Estonian economy at a glance Estonia's economy offers key - PowerPoint PPT Presentation

www.investinpaldiski.ee Riga, 02-03.05.2012

Paldiski- Home for Salavat Julajev

More information: Enn Laansoo, Jr. +3725216858 enn.jr@investinpaldiski.ee C hairman of the Board Association of Entrepreneurs of Paldiski M ember of the Board PAKRI Science and Industrial Park for renewable energy

Estonian economy at a glance Estonia's economy offers key opportunities for companies in a number of sectors including ICT, electronics, machinery and metalworking, wood processing, logistics/transport and food. The R&D elements of these activities are supported by the country's 9 universities and 24 higher education colleges, which collectively provide a source of graduates, often fluent in English, Swedish, Russian, Finnish and German. 1. Estonia has a modern market-based economy with a modified currency board monetary system 2. As of January 1, 2011 Estonia is a member of the euro area 3. Estonia has the highest per capita income levels in Central and Eastern Europe

Cornerstones of economic success • Monetary reform - currency board arrangement since 1992 • Privatization - completed, with 4 infrastructure companies in state ownership • Liberal foreign trade regime - market is open for all competition • Modern tax system - flat income tax with 0% on reinvested profits Credit ratings Estonia has some of the highest international credit ratings in the region. • Standard & Poor: AA- • Moody's: A1 • Fitch IBCA: A+ Key economic indicators • GDP at current prices: € 14,5 billion (2010) • GDP per capita: € 10 820 (2010) • Annual FDI: € 1,162 billion (2010) • FDI stock: € 12 billion (2010) • Unemployment: 10,4% (2012) • Exports: € 8,8 billion (2010) • Imports: € 9,2 billion (2010) Read more: http://www.bankofestonia.info/pub/en/majandus/majandus

• Founded in 06.2010 • 15 members, including Municipality of Paldiski • Nonprofit, open for everyone Pakri Plaza OÜ Soojusenergia OÜ Balti Gaas OÜ Paldiski Tuulepargid OÜ

 Area of ca 102km2, Estonian second largest after capital Tallinn  Ca 4200 citizens (max ca 10-16000)  Distance to Tallinn, 49km, ca 40 minutes  Distance to Riga ca 325, ca 4,5hours › Helsinki ca 130km, ca 5 hours › St. Petersburg ca 420km, ca 7hours › Moskov ca 900km, ca 16hours › The Republic of Bashkortostan ca 2500km ›  The first Estonian settlements since the 10th century, City of Paldiski established in 1718  Home for Salavat Julajev during 1778-1800  The town is built on one of the most scenic sections of Northern Estonian coastal cliff

 2 large non-freezing and deep ports  Railway connection to Russia, Europe and Asia  Highway  Ämari Airport (today under NATO use, perspective for cargo transport centre)  Existing infrastructure  Business value chains to attract foreign investors  Close to capital Tallinn (workforce)  24 hours and 50M consumers  48h and 300M consumers

 Paldiski is second after Tallinn in terms of the royal visits and magnet throughout centuries for various foreign invaders and rulers- main factor our deep, non-freezing ports and nature First Swedes arrived in Pakri area around 13th century  Väike-Pakri and Suur-Pakri Islands (Lilla Rägo and Stora Rägo) in  14th century  The tsar Peeter I decided to build in the 1718 the main naval base for Russian Empire`s Baltic fleet, which would be comparable to the largest European naval bases  Luckily it was not completed (Peeter I died in 1725)  Another try and this time Russians were lucky- since 1940`s to 1994!! Paldiski was special military zone  Nuclear submarine training center

1939 main export to  Sweden, 11 000tons of Limestone (2011 ex 330 000tons limestone- 95% FIN) 2011 to Sweden  176 000tons of timber

 19th century and extensive railroad construction took place by Russian Empire- St.Petersburg-Tallinn-Paldiski railroad  Railroad initiated real estate development - new commercial warehouses, also Naval College, train depot etc

Value chain- chain of different companies working together to offer variety of services and products to attract companies to invest to Paldiski.  Car logistics  Energy center  Modern metal manufacturing center  Oil and gas storing, loading center  Depot for Russian and Asian market

Cars pre delivery inspection  and parts logistics Volume  • 2010- 29 000 cars • 2011 (est)- 44 000 cars • 2012 (est)- 53 000 cars Brands: Mercedes, Toyota, Lexus, Citroen, Honda, Subaru, Mazda,  Nissan Attractive for the client  • Storing site for more than 5000 cars www.assistor.ee 

 Energy production WIND PARK DEVELOPER  existing 18,4MW wind park- Pakri wind park  additional 22,5MW, construction started, ready in 2012- Paldiski wind park Paldiski Tuulepargid OÜ  www.4energia.ee LNG-TERMINAL DEVELOPER  phase 1- 60 000m3 storage and 1BCM yearly  phase 2- 2x 160 000m3 storage and 2,5BCM/yearly  Ready in 2014 BIOMASS BASED DISTRICT BOILER PLANT  woodchips, bark, sawdust and peat  Using a biomass for district heating= environment friendly and stable heat energy price  www.swenergia.ee

 Energy production and sales LARGEST ENERGY PROVIDER, WIND PARK DEVELOPER  22,5MW wind park, construction started, ready in 2012  www.energia.ee  Renewable energy competence centre SCIENCE AND INDUSTRIAL PARK FOR RENEWABLE ENERGY  renewable energy research and development (R&D),  new technology test-bed  production  incubation and start-ups  developed with Tallinn Science Park TEHNOPOL  own SmartGrid energy network, including ca 18MW wind- park  ca 57 hectare  construction starts in the beginning of 2013

 Hot dip galvanizing plant  The most technically advanced plant in the Baltic's and Scandinavia  Started in 2008  All zinc related production and services  www.zincpot.ee  Modern metal manufactures industrial park  ca 21 hectares  24 lots, size from 2200 to 14000m2  www.paldiskitehnopark.ee

Light oil products tankfarm  • Total capacity 317 900 m ³ Petrochemicals tankfarm  Total capacity 28 000 m ³ • LPG tankfarm  • Total capacity 12 000 m 3 Other services  • product forwarding; • customs/excise warehousing; • insuring the cargo in Estonia; • independent laboratory analyses; • real-time cargo information through internet; • mixing cargo www.alexelaterminal.ee 

Privatly owned  Free Customs Port (Toll free  zone) › 400 000m2 storage area › 20 000m2 of storage buildings Total docks length ca 1km  Vessels max depth 12,5m  Vessels Max length 290m  www.portofpaldiski.ee 

Stevedore company in Northern Port  Main Cargo groups  › Commercial vehicles and passenger cars › Rolling and chain wheeled cargos › Projects and heavy lift cargos › General and bulk cargos › Containers Specially designed  transportation corridor, what take the shortest time possible to deliver cargo to the final destination

State owned  10 docks  Total docks length 1,85km  Vessels max depth 13,5m  Vessels Max length 230m  Volume  › 2009 3,8M tons › 2010 3,9M tons › 2011 (est) 4,6M tons New investments to  › wood pellet warehouse › Peat warehouse › Oil refine factory www.ts.ee 

Stevedore company in Southern Port  Main Cargo groups  › Scrap metal › Timber › Peat › Limestone › Wood pellets › RoRo containers and paper Volume  › 2011 (est) 1,8M tons › 2012 (est) 1,8M tons www.esteve.ee 

Small boats manufacturing and sales  Maximum production capacity ca 460 boats per year  2009-2010 only 40 boats manufactured  Interest from Sweden- co-operation with Swedish aluminum boat and RIB-  type boat manufacturers www.bellmarine.ee 

the most modern fresh fish factory in the Baltic Sea  started in 2010  2010/2011 result ca 10 000 tons fresh fish  2011/2012 expected the same  ca 95% goes to export- Denmark, Ukraine, Russia, Kazakhstan, Moldova, Romania,  Latvia articles  frozen, spiced, salted sprat and small herring › filet and all other related products › full automated manufacturing  daily capacity up to 200T per day  cold warehouse for 3000T  plans for opening own dock for boats  Interest in Sweden- exporting articles  www.traalpyyk.ee 

 New high quality living area HIGH CLASS RESIDENTIAL PROJECT Near to Leetse manor • 5,2 hectare • HOME OR COTTAGE IN THE NATURE 16 hectare • STERLING LIVING AREA MAINLY FOR ELDERS 8 hectare • ca 350 residents • elderly care service • small kindergarten and school • other supportive services •

Its all about packaging and seeing the great opportunity

 City of Paldiski- biggest potential in business development • Good geographical location • Existing infrastructure • Nature • Every day co-operation between municipality and entrepeneurs  Proven for centuries as a attractive region to invest in  Our strengths today- value chains to attract foreign investors  Strong co-operation with neighbors to compete in global market