XANGA s developments in Debrecen Hungary a new potential

XANGA’s developments in Debrecen, Hungary a new potential for logistic co-operation in V 4 Prepared by Endre Csukás Director V 4 LOGISTIC CONFERENCE 6 May 2014

Location of Debrecen in V 4 DEBRECEN

The city of Debrecen • • • the second largest city in Hungary seat of Hajdú-Bihar county seat of North Great Plain Region Population Debrecen: Hajdú-Bihar county: North Great Plain Region: Hungary: 210, 000 550, 000 1, 550, 000 9, 910, 000 DEBRECEN

Brief history of Debrecen Market town in 1361 Free royal town in 1693 Reformed College Capital city of Hungary founded in 1538 in 1848 -49 and in 1944 Emblem of Debrecen

The economy of Debrecen is the centre of the Great Plain, a large agricultural area. Agriculture has always dominated the economy of the city. Complete structural change of the industry in the 1990’s. NEW PRIORITY: HIGH ADDED VALUE INDUSTRIES PAST PRESENT AND FUTURE • Food processing • Poultry processing • Canned food production • Tobacco processing • Agricultural machine manufacturing • Roller bearings production • Knitwear manufacturing • Printing industry • Block housing factory • Pharmaceutical industry • Medical instruments production • Food processing • Roller bearings production • Printing industry • Pharmaceutical industry • Medical instruments production New high added value industries: • Information Technology • Electronic industry • Health industry • Biotechnology • Functional food industry • R&D based machine manufacturing

TOP 3 companies in Debrecen TEVA Ownership: Activity: Employees: Turnover (2012): Israel Pharmaceutical industry 2400 188 billion HUF (≈ 606 M EUR) FAG Ownership: Activity: Employees: Turnover (2012): Germany Roller bearings manufact. 1260 31 billion HUF (≈ 100 M EUR) NI (National Instruments) Ownership: Activity: Employees: Turnover (2012): USA Electronic industry 1250 130 billion HUF (≈ 420 M EUR)

Debrecen – an educational center • Large number of secondary grammar schools, technical and vocational schools (mechanics, turning, chemistry etc. ) • Cooperation between companies / secondary schools and the university • Debrecen University, with 500 years’ tradition, having over 33, 000 students • Bachelor, master and Ph. D training among others in the following faculties: o Faculty of Law o Faculty of Economics o Faculty of Agriculture and Regional Development o Faculty of Medicine o Faculty of Chemistry o Faculty on Information Technology o Faculty of Engineering o Faculty of Teacher Training o Faculty of Arts o Faculty of Sciences o Faculty of Music

Debrecen – a logistic centre By car: M 35 enabling to cover the 220 km distance within 2 hours. nction rail: the railway By largest Debrecen, trans-European railroad connecting Budapest with Moscow. By air: Debrecen has a Schengen criteria international airport. Distances from the neighbouring countries: DEBRECEN Romania: 50 km Ukraine: 120 km Slovakia: 130 km Serbia: 200 km Helsinki corridor Highway Motorway under construction

Debrecen International Airport • Started operation in 1930 • Strategic Soviet military airport until 1989 • International airport since 2001 • Schengen airport since 2006 Currently, • charter flights to tourist destinations • Wizz. Air scheduled flights to London-Luton and Eindhoven

Debrecen – a tourist centre Flower carnival Conference tourism Medicinal water, spas, thermal tourism

XANGA Investment & Development Group: • private capital investment enterprise, • strategic partner of Debrecen municipality for more than a decade in developing industrial and business infrastructure in the city, • assisted dozens of foreing companies in setting up their subsidiaries in Debrecen and its region. Main focus of activities: • developing new greenfield industrial areas equipped will all public utilities, • developing turnkey industrial and logistic facilities, • providing complex logistic services, • airport and cargo operation, • investment management and technology transfer support, • business development support, post investment services.

XANGA’s phylosophy Development of XANGA’s activities • In 1990’s XANGA as a consultant foreign companies setting up their business in Hungary • No available suitable industrial infrastructure, old brownfield facilities • XANGA started to invest in turnkey indsutrial facilities in early 2000 • Industry requires logistics • XANGA started to invest in logistic facilities in 2011 • XANGA took a share in airport development and operation in 2011 Venture capital investment • First invest in building facilities upto 80% • Then find utilisation • Tailor investment to concrete utilisation Involve professional partners in operation • Have a small management team • Find the right partners to work with in implementation

Target areas for XANGA’s investment activities in the city of Debrecen Regional and Innovation Industrial Park (industrial developments) Debrecen International Airport with Southern Industrial Park (logistic and airport developments)

Debrecen Regional and Innovation Industrial Park • Founded by the municipality in 2000 • Initial size: 40 hectares greenfield • XANGA as strategic partner since its establishment in filling the park with foreing production firms • XANGA’s responsibilities: - to develop the infratsructure and extend the territory of the park, - to take care of the daily management and operation of the park, - to provide turn-key industrial facilities for new tenants, - to assist tenants of the park in their investment and business development. • Current area: 120 hectares (90 ha built in, 30 ha vacant) • XANGA developed 31, 200 sqm of turnkey industrial facilities in 2013 • More than 40 companies • Over 5, 000 employees

Trimodal logistic centre at Debrecen Airport Trimodality: • AIRPORT • ROAD • RAILWAYS Logistic facilities with a total area of 50, 000 sqm to be built between 2011 and 2015: • Cargo halls • Logistic halls • Industrial rails • Railway container terminal 15, 000 sqm ready by now.

Before development

Completed developments Air cargo halls Covered rail terminal Air cargo halls Logistic halls

Focus of development in 2014 „Bring the sea to Debrecen!” ECONN – Eastern Connect: rail container terminal 4 ha area, 3 rail tracks, to be commissioned in September 2014 Partners in operation: Integ. Rail, GYSEV Connecting Debrecen to main European sea ports (Hamburg, Koper etc. ) Rail container terminal

Airport surroundings (113 ha)

XANGA’s link to V 4 by rail Debrecen – Budapest – Bratislava Debrecen – Budapest – Brno – Prague Debrecen ∙∙∙ Kosice ∙∙∙ Rzeszow – Warsaw – Gdansk Rzeszow DEBRECEN

XANGA’s link to V 4 by air Short term plan: Debrecen – Prague WARSAW Mid-term plan: Debrecen - Warsaw PRAGUE DEBRECEN

Debrecen Trimodal Logistic Centre – a new gate for V 4 towards West Romania

THANK YOU FOR YOUR ATTENTION! For more information, please contact us. XANGA Investment & Development Group 4025 Debrecen, Hal köz 3/A II/4 -5. tel: +36 52 534 -950; fax: +36 52 534 -951 e-mail: info@xanga. hu website: www. xanga. hu V 4 LOGISTIC CONFERENCE 6 May 2014