9370

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industry, metallurgy, instrumental and hardware industry, qualified labor force, timber and water resources, proper logistics (railway, waterways).

Major, minor importance factors in Nizhny Novgorod (Table 2).

Table 2. Location factors in the Mechanical Engineering, Nizhny Novgorod

The press service review of GAZ Group: “Nizhny Novgorod region has economic, industrial, scientific and educational, logistical, social, political and administrative basis necessary for the development of large industrial sites”.

Importance and quality of location factors. They formed the industry suppliers; formed the automobile cluster; each companies can work with enterprise industry in any discipline; the provision of jobs; industrial development.

Summary

The specific needs of engineering companies are almost similar in each region. The administrative basis and logistics are the problem not only in Ulyanovsk

and Nizhny Novgorod, but in the country as whole.

In Niederrhein area the biggest problem might be the communication infrastructure.

The quality of the location factors is very different.

References

MGconnect Stiftung (2017). https://mgconnect.de/standort-mg/karriere-in- mg/maschinenbau-und-elektrotechnik [30.03.2017].

Maex online. Kompetenznetzwerk für Industrie (2017). http://www.maexonline.de [29.03.2017].

Mönchengladbach (2017). https://www.moenchengladbach.de/wirtschaft/ wirtschaftsstruktur [01.04.2017].

Hartmann, M. (2013). Die Wettbewerbsstärke deutscher Unternehmen in der Maschinenbaubranche. Eine theoretisch konzeptionelle Erklärung anhand der

Diamantund Clustertheorie. Research Papers No.7. Julius-Maximillians-Universität

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Würzburg.http://www.wiwi.uni-wuerzburg.de/fileadmin/12020100/_temp_/ Research paper_I_Max_Hartmann.pdf [02.04.2017].

Ulyanovsk Heavy and Unique Machine Tools Plant (2017). http://uzts.ru/ [04.04.2017].

Wind power in Russia (2017). http://vetrodvig.ru/istoriya-razvitiya/vetryanye- melnicy-v-rossii/vetroenergetika-v-rossii/ [25.02.2017].

Wind parks from Ulyanovsk (2017). http://1ul.ru/city_online/ekonomika/ news/vetroparki_iz_ulyanovska_na_vsyu_rossiyu [25.02.2017]

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Regional location factors in the Food & Beverages Industry

1. Location factors – Definition

Location factors have the following features: characteristics of locations; factors that influence the location of an industry; advantage for a certain economic activity; quantitative and qualitative factors; hard and soft factors; responsible determinants for firms’ success; e.g. power supply, labour supply, grants and financial incentives, local fiscal burden, transport infastructure etc.

2. Regional Location factors

2.1 Lower Rhine

•Excellent commercial space  NRW = Germany’s investment location No.1, more than 800 free commercial sites (1-300 hectare)

•But: in the lower Rhine area additional space is required

•High standard of living

•Strong business location for foreign direct investment

•Winner in the ranking “European Cities and Regions of the Future 2016/17”

NRW = most populous federal state of Germany, around 17,6 millions inhabitants generate more than one-fifth of the total German GDP with around 670 billion euros

•Excellent infrastructure  one of the central traffic points in Europe

•Every 5th German Startup comes from NRW

•NRW generates 4,4% of the European GDP  one of the most important economic regions in Europe

•More impact than in other European countries such as Switzerland, Sweden, Poland and Belgium

•Is considered a research and development site of world class, known for one of the densest research areas in Europe

•Local availability of highly qualified workforce and academics (70 universities and universities of applied sciences, more than 745.000 students)  driving workers for successful companies

•Internationalization of the study location NRW  the country’s innovative strength (almost every 9th student has a foreign passport)

•High burden due to energy costs for the manufacturing industry.

2.2 Nizhny Novgorod

•Logistical advantages

•One of the top-10 universities of Russia

•Great USSR’s heritage

•Fifth largest city in Russia

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•75th place out of 85 regions of Russia by ecology

•10th place by corruption level (considered as high)

•The salary mode is 13 381 rubles (211 euro) – 21st in Russia.

2.3 Ulyanovsk

•Developed transport infrastructure

•High human and scientific potential

•Comfortable living environment

•Administrative support for implementation of investment project

•Privileges and subsidies

•Formed investment sites

•Federal special economic zone.

2.4 Differences between the regions

Education/qualification is better in NRW than in Nizhny Novgorod and Ulyanovsk (Rankings). The population density in NRW is twice as much as that in Ulyanovsk and in Nizhny Novgorod. Organic food is much more popular in NRW than in Ulyanovsk or Nizhny Novgorod. More potential in NRW because of overall dispersity of sales markets unlike highly ceturalized Ulyanovsk and Nizhny Novgorod. NRW is well-known for its tendency toward innovations.

3. Food and beverage industry

3.1 Facts and figures

The federal state of North Rhine-Westphalia ranks first in the location of food & beverages industry enterprises (Figure 1).

The food industry in Ulyanovsk occupies 13% of the total industry in the region and is one of the leaders of economic development in the Ulyanovsk region.

Growth in food production in Ulyanovsk region

The Nizhny Novgorod region has 312 food industry organizations. The industry shows some growth despite overall GDP decline. There are 122 000 workers in this industry, which gives 7,3% of region’s workforce. The average salary of a highly-qualified agricultural worker is 19 344 rubles. The import is 1,5 times more than the export.

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Figure 1. Number of companies in the food and beverage industry in Germany by federal states in 2015

3.2 Important location factors

Important location factors are:

•Market proximity

•Transportation costs

•Logistics

•Water supply and costs

•Highly educated employees  labor market

•Energy costs

•Wage level

•Local business tax

•Land price.

The location of the food industry is determined by the commodity and consumer factors. There are three groups of industries:

1.Factories that are located close to sources of raw materials.

2.Factories that are located near places of consumption of finished products.

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3. Factories that deal with the processing of agricultural raw materials from their sources at first step AND Finishing (packaging, bottling) are located at the consumption points of finished products.

4. Case studies

4.1 Lower Rhine

Griesson – de Beukelaer. 1999 – a merger with Griesson de Beukelaer GmbH & Co. KG. It is one of the leading companies in the European sweet and salt market. Kempen has the largest capacity among the company’s plants. The company produces in Germany at the sites Polch (Rhineland-Palatinate), Kahla (Thuringia), Kempen (North Rhine-Westphalia) and Wurzen (Saxony), has 2000 employees and is famous for the Prinzenrolle.

Important location factors are:

•Location already existed

•Accepted by takeover / merger

•Favorable logistical aspects

•Highly qualified personal.

Bauer Funken. It was founded in 1985. It is a traditional family business with a wide assortment of salads, ready-made meals, snacks and dressings. Bauer Funken supplies daily universities, large kitchens, retailers and gastronomy and has about 100 employees.

Important location factors are:

•Local resident for generations

•Good transport connections  Ruhrpott, Large area Düsseldorf/Cologne,

Dutch border

•Proximity to customers.

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The founder Hans Riegel founded HARIBO (HAns RIegel BOnn) in 1920 and opened the shop in Bonn, as he grew up very near, in Friesdorf near Bonn. It is a family business, localized for almost 100 years. Since 2013 additional location in the Rhineland Palatinate county in the innovation park Rhineland, since this is ideally located in traffic engineering. It is not allowed to provide internal information to third parties.

Feinkost Reuter (delicacies). Was founded in 1919 in Mönchengladbach, a family company. It sells its products to local restaurants and supermarkets in a radius of 30 km.

6 companies were asked to tell something about their most important location factors: Valensina (Orange juice), Hitchcock (Lime and lemon juice), Mühlhäuser (Jam), Confisserie Esser (bakery products), Purino (Italian cuisine products), Feinkost Reuter. The “strong” Lower Rhine region allowed the company and the new currency “Euro” to survive several economic crises. The region is attractive because the company is interested in high-educated students from the Hochschule Niederrhein, for example Bachelors of Science Oecotropholgie to control the quality (QS management).

4.2 Nizhny Novgorod

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Sormovsky Hleb was founded in 1930. Largest baking enterprise in the region. Location factors are:

•Proximity to sale markets

•Governmental support.

DEMKA (Dzerzhinsk) was founded in 1935. It produces about one third of sausage products in the Nizhny Novgorod region’s market.

Location factors are:

•Proximity to sales markets

•Support of the government

•Favorable position in a highly competitive market.

4.3 Ulyanovsk

Ulyanovsk sugar factory. Was founded in 1967. Capacity: 3,000 tons of sugar beet per day. In 2001 the factory was reconstructed.

Important location factors:

•Possibility of harvest processing

•Large areas for sowing

•Climatic conditions

•Availability of labor and technical resources

•High-quality soil.

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Greenhouse “Teplichnoe”. Was founded in 1975, area 27 Hectare, volume of production 11 000 tons per year, grow tomatoes, cucumbers, eggplants, peppers, strawberries and roses.

Important location factors are:

•Supply the Ulyanovsk region and some other regions with its products

•Close to the traffic junction

•Climatic conditions.

Undory Mineral Water Plant “Volzhanka”. Was founded in 1967. The company has more than 1000 employees. “Volzhanka” is the leader in the market of bottled water and non-alcoholic beverages in Ulyanovsk.

Important location factors:

•The presence of artesian wells from which mineral water is extracted

•Supply the Ulyanovsk region with its products.

5. Comparison of the regions and summary

The results of a comparative analysis of location factors in the three regions are shown in Table 1.

Table 1. Location factors in the Food & Beverages Industry

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References

Bauer Funken (2007). Bauer Funken – Die Geschichte, http://www.bauerfunken.de/content/historie.shtml [15.05.2017].

BBC (2017). Industrial location factors, http://www.bbc.co.uk/schools/ gcsebitesize/geography/economic_change/characteristics_industry_rev4.shtml [15.05.2017[.

Bundesministerium für Ernährung und Landwirtschaft (2017). Zukunftsstrategie ökologischer Landbau, S. 18 http://www.bmel.de/SharedDocs/ Downloads/Broschueren/Zukunftsstrategie-%C3%B6kologischer-Landbau.pdf?

__blob=publicationFile [09.05.17].

GRIESSON-DE BEUKELAER (2017). Geschichte, http://www.griessondebeukelaer.de/deDE/unternehmen/geschichte/1850 [15.05.2017].

HARIBO (2017). HARIBO-Erfolgsstory, https://www.haribo.com/deDE/ unternehmen/geschichte.html [15.05.2017].

IHK (2013). Der Standort Niederrhein im Spiegel der Unternehmen, http://www.ihk-niederrhein.de/Standortanalyse [16.05.2017].

NRW.INVEST Germany (2017). Die 10 besten Standortfaktoren für NRW. https://www.nrwinvest.com/de/nrw-ueberblick/standortfaktoren-nrw/ [09.05.17].

NRW.INVEST Germany (2017). Ernährungswissenschaft in NRW, https://www.nrwinvest.com/de/branchen-nrw/ernaehrungswirtschaft [12.05.17].

Reuter (2017). https://www.feinkost-reuter.de/infos.html [15.05.17]. Statistisches Bundesamt (2015). Anzahl der Betriebe in der

Lebensmittelindustrie in Deutschland nach Bundesländern im Jahr 2015, https://printkr.hs-niederrhein.de:2654/statistik/daten/studie/321330/umfrage/ betriebe-in-der-lebensmittelindustrie-in-deutschland-nach-bundeslaendern/ [09.05.2017].

Trade and industry development (2009). Food Processing Location Trends, http://www.tradeandindustrydev.com/industry/food-processing/food-processing- location-trends-635 [15.05.2017].