mipim 2014 - wallonia · with 842 km of motorway, wallonia ensures optimal connections to the...

MIPIM 2014Press release

11-14 MarchNew locatIoN, New sPace thIs year!esPace Debussy booth c-1.07

press release MipiM 2014 | 11-14 march

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Contents

walloNIa IN brIef...

• Population and surface area• Institutional framework• Wallonia: at the heart of Europe and the world…

the attractIoN of walloNIa…

• The evolution of foreign investments in Wallonia in 2013• Analysis of the results for the year: an average year in 14 years of activity• The origin of the investments registered in 2013• Growth sectors in 2013• Location of successful files• Retrospective for the period 2000 – 2013• What pleases investors most• Wallonia in the Financial Times Top 20!

walloNIa at MIPIM

• News• Partners • Official attendance• Programme

the foreIgN INvestMeNt DIvIsIoN of the wallooN ageNcy for exPort aND foreIgN INvestMeNt

aPPeNDIces

• Plans and visuals for the Walloon stand and the Belgian pavilion• FDI study, European Cities and Regions of the Future 2014/15, February 2014


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WALLONIA IN BRIEF…Wallonia is one of the three regions of federal Belgium and home to the majority of the country’s French-speaking population. It also includes the German-speaking community, the institution that represents the German-speaking minority in the east of the region.

PoPulatIoN aND surface area

With its 16,844 km2 in the southern part of the country, Wallonia occupies over half of the territory of Belgium, extending across five provinces: Walloon Brabant, Hainaut, Liège, Luxembourg and Namur. The principal cities are: Liège, Charleroi, Mons, Namur, Tournai, Verviers, Wavre, Nivelles and Mouscron.

The region’s population of about 3.5 million is relatively dense (204 inhabitants/km2) and comprises a third of Belgium’s total population.

INstItutIoNal fraMeworK

Wallonia has its own government, whose nine members are accountable to a legislative body, the Walloon Parliament. The Parliament comprises 75 delegates, elected by universal suffrage. These institutions have chosen Namur as the capital of Wallonia.

walloNIa’s coMPeteNcIes

Wallonia possesses its own competencies, which have been transferred to it by the federal government.

These powers are applied in the following matters:• economic policy and employment• foreign trade• tourism• applied scientific research• transport and public works• housing and regional development• the environment and agriculture• energy and water• subordinate powers and external relations in the above matters


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walloNIa: at the heart of euroPe aND the worlD…

Wallonia is very close to Brussels and the major cities of Western Europe. This is the seat of the largest international institutions and where many multinational companies have their headquarters.

Brussels first of all, with the European Commission, the European Parliament, NATO, Eurocontrol, the World Customs Organisation, Shape and 1,500 international organisa-tions, 220 representative offices of cities and regions, 160 embassies, and most of the European associations and professional associations.

Brussels is also home to one of the largest journalistic centres in the world, more than 60 foreign banks, 1,700 international companies, more than 300 international law firms or consultants, and even 21 international schools. With Paris, Strasbourg, London, Amsterdam, The Hague, Belgium, Cologne, Frankfurt, Munich and Geneva within just a few hours by car, train or plane, this is the base of decision centres and of power in Europe with which Wallonia is truly directly connected.

Wallonia is situated centrally in the heart of Western Europe. This strategic location places Belgium at the intersection of 6 major axes in the European motorway network.

MOTORWAY SYSTEMWith 842 km of motorway, Wallonia ensures optimal connections to the principal cities of Belgium and the neighbouring countries – within reach of a population of 58.8 million people in 4 hours. In barely a day’s drive, a big part of the famous ‘European banana’ can be reached: an area of 370 million consumers, comprising 20 major cities in a crescent that stretches from England to Belgium.

RAILWAY SYSTEMThis ideal location benefits the rail network as well. Wallonia is served by four major lines of the European system. 13 million tonnes pass through it each year, which provides employment for 3,700 people. The TGV also plays its role in the transport of goods in the region – as Wallonia is one of the few European stops for TGV freight. WATERWAY SYSTEMAs for waterways, the Autonomous Port of Liège (PAL) is Europe’s third most important inland port, after Duisburg and before Paris. In 2010, all transport modes combined, PAL handled more than 21 million tonnes, an increase of 15%. Facilitated again by a strategic location, the Rhine-Meuse-Scheldt basin has direct access to the world’s main port terminal (Antwerp-Rotterdam, Ghent, Zeebrugge). A port whose infrastructure is being modernised by diverse current and future investments.


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AIRWAY SYSTEMPositioned in niche cargo and open 24/24, the Liège airport handled 639,434 tonnes in 2010, an increase of 32.6% compared to 2009. This result reinforces its 8th place in the European rankings (and first in Belgium). The infrastructure of this regional airport allows it to accommodate the large air carriers serving all of Europe, Asia and Africa. In addition, it has a customs service and a licensed veterinarian centre.

A WIN-WIN COMBINATIONBut the attractiveness of Wallonia is not so much the diversity of its modes of transport as it is the complementarity of its infrastructures. 6 multimodal platforms (rail/water/road/air) are installed there and are perfectly equipped to accommodate all transport and logistical activities.

In addition to workflow management, Wallonia has a large number of well-located zones for economic activities and a particularly rich and diversified real estate park. This is coupled with a wide range of experienced providers capable of offering a very large range of logistics services with high added value.

So, it’s not surprising that wallonia has become the premier logistics region in europe. this is the conclusion of a study conducted by cushman & wakefield at the end of 2009. Even though it is four years old, this study is still relevant and establishes a ranking of the best European locations for logistics and distribution, based on macroeconomic parameters. This ranking comprises a graduated matrix that incorporates relevant data for 61 European regions, with a view to establishing a European distribution centre (EDC) that is greater than a regional logistics centre.

Liège ranks first, followed by Belgian Limburg, Hainaut and Nord-Pas-de-Calais. This enviable position is essentially due to:

• excellent access to major european markets (the markets central to western Belgium like the Ruhr area, and central to the Benelux such as Randstad/Antwerp/Brussels, Paris/Ile-de-Belgique, and the extended London region),

• a central location geographically and optimal in terms of coverage of European markets,

• superior transport volume and infrastructure, close to major ports or with quality multimodal links with these ports,

• low costs (whether land, warehouse, or labour),• the availability of a highly productive workforce, qualified with regard to the distribution

chain sector, and moreover, multilingual.


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THE ATTRACTION OF WALLONIA…For the 14th consecutive year, MIPIM – the leading trade show for international real estate professionals – is hosting a large walloon delegation, coordinated by the foreign Investment Division of the walloon agency for export and foreign Investment – awex. In particular, this partially government-owned agency, with an independent Board of Directors where the Walloon economic forces are based, is responsible for welcoming potential foreign investors to Wallonia.

the evolutIoN of foreIgN INvestMeNts IN walloNIa IN 2013

• the results for 2013: a successful year in a european economic environment still characterised by low growth in the western economies.In terms of attractiveness for foreign investment in Wallonia, the two previous fiscal years (2011 and 2012) were particularly exceptional and atypical. Exceptional in view of the results of foreign investments garnered by Wallonia, and atypical because the inter-national situation was severely impacted by the growth crisis in the European economies.

With some encouraging signs of growth and recovery of business confidence in a Europe still in economic uncertainty, Wallonia held its own during 2012, in terms of its exports as well as its internal investments.

Nevertheless, at the end of 2012, the first signs of an economic slowdown appeared in our country with the announcement, particularly dramatic and heavy on the social level, of the closure of the prized automobile industry in Limburg. This was followed by a severe wave of mass redundancies (representing the loss of 4,151 jobs in Flanders). At the beginning of 2013, Wallonia itself was affected by announced mass redundancies (restructuring of the Liège steel industry and the Caterpillar corporation).

This delicate international and regional context formed the background for fiscal 2013.However, there was a slight turnaround in the second half of the year. Indeed, despite a rather chilly start, foreign investments into Wallonia accelerated rapidly in June 2013 – to return, at the end of the year, to the average of previous years.

• good results for 2013: €862 million in investment for 1,531 direct jobsThe year 2013 was concluded by the realisation in Wallonia of 78 files by investment groups with foreign capital (business establishments and extensions of activities), totalling €862 million (+11% compared to 2012).


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The number of direct jobs generated by these investments totalled 1,531 (down 10% com-pared to the figures reached in 2012). With an average of 20 direct jobs per file produced, 2013 remains in line with the results of previous years.

These figures represent the cumulative results of the work done by Awex and of the files handled by the Walloon ‘Economy’ public actors (consisting of DGO6 Economics and Research, the body for inter-municipal economic development). These results are reassu-ring evidence of Wallonia’s ability to withstand the crisis and to attract and consolidate foreign investment.

aNalysIs of the results for the year: aN average year IN 14 years of actIvIty

• In terms of amounts invested, 2013 is 4th in the ranking (2000-2013), with a significant average of €11 million of investment per file realised.

• However, in terms of direct jobs, this year is only 10th in the rankings, situated in the middle of direct jobs forecast per file (20 jobs).

Of the 78 files materialised, 43 – representing an invested amount of €358 million – concern extensions of activity by foreign-owned companies already established in Wallonia. Thirty-five (35) files, for an invested amount of €504 million, result from new establishments. By themselves, with the contribution of 1,203 direct jobs, they account for nearly 78.5% of direct jobs announced in 2013.

the orIgIN of the INvestMeNts regIstereD IN 2013

As in previous years, the main foreign investments in Wallonia during fiscal year 2013 came from the European continent (58% of the investment amount), followed by the American and Asian continents.

This distribution reflects the severity and the magnitude of the crisis of our continental economies, which are seeking to develop more activities in the neighbouring countries.

With 40% of foreign funds injected into the Walloon economy, investments from the Americas continue to support the year’s results, despite uncertainties about the sustai-nability of the Euro zone which are strongly felt by the overseas investors. On the other hand, despite the considerable efforts of Awex, Asian investment did not exceed 2.5% of the amounts recorded.

In light of new jobs, the place occupied by Europe is even more marked (1,282 jobs or 84% of total). This situation is closely linked to the significant Dutch investments, which represent about half of the total. Therefore, the contribution of jobs from the U.S. (11%) and Asian (5.5%) projects are much smaller.


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growth sectors IN 2013

In volume of capital, the sectors that have attracted the most investment in Wallonia in 2013 are, respectively: information technology (€305 million), agribusiness (€150 million) and logistics (€122 million). These three activities are followed by construction (€91 million) and point mechanics (€65 million). Life sciences and general chemistry (with €41 and €23 million invested, respectively) complete the list.

In terms of direct employment, logistics and the sectors related to MECATEC and agri-business combine for 72% of the jobs advertised. Clearly far behind, life sciences, IT and service activities represent 18% of the overall total. The sector table is completed by contributions from energy / environment, aviation and tourism.

locatIoN of successful fIles

All of the provinces in the south of the country have benefited from the jobs created by foreign investments recorded in 2013.

As in previous years, and not surprisingly, the majority of new files have concentrated on the major industrial areas (Liège and Hainaut - Charleroi and the central region) and Walloon Brabant, near Brussels.

The high rates of EU subsidies and the concentration of the local economy could explain this situation.

Most of the realised projects involve heavy manufacturing industries. So, it’s logical that nearly 70% of the investment files are located in Hainaut. One project in 5 goes to the Liège region, and the other files have benefited Walloon Brabant (5%) and the region of Namur-Luxembourg (5%).

If Wallonia’s assets are much better known abroad today, being further reinforced by the clusters of the Marshall Plan 2.Green, if all federal and regional measures to promote the attractiveness of the area also play a role in the investment dynamics, we must not underestimate the work of persuasion and prospecting that the Walloon economic attachés have carried out with major foreign industrial groups to explain this performance in the context of the global crisis.

This is also the result of a personalised service offered to foreign investors by all of the regional stakeholders concerned and the cumulative actions of Awex.


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retrosPectIve for the PerIoD 2000-2013

With regard to foreign investment, strategy and statistical analysis are valid only if they are shared and confirmed over several years. Otherwise, the reality may be truncated or distorted by a significant one-off investment that is not indicative of a long-term trend or that reflects the ongoing efforts of teams active in the area. In the following paragraphs, the results are analysed over a period extending from 2000 (date of the establishment of the Agency in its mission to attract foreign investors) to 2013.

During these 14 years, by means of 1140 files, €9.935 billion has been injected into the regional economy by foreign investors, contributing to the creation of 23,699 direct jobs advertised.

In financial terms, the most promising sectors are chemicals, which collected €1.298 billion from foreign shareholders, information technology (€999 million), agribusiness (€930 mil-lion), life sciences (€803 million) and the paper industry (€785 million).

The ranking based on the number of direct jobs created by the investment sectors is quite similar, and shows, in order: logistics and services (4,215 jobs or about 17.9% of total), metal manufacturing and the point mechanics sector (3,853 jobs), agribusiness (2,452 jobs), and chemistry (2,087 jobs).

If we analyse the origin of the foreign capital invested in the decade in terms of geogra-phical origin, the Americas are the first foreign investor in Wallonia with €2.084 billion injected into the regional economy (20% of the total). They are followed by Flanders (€1.536 billion) and France (€1.280 billion).

On the same basis, the ranking of direct jobs generated consists of Flanders (5,341 jobs advertised, or 22.5%), the U.S. (4,536 jobs) and France (3,023 jobs).

what Pleases INvestors Most

On the occasion of the Forum 2012 of foreign investments established in Wallonia, Awex organised a satisfaction survey for investors having localised and developed a centre of activities in Wallonia. The main elements of the area’s attractiveness highlighted by the international investors included:

• the quality of the communication and mobility infrastructures; • competence of the workforce;• R&D capacity;• stability of the labour market; • performance in sustainable development; • urban availability…


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At the same time, labour costs in essentially ‘worker’ sectors, societal taxation, and energy prices were among the areas needing improvement.

It follows from this satisfaction barometer that attracting investors to our region requires a long-term vision and structural policy measures on several fronts. To do this, we must be attentive to the region’s overall competitiveness.

If the high tax rate in Belgium is often highlighted as a handicap to local investment, re-cent indications from the federal government regarding maintaining the notional interest measures are therefore greeted warmly by both domestic and foreign investors when they consider Wallonia as a welcoming region.

In the same fiscal sphere, the commission ruling offers a special legal certainty for inves-tors, and it should therefore provide even greater leeway.More generally, in tax matters, the adoption of clear and uncomplicated legislation is nee-ded to allow only one possible interpretation and to reinforce the legal certainty prized by investors.

In a country with a strong tertiary component such as Belgium, it is also important to invest more in education and training, innovation and the development of a culture of renewal and creativity. Therefore, expansion of national and regional innovation policy is essential to protect this competitiveness.With regard to social costs, a profound debate, without taboos, should be conducted on the reform of the Belgian social model and its funding in order to ensure the long-term competitiveness of the region.

walloNIa IN the fINaNcIal tIMes toP 20!

Wallonia is an ideal region for investment according to the Financial Times. It is listed in16th place in the overall ranking of European regions most attractive to investors. The Walloon Region is the only Belgian region in this coveted list published annually by the prestigious business daily.

In the other rankings, it is interesting to note that Wallonia is 7th in terms of FDI strategy compared to all other European regions. In the category “Regions of Western Europe”, it ranks 8th overall and 3rd in FDI strategy. Wallonia is further distinguished in the category “Medium-sized European Regions”, which covers regions with a population between 1.5 and 4 million. It is actually in 6th place overall (9th for infrastructure and 4th for FDI strategy).


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This is real recognition of the work done by Awex, which promotes the assets of Wallonia on a daily basis, through numerous actions every year. These rankings are compiled from the independent collection of data and information based on:

• The economic potential, employment rate, inflation, R&D, number of projects, patents, growth...

• Human capital: literacy rate, number of universities, high schools, life expectancy, standard of living...

• Actual costs: average wage, property prices, minimum wage, tax system, energy costs...

• Infrastructure: Internet quality, airports, ports, container traffic, logistics performance, quality of roads, quality of rail transport...

The full study is attached.


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WALLONIA AT MIPIMNews

For the 2014 edition of MIPIM, Awex has designed a brand-new booth, which will be in the Belgian pavilion (you can find maps and pictures attached). The collaboration between Belgian regions is demonstrated by the creation of a shared website www.surrealestate.be alongside the Wallonia site www.wallonia-mipim.be.

In addition, the Walloon Cocktail, which is traditionally held on Tuesday evening, is now the Three Regions Cocktail and is being held in the pavilion.

PartNers

• The eight economic inter-municipalities of Wallonia, IPW, GRE• Partner cities and towns: Charleroi, Herstal, Liège, Mons, Namur, Verviers• Infrastructure: Port of Liège• Private enterprises: Asymétrie, Atenor, Franki, Futurocité, Houyoux Construction,

Wilhelm&Co, Flexymodule, Immo Rome• Other towns and cities: Arlon, Louvain-la-Neuve, Seraing, Ciney, Nivelles, Flemalle.

offIcIal atteNDaNce

Philippe HENRY, Minister of Environment, Spatial Planning and Mobility

GOVERNORSDenis MATHEN - NamurBernard CAPRASSE - Luxembourg

MAYORSMaxime PREVOT - NamurPaul MAGNETTE - CharleroiPierre HUART - NivellesJean-Luc ROLAND - Ottignies / LLNVincent SCOURNEAU - Braine l’AlleudVincent MAGNUS - ArlonJean-Marie CHEFFERT - CineyMarc ELSEN - Verviers

COUNCILLORSMaggy YERNA - LiègeSophie THEMONT - FlemalleJoëlle KAPOMPOLE - City of Mons


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PrograMMe

TUESDAY, MARCH 119 am - 2 pm: GRE Presentation - Golf de Mougins (Liège projects)6 pm - 8 pm: Opening of the Belgian Pavilion

WEDNESDAY, MARCH 129:30 - 9:50 am: Nathalie Czerniatynski, Manager, Strategic and Territorial Development,

Igretec - “The region of Charleroi and South Hainaut, a welcoming place”10.00 - 10:20 am: Paul Magnette, Mayor of Charleroi - “Charleroi the friendly city”10:30-10:50 am: Jacques Platieau, Vice President, Country General Manager IBM Belgium

& Luxembourg - “The Smart City: a reality today for citizens, communi-ties and authorities”

12 noon - 1 pm: Three Regions Cocktail at the stand3:30 - 5:45 pm: “Smart cities, towns and smart spaces in the heart of the Lotharingian axis

in Wallonia (Brussels-Namur-Luxembourg): What vision for the future, what real estate projects?”

5:45 – 8 pm: Cocktail ( Bep/BWI/Idelux )6:30 pm: Eurométropole Cocktail (Plage Royale)

ProMotINg walloNIa’s four INvestMeNt levers

For the Walloon Agency for Export and Foreign Investment, MIPIM 2014, just as in previous years, puts the region in the spotlight for its added value in four aspects of development:

1. LOGISTICS AND MOBILITY AT THE HEART OF EUROPE Located close to the capital of Europe, the Walloon Region has many advantages in its favour for both the logistics sector and for European distribution centres:

• 1,700 hectares of serviced land holdings available soon. This is of particular interest to large logistics groups who need big areas of up to 25 to 30 hectares for their clients.

• Relatively low cost of land: on the international real estate scale, measuring from 0-100, Wallonia is around 60 – that’s 40% less expensive than most neighbouring regions.

• A favourable and stable legislative framework thanks to the improvement in the tax system, both federal and regional.

• Competitive real estate taxation. Indeed, one of the six key areas in the priority action plan for Wallonia is the reduction or scrapping of any anti-economic taxation, inclu-ding property taxes on buildings and fixed installations.

• This competitive advantage, introduced in early 2006, clearly marks out the Walloon region because these invisible costs represent some 10% of the cost of annual investment.

• 65% of the European market accessible in a few hours and distribution facilitated by top-notch infrastructure, including five multimodal platforms on the doorstep of Germany, the Netherlands and France.


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2. AMBITIOUS AND INNOVATIVE TECHNOLOGY AND BUSINESS PARkS Technology and business parks built in the Walloon Region are known for companies with specialised and innovative activities and also for the contemporary architecture which really enhances the image of a company.

Following in the footsteps of the Quality Center set up by GSk Biological in Wavre, in November 2007 the American group Baxter decided to build its new European research centre in Wallonia which will be home to almost 500 high-level researchers.

The quality of infrastructure and availability of quality labour also persuaded Google to build its European data centre on the outskirts of Mons.

Recently, IBM, Cisco, Microsoft and Alcatel decided to pool their software technologies to boost eco-efficiency and have created a public-private partnership with Wallonia.

In addition to these facilities and recent announcements, Wallonia boasts many other ambitious projects.

206 fully equipped Business Parks are already home to nearly 5,000 businesses which have generated more than 150,000 jobs.

6 science parks, directly connected to numerous research centres, laboratories, universi-ties, business centres and incubators, are indispensable partners in the technology sector.

3. URBAN AND PERI-URBAN DEVELOPMENT UNDER THE SIGN OF QUALITYThe revitalisation of urban and peri-urban areas in Wallonia places particular emphasis on the need for a mix of infrastructure types for better quality of life.

4. INDUSTRIAL REDEPLOYMENT BASED ON A LONG-TERM STRATEGYThe redeployment of the Meuse Valley illustrates the new coherent and strategic direction of long-term investment in Wallonia. A tangible sign of this trend is the recent establish-ment of GRE (Group of Economic Redeployment Liège): a pioneering organisation that brings public and private together to manage all aspects of economic life in Liège in a coherent and forward-thinking way.


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FOREIGN INVESTMENT DIVISION OF AWExThe Foreign Investment Division of the Walloon Agency for Export and Foreign Investment comprises a team of specialised multilingual advisors.Its role: to help foreign investors in the successful implementation of their businesses and facilitate their integration into the heart of the regional economy.

Its main tasks are:• looking for sites and buildings;• assisting foreign companies in the start-up, development and diversification of their

activities;• facilitating access to venture capital;• advising and assisting in the search for adequate human resources;• establishing and implementing recruitment and training programmes;• helping obtain aid from regional and European authorities;• providing legal, fiscal and logistical support.

Press coNtacts

arnaud colletteTel: + 32 476 570 130E-mail: [email protected]

mipim 2014 - wallonia · with 842 km of motorway, wallonia ensures optimal connections to the...

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