SLOVAKIA

Slovakia provides an excellent investment environment with its strategic location. It has qualified and cheap labour. Investors can rely on industrial tradition, investment incentives and support of a stable country with strong economic growth in the EU.

Since 1993, Slovakia is one of the most popular investment countries in Europe. Hundreds of major investment projects from the USA, Asia (China, Taiwan, South Korea and Japan) and Europe (Germany, Austria, France and Italy) have chosen Slovakia as a suitable destination, especially in the automotive, electrical, engineering and IT sectors. Slovakia, as a dynamically evolving market, offers investors a rare combination of reasons to invest in the country. It offers:

  • secure investment environment with political and economic stability,
  • strategic position in the heart of Europe with enormous export potential,
  • fastest growing member of the Eurozone over the last 10 years (CAGR),
  • 10 years of leadership in the Central Europe region in the area of favourable business environment 2002-2013,
  • leader in the Central Europe region in the field of security of property rights,
  • leader in the Central Europe region in labour productivity and placement in the top 10 countries with the most diligent workforce; source OECD,
  • skilled workforce, high adaptability of workers to various types of corporate culture and management,
  • high adaptability of new technologies and high innovation potential,
  • membership of the EU, NATO, OECD and one of the few countries in Central and Eastern Europe that has the euro as the official currency,
  • built industrial parks and zones and the experience with them,
  • continuous growth of the infrastructure network,
  • state aid in the form of investment incentives, some of the lowest taxes in Europe.

When selecting investments Slovakia has key factors such as the possibility of simple implementation and investment security. World Bank surveys show that Slovakia has achieved the best score in the security of property rights as well as in the ease of doing business among the countries of Central Europe. The Slovak workforce is recognised by foreign investors operating in the country as educated, motivated, and adaptable to different types of management styles, with good language skills and a positive approach to work. OECD ranked Slovakia in the top ten hardest working countries. A further strength is that Slovakia is the leader in the region of Central Europe in labour productivity and freedom of investment.
Source: SARIO

Successful investment projects by country for the period 2002-2012
Source: SARIO
Between 2002 and 2012 the economy grew at an average annual real GDP growth of 4.5%:
Source: http://www.invest.gov.tr/
According to the OECD, Slovakia also has good prospects for the future. Its position in the top ten countries with the fastest growing economy of OECD members during 2012-2017, with an average annual growth rate of 3.3%.
Source: http://www.invest.gov.tr/

ŽILINA REGION AND ORAVA

The M1 Park is located in the town of Nižná in the Orava region which is part of the Žilina Region. The area is characterized as being cost-effective, yet still has a skilled workforce with low staff turnover. Furthermore, the region is attractive because of its convenient location.

The skill of the workforce is a result of the history of the region. In 1958, production of televisions began in Nižná. In the period up to 2000 a total of nearly 12 million TV sets were produced. Even after the demise of the Orava television factory the electrical engineering industry did not disappear from the region. Many global companies such as Panasonic, Philips, Samsung, Rank Xerox, Johnson Controls, etc. have found their place here.

Skilled workforce

The expertise of the workforce is ensured by an accessible secondary education, which is linked to the industrial tradition of the area and is governed by demand. The Žilina Region is known for a well-developed educational system at all levels.

The University of Žilina prepares technical experts in these faculties:

  • Electrical Engineering with degree courses in Biomedical Engineering, Electrical Power Engineering, Multimedia Engineering, Process Control, Telecommunication and Radio communication Engineering and Power Electronic Systems.
  • Faculty of Management Science and Informatics with degree courses in Applied Network Engineering, Information Systems, IT tools to support decision making, Management and Computer Engineering.
  • Mechanical Engineering with degree courses in Applied Mechanics, Automated production systems, Construction of machinery and equipment, Materials Engineering, Industrial Engineering, Combustion Engines, Aircraft Engines, Engineering Technologies and Environmental Technology

Close to M1 there are more technical vocational schools, which annually teach and train hundreds of graduates:

  • Nižná Secondary Technical School, professions taught: Electrician, Electrical Engineering, Personal computers and computer networks, Energy, Industrial Electrical Engineering, Finance Management.
  • Tvrdošín Secondary Technical Vocational School, professions taught: Electrical Engineering, Technical and Information Services, Mechatronics and others.
  • Dolný Kubín Private Secondary Technical School, professions taught: Mechanical tooling fitter, Electrician - high voltage equipment and Toolmaker.
  • Dolný Kubín Secondary Vocational Polytechnic, professions taught: Machinery and equipment mechanic, Mechanical tooling fitter, Cutting and welding machinery and equipment programmer, Electrical engineering mechanic and others.
  • Námestovo Secondary Technical Vocational School, professions taught: Mechanical tooling fitter, Metalworker, Machinery mechanic, Electrician, Engineering and others.

Productivity, staff turnover, wage

There is a very low staff turnover In the Orava region compared to other parts of Slovakia. This low turnover is positively reflected in higher quality work and contributes to employee satisfaction and loyalty.

Slovakia is characterized by high productivity to which the young, educated and motivated population contributes.

Labour productivity from sales of own capacity and goods according to categories and special aggregates of industrial classification of economic activities (NACE Rev. 2) in EUR, indices
Source: Slovstat

Average gross nominal monthly wage (gross wage, lowered in accordance with the law or employee agreed upon deductions) in the region ranges from 510.00 EUR for operators in production. The minimum wage is 380.00 EUR for more or less unqualified positions.

Transport and infrastructure

The Žilina region is an important international crossroads linking the transportation networks of three countries - Slovakia, the Czech Republic and Poland. Parts of the motorway network are still under construction. Currently from Nižná there is motorway access about 50km from Krakow or Žilina is 100km distant (soon to be 45 km) from where there are motorway connections with Bratislava, Brno and over the entire route to Prague, meaning Nižná is linked with other international transport routes. The organization of rail travel means the Žilina Region interlinks the Slovak rail network with the pan-European system. It is on the Bratislava - Košice mainline and lines from neighboring Poland and the Czech Republic. In the immediate vicinity of the M1 Park there is a railway station which is on the line to Kralovany which is on the main railway line Vienna-Bratislava - Kosice-Prague. The main road through Nižná crosses right through the Orava region and is of international significance, because it joins Poland and Hungary (E 77).

Industry

The best performing companies in the region operate in the electrical engineering, automotive, metallurgy, engineering, timber, wood-pulp, paper and allied product sectors. Construction also has a strong position in the region and has an annual turnover of 13%. The electrical engineering and telecommunications industries have an important role in the region. Likewise information technology, communication technology and electronics are important sectors with a long tradition especially in research and development and also in software and hardware production. Important centres of electrical engineering production are in Liptovský Hradok, Nižná and Trstená. Currently, the largest development can be attributed to the automotive industry due to the locating of both VW and KIA and their suppliers in the region. The region has also become a research base, not only in the field of electrical engineering, but also in the transport, information and communication technology, chemical, textile and food industries.