SARIO GOODIDEASLOVAKIA

SLOVAK INVESTMENT ANDTRADE DEVELOPMENT AGENCY

ENGLISH EDITIONSEPTEMBER 2018

Chemical Industry in SLOVAKIA

Paris

London

MadridLisbon

Amsterdam

Dublin

Rome

Vienna

Bratislava

Prague

Berlin Warsaw

Athens

Zagreb

Ljubljana

Budapest

Sofia

Bucharest

Kiev

Copenhagen

Zurich

Brussels

OsloStockholm

Helsinki

Tallinn

Riga

VilniusMinsk

Chisinau

SarajevoBelgrade

Podgorica

Tirana

Skopje

Luxembourg

Edinburgh

300 million clients in radius

of 1,000 km

600 million clients in radius

of 2,000 km

total area 49,035 km2

population 5.4 millioncapital city Bratislavamember of European Union, Eurozone, Schengen Area, OECD, WTO, NATOtime zone GMT +1 hour

Chemical Industry in Slovakia

The purpose of this publication is to presentthe opportunities that Slovakia has to offerto potential investors from the chemicalindustry. The material also connects toSlovakia's strong automotive and electronicssector from the perspective of plastics. Thepublication also includes facts and figures forthe major subcategories of this industrial segmentand serves as an introduction to why Slovakiashould be a preferred location for your business.

1 www.sario.sk

2 www.sario.sk

Chemical Industry in Slovakia — Key Facts

Highest labour productivityin CEE region

Strategic location in Europe with great export potential

Cost-effective & skilled labour force

Political & economic stability

Euro currency as one of the few in CEE

Fastest growing Eurozone member within the last 10 years

Attractive investment incentives for industry

Well-developed infrastructure

Large selection of industrial land

Strong local production capacities in need of plastic components

1

4

2

3

6

7

5

9

8

10

Top 10 Reasons Why to Invest in

Slovakia

Slovakia has a strong tradition in all major segments of the chemical industry, including petroleum refining, production of fertilizers, rubber and plastics production. The business environment in this sector is also influenced by Slovakia's strong automotive and electronics sector, which serve as constant, high-capacity clients for different companies from the chemical industry. Producers of pharmaceuticals and single purpose medical accessories are also present in Slovakia.

9.63 BN €Revenues of the Slovak chemical industry

39,000People employed in the Slovak chemical industry

13.8%Share of the chemical industry from the entire Slovak manufacturing sector

3.94 BN €Revenue generated by coke and refined petroleum product manufacturers

792 MIL €Revenues ot the biggest rubber and plastic producer

185Number of manufacturers of rubber and plastic products

9.63 BN €

39,000

13.8%

3.94 BN €

792 MIL €

185

Sour

ce: S

tatis

tical

Offi

ce o

f the

Slo

vak

Rep

ublic

, Dat

a fo

r all

com

pani

es, T

urno

ver f

or o

wn

perf

orm

ance

s an

d go

ods,

Year

book

of I

ndus

try

in th

e SR

, Oct

ober

201

5

3 www.sario.sk

Unlike in some other countries, the output of the Slovak chemical industry does not consist of one product or a group of few products, but includes a diversified portfolio of hundreds of different products, ranging from petrochemicals, agrochemicals, and primary organic/inorganic chemicals, to rubber, plastic products, rugs and vaccinations.

The Slovak chemical industry(hereinafter also as 'SCHI') has traditionally been one of the largest sectors of the national economy. In 2014, revenues generated by all companies in this sector amounted to EUR 9.63 billion, representing 11.7% of theSlovak industry (EUR 82.15 billion). At thesame time SCHI equaled 13.8% of the of the Slovak manufacturing sector (EUR 69.88 billion). Production of pharmaceutical products is usually considered to form an integral part of the chemical industry. These sectors combined are to employ over 39 000 people in approximately 250 companies.

The Slovnaft group represented almost the whole turnover of the coke and petroleum production in Slovakia, which is the biggest revenue generating sub-sector of the chemical industry. Almost the same amount of revenue was achived by rubber and plastic producers, which employ over 25 ths people in 185 companies.

Summary

Number ofCompanies

Number ofEmployees

Revenues(mil. EUR)

3 94415

50

1915

8 226

3 818

2 133

2 658

1 676185

26 045

rubber & plastic products

pharmaceutical products

chemicals & chemical products

coke & refined petroleum products

BA WEST CENTRAL EAST

4 www.sario.sk

INDUSTRY

Coke

& re

fined

pe

trol

eum

pro

duct

sCh

emic

als &

ch

emic

al p

rodu

cts

Phar

mac

euti

cal

med

icin

al, c

hem

ical

&

bota

nica

l pro

duct

s

Rub

ber/

plas

tic

prod

ucts

& ot

her n

on‒m

etal

licm

iner

al p

rodu

cts

POSITION

Assistantworkers

Assistantworkers

Assistantworkers

Assistantworkers

Machineoperators

Machineoperators

Machineoperators

Machineoperators

Technologists

Technologists

Technologists

Technologists

Production supervisor

Production supervisor

Production supervisor

Production supervisor

800

800

800

900

650

650

650

1 100

1 850

1 850

1 350

1 950

1 600

1 600

1 600

1 750

750

750

750

825

575

575

575

575

1 500

1 500

1 500

1 600

1 500

1 500

1 500

1 650

700

700

700

750

540

540

540

540

1 450

1 400

1 400

1 500

1 450

1 450

1 450

1 450

700

700

700

715

525

525

525

525

1 100

1 100

1 100

1 150

1 250

1 250

1 250

1 450

Source: The Institute for Information & Prognosis in Education, 2016, Lugera Slovakia 2016, SARIO calculations

AVERAGE GROSS MONTHLY SALARY (IN EUR)

Cost‒Effective, Skilled Labour Force

Slovakia is praised as one of the most productive countries in Europe. Combined with cost‒effectiveness and high education level, Slovak labour force excels in the three areas that often concern investors — labor costs, productivity and qualification.

Thanks to educational system

covering the full spectrum of technical fields, investors can find skilled and diverse

labour market in Slovakia.

In 2014 the faculty (Slovak Technical University) has participated in 158 research projects ranging from sample analysis to

the development of new materials and chemicals.

5 technical universities

6 chemical industry oriented faculties

11 577students in chemistry

and related fields

3 917 graduates in chemistry

and related fields

R&D Faculty of Chemical & Food Technology

3rd biggest company by turnover and the only oil refinery in Slovakia. It also houses an R&D center employing more than 100 engineers.Turnover: 3 416 063 000 EUREmployees: 2 389

5 www.sario.sk

Examples of Companies from the Slovak Chemical Industry

Slovnaft

Source: Global Slovakia (2016)

Duslo

Fertilizer producer with European significance and global rubber chemical supplier. The company also produces polyvinyl acetate and

poly acrylic glues, dispersions and various other special products. Revenue: 461 242 000 EUR

Employees: 2 015

Building up on Matador's tyre production history, Continental operates a truck and personal vehicle tyre production facility in Puchov, with a 150 FTE R&D center.Revenue: 894 539 000 EUR + 521 403 000 EUREmployees: 1 565 + 1256

The company with a very broad portfolio of chemical products. One of the biggest employers in Eastern Slovakia.Revenue: 92 585 411 EUREmployees: 945

Continental

Chemosvit Folie

De Miclen

The company, as a part of GlaxoSmithKline, has set up a high capacity production of consumer cosmetic products Slovakia.

Revenue: 114 328 845 EUREmployees: 560

INZI SK

6 www.sario.sk

The Biggest Players of the Slovak Chemical Industry

The biggest chemical & pharmaceutical companies are present in every region of our country, with a higher concentration in the Western part of Slovakia.

Coke & refined petroleum

Rubber & plastic products

Chemicals & chemical products

Basic pharmaceutical products & drugsSource: TREND Top v priemysle, 09/2015, Global Slovakia 2015

The present list of manufacturers of different chemical products is subject to change and it does not represent an exhaustive overview.Source: Global Slovakia (2016)

SEGMENT REVENUE 2015(THS. EUR)

AVERAGE NUMBER OF EMPLOYEESCOMPANY LOCATION

Slovnaft Bratislava 3 416 063 2 389coke & refined petroleum

Giesecke & Devrient Slovakia Nitra 97 853 540rubber & plastic

Prima Poprad

Fortischem Nováky 145 487 1 100chemicals & chemical products

Cikautoxo SK

Nitra 61 929 209rubber & plastic

Biotika

Dolný Kubín 43 382 334rubber & plastic

Continental Matador Truck Tires Púchov 521 403 1 256rubber & plastic

ContiTech Vibration Control Slovakia

Svit 75 128 320rubber & plastic

KOAM Elektronik

Žilina 39 554 95rubber & plastic

Enviral Leopoldov 112 723 147chemicals & chemical products

SaarGummi Slovakia

Strážske 39 873 32chemicals & chemical products

Chemolak

Dolné Vestenice 32 081 699rubber & plastic

Continental Matador Rubber Púchov 894 539 1 565rubber & plastic

Meroco Leopoldov 95 186 45

82 350 575

chemicals & chemical products

rubber & plastic

Sládkovičovo 21 920 210rubber & plastic

de Miclén Levice 114 328 560chemicals & chemical products

Reydel Automotive Slovakia

Dolné Vestenice 58 290 867rubber & plastic

Nobel Automotive Slovakia

Smolenice 29 313 240chemicals & chemical products

Duslo Šaľa 461 242 2 015chemicals & chemical products

Terichem

Slovenská Ľupča 52 515 250chemicals & chemical products

Polycasa Slovakia

Považská Bystrica 42 153 375rubber & plastic

Nexis Fibers Humenné 93 453 422chemicals & chemical products

Diakol Strážske

Šurany 38 718 231rubber & plastic

Vegum

Šurany 23 699 340rubber & plastic

Johnson Controls Lučenec Lučenec 115 248 800chemicals & chemical products

Evonik Fermas

Nové Zámky 66 564 836rubber & plastic

Dongil Rubber Belt Slovakia

Slovenská Ľupča 38 388 380basic pharmaceutical products & drugs

Chemosvit Folie Svit 92 585 945rubber & plastic

Bang Joo Electronics Slovakia

Poprad 38 345 150rubber & plastic

Korean Tier1 producer of various automotive plastic and trimmed parts.

Revenue: 157 497 671 EUREmployees: 634

Slovak Tier 1 supplier, injection moulding plastic component manufacturer for

automotive exteriors as well as interiors.Revenue: 15 626 922 EUR

Employees: 125

Producer of both automotive & television plastic part components.

Revenue: 64 678 727 EUR + 21 235 709Employees: 600

Canadian interior and exterior automotive plastic parts producer.

Revenue: 134 825 870 EUREmployees: 455

Vehicle plastic components for electronics, fuse boxes as well as interior

and exterior lighting equipment.Revenue: 17 079 325 EUR

Employees: 222

7 www.sario.sk

Examples of Companies Producing Plastics

Seoyon E-Hwa Automotive

Thermoplastic

Jasplastik

Magna Slovteca

Služba Nitra

A separate part of the chemical industry handout is attributed to plastics as it is an important supportive pillar for both the Slovak automotive & electronics industries. Additionally this subcategory of the industry is represented by the highest amount of companies within the Slovak chemical industry.

Source: Global Slovakia (2016)

Market IPM Plast

8 www.sario.sk

The Biggest Plastic Component Producers in Slovakia

Manufacturing of rubber and plastic products is most connected to Slovak automotive & electronics industry & is therefore mainly located in regions with where these industries have a strong presence.

Source: Global Slovakia (2016)

TURNOVER(THS. EUR) NUMBER OF EMPLOYEESCOMPANY LOCATION

Seoyon E-HWA Automotive Slovakia Dubnica nad Váhom 157 497 634

Bourbon AP Dolný Kubín Dolný Kubín 22 765 380

Trend Rejlek

Čadca 4 569 86

Fremach Trnava Trnava 43 111 391

Uniplast MH

Liptovský Ján 10 226 110

Inventive

Malacky 1 727 16

Plastic Omnium Auto Inergy Slovakia Lozorno 149 150 260

Thermoplastik

Nové Mesto nad Váhom 14 463 64

VÚSAPL (restructuring)

Michalovce 3 446 35

Bourbon AP Nitra Nitra 45 636 200

Tecoplast PM Slovakia

Sládkovičovo 9 352 101

JMP Plast

Vaďovce 1 664 32

Magna Slovteca Nové Mesto nad Váhom 134 825 455

LPH Vranov nad Topľou Vranov nad Topľou

Poriadie

19 783 249

15 626 125

HDF

Nitra 3 087 115

SMP Automotive Solutions Slovakia Matúškovo 33 306 180

Esox - Plast

Myjava 11 246 125

M+D Plast

Zalužice 2 085 30

RF Malacky 68 678 597

JIT Plastic

Kežmarok 10 881 86

MI Plastik Plus

Nové Mesto nad Váhom 2 048 20

COBA Automotive Terchová 21 485 220

Polytec Compsites Slovakia

Spišská Nová Ves 7 027 106

Jasplastik-SK Galanta 64 678 500

Aspel Slovakia

Vranov nad Topľou 13 054 163

Stavoplast

Liptovský Hrádok 1 512 30

Jasplastik-Automotive Matúškovo 21 235 100

CRW Slovakia

Martin 7 107 75

13 www.sario.sk

The primary role of the investment incentives is to motivate investors to placetheir new projects in regions with higher unemployment and to attract projects with higher added value. The positive impact of a new investment shall be proved by job creation, improved chances for the graduates to get a job, as well as by creation of new entrepreneurial opportunities for local companies.

Investment Incentives

ELIGIBLE PROJECTSThe Act on Investment Aid divides the projects which may be supported into four categories:• Industry• Technology Centers• Combined Projects of Industrial

Production and Technology Center• Shared Services CentersTECHNOLOGY CENTERS

• Minimum investment of 200 ths. EUR on fixed assets in all regions

• Minimum of 20 newly created jobs• Minimum 1,7 fold of average salary in

the district paid to new employeesELIGIBLE COSTS• Costs of land acquisition• Costs of buildings acquisition & construction• Costs of new technological equipment

and machinery acquisition• Intangible long-term assets —

licences, patents, etc.• Rent of new land/buildingOR• Wage costs of new employees for the

period of 2 years

FORMS OF INVESTMENT INCENTIVES• Tax relief• Cash grant • Contributions for the newly created jobs• Rent/Sale of real estate for a discounted

price

INDUSTRYMinimum investment amount, number of newly created jobs and share of new technology are subject to the unemployment rate in the selected district and forms of aid required.

If applying for income tax relief, the following criteria have to be met in regards to particular districts category:• 6 mil. EUR and 60% share of new

technology• 3 mil. EUR and 50% share of new

technology• 1,5 mil. EUR and 40% share of new

technology• 0,2 mil. EUR and 30% share of new

technology• Expansion includes minimum increase

in the production volume or turnover by at least 15%.

Other forms of aid are subject to different requirements.

MAXIMUM REGIONAL INTENSITIES OF INVESTMENT AID IN SLOVAKIA

for SMEs additional 10 to 20 %

SHARED SERVICES CENTERS• Minimum of 50 newly created jobs• Min 1,5 fold of average salary in the

district paid to new employees

25%

35%

35%

Bratislava region excluded

*Conditions differ for projects from 'Priority areas'. Please contact us at invest@sario.sk for more information.

14 www.sario.sk

ALL OUR SERVICES ARE FREE

OF CHARGE!

• Information on foreign territories• Customized search for foreign partners• On-line database of business opportunities• Export Training Centre• Subcontracting assistance

SARIO Profile

INVESTMENT SERVICES

FOREIGN TRADE SERVICES

INNOVATION SUPPORT

SERVICES FOR POTENTIAL INVESTORS

IF YOU ARE LOOKING FOR

SERVICES FOR EXPORTERS

SERVICES FOR ESTABLISHED INVESTORS

• Investment environment overview• Assistance with investment projects implementation• Starting a business consultancy• Sector and regional analyses• Investment incentives consultancy• Site location and suitable real estate consultancy

• Slovak supplier or subcontractor• Information about Slovak export/trade environment• Sourcing opportunities• Forming a joint venture, production cooperation or other forms of partnership

with a Slovak partner

• Identification of local suppliers, service providers• Assistance with expansion preparation and execution• Relocation assistance, work/stay permits• Support of innovation and R&D activities• Social networking

Number of SARIO Investment Projects from

2002 — 2015

number of SARIO investment projects in

BSC sector 2002 — 2015

2014 Global Best to Invest 2013Selection Site magazine

Our Award

439

22

• Support activities for development and popularization of Slovak innovations and R&D environment

• Establishment of relations with domestic and foreign well–established innovative companies

• Interconnection of Slovak R&D capacities with industrial production and investors' needs in order to transfer leading innovative technology processes closer

to production praxis• Encouragement to foreign investors

to bring investments with substantial R&D components to the SR

• Ecosystem analysis of local investment opportunities as well as domestic and foreign investors in order to support acquisitions and joint ventures projects

• Specific information from the field, in order to obtain capital and foreign markets penetration

Slovak Investment and Trade Development Agency (SARIO) is a governmental investment and trade promotion agency of the Slovak Republic. The agency was established in 2001 and it operates under the Ministry of Economy of the SR.

SARIO I Slovak Investment and Trade Development AgencyTrnavská cesta 100 I 821 01 Bratislava I Slovakia

Copyright © 2016 SARIOThe information in this publication needs to be in every case double–checked to ensure it is up to date.For production of this publication public domain images were used where the source of the image is not credited.

GPS +48° 9' 52.77", +17° 9' 20.27"

invest@sario.sk I trade@sario.sk I www.sario.sk

SARIO IS YOUR ONE STOP SHOP FOR INVESTMENT & TRADE IN SLOVAKIA. TALK TO US TODAY!