World Report

Eastern European countries make attractive locations for Veneto companies looking to set up new facilities abroad

Six of Veneto’s seven provinces achieve production levels above the EU average

elocating production facilities outside the region is becoming increasingly important as Veneto’s small and medium-sized companies undergo a growing process of internationalisation. Businesses have been setting up production facilities in Southern Italy and countries in Eastern Europe to benefit from low cost production and a readily available workforce.

Romania is seen as a particularly attractive location – approximately half of more than 9,000 Italian enterprises operating in Romania are from northeastern Italy, mainly from the Veneto region.
Providing support and assistance with the processes of delocalisation and internationalisation are organisations such as Veneto Sviluppo, Confindustria and Unindustria Treviso.

Veneto Sviluppo, the investment company of the Veneto Region, has had to change its constitution to allow it to operate outside the regional territory or abroad. “Delocalisation is an important reality,” says Paolo Sinigaglia, the company’s President. “I believe that within a few years Eastern European partnerships will account for most of Veneto Sviluppo’s activity.”

Established in 1979 for the promotion of economic development in the region, Veneto Sviluppo assists both local enterprises and foreign companies investing in the region. The company finances SMEs, strategic activities and infrastructural projects, using funds provided by the region, the Italian government and the European Union.
“With these funds we can provide very special rates to local entities below the bank rates,” explains Dr Sinigaglia. “We don’t have to raise our rates because the region, the government and the EU cover the difference.

PAOLO SINIGAGLIA
President of Veneto Sviluppo

‘We are orientating our efforts towards new technology projects’

“Our number one strategic goal is to handle all the financial and economic support for the development of small and medium-sized enterprises. The aim is to assist the private sector and focus strategically on innovative projects.”
The company acts as an incubator for start-up businesses in new and advanced technologies, and according to Dr Sinigaglia is orientating its efforts particularly towards new technology projects.

Infrastructural enterprises in which Veneto Sviluppo is involved include Venice’s Marco Polo International Airport, the main hub for European and national flights to the Veneto region, airports at Verona and Treviso, the Venice Passenger Terminal (VTP) and the Italian airline, Alpi Eagles.

Also keeping a close eye on the economic trends of the region is the Community Communication Agency. A consulting company with offices in Treviso, Milan, Rome and Bari, the agency operates in all branches of business communication with the aim of helping Veneto companies improve their competitiveness.
Francesco Borga, Director General of Confindustria Veneto, the regional industrial federation, says there is a need to strengthen Veneto’s economy both inside and outside the region.

“Inside the region, we are aiming to grow through innovation and technological research. Outside Veneto, our factories are moving to Southern Italy and Eastern Europe, especially Romania and Bulgaria.”
Unindustria Treviso, the industrial association of Treviso Province, has assisted 35 companies to set up operations in Southern Italy and is in the process of helping a further 15.

Sergio Bellato, Unindustria Treviso’s President, says the “Made in Italy” cachet is not compromised where the companies are delocalising only the production of components, and assembly of the finished products still takes place locally.
“With this kind of delocalisation, the project, the design and the distributionare kept in Veneto, but part of the production takes place abroad.”