SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE THE CITY OF SMEDEREVO

The territorial capital : Danube Fortress Steel plant SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO The territorial capital : Danube Fortress Steel plant 110.000 residents City of Smederevo and 27 village settlements

46 km downstream from Belgrade 70 km from SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO AVAILABILITY: 46 km downstream from Belgrade 70 km from The airport '' Nikola Tesla '‘ 22 km of appurtenant Danube river banks The highway E-75 (Pan-European Corridor X) - a length of 27 km, with 4 ports Bridge over the Danube (Smederevo-Kovin) - connection Central Serbia – Vojvodina Industrial port Sport and commercial airport

INDUSTRIAL ZONE OF SMEDEREVO SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO INDUSTRIAL DEVELOPMENT CAPACITY Industrial zone of Smederevo - Area – cca 900 ha - Constructed and in operation - cca 280 ha - Availability for Brownfield and Greenfield investments Zone of the Steel Plant Smederevo Area - cca 300 ha INDUSTRIAL ZONE OF SMEDEREVO CITY AREA STEEL PLANT SMEDEREVO

TRADITIONAL INDUSTRIAL ZONE Area - cca 180 ha Operating : МЕТЕCH MBS SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO INDUSTRIAL ZONE TRADITIONAL INDUSTRIAL ZONE Area - cca 180 ha Operating : МЕТЕCH MBS NIS JUGOPETROL LASTA UNITECH The process of restructuring business entities Brownfield investments Catalogue of Brownfield location

SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO INDUSTRIAL ZONE ‘’ŠALINAČKI PUT’’ Area - cca 45 ha Location deliberately defined for SME development 27 companies operating in this area Availability for Greenfield investments Formed land parcels of 0.25 ha Infrastructure equipped area

INDUSTRIAL ZONE - “INDUSTRIAL PARK “: SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO INDUSTRIAL ZONE - “INDUSTRIAL PARK “: Area - 84 ha Existing economic entities: PKC Group cable factory for the automotive industry - at 6 ha of land JET Oil storage and distribution of petroleum products at the area of 5 ha Q&P d.o.o. Smederevo Italian company locations at 3.6 ha SERVFOOD d.o.o. Smederevo German fish processing company – at the area of 5 ha SMOTECH d.o.o. Smederevo Turkish company to repair machinery industrial fan Kaizen d.o.o. Smederevo Branch of Turkish company Kardem production of clothes. Operates in Free Zone Smederevo Greenfield investments : The city has 11 land parcels intended for the construction of industrial content area of 2.5 - 3.5 ha “Industrial park “ Infrastructure equipped

ECONOMIC DEVELOPMENT OF SMEDEREVO planning designing funding execution SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO ECONOMIC DEVELOPMENT OF SMEDEREVO planning designing funding execution City of continuous activity in the last two years - creating conditions for investors investing and launching new facilities in Smederevo: Acquisition of land ownership of the city Partner relationship with existing operators / owners of the land (Brownfield location directory, mediation, collaboration) Infrastructure equipment of the industrial zones The establishment of the Free Zone Smederevo Local / city decisions that provide numerous benefits for investors Efficient administration - quickly obtaining permits Development of investment outside the borders of the Industrial Zone Smederevo

SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO IMPLEMENTATION Constructed production hall of 20,000 m² - the value of 0.6 mil. eur (hall is leased by PKC Group) New production hall, of 4.173 m², location is planned to expand production capacity Built terminal Smederevo Free Zone - an area of about 2,000 m² Infrastructure equipped area

I PHASE port area II PHASE port area IMPLEMENTATION SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO IMPLEMENTATION Started the procedure of the port area in Smederevo (location of the new port in the industrial zone and the old port in the city area) I PHASE port area II PHASE port area NEW LOCATION THE PORT I phase – 24 ha II phase – 42 ha

SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO IMPLEMENTATION The property of the City's land area of about 113 ha in the industrial zone in the hinterland of the new Port (downstream from the bridge over the Danube) - compact spatial area Activities on the construction of the substation 110 / x kV in the Industrial Zone, for requirements of their future industrial contents Adopted the Program of alienation of construction land in public ownership of the City of Smederevo (as a precondition for the transfer of land to potential investors and initiate new investments) TS 110/x kV

IMPLEMENTATION Founders: The establishment of the Free Zone Smederevo SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO IMPLEMENTATION The establishment of the Free Zone Smederevo Founders: 1. City Smederevo, with 30% share 2. Metech d.o.o, with 30% share 3. Intermehanika d.o.o, with 10% share 4. Mitrašinović d.o.o, with 10% share 5. NAFTA AD, Beograd, with 10% share 6. Tomi trade d.o.o, with 10% share Coverage FREE ZONE SMEDEREVO

COMPANIES operating in the Free Zone Smederevo SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO COMPANIES operating in the Free Zone Smederevo Metech d.o.o. Unitex. d.o.o. PKC Wiring Systems d.o.o. MS Tecnologie d.o.o. Tomi Trade d.o.o. ITG d.o.o. JET OIL SERBIA d.o.o. ServFood d.o.o. Rosa Catene d.o.o. Q&P d.o.o. Carbotech industrije d.o.o

INDICATORS OF OPERATIONS SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO INDICATORS OF OPERATIONS FREE ZONE SMEDEREVO 2014 year 2015 year DOMESTIC GOODS – rsd 238 million 336 million IMPORTED GOODS – eur 8,9 million 13 million INVESTMENT IN FACILITY AND EQUIPMENT – rsd 1,2 billion 1,9 billion NUMBER OF EMPLOYEES EMPLOYEES 650 1363 CONSTRUCTION AND MAINTENANCE 600 1100

PKC Wiring Systems d.o.o. Smederevo SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO RESULTS PKC Wiring Systems d.o.o. Smederevo (branch of the Finnish company PKC Group) Activity: production of cables for the automotive industry Constructed halls – 20.000 m² Continuous employment - 1,500 workers The possibility of extending the production hall Business in free zone regime

RESULTS JET Oil Serbia d.o.o. Industry: Warehousing and Distribution SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO RESULTS JET Oil Serbia d.o.o. Industry: Warehousing and Distribution of liquid petroleum products Capacity : 25.000 t The dock on the Danube with contemporary decanting: 2,000 l / min. Warehouse complex area of 5 ha The planned capacity expansion (for obtaining land) area of about 10 ha

ServFood d.o.o. Smederevo SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO RESULTS ServFood d.o.o. Smederevo Activity : fish processing and fish production Constructed hall – 4.173 m² Continuous employment – 300 workers The possibility of extending the production hall Business in free zone regime The company exports in the market of the EU Member Sates end the Russian Federation and other countries. ServFood

-kaizen RESULTS Rosa Catene d.o.o. Smederevo Kaizen d.o.o. Smederevo SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO RESULTS Rosa Catene d.o.o. Smederevo Activity : plates, bushes, pins and rollers for heavy conveying chains Brownfield investment Continuous employment to 50 workers Business in free zone regime Italian investment Rosa Catene Kaizen d.o.o. Smederevo Branch of Turkish company Kardem Production of clothes for famous brands: Zara,Mango,New Yorker and other. Operates in Free Zone Smederevo -kaizen

RESULTS LPG PETROL d.o.o. The investment of Slovenian company PETROL, SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO RESULTS LPG PETROL d.o.o. The investment of Slovenian company PETROL, worth about 5 million EUR Activities: The regional warehouse and distribution of LPG modern reloading on the Danube Area Complex - about 4 ha currently 50 employees

RESULTS LIDL German global supermarket chain SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO RESULTS LIDL German global supermarket chain Provided in possess a land area of nearly 1 ha in the industrial zone The building area of about 3,000 m² - begin construction during 2015 opening 2017

SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO RESULTS Cool Food d.o.o. The company plans to invest in agro-tourism complex at the location of the village Vodanj near Smederevo (about 3 km at the “Vodanj” exit on Highway E-75) Acquired or leased land in an area about 145 ha The program framework: - Restoring agricultural / fruit and grape production - Refrigerating the products - Agro-tourism center with a hotel, lake bathing, winery

CCVI – location in the area ''Industrial Park '' SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO RESULTS CCVI – location in the area ''Industrial Park '' The Italian company CCVI Grupa Vicenza Bought land area of about 3.6 ha (lot 233/69) Planned the construction of three production halls, total area of 13,000 m², by three Italian investors for: manufacturing ball bearings; start of production - September 2016; employment of about 100 workers by the end of 2016 Carbotech industrije d.о.о. Smederevo production of brushes for electric motors; beginning of production 2016; employment of about 50 workers during the first year of operation Urban design locations

ENVIRONMENT IMPROVEMENT BUSINESS SMEDEREVU SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO ENVIRONMENT IMPROVEMENT BUSINESS SMEDEREVU  The new Law on Planning and Construction Decisions of the City of Smederevo - the organization of unified procedures for issuing construction permits - one of the most effective in Serbia for the construction of production and storage capacities IS NOT REQUIRED THE PAYMENT of contribution for land development PRICES : GAS: 50 dinars / m³ WATER: 160 dinars / m³ By decisions of the City of Smederevo, the investors are exempted from charges for connection to the local infrastructure systems, payment of all utility charges, property tax : – in the amount of 30% of the established tax on property worth up to 10 million RSD – in the amount of 50% over the estimated tax on property worth over 10 million RSD

TO WORK HARD AND BUILD IN SMEDEREVO SMEDEREVO ECONOMIC DEVELOPMENT AND THE ROLE OF THE FREE ZONE CITY OF SMEDEREVO TO WORK HARD AND BUILD IN SMEDEREVO WELCOME