ber of Commerce and Industry of Pcs-Baranya supports not only individual companies but also joint development of clusters. We developed the content of the cooperation together in accordance with the needs and possibilities of the clusters (Dr. Istvn Kri, President, Chamber of Commerce and Industry of Pcs-Baranya).

CLUSTERS IN COLLABORATION WITH THE CHAMBER

Biotechnolog Innovation Base Accredited Innovation Cluster South West Hungarian Engineering ClusterSouth West Hungarian Ecotourism Cluster Information Management Accredited Innovation ClusterBlue Economy Innovation ClusterCreative Industry ClusterHungarian Environmental Technologies Manufacturing and Development ClusterMecsek Mining Cluster

42 43

HUMAN RESOURCES

Figure 19: Changes in the rate of job search in the Districts of Baranya County, October, 2015 (%)

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0 17,016,2

15,3 14,9

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Table 6: Number of reported job seekers per district, January 2016 (persons)

Dist

rict

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ter

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ndar

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Tert

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n

Post

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lifica

tion

Tert

iary

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atio

nal t

rain

ing

Skill

ed to

tal

With

out s

kills

Job

seek

ers t

otal

qualification

Bly 40 175 38 10 6 269 201 470

Koml 56 605 155 35 40 891 506 1 397

Mohcs 94 759 162 42 51 1 108 618 1 726

Pcs 254 2 771 1 045 352 9 441 4 872 1 777 6 649

Pcsvrad 13 163 38 16 11 241 131 372

Hegyht 48 277 43 10 6 384 403 787

Sellye 70 362 62 27 17 538 434 972

Sikls 139 1 042 204 57 2 31 1 475 1 091 2 566

Szentlrinc 42 228 62 20 1 15 368 230 598

Szigetvr 57 622 111 31 35 856 615 1 471

Baranya County 813 7 004 1 920 600 12 653 11 002 6 006 17 008

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Table 7: Number of registered job seekers according to completed level of education, January 2016 (persons)

Qual

ifica

tion

Bly

Dist

rict

Kom

l D

istric

t

Moh

cs D

istric

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Pcs

Dist

rict

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stric

t

Hegy

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Selly

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rict

Sikl

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Szen

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Szig

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ry

Elementary school not completed

24 60 89 184 9 94 64 132 29 63 747

Elementary school

229 502 679 1 877 130 382 466 1 209 261 592 6 327

total 253 562 768 2 061 139 476 530 1 341 290 655 7 074

Seco

ndar

y

Vocational training

8 25 27 185 5 18 27 45 14 17 371

Vocational school

135 412 527 1 720 135 190 237 660 159 448 4 623

Secondary school

21 150 106 922 30 30 38 256 30 119 1 702

Vocational secondary

school37 157 195 961 37 57 113 189 72 148 1 966

technical diploma

5 41 31 229 12 5 15 22 12 36 408

total 206 785 886 4 017 219 300 430 1 172 287 768 9 070

Tert

iary

college 3 13 21 286 7 2 4 15 8 18 377

university 8 37 51 285 7 9 8 38 13 30 486

total 11 50 72 571 14 11 12 53 21 48 863

All total 470 1 397 1 726 6 649 372 787 972 2 566 598 1 471 17 008

Besides reported job seekers, there are about 15,000 people in public employment who can be regarded as avail-able workforce.

44 45

Table 8: Number of registered job seekers by vocation groups, January 2016 (persons)

Vocation group Bly

Dist

rict

Kom

lDi

stric

t

Moh

cs

Dist

rict

Pcs

Dist

rict

Pcs

vra

dDi

stric

t

Hegy

ht

Dist

rict

Selly

eDi

stric

t

Sikl

sDi

stric

t

Szen

tlrin

cDi

stric

t

Szig

etv

rDi

stric

t

Bara

nya

Coun

ty

Health care 2 21 21 162 7 4 10 30 6 26 289

Other services 14 40 76 310 12 20 31 104 19 37 663

Electronics 3 25 17 121 8 10 7 22 6 20 239

Food industry 10 22 46 59 13 11 16 62 9 48 296

Architecture 30 60 84 311 24 40 51 141 38 86 865

Wood industry 16 26 55 83 10 11 21 50 6 32 310

Engineering 24 158 145 550 27 55 69 138 35 102 1 303

Information technology 7 25 23 164 3 5 10 42 5 14 298

Trade, marketing, business administration 31 140 158 851 31 62 58 235 58 135 1 759

Light industry 18 77 84 300 12 25 28 72 14 64 694

Environment protection, water management

3 4 9 34 0 9 1 4 1 6 71

Economy 9 28 42 217 7 6 13 22 13 18 375

Transport 12 43 45 213 11 11 25 60 13 26 459

Public service 0 0 1 2 0 0 1 2 0 2 8

Agriculture 44 51 129 270 20 64 116 159 60 106 1 019

Arts, public education, communication 4 21 13 158 10 3 6 29 10 11 265

Printing industry 1 0 2 24 0 2 0 4 0 0 33

Education 7 24 26 222 8 5 8 29 10 22 361

Social services 4 23 17 101 5 9 13 44 11 13 240

Administration 9 21 22 190 8 4 10 38 7 7 316

Chemical industry 0 3 1 31 1 1 0 2 4 2 45

Catering, tourism 21 79 92 499 24 27 44 186 43 79 1 094

Total 269 891 1 108 4 872 241 384 538 1 475 368 856 11 002

45

Table 9: Number of first-time job seekers by district, January 2016 (persons)

Dist

rict

Elem

enta

ry sc

hool

Seco

ndar

y edu

catio

n af

ter

com

plet

ing

elem

enta

ry sc

hool

Seco

ndar

y edu

catio

n af

ter

com

plet

ing

seco

ndar

y sc

hool

Tert

iary

educ

atio

n

Post

gra

duat

e qua

lifica

tion

Tert

iary

educ

atio

nal t

rain

ing

Skill

ed to

tal

With

out s

kills

Job

seek

ers t

otal

qualification

Bly 5 11 8 2 1 27 36 63

Koml 1 44 16 6 4 71 107 178

Mohcs 9 57 14 6 5 91 108 199

Pcs 25 180 95 55 58 413 400 813

Pcsvrad 0 15 5 3 1 24 25 49

Hegyht 2 16 4 4 1 27 49 76

Sellye 3 19 5 9 1 37 63 100

Sikls 9 99 24 14 1 3 150 233 383

Szentlrinc 1 13 6 5 0 25 51 76

Szigetvr 2 41 7 8 6 64 101 165

Baranya County 57 495 184 112 1 80 929 1 173 2 102

46 47

Table 10: Number of recorded first-time job seekers by qualification, January 2016 (capita)

Com

plet

ed le

vel o

f edu

catio

n

Bly

Dist

rict

Kom

l D

istric

t

Moh

cs D

istric

t

Pcs

Dist

rict

Pcs

vra

d Di

stric

t

Hegy

ht D

istric

t

Selly

e Dist

rict

Sikl

s D

istric

t

Szen

tlrin

c Dist

rict

Szig

etv

r Dist

rict

Bara

nya C

ount

y

Elem

enta

ry

Elementary school not completed

3 8 11 22 2 2 3 18 1 3 73

Elementary school

33 87 96 276 17 39 44 187 38 75 892

total 36 95 107 298 19 41 47 205 39 78 965

Seco

ndar

y

Vocational training

2 3 3 46 1 1 5 6 2 69

Vocational school

11 19 35 88 15 14 10 55 11 34 292

Secondary school

3 25 24 146 4 10 4 77 12 26 331

Vocational secondary

school8 27 20 148 7 8 31 33 9 15 306

technical diploma

1 5 3 14 1 0 2 3 4 6 39

total 25 79 85 442 28 33 52 174 36 83 1 037

Tert

iary

college 1 1 59 1 1 1 2 0 4 70

university 1 3 7 14 1 1 2 1 30

total 2 4 7 73 2 2 1 4 1 4 100

All total 63 178 199 813 49 76 100 383 76 165 2 102

47

Table 11: Number of recorded first-time job seekers by vocation groups, January 2016 (persons)

Vocation group

Bly

Dist

rict

Kom

l D

istric

t

Moh

cs D

istric

t

Pcs

Dist

rict

Pcs

vra

d Di

stric

t

Hegy

ht D

istric

t

Selly

e Dist

rict

Sikl

s D

istric

t

Szen

tlrin

c Dist

rict

Szig

etv

r Dist

rict

Bara

nya C

ount

y

Health care 9 22 26 122 8 11 8 63 5 23 297

Other services 0 0 1 3 0 0 1 0 2 2 9

Electronics 0 1 1 4 0 0 1 0 1 0 8

Food industry 1 0 3 2 0 0 1 0 0 0 7

Architecture 1 2 0 9 0 0 1 1 0 0 14

Wood industry 0 0 1 3 0 0 0 2 0 0 6

Engineering 3 10 11 28 0 1 3 11 6 6 79

Information technology 0 2 4 14 1 0 2 4 0 1 28

Trade, marketing, business administration 0 2 0 13 2 1 1 1 1 7 28

Light industry 0 1 0 5 1 0 0 1 0 0 8

Environment protection, water manage-ment

0 0 0 5 1 0 1 4 0 3 14

Economy 2 1 1 12 0 0 1 2 0 3 22

Transport 0 1 2 7 0 1 3 3 1 0 18

Public service 0 0 0 0 0 0 0 0 0 0 0

Agriculture 0 1 0 18 1 1 2 4 0 2 29

Arts, public education, communication 2 7 5 46 2 0 6 17 3 5 93

Printing industry 0 0 0 2 0 0 0 0 0 0 2

Education 7 9 21 64 2 6 4 15 4 7 139

Social services 1 10 13 42 5 5 2 16 0 2 96

Administration 0 0 1 4 0 0 0 1 0 1 7

Chemical industry 0 1 0 2 0 0 0 2 1 0 6

Catering, tourism 1 1 1 8 1 1 0 3 1 2 19

Total 27 71 91 413 24 27 37 150 25 64 929

48 49

Table 12: Number of full-time employees, 2014 (capita)

Economic sector Baranya County Pcs town

Agriculture, forestry and fishery 4 439 753

Mining and quarrying 138 12

Manufacturing 14 206 5 645

Electric energy, gas, steam, air conditioning 934 800

Water supply, sewerage, waste management 1 298 654

Industry 16 575 7 111

Construction industry 3 323 838

Trade, automotive servicing 7 633 3 350

Transporting and storage 4 635 3 013

Accommodation and food services 2 008 588

Information, communication 1 374 922

Financial and insurance services 1 131 779

Real estate services 502 106

Professional, scientific and technical services 1 727 793

Administrative activities supporting services 2 107 1 034

Public administration and defence, compulsory social security 8 174 6 047

Education 12 806 8 988

Human health and social work 15 687 3 507

Arts, entertainment and recreation 1 104 677

Other services 258 81

National economy total 83 483 38 587

of which:

Private sector 44 567 18 499

Public sector 35 347 17 889

49

Table 13: Average gross monthly income of employees, 2014 (capita/persons)

Economic sector Hungary Baranya County Pcs town

Agriculture, forestry and fishery 180 110 189 831 145 202

Mining and quarrying 286 848 229 982 407 618

Manufacturing 252 860 203 876 243 083

Electric energy, gas, steam, air conditioning 422 613 332 198 345 982

Water supply, sewerage, waste management 225 132 232 549 250 356

Industry 257 649 213 567 255 606

Construction industry 185 380 154 555 182 307

Trade, automotive servicing 224 087 167 112 181 469

Transporting and storage 230 253 223 885 251 196

Accommodation and food services 153 167 132 470 152 425

Information, communication 449 229 306 754 364 568

Financial and insurance services 485 150 380 689 412 035

Real estate services 215 129 176 214 281 165

Professional, scientific and technical services 344 955 212 498 268 644

Administrative activities supporting services 183 801 203 706 199 574

Public administration and defence, compulsory social security 262 057 231 362 241 445

Education 245 936 260 385 276 263

Human health and social work 143 051 116 242 139 074

Arts, entertainment and recreation 225 762 201 081 227 656

Other services 180 944 154 528 212 409

National economy total 237 736 197 922 239 525

of which:

Private sector 252 710 203 568 243 091

Public sector 209 707 191 294 239 645

50 51

Terms of commuting to work

Commuting to work and secondary educational institutions with regular bus service in towns with industrial parks:

LEGEND:

Destination settlement

Journey without transfer, arrival within about 60 minutes

One transfer, arrival time within about 120 minutes incl. waiting time

Multiple transfers, or arrival time over 120 minutes

Arrival is not possible before 8 a.m. on weekdays

Figure 20: Access to Pcs by bus

Bly

Mohcs

Pcs

Szigetvr

SellyeSikls

Koml

51

Figure 21: Access to Koml by bus

Bly

Mohcs

Pcs

Szigetvr

SellyeSikls

Koml

Figure 22: Access to Mohcs by bus

Bly

Mohcs

Pcs

Szigetvr

SellyeSikls

Koml

Bly

Mohcs

Pcs

Szigetvr

SellyeSikls

Koml

52 53

Figure 23: Access to Szigetvr by bus

Bly

Mohcs

Pcs

Szigetvr

SellyeSikls

Koml

Figure 24: Access to Bly by bus

Bly

Mohcs

Pcs

Szigetvr

SellyeSikls

Koml

53

Structure, Quality and Capacity of the School System

GENERAL INTRODUCTIONIn Hungary, the primary education lasts for 8 years. From September 2016 former technical colleges work as technical secondary grammar schools, and trade schools work as technical colleges. From both schools types can be graduated with a matriculation certificate. 4 years of technical secondary grammar schools is completed with a matriculation certificate and a vocational certificate, and in a further year a higher level vocational certificate can be obtained. After the first three years in technical colleges, vocational certificate can be obtained, and after an additional 2-year-long training program a matriculation certificate can be earned.

Vocational training is based on dual education. Theoretical education takes place at schools while vocational practice can be done from the 10th grade at enterprises. The state encourages practical training at companies by providing normative support.

In higher education it takes three years to complete the Bachelors program and get a degree. The two-year-long Masters training program is based on the Bachelors degree. There is an undivided 5-year-long training program in the fields of law, medicine and teacher training. From 2015 onwards, it is also possible to choose the dual training form in higher education.

EDUCATION IN BARANYA COUNTYIn the county, there is vocational training for all industrial and commercial trades.

Important vocational areas include IT (information technology, business information technology, software developing, and webmaster), machinery manufacturing industry (building services engineering, building services technician, machining, industrial engineering, structure locksmith, welder, mechanical engineering and technology technician), construction (building and civil engineering technician, carpenter, scaffolding, tiler, painter, wallpapering and mason), electronics (electrician, electronic mechanic and electronic technician) and healthcare. The most frequently taught languages are German, minority German, English and Croatian in foreign language teaching. Students can study in bilingual secondary schools, which offer English, German, Croatian, Italian, Spanish and French bilingual training programs.

Higher Education

The University of Pcs is one of the largest universities in Hungary. Currently nearly 20,000 students study at the 10 faculties of the university. The most prominent faculties are the Faculty of Engineering and Information Technology, the Faculty of Business and Economics, the Medical School and the Faculty of Humanities.

At the Faculty of Engineering and Information Technology, students can earn degrees in the following fields: architecture, civil engineering, mechanical engineering, product and industrial design, environmental engineering, IT engineering, electrical engineering, urban systems engineering. The faculty provides dual degree programs.

The Faculty of Business and Economics not only offers Hungarian training programs (applied economics, administration and management, sales and marketing, finance and accounting), but English programs (business administration and management, management and leadership) and German programs (Pcs-Hagen dual degree open-university program, which is a distance learning program) are also available.

54 55

Table 14: Number of entrants in the first grade vocational schoolsVocation Number of students (persons)

Vocation group Vocation 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

Health care 490 459 565 465 445

Other services 154 185 173 79 91

Electronics 86 85 108 85 108

of which:

Electronic technician 12 14 13 12

Food industry 102 87 159 109 119

of which:

Hsipari szakmunks 37 29 52 43 42

Architecture 303 256 198 157 163

Wood industry 148 134 143 95 122

Engineering 377 446 500 435 416

of which:

Machining 73 75 74 65 76

Engine fitter 44 68 17 6 0

Welder 80 100 129 108 127

Structure fitter 29 46 25 18 0

Information technology 112 102 142 97 124

Trade, marketing, business administration 485 562 426 310 252

Light industry 44 69 85 53 34

Economy 209 137 184 132 282

Transport 178 156 190 113 68

Agriculture 56 37 76 57 190

Arts, public education, communication 108 88 14 2 36

Printing industry 8 6 17 14 0

Education 33 22 70 93 154

Social services 260 267 258 156 322

Administration 66 73 39 30 50

Chemical industry 17 51 19 23 18

Catering, tourism 677 804 879 747 735

55

Table 15: Number of persons successfully completing vocational trainingVocation Number of students (persons)

Vocation group Vocation 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015

Health care 247 158 190 126 198

Other services 72 89 113 81 65

Electronics 40 41 54 54 44

of which:

Electronic technician 5 2

Food industry 32 59 61 54 104

of which:

Hsipari szakmunks 27 18 25 25 13

Architecture 150 139 178 122 128

Wood industry 41 57 77 102 55

Engineering 101 133 214 195 235

of which:

Machining 17 22 49 34 32

Engine fitter 18 19 11 14 19

Welder 7 19 13 47 39

Structure fitter 19 21 34 13 11

Information technology 70 91 67 79 70

Trade, marketing, business administration 354 298 235 296 150

Light industry 26

Economy 78 55 30 100 88

Transport 131 166 125 83 76

Agriculture 41 51 29 36 109

Arts, public education, communication 34 34 32 40 35

Printing industry 8 3 5 5

Education 66 37 21 27 68

Social services 96 195 173 139 79

Administration 50 46 23 28 0

Chemical industry 19 17 23 17 23

Catering, tourism 220 237 312 250 257

56 57

Table 16: Vocational training capacity reported by schools (for the school year 2016/2017)

Name of vocation number (persons)

Health care 792

Social services 458

Education 181

Arts, public education, communication 144

Engineering 534

of which:

CNC operator 44

Machining 99

Welder 108

Electronics 139

of which:

Electronic technician 28

Information technology 330