- March 2, 2019
- Posted by: RISE Consortium
- Category: Business plans, Competitive research, Economics, Funding trends, Innovation, International
Known for over 250 years as one of the biggest industrial centers in Southeast Europe in the fields of mining, steel industry, heavy machine building and chemicals, Reșița is finding its own way to new businesses, while still retaining its core industrial profile.
With its convenient position and accessibility, superb natural landscapes, bold vision, and committed leadership, Reșița, as well as the surrounding region, represent a high potential new market, location for new production facilities, and local human resource pool to capitalize on.
There are multiple reasons why you should invest here, as Reșița is nowhere short of business growth and entrepreneurship examples. Take a look below at some of the remarkable business opportunities this city can provide, combined with favorable tax incentives, state support for key businesses, and a skilled multilingual talent pool. RISE Consortium is committed to ensure the best support for foreign investors, throughout all stages of the process.
1. Available land resources and spaces for rent
With over 10 million square feet available for developing greenfield projects, Reșița is open for business. While local investors are heavily investing in expansion projects (steel production, food production, and bicycles manufacturing), the city welcomes visionary entrepreneurs, investors, and developers in search of business opportunities.
Reșița has ample resources of available land and warehouses, which are currently unused. The City Hall together with the County Council of Caraș–Severin has developed a fully serviced industrial area, offering land plots at highly competitive lease prices. On-demand customized warehouses may also be made available.
2. Professional education programs and customized workforce training programs
The County Labor Employment Agency supplies yearly on-demand professional education programs for the existing workforce, while providing financial incentives for employers in the process. Local suppliers of workforce training programs provide a wide range of versatile customized training, attracting a high number of potential employees to the area.
Reșița and nearby communities have quickly adapted to the training demand required by the fast-growing local businesses, adjusting their vocational schools to provide a wide array of skills to employees. To meet the growing demand, new training skills can be introduced in the educational curricula in less than 6 months. The dual professional qualification system has become available in Reșița starting in 2017, allowing companies to train new employees on site.
Reșița is an important hub for attracting new workers, ranking 4th in terms of migration after Bucharest, Brașov, and Timișoara.
The share of migrants coming from other counties in Romania, at FUA level, in 2011
Source: Magnet Cities. Migration and Commuting in Romania (World Bank)
3. Strong industrial profile
Reșița retains a strong industrial profile having among its main employers long-established industrial agents such as UCM Reșița (machine construction factory) or TMK Reșița (steel factory).
After having undergone industrial restructuring during the post-communist decades, Reșița is finding its own way to new businesses, while still retaining its core industrial profile.
Aerial view of Mociur brownfield site
4. Affordable land prices with new mobility plan and good connectivity
According to The National Association of Authorized Romanian Real Estate Evaluators (ANEVAR), the average price per square meter in Reșița is about €448, i.e., 60% less than in Bucharest (€1099/sqm). Reșița is amazingly affordable to live in, with some of the lowest rent prices in the country (as low as €250 for fully furnished 3-room apartments).
Reșița also has good connectivity to the national infrastructure. Located in Western Romania, relatively close to booming European capitals: Vienna (6h:30min), Budapest (4h), Belgrade (3h). The closest larger city is Timișoara, 100 kilometers away north west of Reșița.
The city is less than 1h away from the A1 highway (via Lugoj), part of the Ten-T core network corridor connecting Romania to Central and Western Europe. The nearest international airport is in Timișoara, while 3 ports connecting to the Danube and further to the Black Sea are in the range of 150 kilometers.
5. Competitive salaries
In 2017, the average monthly net salary in Reșița was 1,912 Romanian Lei (around 425 Euro, or around $478). When compared to average 2017 monthly net salaries in other EU countries, Reșița is very competitive from the point of view of an accessible, skilled labor force.
The evolution of the average salary in Reșița and other Romanian cities, between 2008 and 2017
Source: National Institute of Statistics
6. Foreign Trade in Reșița
Reșița has a long industrial tradition. As the first steel mill in Romania was developed here in 1771, Reșița quickly became one of the most important industrial cities in South-East Europe. Over time, Reșița has gradually developed as an industrial town, growing its capacity for innovation and its skilled workforce.
The main economic fields in Reșița by turnover
Source: The National Institute of Statistics, ListaFirme.ro
Foreign trade in Caraș-Severin County
Source: The National Institute of Statistics
7. Labor Force Resources
Almost 325,000 people reside within 1h driving distance from Reșița’s Valea Țerovei Industrial Area, with many adult-age residents in search for work. The peri-urban area of Reșița is well serviced by public transport routes administered by the County Council. In addition, morning and evening passenger rail services offer convenient transport for commuters.
Labor force resources in Reșița
Source: Invest in Reșița (investinresita.ro)
8. Investor support
Property tax levels are considerably lower in Reșița compared to other larger towns or the capital city of Bucharest. The 2017 fiscal coefficient for non-residential buildings is set to 0.6% of the property value. A 10% discount is offered on fiscal dues pertaining to property and vehicles for early payment during the first trimester.
The Reșița local administration is recognized to provide all information and logistical support to help investors promptly obtain all required permits, authorizations, and utility connections get the investments started.
The local administration also collaborates with the County Labor Employment Agency and the School Inspectorate to adjust and expand professional qualifications offered and ensure supply of competent workforce for businesses with growth potential.
Reșița’s competitive advantage consists in reduced bureaucracy, professionalism, facilitating contact with other local companies or institutions whose partnership may help investors quickly begin operations.
Property tax level in Reșița
Source: Invest in Reșița (investinresita.ro)
9. Landscape and culture in Reșița
Reșița lays in the middle of Banat Mountains. Two national parks, Semenic – Caraș Gorge and Nera Gorge – Beușnița, provide quick access to hiking trails, off-road experiences, wild nature, and spectacular scenery.
Three hydro plant lakes – Secu, 3 Ape and Gozna – are a treat for those with a passion for fishing. Lakeside leisure sites and pontoons attract regular visitors from neighboring counties in search for fun, sunbathing, or a dive into the crisp waters at Văliug.
Sky slopes are ready in winter-time for snow lovers at Semenic and Văliug, while biking and trail running events are organized regularly. Mircea Chivu Stadium is crowded with cheering young soccer players every evening.
Every year people from all over Romania and abroad gather here to attend music festivals in Gărâna. The internationally reputed Gărâna Jazz Festival will count its 21st edition in 2017, with younger siblings – Wolf-Blues Festival and Gărâna Folk – extending the target audience to wider music tastes.
With Timișoara having been designated to be European Capital of Culture in 2021, the same year when Reșița will mark 250 years of industrial heritage, after having its first furnace built in 1771, Reșița and the surrounding areas are expected to go through a process of cultural and social development that will further highlight the richness of the area.
10. Existing land plots and facilities
Valea Țerovei Industrial Area is meant to consolidate the industrial profile of Reșița. The 28.5 ha centrally located industrial area was established with EU PHARE 2005 funds, now as a modern, fully equipped site ready for investors.
53 lots are available for new investments with a concession price of 0.35 €/sqm/year (no VAT).
Investors can further purchase the concessionaire land on request by negotiation, based on a minimum price set by an external independent evaluation report.
The awarding procedure is made through a transparent tendering processes.
Available infrastructure on site:
- Internal access roads and sidewalks, fully paved and supplied with street lighting;
- Public parking for heavy trucks and small vehicles (88 parking lots in total, 22 for long vehicles);
- Drinking water network – 10 m3/h;
- Industrial water network – 180 m3/h;
- Municipal and industrial sewage network – 75 m3/day;
- Rainwater collection and discharge system;
- Natural gas network – 3.750 m3/h;
- Electricity network with 2.4 MW installed power and 1.2 MW reserve;
- Non-stop security and monitoring services.
Find out more at https://www.investinresita.ro/