Partnership 7 CCI Kragujevac Serbia CCI Tirana Albania

Partnership 7 CCI Kragujevac (Serbia) CCI Tirana (Albania) CCI Leipzig (Germany) Belgrade, December 5 th 2008

“Establishment of Western Balkans Automotive and Supplier Industry Excellence Centre”

Why choosing Saxony/Leipzig Region as a project partner? • Saxony has long tradition of automotive industry • It has re-vitalized its automotive industry during the transition period succesfully • in Saxony they have created functioning industrial networks and clusters especially in the automotive industry • Leipzig has relatively fresh experiences in becoming an investment site of automotive and supplier industry • Leipzig is a pretty good role model for re-establishing automotive industry in Western Balkans, especially in Kragujevac

Automotive and supplier industry of Leipzig consists of: • Original Equipment Manufacturers (BMW, Porsche) • Suppliers of parts and components (Faurecia, Takata Petri. . . ) • Industrial Networks (AMZ, AMZK, Autoregion Leipzig, Precision cast) • Logistics Services (AFG Gmb. H) • R & D - Services (KUZ Leipzig) • Education of Engineers and skilled work force at OEMs, Technical Highchool of Leipzig • Access to a skilled labour pool (PUUL Gmb. H)

Access to skilled work force: PUUL Gmb. H supports the industry

Establishment of Western Balkans Automotive and Supplier Industry Excellence Centre: Establishing a “Centre of Excellence” for promotion and support of automotive industry investments at the CCI Kragujevac to promote business, development and investment capabilities of automotive industry of Western Balkans and to attract Foreign Direct Investors to Western Balkans region. Establishing a “Centre of Correspondence” at the CCI Tirana with comparable tasks. Using and transferring the experiences made in the traditional German automotive Region of Saxony, especially in Leipzig.

What was triggering the idea behind the project? • The decision of FIAT to overtake the Serbian Automobile-producer Zastava is to be seen as pre-condition for an economic renaissance of Kragujevac as the traditional automotive site o Central Serbia. • The new FIAT site in Kragujevac will have a benchmark function in terms of labor costs within the global site management of FIAT and its suppliers. • During the first wave of investment the creation of about 7. 000 direct jobs at FIAT and its suppliers is realistic. Experiences of comparable East German automotive regions show that a long-term regional job effect of 35. 000 employees is possible. • To make such a scenario come true, Kragujevac should not be developed as an assembly site only. Instead of doing so, the whole supply chain is to set up in the region to save the site in the long run and to overcome the low wage-status. • That’s why the investment process has to be co-ordinated by a proper institution – the Centre of Excellence

Central tasks of the Centre of Excellence: advising and accompanying of investors in terms of chosing investment sites advising and accompanying of regional actors in terms of acquisition of investors setting up regional competences to develop the economic region building up and managing economic clusters in the field of automotive and supplier industry and belonging services providing services to attract and select skilled personnel for new investors and existing companies

Common goal of all activities raising the level of competitiveness of the automotive industry of Western Balkans at the market of foreign direct investments improving of the regional economic framework for investors especially in the automotive and supplier branch of Western Balkans strengthening the role of CCI as prime representers of the interests of the regional economy launching new forms of services and cooperation of Chambers contribution for the creation of new jobs as well as saving existing jobs organizing and extenting of collaboration and co-operation of the CCIs involved in the project (Leipzig, Kragujevac, Tirana) and their member companies.

Conceptional background of the Centre § cluster-oriented supply-chain idea based on regional competences. All successful European automotive regions base on this concept. With the investment of FIAT and ist system suppliers the pre-conditions for such a concept are delivered. § structural pre-conditions - concentration of the branch („critical mass“) - nearness to lead-buyers, highly specialized suppliers and service providers - high innovation pressure due to direct competition - exchange and knowledge transfer with universities and research institutions - direct (informal) contacts § institutional pre-conditions - knowledge about development of networks and their inherent mechanisms - political will - willingness and ability of all relevant actors to collaborate/co-operate

Education and coaching activities to be realized during the project: Activity 1: “Training and Development of Personnel” Activity 2: “Co-operation Management and Network Creation” Activity 3: “Marketing and Distribution of Services” Activity 4: “ICT Platform”

Activity 1: Training and Development of Personnel • education of skilled workforce and the management of the centres • imparting of knowledge about key-skills in moderation and negotiation as well as in assesment, selection and development of personnel • imparting of knowledge about actual trends in the automotive industry, especially the relation between OEMs and suppliers, investment- and site-decisions, site-management of global companies • training in the field of regional management in automotive-regions • trainining workshops will take place parallel in Serbia and Albania and will be used for active team-building and the evaluation of the participants • case studies will be used for the trainings

Activity 1: Training and Development of Personnel Step Content Place Responsible Partner and Timetable 01 Preparation of the training of personnel including the belonging material Kragujevac Tirana International Expert (Zorn) December 2008 -August 2009 02 Realization of the training and coaching of personnel Kragujevac International Expert (Zorn) February-August 2009 2 x 7 days 03 Realization of the training and coaching of personnel Tirana International Expert (Zorn) February-August 2009 2 x 3 days 04 Preparation of the Workshop “Trends and General Conditions in the Automotive Industry; Site Selection of OEMs – Experiences from Saxony/Leipzig” Leipzig CCI Leipzig December 2008 -February 2009 05 Preparation of the Workshop “Selection and Development of Personnel – Experiences from Saxony/Leipzig” Leipzig CCI Leipzig December 2008 -January 2009 06 Study visit: Realization of the Workshops: Leipzig “Trends and General Conditions in the Automotive Industry; Site Selection of OEMs – Experiences from Saxony/Leipzig” “Selection and Development of Personnel - Experiences from Saxony/Leipzig” CCI Leipzig February-March 2009 5 days 07 Study visit: Realization of the Workshop „Site Selection from the Perspective of OEMs and System suppliers” including evaluation of existing presentation material CCI Leipzig External Expert (Schmidt) April 2009 5 days Leipzig

Activity 2: Co-operation Management and Network Creation • The Centre should be a co-ordination platform to force the process of forming regional industrial networks and clusters. • In a case study practical experiences of cluster-building in Saxony will be shown. Those experiences will be adapted by the Western Balkan Partners. • Contents of the case study: - tasks of municipalities in terms of supporting the regional economy in Saxony - structure of actors in the field of supporting regional economy - standards of an intgrated strategy of supporting regional economies - cluster as a strategy of economic policy - the cluster strategy of Saxony - cluster initiatives in Saxony especially in the Automotive and supplier industry - Automotive region Saxony: Regional comparison between Leipzig and Vogtland - experiences with creating industrial networks in Saxony

Activity 2: Co-operation Management and Network Creation Step Content Place Responsible Partner 01 Making of case study „Cluster Strategies in Saxony“ recommendations for the Western Balkan region Leipzig Kragujevac CCI Leipzig in collaboration with International (Zorn) March-April 2009 02 Preparation of the Workshop „Setting up Regional Networks in the Automotive Sector and Structural change of Industry Leipzig CCI Leipzig March-April 2009 03 Realization of the Workshop „Setting up Regional Networks in the Automotive Sector and Structural change of Industry Kragujevac CCI Leipzig May-June 2009 4 days 04 Developing of a concept for Creating Institution Networks Kragujevac Tirana CCI Kragujevac CCI Tirana May-June 2009 05 Creating Institution Networks on the Regional Level Kragujevac Tirana CCI Kragujevac CCI Tirana June-July 2009 06 Creating of a long time service concept Kragujevac Tirana CCI Kragujevac CCI Tirana June-July 2009

Activity 3: Marketing and Distribution of Services • development and realization of adequate service marketing for the centres via potential clients, customers, co-operation partners. • preparation and realization of workshops in Leipzig as well as a round table in Kragujevac to create marketing concepts for Western Balkans Automotive and Supplier Industry Excellence Centre and Correspondence Centre The project partners will work on the following points: • including marketing in the structure and strategy of the organization • analysing the target groups as well as the customer potentials • definition of a transparent product policy together with a clear service portfolio • structuring of advertising material such as flyers, prospects • making the entire staff responsible for Marketing and best customer relation • Creating a clear and pragmatic structure of the entire marketing concept • development of an efficient Customer Relationship Management

Activity 3: Marketing and Distribution of Services Step Content Place Leipzig Responsible Partner 01 Preparation of the Workshop “Marketing and Distribution of Services” regarding the contents Marketing Strategy, Marketing Organisation, Marketing Planning, Marketing Budgeting, Marketing Controlling CCI Leipzig June-July 2009 02 Study visit: Realization of the Workshop “Marketing and Leipzig Distribution of Services” regarding the contents Marketing Strategy, Marketing Organisation, Marketing Planning, Marketing Budgeting, Marketing Controlling CCI Leipzig July 2009 (5 days) 03 Creating of a marketing concept for promoting the Western Balkans Automotive and Supplier Industry Excellence Centre Kragujevac CCI Kragujevac July-August 2009 04 Creating of a marketing concept for promoting the Centre of Correspondence Tirana CCI Tirana July-August 2009 05 Preparation of a Round Table about the Project with decision makers from the regional and central state level Kragujevac CCI Kragujevac August-September 2009 06 Realization of a Round Table about the Project with decision makers from the regional and central state level Kragujevac CCI Kragujevac September 2009

Activity 4: ICT platform • Advise and assistance in web sites concepts • creating web sites of Western Balkans Automotive and Supplier Industry Excellence Centre and Correspondence Centre

Activity 4: “ICT platform” Step Content Place Responsible Partner 01 Advise, assistance in creating a Concept for the Website Kragujevac/ Leipzig CCI Leipzig August-September 2009 02 Creating the website for the Western Balkans Automotive and Supplier Industry Centre of Excellence Kragujevac CCI Kragujevac 03 Creating the website for the Centre of Correspondence Tirana CCI Tirana

Promotion and attraction of FDI in WB automotive industry Center of Excellence Boosting of innovation and R&D in WB automotive industry Education and quality standards introduction

SYNERGY PARTNERSHIP RESULTS

Activities to involve other actors • representatives of regional CCIs (Uzice, Kraljevo, Krusevac, Valjevo) as well as representatives of the local authorities (e. g. City of Kragujevac) and educational institutions (University of Kragujevac) will attend selected workshops and the Round Table to be organized in Kragujevac in order to - boost capacity building and network/cluster establishment - create better business environment for companies (FDI) • all Western Balkans National Investment promotions agencies/CCI will be contacted in order to enable flow and procedures of relevant information between them and Western Balkans Automotive and Supplier Industry Excellence and Correspondence Centres

Partners CCI Kragujevac CCI Leipzig CCI Tirana IIWB – World Bank Group SPARK – BSC Kragujevac SIEPA City of Kragujevac CCI CCI CCI Serbia Užice Kraljevo Kruševac Valjevo

IWB and SPARK activities IIWB World Bank Group: Road show in Germany and France where bilateral meetings will be arranged with decision makers in the automotive industry. Balkans Automotive Industry Conference SPARK – BSC Kragujevac Creation of Study on the actual situation in automotive components SME in Sumadija and Pomoravlje Region Financing the introduction of quality standards in automotive sector

Activities to maximize the visibility of the project To ensure project visibility during the project realization: • agreements, activities and results of the project, the content of the workshops and the Round Tables will be made generally visible via published articles in the local and regional press as well as on press conferences • a website will be made with one open public part to inform regularly about the project

Visibility: Project presentation “Auto expo” Fair, Kragujevac November 26 th 2008

Thank you for your attention