such as the Actia Group, Casco, Valeo, Autoliv - Invest in Tunisia ...

A sector with strong investment potentialSeveral key activities have considerable investment potential.Manufacture of automotive parts by major suppliers of parts such as the Actia Group, Casco, Valeo, Autoliv, Kaschke, JohnsonControls, Lear, Leoni, Bosch, Zodiac, which supply major carmakers such as Renault, Peugeot, Citroen, BMW, Volkswagen, Mercedes,Fiat, Audi, Toyota, Nissan...Manufacture of aeronautical parts and components: an increasingly active branch in Tunisia.Thanks to Tunisian know-how and experience in electrical/electronic industries, there are more and more companies interested insetting up operations to manufacture aeronautical products and components in Tunisia. Companies such as Anjou Electronique,Latecoere, the Safran Group and Zodiac in France or Eurocast in the US respectively produce electrical/electronic components forAirbus, Boeing, Eurocopter, Dassault, Embraer and Bombardier.A number of major international groups have set up development centers in Tunisia, reflecting the determination of privateoperators to engage in high value-added activities and the transition of the national production apparatus to a new level of highervalue activities. One example is ST Microelectronics, which has a semi-conductor development center, and Sagem and Leoni, whichhave development centers for their activities. These centers employ Tunisian engineers, who have high capacity for innovation andassimilation of new technologies.Several foreign investors have already chosen Tunisia to set up operations in the Mediterranean Basin. This choice providessubstantial benefits and helps increase production capacity by means of successive expansion of their activities in Tunisia.Electrical industries• BOSCH• CASCO• CEGELEC• DONCASTER CABLES• DRÄXLMAIER• FRITZ DRIESCHER• GEC ALSHTOM• GENERAL ELECTRIC• HAIER• HEINRICH KOPP• KASCHKE• KBE ELEKTROTECHNIK• LATÉCOÈRE• LEAR CORPORATION• LEONI AG• OPTELEC• PHILIPS• RADIALL• SOCOMEC• SOMFY• SYLVANIA• VALEO• VOSSLOH SCHWABE• ZODIACForeign InvestmentPromotion AgencyRue Salaheddine El AmmamiCentre Urbain Nord, 1004 TunisTel.: (216-71) 75 25 40Fax: (216-71) 23 14 00E-mail: fipa.tunisia@mdci.gov.tnlondon@fipa.co.ukwww.investintunisia.tnElectrical, electronicand home appliance industriesi n Tu n i s i aElectronic industries• ACTIELEC• ANJOU ELECTRONIQUE• ASTEEL• CONVERGIE• FITELEC• FUBA PRINTED CIRCUITS• GROUPE ACTIA• GROUPE COFIDUR• GROUPE SAFRAN• INTRAM BARWELL LIMITED• ISOPHON VERTRIEB• JOHNSON CONTROLS• KASCHKE• LACROIX ELECTRONIQUE• MENTOR• PHILIPS• PHOENIX• SAGEM• SIEMENS• THOMSON MULTIMEDIA• WECO WESIndustry Promotion Agency63, rue de Syrie, Belvedere1002 TunisTel.: (216-71) 79 21 44Fax: (216-71) 78 24 82E-mail: api@api.com.tnwww.tunisianindustry.nat.tnBy investing in Tunisia you will be able to take advantage of investment opportunities, especially in the following activities:• printed circuits, electronic cards• coils and transformers• condensers and resistances• connectors• wiring and cables, cable harnesses• batteries• lighting apparatus• switchesC/R Serviced - 71.752.889Export Promotion CenterCentre Urbain NordBP 225 – 1080 Tunis CedexTel.: (216-71) 23 42 00Fax: (216-71) 23 73 25E-mail: info@cepex.nat.tnwww.cepex.nat.tn2007Technology and know-how !• circuit breakers.

A high performing sectorA major sector in Tunisia’s economy, electrical/electronic/home applianceindustries have been posting remarkable performance, both on the localmarket (with added value growing by 15% a year) and in the export sector (up20% on average over the past five years).Tunisian production has doubled over the past five years, to 3,020 million Tunisiandinars in 2006.The sector accounts for some 10% of overall jobs in manufacturing industries.The success of Tunisia’s electrical/electronic/household appliance sectoris attributable to acquisition of know-how, the wide range of items produced,optimized production costs, strong innovative capacity, the presence of majorinternational groups, and the proximity of European markets.Key figures305 companies (employing 10 people and over) provide•more than 42 000 jobs.178 of these companies export their entire production.•208 companies are held partially or entirely by foreigners.•2,500 million Tunisian dinars are earned from exports, vs.• 3,000 million dinars in imports.More than 325 million Tunisian dinars have been invested•in the sector, 200 million Tunisian dinars in foreign directinvestment over the past five years.Studies carried out by internationally-renowned consulting firms show that Tunisia is a profitable investment site.Profitability index*Country Self spools and transformers Electronic cards for the automotivesectorMagnetic-thermal circuit breakersTunisia 10.98 7.17 4.21Hungary 4.01 3.13 2.62Morocco 7.27 4.95 2.86Poland 3.01 2.43 2.26Czech Republic 2.54 2.03 1.77Rumania 7.88 5.21 3.40Turkey 1.26 1.30 1.51Germany -7.00 -3.65 -1.12Spain -3.75 -1.58 0.20France -4.33 -2.26 -0.22Italy -2.15 -0.93 0.25A favorable environmentTunisia’s geo-strategic location and modern infrastructure facilitate access tocompanies located in the countries that constitute its main key markets, allowingfor just in time production.Less than two hours’ flight time from European cities, Tunisia has seven internationalairports located throughout the country, with some 100 foreign airlines runningmore than 1,300 weekly flights to Europe.There are also six commercial ports and a modern maritime fleet that meets normsof security and rapidity and provides regular service to the main European ports.Investment can be freely made in the electrical/electronic sector. Foreigninvestors can hold up to 100% of capital in a given undertaking withoutauthorization. They can also repatriate profits and gains from the sale of capitalinvested in foreign currency, including appreciation.TunisiaDevelopment of the electrical/electronic sector in Tunisia is based on a two-prongedstrategy:• manufacture of finished products for the local and African markets and• manufacture of sub-assemblies or components for export to Europe.Mastery of CMS (Control Management Systems) technologies has allowed formanufacture of large- and medium-scale series for European electronic industries.There is considerable investment in the sector, with FDI flows over the past five years representing an average of 14% of overallFDI flows in manufacturing industries.A competitive sectorExports by the electrical/electronics/home appliance sector continue ona strong, steady growth path. Thanks to integration and strong exports, thesector’s rate of coverage has risen considerably, up from 66% in 2000 to 83% in2006, well above the national average of 79%.The sector’s main clients are France, Germany and Italy.Cable harnesses reflect excellence. Automotive cable harnesses for exporthave significantly contributed to growing production in the sector, accountingfor 31% of overall production in the electrical/electronic sector (42% in electricalindustries). Tunisia has become one of the main production sites for cableharnesses, with a growing share of sales on foreign markets, currently one of thetop 10 suppliers of cable harnesses to the European Union.Breakdown of exports in 2006In %4637Wiring, cables and cable harnessesElectronic equipmentGenerators and transformersMain exports• Wiring, cables and cable harnesses• Cut-off and electrical command apparatus• Transformers• Printed circuits• Regulatory material• Refrigerators, material and machines for coldsystems.Tunisia’s competitive advantages in electrical/electronic industries, ECORYS-NEI and Business Mobility International, March 2004* Profitability index:this is the updated value for net inflow of funds (over 10 years) divided by the updated value of investment needed to implement the project.A project is considered acceptable if its profitability index is above 1.An attractive sectorAvailability of skilled manpowerTunisia has young experienced manpower that is becoming available inincreasing numbers and greater skill levels, able to learn rapidly. Local andforeign companies appreciate the flexibility, training capacity, skills andqualifications of Tunisian workers.Total annual staff costs for an engineerIn EuroTunisiaRumaniaMoroccoHungaryCzech RepublicPolandTurkeyItalySpainFranceGermanyYoung graduates of Tunisian engineering schools and training centers willnot only meet the growing need for skills in the industrial sector but alsowork with businesses in the sector to boost innovation and develop theproducts of tomorrow.11,61313,49916,79420,65821,05924,71440,77743,91646,55955,45668,536Tunisia’s competitive advantages in electrical/electronic industries, ECORYS-NEI and Business Mobility International, march 2004An appropriate training systemStressing the mastery of knowledge and technology as an essential factor for success, engineering schools, higher institutions of learning,and vocational training centers place a large number of engineers, higher technicians and workers on the job market every year. Thesegraduates are highly skilled, with staff costs that are very competitive compared to competing countries.• 10 engineering schools• 10 higher institutions of technological studies• 10 sectoral centers• 20 vocational training centers offering various courses of study.``Tunisian engineers make up a skilled, motivated,highly responsible team. Employees have learnedGerman in just a few months. Better production,productivity and results have led to setting up of asecond plant in the space of just a few years’’.Mr. Herbert Baumgartner, Director of KASCHKETunisia has been a member of WTO since 1993 and it signed anassociation agreement with the European Union in 1996 that will leadto implementation of a free trade zone in 2008. Tunisia has also signedpreferential agreements with Maghreb and Arab countries. Entry into force of theregional agreement governing an Arab free trade zone will soon take place.Procedures to set up a business are simple and can be carried out at the onestopshops available at the Industry Promotion Agency “API” offices in Tunis,Sfax, Sousse, Nabeul, Gafsa, Gabes and Beja, where you can find all relevantadministrations. Projects’ declaration and legal incorporation of companies canalso be accomplished on line via website www.webentcreation.tunisieindustrie.nat.tn .The investment incentives code provides for a number of incentives in the formof tax/levy exemptions and investment subsidies/bonuses.A technopole has been set up in Sousse devoted to the mechanical, electronicand computer sectors.Support structures for investors. The sector benefits from professional support:• the Technical Center for Mechanical and Electrical Industries ``CETIME’’• the National Electricity Federation ``FEDELEC’’• the National Standardization and Industrial Property Institute ``INNORPI’’.The sector also receives support from the Foreign Investment Promotion Agency,the Industry Promotion Agency, and the Export Promotion Center to develop ideasand to set up companies and export activities.Very pleasant living conditions. Tunisia is a country that has done a good job ofreconciling tradition and modernity. Tunisians are tolerant and hospitable.The climate is mild and there are many facilities: modern residential neighborhoods,many shopping centers and super stores, foreign schools, high level medicalservices, amusement/recreational parks, and extensive tourism infrastructure.`` In Tunisia we have found very high level engineers,managers and technicians, effective import-exportlogistics, slow-growing labor costs, a network of localsuppliers in various areas and simplified customsprocedures’’.Mr. Gaby Lopez, Director General of the Zodiac Group in Tunisia``A sound business operation in Tunisia is an importantstep in our plans to expand operations in North Africa’’.Mr. Kick STAM, President and CEO of PHILIPS LIGHTING BRANCH18National Institute of Statistics8Home appliance equipmentOther electrical itemsTND 1 = USD 0.752 = Euro 0.598 = JPY 87.892 (2006 average)The presence of major international groupsWell known parts manufacturers and principals in automotive and electrical industries have chosen Tunisia to boost growth thanks toexisting, effective infrastructure, reliable regularly-scheduled means of transport, efficient logistics, the professional support of specializedtechnical centers, control laboratories, training capacity and low costs for skilled manpower with ever-better capacity to master complexproduction processes.