MECHANICAL,E L E C T R I C A L& ELECTRONICI N D U S T R I E S

In TunisiA...

invest in Tunisia

invest in Tunisia

M E C H A N I C A L , E L E C T R I C A L & E L E C T R O N I C I N D U S T R I E S I N T U N I S I A 01

Over

1,000 companies

The sector of Mechanical, Electrical and Electronic Industries (MEEI) in Tunisia has experienced a strong growth momentum in recent years at an average annual growth rate of 13% and a value added of over 3,500 million TND.

The sector features:

• over 1,000 companies including 606 companies with foreign participation,

• 440 totally exporting companies,

• 1,378.53 mill ion TND in Foreign Direct Investments in Electr ical and Electronic Industr ies (EEI),

• 1,028.66 million TND in Foreign Direct Investments in Mechanical and Metallurgic Industries (MMI).

In 2015, exports of the EEI sector registered a growth rate of 11.7% compared to the previous year.

75% of MEEI exports are intended for the EU.

MEEI: A DRIvER Of ECONOMIC gROwTH

1 TND = 0.459 Euro = 0.510 USD (2015 average rate)

45%of industrial

exports

EEI and MMI are respectively ranked 1st

and 4th in terms of foreign direct investment in

manufacturing industries.

1st

exporting sector

in Tunisia

a growth rate of

11,7%

More than

130,000 jobs created

The maiN exporTeD proDucTs are:

cables and wire harnesses, electronic assemblies,

automotive components, electrical components, lighting equipment, waste and scrap of

non-ferrous materials, connectors, printed circuit

boards, processors, machined mechanical parts...

Tunisia is the 1st exporter of industrial goods in the Southern shore of

the Mediterranean to the EU .

Tunisian HR are highly qualified and competitive and regularly adapting their skills to the technological development of MEEI. It is a result of the existing interface structure between the socio-economic world and that of research in the field of MEEI.

The specialised training institutions are the following:

• 8 engineering schools specialising i n s e v e r a l d i s c i p l i n e s i n c l u d i n g mechatronics and electronics;

• 36 s e c t o r a l training centres;

• A centre of excellence CEMIA dedicated to aerospace industries in El Mghira which also includes technology platforms in sectoral training centres.

QualIfIEd and SkIllEd HUMAN RESOURCES

M E C H A N I C A L , E L E C T R I C A L & E L E C T R O N I C I N D U S T R I E S I N T U N I S I A02

Guaranteed Minimum

Professional Wage (SMIG)

289.639 TND

(40 hours / week)

≈ 128.310 €

Several international companies have expertise centres in Tunisia

employing hundreds of engineers and Tunisian

executives:

acTia, aLcaTeL, KromBerG & schuBerT, LeoNi, saGem, siemeNs, sT microeLecTroNics, ZoDiac eQuipemeNTs

TuNisie…

Located at the Northern tip of the African continent just 140 km far from Europe, Tunisia is at the heart of the euro-mediterranean logistic chain and as such, is an ideal hub that provides access to several major markets.

Tunisia is the 1st Southern Mediterranean country to have signed an Association and Free Trade Agreement with the EU.

Tunisia is also member of the International Centre for the Settlement of Investment Disputes (ICSID) and signed in 2012 the declaration of the Economic Cooperation and Development Organisation (OECD) on International Investment and Multinational Enterprises.

advantagEouS gEOSTRATEgIC LOCATION

TUNISIA

AUSTRIAFRANCE

GERMANY

ITALY

MALTA

GREECE

SPAIN

SWITZ.

TURKEY

CYPRUS

GEORGIA

AZERBAIJAN

ARMENIAPORTUGAL

ISRAEL

NIGERIA

COMOROS

BURUNDI

RWANDA

MAURITIUS

ALGERIA

BURKINA

LIBYA

EGYPT

SUDAN

ETHIOPIA

KENYA

TANZANIA

ANGOLA

ZIMBABWE

LESOTHO

SWAZILANDSOUTH AFRICA

NAMIBIA

BOTSWANA

D. R. OF THE

CONGO

CENTRAL AFRICAN REPUBLIC

UGANDA

CONGO

CAMEROON

CHAD

GABON

NIGER

GAMBIA

GUINEA BISSAU

SIERRA LEONE

LIBERIA

COTE D'IVOIRE

GHANA

SAO TOME AND PRINCIPE

DJIBOUTI

ERITREA

S E Y C H E L L E S

MOROCCO

MAURITANIA MALI

SENEGAL

BENIN

TOGO

HUNGARY

MOLDOVA

SLOVAKIA

ROMANIASLOVENIA

ALBANIA

F.Y.R.O.M.

BOSNIA & H.

BULGARIA

IRAN

SAUDI ARABIA

IRAQSYRIA

JORDAN

KAZAKHSTAN

UZBEK.

TURKMEN.

KUWAIT

LEBANON

QATAR

UKRAINE

BAHRAIN

CROATIA

RUSSIAN FED.

GUINEA

WESTERN SAHARA

YEMEN

OMAN

U.A.E.

ZAMBIAMALAWI

SOMALIA

MADAGASCARMOZAMBIQUE

EQUAT. GUINEA

SERBIA

KOSOVOMONTENEGRO

NETHERLANDS

GERMANYBELGIUM

UNITED

KINGDOM

IRELAND

CZECH REP.

POLAND

BELARUS

Gulf of Aden

Cape of Good Hope

Moz

ambi

que

Chan

nel

G u l f o fG u i n e a

M E D I T E R R A N E A N S E A

S O U T H

A T L A N T I C

O C E A N

AEGEAN SEA

BLACK SEA

CASPIAN

SEA

I N D I A N

O C E A N

RED SEA

ADRIATIC SEA

Sea ofAzov

Bight ofBenin

Cape Agulhas

Persian Gulf

Over 6,000engineers and senior technicians graduate every year and are available for meei.

140 kmfar from Europe

FREETRaDE

aGREEMENT

Centre of excellence

CEMIa

8engineering

schools

36training centres

157industrial

zones

A technological platform with specific quality to meet MEEI requirements comprises the following centres:

• A competitiveness cluster in sousse dedicated to mechanics, electronics and computer science including a micro-electronics and nanotechnology research centre and specialised areas in emerging sectors with high added value,

• A fully integrated and autonomous aerospace centre in el mghira consisting of an industrial platform covering over 200 ha dedicated to mechanics, electronics and computer science.

In addition, the infrastructure consists of 9 international airports, 7 commercial ports, a road network of 20,000 km, a rail network of over 2,000 km, 157 industrial zones and 2 business parks (Free Trade Zones).

M E C H A N I C A L , E L E C T R I C A L & E L E C T R O N I C I N D U S T R I E S I N T U N I S I A 03

advancEd TECHNOLOgy INfRASTRUCTURE

157industrial

zones

9international

airports

2business

parks

7commercial

ports

04 M E C H A N I C A L , E L E C T R I C A L & E L E C T R O N I C I N D U S T R I E S I N T U N I S I A

Operations management and production workflow are well supported by:

> Flexibility of production tools allowing greater adjustment to demand and offering increased capacity in small and medium batches when needed;

> Industrial upmarket namely guaranteed by major international certification systems that cover over 34% of companies operating in the MEEI;

> Increasingly sophisticated automation mastered by HR ensuring better quality and greater responsiveness to customers’ needs;

> Fast Track system to facilitate customs clearance procedures thus minimizing delivery times, such as the aerospace industries that has its own green corridor.

The automotive and aerospace components & electrical and electronic products manufactured in Tunisia are well positioned in foreign markets and especially that of the EU.

This positioning is mainly due to the compliance of manufactured products in Tunisia with the internationally renowned norms and standards.

MANUfACTURINg "JuSt In tIME"

The two branches of

aerospace and automotive

components alone account

for 110 ISO 9000 certified

companies, and several others

are ISO 14000, ISO / TS 16949

and OHSaS 18001 certified.

FlExIbIlITy

INDUSTR IAL upMaRkET

MASTERy OF

SOPH IST ICATED

auTOMaTION

34%of certified companies

The international standards ISO and OHSaS represent

an investment lever in meei

05

Innovation and R&D, as growth drivers and core links of a performing value chain, are at the centre of the national industrial strategy whose main objective is to make Tunisia a Euro-Mediterranean platform in industry and technology. This is reflected in the move from competitiveness-driven growth to innovation-based growth.

MEEI companies in Tunisia benefit, among others, from several programmes intended to support and reinforce productive investments like the National Programme for Research and Innovation aimed at financing R&D and innovation projects.

The innovative companies are granted the following advantages:

> A premium granted for investments in R&D activities which represents a subsidy to offer access to technology intelligence and innovation,

> A national system of scientific research and technological innovation that enabled the creation of several laboratories and research units,

> A legal framework for the mobility of researchers through companies and governmental and private institutions to take advantage of the skills required to launch innovative projects in the context of technology parks and business incubators,

> An important national participation in international networks of scientific cooperation for a good absorption of the scientific and technological knowledge created in the most advanced economies ...

MoMEntuM of INNOvATION AND R&D

M E C H A N I C A L , E L E C T R I C A L & E L E C T R O N I C I N D U S T R I E S I N T U N I S I A

46 th

innovative country

gr

ow

th

res

ear

ch

inn

ov

at

ionTunisia is ranked 46th

in terms of innovation worldwide.

Bloomberg Innovation Index, 2016

Tunisia has the largest concentration of researchers in the Arab and African countries.

Bloomberg Innovation Index, 2016

" Finally, we can move very quickly to develop activities in Tunisia because it has a skilled and well trained workforce. And then, there is support, with the state and public services, which are of high quality. Dialogue can be easily established and it is always possible to find a solution. "

mr. Didier BoNiN, Director of operations, sTeLia aerospace - June 2015

M E C H A N I C A L , E L E C T R I C A L & E L E C T R O N I C I N D U S T R I E S I N T U N I S I A06

INvESTMENT IncEntIvE codE

Investment is free in most business activities. Foreigners may hold up to 100% of their capital.

Foreign companies can also benefit from several tax and financial incentives including:

• reduced corporate tax rate of 10% on profits derived from exports,

• total exemption of reinvested profits and income,

• a subsidy o f emp loye r con t r i bu t i ons to t he soc i a l secu r i t y s ys tem and infrastructure spending in areas of regional development,

• deductions from income or profits from investments from the tax base in the regional development areas for most sectors:

› total deductions for the first 5 or 10 years of operation, respectively for the zones of 1st and 2nd Groups,

› for priority areas, in addition to the total corporate tax exemption for the first 10 years, a further deduction of a maximum of 50% for the following 10 years.

• premiums for investment in industrial projects in regional development areas,

• subsidies for investment in environmental protection, technology promotion and R&D,

• a vocational training subsidy is representing up to 50 % of the initial training cost.

" Beyond this, there are accompanying measures to develop training, to help investment. And all this represents a set of devices that are quite favourable to the establishment of new businesses here in Tunisia. "

mr. philippe roBarDeY, ceo, soGecLair

June 2015

100 %of capital

reduced tax rate

10 %

Subsidies

Exemption of reinvested profits and

income

Priority areas

Tunisia offers several investment opportunities in MEEI, including:

• The manufacture of automotive and aerospace industrial components: Stamping, pressing and laser cutting, manufacture and maintenance of moulds for technical plastic parts, manufacture of aluminium radiators, machining of parts for engines, hydraulic circuits fittings, brake discs, engines, manufacturing wires, cables and cable assemblies, dashboard, door mechanisms, flight cabins items, tools, heat and surface treatment...;

• precision engineering: for the aviation and automotive industry, onboard devices, cutting, manufacture and maintenance of measuring devices...;

• production of cable and welded sub-assemblies: circuit boards, connectors, electromagnets direct and alternating current, cables and harnesses, semiconductors and sensors, low voltage power cables, armoured or shielded power cables, coaxial electric cables, tinned electrical cables, rubber insulated electric wires flexible insulated electrical cables, rubber or silicone rubber insulated cables...;

• manufacturing, assembly and integration of electrical products: electric stepper motors, three-phase and single-phase electric motors, synchronous motors...;

• manufacturing of energy conversion devices: solar cells and solar panels, wind turbines, generators, transformers, inverters...;

• mechatronics: mechanical parts machining with CNC machines, production of hard drives, smart appliances, active and passive autofocus, embedded systems…;

• pcB’s in small batches: LCD and Plasma screens, printed single-sided circuits, complex double-sided and multilayer printed circuits for telecommunication operators, double-sided printed circuits with metal coated holes.

InvEStMEnt OppORTUNITIES

M E C H A N I C A L , E L E C T R I C A L & E L E C T R O N I C I N D U S T R I E S I N T U N I S I A 07

Cable and welded sub-assemblies

•

Electrical products

automotive and aerospace

components

precision engineering

•

Mechatronics

Manufacturing of energy

conversion devices

•

pCb’s

08 M E C H A N I C A L , E L E C T R I C A L & E L E C T R O N I C I N D U S T R I E S I N T U N I S I A

Several institutions provide active support and help investors with:

• The Tunisian Automotive Association “Taa”

• The Technical Centre for Electrical and Mechanical Industries “CETIME“

• The Agency for the Promotion of Industry and Innovation “apII“

• The Export Promotion Centre “CEpEx“

• The National Federation for Electricity and Electronics “FEDElEC“

• The National Institute for Standardisation and Industrial Property “INNORpI“

• The Foreign Investment Promotion Agency “FIpa-Tunisia“

Support INSTITUTIONSCE

TiM

EFiPaTunisia

CEPEX

aP

ii

FEDELEC

innORPi Taa

SUCCESS STORIES

ACTIA GROUP • ALSTOM TRANSPORT SA •

AMPHENOL • ASTEEL FLASH •

CASCO PRODUCTS CORPORATION •

COELEC • DONCASTER CABLE • DRÄXLMAIER •

ELECTRO DIESEL REBUILD • FAURECIA •

GITRONICA • GRUNER AG • HAIER •

INTRAM BARWEL LIMITED •

KASCHKE KG GMBH & CO •

KBE ELEKTROTECHNIK GMBH •

KROMBERG & SCHUBERT • LEONI •

PHOENIX MECANO •

RIVA • SAFRAN • SIEMENS • SOMFY •

SUMITOMO • VALVULAS ARCO •

VISTEON • VOSSLOH SCHWABE •

YURA CORPORATION •

YAZAKI

2016 Edition Graphic design

Foreign investment Promotion agency

Rue Salaheddine El Ammami Centre Urbain Nord, 1004 Tunis-Tunisia Tel.: (216) 71 752 540 • fax: (216) 71 231 400 E-mail: fipa.tunisia@fipa.tn

www.investintunisia.tn

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