Lithuania, Latvia, Estonia 2017/2018

CZECH REPUBLIC Your Trade Partner

2017/2018 Lithuania Latvia Estonia

GLASSWORKS MORAVIA Joint-stock company Glassworks Moravia, residing in Úsobrno is a traditional manufacturer and dealer of packing glass: • • • •

liqueur and wine bottles bottles for food products laboratory glass (reagent bottles, powder bottles, dropping bottles, burette bottles) cosmetic bottles

All products in premium flint, standard flint, amber and black glass color, with capacity ranging from 40 ml to 2 000 ml, with maximum height of 390 mm.

The core of our philosophy is customer-oriented service, stressing the fulfillment of customer‘s wishes and requirements in the first place.

We specialize in producing bottles and glasses that are shaped originally according to customer‘s requirements. We produce these in series from 10 000 pieces.

Our offer includes also a wide range of services: we provide devising new designs, drawing documentation, packaging according to specific requirements and other deliveries necessary for completing the products. In case our customer is not interested in investing into dies, we are able to offer standard models.

Úsobrno č. p. 79, 679 39 Úsobrno Czech Republic phone: + 420 516 427 711 fax: + 420 516 427 700 e-mail: info@sklomoravia.cz

www.sklomoravia.cz

Czech Republic – Your Trade Partner Prepared by PP Agency, s.r.o., in collaboration with the following partners:

Ministry of Foreign Affairs of the Czech Republic

Ministry of Industry and Trade of the Czech Republic

Ministry of Regional Development of the Czech Repulic

Confederation of Industry of the Czech Republic

Czech Chamber of Commerce

International Chamber of Commerce

Confederation of Employers´ and Entrepreneurs´ Associations

CzechTrade

CzechInvest

CzechTourism

Czech Centres

Centre for Regional Development of the Czech Republic

Deadline: June 20, 2017 ® Territorial Publication Czech Republic – Your Trade Partner Published by PP Agency, s.r.o.

Myslíkova 25, 110 00 Praha 1, Czech Republic e-mail: journal@ppagency.cz, www.ppagency.cz

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

3

TEMPLAR WINE CELLARS OF ČEJKOVICE

The Knights Templar Wine Cellars in Čejkovice were founded in the early 13th century by the Knights Templar, who came to the Czech lands from France and built a fort in Čejkovice. In the middle of the 18th century, wines were grown in that region on nearly 700 ha of land, mainly in Čejkovice and surroundings.

The grapes were also processed there. From 1882 to 1918, the cellars were owned by the Habsburg family.

Today, the Wine Cellars operate as a cooperative.

wine barrel, used for the storage of red wine, is 20 250 litres. In terms of size, the Knights Templar Wine Cellars rank alongside large winegrowing enterprises.

The Knights Templar Cellars winegrowing cooperative has a storage capacity of 6.5 million litres.

www.templarske- sklepy.cz

Its latest reconstruction project was the modernisation of the bottling line, which took place five years ago.

Its filling capacity is up to 2 000 bottles. The volume of the largest

Templářské sklepy Čejkovice, vinařské družstvo 696 15 Čejkovice 945 Tel.: +420 518 309 011 info@templarske-sklepy.cz

REISTEN WINERY

Winery was founded in 1999, originally with the aim of producing exclusively high quality wines for genuinewine connoisseurs, top gastronomic establishments and vinoteques.

Reisten specialises mainly in white wines. Among the cultivated varieties, it produces primarily Pinot Blanc, Riesling, Sauvignon Blanc, Chardonnay, Welsch Riesling, Pinot Gris and Traminer. Among the red varieties, it supplies Merlot, Pinot Noir and St. Laurent.

Reisten Winery´s adopted practice is to place its wines in the market in the distinctly sophisticated lines: KABINETT, CLASSIC, MAIDENBURG and MATERLE.

www.reisten.net Reisten s.r.o.

Zahradní 288 692 01 Pavlov Tel.: +420 727 963 406 Tel.: +420 724 793 429 info@reisten.cz

Contact person: Ing. Bohdan Špička commercial and marketing director Tel.: +420 730 547 571 E-mail: spicka@templarske-sklepy.cz

The cellars offer some 25 wine varieties, which include: quality varietal wines, vintage wines, attributive wines, cabinet wines, late harvest wines and grape selection wines, archive, ice and straw wines.

Photo: CzechTourism (Dagmar Veselková), www.freeimages.com, Cover photo: www.freeimages.com, the firm's archives (ECOTEX s.r.o.; GLENTOR s.r.o.; SKLÁRNY MORAVIA, akciová společnost; ŠKODA AUTO a.s.; Templářské sklepy Čejkovice, vinařské družstvo; TOS VARNSDORF a.s.)

Prague  Charles Bridge

CONTENTS FOREWORD Foreword by HE Ambassador Gabriela Tománková Foreword by HE Alberts Sarkanis Foreword by HE Ambassador Bohumil Mazánek Foreword by HE Edvilas Raudonikis Czech Exporters Useful information

6 7 8 9 10 12

ECONOMICS Czech Economy in 2016 Economic and Trade Relations between the Czech Republic and the Republic of Lithuania Economic and Trade Relations between the Czech Republic and the Republic of Latvia Economic and Trade Relations between the Czech Republic and the Republic of Estonia Role of OSC, a.s. in the Liberalisation of the Energy Market

38 40 42 44

INSTITUTIONS 16 19 20 22

25 26 28

KEY SECTORS Czech Automotive Industry Steps Up Its Growth

32 34 37

15

BUSINESS In 2016 CzechInvest Mediated Investment Projects worth CZK 64 bn Trading Companies in the Czech Republic Tax System in the Czech Republic

Power Industry in the Czech Republic Czech Food Industry – Hidden Potential Czech Engineering – Tradition and Future Czech Medical and Sanitary Ware Conquers the World Czech Nanotechnology Enters Big Business Czech Agricultural Engineering The Czech Republic – Tourist Destination That Will Never Disappoint

31

Confederation of Industry CR Czech Chamber of Commerce International Chamber of Commerce Confederation of Employers’ and Entrepreneurs’ Associations of the CR CzechInvest CzechTourism CzechTrade Czech Centres Centre for Regional Development of the CR

48 48 51 51 52 52 53 54 54

CONTACTS Useful Contacts in the Czech Republic Useful Contacts in Estonia, Lithuania, and Latvia Important Internet Addresses

56 57 63

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

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FOREWORD

Dear Readers, The Czech Republic and the Republic of Estonia are undoubtedly close to each other in many respects. Although far apart geographically, they share similar historical experience, and parallels and are brought together by mutual economic collaboration, intensified in particular after their membership of the European Union in 2004.

The economies of the two countries are open and export-oriented.

The trade relations between the Czech Republic and the Republic of Estonia are good on the long-term basis, showing a growing trend in both exports and imports (despite the slight decline in both directions in 2016). Their mutual trade turnover in 2016 amounted to EUR 286 482 000, with Czech exports to Estonia totalling EUR 225 590 000 and Czech imports from Estonia totalling EUR 60 892 000.

Popular Czech export items in trade with Estonia are Škoda cars, noticeable on Estonian roads (also used by Estonia Police). In 2016, Škoda cars were the second best selling automobiles in Estonia, with Škoda Superb being voted the “Car of the Year” (as in 2009). In the past, Estonia imported tramcars from the former Czechoslovakia.

Other popular Czech items in Estonia include beer, Bohemia glass, and various kinds of Czech foodstuff.

Estonia has made significant progress since regaining its independence. In the first place, it has become a great power with regard to the creation and realisation of e-governance and cybernetic safety. Its great achievement is the launch of a state-run programme, the e-Residency project, which makes it possible for non-Estonian residents to communicate directly with all Estonian institutions. It has a special application targeted at businessmen who, in addition to establishing contacts and concluding contracts directly, may also set up affiliations or own enterprises in Estonia and manage them from the Czech Republic. Applications for e-Residency can be filed online.

The development of digitalisation in Estonia is supported by its highly developed telecommunications network. The whole country is covered by a broadband connection system. As much as 95 % of tax returns are filed by the Internet and 99.8 % of bank transactions are carried out electronically.

Estonia is known for its friendly investment environment. Foreign investors are guaranteed the same conditions as local firms. The availability of good quality business property and office space is increasing, which also applies to industrial parks.

In the near future, Rail Baltica – a new railway project – will materialise to span Estonia, Latvia, and Lithuania with a high-speed railway. This will be one of the largest investment projects in the forthcoming years for Estonia, and will improve travel, and assist in the promotion of business, tourism, and trade exchange. At the same time, it will provide excellent opportunities for major Czech contractors and subcontractors.

Gabriela Tománková Ambassador of the Czech Republic to the Republic of Estonia

6 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Dear Entrepreneurs, It is a great pleasure for me to address companies operating in the Czech Republic and Latvia through the new edition of “Czech Republic – Your Trade Partner” devoted to the Baltic countries.

Latvia and the Czech Republic share good and stable relations both in politics and economics. Joining the European Union in 2004 and being a part of the European Single Market gave both countries new opportunities for economic cooperation within the framework of common legislation and market principles. Over the years, the Czech Republic has become an important trade partner for Latvia, reaching a turnover of EUR 353.24 million in 2016. Major Czech brands, such as Škoda Auto and Škoda Transportation, Bohemia Crystal Glass, Avast, Bohemian Garnet, Krušovice, Velkopopovický Kozel, are well recognised in Latvia.

The impact of the financial crisis a decade ago can still be felt in the European Union. After the introduction of structural reforms, Latvia΄s economy has been experiencing sustainable growth and political stability over recent years. Becoming a Member of the Eurozone in 2014 has given Latvia greater opportunities and an attractive environment for business. To sustain economic development, Latvia recognises the importance of attracting foreign investment. As a thriving democracy, Latvia has consistently pursued liberal economic policies and welcomes investments that foster the principles and benefits associated with free markets. In the World Bank’s research “Doing Business 2017”, Latvia is ranked 14th among 190 countries in the world.

Latvia has a unique geographic and cultural position, providing a strategic location for business operations targeting developed economies of the EU and the emerging markets of its eastern neighbours.

Latvia is a natural gateway between the US, EU, and Asia. Located on the coast of the Baltic Sea, Latvia has three major ice-free international ports—Riga, Liepaja and Ventspils—that are closely linked to the country’s land-based infrastructure, including an extensive rail, road, and pipeline system. Riga International Airport is the largest airport in the Baltics. AirBaltic, the Latvian national airline, also provides daily flights from Riga to Prague, among more than 60 destinations.

I would like to take this opportunity to wish entrepreneurs in both countries success in business and intense collaboration for the mutual benefit and prosperity of Latvia and the Czech Republic.

Alberts Sarkanis Ambassador of the Republic of Latvia to the Czech Republic

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

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FOREWORD

Dear Readers, It is my pleasure to address the readers of the 2017/2018 edition of the “Czech Republic – Your Trade Partner” publication.

Our relations with the Republic of Lithuania have a long-term tradition with several important milestones, such as 1397, when the Lithuanian College was founded at Prague University. A few years later, in 1410, Jan Žižka fought in the Battle of Grunwald (Žalgiris) alongside Grand Duke Vytautas the Great. In the 19th century, the Czech national movement gave impetus to the Lithuanian national revival and the Czech letters ž, č, š made their way into the Lithuanian alphabet.

The Czechoslovak government was one of the first to recognise the independent Lithuania on 5th January 1922.

Our successful business cooperation started back in the 1920s, shortly after both countries became independent. After regaining independence and the transformation of the system from central planning to free market economy at the beginning of the 1990s, mutual economic relations enjoyed a dynamic and positive development. Except for the 2008-2009 crisis period, the volume of mutual trade grew annually by a significant percentage. In 2016, the trade turnover reached EUR 671 million, with Czech exports totalling EUR 463 million (33rd among all export markets) and imports from Lithuania stood at EUR 208 million (46th by volume of imports). The majority of Czech export goods were represented by ŠKODA cars and their parts, followed by various electronics, machinery, plastics, pharmaceuticals, and energy equipment.

Czech customers showed their interest mainly in Lithuanian plastic products, fertilisers, furniture, and pharmaceuticals.

Czech-made products are traditionally quite familiar to Lithuanian customers. Let me mention some of them – the famous beer brands of Budweiser Budvar, Pilsner Urquell, Primátor and Krušovice, Karlovarská Becherovka herbal liqueur, healthy snacks by Bonavita, Emco and other producers, seasonings by Vitana, etc. Likewise, the Zentiva pharmaceutical company and Wallmark food supplement supplier have many loyal consumers in Lithuania.

Thanks to the tradition of Czech industry, passengers frequently commuting between Vilnius and Kaunas can appreciate the quality of railway transportation on board modern double-deckers supplied by ŠKODA VAGONKA. From 2018, the railway connection between Vilnius and Minsk will be using Czech trains as well. Other well-known Czech companies e.g. AŽD, Eurovia, and Bonatrans, are actively participating in the modernisation projects of Lithuanian Railways, such as the Rail Baltica Project.

An increasing number of Lithuanian drivers enjoy driving some of the ŠKODA AUTO models, including the latest market hit, ŠKODA Kodiaq.

Local sales of the largest Czech exporter represent about 10 % and allow the company to hold the 4th position in Lithuania’s car market.

The growth of Lithuanian exports to the Czech Republic was equally encouraging during the past decade. One of the most interesting examples of the goods exported to Czechia was a delivery of the laser for scientific use to the newly built ELI project in Dolní Břežany near Prague.

Despite the growth of mutual trade exchange, there is still quite a high untapped potential for further development. The Embassy of the Czech Republic to Lithuania is aware of this and actively supports new projects in sectors like the defence and security industry, transport, energy, including renewable resources, environmental protection, etc.

Bohumil Mazánek Ambassador of the Czech Republic to the Republic of Lithuania

8 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Dear Readers, The Czech Republic and Lithuania are closely related on the grounds of their cultural and geographic proximity and mutual empathy. The two almost neighbouring countries have many shared historical experiences, which create a solid basis for excellent common understanding.

The turnover of bilateral trade has been constantly increasing over the past years and has currently exceeded EUR 600 million. The trade has been mainly focused on traditional items, such as vehicles from the Czech side and fertilisers from Lithuania. Therefore, there is a huge potential for further growth, and widening of the spectrum of goods and services. The examples of Lithuanian companies participating in the creation of high-technology scientific hubs in Czechia, as well as Czech entrepreneurs investing in Lithuania as the sea state for their global projects, demonstrate the way forward for future cooperation.

Close ties between Czech and German industry on the one hand and significant business relationships with Lithuania, along with the other two Baltic States, Latvia and Estonia, and the Nordic countries, create additional possibilities of synergy for those whose interest goes beyond bilateral projects.

Prague and other famous Czech landmarks have long been popular tourist destinations for Lithuanians. Czech tourism to Lithuania has increased by 26 % in the past year. I am confident that this kind of interchange of experience will serve to deepen and widen the knowledge of the two countries on both sides, which will in turn create even more new business opportunities in the future.

Edvilas Raudonikis Ambassador of the Republic of Lithuania to the Czech Republic

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

9

FOREWORD

Czech Exporters Czech enterprises that present their products and services in this publication intend to expand their exports and seek trade partners in the Baltic states. The firms are listed according to the branch codes – NACE. 10.30 10.39

11.02 13.30 13.94 13.96

16.10 19.20 20.16 20.30

20.41

20.42 20.59 21.20 22.29 23.13 23.19

24.00 25.10 25.11

25.11

25.20 25.29

Processing and preserving of fruit and vegetables ČEROZFRUCHT s.r.o.

35 Other processing and preserving of fruit and vegetables ČEROZFRUCHT s.r.o.

35 Manufacture of wine from grape Templářské sklepy Čejkovice, vinařské družstvo 4 Finishing of textiles CNM textil a.s.

58 Manufacture of cordage, rope, twine and netting Kv.Řezáč, s.r.o.

46 Manufacture of other technical and industrial textiles ECOTEX s.r.o.

24 Sawmilling and planing of wood MUT Tubes, s.r.o.

59 Manufacture of refined petroleum products CASALE PROJECT a.s 29 Manufacture of plastics in primary forms Gabriel, z.s.

45 Manufacture of paints, varnishes and similar coatings, printing ink and mastics H.E.T. s.r.o.

46 Manufacture of soap and detergents, cleaning and polishing preparations STYL, družstvo pro chemickou výrobu 47 Manufacture of perfumes and toilet preparations STYL, družstvo pro chemickou výrobu 47 Manufacture of other chemical products n.e.c.

STYL, družstvo pro chemickou výrobu 47 Manufacture of pharmaceutical preparations Biomedica, spol. s r.o.

39 Manufacture of other plastic products ERILENS s.r.o.

39 Manufacture of hollow glass SKLÁRNY MORAVIA, akciová společnost 2 Manufacture and processing of other glass, including technical glassware SKLÁRNY MORAVIA, akciová společnost 2 Manufacture of basic metals LaserTherm spol. s r.o.

62 Manufacture of structural metal products PROMAN s.r.o.

33 Manufacture of metal structures and parts of structures KOVONA SYSTEM, a.s.

36 Manufacture of metal structures and parts of structures PROMAN s.r.o.

33 Manufacture of tanks, reservoirs and containers of metal DESTILA, s.r.o.

30 Manufacture of other tanks, reservoirs and containers of metal INTERO, Chmelan a spol., společnost s r.o.

61

10 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

25.50

25.60 25.60 25.73 25.93 25.99 25.99 25.99 26.11 27.10

27.90 27.90 28.00 28.00 28.10 28.20 28.25

28.40

28.93

31.01 31.01 31.09 32.50

33.12

Forging, pressing, stamping and roll-forming of metal; powder metallurgy SV výrobní, s.r.o.

60 Treatment and coating of metals; machining LaserTherm spol. s r.o.

62 Treatment and coating of metals; machining SV výrobní, s.r.o.

60 Manufacture of tools KORAN, spol. s r.o.

14 Manufacture of wire products, chains and springs SV výrobní, s.r.o.

60 Manufacture of other fabricated metal products n.e.c.

KOVOSREAL s.r.o.

49 Manufacture of other fabricated metal products n.e.c.

ERILENS s.r.o.

39 Manufacture of other fabricated metal products n.e.c.

KOVONA SYSTEM, a.s.

36 Manufacture of electronic components STROJOBAL a.s.

41 Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus AŽD 11 Manufacture of other electrical equipment MALINA - Safety s.r.o.

55 Manufacture of other electrical equipment OSC, a.s.

17 Manufacture of machinery and equipment n.e.c.

STROJOBAL a.s.

41 Manufacture of machinery and equipment n.e.c.

LaserTherm spol. s r.o.

62 Manufacture of general-purpose machinery GLENTOR s.r.o.

18 Manufacture of general-purpose machinery ECOTEX s.r.o.

24 Manufacture of non-domestic cooling and ventilation equipment ECOTEX s.r.o.

24 Manufacture of metal forming machinery and machine tools RETOS VARNSDORF s.r.o.

21 Manufacture of machinery for food, beverage and tobacco processing DESTILA, s.r.o.

30 Manufacture of office and shop furniture PROMAN s.r.o.

33 Manufacture of office and shop furniture KOVONA SYSTEM, a.s.

36 Manufacture of other furniture KOVOSREAL s.r.o.

49 Manufacture of medical and dental instruments and supplies ERILENS s.r.o.

39 Repair of machinery GLENTOR s.r.o.

18

33.20

35.30 36.00 36.00 37.00 38.12 43.34 43.39 46.00

46.11

46.31 46.69

Installation of industrial machinery and equipment EP Rožnov, a.s.

Steam and air conditioning supply EP Rožnov, a.s.

Water collection, treatment and supply iWATING s.r.o.

Water collection, treatment and supply GORO, spol. s r.o.

Sewerage iWATING s.r.o.

Collection of hazardous waste CASALE PROJECT a.s Painting and glazing H.E.T. s.r.o.

Other building completion and finishing EP Rožnov, a.s.

Wholesale trade, except of motor vehicles and motorcycles E T E X Hořice s.r.o.

Agents involved in the sale of agricultural raw materials, live animals, textile raw materials and semi-finished goods MALINA - Safety s.r.o.

Wholesale of fruit and vegetables ČEROZFRUCHT s.r.o.

Wholesale of other machinery and equipment MALINA - Safety s.r.o.

Rail Transportation Road Transportation Telecommunications

46.74 36 46.90 36 46.90 50 46.90 57 49.41 50 52.00 29 46

52.21

36

52.29 62.02

13 71.12

55

71.20

35

74.00

55

Wholesale of hardware, plumbing and heating equipment and supplies MUT Tubes, s.r.o.

59 Non-specialised wholesale trade MUT Tubes, s.r.o.

59 Non-specialised wholesale trade GLENTOR s.r.o.

18 Non-specialised wholesale trade H.E.T. s.r.o.

46 Freight transport by road Multitrans CZ s.r.o.

30 Warehousing and support activities for transportation Multitrans CZ s.r.o.

30 Service activities incidental to land transportation AŽD 11 Other transportation support activities Multitrans CZ s.r.o.

30 Computer consultancy activities OSC, a.s.

17 Engineering activities and related technical consultancy CASALE PROJECT a.s 29 Technical testing and analysis OSC, a.s.

17 Other professional, scientific and technical activities STROJOBAL a.s.

41

AŽD Praha Traditional Czech supplier of modern control and signalling systems

Safely to your destination www.azd.cz

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 11

FOREWORD

USEFUL INFORMATION State symbols of the Czech Republic: The Large Coat of Arms

The State Flag

The Czech Republic is a landlocked country situated in Central Europe and bordering on Germany, Austria, Slovakia, and Poland.

BASIC DATA

Křivoklát Castle

Population Area Capital city System of government Language Highest peak Time zone Currency Internet domain

10 564 900 (June 2016) 78 864 sq. km Praha (Prague) Parliamentary democracy Czech Sněžka (Snow Mountain) – 1603 m a.s.l.

Central European time GMT + 1, summer time GMT + 2 Czech crown (Kč/CZK) = 100 hellers 1EUR = 26.770 CZK .cz

The President of the Czech Republic is Miloš Zeman.

MEMBERSHIP The Czech Republic is a member of the European Union, the United Nations, NATO, WTO, the International Monetary Fund, the Inernational Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, OECD, and many other organisations.

UNESCO WORLD HERITAGE Mariánské Lázně – the Colonnade

The UNESCO World Cultural Heritage List comprises the following cities and sites: Prague, Český Krumlov, Kutná Hora, Litomyšl Chateau, Telč, the Lednice-Valtice area, the Green Mountain – church of St John of Nepomuk, Holašovice, Kroměříž (castle and gardens), the Holy Trinity Column in Olomouc, Tugendhat Villa in Brno (architect Ludwig Mies van der Rohe), St Procopius Basilica and the Jewish Quarter in Třebíč. In 2005, the Moravian-Slovakian Verbuňk recruitment dance originating in the Moravia-Slovakia region was inscribed in the UNESCO Intangible Cultural Heritage List. In 2010, this was followed by another entry, the Shrovetide Carnival and Falconry Festival, and in 2011 the Moravian-Slovakian Ride of the Kings. More information can be found at www.unesco-czech.cz

Jindřichův Hradec

Additional practical information about transport and sojourns in the Czech Republic are available at www.czech.cz

Photo: CzechTourism, Source of map: Ředitelství silnic a dálnic

NOTABLE PERSONS Czechs are considered a nation with a long cultural tradition, which has given the world a number of significant persons. The best-known rulers and presidents include, for example, the Holy Roman Emperor and Cech King Charles IV, and the presidents T. G. Masaryk and Václav Havel. World renowned personalities include the scientists Jaroslav Heyrovský, holder of the Nobel Prize for Chemistry, Otto Wichterle, Czech chemist who invented contact lenses, and Antonín Holý, who participated in the development of medicines against AIDS. Other world renowned personalities are Tomáš Baťa, founder of the famous Baťa footwear trademark, and Madeleine Albright, former US Secretary of State. In the area of cuture, great names are those of the composers Smetana, Janáček, Dvořák, and Martinů, writers Karel Čapek, Franz Kafka, Nobel Prize winner Jaroslav Seifert, Jaroslav Hašek, Bohumil Hrabal, and Milan Kundera. Among film makers,

the best known are the Oscar Award winners Miloš Forman, Jiří Menzel, and Jan Svěrák. Other famous people of culture are the painters František Kupka, Alfons Mucha, and photographer Jan Saudek.

Famous Czech sportsmen include Emil Zátopek, Věra Čáslavská, Martina Navrátilová, Jaromír Jágr, Petr Čech, Barbora Špotáková, Petra Kvitová, Martina Sáblíková, and Eva Samková.

PRACTICAL INFORMATION Dialling code: +(420) More detailed information about telephone numbers can be found at www.zlatestranky.cz.

Licences for the operation of mobile networks in the Czech Republic have been accorded to the following companies: O2 Czech Republic a.s., T-Mobile Czech Republic a.s., Vodafone Czech Republic a.s. and Air Telecom as.

The most used credit cards in the Czech Republic are Eurocard/Mastercard and Visa.

ETEX Hořice s.r.o.

Husova 185, 508 01 Hořice Czech Republic GSM. +420 608 383 611 e-mail: martin.d@tiscali.cz

The firm ETEX Hořice s.r.o. is a traditional Czech manufacturer of classical woven handkerchiefs. It has been present in the Czech market for more than twenty years and has been exporting its products successfully to EU and non-EU states. Its products comprise the full range of men´s, ladies´ and children´s handkerchiefs in all price categories, from use to luxury jacquard, embroidered, and hand-printed pieces. Special emphasis is placed on the quality of the products and their inventive finishing.

www.kapesniky-horice.cz C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 13

KORAN s.r.o.

IS A MANUFACTURER OF MACHINE TOOL ACCESSORIES

Reduced Design of Clamping Chuck – Power Driven Tool Can Easier Reach the Part Center

www.koran-rankov.cz KORAN, spol. s r.o.

Rankov 15, CZ 374 01 Trhové Sviny, Czech Republic Telephone: 00420 386 321 829, Fax: 00420 386 322 702 e-mail: info@koran-rankov.cz

Standard Design of Clamping Chuck

Czech Economy in 2016 After the exceptionally good year of 2015, in 2016 the Czech economy continued its dynamic growth. However, this growth was less impressive than in the previous year. The 2016 economic growth rate reflected the prevailing situation and the potential of the Czech economy.

est surplus, as in 2015, was shown by the Machinery and Transport Equipment and Industrial Goods groups. On the other hand, a deficit was shown by the Mineral Fuels and Lubricants group.

GROSS DOMESTIC PRODUCT In the 4th quarter of 2016, real GDP grew by 1.9 % year on year and by 0.4 % quarter on quarter (seasonally adjusted). In the whole of 2016, GDP increased by 2.3 %, but the structure of economic growth changed basically. This time, the main sector which pulled the economy up, was foreign trade, favourably influenced by better export performance and higher household consumption.

PRICES

INDUSTRY In 2016, industrial production was 4.5 % up on the previous year.

Nearly all sectors of the manufacturing industry experienced growth, in particular the manufacture of motor vehicles, trailers and semitrailers (growth of 11 %) and electricity, gas, steam and air-conditioned air production and distribution (growth of 5.4 %) and the manufacture of rubber and plastic products (growth of 4.9 %). On the other hand, production declined in the category of Other Transport Equipment (by 18.9 %), in Mining and Extraction (by 9 %), and in the manufacture of Basic Pharmaceutical Products and Preparations (by 8.5 %).

FOREIGN TRADE In foreign trade, the favourable trend of previous years continued.

From January to November 2016, exports rose by an estimated 2.4 %, while imports declined by 0.3 %. The balance of trade ended in a surplus of CZK 486.5 billion (EUR 18 billion, USD 19.9 billion). The high-

In 2016, the inflation rate, as measured by the consumer price index, was 0.7 %, year on year the highest since December 2012. Most responsible for the year-on-year increase in the consumer price level were the prices of food and non-alcoholic beverages, in particular catering services, caused by the launch of the electronic revenue registry system, and by accommodation services and fuel prices.

WAGES The average monthly nominal wage of employees (full-time equivalent) in 2016 was CZK 29 320 (approximately EUR 1 085/USD 1 200), nominally up by 4.2 %, actually by 2.8 %.

Real growth in the business sphere was 0.1 % lower than in the non-business sphere.

Source: Czech National Bank, Ministry of Finance CR, Czech Statistical Office

Macroeconomic indicators of the Czech Republic 2009

2010

2011

2012

2013

2014

2015

2016

Gross domestic product (current prices)1)

CZK billion

3 922

3 954

4 034

4 060

4 098

4 314

4 555

4 713

Gross domestic product 1)

%. real. y/y

-4.8

2.3

2.0

-0.8

-0.5

2.7

4.5

2.3

% y/y

-13.6

8.6

5.9

-0.8

-0.1

5

4.6

2.9

Industrial production

1) 2)

%

6.1

7.0

6.7

6.8

7.7

7.7

6.6

5.6

General unemployment rate -source SLFS3)

%

6.7

7.3

6.7

7.0

7.0

6.1

5.0

4.1

% y/y

1.0

1.5

1.9

3.3

1.4

0.4

0.3

0.7

Registered unemployment

Inflation rate 4)

% average

0,6

1,2

2,2

3,5

1,4

0.4

0.3

0.6

Exports 5)

USD million

80 992

100 319

117 057

122 244

122 186

131 806

142 369

147 078

Exports 5)

% y/y

-18.4

23.9

16.7

4.4

0.0

7.9

8.0

4.2

Imports 6)

USD million

75 322

95 544

109 288

110 078

108 622

116 209

127 486

129 080

Imports 6)

% y/y

-22.0

26.8

14.4

0.7

-1.3

7.0

9.7

3.2

USD million

5 670

4 774

7 769

12 166

13 564

15 597

14 883

17 999

CZK/EUR 6)

average

26.445

25.290

24.586

25.143

25.974

27.533

27.283

27.033

CZK/USD 6)

average

19.057

19.111

17.688

19.583

19.565

20.746

24.600

24 432

Inflation rate

Balance of trade 5)

Source: Czech Statistical Office (CSO), Czech National Bank (CNB); General note: y/y = year-on-year change of indicator; 1) Data after revision according to ESA 2010 (European System of Accounts), year 2016 estimate; 2) Average unemployment to adult population (aged 15-64 years) ratio (Ministry of Labour and Social Affairs); 3)VŠPS (Selective labour force survey); 4) HICP (Harmonised Index of Consumer Prices), inflation rate according to EU (Eurostat); 5) Czech Statistical Office (CSU); 6) Czech National Bank (ČNB)

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 15

Economic and Trade Relations between the CR and the Republic of Lithuania Besides their similar historical traditions, experience and cultural ties, the Czech Republic and the Republic of Lithuania are linked by their close political and security interests and, especially, their traditionally close economic and trade cooperation. Relations between the Czech Republic and Lithuania have been at a high level on a long-term basis and are unburdened by any problematic issues, but rest on old historical traditions and the parallel building of modern statehood after the period of totalitarianism. The two countries hold similar positions on a number of foreign policy issues, including EU policy and priority areas of cooperation in NATO. The Republic of Lithuania has clear priorities within the framework of the Common EU Foreign and Security Policy (transatlantic relations, enlargement of the EU, etc.) and is an active regional player (Baltic and North Sea Collaboration) pursuing a new, modern diplomacy, the attention of which is focused on the Euro-Atlantic area and security agenda.

Lithuania, like the Czech Republic, has a strongly export-oriented, open economy.

Both countries are intensely interested in strengthening the international competitiveness of their firms, promotion of exports, innovation, educational programmes, and efficient foreign investments. Their economic and trade relations take place within the conditions of the EU single market.

Czech-Lithuanian economic and trade relations were significantly boosted after both countries had joined the European Union in 2004. Ever since, the volumes of their mutual trade have been growing. Their mutual trade exchange

is showing a strong growth, following the rapid decline caused by the financial and economic crisis in 2009. At the end of 2010, their trade exchange regained momentum and this trend is continuing.

Lithuania is one of the most rapidly growing economies in the EU. In 2015, the Lithuanian economy grew by 1.6 % year on year.

All indications are that the growing Lithuanian economy, supported by investment and becoming increasingly export-oriented, has by far not exhausted its potential. In 2015, Lithuania´s GDP reached EUR 37 123 million, which is EUR 12 780 per capita of the population.

In 2016, Lithuania´s trade exchange with the Czech Republic declined by 2.9 % in comparison with 2014, with Czech exports falling by 4.0 % and imports by 0.5 %. In that period, the balance of mutual trade showed a surplus totalling EUR 215.5 million.

In 2016, the mutual trade exchange showed a 5.4 per cent increase in comparison with the previous year, reaching the highest turnover value (EUR 670.5 million), with Czech exports increasing by 8.6 % and imports declining by 1.1 %. In that period, the mutual trade balance showed a surplus of EUR 24.4 million. In 2015, the two countries’ mutual trade exchange occupied 39th position among the Czech Republic’s trade partners in general.

In the January-February 2017 period, mutual trade exchange between the Czech Republic and Lithuania increased by 14.9 % year on year, with Czech exports increasing by 28.2 % and imports declining by 7.5 %. The balance of mutual trade in that period showed a surplus of EUR 45.3 million in favour of the Czech Republic.

The Czech-Lithuanian balance of trade has been showing a surplus in favour of the Czech Republic on a long-term basis. However, in terms of the overall Czech foreign trade turnover, this share accounted for only 0.2 %. On a long-term basis in trade with the Baltic countries, Lithuania holds the position of the strongest trade partner among the Baltic states (ahead of Latvia and Estonia).

Trade exchange between the CR and Lithuania (EUR thous.)

EUR

Exports placing

Index

EUR

Imports placing

Index

EUR

Turnover placing

Index

2010

255 500

34.

132.4

89 735

48.

120.2

345 235

45.

129.0

2011

314 334

35.

123.0

116 932

50.

130.3

431 266

43.

124.9

2012

436 385

29.

138.8

142 450

50.

121.8

578 835

40.

134.2

2013

459 244

29.

105.2

175 290

48.

123.1

634 534

40.

109.6

2014

443 841

32.

96.6

211 509

47.

120.7

655 350

40.

103.3

2015

425 985

37.

96.0

210 495

48.

99.5

636 480

41.

97.1

2016

462 459

33.

108.6

208 078

46.

98.9

670 537

39.

105.4

Source: Ministry of Industry and Trade CR

16 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

:RUNLQJ ZLWK HQHUJ\

PRODUCTS AND SERVICES Q Distributed data acquisition and control systems for power plants and heating stations Q Operational adjustment and optimization of power plants Q Highly qualiďŹ ed engineering services for hydropower, site tests, support for start up procedures Q Preparation of power plants and heating stations to provide ancillary services including certiďŹ cation measurement Q Simulators and technology trainer systems, up to replica type training simulators Q Support of production control in emergency states of Electric Power Systems - island operation, black-start Q Development of real-time applications Q GPS time units and time servers, special electronic modules REFERENCES Q NPP TemelĂ­n, NPP Dukovany - Full scope replica type training simulators Q NPP TemelĂ­n - lmplementation of design modiďŹ cations in Plant Control System (WDPF - Westinghouse) Q ÄŒEZ - Distributed system for remote production control from the producer‘s Dispatch Centre

ZZZ RVF F]

26& D V 6WDÄ–NRYD D %UQR &]HFK 5HSXEOLF

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GLENTOR s.r.o. operates in manufacture, repairs and service of hydraulic equipment on a long-term basis and combines its business activities with qualified consulting in the area of hydraulics and pneumatics. We are an authorised representative of companies Eaton Hydraulics, Linde Hydraulics, Spitznas Maschinenfabrik, Filtration Group and Hütz&Baumgarten.

GLENTOR s.r.o. products are used in mining, steel industry, construction, railway and ship transport, shipbuilding industry and as parts of agriculture machines.

Axial piston hydraulic motors HM and pumps HG Hydraulic motors and pumps are axial piston hydrostatic units of bent axis type. They have fixed displacement and are designed for hydraulic systems of mobile and stationary machines. They can be used both in open and closed hydraulic circuits.

Customised hydraulic units Project, design and manufacturing of hydraulic power units are carried out according to the customer’s wish and demands. We also offer putting the unit into operation at the customer’s plant. Units driven by an electromotor or combustion engine. Possibility to deliver power unit including electric control. Repairs and modernization of older power units.

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Economic and Trade Relations between the CR and the Republic of Latvia Besides similar historical traditions and experiences and cultural links, the Czech Republic and Latvia are also connected by close political and security objectives and, in particular, by close economic and trade cooperation. Latvia, like the Czech Republic, is a strongly export-oriented country with an open economy.

In addition, both countries are intensely committed to the strengthening of international competitiveness of their firms, the development of their export potential, innovation, educational programmes, and efficient foreign investments. The Czech Republic´s trade with the Baltic States receives valuable support from CzechTrade Agency, which has an office in Riga.

Czech-Latvian trade and economic relations were given a boost when, in 2004, both countries joined the European Union. Later, in 2008 and 2009, their mutual trade was adversely influenced by the financial and economic crisis, which severely affected the Latvian economy. This trend was reversed at the end of 2010, when mutual trade began to grow again.

In 2015, mutual trade showed a 13.5 % increase over 2014, when Czech exports rose by 14.9 % and imports by 9.7 %. In 2015, mutual trade showed a surplus of EUR 148.0 million.

In 2016, trade between the two countries continued to grow and was 10.2 % up on the 2015 level, with the mutual turnover amounting to EUR 345.5 million, the highest level to date. In that year, Czech exports increased by 4.5 % and imports by 25.8 %. In that period, the balance of mutual trade showed a surplus of EUR 137.1 million.

In the first two months of 2017, mutual trade exchange increased by 7.8 % in comparison with the same period in 2016, where Czech exports declined by 0.1 % and imports increased by 31.1 %. In the period under review, the balance of mutual trade showed a surplus of EUR 19.3 million.

Trade between Latvia and the Czech Republic has been showing a surplus in favour of the CR on a long-term basis. The volume of this trade, however, accounts for only approx. 0.1 % of the total Czech foreign trade turnover. In trade with the Baltic States, Latvia occupies second position after Lithuania and ahead of Estonia.

In 2016, the most important Czech export items were machinery and transport equipment (53.9 %), market products classified by material (16.7 %), miscellaneous industrial products (11.3 %), and chemicals (9.9 %). With regard to the commodity structure of Czech exports, the leading items were road vehicles, telecommunication and sound recording and reproduction equipment, machinery and equipment generally used in industry, electrical equipment, instruments and appliances, reactors and mechanical devices, metal products, office machines and automatic data processing equipment, textile yarns, fabrics and market products made from them, clothing and accessories, etc.

Czech products in great demand in Latvia on a long-term basis include transport vehicles – Škoda cars, Škoda Electric and Škoda Transportation trolleybuses and tramcars, modernised shunting locomotives, etc.

While in 2013, Czech exports to Latvia increased by 13.7 % year on year and Latvian exports to the Czech Republic by as much as 52.9 %, a prominent decline in value was noted on both sides of the balance. In 2014, Czech exports, in EUR denomination, were worth only 3.0 % in comparison with the previous years and imports from Latvia were 91.2 % of the 2013 value. The values began to improve only at the end of the summer 2014.

This development can be explained as being largely due to the variability of the commodity structure in mutual trade exchange, where the

Trade exchange between the CR and Latvia (EUR thous.)

EUR

Exports placing

Index

EUR

Imports placing.

Index

EUR

Turnover placing

Index

2010

138 858

44.

123.0

30 478

64.

88.7

169 336

56.

115.0

2011

162 634

45.

117.1

50 618

62.

166.1

213 252

55.

125.9

2012

212 622

44.

130.7

54 124

64.

106.9

266 746

54.

125.1

2013

241 844

43.

113.7

82 733

57.

152.9

324 577

53.

121.7

2014

200 824

48.

83.0

75 482

61.

91.2

276 306

57.

85.1

2015

230 816

44.

114.9

82 785

62.

109.7

313 601

58.

113.5

2016

241 288

42.

104.5

104 167

62.

125.8

345 455

56.

110.2

Source: Ministry of Industry and Trade CR

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 19

ECONOMICS

drop-out of one important item may significantly affect the result in the period under review. Another potential reason is that a completely new big item may appear unexpectedly, as happened in the record year 2013, when precious metals, pearls and products thereof, appeared “sparkling” at the top of the list of imports and exports, far ahead of other commodities; they were most probably re-exports from third countries.

The most important import items (SITC 1) include foodstuff and live animals (26.6 %), miscellaneous industrial products (22.1 %), market products classified by material (18.9 %), machinery and transport equipment (17.0 %), and chemicals (11.3 %). In imports from Latvia, the dominant items were telecommunication and sound recording and reproduction equipment, dairy produce and

eggs, coffee, tea, cocoa, spices and products thereof, medicines and pharmaceutical products, iron and steel, fish and crustacean meat products, cork and wood products, textile yarns, fabrics and products thereof, etc.

The volume of direct mutual investments is relatively modest. At the end of 2016, direct Latvian investments in the Czech Republic amounted to approximately CZK 109.5 million according to Czech National Bank statistics.

Czech investments in Latvia in the same period are estimated at CZK 203.2 million.

Several Czech enterprises participate in various infrastructure projects co-financed from EU funds as partners of local contractors. One such project, for example, is the collaboration of the Czech firms of T-Soft and Horten with Latvian and Lithuanian partners on a pilot project named “Strategy of Crisis Management for the City of Jelgava”.

Other firms investing in Latvia are, for example, Synot W a.s., Plaček Holding, SE and SVUS Pharma A/S. Based on materials of the Ministry of Industry and Trade of the Czech Republic

Economic and Trade Relations between the CR and the Republic of Estonia Trade cooperation between the Czech Republic and the Republic of Estonia has a long tradition. The link between the CR and all the three Baltic states is their similar historical development and similar political, economic, security, and cultural objectives.

The political changes which took place in the Central and East European countries at the end of the 1990s meant a new era for those states in building their political, trade, and economic relations. Estonia is the smallest of the Baltic states and, with regard to the volume of mutual trade exchange, the smallest trade partner of the Czech Republic among the Baltic states (after the Republics of Lithuania and Latvia). The Estonian market is therefore not among the large outlets for Czech goods. Nevertheless, hundreds of small and medium-sized Czech firms, besides a number of big ones, have found opportunities to do business in this market. A great boost for the promotion of mutual collaboration is the common membership of those countries of the European Union and NATO. Czech-Estonian trade and economic relations experienced an important boost after the two countries joined the European Union in 2004.

As the table shown here indicates, the upward trend in mutual trade was negatively affected in 2008 by the economic crisis. Mutual trade picked up in 2010 and the rising trend continues.

20 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

In the past 15 years, the Czech Republic has figured regularly among the first 30 Estonian trade partners, according to statistics.

The mutual balance of trade is steadily showing a surplus in favour of the Czech Republic. In the total turnover of the Czech Republic´s foreign trade, the proportion of this trade, however, only accounts for 0.1 %.

In 2015, the trade exchange between the CR and Estonia increased by 9.4 % in comparison with 2014, with Czech exports rising by 2.2 % and imports into the CR by 47.4 %. In 2015, the mutual balance of trade showed a surplus of EUR 164.7 million.

In 2016, the volume of mutual trade exchange recorded a further increase, rising by 12.4 % in comparison with 2015 and reaching the highest level of mutual turnover (EUR 321.9 million), with Czech exports increasing by 5.0 % and imports by 39.5 %. In that year, the mutual trade balance showed a surplus of EUR 151.9 million.

In the January-February 2017 period, the volume of mutual trade exchange increased by 24.5 % in comparison with the same period in the previous year, where Czech exports rose by 9.6 % and imports by 75.4 %. The mutual balance of trade in the period under review showed a surplus of EUR 19.9 million.

The most important Czech export items in 2016 were machinery and transport equipment (53.8 %), market products classified by material (17.6 %) and miscellaneous industrial products (15.5 %). Regarding the commodity structure of Czech exports last year, the two top positions were occupied by road vehicles, electrical equipment, devices and appliances, equipment for telecommunication and sound recording and reproduction, machinery and components for general industrial use, metal products, non-metallic mineral products, clothes and accessories, textile yarns, fabrics and market products thereof, etc.

The most important import items include market products classified by material (34.3 %), miscellaneous industrial products (29.0 %), and machinery and transport equipment (20.2 %). Figuring high among Czech imports from Estonia were textile yarns, fabrics and market products made thereof (floorings), road vehicles, cork and treated wood and miscellaneous wood products, paper, cardboard and products thereof, furniture and its components, electrical equipment, devices and appliances, prefabricated buildings, machinery and components for general industrial use, etc.

There are no Czech-Estonian joint ventures operating in Estonia, according to available information. The volume of direct mutual in-

vestments is relatively modest. The volume of direct Estonian investments in the Czech Republic at the end of 2016 amounted to approximately CZK 598.9 million (decline) according to Czech National Bank estimates. The volume of Czech investments in Estonia at the end of 2016 amounted to CZK 26.5 million, as shown

by CNB statistics.

Based on materials of the Ministry of Industry and Trade of the Czech Republic

Trade exchange between the CR and Estonia (EUR thous.)

EUR

Exports placing

Index

EUR

Imports placing.

Index

EUR

Turnover placing

Index

2010

118 368

48

142

42 788

61

153.9

161 156

58

145

2011

176 164

44

148.8

48 758

63

114

224 922

53

139.6

2012

191 602

46

108.8

36 253

71

74.4

227 855

58

101.3

2013

198 490

47

103.6

39 963

67

110.2

238 453

59

104.7

2014

220 689

46

111.2

41 328

69

103.4

262 017

60

109.9

2015

225 608

46

102.2

60 931

67

147.4

286 539

61

109.4

2016

236 904

43

105

85 027

63

139.5

321 931

59

112.4

Source: Ministry of Industry and Trade CR

T-TYPE HORIZONTAL BORING MILL

www.retos.cz

Producer of Horizontal Boring Mills More than 25 years of experience

Q new

CNC and conventional machines

Q retrofitting Q

accessories

Q

spare parts

Q

expert service

We have been producing horizontal boring mills in table-type and floor-type versions.

Now, we have developed a universal T-type of our RET10P boring mill in the same traditionally high Czech quality. You can customize it by choosing from a large variety of accessories and by adapting some of the machine’s parameters to your specific needs.

The RET10X – a machine with X options – meeting your requirements 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

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 21

ECONOMICS

Role of OSC, a.s. in the Liberalisation of the Energy Market The supplies and services provided by OSC, a.s. in connection with the electrification system management are a continuation of the rich tradition dating from the time when the former Czechoslovak Socialist Republic was building its unified energy system and its connection to the Mír (Peace) system. This experience was revived in the early 1990s, when the Czech Republic started preparing the connection of its electrification system to UCPTE (now ENTSO-E) and later during preparations for linking the Burshtyn Energy Island (Ukraine) to ENSTO-E (in about 2000) and now in the process of preparations to connect the entire Ukraine and Moldova to ENTSO-E. Together with the technical preparation of the power stations and the transmission system, it is important to make organisational and legislative changes, in particular to create a liberalised electricity market supported by the required services. As a follow-up, the company is participating in preparations to privatise the energy industry and to build a liberalised energy and related services market.

In connection with the legislative and organisational changes, OSC, a.s. has provided technical support at all stages of the efforts to connect the system to ENTSO-E. The starting point in this process was the specification of requirements regarding the operating properties of the electrification system, where OSC supplied consulting and engineering services.

Besides requirements in respect of the electrification system as a whole (reliability and stability of operation, resistance to defects, basic operation management mechanisms), requirements were specified with regard to the manufacturing equipment, especially in the case of big system power stations. This concerned mainly the quality of active power regulation

and the ability of its dynamic changes with defined precision. Based on the knowledge of the existing state of the blocks, measures were proposed to achieve the required state using the appropriate methods of testing to ensure the correct behaviour of the blocks. After adjustments made in collaboration with the technology and local control system suppliers, the properties of the blocks were verified by measuring based on the approved method, which the company carried out on selected production blocks and evaluated.

Another level of preparations for the operation of the system within the framework of ENTSO-E carried out by OSC, a.s. was the realisation of data and control links between the Dispatch Centre of the system and the power stations and heating plants connected to the system. The data and control links must ensure the monitoring of the operation of the plants in real time from the Dispatch Centre and the transfer of control signals – required output values from the Dispatch Centre to the plants. As this task is specific for each power station or heating plant depending on the specific properties of the technological equipment and their control systems used, OSC, a.s. has developed a special software system to function in real time for the implementation of all the communication and control functions, allowing full customisation. For the use of special software for each plant, customised distributor systems have been supplied in combination with general and customised components, to ensure full adaptation to the specific conditions of the plant, while ensuring the economic efficiency of delivery.

The meeting of all the technical prerequisites for the connection of the system to ENTSO-E and their verification was followed by the liberalisation of the market environment and the separation of different processes, such as the electrification system operation control, power generation, and the provision of support services for ensuring the stability and safety of operation. To respond to the changed conditions, OSC, a.s. applied the necessary systemic solutions at the customer’s end: power Dispatch Centres for electricity manufacturers, IT support of the comprehensive solution of the entire chain of business, production planning, operative control of production and evaluation of operation, including the economic effects of the realised deals.

Jindřich Kysela for OSC, a.s.

Connection to UCTE No.

Description

1

Project and execution of tests for connection of the Burštýn Island power plant to UCTE

2

Measurement and evaluation of system tests of UCTE/CENTREL

Object WEPS Lvov - Burštýn power plant (Ukraine)

Year 1998 - 2002

ČEZ, a.s.

1995

Object

Year

Modernisation of Power Plants within Context of Connection to UCTE No.

Description

1

Primary frequency control optimisation in Dalešice, Orlík, Lipno, and Kamýk hydro power plants

ČEZ, a.s.

1998

2

Preparation of ČEZ power plants for operation in primary and secondary power control

ČEZ, a.s.

1992 - 1995

22 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Modernisation of Power Plants within Context of Connection to UCTE No.

Description

Object

Year

1

Delivery of power plant terminal for Kharkiv power plant (Ukraine)

WEPS Lvov - Burštýn power plant (Ukraine)

2014 - 2016

2

Software and hardware upgrade for Burštýn power plant terminal (Ukraine) - communication with RDC Lvov Dispatch Centre via IEC - 870 - 5 – 104 protocol, automatic stand-by of control units, frequency measurement and time synchronisation from GPS

OAO Zachidenergo - Burštýn power plant (Ukraine)

2002 - 2008

3

Monitoring of power plant operation from ČEZ Dispatch Centre for Skawina and Chorzow power plants (both Poland) - installation of mini-terminals

ČEZ, a.s. - Skawina and Chorzow power plants (Poland)

2008

4

Modification of power plant terminals in the Czech Republic for integrated dispatcher system of Transmission System Operator

5

Delivery of 40 power plant terminals for power plants in the Czech Republic

6

Power plant terminal upgrade – support for automatic stand-by functions for ancillary services control

7

2007 1994 - 2016 Sokolovská uhelná, právní nástupce, a.s. Vřesová combined heat and power plant

2006

Key part power plant terminal duplication with automatic stand-by functions for ancillary services control

ČEZ, a.s.

2005

8

Power plant terminals tests during preparation for control system duplication in Dispatch Centre of Transmission System Operator

ČEZ, a.s.

2005

9

Delivery of power plant terminal for Burštýn power plant and upgrade of the terminal for data communication with unit control systems and with control system of the RDC Lvov Dispatch Centre

WEPS Lvov - Burštýn power plant (Ukraine)

2000 - 2002

10

Delivery of border substation terminals (Albrechtice, Lískovec, and Nošovice)

ČEPS, a.s.

1998

Object

Year

1

Modification Simulator for ČEZ Dispatch Centre. Provision of staff training and proving of KOTEL control system algorithms. The Simulator includes complete models of the control system, connected power plant terminals and production technology

ČEZ, a. s.

2015-2017

2

Simulator for ČEZ Dispatch Centre. Provision of staff training and proving of KOTEL control system algorithms. The Simulator includes complete models of the control system, connected power plant terminals and production technology

ČEZ, a. s.

2008

3

Reconstruction of plant data damaged by server failure or by communication failure between power plants and ČEZ Dispatch Centre in Wonderware Historian

ČEZ, a.s.

2007

4

Delivery of Information Centre for Paroplynový cyklus Bratislava making data and terminal function accessible via Intranet and Internet

Paroplynový cyklus, a.s. - Combined cycle Bratislava (Slovakia)

2007

5

Delivery and continuous modernisation of Presentation Layer for technology data presentation in Intranet of ČEZ Plc. company, (completed as STEP system)

ČEZ, a.s.

2004 - 2016

6

Delivery of KOTEL (Concentrator of power plant terminals) – information and control system of ČEZ Plc Central Dispatch Centre. The KOTEL system supports operation scheduling, ancillary services provision, group power balancer and distributor, dynamic optimisation and control of coal and pumped-storage power plants

ČEZ, a.s.

2000 - 2005

6

System delivery for real-time production monitoring and controlling from the Pražská energetika Dispatch Centre for Opatovice power plant

PRE, a.s.

2005

Dispatch and Information Centres No.

Description

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 23

w w w.ecotex.cz Ecotex s.r.o.

Q we have been involved in the field of dry and liquid industrial filtration for almost 40 years.

Q The strategy behind our active approach to repairing environmental damage has made us the long-term leader in our field. We try to understand the needs of equipment manufacturers and operators by maintaining continuous contact with them, we try to fulfil their requirements and exceed their expectations.

Q Custom made production for different applications all over the world Q Development and production of all types of supporting cages: round, star, oval and flat

ECOTEX s.r.o. | Dráby 785/IV | 566 01 Vysoké Mýto | CZECH REPUBLIC | KAYSER filtration group

In 2016 CzechInvest Mediated Investment Projects Worth 64 Billion Crowns

Photo: PhotoCombo

Domestic and foreign firms are planning to invest more than CZK 64 billion in the Czech Republic under arrangements mediated by CzechInvest in 2016, CZK 20 billion more than in 2015. In more than 84 per cent of cases, this involves the expansion of firms which already operate in the Czech Republic. One in four of these cases are high-tech projects (projects with higher value added). Eighty per cent of the investment projects are planning to apply for investment incentives.

There are 16 basically new investment projects. Eighty-four investment projects involve the expansion of firms already operating in the Czech Republic. Foreign investors stand behind 78 projects, domestic investors behind 21. One project is a joint venture. Most of the foreign investment projects have been mediated by CzechInvest with investors in Germany. In aggregate, they are worth CZK 9.3 billion. Coming next are 10 projects agreed with Austrian investors, worth CZK 8.1 billion, and 10 projects worth CZK 4.4 billion negotiated with US investors. The share of Chinese investments is increasing each year. Last year, Chinese investors promised to invest CZK 3.2 billion, twice as much as in 2015.

Most investments (22 projects worth CZK 19.2 billion) will go into the manufacture of motor vehicles, followed by the metalworking sector (16 projects worth CZK 4.7 billion) and the plastics industry (9 projects worth CZK 3.4 billion).

Most firms are planning to invest in the Ústí and the Moravia-Silesia Regions, with 13 projects in each region. Investments planned in the Ústí Region will be worth CZK 24.1 billion and will create 1 949 jobs. Investments to go into the Moravia-Silesia Region will amount to CZK 4.6 billion and will create 1 688 jobs. Ranking third in terms of the number of projects mediated by CzechInvest is the Plzeň Region, where 10 firms are planning to invest CZK 4.3 billion and create 1 117 new jobs.

The largest investment mediated by CzechInvest in 2016 is the expansion of Karsit Automotive, s.r.o., in Trutnov. The compa-

ny is planning to invest CZK 2.7 billion in the expansion of its division manufacturing components for the automotive industry, whereby 576 new jobs will be created. The third largest investment project is the setting up of a strategic services centre for the originally Czech start-up company Skypicker, renamed Kiwi.com. The investment will amount to CZK 1.5 billion and will create 700 new jobs.

This is, among other things, the outcome of the long-term support of Czech start-ups by CzechInvest Agency.

Investors are currently experiencing a shortage of skilled labour, the consequence of the record low unemployment rate in the Czech Republic. Another setback for large investors is the inadequate number of localities prepared for immediate operation, caused by the acceleration of the investment process from plan to actual realisation on the one hand and the lengthy permission proceedings on the other hand. This often leads investors to choosing another country for their investment activities.

CzechInvest www.czechinvest.org Note: USD 1 = CZK 24.888 (average monthly exchange rate fixed by the Czech National Bank in January 2017) C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 25

BUSINESS

Trading Companies in the Czech Republic The subject of this article is to acquaint readers with Czech legislation concerning trading companies in comparison with corresponding legislation in the Baltic states, i.e. Estonia, Lithuania, and Latvia.

The article surveys the different forms of trading companies in the Czech Republic, their definitions and basic features and explains the procedure to be followed in founding and establishing those trading companies in this country, mentioning the main similarities and differences between them.

TYPES OF TRADING COMPANIES Legislation concerning trading companies is laid out in the following legal regulations, in particular: the Trading Corporations Act, the Civil Code, and the Act on Public Registers of Juristic and Natural Persons. The Trading Corporations Act regulates, inter alia, the different types of trading companies, which include the unlimited liability company and the limited partnership company (personal companies), the limited liability company and the joint stock company (capital companies), the European company and the European Economic Association. The most widely used forms of trading companies in the CR are the limited liability company and the joint stock company. The same forms of trading companies, i.e. the limited liability company, the joint stock company, the unlimited liability company, and the limited partnership company, also exist in Estonia, Lithuania, and Latvia.

FOUNDING AND ESTABLISHING TRADING COMPANIES In the Czech Republic, trading companies are founded on the basis of the Articles of Incorporation (several founders) or the Deed of Incorporation (one founder). In the case of a joint stock company, its founders are required to adopt the company´s Articles of Incorporation.

If the company is founded by a sole founder, the Deed must have the form of a notarial record. The Articles of Incorporation of a limited liability company and those of a joint stock company must also have the form of a notarial record. The establishment of a Czech trading company is conditioned by the company´s being entered in the Commercial Register (constitutive registration). The authority to decide on the company´s incorporation in the Commercial Register is the locally appropriate Regional Court according to the location of the company´s registered address.

In Estonia, trading companies are registered with the Registration Office coming under 26 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

the Ministry of Justice, in Latvia with the Company Register of the Republic of Latvia. In the case of trading companies in the Czech Republic, the registration process can be shortened and public funds saved by a direct entry in the Commercial Register through a notary.

This is permitted in some cases, provided all the required documents needed for registration have been submitted to the notary.

However, only a notary who has himself drafted all the necessary documents may make the entry. This, however, is only a facultative possibility, which means that the founders may always apply to the locally appropriate Commercial Court in charge of the Commercial Register. The Commercial Register is one of the public registers regulated by the Act on the Public Registers of Juristic and Natural Persons. It is conducted in electronic form (competent Regional Court depending on the company´s registered address).

The Commercial Register is open to the public. It contains the most important information concerning the trading company (name of company, its registered address, names of the members of the company´s statutory bodies, amount of contributions, amount of registered capital, etc.) and other data laid down by the Act on Public Registers of Juristic and Natural Persons. Information about trading companies is also available on the websites http://portal. justice.cz/Justice2/Uvod/uvod.aspx (where also documents supplied by the companies to the Commercial Register are available in electronic form) and www.obchodnirejstrik.cz.

In Lithuania, the Commercial Register is kept by the Registration Office. In the case of trading companies, only basic information can be obtained electronically free of charge; to obtain more detailed data in electronic form, the petitioner is required to register and pay a fee, the amount of which depends on the extent of the information required. Petitions for incorporation in the Commercial Register must be filed electronically on special forms available at https://or.justice.cz/ias/ui/podani. The petition for incorporation must be supported with documents confirming the facts to be entered in the Commercial Register and documents to be filed in the collection of documents in connection with this entry (especially the founding documents – Articles/Deed of Incorporation, or the company statutes, documents proving the subject of the company´s business, documents proving that the investment/contribution has been paid, e.g. a statement by the investment administrator confirming that the investment has been paid down, documents stating the company´s registered address, etc.).

The petition for incorporation of a Czech trading company in the Commercial Register must be filed within six months of the founding of the company at the latest. An essential condition for incorporation in the Commercial Register is the payment of the court fee. The amount depends on whether the entry in the Commercial Register is done by the notary or the court. In the case of the registration being done by the court, the fee is CZK 12 000 (approximately EUR 448) for a joint stock company, and CZK 6 000 (approximately

JOINT STOCK COMPANY

EUR 224) in the case of other trading companies. If the registration is done through a notary, provided all the above-mentioned conditions have been met, the court fee is CZK 8 000 (approximately EUR 299 in the case of a joint stock company and CZK 2 700 (approx.

EUR 101) in the case of other trading companies). If the registration of a limited liability company is done through a notary, the entry may be exempted from the obligation to pay the court fee, provided the following conditions have been met: the entry is done on the basis of a notarial record of legal dealings on the founding of a limited liability company, which only comprises legal requisites stated by the Civil Code and the Trading Companies Act and according to which the deposit obligation is to be fulfilled by pecuniary payment.

UNLIMITED LIABILITY COMPANY AND LIMITED PARTNERSHIP COMPANY Czech law defines the unlimited liability company as a company of at least two persons who participate in its business activities or the administration of its assets and are liable for its debts jointly and severally. The limited partnership company is defined as a company in which at least one partner has limited liability for its debts (limited partner) and at least one partner unlimited liability (general partner).

Photo: PhotoCombo

LIMITED LIABILITY COMPANY The Trade Act defines this type of company as a company whose partners are liable for the debt of the company jointly and severally, to the amount to which they failed to meet their contribution obligations, i.e. to the level stated in the Commercial Register at the time they were called upon by the creditor to pay. A limited liability company may be founded by a sole founder, while the maximum number of founders (partners) is not limited by law. The share of a partner in a Czech limited liability company is determined by the ratio of his contribution to his share of the company´s registered capital, unless the Articles of Incorporation have provided otherwise. The Articles of Incorporation may allow for the existence of different kinds of shares, where the partner may own more shares, even of a different type (if the Articles allow). The minimum amount of the contribution is 1 Czech crown (approximately EUR 0.04), unless the Articles have provided for a higher amount. Therefore the registered capital of a Czech limited liability company may be only 1 Czech crown (EUR 0.04). Czech legislation requires the partners to pay down at least a part of their contributions before the company´s name is entered in the Commercial Register, which means that the entire share premium and at least 30 % of the pecuniary deposit must have been paid down. The partner must fulfil his obligation to pay down the amount of his contribution within a time limit determined by the Articles, but not later than within 5 years of the establishment of the company. The statutory bodies of a Czech limited liability company are the General Meeting and the Company Secretaries. Czech legislation also allows limited liability companies to set up a Supervisory Board.

The Czech joint stock company is defined as a company whose registered capital is divided into a certain number of shares.

The registered capital of a Czech joint stock company is denominated in Czech crowns. In the case of the joint stock company keeping its accounts in euros under a special regulation, it may state its registered capital in euros. The minimum amount of its registered capital is CZK 2 000 000 (approximately EUR 74 710) or EUR 80 000. The minimum amount of registered capital of a Latvian joint stock company is EUR 35 000. The shareholder of a Czech joint stock company is obliged to pay down the emission value of the shares he has subscribed for within the time limit laid down by the company statutes, but not later than one year of the establishment of the company.

Czech legislation allows for a joint stock company to be founded by a sole partner. Joint stock companies are founded without a public offer of shares, which means that they are founded only by the payment of the investments of the founders, who will subscribe for all shares of the company. Those founders then approve the company´s Articles of Incorporation, whereby the company is founded.

In Lithuania, the legislation distinguishes between the private joint stock company (minimum number of shareholders is 1 and the maximum number 100) and the public joint stock company (minimum number of shareholders being 1, while the maximum number is not limited). The public joint stock company must be registered with the Securities Commission.

With regard to Czech joint stock companies, the Trading Companies Act makes it possible for its founders to choose between the dualistic and monistic structure. In the case of the dualistic option, the company is required to set up a Board of Directors and a Supervisory Board, in addition to having the obligation to convene General Meetings. Within the monistic structure, the company only sets up a Board of Directors with a statutory Director, where the Board of Directors may have only one member.

In practice, this means that the sole Member of the Board of Directors will at the same time be the company´s statutory Director. In Estonia, the joint stock company must have a Board of Directors and a Supervisory Board.

Law Office Hartmann, Jelínek, Fráňa a partneři, s.r.o. www.hjf.cz Member of Czech Service International www.czech-service-international.com EUR 1 = CZK 26.770 according to the exchange rate fixed by the Czech National Bank as at 4 May 2017 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 27

BUSINESS

Tax System in the Czech Republic In its main features, the Czech tax system is similar to the systems of the other EU states and OECD

Payers of Personal Income Tax are natural persons who are Czech tax residents or tax non-residents. Tax non-residents are only liable to pay taxes on income arising from sources in the territory of the Czech Republic. The tax period is the calendar year. The tax base comprises all income, which the law divides into income from employment, income from business, income from lease, capital income, and other income. The basic rate is 15 %, which is augmented by a 7 % solidarity tax on above-limit income, i.e. income of natural persons exceeding the monthly amount of approx.

CZK 113 000/EUR 3 700 (four times the average monthly wage).

Payers of Corporate Income Tax are all types of juristic persons, depending on the address of their registered office or the place from which their activities are actually directed.

The tax period is usually the calendar year or the financial year. The tax base is the amount of profit, i.e. the difference between income and expenses relating to the particular tax period.

Income and expenses are ascertained from the financial accounts kept in compliance with Czech national accounting standards. Only tax eligible expenses, i.e. expenses incurred to earn and maintain the income, may be deducted from the income. The depreciation of assets is calculated individually. The rate is 19 %.

In 2016, the Act on the Electronic Registration of Sales (EET), came into force. The obligation 28 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

2. INDIRECT TAXES Value Added Tax has been harmonised with EU legislation. Currently, the obligation to register for VAT payment applies to persons with a turnover of more than CZK 1 million/EUR 37 001 per annum.

Persons with a lower turnover may register voluntarily. The rates are 10 %, 15 %, and 21 %.

As from 1 January 2016, VAT payers are required to file Control Statements with their VAT returns. At the same time, the obligation to file the extract from the Register for the purpose of Value Added Tax in relation to the delegation of tax responsibility has been abolished.

Excise Duty, too, has been harmonised with the corresponding EU directives. Excisable goods include mineral oils, alcohol, beer, wine, tobacco products, electricity, solid fuels (coal and coke), and natural gas.

Zdeněk Hrdlička Ministry of Finance www.mfcr.cz EUR 1 = CZK 26.770 according to the exchange rate fixed by the Czech National Bank as at 4 May 2017

USEFUL REFERENCES Ministry of finance: www.mfcr.cz Czech Tax Administration: www.financnisprava.cz OECD Tax Database: www.oecd.org/ctp/taxdatabase OECD Taxing Wages: www.oecd.org/ctp/tax-policy/taxing-wages.htm

Photo: PhotoCombo

1. DIRECT TAXES

to register sales electronically arose on 1 December 2016 for the first group of businessmen (in the area of catering and accommodation).

Other taxes payable in the Czech Republic include Road Tax, Real Property Tax and Real Property Acquisition Tax.

TECHNOLOGY OF PRODUCING NITROGENOUS, PHOSPHATIC AND MULTI-COMPONENT FERTILISERS Based on licenses of sister company

www.casale.ch

Ammonia Nitric acid Ammonium nitrate (Prilled / Granular / CAN / UAN) Urea (solution / granular) Phosphatic fertilisers Multi-component NPK fertiliser Aniline CASALE PROJECT a.s.

Sokolovská 685/136f | 186 00 Praha 8 | Czech Republic Phone: +420 277 012 111 info@casaleproject.cz

CASALE PROJECT a.s. is the leading Czech engineering company with worldwide scope of activity The company provides comprehensive services in EP and EPC, realising projects in construction of production units (both rehabilitations and construction of new plants) for export chemicals and fertilisers

Health, occupational safety and protection of the environment are always the highest priority

www.casaleproject.cz Daughter company of CASALE HOLDING

KEY SECTORS

Multitrans CZ s.r.o.

Comprehensive logistics solutions of 21st century Q Nonstop information service Q Express forwarding Q Road haulage and freight forwarding Q River and sea transport Q Warehousing Q Oversize load transport

ISO 9001 certification since 2004

30 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Czech Automotive Industry Steps Up Its Growth The automotive industry is one of the strongest sectors of Czech industry. With 25 % of total industrial production and export, it accounts for 7.4 % of the country´s GDP and ranks among the sectors providing the most jobs. In terms of the number of manufactured vehicles, it occupies fifth position among European manufacturers, thus ranking the Czech Republic among the world´s car-making giants with most of its output going for export.

The year 2015 marked another record in production, when 1 328 788 road vehicles were manufactured, 1 305 330 of which were motor vehicles and 23 458 trailers — to date, the highest annual output of vehicles in the history of the Czech Republic.

The January to May 2016 statistics show that the growth trend in production continued. In that period, a total of 597 018 road motor vehicles were manufactured, 12.9 % more than in the same period of the previous year, showing that the growth rate in this sector is rising steadily.

Three car makers participated in car manufacture in the Czech Republic in 2015: ŠKODA Auto, belonging to the VW Group and exporting its cars to more than 100 countries worldwide, accounted for 56.8 % of total output; HMMC Nošovice (Hyundai Motor Manufacturing Czech s.r.o.) for approximately 26.4 %, and TPCA Czech

Car manufacture in the first half of 2016 January – May 2016 Total number of vehicles

Production in CR

Increase(-decline) 2016/2015

Export

Production in CR

Home sales

Export

597 018

44 430 689 710

12.87 %

7.40 %

7.52 %

Passenger+ small utility

593 743

44 124 686 694

12.90 %

7.90 %

7.47 %

Lorries (cat.

N2+N3)

439

110

326

35.08 %

4.76 % 42.36 %

Buses (cat.

M2+M3)

1 764

162

1 652

0.51 %

-51.2 % 18.17 %

Motorcycles (cat. L)

1 072

34

1 038

16.40 %

-5.56 % 17.29 %

Source: Automotive Industry Association

Photo: archive firms ŠKODA AUTO a.s.

Home sales

(Toyota Peugeot Citroën Automobile) for 16.9 %. By the end of May 2016, a total of 593 743 vehicles had rolled off the lines, 12.9 % more than in the same period of 2015.

Bus manufacture in the Czech Republic is in the hands of two main companies – IVECO Czech Republic, with a share of 89.9 % of total output, and SOR Libchavy, with 8.8 %. The share of other domestic manufacturers in bus production was a mere 1.0 %. In the first five months of 2016, 1 764 buses were manufactured in the Czech Republic, 9 buses more than in the January-May period of 2015.

The TATRA Trucks manufacturer of heavy duty vehicles in 2015 manufactured 850 vehicles, 3.5 % more than in the previous year.

From January to May 2015, 439 vehicles were manufactured, 35.1 % (114 buses) more than in the same period of 2015.

The manufacture of towing and towed vehicles (category O3 and O4) in 2015 reached the figure of 1 790, the highest output for the past 7 years (since 2009). The manufacture of O1 and O2 trailers (AGADOS company) amounted to 21 668 (9.5 % less). The manufacture of this category of vehicles has been monitored since 1998 and this output is the second best since that year. In the first quarter of 2016, Agados, Panav, and Schwarzmüller companies manufactured a total of 5 301 trailers and semi-trailers of all categories in the Czech Republic, 1.8 % (94 vehicles) more than in 2015.

JAWA company, the traditional Czech motorcycle manufacturer, which exports its products to 24 countries, manufactured 1 072 machines in the first five months of 2016, 16.4 % more than in the January-May period of 2015. JAWA also makes speedway motorcycles for JRM Speedway.

Manufacturers of transport vehicles and components thereof are associated in the largest Czech industrial grouping, the Automotive Industry Association, which has 148 members.

The new trends in the automotive industry indicate that in future the industry will undergo rapid development with many changes that will give this sector a new face. It is to be expected that Czech manufacturers will continue developing this traditional sector of industry and that the automotive industry will remain an important part of the Czech economy.

Compiled on the basis of documents provided by the Automotive Industry Association C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 31

KEY SECTORS

Power Industry in the Czech Republic– Stable and Prospering Sector Inclusion INCLUSION AND EU REQUIREMENTS The power industry is one of the most important economic sectors of the Czech Republic.

Its strength derives not only from the years of continuous development, ingenious use of own resources, manufacture of power engineering equipment and the country´s self-sufficiency regarding electricity and heat production, based predominantly on domestic coal and uranium resources. As a member of the EU, the Czech Republic is bound by common standards and obligations, and is doing its best to meet them, for example by reducing the negative impacts of electricity production on the environment, supporting alternative and renewable energy sources and developing new energy-saving technologies. As one of a few EU member states, it can say that it is duly fulfilling its commitments.

A summary of this development and an evaluation and visions of this sector are contained in the updated State Energy Concept (ASEK) of 2015 valid for the next 25 years. Its principal aims are the maintenance and broadening of the diversity of energy production, which entails a balanced mix of primary energy sources, development of the net infrastructure in the Czech Republic in context with the Central European systems, intensification of international collaboration and integration of the electricity and natural gas markets in the region, including the creation of an efficient and operational common EU Energy Policy, support of research, development and innovation, support of the education system and, last but not least, raising the energy safety and resistance of the Czech Republic.

POWER STATIONS IN THE CZECH REPUBLIC In 2016, a total of 77.412 TWh of electricity was supplied into the distribution system. The largest share of electricity production was supplied by steam power stations (53.6 %) followed by nuclear power stations (29.4 %), steam gas power stations (5.2 %), gas and incineration power stations (4.4 %, photovoltaic power stations (2.7 %), hydroelectric power stations (2.6 %), pumped storage power stations (1.5 %) and wind power stations (0.6 %). Heat is generated in particular by cogeneration power plants as a side product of power stations; cogeneration is widely used and highly developed in the Czech Republic.

Underground coal mining in the Czech Republic is currently limited to the Ostrava-Karviná basin and is operated by the Ostravsko-karvinské doly (OKD) mining company; brown coal is 32 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

extracted from open-cast mines in the Most and Sokolov basins, and the used-up fields are gradually being recultivated.

Nuclear energy is produced by the Temelín and Dukovany power stations. The plan is envisaged to enlarge them in future by building new blocks. However, to date, no practical steps to start this process have been taken.

Although hydroelectric power stations generate only a low percentage of the total electricity output, they are scattered all over the country and include large pumped storage power stations, such as in Dalešice, Dlouhé Stráně, and Štěchovice II, through-flow hydroelectric power stations, e.g. Kamýk, Lipno, Mohelno, Orlík, Slapy, Štěchovice, and Vrané, and small hydroelectric power stations, such as Dlouhé Stráně II, Hněvkovice, Kořensko, Lipno II, and Želina.

RENEWABLE ENERGY SOURCES Under conditions in the Czech Republic, renewable energy sources include water, wind, solar radiation, biomass and biogas, environmental energy used by heat pumps, geothermal energy and liquid biofuel energy. Although, from the electricity generation point of view, they do not play any decisive role, their importance rests on their environmentally friendly approach and the potential of their future usage.

The possibilities of making use of these sources are not too significant in the Czech Republic – those having the greatest potential are biomass burning power stations (of the total energy output from renewable energy sources, biomass accounts for more than 80 %), whose operation is supported by fixed minimum energy purchase prices. Biomass burning power stations have the most promising future according to predictions. Sviadnov power station is another plant burning biomass besides the ČEZ company. It incinerates biomass in several of its power stations either separately or together with coal.

In spite of this, the proportion of renewable energy sources has increased significantly within the Czech energy supply system. In 2016, their share of energy supplied into the network accounted for approximately 13 % (in comparison with about 5 % in 2006). The National Renewable Energy Sources Action Plan envisages that in 2020 the proportion of energy generated from renewable sources will increase to 15.3 % of gross final energy consumption and to 10 % of gross final consumption in transport.

Development and structure of gross electricity production 200 000 Total GWh Nuclear energy GWh

150 000

OZE GWh Brown coal GWh

100 000

Natural gas GWh Black coal GWh

50 000

Other fuels GWh Other gases GWh

0 2010

2015

2020

2025

2030

2035

2040

Note: other gases – coke oven, blast furnace, degassing and other gases, other fuels – oil products, industrial waste and alternative fuels, municipal solid waste (non-renewable), waste heat Source: Ministry of Industry and Trade

MAIN SUPPLIERS IN THE MARKET

IMPORT OF COMMODITIES

The largest energy player in the Czech market is the ČEZ group, one of the most important players on the European scale. In the Czech Republic, it operates 10 coalfired power plants, 2 nuclear plants, 37 hydroelectric (of which 3 pumped-storage power plants), 1 steamgas plant, 13 photovoltaic plants and 2 wind plants, 3 plants burning biomass, and 1 biogas plant. ČEZ generates nearly three-quarters of the total electricity output in the Czech Republic. The second largest player in the Czech energy market is Innogy Energie, s.r.o. (formerly RWE Group), focusing on gas and electricity transport, distribution, sales, and energy services. Next is E.ON, which sells and distributes electricity and gas and provides energy services. The group´s portfolio also comprises smaller power generating facilities. Another company with a similar structure is Pražská energetika, operating on the territory of the capital city of Prague. It also invests in renewable sources outside its own distribution area. More than 100 independent manufacturers generate and distribute energy in the Czech Republic in addition to the big companies.

The Czech Republic has limited crude oil and natural gas resources, especially in South Moravia, where they are extracted by the Moravské naftové doly mining company.

These resources, however, are too poor to meet demand, so that the country is dependent on their import.

Oil is transported to the Czech Republic from two directions. From the east, it flows from oilfields in Russia by the Druzhba (Friendship) pipeline and, from the west, CR is connected by the Ingolstadt-Kralupy nad Vltavou-Litvínov (IKL) pipeline to the TAL pipeline, which conveys oil from the port of Trieste. Between 1999 and 2003, the Druzhba pipeline underwent modernisation and its technical standard now compares with that of IKL.

ELECTRICITY EXPORTS A considerable quantity of electricity flows from the Czech Republic across its borders, mainly to Austria and Slovakia, most of it generated by the Temelín and Dukovany nuclear power stations. In 2016, net electricity exports amounted to 10.974 TWh.

STABILITY OF POWER SUPPLY IN THE CR AND THE COUNTRY´S ATTRACTIVENESS FOR FOREIGN INVESTORS From the point of view of foreign investors, the Czech Republic is a very attractive country with regard to power generation and supply, both in terms of legislation and future development. Greater investment in power generating plants, cross-border facilities and protection against overflows from renewable sources, especially from Germany, are to be expected. Investment is also planned in the power distribution network and the completion of the North-South backbone gas infrastructure. The State Energy Concept parameters and the plan to regulate the networks create good conditions for a guaranteed return of invested capital.

STORAGE?

RACKS? • Design of the optimal storage space usage free of charge • Supply of modular adjustable rack systems • Pallet racks – fixed, mobile • Gravity pallet flow racks • Shelving racks – fixed, mobile • Multi-level shelving mezzanine • Cantilever racks • Steely platforms • Materials handling equipment

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Contact: PROMAN s. r. o.

Za Pivovarem 830 537 01 Chrudim Czech Republic

Tel.: +420 469 699 570 +420 469 622 280 Fax: +420 469 622 337

E-mail: proman@proman.cz http://www.proman.cz

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 33

KEY SECTORS

Czech Food Industry – Hidden Potential Although the food industry is not the core of Czech exports, certain features in the development of this sector indicate its growing export potential.

This is largely due to stricter quality control, respect for tradition, use of modern research and production technologies, and, last but not least, the development of product, technological and organisational innovations. We are persuaded that the Czech food industry has a lot to offer the world.

EXPORTS IN FIGURES In 2014, Czech food exports were worth CZK 108.1 billion and the export of beverages CZK 16.3 billion.

In 2015, the value of Czech agrarian exports rose by 11.5 % (CZK 20.7 billion) year on year. In the first three quarters of the year, the figures indicated a meaningful improvement of the year-on-year balance; the last quarter, however, showed a downswing. Agricultural and food products in 2015 accounted for 6.3 % of total Czech exports and imports, a moderate increase year on year (especially on the part of exports). In terms of the commodity structure, the year-on-year improvement of the balance of Czech foreign trade was due in particular to higher sales of barley (by CZK 1.3 billion) and rape seed (CZK 1.1 billion). In these commodities, the export values were at their maximum level.

Traditionally, the strongest trade partners of the Czech Republic are Germany, Poland, Slovakia, and Austria, and, before the imposition of the import sanctions, also Russia.

EXPORT ITEMS The largest volumes of exports in this sector are those of grain, milk powder, malt, coffee, rape oil, feeds, bakery goods, chocolate and cocoa products, food preparations, beer, sugar, cheese, and cottage cheese.

Hops is a major export item on the long-term basis. Its exports in 2014 were worth a full CZK 911 million. One year later, however, the crop was severely affected by the extremely dry summer and its exports dropped to CZK 877 million. Currently, the dominant area is the Asian market, where, besides Japan, trading is being promoted with China. Within the EU, most of the hops exports go to Germany and exports to Belgium and Italy are steadily increasing. Trading with the USA is also on the upswing.

FOOD PROCESSING AND AGRICULTURAL MACHINERY It is interesting to note that food processing as well as agricultural machines are export 34 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

articles that are much in demand. This concerns in particular equipment for bakeries, breweries, mini breweries, dairies, and cheese-making equipment. The principal destinations for these exports were Belarus, Russia and Georgia, followed by Albania, Bulgaria, Kazakhstan, Mexico, Mongolia, Poland, Uruguay, Ethiopia, and Cuba.

CZECH PRODUCERS Czech food producers are associated in the Federation of the Food and Drink Industries founded in 2001. Today it has more than 170 members, whom it represents in negotiations with Czech state administration bodies and EU organisations.

The priorities of this institution in the area of marketing are clearly given: support of the quality of products, regional brands, and local manufacturers. This aim is assisted by the award of the KLASA Regional Food Product and Czech Product labels, guaranteed by the Food and Drink Industries Federation of the Czech Republic — labels guaranteeing the quality of food products.

This aim is also supported by the certification of exceptional products, e.g. EU country of origin marking (e.g. Czech caraway, Žatec hops), geographical designation (Třeboň carp, Olomouc cheese) and guarantee of traditional specialities (“špekáček” sausage).

Export of selected commodities between 2013 and 2015 Year 2013 Commodity Wheat

CZK million 8.105

Year 2014

Thous. tonnes 1501.3

CZK million 11.484

Year 2015

Thous. tonnes 2350.3

CZK million

Thous. tonnes

11.554

2455.4

Rape oil

7.523

330.9

8,.74

406.0

9.877

505.4

Animal feeds

5.974

294.0

7.619

344.1

8.119

399.7

Bakery products

6.855

118.8

7.203

114.7

8.036

147.9

Milk and cream

7.487

702.0

8.587

768.4

7.715

848.8

Food supplements

5.921

294.0

6.446

59.0

7.169

64.2

Beer

5.024

367.3

5.548

382.0

6.043

429.4

Sugar

4.845

322.6

3.831

301.3

3.658

330

Source: Foreign trade database of the Czech Statistical Office, February 2016

EXPECTATIONS, AIMS Currently, the Czech food industry is pursuing efforts towards revival and progress after the recent period of stagnation. Its greatest aim is for this trend to continue and to gather strength, and for Czech products, technologies and products to address international markets on a larger scale so that Czech quality may become a generally recognised fact.

Finally, let us mention firms which have already made a name for themselves and have become closely linked with the Czech Republic as a country: Pilsner Urquell, Madeta (dairy produce), Karlovy Vary (Karlsbad) mineral waters, Hamé (chilled and non-perishable foods).

Compiled on the basis of materials provided by the Czech Food and Drink Industries Federation and the Ministry of Agriculture

Fresh Fruit and Vegetables

from Your Reliable Partner in Central and Eastern Europe

ČEROZFRUCHT s.r.o., P.O. Box 137, Na Výsluní 765/23, 100 00 Praha 10, Czech Republic Phone: +420 283 001 111, Fax: +420 283 001 222, E-mail: ceroz@ceroz.com

www.ceroz.com

KEY SECTORS

Your PARTNER in n investment in nvestment constructio construction on Design, production, implementation and service of clean rooms for: I Healthcare I Electrotechnics I Pharmacy I Optics I Precision engineering I Research and Development I Automotive (3 5RĂŚQRY D V I %RĂŚHQ\ 1Ä?PFRYp I 5RĂŚQRY SRG 5DGKRäWÄ?P I I HS#HSUR]QRY F] I ZZZ HSUR]QRY F]

CUSTOMISED MASS SERIES

METAL MANUFACTURING

member of INDUSTRIAL SYNERGY group

We have a long history in the area of metal manufacturing We offer: design, development, testing and manufacture of metal products completed with plastic or wooden parts, assembly, packing and delivery

KOVONA SYSTEM, a.s.

PrĹŻmyslovĂĄ 2007 737 01 ÄŒeskĂ˝ Těťín Czech Republic

36 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

www.kovona.cz

Czech Engineering – Tradition and Future Engineering is an industry of key importance for the Czech Republic, both as regards GDP creation and the balance of trade and employment. Competitive engineering is what interests foreign investors; therefore the support of research and development is of decisive importance for maintaining and raising its standards.

In the Czech Republic, this sector comprises the manufacture of a wide range of machines, including parts and accessories which find their use in most branches of the manufacturing industry and other sectors, such as agriculture, transport, forestry, metalworking, metallurgy, mining, the textile, paper and food industries, and construction.

TRADITION

ing years. In 2015 engineering exports were worth EUR 79 billion, a 108.9 % year on year index.

Engineering, like most of the other branches of the Czech manufacturing industry, is an export-oriented sector, which has been showing a favourable balance of trade on a long-term basis (for more than ten years, with a surplus of EUR 21.6 billion in 2015). With regard to the territorial structure of Czech foreign trade, the unequivocally largest trade partner of the Czech Republic is Germa-

Export of machinery and transport equipment (SITC 7)

Engineering in the Czech Republic is continuing the long tradition, when in the period between the two world wars, Czechoslovakia was one of the world´s ten most advanced engineering countries.

Over the more than 150 years, a large number of radical changes have taken place in this area, both regarding technological safety standards and the structure of production, and the business base. An essential change took place after 1989, when engineering companies had to cope with the unfavourable situation resulting from the loss of their traditional markets, keen competition from foreign firms (with strong capital backing and know-how) entering the Czech market and changes of the ownership structure.

Period

Stat. value USD (thous.)

Stat. value USD (%)

2005

31 900 419

116.0

2006

40 303 473

126.3

2007

48 464 027

120.2

2008

53 370 467

110.1

2009

43 382 294

81.3

2010

54 750 070

126.2

2011

64 089 822

117.1

2012

66 173 944

103.3

CURRENT SITUATION

2013

65 829 454

99.5

In the past decade, within the framework of the manufacturing industry and the entire Czech economy, engineering grew steadily, with the exception of the year 2009, when, owing to the global economic crisis, exports in this sector declined by nearly 20 %. Already in 2010, however, the market showed a revival and the value of machinery and transport equipment exports rose to EUR 54.8 billion, a 126.2 % increase year on year. This trend continued in the follow-

2014

72 548 796

110.2

2015

78 998 978

108.9

Source: Czech Statistical Office

ny, followed by the United Kingdom, France, Slovakia, Spain, and Belgium.

The Czech Republic is the only state in Central and Eastern Europe (CEE), which is a member of the prestigious European Committee for Cooperation in the Machine-Tool Industry (CECIMO).

Photo: www.freeimages.com

FUTURE PROSPECTS A feature of the engineering industry is its relatively high sensitivity to economic cycle fluctuations. The state of the Czech economy, the same as that of our largest foreign trade partners, is a factor that directly affects demand. Although Czech engineering has extricated itself from the consequences of the global crisis relatively quickly, it is intensively striving to orientate its manufacture towards higher value-added products, based on new achievements in engineering research and new patents, often benefiting from foreign research and development institutions setting up their branches in the Czech Republic.

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 37

KEY SECTORS

Czech Medical and Sanitary Ware Conquers the World One of the sectors scoring remarkable success is the export of a wide range of sanitary materials and hospital equipment.

The success of the Czech manufacturers of these products is based on the fact that the Czech Republic is a country with an advanced healthcare system, covering all branches of modern medicine.

EXPORTS UP BY 60 % Czech medical and sanitary ware exports have been growing dynamically, especially in the past five years. This is shown by EGAP (Export Guarantee and Insurance Corporation) statistics.

Formerly, this corporation used to insure the export contracts of Czech firms supplying hospital equipment to less developed and risk-involving countries in the order of tens to hundreds of millions of Czech crowns. In the past five years insured exports of medical and sanitary ware to those areas were worth nearly CZK 6 billion (EUR 222 million). The growth is even more impressive when added to this are the export of equipment made by Czech manufacturers to EU states, plus the export of all sanitary and medical equipment. This is attested to by the statistics of the Czech Ministry of Health. From 2010, when CZK 15.8 billion (EUR 584 million) worth of sanitary and medical equipment was exported by Czech firms, their exports rose by nearly 60 %, to CZK 25.2 billion (EUR 932 million) in 2015.

FULL RANGE OF SANITARY AND MEDICAL PRODUCTS Several Czech suppliers of sanitary and medical ware and equipment have become established in highly competitive foreign markets in the past few years. Their success is based on three factors: research, leading to the achievement of high technical parameters, design, which helps to 38 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

EMPHASIS ON QUALITY Many of the successful Czech exporters are members of the Association of Manufacturers and Suppliers of Medical Devices. The Association brings together more than 100 leading Czech firms operating in this sector, whose annual turnover is up to CZK 17 billion (EUR 629 million) and whose exports account for approx. 35 % of their output.

Members of the Association collaborate with a number of research laboratories of Czech universities, for example the Czech Technical University in Prague, the Technical University in Brno, Tomáš Baťa University in Zlín, and Masaryk University in Brno. This testifies to the care given by Czech manufacturers to the quality, technical standards, and competitiveness of their products.

EUR 1 = CZK 26.770 according to the exchange rate fixed by the Czech National Bank as at 4 May 2017

Photo: www.freeimages.com

The Czech healthcare system prides itself on a wide network of ambulatory healthcare facilities, hospitals, and sanatoria run by the state as well as by private persons. With regard to sanitary materials, medical devices and hospital equipment, Czech firms are among the world´s top manufacturers and suppliers. Each year, their products go to a number of countries worldwide. Besides the European Union, their goods are exported to the Russian Federation, countries of the Commonwealth of Independent States, Southeast Asia, the USA, and recently also to Africa.

Czech firms primarily score success with their high added value products and equipment involving a high proportion of research work, electronics, and informatics.

sell the products, and quality, which signifies the products’ reliability. All these criteria are met by, for example, medical instruments and traumatological implants, rehabilitation and transport equipment, medicinal and technical gas distribution systems, sterilisers, cobalt irradiators, anaesthesia equipment and positional hospital beds.

PHARMACEUTICAL COMPANY Q INFUSION

AND DIALYSIS SOLUTIONS Q TABLETS Q SACHETS Q POWDERS Q SYRUPS, DROPS Q FOOD SUPPLEMENTS

AND COSMETICS Q LABORATORY ANALYSIS

www.bio-medica.eu

Q AND MORE ...

Since 1992, ERILENS Ltd. has been helping people with limited mobility to take part in everyday life.

We deal with the production of locomotion aids such as forearm crutches, underarm crutches, walking sticks and other medical equipment. In our products, we emphasise quality, functional properties and design. Therefore, our experienced development and production team follows the current trends and the needs of our customers.

Locomotion aids: • • • • •

ERILENS s.r.o.

Papírenská 114/5 160 00 Prague 6 CZECH REPUBLIC

Jana Dupalová

forearm crutches underarm crutches child crutches walking sticks accessories (anti-slip tips, grip covers, straps, holders…)

Other medical equipment: • • •

finger splints irrigators anti-decubitus pads

Export Manager e-mail: jdupalova@erilens.cz phone: +420 777 336 912

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 39

Czech Nanotechnology Enters Big Business Recently, the Czech industrial tradition has been acquiring a new dimension. This happened with the arrival of nanotechnology, where the combination of organic and inorganic components gives rise to new materials which find a use in a number of sectors, including medicine, the textile industry, water and air treatment, and electrical battery manufacture.

INVESTORS AND THE NEED TO EXPORT In the Czech Republic, more than 15 private research companies and some 84 manufacturers use nanotechnologies in their production.

In addition, there are specialised centres emerging in this country, which firms can consult to become acquainted with the new scientific findings. Twenty-six workplaces of the Czech Academy of Sciences, 37 university faculties and 9 research organisations financed by the State are involved in basic research in different nanotechnological areas in the Czech Republic. While being the cradle of nanotechnology research and its practical application, the important future issue is to arouse the interest of investors in neighbouring states and to find opportunities for Czech firms to export their nano products.

This is all the more important, as firms in about 70 regions of the European Union are focusing on nanotechnology research. Nanotechnologies 40 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

WHAT CZECH FIRMS HAVE ACHIEVED

According to the Nanotechnology Industry Association of the Czech Republic, this technology is not a mere innovation. It is actually a technological change, whereby man can manipulate matter at a molecular level across all sectors.

The portfolio of Czech nanotechnology firms is quite broad. It includes, for example, the manufacture of photocatalytic paints with titanium oxide nanoparticles. This practically transparent paint has an extraordinary ability – to clean the ambient air by removing viruses, bacteria, toxins and cigarette smoke from it. This principle could be used to reduce air pollution in cities and industrial agglomerations.

Recently, a Czech firm filed a patent application for an electrically conductive nanofibre. Its special feature is that, under electrical current, it acquires the capacity to kill viruses and bacteria in contaminated water. The material can be used for different purposes and in different areas, including the military and healthcare spheres, and could be useful in third world countries, where clean water is scarce.

NANOTECHNOLOGY STARTS A REVOLUTION IN MEDICINE A real breakthrough is the use of nanotechnologies in medicine, where unheard-of possibilities are opening up. They can be used in diagnostics, drug distribution throughout the body and the treatment of patients with the aid of special nano instruments. And there is more than that! Nanomedicine moves in the order of billionths of a metre, which is the size of the particles – molecules – which make up the human body, the DNA helix and also a large number of dangerous viruses. Nanotechnology, by providing a deep insight into the biological processes, offers a new means of assisting in the understanding of the causes and mechanisms of diseases.

Czech firms are keeping pace in this area and there are good prospects that, together with the research laboratories, they will be able to offer many more products that will find their way into the world, in spite of keen competition from laboratories in the USA, Japan, and China.

Photo: www.freeimages.com

In 2004, the moment when the Technical University in Liberec, in collaboration with Elmarco firm, was first in the world to develop the industrially usable nanofibre, marked the beginning of dynamic progress in this area.

The physical properties of the microscopic particles, 1 000 times thinner than a human hair, have significantly influenced the business of a number of Czech firms. The absolute majority of firms using nanotechnologies in their production are global companies doing business on an international scale and seeking trade partners in other countries.

are becoming an important instrument of national economies in their efforts to gain the competitive edge.

www.strojobal.eu Strojobal a.s. is a supplier of industrial ammonia refrigeration systems, industrial air conditioning systems and heat pumps, including control systems and automation, especially for meat processing plants, dairies and breweries.

Our offer comprises the full range of services, from design and engineering to final deliveries and assembly of refrigeration circuits, air conditioning systems and heat pumps, all ready to operate.

Strojobal a.s. | Zeyerova alej 1388/30 | 162 00 Praha 6 | Czech Republic Telephone: +420 775 567 715 | e-mail: info@strojobal.eu

KEY SECTORS

Agricultural Engineering Increasingly Participates in International Trade Agricultural machinery is a traditional Czech export commodity.

The character of machines has radically changed over the past 30 years and modern Czech agricultural machinery compares favourably with the technologically most demanding sectors using the most advanced materials and space technologies. Sophisticated production has become a regular feature of Czech manufacturing plants. As their top priorities, firms promptly meet demand, introduce new models and high-quality manufacture at prices readily standing the test of keen international competition.

FOREIGN TRADE

Czech firms increasingly participate in international trade. Until 2008, in practical terms their import of foreign machinery grew at approximately the same rate as that at which Czech manufacturers managed to place their products in foreign markets. In 2009 and 2010, both Czech exports and imports dropped by some 30 % in comparison with the previous period. In 2011, foreign trade showed a revival and this trend continued in the following years. In 2015, the turnover in agricultural machinery amounted to more than CZK 33 billion, with exports and imports remaining at approximately the same level (CZK 16 billion, CZK 17.5 billion respectively). In other words, in terms of Czech crown denomination, the volume of imports is comparable with the volume of exports.

Photo: Zetor archives

There are about 100 manufacturers of agricultural and forestry machinery in the Czech Republic. The A.ZeT Agricultural and Forestry Machinery Association has 44 members, including all the major domestic manufacturers. The overall production of the member firms amounts to some CZK 19 billion (approx. EUR 700 million), which accounts for 80 % of the total production in the Czech Republic. Of the overall Czech export of this commodity worth CZK 15.9 billion (approx. EUR 585 million), machinery made

by A.ZeT members accounts for more than 85 %. Firms manufacturing agricultural machinery employ approximately 10 000 people, about one-third of the number the sector employed 20 years ago.

42 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

The largest trade partners of the Czech Republic are its neighbours, Germany, Austria, Slovakia, and Poland. The structure of mutual trade with those countries naturally differs. For example, the Zetor tractor is a traditionally popular export item in trade with Poland, Scandinavia, and the Balkan countries. A good sign is that a number of manufacturers have renewed their trade contacts with countries of the former Soviet Union – Russia, Ukraine, and the Baltic states –

concept, created in collaboration with the renowned Pininfarina design company, will soon be applied to all Zetor model series.

THE QUALITY OF CZECH PRODUCTS COMPARES WELL WITH EUROPEAN STANDARDS The high quality of Czech products is borne out by the fact that a large number of machines and equipment developed in Czech factories can be seen in the fields of a number of other countries operating under the flags of the Czech manufacturers´ foreign trade partners.

Development of foreign trade – manufacture of forestry and agricultural machinery (CZK millions) 20 000

15 000

THE STRENGTHS OF THE SECTOR, TRENDS AND EXPECTATIONS

10 000

izvoz source: Ministry of Industry and Trade CR

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

0

2000

5 000

uvoz in million CZK, 1 EUR=27.50 CZK

and have found outlets in the new EU member countries of Romania and Bulgaria.

The most important export items are fodder crop harvesting machines, which include combine harvesters, cutters, mowing machines, hay raking and turning machines, etc. These machines account for about 40 % of Czech agricultural machinery exports, followed by tractors with a 22 % share, and with soil preparation and cultivation machines ranking third.

It is extremely satisfying that Czech-made Zetor tractors have found their way back to decisive European markets. Their manufacturer, Zetor Tractors, a.s., exports nearly 90 % of its output and sells the rest in the Czech Republic and Slovakia. Its latest hit has been the presentation of its newly designed tractor named “Zetor by Pininfarina”, at international trade fairs in Hannover, Germany, and Brno. The new

A competitive advantage of Czech agro engineering is the structure of the manufacturing firms. In most cases, they are small and medium-sized enterprises capable of reacting flexibly to demand and, at the same time, being in the position to prepare machines meeting the customer´s special requirements, even in serial production.

Czech agricultural engineering keeps pace with farmers’ requirements for higher performance of the machines and their friendlier operation, the result of which is what technicians call precision agriculture. They are beginning to use the term ‘Agritech 4.0’, which implies the use of ICT not only in machinery and their connection to an intelligent data network using precision navigation systems, but also monitoring and controlling whole working operations and systems.

In all these aspects, Czech manufacturers are competitive even in international comparisons.

Dušan Benža Secretariat Director, A.ZeT Agricultural and Forestry Machinery Association C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 43

KEY SECTORS

The Czech Republic – Tourist Destination That Will Never Disappoint The Czech Republic is a country marked for its busy tourist traffic. A country of ten million, it is a peaceful and safe destination with a large number of historical sights, picturesque scenery, world renowned watering places, luxury hotels and leisure time facilities. In recent years, the Czech Republic has also become known as an excellent destination for congress tourism, with suitable facilities, especially in big cities.

CONGRESS TOURISM The Czech Republic is one of the 30 countries worldwide considered as most suitable for holding congresses, with the capital city of Prague ranking among the world´s 15 most popular destinations. The Czech Republic has earned this recognition, among other things, for the success of several conferences of global significance hosted by Prague in the past few years. Stable economy, good strategic position, favourable climate, many tourist attractions and the high quality of services provided to guests in the congress premises are factors for Prague being labelled as an attractive destination. The city offers sojourns in modern hotels with conference rooms of various sizes, fitted with up-to-date facilities. Prague´s Congress Centre recently underwent extensive modernisation, and Václav Havel International Airport, which daily operates a large number of international flights by renowned air companies, including low budget flights, has extended its services.

SPA RECREATION An important segment of tourism is wellness and the spa industry. Many parts of the Czech 44 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

FOR HEALTH AND RELAXATION The change in lifestyle in recent years has led to an extension of the standard offer of spa treatment, with the addition of new forms of relaxation, regeneration and anti-stress programmes suitable for businessmen and managers, who need relaxation after their exhausting work. These special programmes, combined with various accompanying leisure time activities (golf, tennis, fitness, cycling, etc.) are offered by some 40 spa resorts in the Czech Republic.

Golf in particular figures increasingly in the favourable tourist statistics, especially as numerous high-quality golf courses are located in beautiful natural and historical surroundings. There are more than 130 golf clubs in the Czech Republic, where guests have more than 70 courses at their disposal. The best of them, offering the highest standard of services, can be found in the neighbourhoods of the capital city of Prague, in the West Bohemian spa triangle in the vicinity of Karlovy Vary, and in North Moravia.

Mariánské Lázně

Photo: CzechTourism

In the first half of 2016, the country was visited by 13.6 million tourists, a 10.3 % growth year on year. During that period, the income flowing into the treasury from tourism was worth CZK 73.6 billion (EUR 2.7 billion), 5.3 % more than in the previous year, according to the Czech National Bank balance of payments statistics.

Most tourists come to the Czech Republic for holidays (65 %), followed by visitors coming on business (16 %) and to visit relatives and friends (12 %). The favourable development of tourism in the first half of 2016 was also supported by other factors; apart from great sporting and cultural events, a very important reason for coming to this country is safety: this year, the Czech Republic was declared the 6th safest place in the world by the Global Peace Index of countries. Tourism accounts for 3 % of the country´s gross domestic product and employs more than 230 000 people.

Lands are extremely rich in mineral springs, in the vicinity of which a number of famous spas ranked among the best in the world have been developed. The combined work of Man and Nature has gained world recognition for the spas, which have become an important healthcare and economic asset to the country. The use of the natural curative resources, baths, mineral water, and spa treatment has a long tradition. Although spas can be found in all regions across the Czech Republic, the most significant balneological treatment facilities are to be found in the Karlovy Vary (Karlsbad), Ústí, South Bohemia, Hradec Králové, Zlín, and Olomouc Regions.

BRINGING LIFE

TO PLASTICS

MASTERBATCH for food packaging

Manufacturer of nets for all kinds of sports GOAL NETS and safety nets for football • handball • volleyball • basketball badminton • tennis • floorball • ice hockey • golf • baseball • skiing MANUFACTURER AND SUPPLIER OF ROPE PRODUCTS FOR CHILDREN´S PLAYGROUNDS AND SPORTS FIELDS:

THE FIRM SUPPLIES ITS PRODUCTS FOR THE HIGHEST-LEVEL INTERNATIONAL COMPETITIONS IN

gymnastics and jute jump ropes, climbing ropes, climbing ladders and pyramids, hammocks.

volleyball, beach volleyball, tennis, ice hockey. (Davis cup, European volleyball championships, Beach volleyball world cup, World ice hockey championships, etc.)

MANUFACTURER AND SUPPLIER OF NETS FOR INDUSTRY, CONSTRUCTION AND THE GARDEN: container nets, railway wagon nets, rope safety ladders, safety nets, plant protection netting, decoration nets, aviaries, etc.

MANUFACTURER OF SAFETY NETS FOR DIFFERENT USES AND OF DIFFERENT SIZE. Quick and reliable delivery.

46 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

SPORTS NETS ARE MADE ACCORDING TO INTERNATIONAL RULES AND STANDARDS. The items for children´s playgrounds meet safety standards. The safety nets meet the EN 1263-1 international safety standard.

THE FIRM EXPORTS 35% OF ITS OUTPUT TO MOST OF THE EUROPEAN COUNTRIES (Germany, Austria, Switzerland, Finland, Russia, Estonia, Slovakia, Romania…)

Kv. Řezáč, s.r.o.

U Svratky 780 | 666 01 Tišnov Czech Republic Phone/Fax: +420 549 410 084 549 410 085 | 549 410 350 E-mail: kvrezac@kvrezac.cz

www.kvrezac.cz

STYL, cooperative for chemical production Specialist in household chemicals & the largest Czech manufacturers of solid WC deodorants STYL was founded in 1950 as a manufacturing cooperative. Its chemical production was launched in 1962. In 1969 the cooperative started making toilet rim blocks and after 1990 the firm´s production focused exclusively on household chemicals and cosmetics. Currently its production programme comprises a wide offer of toilet hygiene products.

Basic classiďŹ cation of products: Q Toilet hygiene Q Toilet rim blocks Q Toilet cistern blocks Q Urinal deodoriser blocks Q Toilet gels Q Toilet cleaners Q Other liquid toilet products Q Kitchen cleaners Q Bathroom and shower cleaners Q Rust and scale cleaners Q Stainless steel and ceramic glass cleaners Q Carpet cleaners Q Silver cleaners Q Other household chemicals

STYL is one of the Czech leading manufacturers of private brands for multinational supply chains operating on the European market. The manufacture of private brands accounts for more than 50 % of its output.

INSTITUTIONS

Institutions

CONFEDERATION OF INDUSTRY OF THE CZECH REPUBLIC The Confederation is the largest non-governmental and independent alliance of employers in the Czech Republic, representing the country´s dominant industrial and transport sectors. It brings together 28 sectoral associations and 134 member firms and represents more than 10 000 member entities with more than 800 000 employees.

Its mission is to defend the common interests of its members and to influence the government´s economic and social policy, with the aim of creating the optimum conditions for doing business, which, based on respect for the ethical principles of conducting business activities, will lead to higher competitiveness of its members and the long-term sustainable prosperity of Czech society.

The Confederation defends and coordinates the interests of its members, especially in the Council for Economic and Social Agreement, which is a platform for negotiations between the government, employers, and trade unions on essential political, economic, and social issues.

The Confederation supports efforts to establish business and investment collaboration between Czech and foreign business entities in the form of business missions, conferences, bilateral and multilateral negotiations, and the participation of its members in trade fairs, exhibitions, and professional seminars.

The Confederation formulates and promotes the interests of employers and businesspersons operating in the Czech Republic in European and international organisations, in particular as a member of the Confederation of European business (BUSINESSEUROPE) and within the framework of the OECD Business and Industry Advisory Committee (BIAC). On the basis of agreements, it cooperates actively with partner associations in industry, chambers of commerce and other economic institutions in foreign countries.

CZECH CHAMBER OF COMMERCE The Czech Chamber of Commerce is a body whose task, laid down by law, is to pursue and protect the interests of the entrepreneurial community, secure its needs and support its development. It consists of a network of regional chambers, unions and professional and trade associations on a national scale. Therefore, its broad membership base can utilise various specific services, including international support undertakings and programmes.

Although the membership of the Chamber of Commerce is not compulsory, it provides its services – the standards of which are comparable with those of the chambers of commerce of other European Union member states – to both its members and non-members. These services include:

l Organisation of international and bilateral contact events of firms (outgoing and incoming missions)

l Organisation of business missions accompanying Czech state representatives on their official visits to foreign countries

l Organisation of visitor missions of businessmen on the occasion of Czech official participation in trade fairs and exhibitions abroad.

l Organisation of missions of foreign investors for small and medium sized Czech enterprises

l Organisation of seminars, workshops, business forums and similar undertakings oriented thematically and territorially

l Organisation of participation in EU programmes and activities l Seeking out trade partners in the Czech Republic and in other countries, consulting in the area of foreign trade

l Active support on entering foreign markets l Securing export certification l Foreign trade analyses l Publication of offers and enquiries of foreign firms on the Chamber´s websites

Hospodářská komora České republiky Svaz průmyslu a dopravy České republiky Freyova 948/11, 190 00 Praha 9 Phone: +420 225 279 111 E-mail: spcr@spcr.cz

Florentinum Na Florenci 2116/15, 110 00 Praha 1 Phone: +420 266 721 300 E-mail: office@komora.cz

l More at www.spcr.cz l

l More at www.komora.cz l

48 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 49

INTERNATIONAL CHAMBER OF COMMERCE IN THE CZECH REPUBLIC The International Chamber of Commerce (ICC) was founded in Paris in 1919. Its mission is to support world trade. Today it associates thousands of companies and associations from more than 130 countries. ICC CR has been providing services for more than 15 years.

Prestige. Through national ICC committees businessmen convey their interests, opinions, and views to the representatives of the highest-ranking bodies, institutions, and governments, including UN, EU, WTO and OECD, where ICC has the highest-level advisory status.

Rules. ICC has unswerving authority to create rules according to which international trade is conducted. The rules are used in everyday practice and have become an inseparable part of international trade all over the world. Examples: Incoterms(R) 2010, rules of banking practice, sample international contracts.

Partnership. ICC provides a wide range of services, including the administration of arbitration proceedings in the framework of the ICC International ICC Arbitration Court in Paris, organises educational events, provides consulting services, and creates opportunities for meetings with foreign trade partners.

Territorial encounters. The aim of these events is to support Czech economic diplomacy, create business and investment opportunities for Czech exporters, help promote the diversification of Czech exports and set up useful business contacts.

Professional courses. Subjects associated with conducting international trade, in particular: Incoterms(R) 2010, bank guarantees and Uniform Rules for Demand Guarantees (URDG) 758, documentary letters of credit and Standbys, and international purchase contracts.

ICC CR, in collaboration with the Ministry of Industry and Trade, has created the documents “International Competitiveness Strategy of the Czech Republic for 2012-2020” and “Export Strategy of the Czech Republic for 2012-2020”.

THE CONFEDERATION OF EMPLOYERS´ AND ENTREPRENEURS´ ASSOCIATIONS OF THE CZECH REPUBLIC l associates seven representative employer associations in the area of construction, textile industry, small and medium sized businesses, cooperative enterprises, agriculture, mining and oil industries, transport, woodworking industry, education, healthcare, culture, and social services; l represents more than 22 thousand member entities with more than 1.3 million employees; l supports the specific interests of its members in the area of legislation and other spheres; l formulates common business and employer interests of its members and pursues them in collaboration with the state authorities concerned, other employer organisations and trade unions, particularly in different forms of consultations with the government; l cooperates with the Czech Confederation of Industry, the Czech Chamber of Commerce, the Czech Agrarian Chamber, the Czech Confederation of Commerce and Tourism, the Czech Cooperative Association and other organisations; l is one of the social partners representing the business sector in the Council of Economic and Social Agreement (Tripartite Body).

The Confederation includes the following associations and unions: 1. Association of Textile, Clothing and Leather Industry 2. Association of Businessmen and Tradesmen of the Czech Republic 3. Association of Czech and Moravian Manufacturing Cooperatives 4. Association of Building Entrepreneurs in the Czech Republic 5. Union of Employer Associations of the Czech Republic 6. Employer Union of Mining and Oil Industries 7. Czech Agricultural Union 8. Union of Czech and Moravian Consumer Cooperatives

Konfederace zaměstnavatelských a podnikatelských svazů ČR Národní výbor Mezinárodní obchodní komory v České republice Florentinum, Na Florenci 2116/15, 110 00 Praha 1 Phone: +420 257 217 744 E-mail: icc@icc-cr.cz

Václavské náměstí 21, 113 60 Praha 1 Phone: +420 222 324 985 E-mail: kzps@kzps.cz l More at www.kzps.cz l

l More at www.icc-cr.cz l

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 51

INSTITUTIONS

CZECHINVEST  BUSINESS AND INVESTMENT PROMOTION AGENCY

CZECHTOURISM  THE CZECH TOURIST AUTHORITY

l Partner for Your Business Activities l

Štěpánská 15, 120 00 Praha 2 Phone: +420 296 342 579 Fax: +420 296 342 502 E-mail: fdi@czechinvest.org

CzechTourism, the Czech Tourist Authority, promotes the Czech Republic at home and abroad, presenting it as an attractive tourist destination. Its partners are regional institutions and tourist destination managements, local and regional authorities and firms. By means of all its activities, CzechTourism attempts to arouse the interest of people in other countries in visiting the Czech Republic and enjoying its unique historical sights and unspoiled countryside. Its ambition is to increase the flow of foreign visitors into the Czech Republic and to systematically support and promote domestic tourism.

CzechTourism places special emphasis on its communication strategy, which presents the Czech Republic as a country with an exciting history, where visitors can not only become acquainted with the dramatic events from the country´s rich past and present, but also experience thrilling moments, sharing them with their companions. To accomplish this aim, CzechTourism takes advantage of its network of representations in other countries. It actively collaborates with the media and addresses partners in the Travel Trade sector at trade fairs. CzechTourism organises study tours to the Czech Republic for representatives of the media and tour operators, while simultaneously acquainting the local tourist community with the latest news and trends in global tourism. It acts as a service organisation for the regions and the B2B segment in the area of tourism and assists tourist organisations to present themselves abroad at a level which they could hardly be able to afford if acting on their own.

CzechTourism Agency is a state-run contributory organisation of the Ministry of Regional Development of the Czech Republic.

l More at www.czechinvest.org l

Česká centrála cestovního ruchu - CzechTourism

The CzechInvest Business and Investment Promotion Agency is a state-run contributory organisation coming under the Ministry of Industry and Trade of the Czech Republic. Its objective is to raise the competitiveness of the Czech economy by giving support to small and medium-sized enterprises, the business infrastructure and innovation. Its task is to attract to the Czech Republic foreign investors in the field of production, strategic services, and technological centres and to assist Czech enterprises to expand.

CzechInvest helps promote the Czech Republic abroad, presenting it as an attractive location for investment. It is the exclusive organisation authorised to submit investment incentive applications to the appropriate bodies. It also supports Czech firms interested in supplying their products to supranational marketing chains.

With its services and development programmes, CzechInvest aids in the promotion of domestic firms, Czech and foreign investors and the entire business environment.

All services are provided free of charge.

CzechInvest

Vinohradská 46, P.O.Box 32 120 41 Praha 2 Phone: +420 221 580 111 E-mail: info@czechtourism.cz l More at www.czechtourism.com l

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CZECHTRADE  CZECH TRADE PROMOTION AGENCY DEVELOP YOUR INTERNATIONAL BUISNESS CzechTrade is a state-run, export-oriented contributory organisation, which was founded by the Ministry of Industry and Trade of the Czech Republic. One of its main objectives is to promote international trade and collaboration between Czech and foreign business entities.

Its professional team, including the staff of its foreign network, offers a wide range of services to assist business companies in finding suitable contractors or trade partners in the Czech Republic. Czech firms enjoy the reputation of reliable partners and suppliers of high-quality products, technologies, and services.

The CzechTrade network of offices abroad provides the following services, all of them free of charge: l Qualified seeking out of Czech business partners l Initial personal consultations by phone or in person with CzechTrade officials abroad on requests concerning the potential of Czech suppliers l Supply of essential information about the inquirer´s object of interest in the Czech Republic l Identification and drawing up of a list of potential suppliers from the Czech Republic within the sector specified by the inquirer in advance l Publication and targeting of the specific inquiry at Czech suppliers and finding out about their interest to cooperate l Organisation of meetings with potential Czech suppliers in the Czech Republic during Sourcing Days.

On-line Services Czech Business Partner Search On-line form on the websites, where requirements can be specified. A team of CzechTrade specialists will help the inquirer find contacts at suppliers of goods and services in the Czech Republic on the basis of specification.

Directory of Czech Exporters The directory is an official on-line database of Czech exporters, where potential trade partners in the Czech Republic can be found. The directory is available in 13 language versions at http:// exporters.czechtrade.cz.

Portal BusinessInfo.cz www.businessinfo.cz Official websites for the use of foreign businessmen seeking information, assistance or contacts for their business activities in the Czech Republic. The language of the portal is English.

Translation into other languages is possible with the help of the Google Translator application.

Česká agentura na podporu obchodu / CzechTrade centrála Dittrichova 21, 128 01 Praha 2, Czech Republic Green line +420 224 907 820 E-mail: info@czechtrade.cz

Foreign Office CzechTrade Riga Elizabetes 13, 1010 Riga, Latvia Telephone: +37167508371 Fax: +37167508370 Mobile phone: +371 26628156 E-mail: riga@czechtrade.cz, jiri.jejl@czechtrade.cz, marta.stolarova@czechtrade.cz www.czechtrade.lv l More at www.czechtrade.eu l

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 53

INSTITUTIONS

CZECH CENTRES Czech Centres is an agency of the Czech Ministry of Foreign Affairs for the promotion of the Czech Republic in the world. Its task is to promote the Czech cultural scene on the international arena. The agency operates from its offices in 21 foreign capitals on three continents and is a member of the Association of European Cultural Institutions EUNIC. The offices of the Czech Centers Agency support all sectors of Czech cultural and creative industries. They present the Czech Republic as a modern country with rich cultural traditions and organise cooperation between foreign cultural institutions, specialists and artists and their Czech counterparts.

In the area of education, science, research and innovation the Czech Centers collaborate with universities and other higher learning and specialised institutions, help promote cooperation between them and propagate the achievements of Czech science abroad. They support the tuition and propagation of the Czech language in the world.

In the area of external economic relations the Czech Centers help promote Czech business interests in other countries.

In promoting the Czech Republic as an attractive tourist destination the Centers, in collaboration with their partners, place special emphasis on the promotion of Czech regions abroad.

With regard to the dissemination of information on the Czech Republic, the Czech Centres act as communication headquarters for the lay and expert foreign public, the media, and international entities.

Česká centra – ústředí Václavské nám. 816/49, 110 00 Praha 1 Phone: +420 234 668 211 E-mail: info@czech.cz l More at www.czechcentres.cz l

CENTRE FOR REGIONAL DEVELOPMENT OF THE CZECH REPUBLIC  ENTERPRISE EUROPE NETWORK The Centre for Regional Development of the Czech Republic is a state-subsidised organisation, the principal task of which is to support the government regional policy realised with the aid of EU financial backing. It provides expert services in support of the competitiveness of small and medium-sized enterprises, while focusing its attention on the administration and control of the drawing of financial resources from EU funds.

The Centre is part of the Enterprise Europe Network (EEN), the world´s largest consultation and support network serving small and medium-sized enterprises. The network was founded by the European Commission in 2008 in support of business.

Today the network has a global character, operating 600 contact places in more than 60 countries and employing more than 4 000 experts. In the Czech Republic, it is represented by a consortium of six partners. Besides all the EU states, it has its representations in a number of countries in Asia, South and North America, and Australia.

Apart from individual consulting for firms, Enterprise Europe Network organises professional seminars and conferences and mediates possibilities for firms to participate in international trade exchanges. Its mediation services are very important in assisting businesspersons to find contacts by means of a special international offer and supply database. Its professional publications on how to do business in the EU are also of significance. Businesspersons greatly appreciate the opportunity of attending international meetings at trade fairs organised

by EEN, such as the International Engineering Fair in Brno and the FOR ARCH building fair in Prague.

The services of Enterprise Europe Network are financed from the EU COSME grant programme, under Agreement No 737766, and by the Czech Ministry of Industry and Trade.

Centrum pro regionální rozvoj ČR – Enterprise Europe Network U Nákladového nádraží 3144/4, 130 00 Praha 3 Telefon: +420 225 855 312 E-mail: crr@crr.cz, een@crr.cz l More at www.crr.cz, www.een.cz l

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PERSONAL RESPIRATORY PROTECTION SYSTEMS MALINA – Safety s.r.o., is specialized in design, development and manufacturing of personal respiratory protection systems CleanAIR® for various industrial applications since 1993.

Long-term experience in the health and safety sector, with our own research and development department ensuring quality management standards ISO 9001 and AQAP 2110 are met, guarantee the high quality of the products and progressive technical solutions. We export CleanAIR® products into more than 30 countries from all over the world.

Efficient solution in filtration of gases, vapours, particles and its combinations in the most demanding industrial environments.

• • • • • •

Welding & Grinding Surface finishing operations Asbestos remediation Emergency response Biological and viral protection Chemical & Pharmaceutical Industry

MALINA - Safety s.r.o.

Luční 1391/11 Jablonec nad Nisou Czech Republic

www.clean-air.cz www.malina-safety.cz export@malina-safety.cz +420 483 356 600

C O N TA C T S

Useful Contacts USEFUL CONTACTS IN THE CZECH REPUBLIC Estonia – Embassy of the Republic of Estonia Estonsko – Velvyslanectví Estonské republiky Na Kampě 1, 18 00 Praha 1 Telephone: +420 257 011 180 Fax:+420 257 011 181 E-mail: embassy.prague@estemb.cz Website: www.estemb.cz Estonia – Honorary Consulate of the Republic of Estonia Estonsko – Honorární konzulát Estonské republiky Tř. kpt. Jaroše 13, 602 00 Brno Telephone: +420 542 215 109, 542 219 678 Fax: +420 542 214 482 E-mail: bumama@bumama.cz Website: www.bumama.cz

Prague – Petřín Observation Tower

Ministry of Transport / Ministerstvo dopravy www.mdcr.cz

Lithuania – Honorary Consulate of the Republic of Lithuania Litva – Honorární konzulát Litevské republiky Nitranská 604/5, 460 01 Liberec Telephone: +420 485 115 024 Fax: +420 485 100 332 E-mail: bazevicius@konzulatliberec.cz

Ministry of Finance / Ministerstvo financí www.mfcr.cz

Lithuania – Honorary Consulate of the Republic of Lithuania Litva – Honorární konzulát Litevské republiky Hlinky 40/102, 603 00 Brno-Pisárky Telephone: +420 543 244 145 Fax: +420 543 244 146 E-mail: slacalap@seznam.cz

Ministry of the Environment Ministerstvo životního prostředí www.mzp.cz

Latvia – Embassy of the Republic of Latvia Lotyšsko - Velvyslanectví Lotyšské republiky Hradešínská 3, 101 00 Praha 10 Telephone: +420 255 700 881 Fax: +420 255 700 880 E-mail: embassy.czech@mfa.gov.lv Website : www.latvia.cz

MINISTRIES Ministry of Foreign Affairs / Ministerstvo zahraničních věcí www.mzv.cz

Ministry of Regional Development Ministerstvo pro místní rozvoj www.mmr.cz

Ministry of Labour and Social Affairs Ministerstvo práce a sociálních věcí www.mpsv.cz Ministry of Health / Ministerstvo zdravotnictví www.mzcr.cz Ministry of Education, Youth, and Sport Ministerstvo školství, mládeže a tělovýchovy www.msmt.cz Ministry of Culture / Ministerstvo kultury www.mkcr.cz Ministry of Justice / Ministerstvo spravedlnosti www.justice.cz

Ministry of Industry and Trade Ministerstvo průmyslu a obchodu www.mpo.cz

Ministry of Defence / Ministerstvo obrany www.army.cz

Ministry of Agriculture / Ministerstvo zemědělství www.mze.cz

Ministry of the Interior / Ministerstvo vnitra www.mvcr.cz

56 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Photo: CzechTourism

Lithuania – Embassy of the Republic of Lithuania Litva – Velvyslanectví Litevské republiky Pod Klikovkou 1916/2, 150 00 Praha 5 Telephone: +420 257 210 122, 257 210 123 Fax: +420 257 210 124 E-mail: amb.cz@urm.lt Website: cz.mfa.lt

USEFUL CONTACTS IN THE BALTIC STATES Estonia – Embassy Tallinn Lahe 4, 101 50 Tallinn Telephone: +372 627 4400, sectetariat-627 4401, KO-627 4404, 03 Fax: +372 631 4716 Emergency line: +372 566 79029 E-mail: tallinn@embassy.mzv.cz Website: www.mzv.cz/tallinn Lithuania – Embassy Vilnius Čekijos Respublikos Ambasada Birutes g. 16, Žverynas, LT-08117 Vilnius Telephone:+370 5 266 1040, secretariat vv -266 1054, KO266 1052 Fax: +370 5 266 1066 Emergency line: +370 6 994 1596 E-mail: vilnius@embassy.mzv.cz Economic section: commerce_vilnius@mzv.cz Website: www.mzv.cz/vilnius

Latvia – Embassy Riga Čehijas Respublikas véstniecíba Elizabetes iela 29a, LV-1010 Riga Telephone: +371 6733 8179, receptionist 6733 8181 Fax: +371 673 8180 Emergency line: +371 2946 3947 E-mail: riga@embassy.mzv.cz Economic section : Commerce_Riga@mzv.cz Website: www.mzv.cz/riga CzechTrade Riga Foreign Office for all the Baltic States Elizabetes 13, 1010 Riga, Latvia Telephone: +371 6750 8371 Fax: +371 6750 8370 E-mail: riga@czechtrade.cz, jiri.rejl@czechtrade.cz, marta.stolarova@czechtrade.cz Website: www.czechtrade.lv

www.goro.cz MORE THAN 27 YEARS’ EXPERIENCE The company GORO, spol. s r.o. is a traditional Czech producer of water treatment with reverse osmosis since 1991. We specialize in the design, manufacture, sales, and service of reverse osmosis installations. We provide a complete range of standard and custom designs of reverse osmosis. Installation and service is provided by a team of professional technicians.

Our reverse osmosis can be used in various fields, especially in medical sector, in laboratories, in industry, in pharmacy etc.

We offer reverse osmosis of the output from 4 to 2000 litres per hour. Nowadays, we specialize in the technology of EDI (electrodeionization), which is used for the preparation of very pure water with resistivity over 15 MΩ cm.

For our company speak hundreds of installed reverse osmosis devices in the Czech Republic and in Slovakia. Large number of reverse osmosis installations have also been exported to Tunisia, Kazakhstan, Belarus, where they are powering sterilizers (autoclaves).

If you need quality reverse osmosis, contact us.

GORO, spol. s r.o. | Zápy 282 | 250 01 | Brandýs nad Labem | Czech Republic Phone: +420 326 313 892 | Email: goro@goro.cz

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 57

www.cnm.cz • Textile printing and dyeing mill • Fabrics for military and security personnel (Uniforms, bulletproof vests, knapsacks, raincoats etc. made of Cordura) • Fabrics for high-quality home textiles ink-jet printing on natural materials (cotton, linen - flax)

Address: CNM textil a.s. | 73 901 Baška 425 | Czech Republic cnm@cnm.cz Phone: +420 555 559 806 | +420 777 210 521

We deliver from stock Extensive product range HEAVY AND STANDARD WALL TUBES Seamless and welded heavy and standard wall tubes For structural applications (DIN EN 10210, DIN EN 10219) S 235 JRH | S 355 J2H | S 355 J2H normalized For mechanical applications (DIN EN 10297-1) E 235 +AR | E 235 +N | E 355 +N

MUT Tubes, s.r.o.

U Špejcharu 464 252 67 Tuchomȸɬice Czech Republic Tel.: +420 246 008 632 E-mail: info@muttubes.com www.muttubes.com

For pressure applications (DIN EN 10216, DIN EN 10217) P 235 TR1 | P 235 TR2 | P 355N TC1 | P 235 GHTC1

Your partner in the world of tubes

SV Výrobní, s.r.o. is a company with: X a 50-year tradition of spring manufacture X 45 years of experience in spring construction X high quality of products, long-term manufacturing experience using the EN ISO 9001:2015 quality management system X technical proficiency certificate of supplier for Czech Railways (ČD), Hungarian Railways (MAV) and Slovak Railways (ŽSSK Cargo).

SV výrobní, s.r.o. manufactures and sells volute, screw, and leaf springs and spring elements. The springs are intended for bumpers and rods of rail vehicles, for spring-mounting of road vehicles and machine parts (crushers, machine shears, mills, tippers) and as silencers for furnaces, elevators, piping distributors.

Contacts: Sales department

The springs are made according to standardised or customised designs including atypical sizes.

Phone: +420 582 312 735 y +420 582 312 854 mobile phone: +420 725 032 699 +420 774 720 314 Fax: +420 582 809 803 E-mail: vlastimil.vymlatil@svvyrobni.cz jaroslav.slavikst@svvyrobni.cz

Address: SV výrobní, s.r.o. y Dolní 100 796 01 Prostějov y Czech Republic ID No: 25545531 y TIN: CZ25545531 GPS Loc: 49°27‘52.966“N, 17°7‘50.657“E

www.svvyrobni.cz

We have very short delivery terms

Intero Chmelan & spol.

Intero Chmelan & spol., s r. o. Žamberk prov ides technical and project preparation, manufacture, delivery, and assembly of technological devices, production lines, and stainless tubing, including related electrical installation and MaR (monitoring and regulation), for customers from the field of dairy works, breweries, and other fields of the food processing and pharmaceutical industries.

Manufacture and delivery of devices stainless tanks of various capacities and types, including stirrers custom pressure tanks (calculations, certificates) and their service autoclaves and sterilisers minibreweries pumps of all types (impeller, displacement, proportioning) plate exchangers for various applications (heaters, coolers, pasteurisers) custom stainless products, service platforms for tanks and machinery

Projects, deliveries, and assemblies of production lines for dairy farming: milk reception milk and cream storage pasteurisation of milk, cream, and specialities production of fermented products production of cheese bottling of dairy products

Deliveries of purification plants of various outputs and makes Designs, reconstructions, and modernisations of technological tubing Projects and deliveries of electrical installations, controls, operations, and automations of technological devices and processes, monitoring and data archival We ZRXOG like to offer our customers quality and affordable complex services while respecting their specific requirements.

Components used for individual projects comply with strict functional and hygienic regulations for use in the food processing industry.

We use tested devices from renowned suppliers.

Contact: Jan DostĂĄl

dostal@intero.cz

for communication in Russian

www.intero.cz

CZ

LaserTherm – We Innovate Production Technologies LaserTherm is one of the largest service providers in Europe in the field of laser welding, surfacing and surface hardening technologies. The firm´s high level of technological advancement makes it possible to apply these technologies in areas such as power engineering, naval industry and mining, heavy engineering, the car, railway and aviation industries and the arms industry.

One of LaserTherm´s main activities is the supply of special production systems for the laser welding, surfacing and surface hardening technologies.

In this area the company provides comprehensive services from technological validation of the production process, design and manufacture of the workplace to final integration and launching the production process including the training of the personnel. Each system the firm realises is dimensioned and adjusted to the customer´s needs so as to allow efficient innovation of the production process while cutting down the resulting costs and raising the quality of the product or production operation. Part of the delivery is the technological optimisation of the production process, long-term support of the customer and technical and technological training of the personnel.

Laser Welding One of the fastest developing methods is the laser welding technology suitable for processes requiring high manufacturing production with the highest requirements for weld joint quality. This technology is applied especially in large-scale serial processes in the automotive industry, but it is also widely used in power engineering and the railway and food industries, where laser welding is used especially for the very good quality of the welds, minimum distortions of the welded parts, high welding speed and excellent possibility of the production process reproduction.

Laser Cladding The laser cladding method is very widely used for its ability to raise the functionality and service life of machine parts and tools and their renovation. It is used in the primary production of machine components and tools, where a functional weld deposit with high resistance to abrasion, cavitation, thermal and mechanical strain or chemical corrosion is applied to strongly exposed places of the part. Another possibility is to use laser weld deposits for the repair and renovation of components and tools, where damaged surfaces with a laser deposit are combined with a suitable material and then machined to their original geometry. This method is used increasingly in power engineering, mining, oil and gas extraction and other sectors of heavy industry.

Laser Hardening Laser hardening is a very efficient technology used in the thermal treatment of a wide range of parts. The high variability and precision of the technology makes it possible to process geometrically complex shapes practically disregarding their size. The method is one of the most efficient ways of surface hardening. LaserTherm has good experience with the integration of the production systems for the hardening of all sizes of pieces from small parts to parts weighing up to several dozen tons.

LaserTherm spol. s r.o.

Tylova Phone: Fax: E-mail:

1/57, 316 00 Plzeň +420 373 700 270 +420 373 700 273 info@lasertherm.cz

The innovation of production with the use of modern laser technologies is a very efficient instrument for the stabilisation of production, reducing defects and raising production performance. LaserTherm is one of the leaders in the area of integration and development of systems using industrial lasers.

w w w.laser therm.cz

Important Internet Addresses General information about CR

www.czech.cz

Information and presentation portal CR

BusinessInfo

www.businessinfo.cz

Doing Business in the Czech Republic

www.doingbusiness.cz

Portal of CR public administration

www.vlada.cz

Official portal for business and exports General information about the business environment, structure and development of Czech economy Public administration system electronic guide

Contact Data of Firms ARES

wwwinfo.mfcr.cz/ares/ares.html Administration register of economic entities in CR

Commercial Register

http://portal.justice.cz/

Public list of entities

Hoppenstedt Bonnier

www.hbi.cz

Information about important entities in CR and SR

Inform.cz

www.inform.cz

Czech companies catalogue

Kompass

www.kompass.com

Czech companies catalogue

European Databank

www.edb.cz

Information operator

Czech exporters

http://exporters.czechtrade.cz/en

Czech Exporters Directory

Yellow pages

www.zlatestranky.cz

Telephone directory of households and companies

Iuridica

http://iuridica.eunet.cz

Legal services and legal institutions directory

Portal of Czech Justice

www.justice.cz

Court proceedings in CR

Czech National Bank

www.cnb.cz

Monetary, financial and macroeconomic data

Prague Stock Exchange

www.pse.cz

Information about the Prague Stock Exchange

RM-System

www.rmsystem.cz

Czech Stock Exchange

Czech Association of Insurance Companies

www.cap.cz

List of insurance companies operating in CR

Patria Finance, a.s.

www.patria.cz

Investment portal

Chamber of Tax Advisers

www.kdpcr.cz

Database of tax advisers

www.czso.cz

Official statistical data and information covering various areas

www.bvv.cz

List of trade fairs and exhibitions + important information

www.euroexpo.cz

Organisation of trade fairs and exhibitions in CR

Legislation

Finance

Statistics Czech Statistical Ofice Fair Trades and Exhibitions BVV – Brno Trade Fairs and Exhibitions SOVA CR Association of Exhibition Event Organizers Miscellaneous

Czech Post

www.ceskaposta.cz

Inventions, Patents, Trademarks, Utility models, Industrial designs System of scientific workplaces Awards grants to the best basic research projects across all sectors of science Consulting services in chosing and collaboration with advertising and communication agencies in CR Information about postal services

Foreigner Integration Services CR

www.domavcr.cz

Advice for practical life in CR

Industrial Property Office

www.upv.cz

Academy of Sciences CR

www.cas.cz

Grant Agency of the Czech Republic

www.gacr.cz

Advertising Agency Register

www.registrra.cz/rra

Foreign Investment Association

www.afi.cz

Support of new foreign investors

Real Property Cadastre

www.cuzk.cz

Information system with data on the real estate sector in CR

Toll collection in CR

www.mytocz.eu

National qualification system

www.narodni-kvalifikace.cz

Regional Information Services Portal

www.risy.cz

Information about toll collection and prices Survey of qualification levels recognised in CR on a national scale Regional information website

Hotel and Restaurant Association in CR

www.ahrcr.cz

List of hotels in CR C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 63

PARTNERS: Ministry of Foreign Affairs of the Czech Republic Ministry of Industry and Trade of the Czech Republic Ministry of Regional Development of the Czech Republic Confederation of Industry and Trade Czech Chamber of Commerce International Chamber of Commerce Confederation of Employers´ and Entrepreneurs´ Associations CzechTrade CzechInvest Czech Centres Centre for Regional Development of the Czech Republic

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