Guide to
investment in
Košice
2010 The investor’s guide
prepared by
the City of Košice and
PricewaterhouseCoopers
Contents
Contents
Greetings from the Mayor
Foreword
Major Historic Milestones
City Highlights
A Great Place For Your Business
A Broad Look at Business in the Region
Important Facts about the City
Business and Services
Industrial Production
Research and Development and Information Technologies
Transportation and Logistics
Košice on a Tourist Map
Healthcare Services
Human Resources
Quality Education
A Wide Variety of Investment Opportunities
Košice - European Capital of Culture 2013
Public Private Partnership Projects
Slovak Government State Aid
European Union Funds
Environmental Projects
Life in Košice
Košice Municipality and Important Contacts
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Guide to Investment in KOŠICE
Foreword
The second largest city in Slovakia, Košice is situated in one of Slovakia’s most attractive regions for future investment. It has also been awarded the
title of European Capital of Culture for 2013, and has received the UN City of Peace award.
Košice has diversified industrial production, with a focus on metallurgy and steel processing. The presence of U. S. Steel Košice makes the region the
largest steel producer in central Europe. Košice is known for its high level of academic and industrial research. It has established an IT Valley to support
investment in high-tech services - in particular, information technology and software solutions - and to encourage and strengthen the intellectual
potential of university students.
Košice’s economic growth over the past few years has attracted many foreign investors. The future is bright for Košice, not only because of the
availability and low cost of qualified labour, the availability of investment incentives, or the new highway being constructed to better connect Košice
with western Slovakia, but also because it is strategically located between central and eastern Europe, and Košice is serious about attracting and
supporting new investors. Košice is introducing several measures to attract further investment, and to stabilize the region’s economy in the wake of the
global economic crisis.
This guide is intended to provide information to potential investors, and to give you a taste of what it is like to live and work in the Košice region.
Todd Bradshaw
Country managing partner
PricewaterhouseCoopers Slovensko s.r.o.
4
Guide to Investment in KOŠICE
Major Historic Milestones
1230
1290
1342
1369
1394
1466
1453
1508
1657
1802
1860
1870
1873
1891
1891
1914
1924
1937
1938
1945
1960
1968
1979
1988
1993
2001
2006
2008
already an established settlement – written documents referring to the city for the
first time date back to this year
Košice is awarded the status of ‘city’ with autonomy in regard to its system of justice
and governance
Košice is recognized as one of the capitals of the empire
city is awarded its own coat of arms
first written document about a city school
written proof of a statute of the society of wealthy merchants, the oldest in Slovakia
Košice becomes one of the main centers of European trade
construction of St. Elizabeth’s cathedral is completed
Košice University is founded
first manufacturing is established for the production of pottery
arrival of the first train from Miskolc (Hungary)
first railway introduced- a 33-kilometre-long section from Košice-Kysak-Prešov
the first hotel, Schalkház, opened to the public
horse-driven car line introduced as the first form of municipal transportation
start of the installation of telephone lines
start of electrifying the municipal railway
first Košice Peace Marathon is organized
first Technical University in Slovakia was established in Košice
Košice becomes part of Hungary after an invasion of the Hungarian army
city is liberated, re-united with Slovakia, and temporarily houses the President
and Parliament
construction of the VSŽ steel plant begins (in 2001, acquired by U. S. Steel)
city enlarges by merging with neighbouring villages
population of the city reaches 200,000
UN awards Košice the title ‘City of Peace’
Košice becomes the second-largest city in Slovakia
entry of U. S. Steel into Košice
Košice successful in bidding to host the 2011 World Ice Hockey Championship
Košice is awarded the title of ‘European Capital of Culture’ for 2013
The investor’s guide
City Highlights
INDUSTRY
U. S. Steel Košice – one of the largest exporters in the Slovak Republic, with a headcount of
over 11,000 people
HISTORY, CULTURE AND POLITICS
St. Elizabeth’s Cathedral – Košice is the easternmost location of a Gothic cathedral in Europe
and, at the same time, the largest cathedral in Slovakia; its historic town centre is the largest
historical preservation in the Slovak Republic
Regional Capital – Košice is the seat of the regional government and regional parliament,
constitutional court, and other important institutions
HEALTHCARE
Hospital Košice Šaca – the first private hospital in the Slovak Republic
SPORT AND LEISURE
Steel Arena – the most modern multi-purpose hall in Slovakia, hosting the World Ice Hockey
Championship in 2011
Košice Marathon – the Košice Peace Marathon, organized in Košice annually since 1924, is the
oldest event of its kind in Europe, and the second-oldest in the world (the oldest is the Boston
Marathon in the USA)
Largest Zoo – largest in Central Europe, with total area of 288 hectares
Botanical Garden – has the largest collection of plants and cactuses (over 5,000 different
types)
5
A Great Place For Your Business
Strategic location of Košice in Central Europe
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the centre of eastern Slovakia
the second-largest city in Slovakia
a great geographical location for conducting business with neighbouring countries
a centre of a cross-border region – close to the borders of Hungary, Poland, and the
Ukraine
a border of the Schengen area
excellent accessibility – good road, railway, and airline connections
railway transportation connecting western and eastern Europe. Narrow gauge rail
(European standard) and wide gauge rail (Eastern standard)
railway crossroads of lines connecting northern and southern Europe, the city is
connected with the AGTC rail line connecting Hungary and Poland
a connection of international roads E 50 (Bratislava-Košice-Ukraine) and E 68 (HungaryKošice-Prešov) with southeastern European motorways (through Hungary and up to the
Baltic Sea)
international airport used for passenger and cargo transport
Support of the business environment
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support of foreign and local investors by the city
a high concentration of general and specialized state and municipal institutions
a stable political and economical position
the city master plan includes attractive locations for investments, enabling a fast start for
construction
the possibility to invest in greenfield industrial parks or in existing brownfields
a well-established business environment, with science, research and development, and
universities
an increasing demand for housing, quality services, and jobs
upcoming opportunities in the development of industrial and technology parks, the
construction of public service facilities, residential housing, and sport and recreational
facilities
6
Qualified Labour force
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qualified, flexible and available
a high degree of mobility within the region
very competitive labour costs
advanced level of education
younger generation is proficient in foreign languages and IT skills
excellent quality of life, pleasant living and work environments
Industry in the region
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industrial production, metallurgy and steel processing prevails – the seat of a metallurgy
conglomerate which is the largest steel producer in Central Europe
the presence of developed high-tech and value-added businesses, service centres
the possibility to use geothermal sources of energy
Tourism
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rich historical, cultural, and sport traditions
the possibility to use geothermal water sources
Other Business and Services
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many opportunities for investment projects – scope for significant expansion in services to
meet the demands of local residents
Guide to Investment in KOŠICE
A Broad Look at Business in the Region
Košice is the most important industrial centre in eastern Slovakia. There are more than 20,000 businesses operating in Košice, accounting for more
than 9% of the Slovak GDP. A major share of industrial production is represented by the metallurgy giant U. S. Steel Košice, a producer of higher valueadded product for the packaging industry, electronics, consumer products, and the automotive industry. In 2009, the company had 11,184 employees,
making it the largest employer in eastern Slovakia.
Other important companies include Východoslovenské strojárne Košice (VSS Košice) and Východoslovenské tlačiarne Košice. The construction
industry is represented by Inžinierske stavby Košice.
The heating plant TEKO Košice in the southern part of the city distributes heat to Košice and is a producer of electrical energy.
Košice is quickly becoming a centre of cutting edge information and telecommunication technology. Many IT firms have been opening their offices
and a variety of support centres in the city, such as T-Systems Slovakia, Ness Slovensko, Siemens PSE, RWE IT Slovakia, Cisco Systems Slovakia,
Microsoft Slovakia and Slovak Telekom. In 2007, the Košice IT Valley association was created with around 3,000 qualified experts in the field.
The investor’s guide
7
A Broad Look at Business in the Region
Table of largest companies organized by sales revenues in 2009
Ranking
Company
Industry
Sales (in thousands of Euros)
Employees
Foreign capital
Origin
1
U. S. Steel Košice, s.r.o., Košice
metallurgy
1,733,510
11,184
100 %
USA
2
Východoslovenská energetika, a.s., Košice
energy
539,815
not available
49 %
Germany
3
Inžinierske stavby, a.s., Košice
construction and engineering
247,878
1,604
96 %
France
4
Labaš, s.r.o., Košice
wholesale/food & beverages
128,374
not available
0%
-
5
Eurovia SK, a.s., Košice
construction and engineering
82,054
630
97 %
France, Czech Republic
6
Tepelné hospodárstvo, s.r.o., Košice
energy
50,938
195
0%
-
7
RWE Gas Slovensko, s.r.o., Košice
energy
50,012
not available
100 %
Czech Republic
8
T-Systems Slovakia, s.r.o., Košice
IT services
40,722
1,487
100 %
Germany
9
Steelinvest, s.r.o., Košice
wholesale/metallurgy
37,257
not available
0%
-
10
Metalex, a.s., Košice
metallurgy
35
103
100 %
Germany, Switzerland
11
Eurovia – Kameňolomy, s.r.o., Košice
mining
12,271
148
100 %
France
12
Eurocast Košice, s.r.o., Košice
metallurgy
11,767
not available
100 %
-
13
RWE IT Slovakia, s.r.o., Košice
IT services
11,391
176
100 %
Germany
14
Termostav – Mráz, s.r.o., Košice
construction and engineering
11,361
210
0%
-
15
HS HSV, s.r.o., Košice
construction and engineering
9,23
122
0%
-
16
Telegrafia, a.s., Košice
electronics
9,183
66
0%
-
17
elfa, s.r.o., Košice
education
8,25
not available
0%
-
18
Antik computers & communications, s.r.o., Košice
telecommunications
6,648
120
not available
not available
19
Izola Košice, s.r.o., Košice
construction and engineering
5,153
47
not available
not available
20
IS – Lom Maglovec, s.r.o., Košice
mining
4,765
not available
not available
not available
21
Stomix Košice, s.r.o., Košice
trade/construction materials
880
not available
not available
not available
22
Kremix Trade, s.r.o., Košice
trade/construction materials
655
not available
not available
not available
Source: Trend
8
Guide to Investment in KOŠICE
The city is the centre of second-most-important region in Slovakia based on its export
performance and GDP contribution to the national economy. GDP per capita is around 89%
of the national average in the long term, and has been showing significant yearly increases.
The city of Košice is home to 40% of the businesses located in the Košice region, and the most
popular location for new company registrations is the Košice I district. Industrial production
accounts for more than 10% of the total businesses registered in the city. However, the
increased significance of other sectors as contributors to the development of the regional
economy has been noted in recent years, including construction, transportation, IT and
telecommunications, finance and banking, wholesale, retail, and tourism.
Regional GDP in Slovakia in millions of Euros
Source: Slovak Statistical Office (2007)
The most important sector in the city is industrial production, creating over 5.1 billion Euros
in annual revenues and over 1.2 billion Euro of value added. This sector has attracted the
largest number of foreign direct investments in recent years, focusing mainly on the steel
industry, the automotive industry, electronics, IT, construction, and machine engineering. More
than 600 businesses have foreign capital involved, including, but not limited to, Siemens, U. S.
Steel, Getrag Ford, Rautaruukki Finland, Valeo Slovakia, Howe Slovensko, NESS Slovensko,
JOBELSA Slovensko, Kosit, VSE (RWE), Inžinierske stavby Košice, Eurovia-cesty, Tesco,
Optima Corporation and others.
Foreign investors established in Košice and the neighbouring area
Company
Country
Industrial sector
Východoslovenská energetika, a.s.
Germany
Energy distribution
VALEO SLOVAKIA, s.r.o.
France
Car industry- production of auto parts
Howe Slovensko, s.r.o.
Australia
Car industry- production of leather materials
NESS Slovensko, s.r.o.
USA, Israel, Holland
IT- software development, system integration
JOBELSA SLOVENSKO, s.r.o.
Spain
Production of textile
Kosit, a.s.
Italy, Slovakia
Public cleaning services, Office cleaning
U. S.Steel Košice, s.r.o.
USA
Mettalurgy
Inžinierske stavby, a.s. Košice
France
Construction Industry
Eurovia - Cesty, a.s.
France
Construction Industry
T-Systems Slovakia
Germany
IT and Software
Magneti Marelli Powertrain SLOVAKIA
Italy
Automotive parts
GETRAG FORD Transmissions Slovakia, s.r.o.
Germany
Car industry- production of transmission
SWEP Slovakia, s.r.o.
Sweden
Production of heat exchangers
Plastipak Slovakia, s.r.o.
USA
Plastic Industry- semi finished plastic parts
Kuenz - SK, s.r.o.
Austria
Machine engineering
Schelling Slovakia, s.r.o.
Austria
Production of cutting machines
JISIMEX, s.r.o.
Ukraine, Armenia
Food and Beverage Industry
Doppelmayr Slovakia s.r.o.
Austria
Production of cranes
Handtmann Slovakia s.r.o.
Germany
Car industry- production of alluminium
casting, ferrometals
EVANS s.r.o.
USA, Slovakia
Production of packaging materials
CROWN Bevcan Slovakia
UK
Production of cans for food
and beverage industry
Magneti Marelli Slovakia
Italy
Automotive parts
Source: VÚC Košice and PricewaterhouseCoopers
The investor’s guide
9
A Broad Look at Business in the Region
The number of foreign investors in Košice, as well as the total amounts invested, increases
every year, with improved infrastructure for investors, including the development of industrial
parks, better support from state and local authorities, and increasing availability of suppliers of
a variety of goods and services in the region.
Foreign investors in Slovak regions established with assistance of Slovak Investment
and Trade Development Agency (2002 – 2009)
FDI inflow to Slovakia in 2009 in thousands of Euros
Source: Slovak Investment and Trade Development Agency
Due to increasing internationalization and the global nature of businesses establishing
operations in the city, Košice has become internationally involved in various partnerships
and programmes with cities across Europe and the USA. A selection of partner cities is listed
below.
Source: National Bank of Slovakia
The Slovak Ministry of Economy, through its specialized agency for investment support –
Slovak Investment and Trade Development agency (Sario), assisted 45 foreign investors
who established projects in the Košice region from 2002 to 2009, including the companies
Brano-SK, CRW Slovakia s.r.o., Handtmann Slovakia s.r.o., Magneti Marelli Slovakia s.r.o., Ness
Slovakia s.r.o., SCA Hygiene Products s.r.o., SITEM Slovakia s.r.o., T-Systems Slovakia s.r.o., UFT
Production Slovakia s.r.o., VALEO Slovakia s.r.o., Yazaki Wiring Technologies Slovakia s.r.o., and
ŽP PRAKO s.r.o.
10
Wuppertal, Cottbus, Germany
Mobile, Alabama, USA
Uzghorod, Ukraine
Raahe, Finland
Sankt Peterburg, Russian Federation
Rzeszow, Katowice, Krosno, Poland
Verona, Italy
Miskolc, Budapest Hungary
Bursa, Turkey
Plovdiv, Bulgaria
Niš, Serbia
Ostrava, Czech Republic
Guide to Investment in KOŠICE
Important Facts about the City
Košice is a city with a rich and glorious history. From the time it was first mentioned in a written
document, almost eight centuries have elapsed. Its rich history was influenced by the fact that it
was located on an important trade crossroads.
In 1290, the city was awarded several privileges, including protection by city walls. In 1369,
Ľudovít the Great awarded the city a coat of arms, which was a modified form of the royal coat
of arms of the Anjou family. It is the oldest coat of arms document awarded to a city in all of
Europe.
With its economic and political influence, the city was one of the most important European
medieval cities. In the fourteenth and fifteenth centuries, Košice experienced a unique boom of
crafts and trade in metal, fur, and other commodities.
In 1657, Košice University was founded, and was converted in 1777 to the Royal Academy,
which by then included a printing facility. In the nineteenth century, the first manufacturing
activities were established, later transformed into factories. Before the split of Hungary, the
city was considered one of the most developed in the entire empire. Between the world
wars, the city assumed the role of industrial and administrative centre of the region. Energetic
post-war development of the city increased in 1960, when the giant metallurgical factory
Východoslovenské železiarne was established. This was the start of massive migration to
Košice from all of former Czechoslovakia. As a result, the population of the city and its area
rapidly increased. Presently, Košice is the second-largest city in Slovakia with a population of
234,596.
The average age of the population is 35.13 years. The municipal office is in charge of 40
elementary schools. A network of secondary schools consists of gymnasiums, specialized
secondary and apprentice schools, a business academy, and a school of health and arts. The
highest level of education is provided by nine faculties of the Technical University, four faculties
of the University of Pavol Jozef Šafárik, the University of Veterinary Medicine, and other
institutions. For more information, see the “Education” section of this guide.
The city lies in a mild climatic zone, with a continental climate and four distinct seasons. The
average summer temperature in July ranges from 15°C to 25°C, while in the coldest winter
month of January, average temperatures range from -5°C to 2°C. Average annual rainfall is
700.8 mm, and humidity is 76.1%. The annual average number of hours of sunshine is 2,053.20.
There is no significant tectonic activity or extreme weather.
The Hornád River flowing through the city from north to south, along with the Čermeľ River
and the Myslavský stream, represent the main water sources in the area. Water basins on the
Hornád and Ida Rivers are the main source of water for the city. In the south part of Košice,
there is an artificial public lake (Jazero). There is one source of mineral water (the former
Gajdovské spa).
It occupies an area of 244 square kilometres, at an altitude of 208 metres above sea level.
The population density is 964 people per square kilometre. The city is located in southeastern
Slovakia and it is close to the borders with Hungary to the south (20 kilometres away), Poland
to the north (80 kilometres away) and Ukraine to the east (90 kilometres away). Košice is a
base for regional governance, as a seat of the regional government and parliament, various
district offices, and state institutions, including a constitutional court. It is the political, economic,
and cultural capital of eastern Slovakia and the surrounding region. The city consists of 22
parts and includes four districts. It has played an important role within the wider region since
the Middle Ages thanks to its strategic location on medieval trade routes. Even in present times,
the city continues to enjoy great diversity. Its population consists of Slovaks, Germans, Czechs,
Hungarians, Ruthenians, Ukrainians, and other nationalities.
The investor’s guide
11
Business and Services
The transformation from a central to a market economy has had a major impact on the
development of business and services in Košice. Businesses and services have been the
driving mechanism of investment processes since the 1990’s. The transformation of locations
mainly on the city’s periphery to multifunctional shopping, and shopping and leisure centres,
adds to the attractiveness of these places and offers shopping possibilities for people from
the city and urban areas without placing a burden on the public transportation system of the
city. Shopping zones were constructed in three directions on the main entrance roads to the
city. The major shopping zones feature the shopping malls Cassovia, Optima, Kika, Hornbach,
bauMax-x, Asko, Mercury Market, and NAY Elektrodom, with a total size of approximately
125,000 m2. Another developed shopping zone is located at the northern entrance to the city,
featuring a TESCO hypermarket, bauMax-x and furniture, electronics, and garden shops, with
a size of approximately 50,000 m2. A third zone is located in the Nad Jazerom area, including
TESCO and various local stores, with approximately 10,000 m2 of commercial space. The new
shopping center Aupark is being built next to city centre. Former industrial zones have been
continuously transformed into warehouses and wholesale areas of various kinds, improving
their appearance and supporting other services and business in the city. These areas have a
high potential for further transformation and use. Many of them are located around the Hornád
River, and are now being turned into multipurpose buildings taking advantage of the proximity
of the downtown and the potential of the river. The most attractive is Hlavná ulica, which is
1.1 kilometres long, with two shopping malls with 10,000 m2 of commercial space and many
independent shops located in the old town. Commercial space in residential areas serves the
daily needs of their inhabitants.
banka Bratislava (www.koba.sk), VÚB Banka (www.vub.sk), Slovenská sporiteľňa
(www.slsp.sk), Tatra banka (www.tatrabanka.sk), and UniCredit Bank (www.unicreditbank.sk).
Modern office buildings are in the process of development around the downtown, including
Cassovar (www.cassovar.sk) and Business Centre Košice I, II and III (www.bck.sk). New
locations are being prepared for future development projects around the Hornád River, offering
the potential for further services, such as new business incubators and new administrative
centres.
There are about 15 car rental companies, including AVIS and HERTZ.
Košice is the commercial and economic centre of the region, with all the necessary business
and institutional infrastructure needed for running a business, including a wide range of
consulting services providing financial, technical, and legal advisory, as well as tax and
assurance advice. PricewaterhouseCoopers (http://www.pwc.com/sk/en/index.jhtml) has an
office in Košice, as do Deloitte (http://www.deloitte.com/view/sk_SK/sk/index.htm), and Ernst
& Young (http://www.ey.com).
Hand in hand with commercial development, accommodation and hotel services are on the
rise. There are six four-star hotels: Doubletree Hilton (www.kosice.doubletree.com), Boutique
Hotel Bristol (www.hotelbristol.sk), Hotel Bankov (www.hotelbankov.sk), Hotel Jalta
(www.jalta.sk), Hotel Yasmin (www.hotel-yasmin.sk), and Hotel Zlatý Dukát
(www.hotelzlatydukat.sk) offering business accommodation and conference facilities.
The city also has a variety of two- and three-star hotels.
Banking services are provided by regional branches of major banks in Slovakia, including
Citibank (www.citibank.sk), Volksbank Slovensko (www.luba.sk), OTP Banka Slovensko
(www.otp.sk), Československá obchodná banka v SR (www.csob.sk), Dexia banka Slovensko
(www.dexia.sk), Poštová banka (www.pabk.sk), Istrobanka (www.istrobanka.sk), Komerční
12
Guide to Investment in KOŠICE
Industrial Production
The industrial production sector is the highest contributor to total revenues in the region,
representing 6.9 billion Euros in 2008, with a steady annual increase.
Gross revenues in industrial production in thousands of Euros
The leading industry is metallurgy, accounting for more than 60% of the region’s industrial
production, and more than half of its exports. U. S. Steel Košice (www.usske.sk), the biggest
producer in the region and the city, an integrated steel company, is the largest employer and a
key player in this industry in the whole region, since 2000, building on the success of the former
VSŽ. The company describes its operations in Košice as a “successful partnership of Slovak
technical skills and knowledge with strong American plant management and market-oriented
business experience”. Other important regional players in the industry include Refrako (www.
refrako.sk), Reliningserv s.r.o., and Vulkmont a.s. (www.vulkmont.sk). There are a few smaller
metallurgy operations, mostly foundries of aluminium, zinc, and other metals, thanks to the fact
that Košice is a rich location for a variety of raw materials.
Companies in the metallurgy industry are associated with the Association for Metallurgy, the
Mining Industry and Geology of the Slovak Republic (Zväz hutníctva, ťažobného priemyslu a
geológie SR, tel: +421 2 48 29 13 16, email: zhtpg@zhtpg.sk, www.zhtpg.sk).
Source: Slovak Statistical Office (2008)
There are 257 industrial factories in the region, 114 of which are located in the districts of Košice.
Number of industrial factories in Košice districts
The automotive industry and machine engineering are well-developed industries represented
in the region by local as well as global producers. With planned production of 535,000 cars
in 2010 , the automotive industry is the leading industry in Slovakia. Košice has experienced
rapid growth in this sector. Many suppliers, including global brands such as Valeo, Getrag-Ford,
Doppelmayr, Magneti Marelli, Siemens Automotive, and Faurecia Leather decided to set up
their production facilities in the region. This industry also includes some local firms such as
Asko a. s., Metalprodukt s.r.o., Avin s.r.o., Mevako s.r.o., Praktis s.r.o., and SONaP s.r.o.
The Association of the Automotive Industry in the Slovak Republic (Združenie automobilového
priemyslu SR, www.zapsr.sk, tel: + 421 2 4364 2235, email: zapsr@zapsr.sk) provides
membership to companies in the automotive industry in Slovakia.
There are many companies involved in machine engineering, CNC processing, profiling and
shaping, and producing machine parts. The most important are Casspos a.s., Feromont a.s.,
Metalex a.s., Prompt s.r.o., Slovres a.s., Steeling s.r.o., KUENZ-SK, and Yasan Slovakia.
Source: Slovak Statistical Office (2008)
The investor’s guide
The electronics industry is mainly represented by production of electronic machinery,
connectors, cable parts, and electronic parts for the automotive industry. Skip s.r.o. (www.skip.
sk) produces photovoltaic cells, and is involved in the research and production of nickel-based
13
Industrial Production
chips for temperature scanning. ZTS VVÚ Košice a.s. is a producer of robot electronics, Electric
Power Slovakia - EPS s.r.o. produces lead accumulators, and there are plenty of companies
with various production programmes in the sector. The industry is supported by the Faculty of
Electronics and Information Technology at the Technical University.
Over 65 electronics and IT firms are affiliated with the Association of the Electronics Industry in
Slovakia (Združenie elektrotechnického priemyslu SR, www.zep.sk, tel: +421 2 55647884, email:
zep@zep.sk).
The production of plastic parts of various kinds has increased with the importance of the
automotive and electronics industries in Slovakia and around the region, and is represented by
the companies Ehlebracht Slowakei, Hi-Technology Mouldings Slovakia, LPH, and a variety of
local firms scattered around the area.
The chemical industry in the wider region is focused on the production of organic and
inorganic chemistry, polymer ingredients, paper, and cellulose. The largest producer is Chemko
(www.chemko.sk), established in 1952, and its daughter companies CHEMZA a.s., CHEMSTRO
a.s. and ZELMA a.s.
The mining industry has been traditionally oriented towards resources used in the construction
industry, such as gravel, dolomite, calcite, clays, and other materials.
The food and beverages industry has a strong tradition and local importance. Several key
facilities processing food and beverages of various kinds are located here, including meat
and fish processing, the production of diary products, juices, and much more. Syráreň
Bel Slovensko a.s. (www.bel-slovakia.sk) was established in 1954 and focuses on cheese
production, while Frucona a.s. (www.frucona.sk) has been producing beverages and juices
since 1972.
14
Guide to Investment in KOŠICE
Research and Development and Information Technologies
As an IT expert Olaf Baumann has a lot to do in Košice: he has upgraded a former state company, is currently building a
new company and teaching at the Technical University. “Both the city and its economy have grown a lot in the last few years
and I can very well image that I will stay here for a few more years.”
Originally Olaf Baumann’s task was to adjust IT systems – today he is managing a whole IT company. In addition, he is
involved in the modernization of education in the second largest city of Slovakia. In Košice he has found an environment
where he is facing new and new challenges – as a technician, managing director and as a visiting professor.
From a State Company to a Service Company
In 2002 Olaf Baumann came to Košice for one week to analyse the IT systems of a utility company. His employer – the German RWE Group – had
just bought part of the Slovak company at that time. After the analysis he was commissioned to transform the systems so that they would meet the
needs of the whole Group. At the end he outsourced the local IT department into a separate company and as a manager took over responsibility for
personnel.
“We have social responsibility here as well.” Olaf Baumann wants to give something back to his new country as well - to support the economy, which
will in turn benefit his own company too. In the last few years Košice has become a centre of IT services. In addition to RWE IT, employers such as
Siemens or T-Systems also need experts with good education. Together they have established the association Košice IT Valley and the city and two
universities are also participating in its activities. “For example we visit High schools and tell them about IT,” Olaf Baumann says. He himself taught a
course on project management at the Technical University during the last winter term. “Our offer was accepted with great enthusiasm and it was a
fulfilling task for me as well.” Thus Olaf Baumann is having a good time in Košice even after eight years. “I can very well imagine that I will stay here
longer.” Especially since he has already taken on another challenge: he is managing the company RWE IT Slovakia that is to provide IT services for the
Group in all of Europe. “At the end of 2010 we will have 230 employees,” he says.
Olaf Baumann
Managing Director
RWE IT Slovakia s.r.o.
The investor’s guide
15
Research and Development and Information Technologies
The region has much scientific and technical potential, and reinforcing its strong position in the
transfer of knowledge and information from academic institutions to industry. The entire region
is heavily focused on technical sciences, due to the academic and industrial background of the
region.
Employees in R&D in the Košice region
Expenditures for R&D by fields of science in the Košice region in Euros
Source: Slovak Statistical Office (2008)
Source: Slovak Statistical Office (2008)
Support for R&D and innovation activities in the Košice region is one of the key priorities of the
city, region, and central government. About 61% of expenditures for the sector are funded by
the state.
State-funded expenditures for R&D in the Košice region
Košice region
There are over 5,370 employees involved in R&D jobs across the region, including sole
proprietors (individually licensed entrepreneurs) and full-time employees. The majority of them
are involved in the field of technical sciences.
One of the main pillars of the Košice city development strategy for the future involves a
transformation into the city of innovation. Part of this ambitious programme involves support in
creating innovative structures and processes, and support for the inflow of new investments
that give high added value to the city. The municipality is transforming its communication
interface to provide more and more services online. Transformation of the full scope of
electronic services is expected to take place between 2008 and 2013.
Total expenditures (EUR)
2006
2007
2008
R&D expenditures total
29,602,469
30,694,682
29,528,745
Capital expenditures
3,380,269
2,405,696
2,606,452
State funds
2,470,324
1,472,681
1,969,129
Operating expenditures
26,222,200
28,288,986
26,922,293
State funds
16,139,812
17,487,419
16,142,733
Source: Statistical office of the Slovak Republic
16
Institutional Support for Research and Development and Information
Technologies
Key institutions providing research and development potential in the region represented by the
state sector are the SAV Košice/Slovak Academy of Sciences (www.sav.sk). University sector
is represented by the Technical University (www.tuke.sk), the University of Pavol Jozef Šafárik
(www.upjs.sk) and the University of Veterinary Medicine (www.uvm.sk), private sector and nonstate sector by R&D institutions are described below.
Guide to Investment in KOŠICE
SAV Košice is presently working on the use of nanotechnology in industrial
practice. The Technical University is focusing on core areas such as
car electronics, the finish and modification of metal plates, metallurgy of
coloured metals and steel, as well as a centre for the development of car
parts based on aluminum, magnesium, and their castings.
Institutes of Slovak Academy of Sciences:
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Centre of Experimental Physics
Centre for Mathematics
Neurobiological Centre
Centre for Material Research
Centre for Social Sciences
Centre for Parasitology
Centre for Zoology
Centre for Geotechnics
Centre for the Physiology of Farm Animals
Archaeological Centre
Other R&D facilities (private or non-state):
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BOOS - Biological substances – research in the area of organic chemistry and pharmacy
Kybernetika- applied sciences and new technologies
Edis – Research and development COOP for electronics and digital systems
SAM Holding- testing of new plastic materials
U. S. Steel- company R&D programme
Research Centre for Veterinary Medicine
Research Centre for Construction informatics
ZŤS – Research and Development Centre
The investor’s guide
The IT Valley Association is a joint initiative of universities, the public sector,
and leading Slovak as well as international IT firms established in eastern
Slovakia, that started in 2007. IT VALLEY Association Košice (www.
kosiceitvalley.sk) focuses on building a Centre of Excellence for Information
and Communication Technologies in the region and making the social and
economic environment more attractive, especially for young people. The
Association wants to contribute to building an information and knowledge
society in the region, creating a communication platform between public
administration, the business sector, and educational institutions that will
lead to the acceleration of the development of the IT industry in the region.
Its goal is to create jobs in the IT sector in Košice with high added value, to
support the sector with quality education and the opportunity for proper
qualifications, to contribute to implementing strategies for the development
of a “knowledge-based region”, to implement digital ecosystems, and to
stimulate the business environment for all kinds of innovations.
Its main activities include supporting student programmes, supporting the creation of virtual IT
firms, providing grants to student organizations specializing in IT, supporting students involved
in IEEE, formerly known as the Institute of Electrical and Electronics Engineers, Inc.
(www.ieee.org), organizing IT-related events, and performing research in the area of IT needs
in the region. Presently, the Association has 22 members, including the IT firms Cisco Systems,
Microsoft Slovakia, Ness KDC, Siemens Program and System Engineering, T-Systems
Slovakia, RWE IT Slovakia, Icos, Ixonos Slovakia, Telegrafia, elfa, Elcom, New Horizons, SORS
Research, VSE IT Služby, VSL Software, Procesná Automatizácia, Košice municipality
(Mesto Košice) and Regional government of Košice (Košický samosprávny kraj),
the Secondary School of Electronics in Košice, the Technical University, University of Pavol
Jozef Šafárik, and the Board of European Students of Technology (BEST).
An IT team formed by the University of Pavol Jozef Šafárik in Košice, the company Disig
a.s., and the Youth Parliament was recognized at the IT SUMMIT 2009 in September for
its project on modern European elections (the first simulation of electronic parliamentary
elections in Slovakia, the benefit of project testing the registration of voters, the process of
voting, the testing of voice applications, and the evaluation of results.)
17
Research and Development and Information Technologies
The Technical University in Košice operates a Division for Science and
Research (www.tuke.sk/tuke/science-and-research) with a department of
Science, Research and Doctoral Study, as well as an Office of Informatics
and an Office of European Projects. Their main activities include
coordinating science and research, providing methodical guidance for
the preparation of proposals, facilitating the spread of information, and
implementing progressive IT.
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fundamental research, applied research, or experimental development;
the development of feasibility studies;
industrial ownership protection; and
the temporary lease of highly qualified research and development staff.
For more information, see the “Slovak Government State Aid” section of this guide.
A Business and Innovation Centre (www.bicke.sk) has been operating in Košice since 1993.
The main purpose of this centre is to actively promote selected entrepreneurial projects
related to innovation in the region, and to provide long-term support to ensure continuous
development of the region, as listed below through following support:
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R&D incubator
›› providing office space with equipment and technology for clients of a high-tech
incubator; and
›› providing advisory services in processing business, financial, and marketing plans
involving an innovation project.
processing investment projects and sector analyses for firms focused on innovation;
looking for partners for creating clusters and partnerships using EU funds for R&D
programmes.
Research and Development Incentives of the Slovak government
Research and development incentives are part of the state aid programme designated for
legal entities and entrepreneurs, and are aimed at improving the quality of research and
development activities. Conditions for granting and using the incentives are stipulated in the
Act on Research and Development Incentives (“the Act”). Under the Act, the following areas of
research and development are supported:
18
Guide to Investment in KOŠICE
Transportation and Logistics
„Providing direct flight service between Bratislava and Košice is key for Danube Wings airlines. Not only because of volume
of passengers. Our goal is to offer passengers from Košice, connection flights through Bratislava to attractive destinations
in Europe.“
Danube Wings operates regular flights from Bratislava to Košice since the beginning of 2009. This service cuts the time necessary for travel between
Košice and Bratislava (Vienna) from 4 – 5 hours (individual car transportation, bus or train) to merely 50 minutes. Connecting Košice with Bratislava
allows passengers to use connecting flights from Bratislava airport to variety of European destinations.
Offering direct flights from Košice to Bratislava does not only make commercial sense, but it is strategic for the future of air transport development in
Slovakia. Košice is second largest city in Slovakia and quickly becomes an important regional business and commercial hub. Therefore, there is an
increased demand for fast, comfortable and reliable air service for business travelers from Košice to Bratislava and Western Europe.
We fly to Košice with modern, environmentally friendly and safe aircrafts ATR 72 with capacity of 70 passengers. As a captain with several years of
experience and thousands of flight hours on this type of aircraft, I can assure you, that Košice has never been closer to Bratislava and Vienna. Regular,
even daily commuting between the capital of Eastern Slovakia and Western Slovakia is conveniently serviced and represents a viable option for many
people now. For those, flying over Slovakia for the first time, I can promise beautiful scenery especially when passing near the High Tatra mountains
before approach to Košice airport or shortly after the departure.
Peter Galovič
CEO
VIP WINGS, a.s. operating Danube Wings airlines
The investor’s guide
19
Transportation and Logistics
Historically, Košice has been located on the crossroads of various trade and logistics routes
since the middle ages. Today, its importance as a transit city for the flow of goods north- and
southbound, as well as west- and eastbound has been reinforced. Its main advantage is
its geographical proximity to the borders of Hungary, Poland, and the Ukraine, as well as its
connections to western Europe through Bratislava, Vienna, Budapest, and Prague.
Distances to central European cities
City
Distance
City
Distance
Budapest
262 km
Warsaw
500 km
Bratislava
402 km
Vienna
504 km
Brno
468 km
Prague
675 km
Brief logistical facts:
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an international road transport corridor:
›› international road connections including E50 towards the Ukraine, E71 towards
Hungary, and E371 towards Poland;
›› construction of the R4 expressway from Košice to Hungarian borders started in
August 2010 with planned completion in 2013;
›› direct motorway route towards Budapest, Bratislava, and Vienna starts in Miskolc
(Hungary), located 70 km south of Košice.
a dense network of railway routes:
›› international connections, including a wide-gauge line to eastern Europe (the Ukraine
and Russia) and an AGTC line connecting Hungary and Poland.
regular and charter flight transportation:
›› Košice International Airport, located south of the city, served over 352,000
passengers in 2009, including flights to Bratislava, Vienna and other European
destinations – it also handles cargo transportation; and
›› the airport has been privatized and is now operated by a daughter company of
Vienna Airport.
20
Distances to western European cities
City
Distance
City
Distance
Munich
884 km
Rome
1,590 km
Berlin
1,140 km
Amsterdam
1,655 km
Frankfurt
1,210 km
Paris
1,997 km
Geneva
1,509 km
London
2,117 km
Brussels
1,550 km
Barcelona
2,340 km
Distances to eastern European cities
City
Distance
City
Distance
Kiev
850 km
Moscow
1,005 km
Guide to Investment in KOŠICE
Road Infrastructure Map
Source: Slovak Investment and Trade Development Agency
The investor’s guide
21
Košice on a Tourist Map
The internationally known tourist guide Lonely Planet describes Košice as follows:
“People just naturally seem to congregate along the long town square where café terraces
line the streets and monumental architecture fills the centre. Buildings range from 12th-century
Gothic to 20th-century Art Nouveau. Crane your neck to admire the massive Cathedral of
St Elizabeth, before you head underground to explore the ancient city’s archaeology. Come
evening, gather with the locals on the benches near the musical fountain, stop in a café for a
drink or attend a performance at the State Theatre. Slovakia’s second city has a real sense
of cohesion and community in the old town, which is missing from the capital.”
The members of the cluster are motivated to change Košice from a business to the long stay
destination. The association will create a comprehensive offer for the visitors with focused
on visits during prolonged weekends. An offer managed in this way and promoted on a
professional level, will be introduced in the market in May 2011 during the Ice Hockey World
Championship. A professionally managed visitor’s service is that when the hockey fan will visit
Košice again. This will create basis for visiting Košice as the touristic destination in 2013. In this
year, Košice will be a holder of an important marketing brand – the European Capital of Culture,
which is expected to bring the change of visitors structure: from visitors from neighboring V4
countries to visitors from West European countries.
City Attractions
The current number of visitors in the Košice City is 142,000 per year out of which forty-one
percent comes from other countries, in terms of overnights is 280,000.
The visitors have been coming from the surroundings countries such as the Czech Republic,
Poland and Hungary as well as from Germany, Austria and the United States of America.
They are mostly business travelers and participants of the business meetings, seminars and
congresses who spend three days (two nights) in Košice. There is also a large group of transit
travelers who stay in Košice for one day. Nowadays, the long-stay tourism is not developed in
Košice and in Europe, it is not much known as a target tourist place – touristic destination.
A high standard experience gastronomy offered by the associated hotels and restaurants
is the first product introduced in the year 2010 to attract the visitors. Aimed at increasing the
rate of visits to the city a typical drink of Košice called “Košice Gold” was mixed during the
barman’s show on the second weekend of September. Košice will seek to attract visitors by
the experience gastronomy and hot cocktails at “Košice Christmas” during the Advent. During
Christmas, “Andy’s Card” will be put on sale, that allows drawing interesting discounts on meals
and drinks for the visitors of Košice. In this way, the product ”Andy Warhol” will be promoted in
the streets of Košice which will be connected with the presentation of Andy Warhol’s works.
For more information on Košice touristic destination and its news, please follow this link
www.visitkosice.eu
Košice Tourism Cluster
In June 2010, for the purpose of the locating Košice on the tourist map of Europe, the first
Slovak urban-type tourism cluster was established by the Košice City and other entities
involved in tourism. This association joins 28 entities, among others, leading four star hotels and
restaurants in the city as well as the Košice Airport and the non-profit organization Košice 2013.
It is the first local destination management organization that covers marketing of the Košice
City towards a visitor and coordinates the activities aimed at improving visitor service and
comfort in Košice.
22
Guide to Investment in KOŠICE
Healthcare Services
Košice is a leading provider of healthcare in the region, with many facilities providing in-patient,
out-patient and diagnostic care. Many of the facilities have regional importance. Major forces
on healthcare service providers are privatization and restructuring.
Leading and the highest quality health care services are provided by the first private hospital in
Slovakia, Hospital Košice Šaca. It provides general hospital services with jurisdiction over tens
of thousands of people, including employees of U. S. Steel. It is part of the rescue system of
U. S. Steel. It provides more than 700,000 treatments yearly.
Nemocnica/Hospital Košice Šaca (www.nemocnicasaca.sk)
›› established in 1959, operating on a private basis since 2003
›› features 379 beds, 950 employees
›› ISO 9001 and 14001 certified
›› annual number of diagnosed patients is over 415,000
Other general healthcare providers in the city include:
Fakultná nemocnica Louisa Pasteura/College Hospital of Louis Pasteur (www.fnlp.sk)
›› established in 1924
›› transformed from state ownership, second largest hospital in Slovakia
›› operates the Institute for Heart Diseases
›› capacity of 1,616 beds, 3,700 employees in two facilities
›› reconstructed 2003-2007
›› partners with the Faculty of Medicine at the University of P. J. Šafárik
Detská fakultná nemocnica/Children’s College Hospital (www.dnkosice.sk)
›› established in 1966
›› capacity of 240 beds
›› 50 specialized out-patient centres
Letecká vojenská nemocnica/Military Hospital of Aeronautics (www.lvn.sk)
›› established in 1858
›› 35% of the services provided to the army personnel
›› provides certifications and health appraisals for pilots on a national basis
Železničná nemocnica s poliklinikou/Railway Hospital with Clinic (www.zzke.sk)
›› established in 1955
›› has various specialized healthcare services
›› has the most modern technology for magnetic resonance imaging in Slovakia
There are specialized healthcare facilities with regional importance, such as Inštitút nukleárnej
a molekulárnej medicíny/Institute of Nuclear and Molecular Medicine (www.inmm.sk),
Východoslovenský onkologický ústav/Eastern Slovakia Oncological Centre
(www.vou.sk), Východoslovenský ústav srdcových a cievnych chorôb/Eastern Slovakia
Centre for Cardiology (www.vusch.sk), and Vysokošpecializovaný odborný ústav geriatrický
sv. Lukáša /Highly Specialized Geriatric Institute of St. Lucas (www.gckosice.sk). There are nine
public and two private policlinics. The wide variety of private services and clinics throughout
the city include:
Procare (www.procare.sk), Ergomed (www.ergomed.sk), Klein & Gefferth
(www.nestatnapoliklinika.sk), Lucanas (www.lucanas.sk), Gyncare (www.gyncare-sk.com),
Konex Medik (www.konexmedik.sk), Avilab (www.avilab.sk), and Cumulus
(www.cumulus.eu.sk).
Dental care with English speaking staff is provided by Dentálne centrum/Dental Centre
(www.dentalnecentrum.sk) DDDental (www.dddental.sk) and by other dentists around the city.
The investor’s guide
23
Human Resources
„Dynamics of the Košice region lies not only in qualified and motivated workforce, developed educational system,
interesting culture and geographical location of the city in Central Europe but also in its ability being flexible towards foreign
direct investment.”
The Košice region possess academically functioning system, industrial platform, flexible municipal authorities and labor that create your future.
Presently existing business and industry clusters in the Košice region prove a functioning cooperation of foreign and domestic companies.
The workforce in Košice is diverse, flexible, motivated and keen on further development. The current year still proves that occupations in industries
such as electro-technical, mechanical engineering, metallurgy, information technology and chemistry are still on the top of most demanded jobs in
the region. There has been a significant increase in open positions in economics. Existing high schools and universities provide sufficient number of
qualified workers in different economic spheres, together with young people eager to work.
Katarína Bittalová
HR Expert
Lugera & Maklér, Košice
24
Guide to Investment in KOŠICE
The main characteristics of the population in the Košice region are a continuous increase in
qualifications, a high level of interest and motivation in work, a readiness to adopt new cultures
within the local one and, last but not least, workforce mobility focused on job opportunities.
A total of 35% of the economically active population in the Košice area found jobs outside the
region. This number represents potential active employees for future newly created jobs in
the region (source: Inštitút Zamestnanosti). A sufficient number of qualified workers in different
economic spheres, together with young people eager to work, make the workforce very
diverse.
English and Hungarian are the most common foreign languages spoken by the workforce.
Both languages are used as the second language in companies in the region. Other
languages used for work or other purposes are German, French and Spanish (source: Trend).
A variety of language schools, educational institutes, city-organized events, and private lessons
support inhabitants speaking and using these languages at work or during their free time.
“If Košice and eastern Slovakia is to attract investors, it must continue to develop possibilities
for improving the population’s language skills” (General Manager, German software company,
Košice branch).
Unemployment rate – the highest unemployment rate was registered in January, 2010 as
a highest peak result hit by financial and economic crisis. The trend has been decreasing
throughout the year. As shown in the pie chart, the Košice region has the third-highest
unemployment rate in Slovakia.
The average salary in the Košice region, and its rate of annual growth, is lower than the national
average, which is recognized as a competitive advantage and a significant benefit by many
investors in the region. The average nominal monthly salary in the first quarter of 2010 in
Slovakia was EUR 741,50, while in Košice it was EUR 673. For comparison, the average salary
in the Bratislava region (western Slovakia), based on the same methodology, was EUR 962.20,
in Banská Bystrica (central Slovakia) it is EUR 587, and in the Prešov region (eastern Slovakia, a
neighbouring region) it is EUR 607 (Source: Slovak Statistical Office).
Regional ratio in % on total unemployed applicants in August 2010
Source: Slovak Statistical Office (2010)
The investor’s guide
25
Human Resources
Gross monthly average salaries in Košice region - 1999 to 1st Q 2010
Average salaries in Eastern Slovakia in Euros - basic salaries, gross monthly
Source: Statistics.sk, Lugera & Maklér - Salary Benchmarking
Source: Statistics.sk, Lugera & Maklér - Salary Benchmarking
There are 20.000 various businesses in Kosice at the present time. There is foreseen that
such amount of employers will increase and thus it is forecasted that expectations on people
qualification will grow. City continues to provide supportive environment to be considered
as global – international city where factors as educated workforce, competitive business
environment and strategic logistical position represent attractive future for investors.
26
Especially trend within information technology field presently increases and thus shows good
foundation and potential for future. The forecast indubitably shows that added-value given into
cooperation between IT sector and city/state streams will be also in the future considered as
the conductive. (source: Trend).
Guide to Investment in KOŠICE
Quality Education
„Excellent possibilities to connect theory and practice in form of various kinds of part-time jobs enable young people to get
a job even while studying and companies to create and develop their future employees according to their wishes.”“
Recent times call for everyday contact with different parts of information and communication technologies. Development of and support to that field,
which belongs to the fastest growing ones in the world context, have become one of the strategic goals of both the city and the region. The idea
of establishing Kosice Silicon Valley has motivated many experts and professionals to create a strong community able to support information and
communication technologies of global companies.
Many international companies have used the potential of human resources of the region with a high level of technical education, while establishing
their branches striving for providing high quality at an excellent price. Certainly, this has been also supported by the region’s excellent location with the
possibility to make use of a high volume of human resources from former Eastern Europe.
Close connection between the IT companies and the universities and colleges that produce a few hundreds of graduates specialized in information
and communication technologies every year enables the graduates to further grow professionally as well as helps those professionals, who in the
past travelled for such attractive job abroad, when reestablishing their lives back home. Excellent possibilities to connect theory and practice in form
of various kinds of part-time jobs enable young people to get a job even while studying and companies to create and develop their future employees
according to their wishes.
At present, companies engaged with information and communication technologies employ several thousands of workers, which has also resulted in
a sustainably growing interest of students in this area. Continually increasing quality of students and consequently of employees support professional
competitiveness of the region against the other regions of Slovakia and Europe..
Jozef Ondáš
Managing Director
T-Systems Slovakia s.r.o.
The investor’s guide
27
Quality Education
Košice is building on a strong history in education. In fact, the first
university was founded in Košice in 1657, and the oldest secondary
school in central Europe specializing in machinery was founded here in
1872. A dense network of schools in the city provides quality education
from pre-school and elementary through secondary, up to university
and doctoral studies.
Pre-school and elementary education
There are 74 pre-school facilities in the city, of which 65 are public ones,
with 6,400 children attending. On average, there are about ten children
for each teacher in this category.
There are about 20,000 children in 900 classes attending elementary
school, typically aged 6-15. Students have access to school clubs, and
the majority of schools offer special programmes in mathematics (28
classes), foreign languages (308 classes), the arts (11 classes), technical
education (3 classes), and sports (17 classes). A complete list of
elementary schools is on the website: www.skolakosice.sk.
Secondary Education
students. The total number of students attending secondary schools in
Košice is about 24,000.
Košice offers a wide range of schools in each category. In the
category of vocational schools, students can choose specializations in
telecommunications and post, transportation, construction, metallurgy,
agriculture, or food and beverages.
At the level of professional schools with higher level specializations,
there are business and hotel academies, and health academies, as
well as technically oriented schools in machinery, transportation,
electronics, metallurgy, the arts, construction and geodesy, agriculture,
and veterinary medicine.
Košice has 18 gymnasiums with 257 classes, offering a wide range of
specializations, preparing students for university education.
Many of these schools combine specializations or offer enriched
programmes combining a major specialization with a minor in
foreign languages, science, sports, and other subjects. There are
special schools offering assisted education for physically or mentally
challenged students.
Košice offers a wide range of free-time centres and schools in nature.
Compulsory education includes completion of at least one or two
grades of secondary school (ten years total, including primary school).
However, programmes are usually four years long, and generally
oriented towards preparing students for jobs in specific areas
(secondary vocational schools and associated secondary schools),
for a specific profession with a higher level of certification and the
possibility of university education (professional secondary schools),
and includes those specializing solely in preparing for university studies
(gymnasiums). Schools can be freely chosen. However, certain schools
may hold entrance examinations to test the specific abilities of potential
28
University Education
University education in Slovakia is attained by completing a bachelor’s
or equivalent programme, a master’s, engineering, or equivalent
programme, or a doctoral or higher degree programme. Only students
with a Slovak secondary diploma (maturita) or a foreign equivalent
obtained after four years of secondary studies, and after passing
examinations, can attend university. Additionally, many universities hold
Guide to Investment in KOŠICE
entrance examinations to assess the students‘ abilities as part of the
acceptance procedure. There is no tuition fee for public universities,
except for international (non-EU) students (approximately EUR 2,000
to EUR 8,000 an academic year). The academic year consists of two
semesters, and starts on 1 September and ends on 31 August. The
standard European credit system (European Credit Transfer System –
ECTS) was introduced in 1998.
There are three public universities and one private higher education
institution in Košice. A few universities have branches here as well (such
as the University of Economics in Bratislava, Faculty of the National
Economy, and the Catholic University in Ružomberok, Faculty of
Theology).
The Technical University in Košice (www.tuke.sk) has around 16,000
full-time undergraduate students and almost 900 instructors, with
about the same number of research and administrative staff. It serves
a wide range of educational needs, not only in eastern Slovakia, but
throughout the country and central Europe, offering programmes at
the following faculties:
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The University of Pavol Jozef Šafárik (www.upjs.sk) has over 8,000
students and 1,147 employees, including 523 instructors. The university
specializes in quality research and development projects, and offers
programmes at the following faculties:
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The Faculty of Public Administration
The Faculty of Philosophy
The Faculty of Medicine
The Faculty of Law
The Faculty of Biology
The University of Veterinary Medicine (www.uvm.sk) was established in
1950 and offers modern education at the following faculty:
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The Faculty of Veterinary Medicine
The Faculty of Economics
The Faculty of Mining, Ecology, Management and
Geotechnologies
The Faculty of Electrotechnics & Informatics
The Faculty of Arts
The Faculty of Metallurgy
The Faculty of Aeronautics
The Faculty of Architecture
The Faculty of Mechanical Engineering
The investor’s guide
29
A Wide Variety of Investment Opportunities
Multipurpose Zones - Brownfields
Multipurpose zone ŤAHANOVCE- MAGNEZITÁRSKA A AMERICKÁ TRIEDA
›› Size of the area: approximately 620,000 m2 + 250,000 m2
›› Originally a huge industrial zone of a metallurgy firm and smaller firms located alongside
the Hornád River and the railway, flat land
›› Potential for public service use of municipal or regional importance, housing/high-rises
and parks – suitable for administration, hotels, shopping centres, commercial use, schools,
and playgrounds
›› Directly connected to the city transportation system and the Košice-Prešov motorway
feeder, as well as an integrated transportation system using the railway hub
›› Land is under private ownership
Multipurpose zone behind the HORNÁD RIVER
›› Size: approximately 570,000 m2
›› Originally an industrial zone with a flat surface and an area for the University of Aviation
›› Potential for public service use of municipal or regional importance in combination
with housing in enclosed courtyards with greenery, away from the main transportation
corridors
›› Directly connected to the city transportation system and the motorway feeder
›› Close proximity to the railway station
›› Potential for the use of the river banks as relaxation areas
›› Land is under private ownership
Circular centre TERASA
›› Size: approximately 140,000 m2
›› Attractive area west of the historical downtown (within walking distance), connecting the
old town with the new Košice – Západ centre
›› project of a new centre of the city for the construction of public service facilities – retail,
services, administration, culture, accommodation, housing and parks
›› A regulatory plan has been prepared for this zone
›› City ownership is approximately 50%, a public tender is being prepared
30
Multifunctional centre KASÁRNE MALINOVSKÉHO
›› Size approximately 40,000 m2
›› Former military barracks from the nineteenth century, currently unused
›› The area is on the border of the city pedestrian zone, about a five-minute walk from the
centre of the old town
›› Potential for multipurpose use
›› Public services in the area of culture, public institutions, leisure zones with greenery, not
suitable for housing
›› Public transportation is available
›› Land is under city ownership, and is being rented out to a developer that has already
been chosen
Multipurpose zone VŠA
›› Size: approximately 120,000 m2
›› Originally planned as a sport centre, currently being rebuilt to be the largest multipurpose
centre linking the original sport functions with commercial functions
›› Land is under private ownership
Industrial Zones - Greenfields
Industrial Park Pereš
›› Total size: 1,900,000 m2
›› Strategic location at the south entrance to the city, 4 kilometres from the old town
›› Potential for high-tech industry, research and development park, business and information
zone for business start-ups, banking, logistics, and services related to air transportation
›› The area is near the Košice international airport, which provides passenger and cargo
transport
›› Direct access to the E 571 route Košice-Bratislava and to the feeder to Hungary, as well as
to the Košice-Prešov motorway and on to Poland, or eastbound towards the Ukraine
›› Direct access to public transportation
›› Major residential areas within two or three kilometres
›› Established foreign investor VALEO (size: 6,000 m2)
Guide to Investment in KOŠICE
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Part of the area of the IMMOPARK industrial park with a size of 650,000 m2 is owned by
IMMORENT and is being prepared for investors
Technical infrastructure is being prepared for construction
Industrial zone BOČIAR- INTERPORT
›› Area approximately 6,000,000 m2
›› The area is located in the southern part of the city, 14 kilometres from the city centre,
between U. S. Steel and existing manufacturing areas in the southern part
›› Advantage of two railway systems crossing, standard and wide gauge
›› Good potential for access to major international road corridors and motorways
›› Part of the area (approximately 150,000 m2) is planned for combined transport
terminal use
›› Potential for logistics and industrial use
›› Land is privately owned
Business Centres - Office Space
Košice Aupark Tower
›› Located downtown
›› 11,560 m2 class A office space availability
›› 1,200 parking spaces
›› Currently in construction with planned completion in 2012
Business Centre Košice
›› Located downtown
›› 10,000 m2 class A office space availability in the newly completed Phase II
›› Underground garage spaces available
Cassovar Business Center
›› Located downtown
›› 31,000 m2 class A office space availability
›› Capacity for 2,500 employees
›› 500 parking spaces
›› Phase I of the project completed, Phase II completion is planned in 2011
The investor’s guide
Bastion
›› Located downtown
›› 8,972 m2 class A office space availability
›› 154 parking spaces
›› Planned completion in 2011
City Hotel Košice
›› Located downtown
›› 12,000 m2 class A office space availability
Tourism
Leisure and sports area ANIČKA
›› Size: approximately 300,000 m2 in a quality environment
›› Situated in the northern part of the city, linked to the traditional leisure area Anička on the
Hornád River, existing residential area and sport zone
›› Long-term designation of the area for sport and leisure with local and regional importance
(amusement park, thermal swimming pools, catering, and sport)
›› Good options for existing communication infrastructure and roads
›› Access to technical infrastructure
›› Privately owned land
Housing
Housing complex SÚBOR ŤAHANOVCE IV- V
›› Size approximately 250,000 m2
›› Northern part of the city – the area has a mild slope, road access, technical infrastructure
access, and an existing communication system
›› Designated for high-rise and low-rise residential housing, family houses and basic public
infrastructure, greenery
›› Privately owned land
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A Wide Variety
of Investment Opportunities
Housing complex OBYTNÝ SÚBOR. GIRBEŠ ›› Size: approximately 140,000 m2
›› Location in the northwest area between the residential area KVP, Myslava and a park
›› New area for development in natural setting with potential for housing and public
infrastructure as well as public green areas, family houses, retail, culture, education and
tourism
›› Access to existing communication systems
›› Privately owned land
Housing complex HERINGEŠ
›› Size: approximately 140,000 m2
›› Located in the eastern part of the city, south of the residential area on a hill with a view of
the town and nature on the eastern side
›› New area for development surrounded by nature
›› Potential for housing and public infrastructure as well as public greenery, family houses,
retail, culture, education, and tourism
›› Access to existing communication systems, future Access to the D1 motorway
›› Privately owned land
Housing complex KRÁSNA
›› Size: approximately 400,000 m2
›› New area located in the southeastern part of the city following the low-rise residential area
Krásna nad Hornádom
›› Suitable mainly for residential and public infrastructure
›› Access to existing roads, future access to the motorway feeder
›› Future development of the area northbound (the “East City” part of Košice) up to the
planned residential area Heringeš
›› Privately owned land
32
Košice
- European Capital of Culture 2013
Košice 2013 – Investment projects
In 2008, city of Košice was awarded the title
European Capital of Culture 2013, based on its
project Košice INTERFACE 2013. Since 2009,
this project has been implemented by newly
established non-profit organization Košice
2013 in cooperation with City Council and other partners. Project is focused on sustainable
development and transformation led by culture. Presently, it is one of the most important
projects of the city. Total budget of EUR 60 million, has been allocated for the project by Slovak
government from Regional operational program of European Union structural funds. It is
planned to be used by the city of Košice, Košice regional government region, ministry of culture
and other partners for the following projects:
Kasárne/KulturPark
This project involves transformation of former military warehouses located at Kukučínova
Street in Košice. It includes various buildings built at the end of 19th century located in historical
park of significant value, in close proximity to the city centre (5 minutes walk). Within the project,
the municipality plans to create space for various missing cultural functions while preserving
the contemporary nature of the site of high historical and architectural value. The overall
concept at the current stage plans with three functional buildings on the site- a central building
and two buildings bordering the western side of the campus. Planned investment value: EUR
20 million. Kasárne/Kulturpark will include the following:
Cultural Centre
The central facility with its architecture predetermines the opportunities of its use. Several halls
on the ground floor allow organizing cultural activities for a relatively wide audience, while
office premises and smaller halls, which are located in the building, offer opportunities for the
activities of various artistic bodies, non-governmental organizations,, or companies. In this way,
production may occur directly on site and, most importantly, in cooperation with its residents.
Guide to Investment in KOŠICE
Creative Incubator
The incubator type of support is one of the mechanisms for the
sustainable development of creative industries of the economy of
the city. The purpose of the incubator is to support organizations
and companies dealing with different types of creative activities with
the objective to develop their spatial concentration and subsequent
synergy.
Exhibition spaces
Includes multifunctional exhibition and conference premises offering
variable use of both commercial and non-commercial character in
relation to other campus functions.
Spots
This project deals with transformation of former heat exchange
stations to the community centers, places for creation and residencies.
The heat exchange stations are situated in the suburbs outside
of the city center. Spots is the key project dealing with community
development in the whole Košice 2013 concept. Planned investment
value: EUR 1.5 million.
Old swimming pool
Project will include reconstruction of old swimming pool and connect
sports with cultural and recreational functions. Planned investment
value: EUR 5 million.
The investor’s guide
Amphitheatre
Project is about reconstruction of an existing amphitheatre and
its transformation into a multipurpose hall for various cultural and
conference events. Planned capacity after reconstruction is 3000
- 4000 seats, which fulfills the needs of the city in this area. Planned
investment value: EUR 8 million.
City park and a park Moyzesova/Komenského
Parks are playing very important role in the city, therefore project
counts with revitalization of two most important of them. Planned
investment value: EUR 3 million and EUR 1 million.
City is also planning additional investment projects such revitalization of
the St. Elizabeth cathedral (planned investment value of EUR 5 million),
reconstruction of manor house in Krásna (planned investment value
of EUR 2 million), in cooperation with private initiatives establishment of
the House of Authentic Culture as well as the Blue Park (area for water
sports located at Hornád river).
Košice regional government has allocated a budget of EUR 10 million
for additional activities, including project of the Island of Culture and
investment activities of Terra Incognita.
Ministry of culture allocated EUR 5 million for the reconstruction
of manor house in Budimír, Small scene of the state theater, State
scientific library and the Scientific and technical center for children and
youth of Slovak technical museum.
33
Public Private Partnership Projects
The public-private partnership (PPP) market is developing intensively in the Slovak Republic.
Despite the difficult financial market conditions in 2009, 1 billion Euro R1 expressway PPP
project reached financial close and private partner started this 52 km long road construction.
Many municipalities are considering PPPs for the construction and refurbishment of stadiums,
administrative buildings, parking garages, and more, Košice is no exception.
Integrated Transport System
It has been a long time, since the city of Košice was seeking to solve the requirements of the
passenger transport through an integrated transport system (ITS) project.
The philosophy of an ITS in Košice has been based particularly on the quality of services
within the entire integrated transport process. The quality should be embodied in the new
transport terminals. Their construction has been one of the present days’topical themes. The
ITS project includes construction of five terminals for the public passenger transport within
the transport infrastructure of Košice. An application has been filed with the Slovak Ministry
of Finance for the provision of consulting and financial support from the technical support
scheme to private and public partnerships, for the construction of two of the terminals: terminal
Košice – East and terminal Košice – North. The project plan has been approved and the
local government of Košice signed a contract with the Slovak Ministry of Finance regarding
preparation of the PPP project.
Košice – East Terminal
The East Terminal should be built in the centre of the city, within the location of the central
railway station and bus station. A tram-train system will lead to the terminal. The system will run
as a direct connection between the region and the city. At present, approximately 43 thousand
people passes through this place and almost a twofold increase is expected. The terminal
should be built on the area covering 12 thousand m2, and a two storey building having useful
area of 10 thousand m2 will be part of it.
Košice – North Terminal
The terminal is planned to be built in the North part of the city, close to the railroad from Košice
to Bratislava and the tramway from the city centre to Ťahanovce housing estate. It will be
34
accessible from the city quarter Džungľa, Mier, Dargovských hrdinov housing estate and
a zone that is planned to be developed in old magnesite plant area. The location of North
terminal is very advantageous: it is situated on the main root to/from Košice, in a catchment
area, where almost 50,000 people live. The terminal is planned to cover approximately 10
thousand m2.
Both facilities should provide travellers with the linkage between several types of passenger
transport, including individual transport. The new infrastructure should also include buildings of
the terminals, under-passes and crossings between the terminals, public transport stops and
passenger platforms, public parking, parking areas for buses, passenger cars, taxis and bicycles.
Besides comfortable and safe changes from one type of transport to another, a new attractive
zone for the public and commercial services will be developed. The purpose is to improve the
overall travelling standards and comfort of the travellers. In addition to the services related to
transportation, such as ticket selling points and information centres, the facilities will include
shopping malls, restaurants, fast food services, public services, such as post-office, etc. All
premises should be interconnected with a barrier free access. Special focus will be placed on
the overall architecture and aesthetic design of premises.
The local government decided on financing the terminals through a public-private partnership
project (PPP). Experience of other countries show that this type o co-operation is mutually
advantageous. So far, in co-operation with the Slovak Ministry of Finance a project plan
was prepared, and a technical and economic study is now being drafted. As soon as it is
completed, the local government deputies will have to decide on further steps. If approved, the
construction of the pilot ITS terminals can be launched.
Integrated Transport System in practise
The Košice ITS project focuses on ensuring high quality transport services using the railroad
infrastructure in the city. Financial support amounting to EUR 36.48 billion is planned for its further
development. When completed, the railroad network will include Slovak Railways’ tracks and the
tracks laid in the city. The ITS project will also include introduction of modern means of transport,
particularly those for the tram – train system. At present, work is in progress relating to drafting
the technical and economic study and preparation of the project. This study has recently been
presented to the European Commission representatives in Brussels, with very positive response.
Guide to Investment in KOŠICE
Slovak Government State Aid
Are you considering implementing an investment project in Košice, or
expanding or changing your business activities, and need financial support?
Maximum amount of investment incentives in Košice is 50% of eligible costs of the investment
project.
The maximum amount of state aid in the Slovak Republic
A large pool of state incentives and European Union funds is available to the
public and private sectors.
Investment Incentives
Investment incentives are aimed at encouraging investments in disadvantaged regions and in
creating new jobs in Slovakia. Individuals and legal entities that are authorized to do business
in Slovakia, and whose investment activities and projects meet the conditions of Act 561/2007
Coll. on Investment Aid and on Changes and Amendments to some Acts (“the Act on
Investment Aid”) are eligible for investment aid.
If an investor meets the conditions set out for state aid above, it can apply for
one of the following types of state aid:
1. a subsidy for the acquisition of non-current tangible or intangible assets;
2. income tax relief;
3. a contribution for new jobs; and
4. a transfer of intangible assets or replacement of intangible assets at a
price lower than the general value of the asset.
The investor’s guide
Source: Ministry of Finance of the Slovak Republic
Maximum percentage of incentives from eligible investment costs for a project in
Košice
Size of the company
Percentage
Large companies
50%
Middle-sized companies
60%
Small companies
70%
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Slovak Government State Aid
Conditions for granting investment incentives to the strategic service centres include:
1.Industrial Production
Investment projects in industrial production that include machine, automotive, woodprocessing, chemical, and pharmaceutical and other industries can be supported by
investment aid, provided they meet one of the major condition:
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the building of a new business
the expansion of an existing one
the diversification of production to new or additional products
radical change in the production programme of an existing business
the purchase of a business, which would go bankrupt.
Minimal amount of eligible investment costs (in millions EUR)
until 31 March 2009
and from 1 January 2011
from 1 April 2009
to 31 December 2010
BELOW or EQUAL to the average in Slovakia
26,56
13,28
ABOVE the average in Slovakia (by less than 50%)
13,27
6,635
At least 50% ABOVE the average in Slovakia
6,64
3,32
2.Strategic Service Centres
A technology centre is a place in which the beneficiary performs activities that result in an
improvement to or change in the products, production processes and technology used in
the production process, such as the improvement of products, research and development,
innovative activities, creative centres.
Conditions for granting investment incentives to the technology centres include:
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A strategic service centre is a place from which the beneficiary provides its services with
a high added value in support of the employment of qualified experts in centres for the
development of IT programmes, technical solution centres, centres for the repair of top
technologies, customer support centres and centres of multinational firms.
36
the construction of a new strategic service centre or
the expansion of an existing one,
acquisition of non-current tangible and intangible assets valued at no less than EUR 1,162
million, while at least 50% must be covered by the entity’s equity or own sources if an
individual is concerned;
at least 30% of the total number of staff must have a university education.
3. Technology Centres
There are special restrictions on state aid in the steel industry and for synthetic fibre production.
Unemployment rate in the district
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the construction of a new technology centre or
expansion of an existing one;
the acquisition of non-current tangible and intangible assets valued at no less than EUR
1,328 million, while at least 50% must be covered by the entity’s equity or own sources if
the entrepreneur is an individual;
at least 60% of the total number of staff must have a university education.
4.Tourism
In accordance with the Act on Investment Aid, comprehensive tourism centres can also be
supported. These include centres that offer at least three tourism-related services, such as
accommodation, meals, and additional services – skiing, swimming, sporting and relaxation,
cultural and sight-seeing services – in a single location.
Guide to Investment in KOŠICE
Conditions for the provision of investment incentives in the tourism mostly include:
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the construction of a new comprehensive tourism centre or
an expansion of an existing one by offering new services;
Investment Incentives in practice
Granted incentives as a percentage from investment costs
(an average from 2002 to 2010)
Minimal amount of eligible investment costs (in millions EUR)
Unemployment rate in the district
until 31 March 2009
and from 1 January 2011
from 1 April 2009
to 31 December 2010
BELOW or EQUAL to the average in Slovakia
16,6
9,96
ABOVE the average in Slovakia (by less than 50%)
8,3
4,98
At least 50% ABOVE the average in Slovakia
3,32
3,32
Key Factors for Granting State Aid
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Amount of the investment
Region where the project will be implemented
Rate of unemployment in the region
Number of directly and indirectly created jobs
Technological standard, innovation
Amount of costs incurred on education
Share of highly qualified staff
Impact on the environment
Quality of the investment plan and completeness of the application/request
Source: The Slovak Ministry of Economy
Total state aid granted in millions of Euros from 2002 to 2010
Source: Slovak Statistical Office (2010)
The investor’s guide
37
Slovak Government State Aid
Research and Development Incentives
Research and development incentives are part of the state aid programme designated
for legal entities – entrepreneurs, and are aimed at improving the quality of research and
development activities. Conditions for granting and using the incentives are stipulated in Act
85/2009 on Research and Development Incentives (“the Incentives Act”).
If an investor meets the conditions set out for state aid above, it can apply for
one of the following types of state aid:
1. a subsidy for research and development;
2. income tax relief;
Eligible costs for research and development projects:
1.Direct costs
expenses incurred for activities for which it can be proved that they
directly relate to the project.a subsidy for research and development
2.Indirect costs
costs of activities relating to the project, however not directly assignable
to the project activities.
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1. Fundamental research project
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the project should be focused on experimental and theoretical work performed
particularly for the purpose of gaining new knowledge with planned practical usage;
the maximum time of the project is three years; and
the amount of support relative to eligible costs, the maximum amount of the state aid and
the minimum amount of overall investment (eligible costs) for a project is as follows:
Maximum amount of state aid / Minimum amount of eligible costs
Size of the company
Percentage of eligible costs / maximum
amount of state aid in millions of Euros
for a company/project
Minimum amount of eligible costs in
millions of Euros
Micro and small company
100% / 20
0.25
Medium-sized company
100% / 20
0.5
Large company
100% / 20
1.0
2. Applied research project
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the project should be focused on gaining new knowledge and skills for the development
of new products, procedures or services;
the maximum period of a project is three years; and
the amount of support relative to eligible costs, the maximum amount of aid and minimum
amount of total investment (eligible costs) for a project is as follows:
Maximum amount of state aid / Minimum amount of eligible costs
Size of the company
Percentage of eligible costs / maximum
amount of state aid in millions of Euros
for a company/project
Minimum amount of eligible costs in
millions of Euros
Micro and small company
70% / 10
1.5
Medium-sized company
60% / 10
2.5
Large company
50% / 10
3.5
Guide to Investment in KOŠICE
3.Experimental development project
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5. Protection of intellectual and industrial property
the project should be aimed at gaining, combining, forming, and using existing technical
and technological knowledge and skills for the purpose of developing plans and
compositions, designs of new (or upgraded) products, processes or services;
the maximum period of a project is three years; and
the amount of support relative to eligible costs, the maximum amount of aid and minimum
amount of total investment (eligible costs) for a project is as follows:
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focused on ensuring protection of the results achieved in applied or experimental
research projects locally or abroad, in the form of patent or other protection of industrial
property.
the maximum aid (as a percentage of eligible costs) does not exceed the amount for
relevant research and development activities that were the basis for the original industrial
property.
Maximum amount of state aid / Minimum amount of eligible costs
Size of the company
Percentage of eligible costs / maximum
amount of state aid in millions of Euros
for a company/project
Minimum amount of eligible costs in
millions of Euros
Micro and small company
45% / 7.5
1.5
Medium-sized company
35% / 7.5
2.5
Large company
25% / 7.5
3.5
4. Applied research and experimental research projects feasibility studies
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6.Staffing of research and development function
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the temporary lease of highly qualified staff from other research and development sectors
(universities, Slovak Academy of Sciences or a large company) for micro or medium-sized
companies.
For small, medium-sized, and large companies, the maximum amount of aid (as a percentage
of eligible costs) will not exceed 50% for a period of no more than three years for a company
and leased expert.
the project should be focused on verifying the feasibility and applicability of the applied
research projects and experimental research projects; and
the amount of support is as follows:
Size of the company
Maximum amount of the state aid – percentage of eligible costs / maximum
amount of state aid in millions or Euros for a company/project
Preliminary studies for the activities of
industrial research
Preliminary studies for the activities of
experimental development
Micro and small company
75% / 7.5
50% / 7.5
Medium-sized company
75% / 7.5
50% / 7.5
Large company
65% / 7.5
40% / 7.5
The investor’s guide
39
European Union Funds
In addition to state aid that is provided from the state budget, your investment can also be
supported from EU Funds from 2007 to 2013. The following areas have priority:
This operational programme focuses on more challenging and demanding activities in the
area of:
1. Knowledge economy
2. Infrastructure and regional availability
3. Human resources
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2007 To 2013 Operational Programmes:
Ranking
Programme
1
Regional operation programme
2
Environment
3
Transport
4
IT implementation
5
Research and development
6
Competitiveness and economic growth
7
Education
8
Employment and social inclusion
9
Health care
10
Technical assistance
11
Region of Bratislava
Key Programmes
Water management
Waste management
Air pollution
Nature conservation
Operational programme “Research and Development”
The purpose of this programme is upgrading and improving effectiveness of the system for
the support of research and development, and improving the infrastructure of universities so
that they are able to share in:
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Improving competitiveness of the economy
Reducing regional disparities
Establishment of new innovative (high-tech) small and middle-size enterprises
Creation of new jobs
Improvement of conditions for educational processes at universities
Competitiveness and economic growth
Competitiveness and economic growth is designated for ensuring sustainable economic
growth and employment.
Activities are focused particularly on:
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Support of innovative processes
Transfer of new environmental technologies and sophisticated processes
Development of common services for entrepreneurs
Operational programme “Environment”
The environmental programme is focused on improving the environment and reasonable use
of resources through improvement of environmental infrastructure in Slovakia in accordance
with the EU and local regulations.
40
Guide to Investment in KOŠICE
Environmental Projects
Major factors and opportunities in the environment sector:
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Out of total area of the city, agriculture land is 38%, and 30.9% is
occupied by forests.
Because of the structure of land (a high concentration of forests),
the cadastral area of the city has many valuable natural areas and
protected areas of national and international importance.
Danger for agricultural soil due to erosion.
Maintenance of the forests is unsystematic, the quality of greenery is
declining, and green areas are decreasing in size.
Communal waste production is increasing.
In line with EU goals to decrease greenhouse gas emissions by 20%, increase energetic
efficiency by 20%, and to ensure a 20% share of energy production from renewable sources,
Košice is implementing various projects aimed at renewable energy sources:
Geothermal energy
There are excellent conditions in the city and nearby surrounding areas for the use of this
resource. Close to the city (in the Ďurkov and Bidovce areas), at a depth of around 3,100
metres, there is a geothermal water source with a temperature of 125° C to 135° C, with an
outflow speed from 60 to 85 litres a second.
A plan has been drafted for the use of this geothermal potential for heating city buildings,
where the estimated capacity and distribution of heat will be in twelve drills with a maximum
power of 120 MW. Two drills can supply as much as 150,000 MWh of heat a year, assuming a
use of 7,500 hours per year. The project is expensive, and without co-financing through grants
or EU funds, its use for the central heating system of the city can increase the price of heat
significantly. There are negotiations taking place between drill owners (SPP) and the owner of
the heat source and distribution system (TEKO).
The investor’s guide
Co-generating unit for biomass
A major project for using a renewable energy source is Cassovia Bio Energy s.r.o.’s
construction of a combined source for the production of electricity and heat from biomass,
contributing to a decrease in the dependence on traditional fossil fuels and a decrease in the
overall burden on the environment. The co-generating unit for biomass, producing 27 MW of
heat and 7 MW of electrical energy, will be built between the Optima shopping centre and the
planned industrial park Pereš. The heating power of the co-generating source will be integrated
with the primary central distribution channel providing heat to the city, and the electrical output
will be connected to the distribution network of VSE (Eastern Slovak Energy Distribution
company).
Photovoltaic electricity plant
There are initiatives to construct a photovoltaic plant near Košice with a power output of
approximately 1MW of electricity.
Biowaste composting
The composting facility of Košice is a new project involving building a facility for using
biodegradable waste. It will increase the usage of biodegradable waste from gardens and
parks, including waste from cemeteries and other sources (green bio waste), and increase
the amount of biodegradable kitchen and restaurant waste used. At the same time, the aim
is to decrease the amount of waste disposed of in the site, and to decrease the production of
gas produced by waste, in accordance with the EU directive on waste disposal sites. Another
benefit is the production of compost and its use as a fertilizer to replace artificial fertilizers in
accordance with the goals of the programme for sustainable development. Planned projects
also include installing thermal pumps in public facilities in Košice to replace heat and warm
water production from non-renewable energy sources.
The city is implementing various smaller projects to decrease dependence on fossil energy
sources, and is involved in various local activities in this respect (such as thermal water pumps,
solar collectors, and insulating buildings to decrease energy demand). These activities will lead
to higher energy efficiency on public premises, contributing to an improved environment for
Košice. The implementation of these projects will decrease future operating costs.
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Life in Košice
Košice provides opportunities for various ways to spend free time.
There are many historical and cultural points of interest, and many
spectacular sights unique to the region and to Slovakia. The beautiful
cathedral Dóm sv. Alžbety (St. Elizabeth’s), the largest archaeological
complex Dolná brána with the chapel kaplnka sv. Michala (St. Michael),
Saint Urban’s Tower Urbanova veža, as well as the oldest church in the
town Dominikánsky kostol (built in the thirteenth to fourteenth centuries)
are just a few of the places to visit. The Čaky-Dezofiho palác palace
and the ulička remesiel (Handicrafts Street) are among the other
interesting spots in the old town. The city historical reservation is the
largest in Slovakia, with 556 protected cultural monuments covering 85
hectares.
However, Košice is not all about the old town, and people can enjoy
a variety of other activities. The most recently built museum, and the
only one of its kind in Slovakia, is the Múzeum voskových figurín (Wax
Museum) downtown. Other interesting museums are the Letecké
múzeum (Museum of Flight) located in the Technické múzeum
(Technical Museum) at the airport, the Archeologické múzeum
(Archaeological Museum), Východoslovenské múzeum (Eastern
Slovakia Museum) featuring gold treasure, the Múzeum Vojtecha
Lofflera (Museum of Vojtech Loffler), and the Východoslovenská
galéria (Eastern Slovakia Gallery).
The oldest marathon in Europe, run since 1924, known as the Košice
Peace Marathon (www.kosicemarathon.com) takes place in Košice
annually on the first Sunday in October, with over 5,000 participants
from over 35 countries.
The zoo in Košice is the largest in central Europe, with a total area
of 288 hectares. Visitors can see more than 100 species, with some
unique animals, such as Hucul horses, and quintuplets of a brown bear
born at the zoo. The facility provides many attractions for relaxing all
day long, especially for families with children.
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The botanical garden is also the largest in Slovakia, with over 4,000
types of plants, and 1,000 types of cactuses and succulents, making it
the biggest collection in the former Czechoslovakia.
The Detská železnica (Children’s Railway) in Čermeľské údolie is the
oldest in Slovakia, and is the only one that is fully functional. It was built
in 1955-1956, and is a valuable technical source, thanks to its carriages.
The line is 4.2 kilometres long, has three stops, and takes visitors to the
Alpínka recreation area.
The Chodník slávnych (Walk of Fame) was built in 1996-1997, and
contains tiles showing famous people who have visited Košice,
including popes, heads of states, and members of royal families.
The Steel Arena (www.steelarena.sk) is the most modern and
technologically advanced multipurpose hall in Slovakia. It has a
capacity of 8,347 and offers 40 VIP boxes and 10 buffets. It was
opened in 2006 after reconstruction of the old winter stadium, Zimný
štadión L. Trojáka. Many interesting events have taken place in it since,
including concerts by Enrique Iglesias, Bryan Adams, Deep Purple,
Joe Cocker, Kim Wilde, Seal, Jean Michel Jarre, Vanessa Mae, Andrea
Bocelli and others.
The city hosts various cultural events, among which are Dni mesta
Košice (Košice Days) Košická hudobná jar (Košice Spring Music),
Košické kultúrne leto (Košice Cultural Summer), a festival of local
European TVs Zlatý žobrák (The Golden Beggar), and Košické
Vianoce (Košice Christmas). Slovenská štátna filharmónia, The
Slovak State Philharmonic (www.sfk.sk), is one of the prominent
representatives of Slovak interpretive art at home and abroad.
It features a 90-member orchestra of professional musicians.
Guide to Investment in KOŠICE
Theatres
Nightlife
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Štátne divadlo Košice/State theatre (www.sdke.sk)
- ballet, opera
Štátne divadlo malá scéna/State theatre Small scene
(www.sdke.sk) - ballet, opera
Bábkové divadlo/Puppet theatre (www.bdke.sk)
Činoherné štúdio Jorik/Jorik studio
- drama theatre for youth and adults
Divadlo/Theatre CASSIA DANCE (www.cassiadance.sk)
- musical theatre
Divadlo/Theatre na Peróne (www.naperone.sk)
Divadlo Thália Színház/Hungarian Theatre Thalia
Márai Štúdio/Stage
Divadlo Romathan/Romathan Theatre
- the first professional Roma theatre
Divadlo/Theatre Madrid, European artistic company
Divadlo Veritas/Theatre Veritas
Shopping Centres
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Galéria
- including shops, cinemas, restaurants
OPTIMA
- shops, cinemas, restaurants
Cassovia
OD Dargov
Aupark
- planned completion in 2012
hypermarkets TESCO (3), Hypernova, Carrefour
supermarkets Lidl (2), Kaufland (2), BILLA, bauMax-x, Hornbach
home centres KIKA, Asko
The investor’s guide
Irish pub Diesel (www.irishpubkosice.com)
Retro Cult Club (www. cultclub.sk)
Jazz Club (www.jazzclub-ke.sk)
The Cosmopolitan (www.cosmopolitancb.sk)
CASINO Košice (www.cspt.sk)
The Beerhouse (www.thebeerhouse.sk)
La Cubana (www.lacubana.sk)
Garibaldi´s Lounge (www.garibaldis.sk)
Ibiza Club (www.ibizaclub.sk)
Admiral Bowling
Sports
Košice is a city with a long tradition of sport. Besides the annual
marathon, many sport events take place in the city regularly. Traditional
sports in which the city is represented at the highest national and
European levels are football (MFK Košice), ice hockey (HC Košice are
Slovak champions for the 2008-2009 season), basketball (Cassovia
Košice, Dobrí anjeli Košice, Basket Steel Slovakia Košice) and handball
(1. MHK Košice). Sports available for leisure or professional participation
include athletics, handball, hockeyball, baseball, basketball, badminton,
table tennis, water polo, wrestling, tennis, golf, squash, bowling, and
many others.
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Life in Košice
Stadiums and Sport Facilities
›› Centre for winter sports Košice - Jahodná
›› Centre for winter sports - Kavečany
›› Golf centre Alpinka Košice
›› Multisport centre TJ Lokomotíva - Čermeľ
›› Winter stadium
›› Tennis complex
›› Tenniscentre Anička
Košice has two planetariums for the public, at the Slovak Technical
Museum, and in the Free Time Centre DOMINO.
Other interesting sights in the region
Swimming Pools
›› Swimming pool Triton
›› Indoor public swimming centre
›› Swimming pool in public park
›› Swimming centre of Police sport club
›› Beach swimming pool RYBA
The Tokajská vinohradnícka oblasť (Tokaj wine region) is located
southeast of the city. Covering 988 hectares, it is the smallest of six
wine regions in Slovakia. The area is the warmest region with the
highest quality vineyards in Slovakia cultivated since Roman times.
The Tokaj brand is probably the most famous of wines in Slovakia and
Hungary. It was served to monarchs in the past.
Fitness Centres
›› Studio7 (www.studio7.sk)
›› Lady Fitliness (www.fitlines69.sk)
›› Relax C. Bien (www.bien.wbl.sk)
›› Oáza fit klub (www.oazafitklub.sk)
plus about 30 more…
Slovenský raj (Slovak Paradise) national park and Slovenský kras are
included on the UNESCO World Heritage list, and both are renowned
for their waterfalls, canyons, caves, and natural beauty. Morské oko
(Eye of the Sea) in the Vihorlat Mountains is the deepest lake in
Slovakia, and its surroundings are the perfect place for hiking in nature.
More information on points of interest can be obtained from SACR, the
Slovak Board of Tourism (www.sacr.sk) or from Košické informačné
centrum, the Košice Information Centre (www.mickosice.sk).
Less traditional, but increasingly popular sports include kick boxing,
hot air ballooning, water skiing and wakeboarding, seadoo riding and
snowmobiling.
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Planetarium and observatories
Guide to Investment in KOŠICE
Košice Municipality and Important Contacts
The city is aware of its important role in ensuring
sustainable growth and development for the benefit of
the firms and people residing in Košice. The main goals of
the city’s development programmes are included in the
programme for the economic and social development of
the city.
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City of Innovations
Healthy City
City of Culture
City for Families
Major priorities are focused on:
EDUCATION
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improving the technical status and equipment of the educational
infrastructure
supporting creativity in education
creating new opportunities for increasing qualifications of the
labour force and graduates in specific sectors
developing life long education opportunities
improving using potential from research and development
TOURISM
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support infrastructure in tourism
support the introduction of new products
improve marketing and public relations in the sector
ECONOMY
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supporting business for new entrepreneurs and a sector with
higher added value bringing new innovative solutions
supporting foreign direct investments
HOUSING
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improving the ability to meet the housing needs of young families
enhancing the reconstruction of old panel blocks
The investor’s guide
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Košice Municipality and Important Contacts
All inquiries to the city can be made at Kancelária 1. kontaktu/the Office of First Contact, in person, by telephone
or by email:
Magistrát mesta Košice
Department of Strategic Development
(Office of the City of Košice)
Address: Trieda SNP 48/A
Košice
Slovak Republic
Tel:
+ 421 55 6419 231
Fax:
+ 421 55 6419 231
E-mail: kontakt@kosice.sk
Internet: www.kosice.sk
Mayor’s Office
Tel.:
E-mail:
+ 421 55 6419 711
osr@kosice.sk
Department of Marketing and Tourism
Tel.:
E-mail:
+ 421 55 6419 225
marketing@kosice.sk
Košice 2013
European Capital of Culture
Tel.:
E-mail:
+ 421 55 6419 112
sekretariatprimatora@kosice.sk
Foreign Affairs Office
Tel.:
E-mail:
+ 421 55 6419 106
kosiceinvest@kosice.sk
Chief Architect’s Office
Tel.:
E-mail:
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Tel.:
E-mail:
+ 421 55 6854 299
office@kosice2013.sk
Košice - Turizmus
The Košice Tourism Association
The Official Tourism Board for Košice
Tel.:
E-mail:
+421 917 851 944
info@visitkosice.eu
+ 421 55 6419 470
uhamke@kosice.sk
Guide to Investment in KOŠICE
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GUIDE TO INVESTMENT IN KOŠICE
© 2010 Magistrát mesta Košice
Trieda SNP 48/A, 040 11 Košice,
Slovak Republic
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