1. PROJECT TITLE
Textile Industry Factory
Textile industry sector
Mekote, Han Pijesak
4. BRIEF PROJECT DESCRIPTION
The project refers to the production relaunching in a building that has been built for the purposes of a textile factory. It is the former Planinka textile factory, which devolved to the Han Pijesak Municipality in the process of privatization. The factory has not been operating for more than 15 years. The building is preserved, external repairs of all installations (heating, water, electricity) are needed, as well as investing in equipment and working assets.
5. PROJECT DETAILS
5.1 What type of project is it?
This is a brownfield investment, an investment in an abandoned facility and its revitalization in order to launch industry. Han Pijesak Municipality may, in accordance with the law, lease or sell property, depending on investor’s interest. The municipality has developed a set of criteria for leasing the property.
5.2 Project status
The project is only in the business idea stage. Potential investors shall draft their own business plan based on their available capacities and market position.
5.3 Reasons to invest in the project
Potential investors have a designated facility with fully-built infrastructure at their disposal. Regarding the workforce, considering the character of production (light industry), it is relatively easy to carry out the additional training and retraining of the workforce, primarily women, which means that there is available labor at a competitive price.
Unemployment in Han Pijesak Municipality is 37%, and most of the unemployed (60%) are women. The job opportunity would be a motivating factor for acquiring knowledge and skills for working in the textile industry factory. The facility is located next to the main road Sarajevo-Zvornik, traffic and communication are well connected with major centers in the vicinity (Sarajevo 70 km, Zvornik 70 km, Tuzla 90 km), as well as with Serbia and Croatia.
Regarding the markets, competition, raw materials and other investment elements, the development of a business plan will additionally determine the opportunities and justifiability of the investment. In any case, on the basis of positive experiences from surrounding places, it is indisputable that the textile industry has potential for development in Bosnia and Herzegovina and Republic of Srpska.
6. PROJECT FINANCING:
6.1 Estimated project value in €
6.2 Planned sources of financing
The property can be sold or leased. In the case of leasing, the contract defines a set of criteria that the lessee must meet (industry type, number of employees, lease length, etc.).
6.3 Inputs by local partner
Republic of Srpska Government’s incentives, i.e. the incentives of the Republic Employment Bureau for new employment, the incentives of Han Pijesak incentives for enhancing business and employment, accelerated administrative procedures at the municipal level.
6.4 Inputs by investor
Purchase of an industrial complex or lease payment in accordance with predefined criteria. Investment will involve repairing and connecting installations, purchasing new equipment, investing in working capital. In the case of leasing, the amount of investment in infrastructure would be reduced by rent amount.
7. Has physical location for project implementation been identified
The Factory is located at Mekote-Industrial zone, 3 km from the Han Pijesak center to Sarajevo. The factory is located at Mekote – industrial zone, 3 km from the center of Han Pijesak to Sarajevo. The factory was built on lot marked as cp. no. 378/197 cadastral municipality of Mrkalji 2, covering 4.000 m2 land area (old survey).
The factory consists of the following immovable property:
- The main building, a ground floor free standing solid material made, with a total usable area of 1,106.95 m2, designed and built for textile industrial production with all installations (water supply, sewerage, electrical installation, lightning rod installation, telephone and central heating),
- Auxiliary object with guardhouse and substation, with a total usable area of 49.20 m2,
- Asphalt in the factory, surface 1,080.24 m2,
- Metal fences, total length 231.55m,
- Transformer, a free-standing facility with a connected transmission line,
- Building plot of 3.800 m2. The building and its surrounding land is 100% owned by the Municipality of Han Pijesak, registered and without any property claims.
8. Have the activities on project implementation already started
Yes. The Han Pijesak Municipality is conducting activities on seeking potential investors in the Factory purchase or lease.
9. Project applicant and contact information
HAN PIJESAK MUNICIPALITY
Address: Aleksandra Karađorđevića 4,
71.360 Han Pijesak
Contact: Slavica Ašonja