More information:
Gusztáv Andor Török mayor
Phone: 06-78/461-172 Fax: 06-78/462-375
László Varajti manager
Phone: 06-78/462-362 Fax: 06-78/462-375 e-mail: muszak@kalocsa.hu
Investment opportunity:
Various areas supplied with public utilities in the Industrial Park owned by the Municipalities of Kalocsa and Foktő are available for greenfield investments by different enterprises.
The airport situated on the territory of and owned by the Municipalities of Kalocsa, Foktő and Uszód is selling at a very favourable price. This airport is in the immediate vicinity of the Industrial Park.
Kalocsa is situated in the centre of Hungary on the bank of the Danube, at 120 km south of Budapest, 80 km from Yugoslavia and 100 km from Croatia.
A new bridge over the Danube at Szekszárd has improved the town's accessibility. The town can be reached directly on the main road No. 51, and also by rail, water and air.
The infrastructure and business culture of the region is developed. Additionally, skilled and disciplined labour is available.
The Municipalities of Kalocsa and Foktő conduct a stable policy to support the development of industry in the region.
The Industrial Park can be a proper permanent establishment not only for enterprises manufacturing for developed markets, but in connection with the economic reconstruction of the Balkan region, and also for both productive investments and logistical purposes.
Introduction
The objective of the establishment of the Industrial Park is to create attractive investment
opportunities with solid infrastructure, services and professionalism.
This marketing document introduces the investment opportunities the municipalities of Kalocsa and Foktő offer to those who reside in the Industrial Park. The document outlines the characteristics of the wider and narrower environment of the Industrial Park deemed to be important for investors and describes in detail the Park's facilities and the services available. Finally, there is a summary of the benefits granted to new residents depending on the size of the investment and the number of staff.
Summary
Kalocsa is situated in Bács-Kiskun county, in the southern part of Hungary, by the Danube River on the 'Alföld' (The Great Plain). The town is accessible by road, rail, air and by water. Kalocsa is situated to the south of Budapest and is 120 km far from the capital travelling on the main road No.51.
The economy of the town is based on various industries of agriculture and sub-branches of food processing. The town's internationally known product is the paprika of Kalocsa. KARAMELL Sütőipari Részvénytársaság (Bakery Plc.) is a nationally respected food producing factory. In the field of industry, KALOPLASZTIK Műanyagipari Kft. (Plastic Producing Ltd) has seen significant success.
The direct aim of the Industrial Park project - besides restructuring the town's economy- is to provide a long-term solution for the employment situation and to ensure and improve the area's long term employment prospect and to keep the population in the area.
The Industrial Park owned by the Municipalities of Kalocsa and Foktő offers advantageous economic positions for enterprises settling in the area. The Municipalities support the enterprises with significant local tax benefits.
Hardworking and disciplined human resources needed by the residing enterprises are available in the area. One of the most significant attractions of the town is its skilled labour force able to communicate in foreign languages. This can be traced back to times following the Ottoman occupation of Hungary. The resettlement of the region resulted in the creation of a multicultural population of a heterogeneous ethnic composition. This heterogeneous ethnic composition has remained since then. Dominant ethnic groups besides Hungarians include Germans, Serbs and Croats.
Due to the effects of the planned construction of clearway M6 and a bridge at Dunaújváros and the related development of main roads and motorways - and owing to the other transportation possibilities available - Kalocsa and its environs will become a central hub in Europe. Owing to this central location, the envisioned economic reconstruction plans for the Balkan region will highlight and increase the business position and role of the town.
1. Hungary's investment environment
The transition to a market economy in Hungary began in 1968 and was considerably accelerated in 1989. Over the past few years the country has taken crucial steps towards reforming the institutional system and the economy (liberalization of price and currency regulations).
The market economy has been established and the privatization process is coming to an end. The private sector currently accounts for around 70 % of GDP, which has realized a growth rate of 4.9 % and 4.5 % in 1998 and 1999, respectively; 6 % in 2000. 2/3 of the exportation, which is determinative in realization, goes to the European Union.
Over the past fifteen years Hungary has attracted the most FDI per capita in Central Europe. Hungary has realized over USD 21 billion investments in its economy by foreign investors since the political change-over in 1989. This index per capita is greater than in any other country in the Central European Region. In the early years of the political change-over, regulations encouraging investors to establish joint ventures and green-field investment were introduced, e. g. Law XXIV of 1989 for Foreign Investment in Hungary, and it has guaranteed complete security for capital. According to our experience so far not only the cheap label force and closeness of Western Europe but also the well-qualified human resources and stability of politics have been the most important factors for investors.
In the post-privatization period, the Industrial Parks created an attractive investment environment and became a success factor to enhance capital inflow, therefore, their establishment is considered a priority by State and Local Authorities.
The Country possesses a well functioning, stimulating system for investment. Its main elements are the direct and indirect investment support, the system of suppliers supported by the State and the developed institutional system of investment support.
Hungary celebrated the millennium of its Statehood in 2000. In the past 1000 years the Hungarians excelled in the protection of the universal and Christian culture and European values, and in the enrichment of universal human culture.
The results of sciences, success in sports, culture and arts can be attributed to the efforts made during centuries by the thousand year-old Hungarian educational system. Hungarians are well known for their ability to learn, inventiveness, open mind, creativity and ability to co-operate.
The history proved that the Hungarians acquired qualities such as intelligence, flexibility and tolerance.
The Country's international situation is advantageous as it has good relationships with all neighboring countries. Hungary is a member of NATO and OECD, GATT, IMF, WTO, EFTA, CEFTA, and IFC organizations. Hungary has been an ordinary member of the European Union since 1st May 2004.
2.Introduction of Bács-Kiskun County and Kalocsa
Geographical position, environment
Bács-Kiskun County is the biggest county in Hungary comprising two-thirds of the region between the rivers Danube and Tisza. This area is in the middle of the country so it can serve as a starting point to any direction in Hungary as well as in Europe.
Kalocsa is situated in the Western part of Bács-Kiskun County, at 120 km south of Budapest, and is the commercial and administrative center of the area.
Transportation infrastructure
Kalocsa can be reached from Budapest and Baja, from the north and south respectively on the main road No. 51. The town is connected to a main railway line (Budapest-Kiskunhalas-Subotice-Novi Sad-Beograd) by a 30 km-long branch line.
Major towns nearby:
Budapest 120 km
Kecskemét 90 km
Szeged 115 km
Pécs 128 km
The industrial park can be approached via a second-rate national main road that will be modernized and widened this decade. The new Danube bridge near Szekszárd and Dusnok has been built and it provides substantial improvement by connecting the Western river bank with the main road. A further long-range development plan includes the construction of the "Southern Motorway".
Substantial potential lies in water transport on the Danube - flowing only 4 km away.
The nearest river port to the south is in Baja and ferry boats operate between Kalocsa and Meszes which is 4 km far from the town.
The development of air transport offers high potential by using the existing airport near the planned industrial park, which used to be a Hungarian and later, a Soviet military airport. The airport covers an area of 220 ha and its drainage has been constructed. The runway is 2.5 km long, 60 m wide and runs in a north-south direction. The reserve grassy runway is 2 km long and 150 m wide.
3. Economy
Natural resources helped Kalocsa and its environs to develop into an agricultural area also covering the processing of agricultural products. The most important product of the region is the red pepper which is world renowned owing to its outstanding quality.
Complete processing lines are in operation throughout the town: scientific research, cultivating, producing and processing a variety of types. The local Paprika Plc. is the market leader in this respect.
Wheat, maize and fodder plants are grown on arable lands, while onion, garlic, green beans, medical herbs and spices are produced by horticulture.
Vineyards and orchards are situated in the south-eastern part of the region. Consequently, its fruit juice and juice concentrate producing industry, as well as wine production is highly developed.
The industrial activities are partly related to agriculture (paprika production, milling industry, silos, baking industry).
As a result of organic farming, dried vegetables and herbs are well known all over Western Europe.
Both the baking and sweet industry are important branches in the region. The processing of agricultural products includes drying, cleaning, storing and milling of grains, pasta production, vegetable drying and pickling.
The transport industry has been developed in accordance with local requirements. The possibility of water transport is significant as it is traditional in the region. Haulage is also important, and two joint ventures also operate on the international market.
As a result of the industrialization program of the '60s, the town has a considerable tradition in the following fields of the machine industry: the assembly of electrical equipment, manufacturing of construction machinery, car-body production and plastic industry.
The economic structure of the region consists mainly of competitive and flexible small and medium size enterprises. A further advantage lies in the good organizational structure of the local company shareholders, the entrepreneurial spirit and the traditionally solid business moral and work ethic.
Natural sights, historic monuments and folklore provide a good potential for tourism.
The privatized companies have built up business relations, modernized their production procedures and most of them acquired ISO certificates.
The continuously changing form of industrial production and small private businesses are the determining motive force to create new workplaces. The number of industrial employees dramatically decreased in Kalocsa and its area. This decline caused a gradual increase of private ventures, small businesses and economic organizations.
Economic life in Kalocsa is supported by the following four bank branches: Kereskedelmi és Hitelbank Rt., ERSTE Bank Rt., OTP Rt., Dunapataj és Vidéke Takarékszövetkezet.
Tourism is getting more and more determining factor in Kalocsa and its area. The highlights of the town include the Baroque downtown zone the archiepiscopal residence and folklore. There are considerable cultural events in Kalocsa, too. One prominent of them is the 'Danube Folklore Festival' every three years. Further offers are provided by the natural endowments such as River Danube, Lake Szelid and the cellar village of Hajós.
Living conditions
It is a significant factor that the town and its region can offer attractive living conditions for foreign entrepreneurs and managers intending to reside in the industrial park.
There is a possibility for the potential owners and managers to buy flats in the town.
Shopping possibilities are suitable, traffic conditions are good, and basic consumables are easily accessible.
There is a high standard of medical and hospital care. If needed, children can also get non-Hungarian elementary and secondary education.
The relative closeness of Budapest, Kecskemét, Szeged and Pécs offers cultural programs, entertainment and a wide variety of higher education. In 2004 an independent collage training is being established.
Labour market
The economic recession can be recognized in the county, too. Unemployment is increasing. While earlier both industry and agriculture employed 36-36% of the inhabitants, recently agriculture has been hit the hardest by unemployment.
The population of Kalocsa and its region is more than 60,000. Some 27,880 people are employed in the region. Manual and non-manual workers represent 69 % and 31 % of the labour force, respectively. The unemployment rate is over 10 %.
Education
Kalocsa is the educational center of the region. There are five high schools in the town, including a secondary grammar school and a catholic church school. The other three vocational schools provide health, agricultural, economics and technical training in addition to the final exam. The technical training provides especially high qualified work force in a flexible way according to the requirements of the economic improvement. All secondary schools in the school system aim at providing advanced computer training at their branches. Great emphasis is laid on language education, primarily German and English are preferred.
The school system in Kalocsa is capable of quickly organizing training courses as required by new employers. The new college being set off this year is going to provide training courses in economics, IT and languages.
Educational institutions in Kalocsa
Primary schools 5
Trade schools 2
Vocational schools 3
Secondary grammar school 1
College 1
Culture
Kalocsa's general and church history can be traced back nearly 1,000 years. The town's cultural infrastructure is well established. There is a temporary theatre, a symphonic orchestra, the town offers several museums, libraries and sports facilities.
Folk art and crafts represent important traditions in the region. Local embroideries, textiles, porcelain and pottery along with embroidered national costumes are widely known and popular.
A number of events attract visitors every season. The most important of them are the Blue Bird Festival, the Paprika Celebration and the Danube Folklore Festival.
The town has a lively sporting life. The most popular sports are wrestling, handball, basketball, volleyball, soccer and water sports.
Besides the indoor swimming pool, the Danube and Lake Szelíd offer recreational opportunities.
The local facilities of thermal and health tourism are currently being established.
4. The property
The area of the envisaged industrial park
- Gross area 41.1 ha
- Traffic roads - 6.0 ha
- Net area 35.1 ha
- Already sold to businesses 5.6 ha
- Incubation and Service House, or retained for management 1.0 ha
- (Net) area yet for sale 28.5 ha
This area can be substantially expanded without interfering the interests of the airport if the needs exceed expectations.
The limits of the envisaged industrial park:
- the street called 'Paksi köz' in the east, with a fence built in the north-west direction
- an operating railway line in the south and west
- the airport area in the north, in the direction of the possible future expansion.
The schedule of the implementation
Phase 1
- Possessed by the Municipality of Kalocsa 15.5 ha
- Possessed by Foktő Community 10.9 ha
- Already in private ownership (businesses) 4.5 ha
30.9 ha net area
-Related public areas - road network 5.5 ha
Phase 1 (gross) total 36.4 ha
Phase 2
- Possessed by the Municipality of Kalocsa 2.7 ha
- Already in private ownership (businesses) 1.5 ha
4,2 ha (net area)
- Related public areas - road network 0.5 ha
Phase 2 (gross) total 4.7 ha
Property relations
Kalocsa and Foktő have acquired the ownership of the area. Therefore, it is owned by the municipalities. As a result, no additional costs or legal problems may arise. It gives a good start in itself to the implementation and improves the reality of the establishing process. The Foktő Community owns 10.9 ha while the municipality of Kalocsa holds 18.2 ha.
The property relations in the entire area of the planned industrial park are well-arranged. Moreover, it is also possible for the park to be expanded. The area expected to be used for this purpose is also owned by the Municipality.
Some 5.6 hectares of the land were bought by three local entrepreneurs. Two of them wish to utilize their area within the industrial park for entrepreneurial purposes while the third one is planning to expand his plant existing in the town in later years.
Infrastructure and its improvement
The industrial park is in an advantageous situation in regard to the necessary infrastructure and public utilities. On the initiative of the Municipality, the public utilities able to supply the needs of the planned industrial park as well as those of the nearby new housing estate were built as part of a complex program. To improve these public utilities, a total of HUF 80 million had been spent by the Municipality by 31 December 1997. From the point of view of settling entrepreneurs, public utilities within the site can be obtained at a flat rate which is significantly below the Hungarian average.
Telephones
The supplier is called EMITEL. 100 main lines are available at the telephone center established at the present reception. According to demands, the network can be developed from this location.
Water supply
Water is supplied by KALOCSAVÍZ Kft. In the area water supply is provided through a new water pipe ('NÁ 200') branched off the main pipe ('NÁ 500') which is situated beside the old road to Foktő.
An appropriate number of fire plugs were put on the pipes. Each of them is capable of supplying 3,000 liter/minute of water at the same time.
The individual establishments are connected to the public utilities at their own costs.
Sewage
The supplier is KALOCSAVÍZ Kft.
The system designed to carry 500 cubic meters of sewage per day was established along the main road of the area and is connected to the sewage farm of the town through a pipe planted near the reception. The piping provides gravity connection facilities everywhere.
Rainwater piping
The surface rainwater piping system comprises of partly existing and partly new open piping and their connecting drains and gutters which forward rainwater into a cistern to be built on the western side of the industrial railway. The industrial railway has been provided with a drain.
The water piping system drains off the water from covered areas and roofs.
Gas supply
The supplier is the Baja Directorate of DÉGÁZ Rt.
Presently, medium-pressure natural gas supply is provided through the pipe coming from 'Paksi köz'. The size of the pipe is 'NÁ 63', stretching into the area as far as some 250 meters.
Presently, the available quantity of gas supplied is 300 m3 per hour. When the pipe coming from 'Paksi köz' is paralleled, the utilization of a further amount of 700 - 800 m3 per hour will be available and further demands can also be satisfied.
The pressure supplied is 3 bars. Individual consumers can use the service by establishing their own (local) regulators and meters.
Electricity supply
Within the park the capacity of four 630 kW transformers is available.
5. Benefits offered to new settlers
Companies settling in the Industrial Park of Kalocsa are authorized to the titles and benefits derived from the fact that they are in the Park. The services offered by the Industrial Park are available for the companies settling in the Park - making it unnecessary for them to establish complete organizational and operational units, since a wide range of the planned services will be well-utilizable.
In addition, new settlers in the Park may be granted central and local allowances and benefits if certain conditions are fulfilled.
Central allowances and benefits
Based on laws in force, if certain conditions are fulfilled, entrepreneurs are entitled to various allowances from the tax payable on their annual income.
Based on laws in force, the following allowances may be granted in the form of tenders from central sources for clearly determined purposes in accordance with the government's intention to stimulate the economy:
From Economy Development Funds
In order to increase working capital investments, for the purposes to stimulate investments related to the acceleration of industrial restructuring and to the improvement of international competitiveness;
In order to keep workplaces and create new jobs.
From the Labour Market Fund
In order to stimulate employment;
In order to increase the number of workplaces.
Local allowances and benefits
Local business tax
In the case of permanent industrial activity, the basis of the tax is the net sales returns from the products sold or services provided, minus the purchase price of goods sold and the values of subcontracted services.
In case of temporary industrial activity, the payable tax should be stated according to the number of calendar days when the activity is performed.
In the case of permanent industrial activities, the annual tax rate is 2% of the tax base.
In the case of temporary industrial activity, the flat-rate tax is HUF 5,000 per calendar day.
Poll tax
The basis of the tax is the adjusted average statistical number of staff employed by the taxpayer in the area of the municipality. The tax rate is HUF 2,000 per capita.
Building tax
The basis of the tax is the useful area of the building calculated in square meters. The tax rate is HUF 400 per m2.
However, in the case of significant job increase, the rate of tax allowances can be modified by the municipality based on individual agreements.
