Bulgarian Irelly and French Maille Pirotex to arrive to Pirot – Free zone planning logistics center worth EUR 12 million

Source: eKapija Thursday, 29.11.2018. 14:01
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(Free Zone Pirot) Free Zone Pirot has been pronounced the best free zone in Europe and the third best in the world. This was the occasion for a conversation with the management about the further plans and expectations – new investors, information system and logistics center... Among others, Pirot has seen the arrival of Bulgaria’s Irelly, which makes toys for IKEA, the French textile company Maille Pirotex, and the arrival of another foreign company has been announced.

They say that their growth projections each year are 10%, but that they always exceed them. They explain that the best free zones in the world are in Dubai and Shanghai and that they learn a lot from them. In the past yeast, Free Zone Pirot has established the most modern information system modeled after the best zones in the world. This information system synthesizes all activities in the free zone, from the entrance of goods, the customs terminal, the tracking of goods from the start to the end point, customs mediation and preparation of customs documents. Users can focus on their activities, while officials in the zone are taking care of their secondary needs. The users of the free zone are provided with free wifi, a healthcare unit, a fire unit and a restaurant.

One of the advantages is the organization of transport of secondary materials and the shipping of finished products. Each week, two block trains operate the route between the Port of Burgas on the Black Sea and Free Zone Pirot. Car tire factory Tigar Tyres, a member of Michelin Group, realizes the biggest income and investments, followed by Tigar ad, which produces rubber footwear and rubber-technical goods.

The textile company Edoardo Miroglio, which has bought AHA Mura Prvi Maj, has started its production activities in the zone as well. Half of their capacities are engaged at the moment and they are simultaneously investing in the reconstruction of a part of the factory.

Free zones are on the rise in the world. At the moment, more than 30% of world trade goes through 10,000 free zones. The competition is enormous, so it’s necessary to follow modern trends of the development of world zones. Free Zone Pirot not only allows for operations exempt from customs and VAT, but also develops user-oriented services. The idea is to offer services in logistics, transport and customs mediation under the most favorable terms, which will enable companies in the zone to do business more efficiently.

Our interviewees explain that the cooperation with other free zones is excellent and that their system can be implemented in other free zones in the country as well.

Intermodal logistics center

For several years now, Free Zone Pirot and its partners from the local self-government have been working on the project of an intermodal logistics center, which would be one of the first of its kind in Serbia. The preliminary design has been prepared. The project will be carried out in two phases and has been supported by the Municipal Infrastructure Support Program (MISP), the Ministry of Construction, Transport and Infrastructure and the Ministry of Economy.

At the moment, the City of Pirot is buying out land for the intermodal terminal within the Logistics Center in Priot. It set aside around EUR 250,000 this year for the expropriation.

A 25-ha section of the Industrial Park has been bought and sold to investors in the field of production activities. The majority is used by domestic companies, free zone users – D Company and Parga.


As they say, a new sale of land will take place in the autumn of 2019, whereas the launch of the Logistic Center itself is expected in the period to follow. The idea is for the Logistics Center to be of regional character, eKapija’s interviewees emphasize.

Around EUR 3 million has been invested so far in the Logistics Center and the Industrial Park, and the plan is to invest a total of EUR 12 million. The capacity of the logistics center will be 100 containers a day.

How to reach investors?

Our interviewees emphasize that Pirot doesn’t have cheap, but quality workforce, whose average salary is RSD 84,000.

– We are honest with investors. We are upfront about what they can expect from us. Investors are apprehensible and need to be approached cautiously and with respect. We don’t present them with our terms, but ask them what they need. Another secret of our success is the support of the local self-government – our interviewees add.

The City of Pirot has freed investors in the zone from all costs towards the local self-government regarding the construction and the exploitation of production facilities.

District Chamber of Commerce of Pirot

Successful operations have gathered companies in the Pirot District (Pirot, Bela Palanka, Dimitrovgrad and Babusnica) within the District Chamber of Commerce of Pirot, which was founded by 140 business entities in mid-2017.

– We have raised the level of organization and we currently have around 200 members. Free Zone Pirot is one of the founders – our interviewees say.

S. Sojic

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