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Modern Production and Warehouse Facility with Office Space for Lease in Pärnu, Estonia

Modern Production and Warehouse Facility with Office …€¦ · HUB in Sweden and in Tallinn for Ericsson; – ATO – assembly to order/ order lead time 2 days + ... NPI (New Product

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Modern Production and Warehouse Facility with Office Space for Lease in Pärnu, Estonia

Modern Premises Offer on Kodara 7, Pärnu, Estonia Lease:

 From January 2013;

 5,156 sq m Production space;

 1,000 sq m Office space;

  794 sq m Warehouse;

 80 parking places for cars, with the additional option to park cargo transport near warehouse.

Benefits:

 Conveniently located with developed infrastructure;

 Distance from:

–  Railway – 1 km

–  Pärnu Harbour – 7 km

–  Pärnu Airport – 7 km

–  Tallinn-Riga Highway – 0.2 km

–  24MW CHP plant – 0.6 km

–  110 kV electrical substation- 0.1 km

 The total land plot of 34,884 sq m enables additional expansion up to 5,500 sq m of buildable area. The detailed plan allows a construction of 1-storey industrial building with a max. height of 12 meters.

2

Production premises

Warehouse

Office premises

Technical rooms

Modern Office Space

3

Lease:

 1,000 sq m Office space on 2 floors;

 3 open office spaces;

 3 private office spaces with 2 or 3 workplaces;

 4 meeting rooms;

 Office kitchen, dinery;

 It is possible to adjust Office space layout to meet tenant needs.

1st floor layout plan

2nd floor layout plan

Modern Warehouse and Production Premises

Lease:

 5,156 sq m Production space;

  794 sq m Warehouse;

 Warehouse ceiling height of 7 m;

 Production premise’s ceiling height of 4.25 m;

 Availability of equipment- Kardex, FIFO, production workstations, warehouse shelves.

4

Technical Specification

5

  District heating;

  2x800A Electricity supply;

  ESD floor & network;

  CAT6 LAN;

  1000 lx work surface lighting;

  Ventilation, cooling system;

  Fire safety system;

  Possible up to 30 Mbit/s network connections.

Available to acquire from former tenant:

  Nitrogen supply (contract);

  Video surveillance system;

  Security and access control system;

  Kardex storage systems; FIFO shelves;

  Warehouse equipment;

  Office furniture.

Warehouse , Production and Office Space Costs*

6

Lease fee:

 Up to negotiations.

Maintenance fee**:

 Warehouse ~1 euro / sq m;

 Office space ~1,5 euro / sq m;

 Production space ~1 euro / sq m.

Public utilities payment:

 Electricity, water, waste removal according to quantity consumed.

*given information about Warehouse, Production and Office space cost is only indicative in nature and has no legal obligations. **maintenance fee is extracted after the fact, based on actual costs.

Staff Competencies (current tenant will move its activities to China and the competent staff of Efore in Pärnu is available for the new tenant)

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Sourcing and logistics

Local (50 km) sourcing contacts: Sheet metal, cable

sets, inductives.

Global sourcing contacts: Arrow, Avnet, Tyco, TTI,

Elgood, Premo, etc.

Global logistics : UPS, TNT, Incoterms 2010

knowledge.

IT competencies : MS Office, Novell network, Keybox

MRP, ATON PDM, Autocad, Solidworks, Cisco IP

Phone system.

  Languages: Estonian, English, Russian, Finnish, German;

  Nordic business culture;

  Knowledge of Ericsson, GE, ABB, EADS quality requirements;

  Service cover:

–  Technical Sales;

–  Sourcing;

–  Operations;

–  Product Engineering;

–  After Sales service.

  Operational models:

–  STO – ship to order/from warehouse in same day + HUB in Sweden and in Tallinn for Ericsson;

–  ATO – assembly to order/ order lead time 2 days + transportation;

–  MTO – make to order/ order lead time 3-5 days + transportation.

page 1 of 2

Staff Competencies page 2 of 2

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  Manufacturing management:

–  Demand planning tools, sourcing, supply and warehouse;

–  World class manufacturing models, lean manufacturing, 5S;

–  Working methods standardizing, working time standardizing (MOST);

–  Assets utilization follow up (U1, U2);

–  Statistical process control (SPC);

–  QMS, EMS, OHSAS knowledge (ISO standards);

–  8D root cause analyzing and correction actions planning.

  Technical competence:

–  Product engineering and troubleshooting;

–  SMT and HMT (thru hole);

–  Wave soldering;

–  Manual assembly;

–  Gluing;

–  Coating;

–  Testing: Safety test, automated functional test. IP test. RSS, Gage R&R, Yield, Cpk analysis.

  NPI (New Product Introduction)

–  Prototypes manufacturing and analyzing;

–  DFM (Design for Manufacturing);

–  Control Plans and Product Flow Charts;

–  FMEA (Failure Mode and Effects Analysis) during manufacturing;

–  Ramp-up planning, multi-site manufacturing experience.

  Operators

–  Electronics components knowledge;

–  IPC 610 and other electronics standards knowledge;

–  Hand soldering competence;

–  Mechanical assembly competence;

–  Competence to read technical documentation;

–  Ability to work 7/24.

Manufacturing competence:

Contacts and Property Visits

The property

  The property is owned by German open ended real estate fund Focus Nordic Cities. The owner is represented by Catella Corporate Finance – www.catella.ee; www.catella.lv. All questions regarding the rental terms should be addressed to:

Kaia Pärnoja – [email protected] , mobile +372 53 74 30 81

Sandijs Martinovs – [email protected], mobile +371 29 22 91 05

The staff and competences

  The current tenant in the building is Efore (www.efore.com). All questions regarding the staff competences and about the availability of equipment and furniture should be addressed to:

Juhan Lasn – [email protected], mobile +372 53 47 69 46

Property visits

  For the property visits please contact Juhan Lasn ([email protected], mobile +372 53 47 69 46) and put Kaia Pärnoja ([email protected], mobile +372 53 74 30 81) as CC.

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Estonia

Competitive Advantages: Communications Equipment Estonian Investment Agency April 2012

Introduction

Estonia offers distinctive opportunities as a near-shore electronics hub for both in-house and outsourced production and distribution. Estonia is the emerging Nordic location and an excellent gateway between Northern, Western and Eastern Europe and Russia.

Estonia offers a unique blend of Scandinavian culture, infrastructure and business values, familiarity and knowledge of Russia and highly competitive business costs. Estonia has the lowest corruption in Eastern Europe.

Besides good geographical location there are no earthquakes, no floods, no volcanoes nor any kind of other natural hazards in Estonia.

Summary – Why Estonia? Competitive advantages in Communications Equipment

Strategic location – global vision

  Baltic, Nordic and Western European connections   Proximity to Russia and other CEE markets   Exports represent 93% of Estonia’s GDP   No natural hazards

Dynamic electronics industry ecosystem

  World class foreign investors supported by extensive local supply chains   Very high growth: electronics devices output grew by 400% in 7 years   Development and production of globally innovative products

Quality talent pool– resourcing for business

  98,000 engineers and 24,000 technical IT professionals   50% of engineers studied specialized or vocational engineering courses

R&D know how   High quality universities - Ranked 16th in the world   Government support - Zero % tax on re-invested profits

Competitive costs & taxes – outstanding value

  Labour costs are at least a third of those in Sweden or Finland   Cheapest electricity in Europe   Simple, flat rate tax system

Progressive Infrastructure   Sites – scalable and accessible   Ports – growth potential, open year round   100% fibre broadband by 2015

Easy to do business   Ranked by the IMD, World Bank and the World Economic Forum as the

easiest place to do business in CEE   Ranked 3rd in the world for ease of trading across borders

Low risk   Lowest government debt in Europe (5.8% of GDP in 2011)   Sustainable workforce – 12% unemployment; latent engineering talent pool   Political & economic stability – accession to the Euro in 2011   Security – NATO chose Estonia for its cyber security operations

Estonian Success Stories

“We work with Tallinn Technical University to direct the courses they offer toward our specific needs and

we handpick our engineers through this cooperation. It takes only simple maths to conclude this is a great

place to do business. In Sweden, one employee has roughly 1,400 workable hours. In Estonia, the same

employee has 1,750 hours.”

“Even when the labour market has been at its tightest, ABB has been able to recruit and train the specialists

it needs. When ABB could not find the specialists it needed to produce turbines for wind generators, it

created programs and trained them itself.”

“For one-and-a-half years now we’ve added value with design and development. We have always

managed well getting the engineers we need. From the point of having an ambitious vision, we have

quite quickly come to having a fully functional team of bright young engineers integrated with the

overall R&D team at Stoneridge Electronics”.

Strategic Location -

Excellence in Higher Education Education system

  9 universities (6 public, 3 private) - ca 52 000 students

o  University of Tartu – 18 250 students

o  Tallinn University of Technology – 14 400 students

o  Tallinn University – 9 600 students   24 other professional higher education

institutions – ca 16 400 students

  51 vocational schools - ca 28 500 students

  242 gymnasiums (high schools) - ca 30 000 students

World class talent: - Ranked 16th in world for quality of higher education (World Economic Forum 2010) -  Ranked 5th in the world for high school education standards (PISA )

University of Tartu (UT) http://www.ut.ee/index.aw/set_lang_id=2 UT was founded in 1632 and is Estonia’s leading centre of research and training. UT’s robust research potential is evidenced by the fact that it is the only Baltic university that has been invited to join the Coimbra Group, a prestigious club of renowned research universities.

The University hosted the Science Education Centre organized the 2010 World Conference on Science and Technology Education.

Tallinn University of Technology (TUT) http://www.ttu.ee/en Founded in 1918 by the Estonian Engineering Society, TUT has a strong focus on engineering studies. There are 8 faculties including: Civil Engineering; Power Engineering, Mechanical Engineering; Chemical & Materials Technology and Information Technology.

Tallinn University (TU) http://www.tlu.ee/?LangID=2 TU Estonia’s third largest university, consisting of 18 institutes and 4 colleges. It has more than 9,500 students as well as more than 540 faculty members and research fellows, and is the fastest growing university in Estonia.

Return to Index

Competitive Costs – Labour & Property

Source: fDiBenchmark.com April 2012

Approximately three to four times lower labour costs compared to Scandinavian countries in: • manufacturing of communication equipment as well as in • manufacturing of electronic components.

Low labour costs, with a Scandinavian-like culture

Type of space Tallinn Tartu Pärnu Narva

Industrial lease 2.8 - 6.0 2.0 - 4.0 1.6 – 4.5 3.2 - 8.0

Office 6.5 – 14.1 6.0 – 12.8 6.0 – 9.2 4.5 – 8.3

Source: Colliers International: January 2011

Indicative range for rents (excluding VAT and operating expenses) and industrial land price in major towns of Estonia for industrial and office premises (EUR/m2 per month).

Also the cheapest electricity in Europe

Return to Index

Cutting Edge ICT connectivity

  By 2015 all Estonian households,

enterprises and institutions will

have access to the broadband

network with the data connection

speed of up to 100 Mbit/s

  Fiber optical backbone network

connects all Estonian county

centers

  The country is completely covered

by digital networks providing

wireless internet

  A network of Public Access Points

covers most cities and towns

Fiber optical network in 2015

Fiber optical network today

Back to Contents

Return to Index

Low risk – politically and economically stable

  Political stability. Estonia is seen as the most stable country in CEE – more stable than Czech Republic, Poland, Lithuania, Romania or Hungary.

 No 1 in Europe in lowest government debt. Government debt was 5.8% of GDP in 2011. A stable and future oriented state budget, with a growing interest in entrepreneurs and foreign investors.

  Estonia was ranked in joint second place in the 2010 table ranking European countries by the European Economic Sustainability Index (EESI).

  Low inflation – 5% in 2011

Source: IMD World Competitiveness Yearbook 2011

The higher the rank, the lower the risk

Pärnu – location on Via Baltica

Business environment in Pärnu •  Favourable geographic and logistic location

-Via Baltic road (1,5 ha drive from Tallinn) -harbour (all year around) -airport -railway (new high speed Tallinn-Varsawa to be built)

•  Electronics sector in county 2010 - 1035 employees - turnover 77 931 326 EUR, 95% export - 10 companies

•  „Summer Capital“ of Estonia - positive image - sea, beach, river, parks - various cultural and sport events - up to 1 mln visitors per year

•  Nice and secure living environment

Name: Ele Merike Pärtel Position: Senior Advisor Estonian Investment Agency Phone: +372 6 279 526 Mobile: +372 56 654 357 Email: [email protected]

Estonian Investment Agency Enterprise Estonia

www.investinestonia.com www.tradewithestonia.com

www.eas.ee

For additional information please contact: