Dear Future Partner,

 Nagykanizsa is a place that has always tried to grasp the opportunities that presented themselves. The decisions and resolutions it has made have always been forward-looking. This is what has helped the former trade-town become a progressive, developing city, which not only grows and prospers, but also helps its partners go forward.

 Nagykanizsa's historical past and traditional values are important to us since we know that the road to the future leads through the present but is built on the values of the past. We are proud of our great historic figures - including Count István Bethlen, former prime minister, who was Nagykanizsa's MP between 1935 and 1939 - and we try to progress and move forward along their spiritual and intellectual heritage.

We can make steps in any direction.

 Nagykanizsa is characterised by particularly good geographical features as it lies on border of three countries (Hungary, Croatia, and Slovenia) and of two regions (West and South Transdanubia). Owing to this, the town is Hungary's gateway to the largest Adriatic ports of the EU and Croatia: Trieste, Koper, Rijeka. Beside having superb connections to highways, Nagykanizsa is also an excellent passenger and cargo transport hub towards Croatia, Slovenia, and Italy.

In addition to favourable geographical and natural characteristics, the great traditions of international economic cooperation; the sound local economy; the vast areas open for development with full infrastructure; the solid services sector; and the commercial and industry development potential are all individual factors that collectively make Nagykanizsa an attractive investment destination for investors.

We are moving forward.

 The constant development and the expanding innovative capabilities of the town is one of our top strategic aims. Owing to this, the economic life, infrastructure, and the industrial, commercial and services sectors of Nagykanizsa are all developing simultaneously.

At the same time, the maintenance of a liveable urban environment is always in our focus (it is with this principle in mind that the downtown of Nagykanizsa will undergo reconstruction in the spring of 2012), therefore the local government keeps a significant network of institutions to provide residents with high-quality services in education, healthcare, culture, and community life.

 I sincerely hope that our booklet will give you helpful and usable information on our town's investment opportunities and potentials, and we can soon welcome you as one of our latest business partners and together we will continue to tread on the path of progress!

WHY NAGYKANIZSA?

 IDEAL LOCATION

• Nagykanizsa is a border town situated at the intersection of three countries (Hungary, Croatia, and Slovenia) and of two regions (West and South Transdanubia)
• Nagykanizsa is Hungary's gateway to the largest Adriatic ports of the EU and Croatia (Trieste, Koper, Rijeka)
• Highway connecting to the developed regions south of the EU Alps and to Budapest
• Major transit traffic between the northern regions of the EU and the Adriatic
• Railway cargo and passenger transport hub to Croatia, Slovenia, and Italy
• The proximity of the Sármellék international airport
• The proximity of Lake Balaton, the largest lake and one of the most popular tourist destinations in Central Europe

IDEAL BUSINESS CENTER

• Great traditions of international economic cooperation
• Local economy has a sound structure
• Industry is a key economic sector
• Areas ready for development with top infrastructure
• String service sector and trade activities
• Marketable large enterprises
• Wide, market-oriented and flexible vocational training, secondary and higher education
• Natural treasures: thermal waters, natural gas and crude oil

All roads led to Nagykanizsa

 Nagykanizsa is the "Gateway to the Regions": situated only one step away from the southern edge of Lake Balaton amidst the picturesque and gentle slopes of the Zala Hills, Nagykanizsa lies at the crossroads of three Hungary regions and three countries. Austria, Croatia and Slovenia are accessible within 30-70 kilometres; and there are five country capitals within a distance of 200 km: Budapest, Vienna, Bratislava, Zagreb and Ljubljana.

Owing to her favourable geographical features, the town has become a major transport and logistic centre:

• It lies along European Corridors V and V/B.
• The region of the town is linked onto by three main roads:
  • in the direction of east-west: M7 highway and the parallel motor road 7 connecting Budapest and Croatia
  • in the direction of north-south: the roads 74 and 61 going to Zalaegerszeg and Kaposvár intersect here
• Besides, several major lines of the national railway system come together in Nagykanizsa (e.g. Nagykanizsa-Pécs, Nagykanizsa-Budapest, and Nagykanizsa-Szombathely). On the southern border of the sub-region operates a railway border-crossing to Croatia.
• 36 kilometres from Nagykanizsa (20-25 minutes on the highway) lies the international passenger and cargo airport of Sármellék.   

Nagykanizsa is Hungary's gateway to the sea

Coming from South Western Europe, it is the gateway to Hungary and three seaports: Trieste, Koper, Rijeka lie within a distance of 3,5 hours, which is the shortest travel time out of all Hungarian cities.

According to the EU's development plan, which is presently being implemented, the high-speed cargo and passenger railway network system connecting the most developed regions of the southern EU Alps will reach Trieste in ten years' time.

There are significant potentials in commerce and industry development after Croatia's accession to the EU expected in 2013.

Nagykanizsa is a part of the dynamically growing Western Transdanubian region

Nagykanizsa has a developed infrastructure and developed and flexible vocational training and higher education. It is a cultural and artistic centre - a liveable town redolent of age with green belts, green residential areas and communities.

Nagykanizsa is a traditional commercial, service and industrial employment centre having an expansive conurbation area in which 235 thousand people can be reached within 40-50 minutes, making an excellent potential supply of manpower for companies and enterprises manufacturing marketable products and vast areas may be included within the direct vicinity of the town for the implementation of job-creating investments, and logistic developments.

Traditional Trade-Town

The area of the town today was already inhabited in ancient times; the first written record dates back to Béla IV, who issued an enfeoffment, in which the place is still referred to as Knysa. The town castle first gets mentioned in 1323 in a deed by Charles Robert. The castellan at the time was Lőrinc of Osl and its was his descendants that took on the substantive title "of Kanizsa". The predecessor of the castle was already standing in the 14th century and soon earned itself European recognition with subsequent reconstructions and expansions, while the surrounding Kanizsa grew into a market town.

During the Turkish occupation - especially after the fall of Szigetvár -, the castle, governed by György Thury, castellan, played an important defensive role until it finally fell to the Turks in 1600. After its liberation in 1690, the town administration was in the hands of the Viennese court chamber, which decided to demolish the castle. It is interesting that the destruction of the town's medieval values were the tokens of rebirth: in the 1700s, the stones of the former castle were used in the reconstruction work.

Owing to its favourable geographical position, trade at this time also began to pick up speed. The town successfully regained its market town status, which - in addition to farming and crafts - provided the citizens with livelihood. In 1765, Lajos Batthyány, the town's squire established a Piarist secondary school in the town, which soon grew into an academic centre in the region. In the second half of the 19th century, several railway lines of commercial importance were opened together with the first banks in Nagykanizsa. Education began a course of development, a hospital was founded, and owing to the factories and plants that had found the town ideal to settle in, industry began to expand together with trade and commerce.

In the wake of the post-WWI recession, the town was spared decline by the launch of oil production. Towards the end of the 1930s, the massive crude oil and natural gas deposits of Zala county were discovered; the Hungarian-American Oil Co. was founded with its headquarters in Nagykanizsa.

In the 1960s, the relatively liberal air and the general economic boom gave the town's economy a fresh momentum. A number of major industrial capacities were built in Nagykanizsa (including: furniture industry, oil industry, engineering, food industry, etc.)

LIVELY LOCAL ECONOMY

The town's economy is positively influenced by its geographical location (the proximity of Austria, Croatia, Slovenia and Lake Balaton) and excellent transport connections (public road, railway, airport in Sármellék) The economy underwent major restructuring in the 1990s and the industry - being the most important area - was successfully modernised. The favourable conditions, mentioned above, together with the availability of areas developed particularly for industrial activities and complete with full infrastructure (mainly industrial parks, established in 2001) and highly trained and qualified labour force have attracted investors in the past decade. The impacts of the resettlement of industry in the region are clearly visible in the development of other areas as well.

The local economy is based on industry, yet the diversity of activities is demonstrated by the large number of service providers, including trading and commercial activities. The roots of industry go back to the 19th century. In the second half of the century and in the beginning of the 20th century, many people were provided employment and sustenance by the Weiser machine factory, the beer factory, the brick factory, the brush manufacturing plant, the ersatz coffee factory and the distillery. Towards the end of the 1930s, the massive crude oil and natural gas deposits of Zala county were discovered leading to the foundation of the Hungarian-American Oil Co. (MAORT) with its headquarters in Nagykanizsa. The company today is known as DKG-EAST. Engaged in gas and oil production is the largest employer in the mining industry, the ROTARY Drilling Co. Ltd.; however, HEAT-GÁZGÉP Kft. producing cocks and valves as well as E.ON Middle Transdanubian Gas Supply Kft. are also involved in the same industry. Based on its value of production, innovative potential, and its role in employment, ROTARY is a key player not only in Zala county, but also in the entire Western Transdanubian region. In addition to the above manufacturing and energy industry companies that generate the lion's share of sales revenue in the region, the contribution of furniture manufacturing, machine production, food industry and plastics manufacturing to local production is also significant with a large number of medium-sized companied engaging in the above activities.

The industrial enterprises of Nagykanizsa provide jobs to more than 6,000 people. Although the economic recession that had set in towards the end of 2008 caused a severe drop in employment, the industry maintained its leading role in providing people with livelihoods. The official statistical register today has 340 industrial enterprises with seats in Nagykanizsa in its registry.

The density of enterprises is high with 24 companies operating in every square kilometre while the county average is only 6, and even the average rate of all Zala towns comes to 22.

Operating enterprises by key economic sectors, 2009

Source: Central Statistical Office.

Enterprises in the industry by subsectors, Nagykanizsa

        Source: Central Statistical Office.

The majority of industrial enterprises is engaged in the manufacturing of metal processing products (67), the repair of industrial machinery and instruments (43), manufacturing of furniture (32), and other manufacturing activities (31). 

The role of medium sized (employing at least 49 people) and large companies (employing more than 249) is pivotal in the field of industry. Their role in employment, the volume of their production, sales, and sales revenue provide the town and region with a solid economic backdrop to rely on. In 2010 they accounted for 3,700 jobs and their sales revenue was over HUF 57 billion. As part of mining services the following sectors produced outstanding performance both in respect of production and employment: crude oil and natural gas production and the manufacturing of machines, and machine equipment. In the energy sector, E.ON Middle Transdanubian Gas Supply Kft. and in the furniture manufacturing sector, Kanizsa Trend Kft. played the dominant roles; however the performance of rubber and plastic products manufacturing must also be mentioned here with SIROMA-PLAST Plastics Manufacturing Kft. being number one in terms of the volume of production. In 2010, the above-mentioned five industrial areas accounted for eight-tens of the HUF 52 billion production value generated by industrial organisations employing more than 49 people.

The sales performances of middle and large enterprises is much dependent on the domestic market with imports accounting for 41%, while the realised sale revenue was over HUF 54 billion. The rate of exports showed great differences. The measurement instruments produced by the subsector under computer, electrics and optical product manufacturing were sold exclusively abroad, but export sales by motor road vehicle manufacturing and electrical equipment manufacturing were also strong. In contrast to this, food producers have no foreign market and business relations. Gas supply is also limited to satisfying domestic demand but the sales orientation of the crude oil and natural gas production is not much different either. Accounting for considerable production value, the rubber and plastics product manufacturing however, sells one half of its output on the domestic and the other half on the export markets.

The strengthening of value driven sectors (primarily the industry) and the service sector, as well as the promotion of the existing innovative capabilities is a top strategic aim of the Local Government. To this aim, we are constantly strengthening our relations with innovative organisations, the university, and have launched an incubator house to help starting enterprises.

The local government owns significant real estate and properties for industrial, logistic and commercial development. Also, within the catchment area of the town, there are vast areas available to support projects that are primarily aimed to develop the local economy.

THE INDUSTRIAL PARK

The Local Government of Nagykanizsa established the Industrial Park and Logistics Centre right next to highway M7 in 2000. Today the park is home to nearly 100 enterprises.

The Industrial Park in terms of numbers

Total area: 134 hectares

Usable area: 123 hectares

Built up area: 95 hectares

Available area: 28 hectares

Minimum area to purchase: 1,500 m2

Site coverage: 50%

Minimum green area: 20%

Maximum building height: 12.5 m

Designation of the area: for industrial and logistic purposes

PROFILE OF THE ENTERPRISES IN THE INDUSTRIAL PARK

car wreckers and repair

furniture manufacturing and sales

packaging material production

ornamental gardening

building industry

timber industry and joinery

earthworks

plasterboard and stucco manufacturing

meat manufacturing

carpentry and furniture

forged iron manufacturing

fitter and locksmith

logistics

international freight forwarding

door and window manufacturing

warehousing

shipping

non-ferrous metal acquisition

customs administration and customs services

water treatment equipment manufacturing

other

Industrial gas supply

Modern business and financial infrastructure is provided in the industrial park along with modern

telecommunication facilities.

The necessary infrastructure for new companies moving in is built up within a short deadline; it must be noted however that the infrastructure is developed by the local government only up to the outside border of the plot, but the development of the inside infrastructure is up to the investor to complete.

There is a type I Freight Yard in the area of the industrial park.

The prices vary according to the volume of anticipated jobs and the investment, and significant discounts can be gained.

Incubator House and Innovation Centre

The local government of Nagykanizsa established an incubator house and a technical-technological innovation centre in the Nagykanizsa Industrial Park. With a total floor area of 2,496 m2, the building can accommodate approximately 30 enterprises.

The incubator house is the result of the modernisation and energy efficient renovation of an old barrack. By providing enterprises with a low-cost business environment to move into, the incubator house can significantly improve their chances of survival and development on the market.

With the Nagykanizsa Incubator House and Innovation Centre, we aim to:

• give small starting-up enterprises an advantage on the market by providing them with a favourable business environment
• secure infrastructure, a venue and services required to perform daily activities
• help enterprises get through the critical starting phase and help them focus on their primary activity.

We help enterprises that:

• do not have their own workshop and/office
• do not have office technology and telecommunications devices
• have little experience in running a business
• are unable to employ the right experts from the income they generate

Services provided by the incubator house

• office and workshop rental
• office equipment rental and office services
• Bookkeeping tax consultancy
• Legal advice
• Tendering and bidding advice
• Consultation on innovation tenders, intellectual property protection
• Promotion of R+D and innovative activities
• Event organisation
• Translation and interpreting