ENGINEERING

MACHINERY PRODUCTION BOASTING STEADY GROWTH

AGRICULTURAL MACHINERY  TRADITIONAL EXPORT COMMODITY THE FUTURE OF THE MACHINETOOL AND FORMING MACHINE SECTOR INDUSTRIAL DIGITALISATION IN PRACTICE

ENGINEERING 2 2017

CZECH BUSINESS AND TRADE

Czech Business and Trade Economic Magazine is Designed for Foreign Partners, Interested in Cooperation with the Czech Republic

 INTRODUCTION

Issued by PP AGENCY s.r.o. in cooperation with  Ministry of Industry and Trade of the Czech Republic  Ministry of Foreign Affairs of the Czech Republic  Ministry for Regional Development of the Czech Republic  Confederation of Industry of the Czech Republic  Confederation of Employers‘ and Entrepreneurs‘ Associations of the Czech Republic  Czech Chamber of Commerce  CzechTrade

Questions for Jiří Havlíček, Minister of Ministry Industry and Trade

PARTNER OF THE MAGAZINE: ICC Czech Republic

 LABOUR MARKET

EDITORIAL BOARD: Vladimír Bärtl, Jiří Hansl, Marcela Havlová, Jaromír Kohlíček, Dagmar Kuchtová, Martin Lukáš, Karel Machotka, Marie Pavlů, Tomáš Seidl, Miroslav Somol, Jarmila Škvrnová, Jan Špunda, Martin Tlapa, Jan Wiesner

 TRENDS

4

 ECONOMIC POLICY Machinery Production Boasting Steady Growth Exporters Continue to Boost the Economy

Enormous Labour Demand in Engineering

Industrial Digitalisation in Practice Czech Companies Start Getting to Grips With Industry 4.0 Czech Mining Machinery Boasts a Number of Achievements

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10

13 15 20

MANAGING EDITOR: Pavla Podskalská EDITOR: Jana Pike

 ANALYZE Czech Engineering Up By 3.7 %

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TRANSLATION: Vlasta Benešová PROOFREADING: Ivana Kadlecová, Matthew Booth, STAR Czech s.r.o.

 PR Czech Exports to the Russian Federation

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GRAPHIC DESIGN: Stanislava Podaná COVER PHOTO: www.pixabay.com; collage

 ANNIVERSARY VUES Brno Celebrates Its 70th Anniversary

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DEADLINE: 30/7/2017 © PP Agency ADDRESS: Myslíkova 25, 110 00 Praha 1 Czech Republic e-mail: journal@ppagency.cz www.ppagency.cz, www.doingbusiness.cz Press run: 10 000 copies. It is not allowed to reproduce any part of the contents of this journal without prior consent from the Editor.

Attitudes expressed by the authors of articles carried by CBT need not necessarily be consistent with the standpoint of the Publisher.

MK ČR E 6379, ISSN 1211-2208 „Podávání novinových zásilek povoleno Českou poštou, s. p., odštěpný závod Přeprava, č. j. 3468/95, ze dne 24/10/1995“

 EDUCATION Collaboration with Industry Is a Matter of Course for the Faculty of Engineering

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 ASSOCIATION The Future of the Machine-Tool and Forming Machine Sector Is Based on High Technological Quality Agricultural Machinery – Traditional Export Commodity

31 36

 PRESENTATION OF FIRMS 4 U Color, s.r.o.; ARGO-HYTOS s.r.o.; Česká exportní banka, a.s.; Český metrologický institut; ETD TRANSFORMÁTORY a.s.; E-therm TZ s.r.o.; CHEMOTEX Děčín a.s.; I.B.C. Praha spol. s r.o.; RETOS VARNSDORF s.r.o.; S+C ALFANAMETAL s.r.o., koncern; SANBORN a.s.; SV výrobní, s.r.o.; Terinvest, spol. s r. o.; TOOL TRADE s.r.o.; TOS VARNSDORF a.s.; TRANSROLL - CZ, a.s.; Veletrhy Brno, a.s.; VUES Brno s.r.o.

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INTRODUCTION

Questions for Jiří Havlíček, Minister of Industry and Trade

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the academic sphere, in collaboration with industry and with the support of the Czech Confederation of Industry. This is where the Industry 4.0 Initiative concept was formulated and where the first testbed has been set up for the needs of Czech industry. CIIRC strongly supports the transfer of know-how to industry and it collaborates with dozens of firms, for example Rockwell Automation, Eaton, Siemens, Škoda Auto, Honeywell and Airbus.

Industry 4.0 and all its elements will have a great impact on existing manufacturing models and supplier-customer relations.

For some industrial companies this will mean opportunities, for others a threat.

What influence do you think this will have on the Czech engineering industry?

The fourth industrial revolution will have a cardinal impact on engineering. It will accelerate production and make it more efficient, but at the same time it will place new demands on workers in this area. Therefore, one of the important and first steps we must support most emphatically and strongly is change in the field of education. The requirements for skills and competences in different professions will change. This in turn will need a new approach to education; people will have to educate themselves continuously.

What about the plans of your ministry in this area?

The fourth industrial revolution does not mean mere computerisation, informatisation and digitalisation. At the time of rapid internet this is a necessity. We'll have to view things from an interdisciplinary systemic angle. The revolution means the use of cybernetics, intelligent machines, their interconnection, intelligent data processing and storage. To master this task people must become aware of what they are aiming at and what they are doing. In the first place we must focus on changing the education system. And education for Industry 4.0 means a revolution in the education system and its restructuring, especially at universities.

This is the principal thing we need and this is also part of the broader social plan which the government has adopted in conjunction with the Society 4.0 Alliance.

Currently we are preparing a document named 7th Technology Programme Appeal – Industry 4.0, intended for small and medium-sized enterprises in the Czech Republic to provide new machinery and technological equipment.

Photo: Ministry of Industry and Trade archives; www.freeimages.com

Last year, the Czech Government approved the Industry 4.0 Initiative prepared by the Ministry of Industry and Trade whose long-term objective is to maintain and strengthen the competitiveness of the Czech Republic at the time of the onset of the “Fourth Industrial Revolution”. What exactly is the aim of this initiative?

The fourth industrial revolution means a change of thinking and the gradual introduction of technological changes involving cyber-physical systems and artificial intelligence elements. These technologies have a tremendous potential, but also its pitfalls which can accompany any system changes.

The rule applying to both firms and individuals is that only those who will succeed will seize the opportunity, adjust themselves to new situations and conditions as best they can, launch new strategies, and invest in new technologies, in development and the promotion of knowledge and skills.

The Ministry of Industry and Trade pursues three main objectives. The first is to boost the ability of Czech firms to break into supply chains and be able to integrate. The second objective is to make industrial production more efficient. The application of the Industry 4.0 principles will make it possible to accelerate production and make it more flexible, while the new technologies and processes will enable individualised mass production and material and energy savings. And the third is that knowing that some original Czech solutions have a high export potential, we must promote collaboration with research and academic institutions.

We are able to prepare solutions that will make it possible to sell not only patents and knowhow, but also software and production lines.

How are firms, institutions and especially public universities and higher learning establishments involved in the Industry 4.0 Concept?

The basis is the activity of businessmen and firms, who must be the first to adapt themselves to the objective development. And the State, in collaboration with them, must seek ways to support their initiatives. The firms and their ability to invest in their future are of key importance in this respect. We are trying to listen to them and to hear what they expect from the state. As for the state, it can set the limits and play its role for example by supporting technical education and laying down basic criteria in the area of research. The initiative towards the academic and research spheres, however, must come from the firms and the professional associations and chambers.

Czech firms are favourably inclined to the Industry 4.0 concept. Some 59 % of manufacturing firms are planning to invest in the 4.0 Industry technologies and instruments in the next three years and 36 % of them want to radically change their current business model under the influence of the Industry 4.0 concept. Approximately 34 % of the manufacturing enterprises already have experience with the application of specific Industry 4.0 technologies and instruments and half of the companies have already implemented data integration with their trade partners as a 4.0 Industry instrument.

It has set up its Industry 4.0 Industry Committee the aim of which is to actively prepare the Czech Republic for the new technological revolution and industrial innovation. Last February the government approved a document called Society 4.0 Alliance, which links together the activities of different ministries in the area of the future of work, technological innovations, digitalisation and education. Specifically the document includes the Industry 4.0 Initiative, Work 4.0, Education 4.0 and other initiatives (Construction 4.0, Transport 4.0, etc.).

Czech universities are beginning to adapt themselves to the Industry 4.0 concept.

For example the Technical University's Mechanical Engineering Faculty in Prague has started a Master's degree study programme focusing on Industry 4.0 and Bachelor study courses focusing on Computer systems for 21st century industry.

The Czech Institute of Informatics, Robotics and Cybernetics (CIIRC) attached to the Czech Technical University in Prague has become the main supporter of the Industry 4.0 initiative in

CZECH BUSINESS AND TRADE

Machinery Production Boasting Steady Growth The beginning of this year in the Czech Republic was marked by continuing acceleration of economic growth, based, traditionally, on the very good performance of domestic industry. In the first quarter economic growth even surpassed expectations, when GDP showed a 1.5 % increase (3.0% growth year-on-year).

Although this is still less than in 2015, it must be pointed out that in that year the economy was still strongly influenced by the drawing of residual EU funds, while this year the use of EU money, as figures in the state budget reveal, is far below the level approved by the EU.

The strong economic growth on the side of demand in the past two years is much due to high household spending, and the spending at the beginning of this year indicates that this trend can be expected to continue. The record-high employment rate, resulting in a steadily increasing labour shortage, puts pressure on wage demands. Against the background of an approximately two per cent inflation rate real wages are growing by around three per cent. Thus, higher wages plus the high employment rate are the main factors driving consumption and pushing retail sale revenues to their new highs. Another important factor is household investment targeted mainly at housing, which is one of the main stimuli triggering the current real estate property boom in the Czech Republic. Consumption, however, was not the only factor responsible for the high economic growth. This growth was greatly assisted by export, especially of automobiles and electrical machinery.

 DEPENDENCE ON INDUSTRY The supply side of the economy continues to be dominated by industrial manufacturing, which currently accounts for more than one-third of total value added.

As shown by statistics, the Czech Republic is the most dependent on industry of all the EU states and the largest employer among all the Czech economic sectors.

Added value in industry increased by nearly 4 % and its share of GDP growth in the first quarter was again dominant. Far behind industry as regards sectoral contribution to economic growth was the real estate market, followed by IT services and trade. On the other hand, construction remained in red figures following a fall caused by lack of contracts.

 AUTOMOBILE INDUSTRY

PULLING EMPLOYMENT AND EXPORT The favourable trend in economic development continues to be linked with industry. In the first five months industrial production increased by 5.6 % in real terms. The main sector responsible for this result was the automotive industry, which grew by more than 10 %. Domestic manufacturers are taking advantage of opportunities offered by the growing European car market and continue to increase their market share. This further strengthens the role of the automotive industry, which is not only the largest domestic industry as regards its share of production and export, as well as GDP growth (its direct and indirect share is

estimated at approximately 9 %), but also one of the largest and most attractive employers. Eurostat data and analyses of the trend in automobile manufacture show that in comparison with the pre-recession period which began in 2008, we can see that its real production rose by more than 100 %. As regards foreign trade, it can be said that transport equipment is most responsible for the growth of exports this year. In the first five months alone its exports rose by more than CZK 32 billion to CZK 432 billion, which accounts for 29 % of total Czech exports.

Although the share of car factories in the current growth of the economy is undeniable and hardly replaceable, car manufacture is not the only sector helping the economy in attaining more favourable results. Another industry which can boast very good growth this year is machinery production and the manufacture of electrical equipment, which grew by nearly eight per cent in real terms in the first seven months. In addition, new contract statistics indicate that the favourable trend shown by these sectors is far from ending. The same is revealed by analyses of machinery production, which is approximately 16 % higher than in the years 2007-2008. In the case of electrical equipment, the growth is nearly 55 %.

Here, too, massive growth of exports can be seen (+14 billion in machinery and 8.3 billion in electrical equipment). Taken together, automobiles plus machinery and electrical equipment account for nearly half of total Czech exports.

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ECONOMIC POLICY

 RECORD HIGH

euros have been stagnant at a level of approx. EUR 10 over the past four years.

Despite the faster growth of wages and the simultaneous rapid strengthening of the Czech crown after the lifting of the intervention regime by the Central Bank, the Czech Republic will remain among the first ten cheapest EU countries as regards labour costs.

EMPLOYMENT RATE Industry, which up to now has been rapidly boosting production, is beginning to run into barriers preventing its further expansion. One of the largest of them is lack of both skilled and unskilled labour. The record high employment rate throughout the economy brought about

TREND IN THE MAIN SECTORS OF INDUSTRY 2007-2008 = 100, SOURCE EUROSTAT, ČSOB 220

Recession Recese

200

Manufacturing Zpracovatelský industry

180

Automobilový Car production

160

Machinery Výroba strojĤ production

140

Electrical Elektr. zaĜízení equipment

120

Food industry PotravináĜský

100 80 60 I-07

I-08

I-09

I-10

I-11

I-12

I-13

I-14

I-15

I-16

I-17

Source: ČSOB

CONTRIBUTION OF SUPPLY TO THE GROWTH OF GROSS VALUE ADDED SEASONALLY ADJUSTED DATA, INITIAL DATA 5 4 percentage points

3 Services

2

ŽŶƐƚƌƵĐƟŽŶ

1

Industry

0

Agriculture GVA

-1 -2 -3 2010 Q1

2011 Q1

2012 Q1

2013 Q1

2014 Q1

2015 Q1

2016 Q1

2017 Q1

Source: Czech Statistical Office, GVA – gross value added

by strong economic growth has resulted in an ever growing number of vacancies.

In mid-2017, the number of unfilled jobs exceeded the 180 000 level and was the highest in the entire modern history of the Czech Republic. It is actually one of the main reasons why wages, and consequently wage costs, are growing so rapidly. In spite of this, there is no need to fear any worsening of competitiveness, as hourly labour costs denominated in | 6

 BOOM IN BUILDING

CONSTRUCTION While industry continued its successful expansion to foreign and domestic markets, the building industry has only this year begun to pull out from the recession caused by lack of contracts, especially those placed by public institutions.

While last year building production dropped by six per cent, this year it is showing a two-per cent growth, mainly

thanks to building construction, which is experiencing a boom thanks to the high – partly speculative – demand for commercial and housing property. On the other hand, the construction of the infrastructure, specifically as regards civil engineering, remains stagnant. The latest statistics of new building contracts, however, indicate that in this sector, too, the situation is beginning to stabilise.

A positive feature is the fact that unlike the past years, there is no shortage of financial resources.

 STRENGTHENING CROWN This year, the Czech economy must cope with two major trends. The first is the labour shortage, as mentioned before, and the second the strengthening crown.

Since the lifting of the intervention regime last April, the Czech currency has strengthened by more than 4 % and is now below the 26 CZK/EUR level. Due to the enlarged interest rate differential the crown continues to be attractive for foreign investors, who at the end of June held about 47% of the Czech CZK-denominated government debt. During those few months the crown has come close to levels at which it stood before its artificial weakening imposed by the Central Bank in November 2013. Considering the level of the natural and financial exchange rate hedging, the strengthening is not expected to become a hindrance for the Czech export-oriented industry, the main driving force governing the Czech economy. Although production cannot be expected to grow at such a rate as in previous months, this sector can be relied upon also in the second half of the year thanks to growing foreign demand and the innovative activity of domestic firms. Moreover, it can be expected that after the excellent financial results and partly due to the labour shortage industrial firms will focus more on investment in their development, aimed at promoting automation and robotisation. In view of the massive increase in demand this is a way of expanding successfully on the domestic and European markets.

Petr Dufek Analyst, ČSOB E-mail: pdufek@csob.cz

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ASSOCIATION

Exporters Continue to Boost the Economy

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In 2016, Czech exporters, despite the rising geopolitical risk, experienced stable external demand and thanks to the continued fixing of the exchange rate which practically unchanged the CZK/EUR rate.

The balance of trade surplus (in the national context) reached a record CZK 183.9 billion, a CZK 52.9 billion improvement year-onyear. While exports grew by 1.2 %, imports declined by -0.2 %. The lower worth of imports was due to the falling prices of imported commodities and lower investment imports. As in past years, the most important export destination is the European Union, which last year accounted for 84 % of total Czech exports, with the Euro zone accounting for 65.6 %. The largest importer of Czech commodities was Germany, with a share of 32.2 % of total Czech exports. The good performance of Czech trade in goods and services was most responsible for this country´s trade surplus, which amounted to 1.6 %, the highest percentage in history.

 MACHINERY AND TRANSPORT

VEHICLES TOP THE LIST OF EXPORTS The manufacture of machinery and transport vehicles was by far the most successful export sector last year. As in past years, the leader was the automotive industry, which in 2016 exported CZK 921 billion worth of motor vehicles, according to national statistics. Current development indicates that last year´s record will be surmounted. As regards engineering industry products, the second most successful export articles are electrical equipment, devices and appliances, followed by industrial machinery, such as heating and cooling systems, pumps, compressors, ventilators, boilers, fittings and transport carts.

Also in demand are office machines and automatic data processing equipment, such as memory units. In the GDP network, net exports helped to compensate for lower investment last year. The decline was the result of the high statistical base in 2015, which was the last year, when it was possible to draw money from EU funds in the framework of the 2007-2013 programming period. Inadequate preparedness of projects financed with public funds and the slow start of financing from the new 2014-2020 programming period were greatly responsible for the fall of civil engineering exports last year (-16.0 %). Total building production last year fell by 7.6 % in

real terms. Building construction declined by 3.3 %, greatly due to administration obstacles facing developers in Prague in connection with the absence of a good metropolitan plan. Lower investment and building activity negatively affected last year´s industrial production. Its volume increased by a mere 2.9 % in real terms, mainly due to the successful automobile production, where the output of motor vehicles grew by as much as 11 %. On the other hand, the mining industry found itself in the red because of low commodity prices (-9.0 %) and so did chemical production (-7 %) owing to breakdowns in the Kralupy and Litvínov refineries.

 HOUSEHOLD CONSUMPTION

PULLING THE ECONOMY UP Most responsible for the growth of the Czech economy last year was household consumption. Consumption attacked the historically highest level, prompted by an extremely low unemployment rate, which in turn pressed on wages. Last year, wages grew by more than 4 % in nominal terms.

This prompted the growth of spending and saving, which households realised massively on the real estate market, pushing up the prices of housing. Retail trade revenues (excl. sales of motor vehicles) last year increased by 5.6 % in real terms, with fuel sales growing by 7.5 %. The sale of motor vehicles grew by as much as 8.6 % and the entire services sector by 1.2 % in real terms.

As regards the price development, for most of the year the inflation rate continued to be low, reaching 0.7 %. This of course had a favourable effect on the purchasing power of Czech households. Nevertheless, the last few months of 2016 brought about a major acceleration of the price dynamics. In December consumer prices were 2.0 % up year-on-year, meeting the inflation target set by the Czech National Bank. The growth of inflation was partly due to the gradual waning of the positive shock of low fuel prices, more expensive food and, last but not least, the growth of prices in the nuclear component. This actually is a reflection of strong consumer demand stimulated by growing wages.

 STABLE CZK EXCHANGE RATE

IN 2016 The exchange rate of the Czech crown in relation to the euro was exceptionally sta-

Photo: BVV archives, CLOOS PRAHA archives

Last year´s macroeconomic picture was again favourable, without showing any major macroeconomic imbalance on the domestic scene. In addition, growth expectations at the beginning of 2017 further increased.

Although the rate of growth of the Czech economy last year was half that of the preceding year, its growth was broadly based and supported by both domestic and foreign demand, with only one exception: investments. In 2016, the volume of exports in real as well as nominal terms reached a record level and the balance of trade surplus was the highest in history.

The same applies to the balance of payments current account. In the last months of last year the inflation rate began to turn back to the inflation target set by the Czech National Bank and overcame it immediately at the beginning of 2017.

CZECH BUSINESS AND TRADE

ble with the exception of a few weeks after the Brexit referendum and the election of Donald Trump for American president.

In a floating rate environment, economic growth combined with foreign trade and balance of payments surpluses would cause strengthening of the currency. The Czech National Bank therefore continued its exchange-rate fixing policy during the whole of last year in order to prevent the crown strengthening below the 27 CZK/EUR level. In the second half of the year, financial investors began to test the exchange-rate fixing and the volume of forced CNB interventions increased massively. The massive euro purchases by the central bank and the expected strengthening of the crown after the approaching end of the currency fixing, however, caused a strengthening of the crown in the forward market and a shortage of long-term financing in euros. The result was an increase in the cost of exchange rate hedging for domestic exporters and at the same time a massive flow of capital into Czech government bonds. An especially huge demand was shown in the purchase of short-term bonds prompted by expec-

tations of a weakening crown and the use of cheap financing by foreign investors in crowns. The revenues of short-term Czech government bonds plummeted to under minus 1 %, so that these Czech bonds became the most expensive overall. The long end of the yield curve was showing a yield decline until September 2016, after which the situation reversed itself. Higher inflation rate and the growth of foreign bond yields terminated the trend towards lesser yields, which lasted since 2011.

Of key importance for the export-oriented Czech economy not only in the remaining months of this year, but also next year, is how the exchange rate will develop in the post-intervention period. During the first three months after the exchange-rate fixing was abandoned the crown strengthened by nearly three per cent. However, considering the size of the exchange rate hedging this is not expected to cause any serious problems.

In addition, thanks to the performance of the Czech economy in the first months of 2017 we are confident that our assumption will come true and the Czech economy this year will grow by close on three

 MACHINERY AND

The good Czech export performance in the first half of this year was influenced by the economic revival in the countries of Czech key foreign trade partners and the favourable situation in the European automobile markets. The volume of exports in the first half of this year is the highest ever and the export–import balance the second best.

TRANSPORT VEHICLES – UNEQUIVOCALLY THE MOST IMPORTANT EXPORT ITEMS “Figures for the first half of the year show the best half-year export results in the history of the Czech Republic. Demand for Czech goods in foreign markets is increasing, which plays into the hands of our industrial production,” says Jiří Havlíček, Minister of Industry and Trade. “Although this year´s trend, with imports growing faster than exports continues, the value of exports in June was the second highest this year,” Vladimír Bärtl, Deputy Minister of Industry and Trade, added, commenting on the June balance sheet. The close connection between Czech exports and imports, specifically the import requirements of Czech exports, affects the import side, which is also influenced by the growth of wages and domestic demand, partly linked with import demand. The foreign trade balance sheet already reflects the termination of the exchange rate intervention regime and the consequent strengthening of the crown.

per cent. And what is most important is that the structure of growth will be sound.

Once again we expect that the success of exporters in foreign markets will add to the improvement of the country´s economic performance. Even more important, however, will be the contribution of domestic demand driven by household consumption in the light of a record-high employment rate and growing wages. And, last but not least, investment will increase after last year´s respite. A growth in private investment could be seen already at the beginning of this year and it is hoped that investment financed with public money will increase as well. At the same time, however, a higher inflation rate goes hand in hand with the growth of domestic demand in comparison with this year, which will exceed the two-per cent inflation target and reach the 2.3 per-cent level. The normalisation of the monetary policy will continue with gradually rising interest rates.

Jan Vejmělek Chief Economist, Komerční banka E-mail: Jan_vejmelek@kb.cz

In the January to June period, the total trade surplus in national terms was CZK 106.5 billion, CZK 17 billion less than last year. Year-onyear exports were up by 6.1 % and imports by 7.6 %. From the commodity point of view, the unequivocally most important export items in terms of value on a long-term basis are machinery and transport vehicles, whose export was 3.6 % (CZK 2.4 billion) higher year-on-year.

An especially high export increase was shown by computing equipment (by CZK 3 billion), telecommunication and reproduction equipment (by CZK 1.3 billion), equipment for certain sectors of industry (by CZK 1.2 billion) and road vehicles (by CZK 1.1 billion). Machinery and transport vehicles imports rose by 4.4 % (by CZK 6 billion) year-on-year. Especially high were the imports of electrical equipment, devices and appliances (by CZK 3.6 billion), road vehicles (by CZK 2.4 billion), and computing equipment (by CZK 1.4 billion). In the January to June 2017 period the total balance of trade surplus amounted to CZK 242.2 billion, CZK 39.8 billion less than last year. This year exports increased by 5.2 % to CZK 2 126.5 billion and imports by 8.4 % to CZK 1 883.3 billion.

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LABOUR MARKET

Enormous Labour Demand in Engineering Demand for technically skilled specialists is growing as a result of the boom in the manufacturing industry. Companies are offering many jobs and as in most other European markets, in the Czech Republic, too, the shortage of labour is reaching extreme levels.

GROWING AND FIRMS ADDRESS JOB SEEKERS ABROAD At the end of 2016, the number of vacancies in engineering and the manufacturing industry exceeded the 80 000 level, according to official sources, with some 40 % of them being skilled labour positions. In addition, analyses have revealed an abysmal difference between the number of vacancies and that of technically educated graduates, with universities unable to supply a sufficient number of technicians to fill the gap. Regrettably, the outlook that the situation will improve within the next few years is not too optimistic. If companies are unable to fill their vacancies in accordance with their plans, they become less flexible and open to the idea of hiring labour from abroad and employing less skilled work| 10

ers, whom they must first train and invest money in their education.

 FIRMS SEEK QUALITY EXPERTS;

COMMUTING TO WORK IS STILL A PROBLEM In 2016, companies had problems with finding skilled quality experts – quality engineers, quality managers; also much sought-after were good designers acquainted with the CATIA programme (both mechanical and electro engineers), technologists, process engineers and production efficiency specialists. Job seekers on the other hand are most motivated by financial remuneration, good location of the workplace, career advancement and a pleasant working environment. In general, readiness to commute is very low in the Czech Republic, although in this

sector job seekers are among the more flexible, which is given by the nature of the sector itself. In this respect, a very important factor is the length of commuting time and related costs. This can be compensated by commuter benefits and in senior positions the use of a company vehicle for private purposes.

 WAGES IN THE SECTOR ARE

GROWING, COMPANIES ARE NOT AGAINST INDIVIDUAL AGREEMENTS According to Hays, the long lasting shortage of manpower in the manufacturing sector puts pressure on wages. In 2016 remuneration of skilled workers grew, depending on the position and sector, by from 5 % to 10 %. The remuneration amount is strongly influenced by the job

Photo: www.freeimages.com

 THE NUMBER OF VACANCIES IS

CZECH BUSINESS AND TRADE

ber of vacant positions has been steadily rising in the past three years, while the response to them is declining. A turn occurred in 2014. Most in demand are the following professions: design engineer (21 % of offers), CNC machine operator (15 % offers) and technologist (14 %), followed by the professions of welder, locksmith, and technician. Most applicants are seeking employment as assembly workers, welders, and locksmiths.

What then are wages in the engineering sector? As the enterprises within the sector do not have much problem with their sales and, in addition, there are often strong trade union organisations in the sector, wages in engineering are above average.

In 2016, average wages in the engineering industry amounted to CZK 28 890, according to Platy.cz portal. Since 2010 average wages in this sector have been growing relatively evenly, by from 2 % to 3 % annually. It is therefore not surprising that the highest average wages are paid in Prague, where they are 28 % above the national average. This level, however, is somewhat distorted by the fact that the companies often have their central offices located in Prague.

Coming next is the Plzeň Region with 7 % and the Liberec Region with 4 % above the average. At the other end of the spectrum – 9 % below the national average – are wages

in the Moravia Silesia Region and the Vysočina Region. In coming years, engineering will be faced with another challenge: the start of the fourth industrial revolution, which means digitalisation and automation. This trend will necessarily bring about important changes in the labour market.

Robotisation and automation of routine manual work will put greater pressure on education and knowledge. “In the education system significant changes will have to be made. This is a burning problem, which affects technical branches already now. For a number of years, engineering and technological firms have been calling for academic institutions to adjust their tuition programmes to their needs,” says Zuzana Lincová of Profesia.cz. “In simple language, this means that the firms suggest that tuition align itself closer to real practice, in all respects, and that real practice may become part of the tuition. Another requirement is to adjust the different types of tuition institutions, especially as regards secondary-level education, so that the school leavers may be better prepared for entering the labour market. This is because the firms realise that to maintain their competitiveness, they need good workers who will do good work, make quality products and be able to develop new products and technologies,” Lincová says.

SURVEY OF WAGES IN THE MANUFACTURE & ENGINEERING SECTOR IN CZK

seeker´s previous experience, sector and knowledge of foreign languages. The difference in remuneration, especially as regards university graduates and juniors who had practical training during their studies, can be up to 25 % in comparison with applicants without expereience. Also important, of course, is the applicant´s field of study. The urgent need of new workers, however, forces companies to adjust and change employment benefits and sign individual work contracts. About three-quarters of companies are willing to re-consider the amount of their financial offer. The shortage of skilled workers in the market is a greater problem than it may seem at first sight. The generation of the old guard of experts is leaving and their positions are often difficult to fill. According to Profesia.cz job portal, the num-

Junior Engineer 0-3 yrs experience MIN/MAX/TYPICAL Production/Manufacturing Engineer 28 000/45 000/35 000 Quality Engineer 27 000/45 000/35 000 Maintenance Engineer 27 000/40 000/29 000 R&D Designer/ Developer (electro, mechanical) 30 000/50 000/38 000 Project Engineer 30 000/50 000/35 000 Experienced Engineering 3-5 yrs experience MIN/MAX/TYPICAL Production/Manufacturing Engineer 35 000/60 000/45 000 Quality Engineer 35 000/60 000/45 000 Maintenance Engineer 32 000/45 000/38 000 R&D Designer/ Developer (electro, mechanical) 40 000/60 000/50 000 Project Engineer 40 000/70 000/50 000 Senior, Team Leaders, Middle Management MIN/MAX/TYPICAL Production/ Manufacturing Supervisor 40 000/70 000/55 000 Quality Supervisor 40 000/70 000/55 000 Maintenance Supervisor 35 000/60 000/45 000 R&D Designer/ Developer (electro, mechanical) 45 000/90 000/60 000 Project Manager 50 000/90 000/70 000 Source: Hays

11 |

LABOUR MARKET

 INTEREST IN TECHNICAL

STUDIES IS INCREASING An increasing number of students are interested in technically oriented education. The proportion of those choosing secondary technical education increased to 37 %, the highest percentage for the past 20 years. Nearly 70 % of the total number of students enrolled in secondary vocational schools choose schools offering the award of the complete secondary school qualification certificate.

 GOOD NEWS FOR EMPLOYERS The number of students attending technically oriented secondary schools is increasing.

“This is good news for employers, who welcome especially the fact that this year more students are enrolled in electro-mechanical courses than in 2016,” says Helena Úlovcová, Head of the National Education Institute. In 2017, the proportion of students enrolled in vocational schools with complete secondary education accounts for 37.1 %, the highest percentage ever recorded.

ARGO-HYTOS is a hydraulic components and system supplier of the world market leaders when it comes to mobile working machinery and mechanical engineering.

ARGO-HYTOS has established an international network of production and distribution companies to provide the full support our successful global customers are accustomed to.

We offer customer-oriented added value and expertise at the customers’ location.

As a medium-sized family business with more than 1300 employees, ARGO-HYTOS has more than 70 years of experience in Fluid & Motion Control and Filtration technology in mobile and industrial hydraulics. Especially in the mobile hydraulics sector ARGO-HYTOS has developed into one of the innovation leaders.

We view ourselves as an international partner implementing innovative and individually designed system solutions together with our customers.

The basis for this is a wide modular product range which can be flexibly expanded to customized solutions. Thereby we draw on our entire wealth of know-how and give new impetus to modern fluid power technology, time and again.

ARGO-HYTOS owns a number of patents and in many cases has set new standards in its industry.

With production companies in the Czech Republic, Germany, Poland, India and China as well as numerous own distribution and assembly companies the ARGO-HYTOS Group is active worldwide. Furthermore we are cooperating with a network of professional service partners.

ARGO-HYTOS aims to make a substantial contribution to improve customer products and sustainably ensure significant customer benefit.

We produce fluid power solutions www.argo-hytos.com

| 12

Photo: BVV archives; Siemens archives

ARGO-HYTOS - A strong brand in fluid technology

CZECH BUSINESS AND TRADE

Industrial Digitalisation in Practice For firms in the Czech Republic with a turnover of less than CZK 200 million, Industry 4.0 is rather a remote idea. Currently, only two per cent of smaller and medium-sized enterprises use digitalisation, according to a study carried out by the CEEC Research analytical company.

This finding is not too gratifying as the fourth industrial revolution is expected to prompt a radical transformation of European industry targeted towards greater digitalisation. What is gratifying, however, is that the Czech Republic has very good prerequisites for this form of modernisation. Surveys show that a number of Czech firms are planning to invest in the gradual digitalisation of production and other technologies in the next three years.

The real start of what we call Industry 4.0, however, will require a number of changes, including the reform of the education system. The opinion is that the Czech domestic environment has the best prerequisites for a gradual transition towards greater automation and digitalisation of production. “The Czech Republic has long ceased to be a mere assembly workplace and has become one of the most innovative countries in Central and Eastern Europe. It is reputed for its inventiveness, and is the cradle of a number of unique top technologies. The country´s innovation rate is very high and as a result a very highly advanced level of digitalisation is

to be expected to be achieved within the next ten years,” Bernard Bauer, executive member of the board of the Czech-German Chamber of Commerce and Industry says. The fact that Czech manufacturing companies are aware of the potential of the fourth industrial revolution is confirmed by a recent EY survey according to which more than half of the firms are planning to invest in Industry 4.0 facilities in the next three years, whether in the construction of data centres and computer virtualisation or the use of autonomous robots. Companies hope for the fourth industrial revolution to bring them higher labour productivity and to help solve the labour shortage. This was confirmed

by Lubomír Valenta, marketing manager of Lomax Company, which manufactures garage gates and shading equipment.

“Considering the current very low unemployment rate, greater automation of production is the optimum solution,” Valenta said. The continuously growing proportion of machinery in industry, however, also has its limits. “Although it is true that automation and digitalisation are in

a way leading to decreased labour needs in production and the creation of financial resources for raising the workers´ wages, it is also true that this modernisation causes a loss of flexibility in production, especially as regards customised production,” said Jiří Prášil, managing director of ZKL concern, the largest manufacturer of special and technological bearings in Central Europe. Czech manufacturers have been preparing for the start of the fourth industrial revolution for quite a long time and a large part of them have already introduced important measures towards further modernisation. Most often this concerned the improvement of the information systems and a change of the system of planning and collaboration with research institutions. “Introducing automation in production processes has become a must.

Over the past 12 months we have cut the number of employees by 150 and at the same time we slightly raised production, which allowed us to raise wages by up to 12 %. This year we are planning to digitalise processes in the field of technical and production development,” Prášil added.

13 |

TRENDS

PULLING THE DIGITALISATION PROCESS Digitalisation and automation are currently the domain of firms, such as Siemens, Bosch and ABB. Larger firms in the Czech Republic introduce the Industry 4.0 system in 63 per cent of cases. “The new technologies include cognitive systems, enlargement of virtual reality, new generation safety technologies, the internet of things, robotics and 3D print,” says Petr Říha, director of the Czech affiliation of the analytical company IDC. Much more widespread is the use of cloud computing and mobility and data analyses. Czech firms belong to the average as regards digital knowledge.

More than half of them are able to use it for short-term tasks, according to IDC surveys. Nearly 40 per cent of firms are planning to increase investment in information | 14

and communication technologies in 2018.

The average investment is about four per cent of the firms´ budgets.

 SMALLER FIRMS WILL GET

SUPPORT FROM EU FUNDS The Ministry of Industry and Trade (MIT) is trying to give a boost to raising the low proportion of smaller firms, mostly owned

by Czech businessmen, planning to introduce digitalisation, by making it possible for them, starting in August 2017, to obtain CZK 500 million for new technologies from EU funds. The money will be allocated from the Business and Innovation Programme.

In 2017, the Czech Technical University (CVUT) in Prague opened a “testbed”, where firms will be able to test new theories and technologies. Most company directors expect that the introduction of Industry 4.0 will gradually cut down the number of jobs – by up to seven per cent. At the same time, however, one-third of firms envisage the creation of new jobs in the area of services and information technologies.

Photo: Siemens archives

 FOREIGN AFFILIATIONS

CZECH BUSINESS AND TRADE

Czech Companies Start Getting to Grips With Industry 4.0 INDUSTRY CLUSTER 4.0 is an important association of engineering and IT firms in the South Moravia Region set up with the aim to promote their competitiveness and innovative activities, especially by putting into practice the “Industry 4.0” concept.

We asked Mr Radek Kopecký, representative of INDUSTRY CLUSTER 4.0, about the current practice in the area of digitalisation in the Czech Republic.

The vision of the Fourth Industrial Revolution first appeared in 2011. Its basic concept is the creation of “clever factories” using cyber-physical systems. How do Czech engineering firms react to this idea?

A few months ago, the Regional Chamber of Commerce in Brno, in conjunction with the engineering INDUSTRIAL CLUSTER 4.0 carried out an analysis of preparedness to show how firms in the South Moravia Region are prepared to introduce the Industry 4.0 system. The results of the analysis reveal that the overwhelming majority of firms realise the need to gradually digitalise and automate their production processes if they want to maintain their competitiveness and quality of production. Their decisions are strongly affected by their realisation of the labour shortage, which significantly limits their further expansion.

Currently one-third of firms have already introduced the Industry 4.0 system according to a recent CEEC study; the differences between the segments, however, are great, with mainly large companies investing massively in new technologies.

Full integration of the Industry 4.0 concept in production is very demanding financially and it is understandable that small and medium-sized firms will proceed in this direction in smaller steps to begin with. They must first become convinced that investing

in these elements will be reasonably returnable, or that it will solve their burning problems in their everyday practical production, whether this concerns optimisation of control, quality of production, robotisation or the integration of other advanced production technologies. Not all trends in production will find their reasonable use in certain domestic firms as much will depend on the character and size of their production.

Can you mention any examples of the integration of the 4.0 idea in the CR? In conjunction with several firms associated in the cluster or standing outside it a 4.0 production unit was formed in Intemac Solutions company in Kuřim, which shows how existing technologies combined with Industry 4.0 elements can be used in production. The 4.0 production unit is a platform connecting the machine tool with a robot and measuring station. The unit is unique in that it connects different equipment from different manufactures to form a whole that can communicate together and is prepared to be integrated in smart factories anywhere in the country. For example it can combine adaptive production, integrated robotics and the uniform control of the equipment. The unit can be further developed with the addition of more applications and be used as an instruction and training workplace for firms and students of technical schools and universities.

What opportunities and dangers can you see in the area of Industry 4.0 in the CR? How does the CR stand in comparison with other EU states?

The Czech Republic is an industrial country. This offers great opportunities, but it also involves certain dangers. It will depend on the ability and readiness of Czech firms to adjust this concept to their production. Also, much will depend on the political representation and the academic sphere, if they will be able to support them in their efforts. Technological knowledge in this country is without any doubt at a high level. This knowledge, however, must be transferred into practice and into the mindset of people, who will be faced with the morphological change of the production processes and cope with it.

Members of the Association Act-In Machine Services s.r.o.

ALTA a.s.

ASTRA MOTOR spol. s r.o.

AZ Tender s.r.o.

B + R automatizace, spol. s r.o..

Centrum dopravního výzkumu, v.v.i.

ELEDUS s.r.o.

ESB Rozvaděče, a.s.

Intemac Solutions, s.r.o.

MARSTON-CZ s.r.o MAUTING spol. s r.o.

www www.act-in.cz www.alta.eu www.en.astramotor.cz aztender.cz www.br-automation.com www.cdv.cz www.eledus.cz www.esb-rozvadece.cz www.intemac.cz marston.cz www.mauting.com

P-D Refractories CZ a.s.

www.pd-refractories.cz

Poclain Hydraulics, s.r.o.

www.poclain-hydraulics.com

První brněnská strojírna Velká Bíteš, a. s.

www.pbsvb.com

Regionální hospodářská komora Brno

www.rhkbrno.cz

SIEMENS, s.r.o., odštěpný závod Industrial Turbomachinery Strojírenský zkušební ústav, s.p.

STROJÍRNA OSLAVANY, spol. s r.o.

www.siemens.com

www.szutest.cz www.st-os.cz

TOS KUŘIM - OS, a.s.

www.tos-kurim.cz

Unicorn Systems a.s.

unicorn.com

Vysoké učení technické v Brně ZEBR, s.r.o.

ZNOJEMSKÉ STROJÍRNY, s. r. o.

www.vutbr.cz www.zebr.eu www.strojirny.cz

15 |

ANALYSIS

Czech Engineering Up By 3.7 %

“In 2017, engineering will continue to grow with the automotive industry being once again the main sector pulling its growth up. In consequence of the slowdown in demand in certain European markets, however, a more moderate growth is to be expected,” Bohdan Wojnar, president of the Automobile Industry Association, said. Ninety-nine per cent of the 151 directors of the market leaders enquired in a survey carried out by the analytical company CEEC Research agreed on this figure. According to Lukáš Chmel, sales director of ŽĎAS, the situation in the sector will devolve from foreign competition and the added value of Czech products. “Conventional power engineering has been tending to stagnate for several years and the development of the engineering segment outside the automotive industry will be noticeable primarily in the area of renewable resources and in special programmes, such as the arms industry,” Chmel added.

 GROWTH OF REVENUES

TRIGGERED BY MORE CONTRACTS AND HIGHER EXPORTS This year, revenues are expected to grow by 7.1 %. Engineering firms are planning | 16

to achieve this increase by raising the volume of their contracts (51 %) and expanding to foreign markets (24 % of firms).

Fifteen per cent of firms are planning to raise the prices of their products. Firms in general are planning to achieve higher revenues by making more contracts (51 % of directors) and by expanding to foreign countries (24 % of firms). Especially large firms (29 %) will intensify their activities outside the CR. The revenues of engineering firms, mainly the big ones, derived from export will this year increase by 6.9% on an average, according to the study.

“In recent years our exporters have confirmed their ability to attract new orders and there are good prospects that they will surmount the 2016 record figures. On the other hand it is to be expected that Czech exports will be affected by the termination of the exchange rate interventions and the return to the free CZK/EUR exchange rate,” Jaroslav Hanák, president of the Czech Confederation of Industry, said. In 2017, the revenues of Czech engineering firms derived from exports will grow by 6.9 %, on an average, according to 90 % of the firm directors. In 2018, the firm directors expect further growth, by 5.8 %. Mainly big firms expect their revenues from export to increase.

“Despite the slowing down of the growth of certain economies, especially in Western Europe, total exports are expected to show a favourable development. A certain revival is also expected in Russia and Ukraine, which is also a positive signal.

At the same time, however, exporters are limited to a certain extent by a labour shortage on the Czech labour market and the unfavourable structure of the unemployed. Here, greater openness should be shown by the Czech government as regards cross border migration. In general it can be said that Czech exporters should be more active in building contacts with end customers and raise the value added to their products. The Czech Republic should develop towards reaching the highest technological standards,” Bohdan Wojnar, President of the Automotive Industry Association and member of the board of Škoda Auto, a.s., said.

Seven in ten of the directors we queried believe that Czech exports are too dependent on exports to EU countries.

“I think it is a pity. If Czech firms were in a position to export directly, not through Germany, they would not be losing such a high proportion of their profit margins,” Michal Košacký, executive secretary of Doosan Škoda Power,” says. Last year,

Photo: Siemens archives

In 2017, Czech engineering will grow by 3.7 % year-on-year, but next year its growth will be only 1.5 %. The revenues of engineering firms will this year increase by 7.1 % on an average and next year by 5.7 %, according to a CEEC Research study.

CZECH BUSINESS AND TRADE

nearly 83.6 % of the total volume of Czech exports went to EU states.

 INDUSTRY 4.0 IN ENGINEERING A widely discussed phenomenon in engineering is what has come to be termed as Industry 4.0. Firm directors are discussing the possibility of raising production by the digitalisation and automation of manufacturing processes. This may simultaneously become a way to solve the labour shortage. “Industry 4.0 methods and instruments are expected to save time and money and increase the flexibility of firms. This, however, also involves certain risks, e.g. endangering the networks, data abuse, etc. The Industry 4.0 idea brings along hopes for improving the quality of human life by raising the productivity of labour and eliminating monotonous and physically demanding professions,” Jiří Šubrt, director of the Jihlava Technological Park, CGMC cooperative, points out.

“As a global leader in power engineering

and automation, we see the future very positively. The prognosis of long-term demand in ABB´s main client sectors – power engineering, industry, transport and infrastructure – continues to be positive.

The main factors are a strong shift in electricity consumption management, raising productivity in industry by the internet of things (IoT) and digital technologies, combined with rapid urbanisation and raising energy efficiency in transport and the infrastructure. These are global trends influencing industry and power engineering also in the Czech Republic,” Tanja Vainio, managing director of ABB Czech Republic, adds. Nearly all the directors queried (91 %) believe that the application of Industry 4.0 will gradually reduce the number of jobs in the traditional sectors. At the same time most of them add that it will not be possible to fully replace the human factor by automation and that the reduction will be only partial and applicable only in certain sectors and types of

CMI is a Czech national metrological body which provides a comprehensive range of metrological services at the highest technical level in all fields of scientific, technical and economic activities. CMI is a signatory of the CIPM MRA mutual recognition arrangement (www.bipm.org) and most of its metrological services are accredited. www.cmi.cz

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17 |

production (60 %). Manpower reduction will proceed gradually, with about 67 % of the directors envisaging a reduction in the number of their own employees and this by only 7 % on average. On the contrary, companies will create new workplaces in the area of services and ICT in connection with Industry 4.0 (26 % of the directors confirm this). In turn, the number of jobs in those areas will also grow by 7 %.Thirty-eight per cent of the directors expect only a partial increase, but 36 per cent of them do not expect any job creation in the area of services and ICT.

| 18

 THE QUALITY OF TECHNICAL

EDUCATION WILL IMPROVE The current system of Czech technical education responds inadequately to the new trends in industry. It will be needed to review the structure of study branches and adjust their content to practical needs, while intensifying collaboration between schools and firms. Firms have noted that technical education is receiving more support, but no increase in the number of technical classes being newly opened is noticeable. “We are absolutely satisfied with the quality of Czech engi-

neering and the standard of skilled labour here in the Czech Republic. Nevertheless we expect that the quality of the technical sectors and the quality of technical education will continue to increase, as it did in the past decades. This of course is very important for us as we have seven manufacturing plants, four research and development centres and two engineering centres in the Czech Republic. In the coming years technical quality will be even more important.

As leaders of the fourth industrial revolution, also called Industry 4.0, ABB is moving from the existing connected systems, which only collects data, to industrial plants and machines, which carry out monitoring and diagnostics, with data analysis and a follow-up optimisation of the processes based on data.

For customers in industry this means longer periods of trouble-free operation and higher efficiency and productivity.

It also means that we shall need more technical experts in different branches.

I am pleased to say that we collaborate with all the main universities and other higher learning institutions in the Czech Republic with the aim to further improve the quality of the technical sectors,” Tanja Vainio, managing director of ABB Czech Republic, says.

Photo: Siemens archives

ANALYZE

Contacts: CHEMOTEX Děčín a.s.

Děčín XXXII-Boletice nad Labem 63 407 11 Děčín Czech Republic Phone:: +420 412 709 222 E-Mail : chemotex@chemotex.cz

CHEMOTEX Děčín a.s. is a continuator of a traditional Czech chemical production. Since 1993 we are a joint stock company with more than 20 years of experience not only in the production of industrial chemicals. Due to substantial investments into buildings, production technologies and equipment, our company keeps competitive ability in today’s highly competitive environment. Moreover, it keeps on track with market demand with the emphasis on the flexible reaction to customer needs.

We have a broad product portfolio for practically all sectors of industry, including engineering. Our R&D department can tailor the requirements of its customers according to their needs based on the expertise, market research, as well as own surveys. Moreover, modification of existing products according to the specification of a customer does not pose any problem for our experts.

In our work, we try to keep the pace with the latest scientific knowledge and trends of development.

Products useful for engineering: Q degreasing products – product line EBOL and KORYNT

(water soluble, solvent types) Q Water mixable cutting fluids – product line IDAZOX (mineral base, semi-synthetic, synthetic) Q Anti corrosion paints – product line RISTIN

Certificates: ISO 9001:2009, 14001:2005 Responsible care

w w w.chemotex.cz

TRENDS

Czech Mining Machinery Boasts a Number of Achievements

Contacts Sdružení důlních a strojírenských technologií (Association of Mining and Engineering Technologies) www.sdst.cz Těžební Unie (Mining Union) www.tezebni-unie.cz Česká dobývací technika s.r.o. (Czech Extraction and Mining Technology) www.cdte.cz

| 20

 ACHIEVEMENTS AND

 UNEX ON THE WAY TO

PRESENTATIONS

MODERNISATION

An important event, the International Mining Exhibition IME 2016, took place in Kolkata in 2016, where the Czech Republic was represented in the form of official participation with the financial support of the Ministry of Industry and Trade. The joint Czech exhibition featured the production programmes of the Czech Extraction and Mining Technology Association and the Czech firms Enelex, Ferrit, Fite, Inco Engineering, M&Bc Fiamoli, Řetězárna, T Machinery, TDS Zampra, Wikov MGI and ZAM Servis. Czech firms operating in the area of mining and environmental services also presented themselves in Peru in September 2016 within the framework of a joint presentation event the objective of which was to promote trade collaboration in mineral raw material extraction and mining, environmental services and renewable energy sources. For example, the Czech manufacturer of DUVAS-UNI mining machines had its own exhibition at the regionally important (sixth) Expomina fair in Lima. The range of high-quality and highly innovative mining machines, which comprised drilling cars, loaders and pick-up machines aroused great interest from the trade fair visitors. The machines are used specifically in deep mines as well as in the construction of infrastructure. Another technological mission will take place in Chile in November 2017 and will focus on the promotion of scientific and technical collaboration in mining and related sectors. The experience and advanced technological skills of the Czech Republic in the mining sector have significant collaboration potential.

UNEX joint stock company is a longtime manufacturer of wheel excavators – heavy equipment used for the removal of large volumes of earth, coal and ores in open pit mining. The company has more than sixty years experience in the development and manufacture of such heavy machinery. Thanks to its highly-trained teams of experts it can react flexibly even to clients' individual requirements. Nearly 130 wheel excavators and loaders made to order can be found for example in Russia, Ukraine, Bosnia and Herzegovina, Macedonia, Bulgaria, Poland and neighbouring Slovakia in addition to the Czech Republic. In 2016, UNEX signed a contract with the SOKOLOVSKÁ UHELNÁ mining company for the overhaul and reconstruction of a KU800/12-R wheel excavator worth CZK 275 million. Its purpose is to modernise and prolong the service life of the wheel excavator, one of the largest self moving machines to be ever made on Earth. “The KU800/12-R giant machine was built in Uničovské strojírny engineering works (today´s UNEX) in 1981 and was put into operation in the newly opened brown coal open cast mine George, where it has been continuously working reliably to this day. In 1996 the giant machine underwent an overhaul and in 2003 the reconstruction of the mining tips, wheels and buckets, the cabin and steering wheel transmission were undertaken.

Currently this walking giant will undergo another overhaul combined with its modernisation,” says Jan Šilhavý, director of UNEX product group. “We regard the award of the contract for the repair and

Photo: www.pixabay.com

Czech engineering (CZ-NACE 28) comprises a very wide range of equipment affecting materials mechanically or thermally or carrying out production processes on the materials (e.g. handling, spraying, weighing or packing), including the manufacture of their mechanical components which produce and use energy. This also includes specially manufactured parts for those machines and equipment.

The section further includes stationary, mobile or hand operated equipment regardless of whether it is intended for industry, the trades, construction and agriculture or for use in households. It also comprises the manufacture of special equipment for passenger and freight transport. Its important part is mining equipment mainly as a result of the growing demand for primary resources. In addition, the Czech Republic can boast a number of achievements and presentations in this area.

Producer of Horizontal Boring Mills NEW CNC AND CONVENTIONAL HORIZONTAL BORING MILLS T-TYPE – TABLE TYPE – FLOOR TYPE

www.retos.cz TRADITIONAL CZECH QUALITY COMPANY HISTORY BACK TO THE BEGINNING OF THE 20th CENTURY

YOU CAN COUNT ON US Q expert

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than 800 overhauls and modernisations show our

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MSV BRNO 2017 Get an impression of our large portfolio at this year’s fair. We will present our new boring mills and accessories and the many options rre esu sultti from combining them. We are looking forward to resulting m me ee etti ti you between October 9th and 13th at last year`s meeting stan st an nd in pavilion P. stand

RETOS VARNSDORF s.r.o. Žitavská 913, 407 47 Varnsdorf, Czech Republic | E-mail: info@retos.cz | Managing Director: Ing. Jan Müller Tel.: + 420 413 039 103

TRENDS

modernisation of the wheel excavator as an appreciation of the fact that as the original manufacturer of the machine we are using the irreplaceable experience of our employees and the originality of the drawing documentation. UNEX is a leading world manufacturer of equipment for the continuous mining of large volumes of earth, coal and ores in open pit operations and equipment for landfill management in power plants. The Uničov works used to make conventional wheel excavators on caterpillar or hydraulically controlled walking undercarriages with telescopic wheel boom loaders for overburden, coal and minerals excavation.

Its other products include long-distance belt conveyers for the continuous transport of large volumes of materials to long distances and loaders used for stored material handling.

 OSTROJ – MINING MACHINES

WITH TRADITION Mining machines are items with the longest tradition in the company´s manufacturing history. Its main mining machines and equipment include mechanised reinforcements, scraper and belt conveyers, plough mining machines, steeply inclined seam mining machines, individually designed hydraulic reinforcements, hydraulic props and rollers and other power and control hydraulics components. The machines and equipment are designed for work in the most difficult operating conditions and are fitted with modern safety elements protecting both the operators and the machines. OSTROJ a.s. is a dynamically growing company whose mining machines are currently in operation on four continents.

Its greatest achievements in 2012 were the delivery of two complete longwall mining

systems (comprising mechanised hydraulic reinforcement, scraper conveyers, a steeply inclined seam mining machine, electrical equipment for mines and hydraulic systems) to the Kemerovo region in Russia and to Mexico. More than 200 mechanised reinforcement sections and several scraper conveyers were supplied to Russia´s Vorkutinsk region. In 2013 the company supplied and put into operation steeply inclined seam mining systems in Turkey. The company participated in a number of trade fairs and exhibitions, for example the Mining Turkey 2014 Fair in Istanbul, Mining Week 2015 in Karaganda, Kazakhstan and the International Fair of Mining, Power Industry and Metallurgy “Katowice 2015”, Poland. Currently the company supplies machines and equipment to Russia, Ukraine, Poland, Mexico, Turkey, Spain, Columbia and Slovakia, in addition to clients in the Czech Republic.

Professionally engineered products provide you with the most cost-effective and durable conveying solutions

Conveyor Components Bulk raw material handling and processing Unit materials handling Customer base expanding throughout the world in a variety of industries Over 75 years of experience in design, manufacture and supply Quality efforts at TRANSROLL are focused on the customer State-of-the-art Lean manufacturing concepts help reduce your costs

| 22

TRANSROLL-CZ, a.s.

Komenského 614 691 44 Lednice Czech Republic Tel.: +420 519 364 581-6 Fax: +420 519 364 562 e-mail: obchod@transroll.cz www.transroll.cz

Contact: 4 U Color, s.r.o.

Dělnická 469/98 | 405 02 Děčín | Czech Republic tel.: +420 412 523 585 | +420 602 145 343 e-mail: color4u@volny.cz

4U Color, s.r.o. was founded in 1996 and since its inception it has been engaged in metal working and colour powder coating.

Its regular customers are firms in Germany, Belgium and the Netherlands, in addition to domestic clients.

We meet all their requirements and work according to their drawing documentation

We offer: Q laser cutting Q hand and robotic welding Q bending Q production of welded constructions Q production of cold formed fan rings Q production of stainless and brass components

for lighting fixtures including assembly

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PR

Exports to the Russian Federation are beginning to regain their significance.

Compared to last year, Czech exports to Russia grew by more than 20 % in the first five months, according to the data of the Czech Statistical Office.

At the moment, Russia is trying to find new tools to attract foreign investment. According to some experts, Russia is trying to utilise the so-called "Asian Growth Model" that China is currently using, i.e. through extensive state support and foreign capital. "The Russian government is updating the list of strategic companies that it will support if necessary.

It is, therefore, necessary to monitor and follow the current sanctioning measures," says Petr Križan, Director of the International Relations and Communications Department and Head of the CEB's representation in the Russian Federation.

Besides traditional fuel-energy and wood-processing industries, the most promising and rapidly evolving areas include the financial sector, construction, tourism, the mass production of consumer and food goods, the packaging industry, and the service sector. Most of Russia's territory lies in areas that are not very habitable, and the activities of companies | 24

are therefore concentrated in populated urban and suburban areas.

We can generally consider the size, economic growth rate, macroeconomic stability and cheap labour force to be the positive side of the Russian market. On the other hand, the weaknesses impeding ambitions to invest in Russia may be the new geopolitical ambitions of the RF, the administrative and bureaucratic obstacles, the corruption rates and the underdevelopment of all kinds of infrastructures.

In support of Czech exports to Russia, a representative office of the Czech Export Bank was established in Moscow, which is developing its business on the basis of an accreditation of the The Central Bank of the Russian Federation (CBRF).

"Russia is a very specific country, and you need a stable background right in the RF business to realise business cases. However, building your branch in Russia can be challenging for a company both administratively and financially speaking. In this way, the CEB is trying to help the exports of Czech companies to Russia, and it has therefore had its representative office here since 2008," says Petr Križan. "However, this office does not serve a business

purpose. Here, the CEB performs only representative, informational, and promotional activities, promotes the Czech Republic and its economy, and cooperates with the Embassy in the RF, the Ministry of Agriculture at the level of agricultural diplomats and with the CzechTrade agency," he adds.

The Czech companies exporting to Russia include, for example, the Lithuanian company Papcel, the only domestic producer of technologies for the paper industry. In the course of this year, Papcel will deliver a paper production line to the Majak-Technocell plant in Penza. The exports of the Czech production technology are funded by the Czech Export Bank (CEB), which provided Papcel with a loan of 800 million crowns for this business case. However, this is not the first time they have cooperated. CEB and Papcel concluded their first contract already in 2006, when their first joint contract in Russia took place, which was the delivery of a cellulose processing line to the same plant.

However, the Export Bank supports exports of Czech products to Russia even in smaller volumes. For example, the company MZ Liberec borrowed 10 million crowns from the CEB last year.

Photo: Pixabay

CZECH EXPORTS TO THE RUSSIAN FEDERATION

Czech bank for Czech Export Czech Export Bank G

Fully state-owned

G

One of the pillars of the Czech pro-export policy

G

Provides export financing to the riskier territories

G

Bank clients are Czech exporters regardless of their turnover

Rating Standard and Poor’s AAMoody’s Investors Services A1

Products G

Pre-export Credits

G

Supplier’s Credits

G

Guarantees

G

Purchase of Export Receivables

G

Financing investments abroad

G

Buyer’s Credits

Česká exportní banka, a.s.

Vodičkova 34, 111 21 Praha 1 Czech Republic tel.: +420 222 843 111 e-mail: ceb@ceb.cz fax: +420 224 226 162 www.ceb.cz

ANNIVERSARY

VUES Brno Celebrates Its 70th Anniversary The company´s name VUES is based on tradition dating back to 1947, when the Research Institute of Electric Machines was founded in Brno and the initial letters of the Czech name of the institute were taken to form its name. For decades the institute played the role of a development centre for manufacturing plants in the Czech Republic making electric motors.

A sudden change occurred in the early 1990s, when, as a consequence of the collapse of the traditional markets VUES was forced to find new outlets, for its developmental solutions. This is when VUES made its first contacts with clients in other countries – Germany, Austria, and Switzerland, who accepted the firm´s unique development projects, solutions and prototypes and began ordering rotating machines from them.

To support the key market in Germany, an affiliation – VSM (VUES Servomotoren) – was established in Germany. This marketing tactic brought VUES many new contacts in German-speaking countries and demand for VUES products increased, which enabled the firm to further develop its activities.

In view of the increasing market requirements and the broadening demand for electric machines from other branches of industry in 2008 VUES decided to massively increase its production capacity and build new facilities in Jarní Street in Brno. This enlargement made it possible not only to increase the firm´s production, but also to create prerequisites for its future development.

Currently VUES employs 550 people in three manufacturing localities and offers the development and production of electric rotating machines of unique design for different sectors of industry. The firm prides itself on the fact that it does not offer just standard electric rotating machines, but always makes an exceptional design for specific applications, which it offers to all its clients worldwide. To meet even the most exceptional requirements of its customers, it employs 70 technical experts with a unique knowledge of asynchronous and synchronous electric machines.

“Our ambition is to be the first natural choice of clients for the development and manufacture of electric rotating machines. Our only priority for our clients is the quality of our products and our services,” says Pavel Rozprým, company Sales Manager.

 THE FIRM´S THREE MAIN

PRODUCT LINES The Small Machines Division comprises servomotors with axis height of up to 112 mm, servoactuators (compact servo-motors with an in-built ball screw) and synchronous linear motors. Its small machines come in various mechanical models and customer modifications with either conventional or integrated water cooling systems. They are used especially in the automation and robotics segments, where the motors serve as drives for different types of machine tools, manipulation machines and robots.

The Big Machines Division is historically the oldest division. It comprises high- and | 26

low-speed dynamometers, asynchronous motors and generators, synchronous motors and generators with permanent magnets, main and auxiliary exciters and other special machines for specific applications.

The main area where these machines are used is power engineering, the automotive industry, transport equipment and general industry. The Big Machines Division of VUES Brno has been developing these products from its inception and they account for 60-70 per cent of its revenues.

The firm´s smallest division is the Drives and Electronics Division. Its main programme is the supply of measuring units for measuring the characteristics of electric machines, gearboxes, etc. for universities and research institutes and for certain manufacturing enterprises. It also supplies special aviation equipment in both the civilian and military sectors.

 ACHIEVEMENTS OF VUES BRNO VUES supplies electric machines of unique design, such as generators for tidal power plants on the Scottish coast, as well as for small hydroelectric power stations with an output of up to 1 MW. An important part of its supplies is deliveries of high- and low-speed dynamometers used for internal combustion engines; VUES dynamometers are an integral part of testing laboratories in a number of car factories in Europe, Asia, and many other countries. It also supplies different modifications of asynchronous motors for cooling towers in power engineering, develops and manufactures main and pilot exciters for leading suppliers in the area of hydro generators and turbo generators.

Much appreciated are also the VUES Brno testing units, used by universities for tuition and development activities.

 THE COMPANY´S VISION In the area of small machines, VUES wants to focus on the development of servomotors and linear motors, and in the area of big machines on the development of high- and low-speed dynamometers, asynchronous and synchronous machines, especially for industries with a high growth potential, mainly in the automotive industry, power engineering, and of course in the automation, robotisation and digitalisation of industry.

EDUC ATION

Collaboration with Industry Is a Matter of Course for the Faculty of Engineering

| 28

Flexible pneumatic mounting for knitting machines

 VIBROINSULATION AND

 AUTOMOTIVE INDUSTRY

OPTIMISATION OF DYNAMIC ACTIONS

The Department of Machine Parts and Mechanisms together with the firms Proseat Mladá Boleslav s.r.o. and Škoda auto a.s. are working on the development of car seats. “We carry out the research and development of car seat components affecting the comfort of sitting on car seats. Our technical equipment (platform with six degrees of freedom) makes it possible to carry out the required experiments and long-term tests, said professor Ladislav Ševčík, Head of the Department. He further mentioned the development of car towing equipment originally intended exclusively for attaching trailers. Now the equipment can be also used for other purposes, for example as bicycle holders, so that the different parts of the towing equipment must respond to completely different strains. To comply with this requirement, the Department, in collaboration with PROF SVAR, Mnichovo Hradiště, carries out dynamic stress-strain tests in the university laboratories. “For the automotive industry we test development types of silencers according to standard specification. This involves dynamic tests in different positions of the silencers. The purpose is to establish whether the inside arrangement of the silencer will have the required silencing properties in different positions,” professor Ševčík adds.

The Department of Machine Parts and Mechanisms collaborates with industrial enterprises in the area of machinery dynamics with special regard to vibroinsulation and optimisation of dynamic actions.

The most important projects include the wide use of pneumatic vibroinsulation mounting systems for textile machines at UTA a.s. Dvůr Králové nad Labem. The aim of this technical system is to minimise the transfer of vibrations to the production environment and the protection of building constructions against the undesirable effects of dynamic forces. Besides textile machines, joint projects have been realised with Škoda Auto a.s. in Mladá Boleslav focused on the elimination of vibroinsulation problems in the dynamic testing of vehicles and driving systems. Another project being prepared along with these projects is the design of pneumatic systems protecting building constructions against local and power overloading. An important part of the scientific and research activities of the Department based on collaboration with industrial enterprises is the creation of systems to optimise the vibration transport of parts and loose materials tackled in collaboration with the companies ABB Elektro-Praga s.r.o. Jablonec nad Nisou and Vibros s.r.o. Příbram.

Photo: FS TUL archives

Collaboration with industry is a matter of course for the Faculty of Mechanical Engineering of the Technical University in Liberec (FS TUL). Its Industrial Council was set up a few years ago as an advisory body is doing a very good job. Its 19 members are representatives of important Czech engineering enterprises. “We regularly discuss problems concerning education and research and development not only in our region. We work together to improve the structure and quality of our studies, to introduce innovation in tuition and to include new knowledge gained in industry in our tuition programmes,” says professor Petr Lenfeld, dean of FS TUL, adding that owing to the highly sophisticated level of today´s engineering ever more enterprises are showing interest in cooperation with academic, scientific, and research workplaces. This is confirmed by examples mentioned below.

CZECH BUSINESS AND TRADE

The Department of Vehicles and Engines collaborates with leading vehicle manufacturers on a long-term basis on the development of new driving units. One of its most important partners is Škoda Auto a.s. With TES Vsetín s.r.o., it is working on a project to design and build testing equipment for internal combustion engine manufacturers in order to to test them before sending them for certification tests. “We also collaborate with DAKO CZ a.s. in the development of new types of brakes for rail vehicles. In the field of technical diagnostics we participate in the verification of the properties of the interior parts of vehicles made from new materials for important European manufacturers,” Robert Voženílek, Head of the Department, says.

 WELDING, METALLURGY,

METAL FORMING Projects on which the Engineering Technology Department is currently working include the research of welding and thermal processing of creep resistant steels and high temperature testing of materials and the measuring of input quantities for the numerical simulation of those processes and for the numerical simulation of the fatigue life of welding joints. “Together with the firms Mecas ESI and Siemens Turbomachinery we are working on projects of the Ministry of Industry and Trade named Trio focused on low-temperature repairs of creep resistant turbine components and numerical simulations for the prediction of the service life of welded constructions in the area of high- and low-cycle and thermal fatigue. As regards foundry processing, we concern ourselves with casting defects, their potential causes and elimination. We focus especially on metallurgy, conventional and advanced casting technologies and their numerical simulations, including prototype processes,” professor. Jaromír Moravec specifies. The Department, together with the TOP-ALULIT aluminium foundry, studies the TAČR Epsilon programme of squeeze casting. “The results of the project meet the requirements of enterprises for quality and efficiency in the manufacture of stainless construction segments across the industry,” professor Moravec adds recalling the fact that the Department is very active also in the field of metal forming, where it concerns itself with the development

4V desk Vibroinsulation mounting of hydro pulse base.

Emergency supports for base desks of testing equipment

of lubricants and new types of protective coatings for deep-drawn and strength sheets. It collaborates with leading lubricant manufacturers, such as Fuchs, Castrol, Dietz, Quaker, Zeller Gmelin, and Pfinder. In the development of new sheet coatings it cooperates with Thyssen Krupp, Salzgitter, Tata Steel, Voest etc. For these firms we undertake comprehensive research of the tribological behaviour of the tested lubricants and sheets with protective coatings under different technological conditions.

One of the principal subjects of TUL´s collaboration with the industrial sphere in the field of metal forming is the research of the properties of materials and the definition of the limit deformity conditions of materials intended for forming. On the basis of experimental results the scientists define and commercially supply advanced material models for numerical simulations of forming processes. Under the “New technologies and special machinery components”

project the Department has devised an “Intelligent control system for sheet pressing machines”, which makes it possible to adaptively control the drawing instrument during the manufacturing process. The new type of control is already being used by VS Steel s r.o. in pressing exhaust pipes from anti-corrosion materials. In the field of plastics processing, the Department is developing jointly with the application sphere light polymer composites for car body building, focusing on the application of nano particles in polymer matrices. In conjunction with GDK s.r.o. it has developed a universally unique blowing machine with an integrated internal liquid CO2 cooling system.

“It would be hard to find in modern engineering an area in which the Mechanical Engineering Faculty in Liberec is not engaged.

We collaborate with a number of leading firms throughout the Czech Republic, as well as in other countries, and the number of our partners is increasing. In recent years,

IMPORTANT EVENTS ORGANISED BY TUL IN 2017

In 2017, the Faculty of Mechanical Engineering, TUL, organised/will organise the following important conferences: May 30-31 VIBROENGINEERING Conference September 11-12 48th International Scientific Conference KOKA 2017 November 9-10 The 10th International Conference Manufacturing Today and Tomorrow November 21-24 Experimental Fluid Mechanics

29 |

EDUC ATION

Sample for experimental measuring of temperature cycles during thermal processing.

for example, we have gained much experience in the field of 3D measuring and digitalisation,” says Petr Lenfeld, Dean of FS TUL. Successful collaboration with industry and important achievements in science and research augment the prestige of the Mechanical Engineering Faculty in Liberec even at the international level. The Faculty collab-

orates on a long-term basis with universities in Canada, Thailand, the USA, and Vietnam. In 2017 it started cooperation with universities in Azerbaijan and Israel and it intensifies its collaboration with universities in Europe, in Germany (TU Dresden, FH Zittau/Görlitz, BTU Cottbus-Senftenberg, TU Munich) and in France, Poland, and Portugal. This year it has

gained three Erasmus+ credit mobility projects, which prolong its collaboration with Canada, Thailand, and Vietnam.

Jaroslava Kočárková Technical University Liberec E-mail: jaroslava.kocarkova@tul.cz www.tul.cz

E-therm TZ s.r.o.

How successful are you in placing your products on foreign markets?

Considering certain limits of the domestic market, placing our products in foreign | 30

countries is a vital necessity for us. During the eleven-year existence of our company, 70 % of our revenues have been realised abroad, in particular in the EU and Russia.

Which are your greatest recent export achievements?

Three examples can be given. In the plant of one of our Swedish customers we managed to exchange, during a record short stoppage, a continuous furnace for the thermal processing of steel belts used in electrical engineering. In the past three years we delivered 11 furnaces for the heat processing of forgings made of special nickel and titanium alloys to a Russian manufacturer of aviation parts, which he supplies to the world’s most important aircraft manufacturers. And finally - we

have just dispatched four tunnel ovens for drying of glass fibre after processing. The ovens will form part of a newly-built glassfibre manufacturing plant in the USA. What specific plans do you have for the development of your company?

We are planning to set up a new company to operate specifically on the German market. This will mean an important expansion of our activities both territorially and also as regards the range of our furnaces. www.ethermtz.cz

Photo: BVV archives; FS TUL archives; E-therm TZ s.r.o. archives

Can you observe any strong trends influencing your line of business?

In such a multidisciplinary sector as industrial furnaces one cannot speak of just a single trend. In the commercial and technical area one can observe changes in different sectors where our furnaces are used as means of production. The sector is bound to cope with the steadily growing demands on the quality and reliability of products, especially in the power industry, the automotive industry and aviation, and in many other sectors. The influence of the new Industry 4.0 concept is naturally also felt.

CZECH BUSINESS AND TRADE

Future of Machine-Tool and Forming Machine Sector Is Based on High Technological Quality After the so far most successful year 2015, when the machine-tool and forming machine industry achieved absolutely the best results in the history of the Czech Republic, in 2016 its production rapidly declined, by approximately 14 per cent (in exports by approximately 11 per cent). On the domestic market the main reason was lower demand and problems with the drawing of EU subsidies. In exports the decline was due to the strong fall in demand from China, the continuing unfavourable situation in Russia, and stagnant demand in the European markets, especially in Germany, which is the Czech Republic´s main export territory. For a number of years, the CR has been holding 14th to 15th position on the world scale of machine-tool and forming machine manufacturers and 8th position in per capita production and consumption of those commodities.

The machine-tool and forming machine sector is the corner stone of Czech engineering. The development of this industry is the basis for the development of other engineering sectors and consequently the entire industry. Its characteristic features are its high technical standard and technological level of advancement. The main requirements placed on machine tools are precision, productivity, safety, and reliability. In the area of electronics, drives, me-

Export and import of machine tools and forming machines in the CR in 2nd quarter 2010–2nd quarter 2017 in EUR thousand Export

Import

2nd quarter 2010

194 870

85 621

2nd quarter 2011

230 590

172 260

2nd quarter 2012

288 752

168 047

2nd quarter 2013

265 395

143 444

2nd quarter 2014

261 185

211 793

2nd quarter 2015

284 359

287 489

2nd quarter 2016

294 241

180 184

2nd quarter 2017

259 319

222 850

Source: SST

chatronics, and control and technological SW Czech machine tools have reached a climax. Practically all Czech manufacturers use the same components for their

products as the rival firms and are able to integrate their machines in the communication structure of the Industry 4.0 concept. Although new technologies are being gradually introduced, such as additive production, machining and forming will long continue to be essential technological processes in engineering.

 CZECHS PARTICIPATE

ACTIVELY IN IMPORTANT INTERNATIONAL EVENTS The main export territories for the Czech Republic are Germany (approx. 30 %), Russia (approx. 11 %) and China (7.3 %), followed by Slovakia, Italy, and the USA. Exports to Germany are currently showing a slightly declining trend, the same as exports to the Russian Federation, due to continuing sanctions, low oil prices and the general economic situation in Russia.

In comparison with 2013 and 2014 this means an approximately fifty per cent decline. After years of growing exports to China the year 2016 saw a rather massive thirty-per-cent fall. Gratifying are the efforts of Czech exporters to find their way back to the US market. While in Germany and Russia Czech machine tool imports account for approximately 7 % of total imports and the Czech Republic occupies fourth position among all importers, in the 31 |

S+C ALFANAMETAL s.r.o., koncern

www.alfanametal.cz S+C Alfanametal is a member of the family enterprise Schmidt + Clemens Group that stands for almost 140 years for high quality special steel solutions.

Within this Group, S+C Alfanametal is the experienced producer of high alloy steel static castings in superior quality.

We supply the following industries: Chemical and Petrochemical Industry, Energy Technologies, Pumps and Valves Manufacturing, Separation Technology, Industrial Furnaces, Machinery and Plant Construction.

Tršice 126 | 783 57 Tršice | Czech Republic Phone: +420 587 400 725 | 603 801 996 Email: awinkler@alfanametal.cz

CASTING MATERIALS - Corrosion-resistant stainless steel - Heat-resistant steel - Duplex / Super Duplex steel - Ni-Based steel PRODUCTION RANGE - Casting up to 900kg parts - Dimension up to ø 1600mm, with maximum length 2000mm CERTIFICATE - ISO 9001:2015 - Direction 97/23/EG - NORSOK M-650 - Lloyd´s Register LRQA CASTING QUALITY - Tolerance according to EN ISO 8062 - Surface quality according to DIN EN 1559, EN 1371-1 - Volume quality according to ASTM E446 - Certificates according to EN 10204 ADDITIONAL SERVICES - Custom pattern production - Finished or rough machining - Heat Treatment

SV výrobní, s.r.o.

SV výrobní s.r.o., established in 1998, boasts fifty years of experience in the manufacture of springs for companies operating in the area of railway transport, metallurgy, engineering, and mining. The products of SV výrobní are of the highest quality complying with ISO 9001 quality management standards. SV výrobní s.r.o. is a certified supplier to Czech Railways and Hungarian Railways.

 SPRING MANUFACTURING Since its inception, SV výrobní has been using high-quality and technically and technologically variable equipment making it possible to respond operatively to the customers´ individual requirements. That is why it can supply a very wide range of springs: conical springs, belt/evolute springs, screw springs, leaf springs, and spring elements.

 SERVICING We provide our customers with complete services, from calculation, technical de32 |

sign and spring construction to the actual manufacture and testing of the products.

We offer optimisation of the spring parameters while preserving the functional parameters of springing and reducing the weight of the springs, checking the spring parameters according to the required specification on its own testing equipment, plus spring testing.

CONTACT: SV VÝROBNÍ, S.R.O.

Dolní 100, 796 01 Prostějov Czech Republic www.svvyrobni.cz GPS: 49°27'52.966"N, 17°7'50.657"E PHONE:

+420 582 312 735, +420 582 312 854 FAX: +420 582 809803 EMAIL:

vlastimil.vymlatil@svvyrobni.cz jaroslav.slavikst@svvyrobni.cz

Photo: SV výrobní s.r.o. archives

 WE AND OUR SERVICES

CZECH BUSINESS AND TRADE

remaining foreign markets the Czech share is substantially smaller. It is natural that for most Czech manufacturers the essential outlet for their products is the domestic market, where Czech competition advantages can be best used. Czech manufacturers have about a thirty per cent share of the domestic market. In exports we are at the same level as Austria and France. In the framework of CECIMO member states the Czech Republic occupies 7th position.

As regards export commodities, the first position is held by grinding machines, followed by lathes, machining centres and milling machines. The main sector purchasing engineering technologies is the automotive industry and its subcontractors, tool and mould manufacturers and the defence, aviation, and power industries.

Czech firms take part in practically all the important world exhibitions and trade fairs. In 2016, for example, they attended the CIMT exhibition in Beijing, the Metallo obrabotka exhibition in Moscow and the IMTS fair in Chicago. A very important event for all domestic manufacturers is the International Engineering Fair in Brno and the accompanying International Machine Tool Exhibition held every even year. In 2017 the most important event will be EMO Hannover, the largest and probably the most important world exhibition in the engineering sector. More than 30 Czech companies will participate in it, including the Association of Engineering Technology (SST).

EXPORT OF MACHINE TOOLS AND FORMING MACHINES

BY TERRITORY IN 2ND QUARTER 2017

Germany China Poland Slovakia USA Russia Italy India Others

Source: SST

most manufacturers, such as the companies TOS VARNSDORF, KOVOSVIT MAS, TAJMAC – ZPS, TOSHULIN, TOS Kuřim, FERMAT and other firms. The basis are their own construction and development facilities, supported by collaboration with universities, e.g. RCMT attached to Prague Technical University, and independent research workplaces, uch as

development of new technologies. For example KOVOSVIT MAS this year presented its first hybrid machine making it possible to combine conventional machining with additive technologies.

One of the main factors limiting development within the sector is the inadequate supply of well-trained students leaving

IMPORT OF MACHINE TOOLS AND FORMING MACHINES

BY TERRITORY IN 2ND QUARTER 2017

 STRONG TRENDS AND GREAT

Germany

EXPECTATIONS

Japan

The main trend is the continuing promotion of robotisation, automation, digitalisation and connectivity, known as Industry 4.0. The importance of new technologies is increasing. In the first place this concerns additive production technology, which signifies new quality in the manufacture of special parts and complicated structures.

A new impetus to the development of the machine-tool and forming machine sector is expected to be given by the development of electromobility.

Italy

 INNOVATION WITHIN

THE SECTOR One of the factors responsible for the high standard of Czech machine tools and forming machines is the innovative activity of

South Korea Austria Taiwan Switzerland USA Others

Source: SST

VÚTS Liberec and manufacturers and suppliers of electronic and mechatronic components, tools and robots.

Besides the continuously improving design of machine tools it is gratifying that manufacturers are also keeping pace with the

technical schools and training centres. Although the situation has partly improved, enterprises are obliged to find their own ways to attract skilled workers. The secondary-level school started by TOS VARNSDORF joint stock company last year is, for the time 33 |

ASSOCIATION

Member Organisations of SST ALTA, a.s. Štefánikova 41, 602 00 Brno Tel.: 541 550 111, Fax: 541 550 555 E-mail: gabriela.formankova@alta.cz, www.alta.cz ARGO-HYTOS, s.r.o.

Dělnická 1306, 543 15 Vrchlabí Tel.: 499 403 111, Fax: 499 403 420 E-mail: info.cz@argo-hytos.com, www.argo-hytos.com AXA CNC stroje, s.r.o.

Na Cintlovce 1580/5, 268 01 Hořovice Tel.: 311 516 420, Fax: 311 516 410 E-mail: vyroba@axacnc.cz, www.axacnc.cz BOS HK a.s.

Přítkovská 152, 417 12 Teplice-Proboštov Tel.: 417 560 721–4, Fax: 417 560 385 E-mail: info@bos-teplice.cz, www.bos-teplice.cz ČKD BLANSKO-OS, a.s.

Blanenská 1321/47, 664 34 Kuřim Tel.: 541 101 111, Fax: 541 103 266 E-mail: machinetools@ckd-blansko.cz, www.ckd-blansko.cz

Dormer Pramet – Pramet Tools, s.r.o.

Uničovská 2, 787 53 Šumperk Tel.: 583 381 111, Fax: 583 215 401 E-mail: info.cz@dormerpramet.com, www.dormerpramet.com EMP s.r.o.

Nádražní 394, 684 01 Slavkov u Brna Tel.: 544 423 011, Fax: 544 221 828 E-mail: odbyt@emp-slavkov.cz

www.emp-slavkov.cz

 OUTLOOK FOR 2017 In 2017, better results in the sector are expected in comparison with 2016. The prediction is that the results will be at approximately the 2014 level. Considering the still high growth dynamics in the automotive industry and the generally favourable economic situation in the Czech Republic domestic demand for machine tools is expected to increase. As regards exports, we expect higher sales to China and Germany and other European countries. On the other hand there are several unfavourable factors, such as Brexit and the complicated international security situation, which negatively influence investment activities in industry.

Oldřich Paclík Director, Association of Engineering Technology www.sst.cz | 34

Fermat Group, a. s. Žitavského 496, 156 00 Praha 5-Zbraslav Tel.: 277 009 601 E-mail: info@fermatmachinery.com, www.fermatmachinery.com Gearspect Group a.s.

Vyšehradská 1349/2, 128 00 Praha 2 Tel.: 283 890 111, Fax: 283 893 129 E-mail: info@gearspect.com, www.gearspect.com HESTEGO a.s.

Na Nouzce 470/7, 682 01 Vyškov Tel.: 517 321 011, Fax: 517 321 090 E-mail: hestego@hestego.cz, www.hestego.cz KOVOSVIT MAS, a.s. náměstí Tomáše Bati 419, 391 02 Sezimovo Ústí Tel.: 381 631 111, Fax: 381 276 372 E-mail: mas@kovosvit.cz, www.kovosvit.cz KSK Precise Motion, a.s.

Blanenská 1277, 664 34 Kuřim Tel.: 533 033 710, Fax: 533 033 734 E-mail: info@ksk-pm.cz, www.ksk-pm.cz

LAPP KABEL s.r.o.

Bartošova č.p. 315, 765 02 Otrokovice Tel.: 573 501 000, Fax: 573 394 650 E-mail: info@lappgroup.cz, www.lappgroup.cz METALPRES s.r.o.

Stará osada 94, 664 84 Zastávka u Brna Tel.: 546 491 111, Fax: 546 491 164 E-mail: metalpres@metalpres.cz, www.metalpres.cz MIKRONEX s.r.o.

Na úlehli 1286/16, 141 00 Praha 4 Tel.: 224 352 736, Fax: 224 352 731 E-mail: mikronex@mikronex.cz, www.mikronex.cz MOTOR JIKOV Strojírenská a.s.

Zátkova 495, 392 01 Soběslav Tel.: 381 504 101, Fax: 381 504 102 E-mail: mjs@mjs.cz, www.mjs.cz NAREX Ždánice, spol. s r. o.

Městečko 250, 696 32 Ždánice Tel.: 518 607 111, Fax: 518 607 153 E-mail: sales@narexzd.cz, www.narexzd.cz PILOUS – pásové pily spol. s r.o. Železná 9/648, 619 00 Brno Tel.: 543 252 010, Fax: 543 252 011 E-mail: pilous@pilous.cz, www.pilous.cz PRATO, spol. s r.o.

Ocelářská 188/900, 190 00 Praha 9 Tel.: 266 316 717, Fax: 266 316 737 www.prato.cz

Photo: NAREX Ždánice, spol. s r. o. archives

being, a rare example for other companies to follow. So far, most firms rely on collaboration with technical schools and training centres. In the machine-tool and forming machine sector, there are only few enterprises big enough to afford to run their own university-level institutions. That is why close collaboration of universities and manufacturers is so much needed.

DIEFFENBACHER-CZ, hydraulické lisy, s. r. o. Řípská 15, 627 00 Brno Tel.: 548 217 086, Fax: 548 217 087 E-mail: dcz@dieffenbacher.cz, www.dieffenbacher.cz

CZECH BUSINESS AND TRADE

Společnost pro obráběcí stroje Horská 3, 128 00 Praha 2 Tel.: 221 990 940, Fax: 224 916 481 E-mail: sekretariat@czspos.cz, STROJIMPORT a.s.

U Nákladového nádraží 3146/6, 130 00 Praha 3 Tel.: 222 863 216, Fax: 222 863 299 E-mail: marketing@strojimport.cz, www.strojimport.cz STROJÍRNA TYC s.r.o.

Dlouhá třída 17, 338 05 Mýto Tel.: 371 750 591, Fax: 371 750 129 E-mail: prodej@tyc.cz, www.strojirna-tyc.cz ŠKODA MACHINE TOOL a.s.

Tylova 1/57, 301 00 Plzeň Tel.: 378 138 754, Fax: 378 134 427 E-mail: info@cz-smt.cz, www.cz-smt.cz Šmeral Brno a.s.

Křenová 65c, 658 25 Brno Tel.. 532 167 111, Fax: 543 255 143 E-mail: obch@smeral.cz., www.smeral.cz.

TAJMAC-ZPS, a.s. třída 3. května 1180, 763 02 Zlín, Malenovice Tel.: 577 532 072, Fax: 577 533 626 E-mail: info@tajmac-zps.cz, www.tajmac-zps.cz TECNIMETAL-CZ, a.s.

Nábřeží 578, 760 01 Zlín Tel.: 577 009 411, Fax: 577 009 410 E-mail: info@tecnimetal.cz, www.tecnimetal.cz Rakovnické tvářecí stroje s.r.o.

Kuštova 637, 269 40 Rakovník Tel.: 313 526 279, Fax: 313 517 269 E-mail: obchod@tosrakovnik.cz, www.tosrakovnik.cz

Renishaw s.r.o.

Olomoucká 85, 627 00 Brno Tel.: 548 216 553, Fax: 548 216 573 E-mail: czech@renishaw.com, www.renishaw.cz RETOS VARNSDORF s.r.o. Žitavská 913, 407 47 Varnsdorf Tel.: 412 371 351–2 E-mail: info@retos.cz, www.retos.cz RÖHM Slovakia s.r.o.

Partizánska 73, Bánovce nad Bebravou 957 01, Slovenská republika Tel.:+421 38 242 00 31, +421 914 122 932 E-mail: peter.trnka@sk.roehm.biz www.roehm.biz SCHNEEBERGER Mineralgusstechnik, s.r.o.

Průmyslový park 32/20, 350 02 Cheb-Dolní Dvory Tel.: 354 400 941, Fax: 354 400 940 E-mail: margita.polomova@schneeberger.com, www.schneeberger.com Slovácké strojírny, akciová společnost Nivnická 1763, 688 28 Uherský Brod Tel.: 283 006 217, Fax: 283 006 226 E-mail: sale-tos@sub-tos.cz, www.sub.cz

TDZ Turn s.r.o.

Táborská 4297/197, 615 00 Brno–Židenice Tel.:548 133 686 E-mail: info@tdz-turn.com, www.tdz-turn.com TOSHULIN, a.s.

Wolkerova 845, 768 24 Hulín Tel.: 573 327 111, Fax: 573 350 888 E-mail: sales@toshulin.cz, www.toshulin.cz TOS HOSTIVAŘ, spol. s r.o.

Radiová 1431/2a, 100 00 Praha 10-Hostivař Tel.: 272 706 555, Fax: 272 706 561 E-mail: info@toshostivar.cz, www.toshostivar.cz

TOS KUŘIM – OS, a.s.

Blanenská 1321/47, 664 34 Kuřim Tel.: 541 101 111, Fax: 541 102 355 E-mail: marketing@tos-kurim.cz, www.tos-kurim.cz TOS Olomouc s.r.o.

Tovární 1180/30, 779 00 Olomouc-Hodolany Tel.: 587 404 217, Fax: 587 404 253 E-mail: prodej@tos-olomouc.cz, www.tos-olomouc.cz TOS Svitavy, a.s. Říční 1, 568 17 Svitavy Tel.: 461 563 111, Fax: 461 533 224 E-mail: tos@tos.cz, www.tossvitavy.com

TOS VARNSDORF a.s. Říční 1774, 407 47 Varnsdorf Tel.: 412 351 111, Fax: 412 351 269 E-mail: info@tosvarnsdorf.cz, www.tosvarnsdorf.cz TRENS SK, a.s.

Súvoz 1, 911 32 Trenčín, Slovenská republika Tel.: +421 327 412 111, Fax: +421 327 435 264 E-mail: trens@trens.sk, www.trens.sk TST servis, a.s. Šífařská 1/3, 147 00 Praha 4-Hodkovičky Tel.: 241 771 297, Fax: 241 771 218 E-mail: info@tstservis.cz, www.tstservis.cz UniCut s.r.o.

338 01 Holoubkov 113 Tel.: 376 901 998, Fax: 371 751 570 E-mail: nastrojarna@tgs.cz, www.unicut.cz Vanad 2000 a.s.

Riegrova 824, 582 82 Golčův Jeníkov Tel.: 569 400 411, Fax: 569 400 444 E-mail: vanad@vanad.com, www.vanad.cz WALTER CZ, s.r.o.

Blanenská 1769, 664 34 Kuřim Tel.: 541 423 352, Fax: 541 231 954 E-mail: service.cz@walter-tools.com, www.walter-tools.com Walter s.r.o.

Blanenská 1289, 664 34 Kuřim Tel.: 541 426 611, Fax: 541 231 952 E-mail: info.wcz@walter-machines.com, www.walter-machines.com WEILER Holoubkov s.r.o.

Holoubkov čp. 1, 338 01 Holoubkov Tel.: 371 406 111, Fax: 371 406 113 E-mail: weiler@weilercz.com, www.weilercz.com Yamazaki Mazak Central Europe s.r.o., Zděbradská 96, Jažlovice, 251 01 Říčany, Tel.: 226 211 131, Fax: 226 211 138 Email: skovanda@mazak-ce.cz, www.mazakeu.cz Zkušebna VUOS, s.r.o.

Horská 2040/3, 128 00 Praha 2 Tel.: 222 520 046, Fax: 222 520 046 E-mail: office@zkusebnavuos.cz, www.zkusebnavuos.cz ŽĎAS, a.s.

Strojírenská 675/6, 591 01 Žďár nad Sázavou Tel.: 566 641 111, Fax: 566 642 850 E-mail: zdas@zdas.cz, www.zdas.cz

The Association of Engineering Technology (SST) is a member of the European Association of the Machine Tool Industries (CECIMO). The Association represents some 36 % of the world machine tool and forming machine production.

35 |

ASSOCIATION

Agricultural Machinery – Traditional Export Commodity

vester market is about 200 machines; the sale of these machines, however, is showing a slight decline year-on-year, with last year´s sales some 30 % below expectation.

 FOREIGN TRADE

There are about one hundred manufacturers of agricultural and forestry machinery in the Czech Republic. The A.ZeT Agricultural and Forestry Machinery Association has 43 firms, which comprise all the major domestic manufacturers. The overall production of the member firms is worth some CZK 20 billion (approximately EUR 700 million), which accounts for 80 % of total output in the Czech Republic. Of total Czech exports of this commodity amounting to CZK 16.7 billion (approx. EUR 620 million), the export volume of A.ZeT members accounts for more than 85 %. Czech agricultural machinery manufacturers employ an estimated 10 000 people, about one-third of the number the sector employed 20 years ago.

Long-term statistics show stable sales of universal tractors, some 2 300 of which have been sold since the beginning of this decade. The capacity of the combine har| 36

Czech firms are becoming increasingly involved in foreign trade. Practically until 2008 agricultural machinery export grew at practically the same rate as did its import.

In 2009 and 2010 both domestic and foreign sales of these machines dropped by approximately 30 % year-on-year. In 2011 foreign trade was revived and this trend continued also in the following years. In 2016, the turnover of agricultural machinery export and import amounted to more than CZK 33 billion, with export and import being balanced (some CZK 16 billion on either side). In other words: in CZK denomination, the same volume of what is imported is also exported.

The Czech Republic´s largest trade partners are the neighbouring countries – Germany, Austria and Slovakia, and France and Poland. Here, much depends on the kind of goods. For example Zetor tractors are traditionally successful in Poland, Scandinavia and the Balkan states. Manufacturers are renewing contacts with their former partners in the countries of the former Soviet Union – Russia, Ukraine, Baltic states, and the new EU member states Romania and Bulgaria.

The most important Czech export items are fodder and straw crop harvesting machines, which include combine harvesters, cutters and mowing machines, rakes, hay tedders, etc., which account for around 40 % of total agricultural machinery export, tractors, accounting for 22 %, and soil preparation machines, also for 22 % of total agricultural machinery export.

Important exporters are FARMET in Česká Skalice near Náchod and BEDNAR FMT Praha, followed by OPaLL AGRI Dolní Životice and SMS CZ Rokycany, all exporting mainly soil preparation machines, AGRIO MZS Křemže known for its sprayers, and ZDT Nové Veselí exporting trailers and semi-trailers. Other export articles include combine harvesters, front loaders, manure spreaders, and a full range of small agricultural machines and tools. Much in demand are also special machines, such as stump cutters and oleaginous seed refineries. As regards stable machinery, their main exporters are FARMTEC Jistebnice, BAUER TECHNICS Tábor, and AGE České Meziříčí.

Very gratifying is the fact that Czech-made Zetor tractors have found their way back to the decisive European markets. The firm Zetor exports nearly 90 % of their output and sells the rest at home and in Slovakia.

One of the attractions at the previous trade fairs in Hannover and Brno was the presentation of a special Zetor tractor model

Photo: Zetor archives

Agricultural machinery is a traditional Czech export commodity. Over the past thirty years, the character of the machinery has radically changed.

The machines have been modernised and compare favourably with the technologically most demanding sectors, using modern materials and space technologies. Sophisticated production is a common feature in Czech factories and firms readily meet demand, offer new models, and boast a high quality of processing, all this at competitive prices, on both the domestic and foreign markets.

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ASSOCIATION

designed by Pininfarina, created in collaboration with this famous design company.

The appearance of the new model caught the interest of visitors and its makers decided to apply the new design to all Zetor types in the near future.

The quality of Czech products is comparable with European standards. This is attested by the fact that a large number of machines developed and made in Czech factories can be seen in the fields of many European countries flying the flags of the Czech manufacturers´ partners in those countries for commercial reasons. Not every Czech firm is prepared to accept this practice, but such sales have become a general trend, and if such collaboration gives work to Czech hands and helps get the manufacturers to foreign markets, there can be no objection to it.

The main Czech machinery import items are those which are not manufactured in this country, such as higher performance tractors (over 120 kW), combine harvesters and presses. Regrettably, one such machine is also the harvester cutter machine which we used to make and even export, but its manufacture has been ended. The same applies to sugar beet harvesters, where, too, we are fully dependent on import.

First position among tractors sold on the Czech market over the past five years is held by the domestic Zetor tractor (16.6 %),.

Among imported tractors the leading positions are occupied by John Deere (18.7 %), New Holland (16.6 %), and Case IH (10.3 %).

As regards combine harvester imports, the dominant makes are Claas with a share of 33 %, New Holland (31 %), and the remain-

ing more than one-third supplied by John Deere (17 %) and Massey Ferguson (10 %).

 TRADE FAIRS AND

EXHIBITIONS IN THE CR Czech manufacturers and large importers closely collaborate with the organisers of two most important domestic exhibitions of agricultural machinery, BVV Trade Fairs Brno and Výstaviště České Budějovice a.s.

Another fair meeting the strictest comparative criteria is the international trade fair trio TECHAGRO / SILVA REGINA /BIOMASS in Brno, which has gained a high international renown and ranks closely after two most important international events, SIMA fair in Paris and AGRITECHNICA Hannover.

Its initiator in 1994 was A.ZeT Association, which is one of the co-organisers of the fair and participates in shaping the concept of the fair and its accompanying programmes.

Czech firms traditionally occupy an important part of the exhibition ground. In the past few years TECHAGRO has been the most successful project of all the fairs held in the Czech Republic. The latest fair once again overcame all records: nearly 800 exhibitors from 40 countries displayed their products at the fair on an area of 78 000 sq m and 110 000 visitors came to see them.

Next year the fair will take place in Brno from April 8 to 12.

 PRESENTATION IN OTHER

COUNTRIES The production potential of Czech agricultural engineering exceeds the absorption capacity of the domestic market. That is why exports are so important for the

sector, and this is where A.ZeT is playing a significant role. One of its main projects is the promotion of Czech exports, and participation in the SIMA fair in Paris and AGRITECHNICA in Hannover, which are its most important foreign undertakings. Both these exhibitions are highly important not only in the European context, but also worldwide. They are held regularly in odd years and Czech firms have never failed to attend them since 1995. In 2017, 25 Czech manufacturing firms will attend the AGRITECHNICA fair in Hannover in November and the Czech agri engineering industry will be presented there in the form of official Czech participation guaranteed by the Ministry of Industry and Trade. In the past, the Association organised a joint participation of Czech firms also in Kiev (Ukraine), Herning (Denmark) and Poznan (Poland), and in the AGROSALON in Moscow and at EXPO AGRO in Argentina (twice). Manufacturers of small agricultural machinery display their products regularly at the GaLaBau fair in Nuremberg.

For foreign presentations it is important that at international agricultural fairs Czech firms can rely on the support of the Ministry of Agriculture, and representatives of Czech firms have the opportunity to participate in business missions led by officials of the Ministry of Agriculture. Last year, for example, they had the opportunity to present Czech agricultural industry in Tanzania, Zambia, Nigeria, Senegal and China; this year Czech businessmen participated in a business mission to Ghana and Ethiopia.

The concerted approach of suppliers of agricultural and food processing technolo-

Foreign trade – manufacture of forestry and agricultural machines (in CZK million) year

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

export

CZK million

5 388

6 058

6 194

6 947

4 169

3 695

5 110

5 429

6 288

7 493

8 562

import

CZK million

5 708

8 108

6 183

4 031

3 204

4 558

6 107

6 870

5 472

7 741

8 933

year

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

export

CZK million

9 432

11 091

12 116

8 651

9 686

11 830

14 612

15 001

15 198

16 575

16 706

import

CZK million

10 586

13 280

14 393

9 684

9 711

13 600

15 285

15 197

17 059

18 521

15 880

Data in CZK million; EUR 1 = CZK 27.00 Source: Ministry of Industry and Trade of the Czech Republic

| 38

Contact: ETD TRANSFORMÁTORY, a.s.

Zborovská 54/22 | 301 00 Plzeň | Czech Republic Tel.: +420 373 031 508 Fax: +420 373 031 388 e-mail: etd@etd-bez.cz GPS: 49.7260092N, 13.3863008E

ETD TRANSFORMÁTORY a.s. is an important designer and manufacturer of both standard and special power transformers, chokes and reactors with its own know-how, complex technologies and special testing equipment.

Transformers have been produced in Plzeň for 96 years and they are inseparably connected with the well recognized ŠKODA brand. ETD TRANSFORMÁTORY a.s. is a daughter company of BEZ TRANSFORMÁTORY, a.s., and a part of the International BEZ Group (IBG). This group is the only producer of a broad range of power and distribution transformers, chokes, reactors and related accessories and services according to customer requests in the region of Central Europe.

ETD TRANSFORMÁTORY a.s. uses a certified quality management system according to ISO 9001; environmental protection according to ISO 14001; health and safety at work according to BS OHSAS 18001; certified process of fusion welding of metals according to ISO 3834-2; and has accredited Electrical Testing Laboratory certificates according to ČSN EN ISO/IEC 17025.

We adhere to the following key values: Q Customer oriented approach Q Expertise and workmanship Q Enthusiasm and motivation Q Flexibility and speed Q Efficiency Q Innovation and improvement Q Protection of health and environment

Our products and services: Q Power transformers | three-phase regulating oil transformers with a power range of 10 to 350 MVA and nominal voltage up to 420 kV, | three-phase non-regulating oil transformers with a power output up to 410 MVA and nominal voltage up to 420 kV, | single-phase non-regulating oil transformers with a total power output of the three-phase set up to 1200 MVA and nominal voltage up to 420 kV, | special type regulating and non-regulating transformers as required by the customer (e.g. number of turns, nominal impedance voltage, outlet configuration, cooling, etc.).

Q Autotransformers | three-phase oil transformers with a power output up to 400 MVA and nominal voltage up to 420 kV. Q Furnace transformers Q Traction chokes for rail vehicle loads (railway, underground or tram cars), trolley-buses, and other special use inductors Q Start-up and special reactors Q Assembly, maintenance, the 24-hour service

www.etd-bez.cz

Q Reconstruction and repairs of | own production transformers, | other producers’ transformers.

ASSOCIATION

AGE, s.r.o. České Meziříčí AGRIO MZS s.r.o.

AGROING Brno s. r. o.

www.agromega.cz www.agromont.cz

ARGO-HYTOS s.r.o.

BAUER TECHNICS a.s.

BEDNAR FMT s.r.o.

CanAgrocz s.r.o. Česká zemědělská univerzita v Praze DAKR spol. s r.o.

EURO BAGGING, s.r.o.

FARMET, a.s. Česká Skalice

 STRONG SIDES OF THE

SECTOR, TRENDS AND EXPECTATIONS A relative advantage of Czech agricultural engineering is the structure of Czech firms: in most cases they are small and medium-sized enterprises capable of prompt response to demand and the customers´ specific wishes and requirements.

The modern Czech agricultural machinery complies with the requirements of farmers for higher performance of the machines and better quality of manufacturing operations the outcome of which is what has come to be known as precision agriculture. The new terms used are similar to those applied in other manufacturing industries, such as Agritechnics 4.0, which involves the use of ICT both in separate machines and in blocks of machines and technologies not only connected to an intelligent data net and using precision navigation systems for example in tractors and self-propelled machines, but also capable of monitoring and controlling separate working parts and sets. In all these aspects Czech manufacturers are competitive also in international comparison. | 40

Dušan Benža Secretary General, Agricultural and Forestry Machinery Association A.ZeT www.zetis.cz

www.agrio.cz www.agroing.cz

AGROMONT Vimperk, s.r.o.

AGROSTROJ Pelhřimov, a.s.

The Czech economy is small and open, dependent on exports. Agriculture is a sector strongly dependent on political decisions, both at the national and EU levels. Regular competition, however, is also obstructed by the policy of chain stores on which farmers are excessively dependent due to existing legislation. A controversial issue dividing EU member states is common agricultural policy financing, which obstructs free competition by unbalanced and unjust interventions and subsidies and demotivates hundreds of Czech farmers, even meat, grain crops, milk, fruit and vegetable producers, where Czech agriculture is competitive. Considering the different approaches, the question is to what extent it will be possible to initiate changes that will decrease the volume of financial means for the common agricultural policy, raise rural development support and improve the quality of life in the countryside while reducing production subsidies, be accompanied by lesser regulation in the sector without bringing asymmetrical solutions putting certain member states (including the Czech Republic) at a disadvantage.

www.age.cz

AGROMEGA spol. s r.o.

AgroStar cisterny s.r.o.

gies, and in some cases of genetic material, brings Czech manufacturers synergic effects in establishing trade and cooperation relations in specific regions.

www

www.agrostar.cz www.agrostroj.eu www.argo-hytos.com www.bauer-technics.com www.bednar-machinery.com www.canagro.cz www.czu.cz www.dakr.eu www.eurobagging.com www.farmet.cz

FARMIX, a.s.

www.farmix.cz

FARMTEC a.s.

www.farmtec.cz

HZT Technik - servis, a. s.

Ing. Josef Ťulpík - WTC JK Machinery, s.r.o.

LASKI, s.r.o. Smržice Mendelova univerzita v Brně MGM a.s. Holešov

www.hzt.cz www.wtc-pisecna.eu www.jk-machinery.com www.laski.cz www.mendelu.cz www.mgm.cz

MÖLLER, s.r.o. Staré Město

www.moller.cz

N.O.P.O.Z.M. s.r.o. Slatiňany

www.nopozm.cz

NEREZ - LUDĚK POLČÁK Vizovice

www.nerez.com

OPaLL - AGRI, s.r.o.

PAWLICA s.r.o.

RAVAK, a. s. Příbram

www.opall-agri.cz www.pawlica.cz www.rozmital.com

ROmiLL, spol. s r. o. Brno

www.romill.cz

SIAGRA s.r.o.

www.siagra.cz

SMS CZ, s.r.o. Rokycany

www.smscz.cz

STROJÍRNA NOVOTNÝ s.r.o.

www.loader.cz

STS Olbramovice, spol. s r.o.

STS Prachatice a.s.

STS Uhlířské Janovice, s.r.o. Šálek s.r.o.

T-AGRO CZ s. r. o.

TAURUS, s.r.o., Chrudim

www.stsolbramovice.cz www.stsprachatice.cz www.stsuj.cz www.agroservispv.cz www.t-agro.cz www.taurus-sro.cz

Výzkumný ústav zemědělské techniky, v.v.i.

www.vuzt.cz

ZEMĚDĚLSKÁ A DOPRAVNÍ TECHNIKA, s.r.o.

www.zdt.cz

ZETOR TRACTORS a.s.

www.zetor.com

ZVVZ MACHINERY, a.s.

www.zvvz.cz

Photo: BEDNAR FMT archives

Members of the Association

26th International Trade Fair of Electrotechnics, Electronics, Automation, Communication, Lighting, and Security Technologies

2018 f u t u r e

t e c h n o l o g i e s

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20 01 18

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Everything for clean mobility.

ALUMINIUM | COMPOSITES | ALUMINIUM PROFILES | PLASTICS | HONEYCOMB CORE MATERIALS

BRAXL

BRAM

BRAL

Czech company specializing in the sale of: Multi-axis CNC machining centers BRAY® designed for machining and cutting wide range of materials. Our centers are especially used in the production of models and molds, machining of light materials and non-ferrous alloys.

UBRA® fiber lasers featuring a high-speed 2D laser system for efficient material separation coupled with high efficiency, dynamics, reliability and ease of use with minimal machine maintenance requirements.

UBRA LX

www.tooltrade.cz | sales@ppig.cz | www.bray-cnc.com | www.ubra-laser.eu

BRAS

E-therm TZ s.r.o. is a dynamically-developing Czech company doing business in the area of industrial furnaces and heat treating equipment. The company activities follow the more than sixty-year long tradition of the development and deliveries of industrial furnaces of the biggest furnace producer in the former Czechoslovakia. For the time of its operation at the market, E-therm TZ s.r.o. company has built up a circle of regular satisfied customers and achieved recognition from expert public.

Equipment supplied by E-therm TZ s.r.o. company is notable for its high quality and usable value, low energy consumption, environmental friendliness and long-term reliability and service life.

EXTENSIVE RANGE OF INDUSTRIAL FURNACES CUSTOMISED TECHNICAL SOLUTIONS The company delivers to the market not only the reliable standard furnaces, but it also develops the new, highly efficient and special-purpose technologies. This is why the customers of E-therm TZ s.r.o. include primarily the manufacturers of power generating equipment, special large-sized forgings, large shafts and rotors, crankshafts, transport equipment, and also parts for aircraft industry. Namely the aircraft industry was supplied with many furnaces in recent years; fulfilment of all standards and requirements applied in this exacting branch was proved.

Various special equipment has been developed and installed in accordance with the customers’ needs, such as a line for the heat treatment of long corrosion-proof pipes for submarine cables, line for the production of coated strips (transformer sheets), equipment for heat stabilisation of turbine rotors or furnaces for fire-resistance testing of building industry materials and structural elements.

Q Equipment for heat stabilisation and testing of radial run-out of steam turbine rotors (fig. 1) Q Continuous furnaces for annealing of the steel strip (fig.2) Q Heating furnaces for forging shops and rolling mills Q Annealing furnaces for forging shops, foundries and rolling mills Q Bell annealing furnaces – sheet metal, wires Q Continuous heat treatment furnaces for annealing and pickling lines Q Refining lines and lines for heat treatment in protective atmospheres Q Drying furnaces for various technological processes Q Furnaces for fire resistance testing of structural elements and materials, and flat glass

www.ethermtz.cz

As a supplier of equipment that consumes large amounts of energies, E-therm TZ s.r.o. offers its equipment with the highest efficiency and thus the lowest operating costs. In addition, the gas-heated furnaces are watched for maximal efficiency of the waste heat from the outgoing waste-gases which, apart from the fuel savings, leads also to reduction of greenhouse gases emissions and thus has a significant effect for the sustainable development of the environment.

We consider the high service comfort, programmability and process automation as a matter of course.

E-therm TZ s.r.o. company supplies the equipment on a turnkey basis not only to EU-countries but also to CIS, Asia, and the USA.

E-therm TZ s.r.o.

K Letišti 908, CZ-339 01 Klatovy, Czech Republic tel: +420 378 603 250 fax: +420 378 603 270 ethermtz@ethermtz.cz