SPEECH BY THE MINISTER FOR ECONOMIC SERVICES PROF. JOSEF BONNICI, AT THE OFFICIAL LAUNCHING OF UWT INTERNATIONAL LIMITED, AT CORRADINO INDUSTRIAL ESTATE

I am very pleased to be here today for the inauguration of yet another new German manufacturing enterprise in Malta which, in my opinion, is another quality addition to the 50 or so German manufacturing companies already operating in Malta and Gozo.

UWT Apparate GmbH is a fairly young, dynamic, family enterprise. It is specialised in the manufacture of products for the measurement of the volume of bulk materials and in the development of specific level-measurement solutions for use in special applications. These products are used in various applications such as for taking measurements of bulk products inside silos and containers, in power stations, the construction industry, in the plastics, chemicals, agricultural and food industries.

Its Malta subsidiary, UWT International Ltd, will not only be manufacturing level control units but will also carry out product development locally. This is the type of manufacturing concern that we are seeking to attract to our shores, namely enterprises producing quality products with a very high value added.

The Maltese subsidiary, which commenced production three months ago, already has 10 local employees on its payroll and this number is expected to increase in the near future. These jobs are highly specialised because the company’s manufacturing process is dependent upon very skilled labour, supported by the latest technology. For this reason, the company has also shown its commitment to its Malta subsidiary by investing more than Lm250,000 in the latest technology and equipment.

German investors have been amongst the pioneers in Malta’s industrialization, ever since the sixties and seventies. They now constitute the largest segment of foreign direct investment in Malta.

Many of them have also actually made Malta a tangible part of their industrial strategy. Most of them have been a success story. Out of a total of 57 new projects and expansions approved by the Malta Development Corporation last year, 12, including one expansion, originated from Germany. These included electronic components, software development, toys, quartz glass components, plastic injection moulding and electronic assembly.

German investors, like many others from other countries, have found Malta to be a highly profitable place to operate from and have managed to reach their targets much faster than was initially planned. Many a time, three-year projections have been achieved within just 18 months. Our strategic location between Europe and the potentially huge African market; the well-trained, highly skilled, multi-lingual labour force; competitive factory rates, coupled with a new incentive package provide the basis for Malta’s sound credentials as a viable location for foreign direct investment in manufacturing.

We are critically aware that we need to remain competitive if we want to ensure further foreign and local, direct investment in the manufacturing sector. It is for this reason that we have introduced the new Business Promotion Act which provides a highly attractive incentives package that will certainly enhance our competitiveness and help engender more investment opportunities. The new incentives range from reduced rates of income tax to investment tax credits, job creation and value added incentives and other measures that are part of a broader package than existed previously. The reaction to the new incentives package had been a positive one indeed.

While incentives are fundamental in attracting further investment, Government is also aware of the fact that investors want an organised, clean environment where to operate from. We are also working hard to achieve this objective, by establishing a distinct Estate Management Unit within the MDC and by embarking on an extensive upgrading exercise of a number of industrial estates. Over Lm2.6 million were spent on industrial estates last year alone.

I am glad to note that latest statistics for the first three months of the year continue to show positive results, within the manufacturing sector in particular. There has been an increase of Lm5.3 million in total sales by the large manufacturing enterprises, equivalent to a 2.1 per cent increase, an increase of nearly 170 in employment and an increase of nearly Lm3 million in the amount of wages and salaries paid by the manufacturing sector.

I would like to conclude by thanking Peter and Gerda Schropp, who founded UWT Apparate GmbH, for showing trust in Malta and for selecting our Island for their subsidiary company. The fact that they also intend to locate their research and development as well as their international sales department in Malta, shows that they certainly believe that Malta is an ideal place from where to do business.

In conclusion, I wish you success in this venture and pledge our continued support.