10 GOOD REASONS TO INVEST IN WALLONIA

A LAND OF GROWTHWith a territory of 17,000 km 2 and over 3,400,000inhabitants, Wallonia is one of the three regionsof federal Belgium: the French speaking regionclose to Brussels, with autonomy and powersmainly in the following sectors: economy, externaltrade and employment, but also in the areas ofapplied scientific research, new technologies,transport, energy and regional development.4

Three international airportsWith Liege and Charleroi, Wallonia has twoairports handling 500,000 tons of freightand more than 4 million passengers eachyear. And of course, Brussels-National Airportis not very far, with more than 18 millionpassengers and over 700,000 tons offreight annually.The densest road networkin the worldWallonia has a modern communicationnetwork to suit the needs of internationalcompanies, with close to 900 kmof free flowing motorways interconnectedto the European network.A rail system geared towardsEurope and exceptionally denseNot just several High speed train lines(Thalys, ICE, Eurostar), but also cargolinks connected to the main Europeanrail centres.Reach65 % OF THE EUROPEAN MARKET IN A FEW HOURS!The geographic location of Walloniais beyond compare: the vast majorityof the European market is directlyaccessible within a radius of 500 km!By road, you can cover an area thatincludes 20 of the largest Europeancities and 400 million consumers, injust one day.A market within reach thanks to animpressive transport system and topquality infrastructures.Being located in Wallonia increasesyour efficiency and allows you todeliver your products in record times.© CATERPILLARCATERPILLARPrime world manufacturer of construction andmining equipment, engines and turbines. The Gosseliesfactory near Charleroi is the largest of itssubsidiaries outside the United States.© COCA-COLA COMPANYCOCA-COLA COMPANYWith Coca-Cola Enterprises and Coca-Cola Services,Coca-Cola has made Belgium a hub for itsresearch and development. Coca-Cola has a productionsite in Wallonia (Sources Chaudfontaine)and two distribution centres (Gosselies and SourcesChaudfontaine).6

Rent (Euro/m 2 ):Belgium Wallonia 38 - 42Belgium Antwerp 45 - 50France 46 - 55Source: DTZHungary 54 - 60The Netherlands 55 - 70United Kingdom 56 - 128Belgium Brussels 57 - 60Italy 57 - 92Czech Republic 58 - 62Grow130 state of the art business parksProperty costs in Wallonia are among the lowest in EuropeIn Wallonia, entrepreneurship is secondnature. No wonder that everythingis done to welcome and help companiesdevelop by offering them the lowestproperty prices on the market:• 130 fully equipped Business Parksare now hosting close to 5,000 companiesand are creating more than150,000 jobs.• 6 Science Parks, directly connected toresearch centres, laboratories, universities,business centres and incubatorsare vital partners in the technologysectors.• More than 4,000 acres (1,700 ha)fully equipped and available at thelowest prices in Europe© EXXONMOBIL CHEMICAL FILMS EUROPE, INCEXXONMOBIL CHEMICALFILMS EUROPE, INCSet up in the Belgian Luxembourg province, 500people make oriented polypropylene film for wrappingfood and non-food products. Over 95 % of theproduction is exported.© FERREROFERREROOne of the world leaders in the chocolate andconfectionery sector: Arlon is one of the company’slargest production units in the world.8

MEN AND WOMENWallonia has developed an extended, highlyperforming educational network of colleges,universities and graduate schools. The trainingmeets market requirements since the largemajority of graduates from higher or universityeducation get a job as soon as they finishtheir studies. Businesses benefit from a qualityworkforce: productivity is 20 % higher thanthe European average…10

300 public and privatecentres of research and morethan 11,000 researchers20 centres of excellenceserving the competitivenessof companies9 university centres opento the world and closeto 200 spin-offs createdInnovate11,000 researchers serving innovationBasic research, applied research, public or private laboratories,high level university training and centres of excellence: Walloniahas huge resources serving business performance.Competitiveness centres and corporate networks6 competitiveness centres (Aeronauticsand Space, Agro-industry, Life Sciences,Transport and Logistics, MechanicalEngineering and environmental technologies)take part in the new growthdynamics initiated by the Governmentand position Wallonia at the heart ofthe Knowledge Communities. Innovativeprojects arising from public andprivate initiatives (companies, universityresearch centres, training centres) arealso supported in order to create thetechnology of tomorrow.Moreover, numerous companies haveformed networks in order to developtheir business and increase their competitiveness.14 sectors are currentlyinvolved: autoMobility, solid waste, ecoconstruction,space, nutrition, clinicalresearch, ICT, transport and logistics,construction, micro-technologies, plasticsinnovation, sustainable energy, image,sound and text technologies andphotonics.. The companies extend theirinternational contacts and prove to bemore innovative.This offensive strategy places Wallonia among the mostsuccessful regions of EuropeJean StéphenneCEO and Chairmanof GSK Biologicals“The four large universitiesare playing a part in the industrialredeployment. Thevice-chancellors now considerthey have a part to play ineconomic development. Consequently,the universitiesare closer to market requirementsand current industrialdevelopments. They seechange positively, and likethe SMEs, want to contributeto it”. The success of centresof competitiveness will not beable to materialize without aclose synergy between all theplayers.”© KRAFT FOODSKRAFT FOODSThe second largest food group in the world hasa soft cheese and snacks factory in Namur and acoffee roasting factory in Liege. Over 90 % of productsmanufactured in Namur and in Liege are forexport.© L’OréalL’OREALOne of the world leaders in cosmetics: the factoryin the Belgian Luxembourg province is the company’slargest manufacturing unit globally. Nivelleshosts l’Oreal Luxury Products’ distribution centrefor northern Europe.11

7.907.246.676.496.065.965.605.264.474.36144.8 (f)124.8121.1115.5111 108.3107.6104.5100IR JPN USA BE FR NL UK IT LU NL USA BE FR NL UK IT DE ES JPNAVAILABILITY OF A SKILLED WORKFORCESource: IMD World Competitiveness Yearbook 2009PRODUCTIVITY TRANSLATED INTO GDP CREATED PER WORKING PERSON (2008)(EU27 = 100) / Source: Eurostat - (f) = forecastIt is easy to have a skilledworkforce in BelgiumCorporate managers rank Belgium highly, almost on a parwith Japan and France.Productivity in Belgium is much higherthan the European average.This is explained by a motivation of workers that is amongthe highest in the world (survey- IMD World CompetitivenessYearbook 2009). It is a major advantage of the Belgian workforce.Multicultural and multilingual,the workforce in Wallonia is a real richnessWallonia has always benefited frommany external influences. This naturalopenness to the world can be explainedby several factors: proximity ofmajor European countries, presenceof international institutions, an importantindustrial history, an attractiveeducational system and the flow ofworkforce. In Wallonia, multiculturalismstands out: this cultural richnessgoes hand in hand with a knowledgeof foreign languages that is proven tobe among the highest in the world (accordingto the OECD).JAN WILLEM DEKKERExecutive Vice PresidentCarlson Wagonlit TravelBenelux“We want to be where ourcustomers are. We havedecided to set up in the verycentre of Wallonia in order tomeet the needs of the Walloonpeople. Louvain-la-Neuve wonthe wager for its accessibilityand for its “favourable labourpool”, receptive to travellingand languages. Moreover, wefind ourselves within auniversity environment and agrowing economic area”.© MÖLNLYCKEMÖLNLYCKEEuropean leader specialized in the manufactureand distribution of single use surgical consumables.The Waremme site runs a production andsterilization factory, a customer service sectionand a distribution centre serving clients acrossEurope.© A. STEVENSNOMACORCPresent in 35 countries, Nomacorc represents over30 % of the synthetic stoppers market. Its stoppermanufacturing and finishing factory is located inWallonia, in the vicinity of Liege.13

ENHANCING YOURCOMPETITIVENESSAMONG THE MOST ATTRACTIVE IN EUROPERecent steps taken by the Wallonia Governmentaimed at reducing any anti-economictaxation to a minimum (in particular thesuppression of tax on power, the tax exemptionof investments involving equipment andtools) make Wallonia the least taxed regionof Europe and of Belgium.Government authorities have made Belgianand Wallonia taxation one of the most competitiveof countries in the Euro area, both forcompanies and for expatriates.This political will is accompanied by considerablefinancial assistance at all stages ofthe company development: set up, equipment,R&D, employment, training, exports,etc. An entire range of regional and Europeanaids that make Wallonia one of the mostattractive regions of Europe.14

Corporate tax in 2009(* average effective rate after deduction for notional interest)Ireland 12.5 %Austria 25 %Denmark 25 %Greece 25 %Portugal 25 %The Netherlands 25.5 %Belgium * 26 %Finland 26 %Sweden 26.3 %United Kingdom 28 %Luxembourg 28.59 %Germany 29.44 %Spain 30 %Italy 31.4 %France 33.33 %Source: KPMG’s corporate and indirect tax rate survey 2009A competitive nominal tax rateThe nominal corporate tax is highly competitive comparedwith the other countries of Western Europe.In addition, simple and profitable tax arrangements can makethis nominal rate even lower. For example, small and mediumsize companies with a small taxable income can benefit froma reduced rate of taxation.Taxes are drastically reduced.A system unique in Europe!Another example: with the concept of “notional interest deduction”,financing based on equity is processed in the same way asfinancing based on loan. As a result, companies can deduct afictional interest each year, based on their equity. This particularsystem, which is unique in Europe, brings the corporate tax rateback to an actual rate of approximately 26 % on average.Take advantageOF SMART CORPORATE TAXATIONAdvance Tax Ruling: the tax authoritybecomes your partner!The tax authorities can analyze and calculate tax consequencesbased on a specific situation or transaction. This is fundamentalin assisting businesses in their choices and in determiningthe future impact of decisions in terms of direct and indirecttaxes.This procedure guarantees legal certainty for investors in compliancewith international laws.There are also particularly favourable tax regulations for differenttypes of businesses. These regulations - which make useof the “cost plus” or “resale minus” systems - apply to servicecentres (shared service centres, call centres, etc) and distributioncentres.Expatriates: a fair and favourable regulationA special tax regulation can apply to non-residents, foreignexecutives and scientists temporarily in Belgium.First advantage: business expenses are tax exempt for some actualadditional expenses: moving costs, certain trips to the homecountry, education fees for children, “tax equalization”, etc.In addition, they are only taxed on revenues from work in Belgium,and not on professional activities abroad, including businesstrips.© A. STEVENSSAINT-GOBAINThe world leader in glass crafts business hasbased its Benelux head office in Namur provinceand has a network of over 50 subsidiaries. Saint-Gobain Sekurit Benelux, Autover Distribution andSaint-Gobain Performance Plastics have four differentsites in Wallonia.© SCA HPSCA HPEuropean leader in the manufacture of paper hygieneproducts, packaging products and paperfor newspapers, produces mainly in the surroundingsof Verviers, a toilet paper unique in Europeamongst which 90 % is for export.15

BenefitFROM FINANCIAL INCENTIVES AND ACCESS TO CAPITALA complete system of financial incentiveshas been implemented to make iteasier to set up a business in Wallonia.In addition, several very useful Europeanfinancial assistance programsare also available.These incentives not only are a significantcontribution to the cost of settingup a business (up to 20 %), theyalso lower tax and social costs, promotehiring and staff training, make iteasier to pay for consulting, help withexport plans and promote the use ofrenewable energy and environmentinitiatives.Moreover, access to venture capital ismade easy thanks to a large numberof private or public funds, readilyavailable to participate in creating orexpanding successful businesses. InWallonia, more than elsewhere, businesseshave the reputation of offeringa high return on investment in themedium range.© SHANKSSHANKSOne of the biggest European independent companiesin waste management, industrial cleaningand soil rehabilitation is in Seraing, in Mont-Saint-Guibert and in Hainaut province where it also produceselectricity from gas from disposal centres.© SIEMENSSIEMENSOne of the leaders in technological solutions incommunication, energy, lighting, transport, securityand health for businesses and consumers. Operatesin Wallonia mainly in development, maintenance,installation, consulting businesses.16

A TRADITION OF OPENNESSWallonia’s know-how, quality of products andnatural resources have been highly successfulall over the world for a very long time and many‘Wallonians’ have become famous worldwidefor centuries.The political will to support the export capacitiesof Wallonia businesses is generating spectacularresults. The volume of exports is risingeach year in all sectors and is making the regionone the largest exporters per capita.Over time, Wallonia has proven to be a welcomingplace for international businesses,whose activities occupy an important place inthe economy.That is why the Wallonia government has createdan agency that is a unique partner for foreigncompanies wishing to set up a business in Wallonia.The main goal of this agency is to provideinformation, assistance, contacts and solutionssuited to prospective foreign investors.18

% EXPORT SALES % IMPORT SALESMARKET SHARE 2007 2008 (AS A %)211816141370.00 65.0052.00 46.1022.00 21.40 23.00 21.2011.00 13.50 9.00 7.504 43 3353 32 32 2 2 210BE NL DE FR USA JP% OF SALES MADE ON EXPORT AND ON IMPORTSource: AwexUK FR DE BE NL PL IT HU SE CZFOREIGN INVESTMENTS IN WESTERN, CENTRAL AND EASTERN EUROPESource: Ernst & Young annual barometer on Belgian attractiveness 2010An economic tradition based on tradeWallonia is a region that has always based its development ontrade with adjacent countries but also with distant countries.The ideal geographic location and the high quality of transportfacilities have also heightened this natural predisposition ofWallonia businesses to explore foreign markets.Investments confirm the attractionof WalloniaBelgium ranks 4 th among the 20 most attractive European countriesin terms of investments, and attracts 6 % of all foreign investmentprojects in Europe. The survey carried out with internationalcorporate managers confirms the benefits of its centrallocation in Europe, its sound logistics infrastructure and its targetedfinancial incentives (Ernst & Young Research 2010).ExportWALLONIA, A REGION NATURALLYOPEN TO THE WORLDA real exporting powerWallonia exporting power also shows up in the figures. For around adecade, exports have continued to grow considerably (close to 10 %per year on average), which is way ahead of the European averageand most of the neighbouring countries. A genuinely impressiveperformance, especially when we know that over half its GDPcomes from exports, in a wide range of sectors clearly illustratingthe diversity of the production performance from our businesses.Breakdown of export sectors (% of total)Chemistry 26,7 %Metallurgy 17 %Machines and equipment 11,6 %Plastics 8,9 %Agrofood 6 %Mineral 4,5 %Stone, cement, ceramics and glass 4,1 %Transport 3,9 %Animals 3,6 %Optics and precision 3,3 %The Wallonia Export andForeign Investments Agency:a passport for growthThanks to its experience and missionsfor promotion, information, training andconsulting about Wallonia, the WalloniaExport and Foreign Investment Agencyis a genuinely efficient partner to allbusinesses.One hundred and five offices worldwidecan assist you in analyzing, exploring,and developing your internationalmarkets. Many experts in all sectorswill inform and assist you in projectscanvassing foreign clients. Financialassistance can also be granted for certainpurposes.Source: AWEX - evolution of Wallonia Export - 2009© SOLVAYSOLVAYThis Belgian crown jewel stands out in the fieldsof chemicals, pharmaceuticals and plastics and ispresent in 50 countries and employs over 30,000people. Its Chemicals and Plastics site is located inthe province of Hainaut.© SONACASONACABased in the province of Hainaut, SONACA is aworld leader in the design and manufacture of leadingedges for plane bodies for Airbus, Embraerand Dassault Aviation.19

The power to decide quicklyGovernment officials and authorities in Wallonia have the advantageof a great proximity, not only physically, but also culturally.An application can rapidly cross the various levels ofresponsibility and lead to a quick decision. Meeting a ministeror a top official is much simpler than in many other countries.Moreover, useful information and advice are readily availablethanks to the presence of local administrative branches. InWallonia, economic development is a priority in which all levelsof power participate.Foreign businesses in Walloniaand very happy to be there!The authorities’ strategic choice to promote foreign investmenthas proven to be highly effective. Some foreign businesses havealready set up in Wallonia. For example, from 2000 to 2009, foreignfirms have invested in total more than 6 billion Euros in Wallonia,which lead to the creation of close to 18,000 direct jobs.Qualitatively, these businesses state that they are extremely satisfiedwith the hospitality and assistance granted to them in theframework of their setting up and development. [INRA]A COMMITMENT TO GROWTHThe government policy has propelled Wallonia in an era ofgrowth and development. Priorities have been set forth: to focuson certain sectors to become European leader (these arethe so- called Competitiveness Centers), to promote scientificresearch and collaboration between research, training centresand businesses, to strengthen assistance to business start-upsand to reduce tax pressure on companies in certain regions. Additionallythe government has stepped up efforts to train youngpeople, in particular in learning foreign languages. A total of1.5 billion Euros have been invested over a 4 year-period.With such a program, Wallonia has become one of the mostcompetitive regions in Europe!PATRICK LONCOLAdministrative and FinanceManager, L’Oréal LuxuryProducts Belgilux“With help of the Walloniaauthorities, we were directlyinvolved in an economic BusinessPark close to Brusselsthat offered interesting competitiveadvantages in theeyes of the group and a proximityof suppliers and clients.It is easy to understand thatwe found the best conditionsthere for running our businessin a healthy setting”.TECHSPACE AEROA Wallonia company originally, and part of the SA-FRAN Group since 1989, a specialist in modules,equipment, services and test benches for aeronauticaland space engines.© TECHSPACE Aéro © A. STEVENSTOTAL PETROCHEMICALS - FeluyThe greatest production’s plant of polymers plastics ofthe Total group. Each year, 1,200,000 tons of granulatedof polypropylene, polyethylene and polystyrene are producedin Feluy. Linked to the plant, the research centerof the group combines technological innovation, developmentof new products and customers’ help desk.21

RelaxNATURE, CULTURE, LEISURE, FUN, etcWallonia is not short on strongpoints or attractions. Harmoniouslyalternating rural and urban areas,cities and villages, Wallonia is a landfull of charm in many aspects: hospitality,love of a good time, age oldtraditions, its architectural masterpiecesrecognized as Unesco WorldHeritage, a legendary gastronomy,warm-hearted welcome, relaxation,and more.But beyond its evident charms thatdraw hundreds of thousands of touristseach year, Wallonia is also a qualityarea where the following are easy tofind: spacious accommodation, accessibleschools, and a remarkablehealth and social protection system.International studies prove it.© TNT EXPRESSTNT AirwaysWith a large ground and air transport networkfor express freight in Europe, TNT Airways set upits European sorting centre in Liege Airport andconnects daily to more than 200 countries worldwide.© UCBUCBA Belgian biopharmaceutical company, a world leaderin areas such as central nervous system, theimmune system, allergies, respiratory illnesses andoncology. In particular, UCB has set up its main R&Dand production centre in Wallonia Brabant province.22

Acting as an interface with European, federaland regional governments and local entities, theOFI will help you find a global solution to set upyour business and will take care of your needs interms of land and property (search for buildingsand land), finance and tax (tax optimization),recruitment and training.To find out more about what Wallonia has to offer tobusinesses in your sector or to get specific informationfor your company, if you have any question, wish toreceive information or documentation, please do nothesitate to...CONTACT USWALLONIA EXPORT & INVESTMENTOFI - Office for Foreign Investorswww.investinwallonia.bePhone: +32/81 332 850Fax: +32/81 332 869welcome@investinwallonia.bePhoto Credits:Bruno Balsama (cover, 10) - Generis (2) - Getty (4, 14, 17 2 ,18, 22 2/3 , 23) - NATO (5 1 ) - Jacky Collot (5 2 , 22 1 ) - Alamy(5 3 ) - ORW (5 4 ) - André Stevens (cover, 6 1 , 11 1/2/3 , 16 2 , 17 1 ) -Dreamtime T. Hajek (6 2 ), R. Milert (6 3 ), Jolin (8 2 ), M. Frolow(16 1 ) - TNT (6 4 ) - Thalys international (6 5 ) - Port de Liège(6 6 ) - Serge Brison (8 1 ) - IDELUX (9 1 ) - Codic (9 2 ) - MRWDircom Jean-Louis Carpentier (12 1 , 21 1/2/3 ) - ElectrabelChicago (USA): +1 312 357 63 49Tokyo (Japan): +81 3 3556 1061Shanghaï (China): +86 21 6437 9489With over 40 offices worldwide(12 2 ) - Centre Spatial de Liège ULG (12 3 ) • Architect:Philippe Samyn (cover) - M. Boucquillon (5 2 ) - R. Bastin(11 1 , 17 1 ) - Somville, Presciutti & Partners (8 1 ) - P. van derStraeten & Sigma 3 (16 2 ) - P. Hebbelinck (22 1 )Concept: dialectiq.com & generis.be • Editeur responsable: Philippe Suinen, Place Sainctelette 2 - 1080 Bruxelles