- 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, surroundings of superb natural landscapes, bold vision and committed leadership, Reșița, as well as the region it polarizes, represent a high potential new market, production location and local 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 the 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 rentable spaces
With over 10 million square feet available for developing projects greenfield projects, Reșița is open for business. While the 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 for 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 lots 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 in the area.
Reșița and nearby towns have quickly adapted to the training demand required by the fast-growing local businesses, adjusting their vocational colleges 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 is available in Reșița starting with 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, Brasov, and Timisoara.
The share of migrants coming from other countries 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 amongst 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 price with mobility plan and good connectivity
According to The National Association of Authorized Romanian Valuers, the average price per square meter in Reșița is about €448 – 60% less compared to 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 has a good connectivity to the national infrastructure. Located in Western Romania, in less than standard daily driving distance to European capitals: Vienna (6h:30min), Budapest (4h), Belgrade (3h). The closest larger city is Timișoara, 100km away north west of Reșița.
The city is less than 1h away from 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 Delta are in the range of 150km.
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 set here in 1771, Reșița quickly became one of the most important industrial cities in South-East Europe. Over time, Reșița 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 Valea Țerovei Industrial Area, with many adult age residents in search for work. The peri-urban area of Reșița is well serviced with 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 as compared to other larger towns or the capital city. 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 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 offer and ensure supply of competent workforce for businesses with growth potential.
Reșița’s competitive advantage consists in reduced bureaucracy, professional treatment, facilitating contact with other local companies or institutions whose partnership may help investors to 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 footballers every evening. Renovated indoor and outdoor swimming pools are planned to open up by 2018, based on EU funding investments.
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 21th 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 flourishing that would further highlight the richness of the area.
10. Existing lots and facilities
Valea Țerovei Industrial Area is meant to consolidate the industrial profile of our town. The 28.5ha centrally located industrial area was established with EU PHARE 2005 funds, now being 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 concessioner land on request by negotiation, based on a minimum price set by an external independent evaluation report.
The awarding procedure is made through transparent tendering processes.
- Internal access roads and sidewalks, fully asphalted 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/