Macedonia expects foreign investment wave

Macedonia expects foreign investment wave (SETimes.com):


Last week, top Macedonian officials were in Bunardzik – a free economic zone outside Skopje – to participate in a cornerstone laying ceremony for a new pharmaceutical plant.

The Russian company Prodis, part of the Protek holding group, is investing 5 million euros in the production facility, which is expected to create around 300 jobs. It is the latest sign that the Macedonian government's efforts to attract foreign investment and build economic growth are bearing fruit.

"The development of the free economic zones, particularly in Skopje, Tetovo and Bitola, is a goal through which we are trying to attract investments from other countries, but also from domestic companies," Economy Minister Valon Sarachini told SETimes

University American College professor Tome Nenovski agrees, arguing fiscal freedom and a 10% flat tax make for a very favourable business and investment environment.

"It translates into low land prices for investors and a policy of no capital gains tax and no personal income tax," Nenovski told SETimes

He also said the government offers investors an "investment premium" to repay 50% of the cost once a production facility is completed. Such was the case in attracting the US firm Johnson Controls.

There are additional investment enticements such as retirement and social security insurance, Nenovski said.

Protek Group's investment follows the recent purchase of Macedonian IK Bank by the Turkish Halkbank in July.

"We decided to invest in Macedonia because of the stable banking system and economy," Halkbank executive director in Skopje Judzel Inan said at a press conference.

Two German investments are also in the works in the automotive sector. The government estimates they will create 5,000 new jobs, overtaking previous German investments.

Kromberg & Schubert is to invest in a production facility for vehicle parts in Bitola. The name of the second firm has not been revealed, but it is expected to produce electrical units for vehicles.

The Turkish company Sisedzam, one of the world's largest manufacturers of glass and glass products, is about to complete its investment analysis. Sisedzam's investment is estimated to be between 50m and 60m euros.

By introducing a new minister for investment, Bill Pavleski, the government expects to further boost investment. Pavleski is a Harvard-trained MBA and a veteran of Hewlett Packard, where he has dealt with Fortune 1,000 companies.


Moreover, Macedonia's Agency for Investment Promotion appointed an additional six promoters in the United States, Great Britain, Turkey, Belgium, Canada and France, strengthening current activities.

Last February, the government adopted a package of reform laws to improve the conditions for work in construction, by reducing paperwork, associated costs and time needed to obtain documents.

Macedonia's special movie effects

By David Edenden,

This is an old article from 2005 which talks about Macedonia's success in digital special effects for the movie industry. Congratulations to Kristijan Danilovski of Macedonia's FX3X studio.

By David Reid Reporter, BBC Click Online

These days major film producers use so many effects in their movies that they have to outsource much of the work from places like Eastern Europe and the Balkans.

A number of companies are hoping for a new media hub

The Former Yugoslav Republic of Macedonia is a nice place to shoot a movie, and there is no shortage of companies there whose sights are set on coaxing business out of Hollywood.

They are not, however, so interested in touting the former Yugoslav republic as a filming location.

Instead, the scenery they are looking to sell comes directly out of a computer.

So seamless are digitally generated effects these days that they are difficult for film producers to resist.

The pixel is replacing the panorama, as faking it becomes cheaper and easier than the real thing.

The increased demand means that media companies in developing countries like Macedonia are getting the chance to have a hand in Hollywood blockbusters.

Film producers in the US are looking to outsource the more labour-intensive animation projects.

Ana Nikolovska, a rising star in animation, studies in the US

This is highly skilled and intricate work, and involves painting in the backgrounds of scenes that have already been shot.

One scene from The Aviator was filmed in a giant studio, and Macedonia's FX3X was given the job of converting the green backdrop into the harbour where Howard Hughes' Spruce Goose performed its maiden, and only, flight.

Miso Ristov, visual FX supervisor at FX3X, told Click Online: "Basically everything was shot handheld or stuck on some cranes. First we had to track the footage and then blend with the background and make a seamless blend.

"You have to do it manually, frame by frame, so we spent two and a half months for probably a couple of minutes of footage.

"We worked 15 hours a day, maybe. No sleep, no seeing your girlfriend, no stuff like that."

Strength in numbers

Buoyed by some initial successes, a number of companies are hoping to club together to tout Macedonia as a new media hub.

In the past people wanted to be actors, now they want to be animators Ana Nikolovska, animator

In bringing all the workshops under one roof they are aiming for strength in numbers and economies of scale.

"The point is to out-grow the capability of any individual company", said FX3X's Kristijan Danilovski.

"Jointly they will be able to share the costs and invest in joint infrastructure that would help all of them create one virtual large company, a big player in the market."

The more hands you have on deck the better, and in a place like Macedonia, if you want a large pool of digital media workers you have to go straight back to the source.

FX3X used a US government-funded schools computer network to teach some 400 students how to use animation software.

Digital images can be much cheaper to make than the real thing

But not all the country's talent is training at home. One rising star, Ana Nikolovska, is flying to the US on an animation scholarship.

Her success abroad will no doubt fuel the enthusiasm at home for animation and special effects.

She says: "There is a growing interest in 3D animation in Macedonia and it is becoming very popular, especially these last two years.

"I think lately everyone wants to be in the entertainment industry. In the past people wanted to be actors, now they want to be animators."

Hollywood is fond of rags to riches stories, and the Former Yugoslav Republic of Macedonia may well fit the script.

Many here hope that the country's enthusiasm for new media could make it a future player in the digital dream factory.

New Biodiesel Factory Opens in Macedonia

Macedonian_News_Service : Message: Daily Bulletin:

Skopje, July 12 (MIA) - Prime Minister Nikola Gruevski and "Makpetrol" Steering Board Chairman Andreja Josifovski officially put into operation Thursday bio-diesel factory of company "Makpetrol" in Ilinden municipality near Skopje.

"Makpetrol" has invested Euro 8 million in equipment in the bio-refinery, with an annual production capacity of 30,000 tons. Total investment is worth Euro 12 million.

"The opening of this bio-refinery marks the inclusion of 'Makpetrol' in the investment cycle in Macedonia. I hope that other domestic companies will follow their example", said Prime Minister Gruevski, adding that bio-diesel is one of the important products for the country's sustainable development.

According to him, bio-diesel production opens possibilities for agricultural development through stimulation of production and buyout of raw materials for its production, benefits car owners, as well as ecology due to the smaller gas emissions.

"In perspective, development of bio-diesel production industry will help the reduction of Macedonia's trade deficit through reduction of fossil fuels import, as well as increase of bio-diesel export at foreign markets", stated PM Gruevski, adding that use of bio-diesel is a trend in European Union countries, with a projected increase of its use to 15 percent of total fuels by 2015.

"I want to underline that the commitment, efforts and numerous measures implemented by the Government for improvement of the investment climate and development of the private sector, including reduction of taxes and customs fees, improvement of Cadastre work, competition in the finance sector, reduction and simplification of regulations, infrastructure modernization, as well as qualified personnel already bear fruits", said Gruevski.

"Makpetrol" official Josifovski stressed that the bio-refinery production is completely automated and in line with European standards. It employs young experts, while squeezed beet oil is used as raw material for production.

"The 30,000 ton production will fully meet domestic requirements, while certain amount will be exported. This factory is a proof that 'Makpetrol' follows global energy trends", said Josifovski, adding that the company plans to invest in the ecology sector in the future.

The refinery will produce bio-fuel in compliance with global standard EN 14214, enabling its mixing with fossil diesel fuel.

Norway :Direct Investment in Macedonia

Makfax vesnik
Tetovo /12/07/ 14:30

Tetovo-based textile company Teteks and Norwegian partners signed today an agreement for establishing a joint company, Makfax's correspondent reported.

Norwegian Sandnes Uldvarefabrikas AS and Wiggo Holding AS are the co-founders of the joint venture named Tetexjarn.

The founding capital of the new textile production facility, due to become operational as of 1 August, totals 1.050.000 euros. According to the agreement, each of the partners will share an equal 1/3 stake, wherein Norwegian partners are bind to make cash investment and Teteks to provide raw materials and real-estate assets.

The new company is planned to employ as many as 256 workers, currently working in the Teteks's spinning mill facility.

Gligorie Gogovski, the CEO of Teteks, said that the 'joint venture has been underpinned by the tax exemptions and other favorable conditions in the frameworks of the government's campaign Invest in Macedonia'.

Carl Wibye, the Norwegian Ambassador to Macedonia who attended the ceremony of signing of the agreement, said that Norway approved 6 million euros financial assistance to Macedonia in the cours"

Macedonia Debt Free to Italy

Macedonia to repay inherited debt toward Italy
Makfax vesnik

Skopje /11/07/ 12:36

Macedonia will finalize the repayment of the debt that was inherited from the old Yugoslav federation towards Italy, keeping open the prospects of a new 10 million euro loan for small and medium-sized enterprises.

Macedonian Finance Minister Trajko Slaveski and Italian Ambassador to Macedonia Donatino Marcon signed on Wednesday a bilateral agreement on consolidation and repayment of debt of Macedonian enterprises that took loans from Italy through former Yugoslav banks.

The signing of the Agreement removes the final prerequisite for full realization of Government's initiative on early repayment of debt toward Paris Club of Creditors."

Russian Gas To Macedonia

Russia backs gasification of Macedonia - Putin
Interfax > Politics:
Jun 24 2007 6:25PM

ZAGREB. June 24 (Interfax) - Russian President Vladimir Putin believes that the memorandum of understanding signed last December between Gazprom (RTS: GAZP) and Serbia on a main pipeline to cross the territory of the country is an important step towards continuous deliveries of Russian gas to the Balkans.

Such work is being carried out in Hungary now, Putin said.

'Russia is interested in continuing talks on gas sales and further using the transit capacities of the region, as well as the construction of underground gas storage facilities in a number of Balkan states,' the president said.

'The gasification of Macedonia and the extension of pipeline networks to Albania, South Serbia and Kosovo is interesting as well,' he said. ar md"

See Good Comment re: Detroit is Trembling

By David Edenden

This is a good comment on "Detroit is Trembling, Cars in Macedonia". A little while ago, another good comment on Mike Rann To Greeks: Ever Heard of Vaseline? on my old site.

Keep the coming!

Detroit is Trembling, Cars in Macedonia!

"Iinitiative for assembling Chinese vehicles in Macedonia
Makfax:
Skopje, 14:14

Three models of Chinese vehicles that are likely to be assembled in Macedonia were presented in the premises of the bus production plant Sanos.

Two types of four-wheel vehicles and a limousine were presented. In addition, a family car that may be assembled in the Skopje-based factory too was displayed on a photograph

The vehicles are of GMC brand, manufactured by one of the leading companies for cars and trucks with annual turnover of $1.4 billion.

At today's presentation, the owner of Sanos, Slave Raspashoski, called upon the Macedonian government and the public in general to demonstrate understanding and give full support to this project.

He said that if all necessary licenses are provided and the regulatory process is completed quickly, the assembling of the vehicles might set out within the next six months.

The selling price of these cars would be 7.500 euros, i.e. 6.300, if the government lifts the excise tax. As many as 1.000 people would be employed to reach the projected production volume of 10.000 units in a year.

Sanos is a plant engaged in production of buses with respectable tradition, which was called FAS 11 October in the communist era. After several-year hiatus in t"

Macedonia Grows, Hard Work and Peace Pays Off

"Macedonia marks 7% GDP in first quarter - the highest in 17 years
Makfax vesnik:

Skopje /20/06/ 16:10

Macedonia achieved 7 percent growth of the Gross Domestic Product in the first quarter of 2007.

Macedonian premier Nikola Gruevski announced this at a press conference today, citing official data of the State Statistical Office.

Gruevski underlined that this marks the greatest GDP hike in the Republic of Macedonia over the past 17 years.

Zoran Stavrevski, the vice-prime minister in charge of economic issues, said that this figure is identical to the one achieved by the fastest growing economies in the world.

'It is remarkable that the growth encompasses not one or two sectors, but is comprehensive and includes all areas', Stavrevski said.

Reminding that the industrial production and export operations marked the same growth in the first four months, Stavrevski said that all of this indicates that a realistically-based growth is in question."