Doing Business in the Czech Republic 2021 by PP AGENCY

Doing Business in the Czech Republic

2021

1919 – 2020

We are already more than 100 years on the market Development, production, sales and service of hydraulic and aeronautical systems and components

hydraulic gear pumps • hydraulic gear motors • flow dividers • development, production, sales and service of aviation equipment

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www.jihostroj.com

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic

DOING BUSINESS IN THE CZECH REPUBLIC 2021

Prague

Editor-in-Chief: Pavla Podskalská Editor: Jana Pike Graphic design: Graphic designer: Stanislava Podaná Production: Stanislava Podaná

Photo: © CzechTourism archives, Author: Martin Mařák

Cover:

Stanislava Podaná, pixabay.com

Issued by: PP Agency s.r.o. Myslíkova 25, 110 00 Praha 1, Czech Republic www.ppagency.cz, e-mail: journal@ppagency.cz Deadline: 1 September 2020 Copyright: PP Agency s.r.o. ISSN 1211-0949 It is not allowed to reproduce any part of the contents of this book without prior consent from the Editor.

2021

CONTENTS Foreword by Andrej Babiš, Prime Minister of the Government of the Czech Republic . . . . . . . . . . . . . . . 5 Foreword by Karel Havlíček, Deputy Prime Minister, Minister of Industry and Trade, Minister of Transport . 6

I. CZECH REPUBLIC – ECONOMIC POLICY Useful Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Czech Monetary Policy amid the Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Closing the Borders to Contain the Covid-19 Pandemic was a Shock to Czech Exporters . . . . . . . . . . . . 13

II. CZECH INDUSTRY Future of Czech Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Objectives and Aims of Czech Energy Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Agriculture: Digitalisation and New Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Automotive Industry Remains the Country´s Economic Pillar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Czech Railway Industry - Stability, But on the Crossroads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Top Quality and Exquisite Design of Bohemia Glass and Ceramics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Medical Device Manufacture Is One of the Most Innovative Industries . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Building Industry in Turbulent Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

III. HOW TO DO BUSINESS IN THE CZECH REPUBLIC Forms of Business Activities in the Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Incorporating a Limited Liability Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Incorporating a Joint-stock Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Steps for Acquiring a Czech Trade Licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Changes in Czech Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Lease of Business Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Investment Incentives since 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Win a Public Contract in the Czech Republic! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

IV. FINANCE Czech Banks: Financial Strength to Support the Czech Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Tax Changes for Business Owners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Entrepreneurship of Foreign Entities & Its Taxation in the Czech Republic . . . . . . . . . . . . . . . . . . . . . . 81 Employees – Taxation, Social Security, and Health Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

V. REGIONS Prague Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Central Bohemia Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Plzeň Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 South Bohemia Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Karlovy Vary Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 Ústí nad Labem Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Liberec Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Hradec Králové Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Pardubice Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 Vysočina Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 South Moravia Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Zlín Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 Olomouc Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Moravia-Silesia Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

VI. USEFUL ADDRESSES AND INFORMATION Confederation of Industry of the Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Czech National Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144 Czech Chamber of Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Confederation of Employers’ and Entrepreneurs’ Assotiations of the Czech Republic . . . . . . . . . . . . . 145 Czech Centres . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 National Committee of International Chamber of Commerce in the Czech Republic . . . . . . . . . . . . . . 146 Centre for Regional Development of the Czech Republic - Enterprise Europe Network . . . . . . . . . . . . 147 Czech Tourism Authority – CzechTourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Central and Other Key Bodies of the Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148 The Most Important Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

2021

Photo: Government of the Czech Republic archives

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic

The Czech Republic is a very businessfriendly country. The process of starting a business has undergone significant changes since the last edition of Doing Business in the Czech Republic. It is now possible to start a new business within one day. In the case of self-entrepreneurs, the process can be completed online in only a few hours – depending on the area of entrepreneurial activity. Legal entities are established by a notary clerk, who directly signs this company into the Business Register in one day and, on the next day, the company can start doing business. Life was made easier for small and novice entrepreneurs when our Minister of Industry and Trade, Karel Havlíček, introduced what is called the Trade Package, providing support to family companies, the easier establishment of start-ups, the processing of Trade Licences through the Citizens’ Portal, and the simplification of registration for tax obligations, among other things. Our economy has been steadily growing over the last few years, with GDP growth reaching 2.3 % in 2019. We have a technology-based economy, with a strong industrial tradition and educated and skilled workforce. We keep in mind that we need innovation, digitalisation and a future-oriented economy in order to enjoy prosperity and sustainability in the years to come. Therefore, we adopted an Innovation Strategy for the period 2019–2030, one of its most important tools being a programme for innovative companies called The Country for the Future. It is an ambitious strategy, aimed at making the Czech Republic one of Europe´s innovation leaders by 2030. This is a top priority of my government. If we are

to maintain this economic performance in a changing global economic environment and increasing competitiveness, we must focus on supporting research, innovation and smart solutions with high added value, including artificial intelligence. This will be of even greater importance in the light of the post-pandemic economic recovery. The unprecedented pandemic that hit the whole world is being a huge burden to our economic and social systems. Due to the measures taken against the spread of the coronavirus, we are experiencing decreased household consumption, low manufacturing performance and a considerable drop in trade, transport, accommodation and hospitality sectors. On the other hand, the Information and Communication Technology segment has been booming. Fortunately, our excellent budgetary position enables us to support our economy and citizens. During the autumn wave of the pandemic, the Czech government has been continuing to implement a series of measures to assist businesses and citizens. As of 30 September 2020, we had already spent CZK 148.6 billion from the State Budget and CZK 153 billion from public budgets to support the impacted entities. Under various programmes, the state has backed loans worth CZK 47.3 billion. As of the same date, the government had invested CZK 105.89 billion in capital expenditures, i.e. CZK 20.79 billion more than last year. In the third quarter, our economy coped well with the previous slump, and economic activity began to be restored, with GDP growing by 6.2 % in the third quarter compared to the previous one. The government is striving to support the economic recovery, which is duly reflected in the draft of the most important economic law of the year, the State Budget. This envisages a further increase in capital expenditures in 2021 to a total of CZK 186.9 billion, i.e. CZK 12.5 billion more than in 2020. Most of these investments aim at strengthening our highway and railway network. In October, the Chamber of Deputies began discussing the government’s draft of a completely new Building Law, the aim of which is to speed up and streamline permit processes in all legal regulations that affect Public Building Law. Furthermore, an Amendment to the Act on Accelerating Construction, known as the Line Act, is being prepared. The Amendment will speed up the purchase of expropriated land and contains elements of what is called the Polish Method, which would make it possible to allow transport construction in a single procedure. I believe that this will bring about a much needed boost to the construction industry, especially concerning the transport infrastructure. With regard to the preparations for Brexit and the end of the transitional period, the Ministry of Industry and Trade (MIT) is taking steps to improve the readiness of the business community and other partners, in order to reduce the negative impacts on their companies and the Czech economy in general. Since 2018, an interactive online Guide for Entrepreneurs on the impacts of Brexit has been available on the MIT website and utilised by thousands of users. In the past, our investment policy focused mostly on supporting employment. Currently, the focus has shifted to promoting innovative solutions and smart technologies. Increased spending on R&D and supporting internationalisation of research will be one of the first steps. Another one is digitalisation of public administration. We also want to reform our system of polytechnic education and digital education. The omnipresent climate change draws our attention to the development of more sustainable solutions in all areas. I am convinced that we have managed to create a balanced strategy, clearly defining the main goals and tools to achieve them, and involving all relevant stakeholders from public administration, science and research, academia and the business sector. The Czech Republic is well prepared for the post-pandemic economic recovery and transformation. Andrej Babiš Prime Minister of the Government of the Czech Republic

2021

Karel Havlíček Deputy Prime Minister for Economy and Minister of Industry and Trade, Minister of Transport

Photo: Ministry of Industry and Trade of the Czech Republic archives

Dear Readers, The year 2020 is closing one calendar decade of the Czech Republic´s economic development and, at the same time, is opening up a new 10-year era in which we´ll be fulfilling aims we have set ourselves despite the unexpected obstructions caused by the current coronavirus pandemic. In the past 10 years, we have made good progress in the area of technological development, and yet I am persuaded that we could go much further and increase the innovative and export potential of this country. Indeed, the entire strategy of the Czech Republic is based on this aim. The Country for the Future innovation strategy has been given clear outlines and is firmly based on the ground plan of science, research, innovation and value added. The results achieved worldwide are bringing a clear message: countries which have focused their future on innovation are reaching the top of the socio-economic ladder. Our aim is to place the Czech Republic among the world´s 20 most advanced economies. This, of course, is a long-distance run, in particular now, in connection with the coronavirus pandemic. Going hand in hand with that is the issue of investment. Economic theory and practice have clearly shown that economic growth is driven by investment. It is clear that the economic situation of the Czech Republic has changed dramatically over the past 10 years and investments must be targeted towards new aims. Foreign investment must flow into the Czech Republic for reasons other than those we have witnessed up to now. The possibili-

ties are wide-ranging, but a condition for progressive growth must be choosing forward-looking sectors, which have a tradition in the country, plus a strong professional basis Currently, however, the main concern is the coronavirus pandemic. I am confident that, apart from the significant negatives for the economy, such as business restrictions, massive GDP decline, etc., there are also signs of mild optimism, with the pandemic accelerating the use of innovations and new technologies in practice. This has called for support from the Ministry of Industry and Trade, which already in spring, during the first wave of the pandemic, came up with programmes prepared within a record short time to assist entrepreneurs. Among others, MIT launched the “nursing” programme for the self-employed, and the COVIDRental and COVID-Culture programmes, and it allocated funds to support research, development, and innovation workers under the Czech Rise-Up Programme. These programmes continued in the autumn, during the second wave of the pandemic. In addition, the Ministry has launched a number of programmes directly supporting innovation and technology transfer and, at at the same time, is organising investment incentives. The purpose of all these efforts is to support firms and self-employed persons coming forth with smart technological solutions, not only in connection with the COVID-19 disease. There are figures showing that the Czech Republic is already scoring success in the field of innovation. In the Global Innovation Index, the Czech Republic ranks 24th among 131 world economies. In four of the seven GII pillars rating countries according to their innovative activities, the Czech Republic has also achieved above-average rating in the group of 49 high-income countries concerning infrastructure, sophisticated trading, knowledge and technological outputs and creative outputs. I am persuaded that the economic restart will be massively boosted by the National Recovery Plan. The financial injection is intended to assist EU countries recover from the consequences of the pandemic and to support investment in the ecological and digital transformation of the European economy. This plan thus reflects the Economic Strategy currently being prepared as an umbrella for partial strategies, plans, reforms and programmes in the Czech Republic for the forthcoming decade. Projects coming under this plan will be prepared in the next few years.

CZECH REPUBLIC â&#x20AC;&#x201C; ECONOMIC POLICY

KOSMETIKA CAPRI

Manufacturer of Original Czech Goat´s Milk Cosmetics Brands Kosmetika Capri has been in the Czech market for 25 years. The firm provides its clients with the highest quality in the form of cosmetic products with a high content of goat´s milk, butter, whey and colostrum. Owing to its original formulas, the firm is a unique manufacturer of these products worldwide. Today we know that Kosmetika Capri products are an aid not only to beauty, but also to health.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic I . C ze c h R e pu bl i c – Ec o n o mic Po l ic y

USEFUL INFORMATION State Symbols of the Czech Republic Large State Coat of Arms

State Flag

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

BASIC DATA Population 10 699 142 (1.st half of 2020) Area 78 864 sq.km Capital Praha (Prague) State system Republic Language Czech Highest elevation Sněžka (Snow Mountain), 1603 metres above sea level Time zone Central European Time GMT + 1, Summer Time GMT + 2 Currency 1 koruna česká/ Czech crown (Kč/CZK) = 100 hellers EUR 1 = CZK 25.672 (average, 2019) USD 1 = CZK 22.934 (average, 2019) Internet domain name: .cz

TWELVE CZECH UNESCO WORLD HERITAGE ITEMS The UNESCO World Heritage List includes the following cities and sites: Prague, Český Krumlov, Kutná Hora, the Litomyšl Chateau, Telč, the Lednice-Valtice area, Zelená Hora – the Church of St John of Nepomuk (in Žďár nad Sázavou), Holašovice, Kroměříž (Chateau and Gardens), the Holy Trinity Column in Olomouc, the Tugendhat Villa in Brno (architect Ludwig Mies van der Rohe), the Basilica of St Procopius and the Jewish Cemetery in Třebíč. Intangible UNESCO monuments: Slovácko Verbuňk (Slovácko Verbuňk belongs to male saltation dances. It is an impromptu dance, which is not bound by exact choreography rules), Lent (Descriptions of Shrovetide processions and masks in the Hlinsko Region have been documented since the 19th century), Falconry (Falconry is one of the oldest relationships between man and predator, which has lasted for more than 4 000 years. It is the traditional activity of hunting using trained birds of prey in a natural environment), Kings’ Ride (The Ride of the Kings is a folk tradition of yet unknown origin, mostly associated with the traditional Christian holiday). More information at www.unesco-czech.cz.

NOTABLE PERSONALITIES Czechs are described as a very cultured nation that has given the world a number of prominent figures. The most significant rulers and heads of state have included Emperor Charles IV and the Presidents T. G. Masaryk and Václav Havel. Figures of world renown include the scientists Jaroslav Heyrovský (Nobel Laureate in Chemistry), Otto Wichterle, a Czech chemist who invented contact lenses, and Antonín Holý, who discovered a drug treatment for AIDS. World renown was also gained by the entrepreneur Tomáš Baťa, as well as by Madeleine Albright, former US Secretary of State. The list of famous people in the cultural sphere includes the composers Smetana, Janáček, Dvořák, and Martinů, the writers Franz Kafka, Karel Čapek, Jaroslav Seifert (Nobel Laureate), Jaroslav Hašek, Bohumil Hrabal, and Milan Kundera. Winners of the American Academy Award are Czech film directors Miloš Forman (born in the Czech Republic), Jiří Menzel, and Jan Svěrák. Others worthy of mention are the artists František Kupka, Alfons Mucha, and the unique-style photographer Jan Saudek. Famous Czech-born sports people are, for example, Emil Zátopek, Věra Čáslavská, Martina Navrátilová, Jaromír Jágr, Petr Čech, and Petra Kvitová.

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

PRACTICAL INFORMATION For additional practical information on the conditions of transport to the Czech Republic and stay in the CR, see www.czech.cz

Country dialling code: +(420). Licences for Mobile telephone network covering the territory of the Czech Republic have been granted to a couple of companies: for example O2 Czech Republic, a.s., T-Mobile Czech Republic a.s., Vodafone Czech Republic a.s. The most widely used credit cards in the Czech Republic are: Eurocard/Mastercard and Visa.

2021

CZECH MONETARY POLICY AMID THE PANDEMIC The outbreak of the global coronavirus pandemic has dramatically changed macroeconomic developments around the world, including the Czech Republic. International measures adopted to combat the pandemic have seriously hit world trade. In addition, part of the Czech economy was also shut down during the spring months because of the pandemic. This has adversely affected the consumption and investment behaviour of households and companies. Despite the massive efforts of the government and the Czech National Bank to support the recovery of the Czech economy, the ongoing pandemic has led to a deterioration in the domestic economic outlook. According to the CNBâ&#x20AC;&#x2122;s summer forecast, the economy will return to growth, and inflation will converge to the 2 % target in 2021. However, a resurgence of the pandemic poses the biggest risk to that outlook, as the possibility of the reintroduction of extensive quarantine measures cannot be ruled out. IMPACTS OF THE FIRST WAVE OF THE CORONAVIRUS PANDEMIC

fall by around 8 % overall in 2020 and economic activity will return to growth in 2021. However, the economy will not reach its pre-pandemic level until the end of 2022. The fall in private investment will be the main cause of the drop in GDP in 2020. Low external demand associated with the significantly worse global economic sentiment are dampening the recovery in private investment and decreasing the export performance of Czech firms. Net exports will thus negatively contribute to GDP growth this year. By contrast, continued growth in government consumption coupled with stabilising budgetary measures, which are supporting household consumption,

In mid-March 2020, the government declared a state of emergency and introduced measures to curb the pandemic. Schools, restaurants, hotels, service providers, and most shops were gradually closed and large public events cancelled. National borders were closed to passenger transport at the same time. At company level, decisions were made to temporarily suspend or significantly cut production in many industries, including the Czech automotive sector, which plays a very important role in domestic economic activity. These public and private measures affected about 40 % of the Czech economy overall and caused GDP to decline by 11 % year on year in the second quarter of 2020. The drop in output mainly occurred in services and industry. Although the anti-pandemic measures were almost fully lifted in the summer, lower external demand, a rise in unemployment, and a generally worse perception of the economic situation among Czech firms and households continue to dampen economic activity in the rest of 2020. According to the CNBâ&#x20AC;&#x2122;s August forecast, GDP will CZK/EUR

CZK/EUR

9/20

8/20

7/20

6/20

5/20

4/20

3/20

2/20

1/20

12/19

11/19

10/19

9/19

8/19

7/19

6/19

5/19

4/19

3/19

2/19

1/19

Source: Czech National Bank

2021

Photo: pixabay.com

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic I . C ze c h R e pu bl i c – Ec o n o mic Po l ic y

are moderating the negative growth impacts of the coronavirus pandemic. The crown exchange rate experienced rather marked volatility after the onset of the pandemic, but acted largely as a macroeconomic shock absorber. It weakened sharply in March following the outbreak of the pandemic. In the subsequent months, the weakening of the crown exchange rate partly reversed and the crown started to appreciate, mostly as a market reaction to the gradual opening of the European and Czech economies following the relatively well-handled first wave of the coronavirus pandemic. However, in September, the crown started to depreciate again, probably reflecting the visible deterioration of the epidemiological situation in the Czech Republic as well as in other European countries.

THE CNB RESPONDED WITH A MASSIVE EASING OF MONETARY POLICY AND MACROPRUDENTIAL MEASURES The CNB measures taken since March have been aimed at softening the impacts of the pandemic on price and financial stability and supporting

the Czech economy. The CNB designed its measures to maintain a financial market environment that would enable Czech financial institutions and the entire Czech economy to deal with the economic situation that has arisen. The key monetary policy measure was a massive cut in policy interest rates. The Bank Board cut its key policy interest rate (2W repo rate) in three steps between March and May, in total by 200 basis points, and the Lombard rate was cut by 225 basis points and the discount rate by 120 basis points. Further easing of monetary conditions was delivered by a market-driven weakening of the koruna exchange rate. Other measures were aimed at supporting the Czech banking sector. The CNB gradually lowered in a pre-emptive manner the countercyclical capital buffer rate to support banks’ ability to finance the real economy without interruption and cover potential credit. In addition, the rules for monetary operations have been modified for preventive reasons. Although no liquidity shortage was observed in the Czech banking sector, liquidity-providing repo operations have been announced three times a week since March 2020 instead of the previous weekly frequency. In addition, liquidity-providing operations with three-month maturity were introduced in May. The approved amendment of the Act on the CNB also made it possible to prepare a liquidity-providing instrument for certain non-bank financial institutions (insurance, pension management, and management companies), and the range of eligible collateral accepted from credit institutions (banks, foreign bank branches, and credit unions) in existing liquidity-providing operations was broadened to include mortgage bonds. Furthermore, the CNB in cooperation with the Ministry of Finance initiated a loan moratorium. The moratorium allowed firms, the self-employed, and households to avoid unnecessary or early insol-

2021

CNB’S KEY INTEREST RATE (2W REPO RATE)

CNB's key interest rate (2W repo rate)

9/20

8/20

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4/20

3/20

2/20

1/20

12/19

11/19

10/19

9/19

8/19

7/19

6/19

5/19

4/19

3/19

2/19

1/19

Source: Czech National Bank

INFLATION WILL RETURN TO THE 2 % TARGET IN 2021 Inflation has mostly remained above the upper boundary of the CNB’s tolerance band around the target in the course of 2020, driven mainly by buoyant core inflation and growth in food prices on the back of only slowly loosening labour market tensions, international transport restrictions, and other temporarily higher production costs due to the coronavirus pandemic. The elevated growth in consumer prices also reflects efforts by firms to make up the loss of revenues they suffered during the coronavirus pandemic. Inflation is expected to stay above the upper boundary of the tolerance band for the rest of this year. However, the deep decline in demand and overall economic activity will gradually prevail and inflation will return close to the 2 % target in the monetary policy horizon, i.e. in the second half of 2021. This will be fostered by lower growth in domestic costs, a slightly appreciating crown and cooling of the labour market. Consumer price inflation will stay close to the target in 2022.

THE FORECAST IS FOR STABLE INTEREST RATES Consistent with the August forecast is stability of domestic market interest rates until mid-2021, followed by a gradual rise in rates. Following a sizeable decrease in market interest rates in the first half of 2020, interest rates are expected to remain stable for a few quarters, according to the forecast. The forecast indicates a gradual increase in market interest rates from the second half of 2021 onwards as domestic economic activity recovers, amid stabilisation of inflation close to the target.

NOTABLE RISKS AND UNCERTAINTIES Naturally, the uncertainty surrounding the forecast and its risks are unprecedentedly high in the current extraordinary situation. They

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are connected with the course of the pandemic and the possible reintroduction of quarantine measures. Knowing the high economic costs of the across-the-board restrictive measures introduced in the spring phase of the pandemic, governments of individual countries will probably tend to use targeted restrictions with smaller economic impacts. However, given the current situation, the possibility of the reintroduction of more extensive quarantine measures cannot be ruled out completely. A resurgence of the pandemic thus poses the biggest risk to the August forecast, mainly in the direction of lower domestic economic activity. Conversely, the additional budgetary measures currently being considered by the Czech government may have the opposite effect on the domestic economy in 2021. Another uncertainty is the composition of supply and demand factors underlying the evolution of domestic inflation.

PETR KRÁL Executive Director, Monetary Department Czech National Bank E-mail: Petr.Kral@cnb.cz www.cnb.cz This article was written in early October 2020. Updated forecasts of the CNB are available at www.cnb.cz

Photo: pixabay.com

vencies caused by a drop in their incomes due to the coronavirus pandemic. Such insolvencies would cause irreparable damage to the Czech economy and, in turn, negatively affect the condition of banks and other financial institutions.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic I . C ze c h R e pu bl i c – Ec o n o mic Po l ic y

CLOSING THE BORDERS TO CONTAIN THE COVID-19 PANDEMIC WAS A SHOCK TO CZECH EXPORTERS The role played by exporters is of key importance for the Czech economy. The Czech Republic is a typical example of a small, open economy dependent on the development of the external environment. The degree of openness of the Czech economy is one of the highest within the EU. Moreover, the Czech trade turnover has been growing faster than the economy as a whole on a longterm basis. The only exception was 2009, the year of global economic recession. In that year, Czech exports declined by nearly 10 % in real terms. The recovery, however, was very fast, with exports returning back to the pre-crisis level in less than 18 months. As for investment the recovery took nearly a whole decade. For exporters, the year 2019 was a harbinger of worse times. Expectations came true in 2020, when the economic crisis struck in consequence of the new type of coronavirus pandemic causing the Covid-19 disease. This resulted in the fall of the real volume of Czech exports, for the first time after 11 years. The policy of the American President Donald Trump began to cause concern to world trade. One of the President´s key objectives was the effort to correct the chronic and deep US foreign trade deficit. From the territorial point of view, the USA is showing an unfavourable balance of payments, especially in trade with China and the European Union. In relation to China, Trump focused on raising barriers to free trade, com-

bined with protectionism and the escalation of geopolitical risks – from migration waves and conflicts in the Near and Middle East and Turkey to the never-ending story of Brexit.

IMPACT OF GERMANY´S ECONOMY In real terms, Czech exports already began to follow the downward trend in the last quarter of 2019. The decline was 1.2 % year on year, although the volume of exports for the whole year was still showing a 1.2 % increase. Recession in German industry affected Czech exports with a relatively long delay. The German economy began to decline in mid-2018, not only because of cyclical factors, but also in connection with structural problems affecting especially the automotive and energy industries. An even greater shock came at the end of the first quarter of 2020, and especially in the following quarter. The spreading coronavirus pandemic forced most governments to introduce drastic restrictive measures, which significantly paralysed the production capacities of their economies. An absolutely unprecedented measure taken by the European Union, an organisation proclaiming the principle of the free movement of goods, services and persons, was the closing down of frontiers. The borders with non-EU states

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INTERNATIONAL TRADE IN GOODS CZK/BN (IN CURRENT PRICES) 200.0

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to enforce global restrictions, and the restrictions they did introduce led to greater caution. This naturally could not occur without economic consequences, so that the process of economic revival necessarily slowed down.

ROLE OF THE MANUFACTURING INDUSTRY Let us now take a more detailed look at how Czech exporters and importers have been doing in the past few quartersâ&#x20AC;&#x2122; months and what foreign trade statistics are saying. With regard to goods, a slight increase in turnover, i.e. the sum of total exports and imports, was noted, which in 2019 increased by 1.5 % in comparison with 2018. This increase was supported by a 2.1 % growth year on year in exports and a 0.8 % growth in imports. The balance of trade in goods showed a surplus of CZK 145.7 billion, in comparison with CZK 98.5 billion in 2018. The year 2020 will be unequivocally characterised as one significantly affected by the coronavirus crisis. In the first half of the year, exports dropped by 13.5 % and imports by 11.3 %. In comparison with the first half of 2019, total surplus declined by 50 %, falling to CZK 51.7 billion. Of decisive importance in foreign trade statistics is the role played by manufactured goods, which in 2019 accounted for an unbelievable

Photo: pixabay.com

were naturally also practically impassable. The global interconnection of the international production chain thus revealed a weak link in it, with the need to suspend a number of production processes for lack of the necessary production inputs. This naturally affected exports. In the first quarter of 2020, Czech exporters sold 1.9 % fewer products, in real terms, followed by an unprecedented fall of 23.3 % in the second quarter. In most economies, the spring wave of the coronavirus pandemic culminated in April 2020, coincidentally the month when the economies, including the Czech economy, were practically in hibernation because of the new measures taken by the government. In May 2020, the measures were beginning to relax and the economy slowly resumed its activity. The third quarter was doing much better in comparison with the second, including in foreign trade. In the autumn months, however, the epidemiological situation once again worsened. Although, taught by the experience gained in the first wave, governments refused

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic I . C ze c h R e pu bl i c – Ec o n o mic Po l ic y

95.6 % of total exports and for 92.2 % of total imports. In 2019, the export of manufactured goods increased by 2.3 % in comparison with 2018, which in absolute terms was CZK 78.6 billion. In that period, imports, too, showed an increase, rising by 1.3 %, i.e. by CZK 43:3 billion. In the framework of the Czech manufacturing industry the most successful export sector is the manufacture of motor vehicles, trailers and semi-trailers. In 2019, the export of this subsector accounted for a notable 28.9 % of total exports of the manufacturing industry as a whole. In spite of the difficulties which the automobile sector faced in that year, car exports increased, specifically by 3.6 %. Other important items on the export side were machinery and equipment, and computers and electronic devices. Looking at the opposite side, i.e. imports, we note that motor vehicles, trailers and semi-trailers, too, held the most important position in 2019, with a share of 17.1 %, i.e.2.4 % more than in the previous year. This shows that the manufacturing industry contributed significantly to last year´s surplus in the goods category, which amounted to CZK 260.3 billion, CZK 35.2 billion more than in 2018. The overall balance sheet of manufactured products was favourably influenced especially by the year-on-year growth of the surplus in trade in motor vehicles, trailers and semi-trailers, which increased by CZK 21.9 billion, and the growth of the surplus in trade in other transport vehicles, which rose by CZK 11.4 billion. The deficit decreased in the refined oil products category, which fell by CZK 7.4 billion, basic metals (minus CZK 6.2 bilion) and chemicals and preparations (minus CZK 5.9 billion).

KEY ASPECT OF THE EUROPEAN UNION From the territorial point of view, the position of the Czech Republic remains unchanged. The country´s geographical position and its membership of the European Union unequivocally determine its key trade partners. In 2019, 79 % of all Czech exports went to EU countries, with the Eurozone accounting for 65 %. The most important trade partner of the Czech Republic is Germany, with a 31 % share of its total exports. Ranking second, far behind Germany, is Slovakia,

INTERNATIONAL TRADE WITH MOTOR VEHICLES (CORRESPONDING PERIOD OF PREVIOUS YEAR =100) 500.0 450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

with a share of 9 %, followed by Poland (6 %), France (5 %), and Austria and the United Kingdom (4 % each). In 2019, their exports to EU states accounted for 83.3 % (83.7 % in 2018), and their imports of those products from EU states for 68.6 % (69.8 % in 2018). The export of manufactured goods to EU states increased by 1.9 % year on year, while the import of those products from EU states was 0.3 % lower year on year. The overall surplus in trade with EU states in that year was CZK 698.7 billion, in comparison with CZK 637.1 billion in 2018.

SERVICES The safe external economic position of the Czech Republic is augmented not only by the surplus in trade in goods, but also in services. However, the volume of the export of services is only about one-fifth of the volume of the export of goods. Looking at the balance sheet, the figures are more interesting. In 2019, the balance of trade in services ended up in a surplus of CZK 104.4 billion, where the surplus in trade in goods was CZK 145.7 billion. In services, too, the impact of the restrictions imposed in connection with the coronavirus pandemic can be felt. In the first half of 2020, the export of services was 8.1 % lower year on year, with imports falling by 8.6 %.

THE OUTLOOK FOR 2021 IS POSITIVE The Czech Republic, as an industrial country exporting about half of its entire production, is fully dependent on both the condition of the global economy and free foreign trade. For both these reasons, the year 2020 signifies a great challenge for domestic producers. As shown by previous crises – global recession in 2009, the European debt crisis in 2011 and 2012, the exchange rate commitment in 2013-2017, the period following the annexation of Crimea by Russia in 2014 and the follow-up sanctions imposed upon that country – Czech manufacturers prove to be innovative and flexible, viewing the current situation as an opportunity. Therefore, our expectation for 2021 is that net exports will be one of the drivers of the domestic economy.

JAN VE JMĚLEK Chief Economist, Head of the Economic and Strategy Research Department Prague University of Economics and Business E-mail: jan_vejmelek@kb.cz

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CZECH REPUBLIC Your Trade Partner Published by the PP Agency s.r.o. 2000 â&#x20AC;&#x201C; 2020

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CZECH INDUSTRY

ASSEMBLY – PROFESSIONALITY, QUALITY, SAFETY Works L&W Group s.r.o., established in 2011, is a successfully developing Czech company without a foreign ownership participation specialising in the area of production-assembly works, for customers at home and abroad (e.g. Hungary, France, Norway, the UK, the Faroe Islands, Slovenia, Spain, etc.). Its services are used in the food, pharmaceutical, chemical and petrochemical industry, and other industries. The company has acquired new compounds, which have been reconstructed with financial assistance from EU funds. The premises comprise of 2 000 sq.m of production space, new headquarters, and 6 500 sq.m of storage space. It employs on average 60 – 80 people and cooperates with Czech and foreign subcontractors, and apart from its own employees it also engages self-employed persons.

The company´s business programme includes: delivery and assembly of investment units with all the related required works manufacture and assembly of skid units delivery and assembly of piping systems from carbon and stainless steel (especially for the pharmaceutical and food industries) assembly of technological equipment and movement of large-capacity equipment disassembly, production, delivery, and assembly of stainless steel structures, mainly for food industry

“We do work we like, work that has a clearly visible results and work which demands thinking.” Besides broad technical equipment necessary to provide quality services, the company disposes of a range of privileges WPQR welding procedures for various welding methods (111, 135, 136, 141) The company also holds certificates issued by TIČR (Technická Inspekce České Republiky) for the manufacture and repair of dedicated gas and pressure equipment Strict environmental and safety rules are obviously superior to all the other activities. It is a generally positive trend, which cultivates the environment of assembly workplaces and is a proof that Czech companies fully match their western counterparts. Certificates issued by TÜV Production of steel structures according to EN1090-2-EXC1 a EXC2 Pressure equipment and piping Modul A2 European directive PED 2014/68/EU modul A2 Production of welded products according to ČSN EN ISO 3834-2:2006 Our customers are: FR - TEK SARL; TPI SARL; TSE SARL; STIB SAS; CZ - Saint Gobain Construction Products; CS Cabot s.r.o.; ZVU Engineering a. s.; Ardagh Group; Kronospan CR spol. s r. o.; Procter&Gamble Rakona Rakovník; Unipetrol RPA; Stock Plzeň; BE - FIB Belgium; GB - ASC Process Systems Ltd; Donaldson Filtration Solution; and others Works L&W group s. r. o., Pohřebačka 225, 533 45 Opatovice nad Labem, email: wlwgroup@wlwgroup.cz

www.wlwgroup.cz

D o i n g B u s i n e s s i n t h e C ze c h R e p u bl ic I I. C ze c h In du s tr y

FUTURE OF CZECH ENGINEERING

Photo: Siemens archives

Engineering is showing unparalleled dominance in Czech industry. It has a number of sub-sectors, which supply the domestic and foreign markets with products of sizes from a few millimetres to machines weighing several tonnes, in addition to many components used in transport, the power industry, and raw material excavation and mining. Of essential importance is engineering production supplying the entire domestic economic sector, one reason being that it accounts for nearly 60 per cent of total Czech exports. Besides car making, Czech engineering firms are gaining recognition in other countries with deliveries of highly specialised and technologically advanced equipment, especially in the areas of power generation, transport equipment, and machinery for agriculture and the food industry. Other sectors whose products that have a good reputation in other countries are air conditioning equipment and machinery production. A special chapter is machine tool production - milling machines, machine drills, lathers, etc. The very good reputation enjoyed by this segment of Czech engineering abroad is mainly due to the long tradition of the renowned TOS trademark. To maintain their current markets and to gain new ones and new clients Czech firms are monitoring the specifics of those markets so as to be able to react flexibly to them and be competitive. This is a challenge facing them especially in today´s globalised

and economically complicated world. A step towards maintaining competitiveness is the enlargement of the range of high added value products following the latest technological trends, i.e. processes using digitalisation and automation in production and 3D printing, which in general terms means Industry 4.0.

POTENTIAL OF THE ENGINEERING INDUSTRY The more than 5 000 firms in the Czech Republic engaged in the engineering industry employ over 130 000 people. The Czech Republic also has a high potential among the EU member states as regards the automation of production processes (up to 40 % of all processes can be automated), which explains the high demand for automation equipment and the integration of robots in manufacturing processes. Global players, such as Siemens, ABB, and Robert Bosch, who actively invest in equipment in the Czech Republic and participate in supporting science and research, are aware of the stability of the Czech Republic´s economic environment, the high technological standards of its production, top research and development programmes and the close links between Czech engineering and other sectors of industry. In spite of this, a cooling down in production can be noticed in some engineering branches (not only because of the coronavirus epidemic), although power engineering is still doing well for the time being. The firms´ great advantage is that most of them are working on long-term projects and consequently are not excessively dependent on current demand, unlike other sectors of

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industry. In 2019, production in engineering fell by 1â&#x20AC;&#x2030;% in comparison with 2018. The largest markets for Czech products are the neighbouring states and also China. This year, however, experts forecast aÂ slight decline in export activities due to the trade war between the USA and China, and Brexit. Most of the goods were exported to Germany, China, and Slovakia, followed by Poland, Russia, and the USA, according to the Association of Engineering Technology statistics.

CONTRIBUTION OF THE AVIATION INDUSTRY The aviation industry is a prestigious high-tech discipline, generating high value added and employing a large proportion of highly skilled workers in research and development. It is also a sector where success without state support is hardly possible. Customers of Czech aviation products, which have a great renown worldwide, are mostly foreign governments, armies and state-owned firms. Most products of domestic aircraft manufacturers are exported. Destinations comprise up to 30 countries.

Photo: Siemens archives

MACHINE TOOLS ARE FACING GREAT CHALLENGES In 2019 Czech firms suffered significant worsening in all parameters under review in comparison with 2018. Exports declined by 17 per cent and production by nearly by 23 per cent. The main causes were lower demand for investment goods in China and structural changes in the European automotive industry. The massive decline in Chinese machine tool imports was caused especially by the worsening of Chinese trade relations with the USA. Standing behind the low demand on the part of subcontractors are uncertainties in the automotive industry, which is facing emission limit problems and is handicapped by the slow start of the electro mobility process. As a result, the Czech Republic has dropped several places in the world rankings of machine tool and forming machine manufacturers. The machine tool and forming machine sector is the cornerstone of the entire Czech engineering industry. The development of this sector basically influences the development of other engineering sectors and consequently the industry as a whole. Its characteristic features are high technical standards and technological sophistication. The basic requirements placed on machine tools are precision, productivity, safety, and reliability. In many respects, Czech machine tools are at the absolute top. This applies, for example, to mechatronic systems, control systems, spindle and axle drives, clamping and gripping technology, tool and workpiece probes, tool trays and a number of IT and technological systems. Czech manufacturers use components for their products from the same manufacturers as their rivals. These CNC machines can be connected to communication structures meeting the requirements of the Industry 4.0 concept. Although new technologies, such as additive production, are beginning to force their way into production, machining and forming will long stay the most widely used technological processes in engineering. In production requiring absolute size precision, machining is irreplaceable.

bohemiachladpraha.eu BOHEMIACHLAD Praha s.r.o. is a supplier of industrial ammonia cooling systems, industrial air conditioning systems and heat pumps, including control systems and automation, especially for meat processing plants, dairies and breweries. We offer the full range of services, from project designing and engineering to the delivery and assembly of cooling circuits, air conditioning and heat pumps, supplied as a turnkey project.

Glykol

BOHEMIACHLAD Praha s.r.o. | MoĹžnĂŠho 818/17, 161 00 Praha 6 | Czech Republic Phone: +420 274 773 546 | E-mail: info@bohemiachladpraha.eu

Technological constructions in the energy and industry sectors As part of our design and engineering services for technological constructions, we provide solutions tailored to the needs of our customers, from study analyses and project documentation to land and construction management, implementation and production documentation to our own realization of whole “turnkey” solution. For services regarding the project documentation we have all authorizations needed for such a kind of activities. Regarding the project documentation we are mainly focused on mechanical design, machinery construction, industrial and building design, steel structures, electrical design, control of technological process. For technological constructions, we focus on evaluating the current operation in terms of functionality and economics of operation and on the design of new technological units or individual machines. Based on the processed analyses, we propose the optimization and modernization of the current operation. We design technological procedures and logistics and transportation solutions for technological constructions. We supply and operate equipment, technological units and buildings for handling, treatment and production in the energy, coal and chemical industries and in other sectors of capital construction. We are experts and specialists in the supply of: - Technological units in the energy industry - Implementation and installation of different types energy sources (mainly biomass and electrode boilers) as a turnkey solution - Machinery and equipment for surface coal mining - Greening of heat sources - optimization of processes and emission control systems - Installation of mobile or stationary vacuum cleaners

Mining and transport of bulk materials Safety, decreasing ore grades and the demand for increased productivity are the main challenges that the mining industry is facing today. Our mining equipment and tools, as well as our system solutions, help mining companies to operate more efficiently and safely in open pit mines.

General engineering Tailor made solutions and development according to customer‘s needs. Project documentation in field of production lines and welding jigs, mining and material handling, lifting equipment, electro-mechanical and hydraulic drives. Design, drawings and FEM calculations of machinery. External engineering. Designing by 3D/2D CAD software - Autodesk Inventor, Solid Edge, Nastran, SCIA Engineer, AutoCAD, Advance Steel, Inventor, CAE software Engineering Base, ePlan.

We innovate traditional approaches in the energy industry with respect for the environment. In our procedures, we take the impact on environmental resources into account, whereupon we help our customers choose the most sensitive approach.

www.delauda.cz DELAUDA, inc., Revolucni 762/13, Prague 1, 110 00 Czech Republic, tel.: 00420 226 217 475, website: www.delauda.cz, e-mail: info@delauda.cz

D o i n g B u s i n e s s i n t h e C ze c h R e p u bl ic I I. C ze c h In du s tr y

Over the past decade, aviation exports have been growing by multiple per cent per annum. In 2019, the aviation industry exported products worth CZK 16.5 billion. Over the past seven years, the volume of aviation exports has doubled. Key export destinations are aviation powers in the EU market, i.e. France and Germany, followed by the United Kingdom, the USA, South America, the Near East, and Russia. There is a large number of firms in the Czech Republic operating in aviation engineering, such as Aero Vodochody ATG, Bell Helicopter, GE Aviation Czech, Honeywell, Latecoere LOM Praha, MESIT Aerotrade, VZLÚ, Aircraft Industries, Frenchtech Aerospace, and ZLIN Aircraft. In 2020, important changes took place in AERO Vodochody AEROSPACE a.s., which changed ownership after 13 years. The group of firms to which Aero belongs was purchased from Penta by AERO Investment Partners Zrt, registered in Hungary. This is a joint venture of the firm, AERO International s.r.o., a member of the OMNIPOL group, and a renowned Hungarian investor.

GE Aviation has been successfully developing and manufacturing aircraft engines in the Czech Republic since it acquired certain assets of the local Walter Company in June 2008. Since the acquisition, GE Aviation has already certified three new engine models and made significant investments in its Czech business. The company’s engineering team has already more than doubled its size and is still expected to grow as new development projects are coming down the pike. The Czech operation has become a turboprop centre of excellence for GE Aviation. Bell Helicopter’s customisation and delivery centre in Prague offers modifications, upgrades, avionics, and special mission packages for all current Bell Helicopter models. The facility offers customisation, delivery, and maintenance of Bell Helicopter aircraft and offers a wide range of aftermarket Citation Jet service offerings for Cessna. The facility in Prague serves as an anchor for Bell Helicopter in the region and is a key part of the strategy to provide regional sales, customization, delivery, training, and aftermarket support to European customers. The Czech Republic is the cornerstone of Honeywell’s global engineering strategy in Europe. The Prague Laboratory opened in 1993 and the Brno Design Centre followed ten years later. In 2006, the Brno Design Centre was integrated into Honeywell Technology Solutions’ international network of research, development and engineering centres. Honeywell also has two manufacturing sites in the Czech Republic: Aerospace in Olomouc and Environmental and Combustion Controls in Brno. More than 4 000 professionals work for Honeywell in the Czech Republic. Aviation, however, is one of the sectors affected most by the coronavirus pandemic. “We´ll not do without special assistance from

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EMPHASIS ON DESIGN Industrial design is intensively developing in the Czech Republic. A key innovation, which is able to provide a number of competitive advantages, such as greater user comfort, is the good and functional design of products, which can assist the manufacturer to penetrate new markets, provide new business opportunities, help reduce production costs, and raise the selling prices of products. In 2015, Czech engineering won the highly prized Design Oscar Award. The prestigious Red Dot Award was won by Martin Tvarůžek for his design of a horizontal boring and milling machine in the Engineering subcategory. Its manufacturer is Škoda Machine Tool in Plzeň. The unique construction of the TOS FRU machining centre with a travel portal makes possible both machining and milling operations. Its multifunctional design, which is one of the main competitive advantages in global markets, is combined with a portofolio of automatically exchangeable spindle heads. The basic design of the machine remains the same, but it is always adjusted maximally to the customer´s needs and machining technology. The centre makes it possible to work technologically demanding and large-size parts, such as steam turbines, boat engines, and parts of aircraft, with the minimum need of workpiece manipulation. This significantly shortens the overall machining time of even

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very complicated parts. The interior of the spacious cabin fitted with vertical travel affords the utmost comfort and safety to the operator. The robust FRU machines have already found their use, for example, in Canada, Russia, India, Turkey and other countries. In the Production and Processing Machines category of the A´Design Award competition, a team of research workers at the Faculty of Mechanical Engineering scored success with their design of the Big Trimmer machine for cannabis harvesting ordered by the Czech firm, Sunflower Trimmer. “We won the Iron A´Design Award intended for one-fifth of the best designs entered in the competition. For us, this is the first award for a project we realised for an industrial partner, and it gives us great pleasure. All the more so, as our design is a highly technicist, well thought-out product. In our case, it was not a signifcantly stylish design, but an industrial product relatively modest and purposeful,” pointed out Chief Designer David Škaroupka of the Construction Institute of the Faculty of Mechanical Engineering, VUT, who participated in the project with another two colleagues.

Photo: Siemens archives

the state. We must maintain a well-balanced combination of firms supplying large national and global players and companies focused on making their own aircraft. Thanks to this model, we still belong among the world´s nine countries capable of completely developing and building aircraft on its own territory,” Josef Kašpar, Head of the VZLÚ Research and Testing Aviation Institute and President of the Association of Aviation and Space Manufacturers (AL V ČR), said in July 2020.

D o i n g B u s i n e s s i n t h e C ze c h R e p u bl ic I I. C ze c h In du s tr y

www.metalworking.cz The company METAL WORKING CZ, s.r.o. has been manufacturing top-level plastics welding machines for more than 20 years. During that time it has developed several successful types of machines. One of its latest types is the BWM touch. The machine´s special feature is its robust construction, which ensures maximum precision in butt welding meeting the German DVS 2208 plastics welding standard. Another innovation is the lifting of the heating bar and stop by means of electric drive. Its users also appreciate the lower frame enabling easier loading of material into the welder. The welders can also be fitted with rounded container shaping equipment driven by three motors, welding space LED lighting,

thermal printer, LAN card for remote control of computer, and material clamping pedals or buttons. Clamping feet can be divided into separate parts. Besides butt welding machines METAL WORKING CZ, s.r.o. will easily cope with right-anglle welding and the operation of bending machines, extruders and single-purpose machines. Each machine is made to order. We offer our customers individual solutions of their needs. The customers of METAL WORKING CZ, s.r.o. include both large pool manufacturers, who appreciate especially the speed and high quality of welding, and small plastics processing firms, where the welder will save expensive manpower.

The cannabis trimming machine was ordered from the university by a new Czech firm, Sunflower Trimmer, which focuses its activities on foreign markets. “They addressed us two years ago and brought their product, a good device as regards its functionality, but the firm wanted more and asked us to develop a device that will compete with products of the largest companies,” Škaroupka recalled. With colleagues, Arnošt Vespalec, who works on the visual perception of the equipment, and Jakub Hurník, who devoted himself to its technical development and construction, they practically innovated the firm´s entire product range. Although the primary task of the device is its functionality, and not its aesthetics, the designers managed to create a distinctive product language, transferable between the firm´s products. The products, however, retain their characteristic stainless-steel character. “We have taken advantage of this and supported the character of the Big Trimmer by placing the tumbler dominantly over the robust plinth

comprising all the other components. The rest is given by the choice of the proportions and small details at the level of material combinations. In my opinion, in this respect, the device is original, which also has certain advantages as regards operation and maintenance,” Škaroupka added.

AGRICULTURAL ENGINEERING – INTELLIGENT CONSTRUCTION AND FLEXIBLE PRODUCTION There are approximately 200 manufacturers of agricultural and forestry machines in the Czech Republic, from large enterprises to medium-size ones and the smallest producers of accessories and components. The Agricultural and Forestry Machinery Association (A.ZeT) comprises 43 firms, whose members include all the significant domestic manufacturers and both agricultural universities, and a research institute. The overall production of the member firms is worth more than CZK 20 billion (approx. EUR 781 million), which is 80 % of overall production in the Czech Republic. The export of those firms accounts for more than 85 % of overall Czech exports amounting to CZK 18.6 billion (approx. EUR 724 billion). Manufacturers of agricultural machinery employ approximately 8 000 people in the Czech Republic. According to long-term statistics, the sales of universal tractors are stable, with approx. 2 200 machines being sold each year throughout the past decade. As regards the sales of combine harvesters, the capacity of the market, taking into account the required machinery renewal, is estimated at some 160 machines; the sales, however, fluctuate slightly year on year. In 2019, the firms sold 2 299 tractors and 150 combine harvesters; last year´s sales were among the average.

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OBJECTIVES AND AIMS OF CZECH ENERGY INDUSTRY The Czech Republic is self-sufficient in electricity production, based predominantly on domestic brown coal deposits and nuclear power sources. On the other hand, natural gas and oil are imported from politically unstable countries, which may endanger safe and reliable supplies in future. The adequate capacity of national and international transmission facilities creates prerequisites for international trade in electricity. The energy sector is a stable branch in the Czech Republic, which attracts foreign investors and creates good prerequisites for the further development of Czech industry. The Czech power industry is still dominated by coal resources. Traditionally, with the largest proportion of energy being generated by brown coal-powered power stations, the second largest electric power source in terms of output in the Czech Republic are the Temelín and Dukovany nuclear power stations.

OPENING UP OF ELECTRICITY AND NATURAL GAS MARKETS Until recently, electricity and natural gas consumers could not choose their supplier. A change occurred in 2002, when the electricity market started opening up. The first group to be allowed to change their supplier were large consumers purchasing electricity in the order of dozens and later units of GWh per annum. Czech households had this possibility opened up only at the beginning of 2006. The turn for natural gas consumers came three years later, on 1 January 2005, when large consumers with an annual consumption of more than 15 million cu.m could choose their supplier. In the second phase, from 1 January 2006 on, the market opened up to all other consumers excluding households, which had to wait until 1 January 2007. This practically consummated the market liberalisation process. Electricity and gas end users, however, began to use their right to change their suppliers more widely only in the years 2009 and 2010, when the number of consumers changing their suppliers of both commodities exceeded the 100 000 mark.

PHOTOVOLTAIC BOOM In support of the EU Renewable Energy Policy, the Czech Republic pledged to cover 13 % of its final gross energy consumption with renewable energy sources by 2020. As renewable energy production

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is not cost-effective for the time being, a subsidy system had to be introduced. However, the system was designed inadequately for photovoltaic power stations and its application led to an enormous expansion of solar power stations. The solar boom in the Czech Republic was triggered in 2008 by the fixing of excessively high purchase prices of electricity generated by photovoltaic power stations and the impossibility of their meaningful reduction in the following years, which would necessarily have led to cost reduction. Nevertheless, Czech companies which have survived the failure of domestic photovoltaics have been doing well in foreign markets. For example, in 2018 Photon Energy launched the installation of eight photovoltaic plants with an overall capacity of 5.5 MWp in Tiszakécske, Hungary, 86 km south-east of the capital Budapest. In continuation of the pilot installation of our first power plant built in the Hungarian town of Fertöd earlier this year, the beginning of the construction of the first in a series of new power plants marks another milestone on the road of the Group to build photovoltaic power plants in Hungary with a capacity of 50 MWp for long-time ownership by 2020. This company with Czech roots has built photovoltaic power plants with a capacity of more than 50 MWp in Europe and Australia. Another Czech manufacturer, Solek Group, is expanding successfully in other countries. For example, in 2018 it integrated its third photovoltaic plant into the grid in Chile. The Santa Laura project with an installed output of 3 MWp is located in the Valparaiso region near Cabido. Thanks to the success of its pilot projects, the company gained a contract for dozens of more power plants with an aggregate installed output of up to 118 MW from the Canadian company, CarbonFree. In the next two years, Solek Group is planning to build solar parks in Chile with a capacity of up to 250 MW and

Photo: shutterstock

The energy industry is one of the most important sectors in the Czech Republic. Traditionally, we are very strong in the area of engineering and the manufacture of power generating facilities, which the industry can build and operate efficiently, including nuclear power sources.

BATTERIES ARE BECOMING INCREASINGLY POPULAR Batteries are becoming increasingly popular, both with households and industry. In 2018, for example, the number of hybrid solar power stations with batteries installed in family houses increased by leaps and bounds. Several projects of larger batteries will also be realised in industry. For the time being, however, the Czech Republic is not prepared for the installation of large battery systems, and the two large batteries existing in the country do not as yet have the required legislative backing. On the other hand, accumulation is a challenge for Czech development firms, some of which have already taken the initiative. For example, the battery from OIG Power succeeded in the innovative project competition in Spain, and another Czech firm, Energon, has successfully tested its big stationary battery in the German market. The development of accumulation is also an opportunity for the manufacture of battery systems, and the Czech Republic is already preparing to start the production of batteries for energy storage facilities and electric car charging stations.

TERMINATION OF URANIUM MINING IN THE CZECH REPUBLIC Uranium mining has a long history on the territory of the present-day Czech Republic, going back to the 16th century. Its greatest boom, however, came in the period after the Second World War, with the development of the nuclear energy industry and especially with the massive global nuclear arms’ production, prompting global demand for uranium. During the second half of

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the 20th century, Czechoslovakia became a uranium powerhouse. The importance of Czech uranium is shown by the fact that, despite its small size, this country ranked among the world´s ten largest uranium producers. By 2007, more than 110 000 tons of uranium was extracted from Bohemia´s mines. Until the end of 2016, the Czech Republic was the only country in Central Europe extracting uranium. The last uranium mine in the Czech Republic to terminate commercial extraction of the precious mineral was the Rožná Mine.

ENERGY ENGINEERING Czech energy engineering is currently showing a slowdown, caused primarily by low electricity prices, which in turn led to a halt in new power plant construction. The herald of a brighter morrow is seen in the rapid development of know-how and extensive production capacity, traditions and a good name worldwide. Especially strong instances of this can be found in the East European countries, the former Soviet Union, and in the Middle East,

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to become the largest local investor in the small photovoltaic power plant segment.

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where Czech companies were successful suppliers in the past. A solution is to offer new products and to establish a footing in new markets. One of the big firms holding a prominent position in this field is the Vítkovice Machinery Group, comprising 30 firms concerned with the preparation of large investment projects. Another important player is Doosan Škoda Power, s.r.o., a member of Doosan Heavy Industries, based in Plzeň, with a century-long tradition in turbine manufacture. The company also manufactures turbo generators, heat exchangers and engine rooms, using its own development and product testing. Also well known is Modřany Power, a.s., an important manufacturer of piping systems for the energy industry, which are exported to some 40 countries worldwide. It also supplies parts for the gas industry, petrochemistry, and construction.

ENERGY STABILITY IN THE CZECH REPUBLIC AND ATTRACTIVENESS FOR FOREIGN INVESTORS From the foreign investors' point of view, the Czech Republic is very attractive as regards the energy sector, both concerning legislation and future development. More investment can be expected to go into production facilities, cross-border installations and protection against electricity spilling across the border, especially from Germany, investment in the infrastructure in the area of distribution and the completion of the backbone gas pipeline running from north to south. The parameters of the updated State Energy Concept and the draft to regulate the pipeline system create good conditions for ensuring a reasonable payback period for the capital invested.

OBJECTIVES AND AIMS OF CZECH ENERGY INDUSTRY The future structure of the energy mix and the strategy of the Czech Republic are outlined by the State Energy Concept, approved in 2015. The document envisages a relatively massive reduction in the use of solid fossil fuels, from the current 40 per cent to 11-17 per cent, which mainly concerns black and brown coal. Reduction is also envisaged in the use of liquid fossil fuels to 14-17 per

cent from the present 20 per cent, while the importance of nuclear power and renewable energy sources is to increase. Concerning natural gas, pressure is expected to grow on ensuring the reduction of its use, but in reality it is very likely that its importance

KEY ACTORS IN THE ELECTRICITY AND GAS MARKETS IN THE CZECH REPUBLIC The most significant player in the Czech market is the ČEZ Group, currently figuring among the ten most important players in the European market. ČEZ is a vertically integrated company, operating in the area of coal mining, conventional and renewable energy sources’ production, trading, electricity and gas sales, electricity distribution, energy services, and telecommunications. The ČEZ Group has the capacity to react flexibly to changes in the energy sector which, according to EBITDA, ranks it alongside the best energy companies in Europe. Net profit of ČEZ Group in the first half of 2020 was CZK 14.7 billion, which is CZK 1.3 billion more than in the previous year. The Group´s operating profit before interest, taxes, depreciation and amortisation (EBITDA) rose by 11 %, to CZK 38.7 billion. The higher profit is due especially to the growth of the realisation prices of electricity produced in the Czech Republic thanks to its multi-annual advance sale in the wholesale market in Germany and additional profits from commodity trading. The COVID-19 pandemic has a relatively limited impact on ČEZ Group (less than CZK 3 billion). Its operating revenue amounted to CZK 106.3 billion, which is 6 % more year on year. Electricity production from traditional sources declined by 8 % year on year, mainly as a result of the growth of emission permit prices and the decline in electricity prices caused by the COVID-19 pandemic, the layoffs of the production sources and the gradual phasing out of obsolete coal power plants. Over the past five years, the ČEZ Group reduced the production of electricity in those power plants by 24 %. The production of electricity from new energy sources increased by 5 %, mainly thanks to the better weather conditions in Germany and Romania. The second most important actor in the Czech market is Innogy Energie (formally the RWE Group), which is concerned with gas transmission, distribution and sales, and energy services. Other important players in the Czech market include the E.ON Group, selling and distributing electricity and gas and providing energy services. The Group's portfolio also comprises smaller manufacturing facilities. Another company with a similar structure is Pražská energetika, operating on the territory of the capital city of Prague, which also invests in renewable energy sources outside its own distribution area. The Veolia Energie Group in the CR, too, is one of the largest producers and suppliers of heating, cooling, electricity and other energy commodities. At the same time, it is a European leader in providing energy services for cities, villages and their inhabitants, healthcare facilities, schools, industrial enterprises, public institutions and clients in the tertiary sector. Bohemia Energy controls about 3 % of the electricity and natural gas markets and is still growing, thanks to the acquisition of its weaker rivals. There are also a number of alternative electricity and gas suppliers and energy service providers in the Czech Republic. Energy services are another step towards broadening the activities of vertically integrated companies and is a segment with great potential for future development.

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DYNAMIC RESEARCH PROJECTS IN POWER ENGINEERING The Czech power engineering industry does not entail the mere operation of power stations, coal mining and photovoltaics. In addition to all of these, the Czech Republic has a number of important programmes and research projects it can be proud of. Řež Research Centre: the construction of the SUSEN infrastructure project is completed and research is continuing. The extensive research base for nuclear technologies in Řež near Prague and in Plzeň is already in operation. The SUSEN workplace in Plzeň focuses on the research of nuclear fusion, materials, diagnostics and testing for the purposes of the power industry. An important part of the SUSEN project in Plzeň are the nondestructive defectoscopy laboratories. The material research laboratories verify the firmness, resistance, and service life of metals and welds. Broader contexts of “pure” energy generation are being sought by the Advanced Photovoltaics Centre being built in Prague, in addition to seeking ways of raising the efficiency of solar panels. At the birth of this ambitious centre were graduates from the Nuclear Engineering, Civil Engineering, and Electrical Engineering faculties of the Czech Technical University in Prague. The Centre brings together all aspects of Photovoltaics, from theoretical Physics, which will help to improve the efficiency of solar cells, to technological problems, the testing and diagnostics of solar panels and their integration into the structures of buildings.

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balance. The development of technology for hydrogen and methane production from electricity for the seasonal storage of summer surpluses gained from renewable sources for winter use will also be important. The role of coal will be weakening with the gradual exhaustion of its domestic deposits, while the role of renewable energy sources, nuclear sources and gas will be strengthening. As regards vehicle drive development, greater space exists for the use of methane and hydrogen obtained from renewable sources, rather than for electromobility. The Czech energy industry is becoming increasingly tied to the development of the European power industry, with all its pros and cons. It will be very important to prevent the transfer of the risks and costs arising from the source irresponsibility in electricity production in other EU states to the Czech power industry. Distributors will have to change into platform providers and link together local plant operators with battery storage facilities, electric car charging stations, smart city applications and other entities. Grid operators will thus be playing the central role in the framework of the transformation of the Czech power industry.

Photo: Siemens archives

will grow, especially with regard to the flexibility of this fuel. The Czech Republic will continue to stand on the same pillars on which it has been standing to date: nuclear energy and domestic coal, with the use of domestic renewable sources. Nuclear energy is to be supplemented with coal and gas. Therefore an important role will be played by accumulation of heat in hot water tanks and electricity in accumulators to ensure a short-term

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AGRICULTURE: DIGITALISATION AND NEW TECHNOLOGIES In 2019, agriculture was affected by various factors, the most distinctive being the weather, pests, market conditions, and support for the agricultural sector. The profits generated by Czech agriculture in that year are estimated at CZK 17.5 billion, an 11.9 per cent increase year on year. This is the fourth highest value achieved since 2011. Agricultural production increased by 3.4 %, to CZK 140.3 billion. Crop production (56 %) was higher than livestock production (37.7 %). Crop production rose by 4.6 % year on year. The most important crops were cereals, technical crops, and forage crops. Higher volumes of hops, green and silage maize, vegetables and potatoes were harvested last year. On the other hand, the wine, fruit, rape, and legume harvests were lower. The two spells of frost in spring, which damaged the orchards, affected the harvests of all fruits except prunes, raspberries, and blackberries. Animal production rose by 2.2 % year on year. Owing to the worldwide increase in demand, the prices of slaughter pigs rose by 16.6 % and poultry prices by 2.2 %. On the other hand, egg prices declined by 6.6 %. Employment in agriculture, which has been stable in the past few years ranging around 100 000, in 2019 declined by 1.2 %, to approximately 99 000. Average wages in agriculture are below the national level on a long-term basis. Last year, they stood at CZK 27 200. The surface area of ecologically farmed soil in the Czech Republic continued to increase; last year, its surface area accounted for 15.6 % of total agricultural land. A favourable feature is the increase in the number of bio food farmers and ecological farms.

tries worsened less, from CZK 15.7 billion to CZK 16.4 billion. The record high deficit in total Czech agrarian trade reflected especially the higher imports of pork and tobacco substitutes. Despite the overall decline in total Czech agrarian exports, this country´s year-on-year agrarian exports increased in trade with most of the countries where Czech agrarian diplomats have their representations. Among them, the increases were the highest in trade with the USA, by 19.7 % (other states – Serbia by 14.7 %, Monte Negro by 33.8 %, Macedonia by 32 % and the Russian Federation by 14.0 %). Year-on-year declines in agrarian exports were recorded in trade with Lebanon (by 0.8 %) and Bosnia and Herzegovina (by 8.6 %). In the overall trade of the Czech Republic, agrarian goods in 2019 accounted for 4.3 % of the country´s total exports and for 6.0 % of total imports. In both cases, these are higher values in comparison with the preceding year. Larger increases in year-on-year comparisons were recorded by Czech imports (by 0.3 p.p. vs 0.1 p.p.).

TERRITORIAL STRUCTURE As in previous years, in 2019 agrarian goods were exported especially to Slovakia (21.8 %) and Germany (20.3 %). The third most important export destination was again Poland (9.9 %), followed by Italy (8.8 %), Austria (5.5 %), and Hungary (5.0 %). The main importer among non-EU countries was Russia (1.8 %), followed by

AGRARIAN TRADE In 2019, the Czech agrarian trade deficit increased by 13.2 %, from CZK 41.7 billion to CZK 47.2 billion. In 2019, however, the deficit began to grow at a much slower rate, specifically by nearly one-half. In 2019, the Czech agrarian trade deficit worsened, especially in trade with EU states, falling from CZK 25.3 billion to CZK 30.3 billion, while the country´s deficit in trade with third coun-

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SMART FARMING Digitalisation in Agriculture was the subject of the Animal Tech 2019 fair in Brno, where seven items won the special, historically first Smart Farming Award. This award is reserved for items using modern technologies for increasing the quality and volume of agricultural production. The Commission focused on exhibits with a high proportion of automation and robotisation of working processes, using independent information and communication technologies and creating elements of collaborative systems in the spirit of Agriculture 4.0. One of the award-winning projects was a product of the Czech firm, VNT Electronics, s.r.o. – an electric fence generator with a combinable power source and remote control using RF technology. The controllable distance is up to 10 km. Another important function of this device is receiving error messages from the generator (checking voltage in the fence, battery condition, loss of signal).

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Among non-EU countries, the main suppliers were China (1.4 % ), the USA (1.0 %), Turkey (1.0%), Ukraine (0.9 %), and Norway (0.7%). The most distinctive year-on-year improvement of the balance of Czech agrarian trade as regards the territorial structure was achieved in trade with Italy (by CZK 1.3 billion), the United Kingdom (by CZK 673.3 million), and Russia (by CZK 398.7 million). Its worsening was recorded in trade with Germany (by CZK 2.1 billion, mainly due to higher imports of pork, cheeses and curds), Belgium (by CZK 1:7 billion), Romania (by CZK 1:4 billion), and the Netherlands (by CZK 1.4 billion). The largest Czech export items in 2019 were cigarettes, preparations used in animal nutrition, bakery goods, and other food preparations and non-condensed milk and cream. The main agrarian products imported into the Czech Republic were pork, bakery goods, cheeses and curds, other food preparations, and cigarettes.

Photo: pixabay.com; www.freeimages.com

China (0.8 %), Japan /0.6 %), Turkey (0.6 %), the USA (0.4 %), and Ukraine (0.4 %). In 2019, the largest volumes of agrarian imports came from Germany and Poland, with shares of 22.2 % and 15.7 %, respectively. In year-on-year comparisons, the German share in 2019 increased by 0.5 p.p., while that of Poland declined by 1.0 p.p. Other large importers of Czech agrarian products were the Netherlands (6.8 %), Slovakia (6.6 %), Spain (5.9 %) and Italy (5.7 %).

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FARMERS ARE AHEAD OF INDUSTRY IN DIGITALISATION According to the survey of the Association of Small and Medium-sized Enterprises and Crafts of the Czech Republic, which focused on digitalisation in agriculture, eight out of every ten entities, all operating in agriculture, would understand the term ‘digital agriculture’ and link it with some specific operation. Regrettably, for the time being, only 20 % of these invest in robotisation and digitalisation. More than four-fifths of agricultural enterprises currently use modern technologies or tools. Most often this concerns the use of GPS, smart machines such as digital milking machines, measuring of surfaces via satellite, data monitoring and collection, weather stations, crop rotation records, smart sensors (Internet of Things and Animals, online measuring), self-driving tractors, drones and robots, etc. Another term for ‘digital agriculture’ is ‘precision agriculture’, which is mainly linked with the use of various navigational methods for machine control or, for example, agricultural crop planting and harvesting. Agriculture is an example of the comprehensive use of the main technological pillars: satellite location, use of Earth observation products such as maps, digital models and analyses, and data transmission digital communication, e.g. for cattle tracking and the measuring and control of different parameters. Specific examples of the practical use of modern technologies include, for example, the control of poultry farms by computer, compound feed production, grain drying and storing, remote climate control in halls and automatic control of consumption in biogas stations. The use of modern digital technologies is wide-ranging in agriculture. Unlike industrial production, agriculture places fewer demands on precision in measurement and regulation, which is favourably reflected in set-up costs.

CZECH FARMERS MAY BECOME PIONEERS OF AGRICULTURE 4.0 The coverage of 98 % of the territory of the Czech Republic by the Internet of Things signal is among the best in all Europe. Thanks to this fact, special sensors that will send farmers

data concerning humidity or crop harvesting and storage figures, will be available to farmers even in the most remote domestic field or silo. Among the first places where such sensors have been installed in the Czech Republic is the farm at Klíčany near Prague. The AGROSSYN family farm in Klíčany focuses on crop and animal production. It grows cereals, oilseeds and root crops on 1 150 hectares of arable land, which it clears and processes in its own facilities and sells in small packings. As regards animal production, the farm keeps laying hens and pigs and breeds bees. Precision farming was introduced on the farm in 2000. Ondřej Bačina of AGROSSYN appreciates the role played by the measuring sensors, which send him data to his mobile phone. “We have good experience with our new bar meter, which we have installed in the winter wheat silo. In about three weeks of storage, one layer began to heat up,” he said and continued: ‘”We took a sample and found that a pest had settled in the wheat. We had to treat the entire layer. Without knowing this, we would have only learned about it at the moment the pest had burst the gate of the store open,” Ondřej Bačina added. For the farmer this would mean selling the crop in feed quality, i.e. at a lower profit. The data collected by the sensors serve farmers in precision farming. “For example, we see that three kilometres from the farmhouse the rainfall was ten millimetres, while at the farm it was just one millimetre. This information is of key importance, because, after such rainfall, no machinery can be used in the wet soil,” Ondřej Bačina adds, highlighting the potential savings. Perhaps an even more important role is played by data in planning spraying operations. For example, if the sensor on the sprayer shows that there is no wind and the farmer knows the pressure tendency and the air humidity, he may estimate whether the spraying substance will be blown away or will evaporate, or whether he can apply the spraying substance safely, without having to fear that it will also affect areas not intended to be sprayed. In time, the data from sensors located in different places in the field could be connected to form a network covering the whole country. Such a project is being developed by the Czech Agricultural University. This would create prerequisites for farmers to be able to manage their fields in accordance with sustainable development principles. At the local farm in Přáslavice, they decided to accept the challenge of the Agriculture 4.0 system and turned it into an Aquaponic Farm 4.0 and its wider variant Urban Farm 4.0, which combines the cultivation of fish and plants suitable for towns and their suburbs, and also introduced the simple hydroponic variant. The purpose is to create and show the concept of how a small local farm growing vegetables and breeding fish can function, and to suggest a solution which is simple and easily operated and can be located in inconspicuous places.

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AUTOMOTIVE INDUSTRY REMAINS THE COUNTRY´S ECONOMIC PILLAR The automotive industry remains the pillar of the Czech economy, although the pandemic has drained off much of firms´ liquidity. In 2019, the Czech automotive industry once again showed excellent results. Despite the negative trend in world markets, Czech car factories nearly regained the position they had held in the preceding record year. The automotive industry is a sector which creates nearly one-tenth of Czech GDP, directly employs about 180 000 people and about 500 000 people overall, accounts for more than one-third of industrial investment in science and research and returns over CZK 70 billion into the national budget. 2019 ended the period in which total revenue, the same as exports and wages, had been rising for ten years running. The promising results at the beginning of this year and firms´ expectations of a positive development in 2020, however, were spoiled by the coronavirus pandemic, which temporarily halted the automotive industry in all of Europe and dealt a hard blow to the key sector of the European economy. The Association of the Automotive Industry estimates that, due to the crisis, Czech car factories will turn out up to 300 000 fewer cars and the revenue of the entire sector will be down by at least CZK 215 billion.

a number of other sectors of industry,” Bohdan Wojnar explains. According to Zdeněk Petzl, AutoSAP Executive Director, strategic aid from the state is now of key importance. “The pandemic has turned the automotive industry upside down, but it definitely did not reverse long-term trends, nor will it fundamentally affect the transformation process which the sector is undergoing. In view of the massive supporting measures in the neighbouring countries focused on innovation, new technologies and net mobility, it is very important for the Czech Republic to increase investment in digitalisation, automation, and the implementation of environmentally friendly solutions, such as the construction of a modern infrastructure for alternative fuels. Otherwise Czech firms could start losing their hard-won positions across the entire supply chain.

“Despite the gradual cooling down of the market, the year 2019 pushed the results of the Czech automotive industry to a new maximum, when its overall revenue resumed its upward trend and began to grow again, and in the end surpassed the CZK 1 trillion mark for the fourth year running,” Bohdan Wojnar, President of the Association of the Automotive Industry, said in his review of last year´s results. “Currently we have other worries. The coronavirus pandemic has caused a decline in the revenue of the firms in the automotive sector, which fell by as much as CZK 150 billion, and the forecast is that the loss will continue. Our estimate is that in 2020 car production will fall by around 20 %. The performance of the entire sector will be strongly influenced not only by the development in foreign markets, but also by the potential support to be granted by the Czech government, in consideration of the fact that the automotive industry supports wide-ranging ecosystems, thus bringing benefit to

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Photo: ŠKODA AUTO a.s. archives

YEAR 2019: RECORD RESULTS The production of firms associated in AutoSAP in 2019 exceeded the record values of the preceding year. Total revenue, with 1.9 % year-onyear growth, amounted to CZK 1 123.8 billion. The volume of exports rose by 2.4 % in comparison with 2018, to CZK 942.4 billion (from CZK 920.7 billion in 2018). Most of the output was exported. The dominant export partner for Czech automobiles on a long-term basis is Germany, with a share of more than one-third. AutoSAP firms accounted for nearly one-quarter (23 %), which is 21 % of last year´s total Czech exports. Employment in the automotive industry in the Czech Republic last year reflected the country´s record-low unemployment rate and the unsatisfactory situation in the labour market. The number of employees rose moderately, with AutoSAP firms showing an increase of 1 000 workers. The firms currently employ 133 000 people.

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Although the sector offers its employees above-average earnings, the growth of wages last year slowed down. Average salaries in AutoSAP firms in 2019 rose by 6.0 % to CZK 43 848; in worker professions, salaries increased by 5.4 % to CZK 36 905. On the whole, average salaries in AutoSAP firms are 28.8 % higher than average salaries in the CR in general (in worker professions, this is 8.1 % over the average salaries in the CR). In total, the automotive sector in the Czech Republic directly employs 180 000 people.

VEHICLE PRODUCTION AT A STABLE LEVEL, SIGNIFICANT GROWTH IN REVENUE OF FINAL MANUFACTURERS n REVENUE: CZK 657.6 billion

(+6.5 %), of which EXPORT: CZK 600.5 billion (+6.4 %) n OVERALL PRODUCTION: 1 461 179 road vehicles (-0.6 %) n CARS: 1 427 564 (-0.7 %) n BUSES: 5 217 (+6.7 %) n TRUCKS: 1 181 (+42.5 %) n MOTORCYCLES: 980 (-34.4 %) n TRAILERS AND SEMI-TRAILERS: 26 238 (+3.7 %)

In comparison with other countries, the Czech Republic remains an important global manufacturer of vehicles. In per capita calculation, the CR is number one in bus manufacture and number two in car manufacture. In absolute terms, the CR has become the fourth largest automobile manufacturer in Europe, ranking 11th on a global scale. Supplier firms are adding significantly to the performance of the automotive industry in the Czech Republic. Their share in the revenue of AutoSAP firms is 39.2 % and they account for 35.4 % of firms´ total exports. Six suppliers are among the 10 largest AutoSAP exporters on a long-term basis.

RESULTS FOR THE 1ST HALF OF 2020 In June 2020, the Czech automotive industry showed a slight revival, despite 32.5 % fewer motor vehicles being manufactured in the entire first half of this year than in 2019. Firms that were doing well in June included especially the manufacturers of Iveco CR buses and SOR Libchavy, which showed a significant growth of 12.7 %. This, however, only slightly mitigates the fall from the beginning of the year, which in total means the manufacture of over 244 000 fewer motor vehicles. The overall production figures in the Czech Republic copy the development in the car manufacturing sector, which is showing just a slow restart. The decline in production corresponds to the demand for new vehicles in the European Union, which in June showed a 22.3 % decline year on year, with a quarter of a million fewer cars being turned out, in comparison with the same period last year. “Although this means a slower decline in comparison with previous months, the nearly 25 % fall in demand still means a tremendous loss for the entire production chain,” Bohdan Wojnar comments.

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A total of 503 615 cars were manufactured in the first half of the year in the Czech Republic, 32.6 % less than in the same period in 2019. ŠKODA AUTO turned out 337 580 cars (-28.2 %). The gradual slowing down of production caused by the coronavirus pandemic was augmented by the gradual increase in their production in June, when the factory turned out 73 991 vehicles. Hyundai in Nošovice manufactured 96 390 cars (-39.9 %) in the first half of the year, and TPCA turned out 69 645 small cars, 40.3 % less than in the first half of last year. n B uses and Trucks

The 11.9 % decline in the first half of the year, to 2 231 buses, was followed by a significant increase in custom production in this segment. In June, Iveco in Vysoké Mýto turned out 37 buses more than it did in June 2019 (+8.7 %). In the first six months of 2020, Iveco manufactured 1 999 buses and SOR Libchavy increased production in June by 73.3 %, to 52 buses; In the first six months of the year,

IMPACTS OF COVID-19 PANDEMIC ON CZECH AUTOMOTIVE INDUSTRY AND EXPECTED DEVELOPMENT IN 2020 The covid-19 pandemic has fundamentally affected economic life in the Czech Republic and across the EU. The sales and production chains of the automotive industry have been seriously affected. In the course of the spring months, nearly one-third of enterprises were forced to halt their production completely and, in 60 % of them, production was significantly restricted in comparison with the pre-crisis period. The performance of the different manufacturers, however, may differ, especially in the supplier sector. Current losses caused by the pandemic: n Manufacture cut down by more than 220 000 motor vehicles n Revenue falling by CZK 150 billion (estimate):

- CZK 90 billion on the part of final producers - CZK 60 billion on the part of suppliers Outlook for 2020: n Fall in the production of motor vehicles in the CR by 20 % (-300 000 vehicles) n Fall in overall revenue by at least CZK 215 billion

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the firm manufactured 223 buses. Together with KH Motor Centrum Opava, which made 9 buses since the beginning of the year, these two firms in June turned out 516 buses (+12.7 %). Another firm doing well is Tatra Trucks, which did not interrupt production even during the coronavirus crisis. In the first half of the year, Tatra made 628 trucks, 143 more than in the first half of last year (+29.5 %). n M otorcycles

In the first half of the year, JAWA in Týnec, the only motorcycle manufacturer in the Czech Republic, turned out 249 motorcycles. In comparison with the preceding year, this meant 637 fewer motorcycles (-71.9 %). n Trailers and Semi-Trailers

To date, the towing vehicles segment has not been significantly affected by the coronavirus pandemic. In the first half of the year, overall production in all categories rose moderately, by 1.9 %, to 15 454 towing vehicles. The favourable development is mainly due to the increase in the production of small trailers made by Agados, to 14 363 vehicles (+2.5 %). Doing well in the large trailers category was Schwarzmüller, with 908 vehicles manufactured between January and June (+0.5 %). On the other hand, PANAV showed a decline in the 1st half of the year, in both the trailers (135 vehicles, -19.2 %) and semi-trailers category (48 vehicles; -38.5 %).

Photo: ŠKODA AUTO a.s. archives; ACRI archives

n C ar Production

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CZECH RAILWAY INDUSTRY - STABILITY, BUT ON THE CROSSROADS The present successful advancement of railway transport was enabled thanks to more than 200 years of traditional development of the Czech railway industry. The former ČKD and SKODA plants, together with a range of other manufacturers, have always been at the top of their professions. The quality of their products is reflected in their high export. This long-standing tradition is successfully linked to the present representatives of the Czech railway industry, who do not rely only on tradition but invest significantly in the development of new products, in the purchase of high-tech technologies, and the renewal of production areas. This technological innovation is necessary to ensure the competitiveness of this industrial branch. The latest analysis by the Association of Czech Railway Industry (ACRI) of firms doing business in this sector points to the great stability of their 2019 economic results. The total turnover of firms associated in ACRI in 2019 amounted to CZK 76 billion. The share of exports has remained unchanged for three years, with the share of exports last year amounting to 54 %, i.e. approximately CZK 40 billion. Last year, Czech firms operating in the railway industry employed nearly 20 000 people. The basis of the stability of firms engaged in the Czech railway industry is mainly their high investment in innovation and new technologies, and the competitiveness of their products. This development is also largely due to the increased demand for suburban and urban railway transport in the Czech Republic and other countries. “Other important factors are, on the one side, the drawing from EU funds in the area of investment activities in railway infrastructure and in the area of rail vehicle supply, and, on the other side, the success of Czech export firms,” Marie Vopálenská, Managing Director of ACRI, explains. Czech firms have also become established in foreign markets, where they have been placing about 50 % of their output on a long-term basis. Adding to it also indirect and induced effects, this makes nearly CZK 52 billion, which accounts for 1.3 % of the country´s GDP.

THE YEAR 2020 – OUTLOOK AND PROSPECTS In spring 2020, ACRI carried out an analysis among its member companies concerning the current situation influenced by the COVID-19 pandemic. The survey showed that most firms associated in ACRI did not suspend their production. “Most of our member firms continue developing, manufacturing, providing services and passing on their products to customers,” Marie Vopálenská, Managing Director of ACRI, says. This is confirmed by Jakub Weimann, Managing Director of Bonatrans, who adds: “We maintain our production in a four-shift operation, naturally at

ECONOMIC RESULTS OF FIRMS OPERATING IN THE RAILWAY INDUSTRY

Turnover CZK mil.

Export CZK mil.

Employees CZK mil.

Source: ACRI

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ACRI ACRI has been representing the Czech rail manufacturing industry since 1995. ACRI defends the common interests of the railway supply industry and Czech railway institutions, railway operators, rail infrastructure managers and also EU institutions via its membership of UNIFE. ACRI acts as the Czech Centre of Technical Standardisation for the railway sector entrusted with the transfer of European technical standards into the Czech national standards system. The Association brings together 50 Czech companies, significant manufacturers and suppliers of products and services for railway transport. It represents the interests of the different sectors of the railway industry and provides services in the areas of engineering, manufacture, maintenance and renovation of rolling stock, the infrastructure, the signalling systems and other fields. ACRI members currently employ more than 20 000 people in the Czech Republic. Their annual turnover is more than EUR 3 billion, of which exports account for more than 54 %. Our vision: The Czech Railway Industry – a profit-making, flexible, and highly technically developed sector with long years of tradition, an important employer, adding to the country´s economic growth and the development of the transport system in the Czech Republic and in the world in general.

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ment, production, and servicing in the ACRI member firms continue without any major restrictions, the forthcoming economic recession caused by the coronavirus pandemic will be complicated even for those firms and support from the state will be of key importance for them. For example, in Siemens, the pandemic situation massively influences the supplier chain in the manufacture of rolling stock, which significantly delays deliveries as a result of frequent interruptions in factory production all over the world. Today it is nearly certain that, unless the state meaningfully aids firms, they may soon be faced with huge problems. Our clients include railway passenger transport enterprises, which have lost practically all their customers as a result of the necessary measures taken by the government. Therefore, I think that the state should support them, because, after the crisis is over, the whole of society, not only our company, will need them,” points out Jiří Červinka, Economic Director of Oltis. That is why the firms associated in ACRI demand that the state abstains from reducing investment in rail transport and that, on the contrary, it finalises ongoing tenders and announces new ones. MARIE VOPÁLENSKÁ Managing Director, ACRI www.acri.cz

Photo: ACRI archives; AŽD Praha archives

higher costs because of the measures taken against the spreading of the coronavirus pandemic and the increase in overtime work, because of the growing number of people in quarantaine or on sick leave.” To this, Martin Bělčík, Managing Director of the Railway Research Institute, adds: “The Velim Testing Centre continues to provide the full range of services and is meeting all the requirements of its customers without restriction.” Within the framework of ACRI, firms are fully meeting their contractual obligations towards their partners. For example, RETIA company provides support for the ReDat recording and analytical system, which is one of the key parts of the communication network of the integrated rescue system. “Our firm has not interrupted work on any of the customer projects and our specialists continue their work on the development and testing of products,” says Jan Mikula, Director of the RETIA marketing firm. “Although, for the time being, develop-

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SUCCESSFUL PROJECTS OF CZECH FIRMS ACRI members export their high quality products and services especially to the member states of the European Union, the Balkan countries, Turkey and Russia. Their products, such as train control systems, locomotives and tramcars, are of the highest European standards. The Czech railway industry is at the top among European manufacturers, and Czech companies are in a position to compete on the international scene. Worth mentioning among its export achievements is the recent contract for the delivery of six sets of carriages and six locomotives from ŠKODA Transportation to Germany for Deutsche Bahn Regio, and the delivery of tramcars from the same manufacturer to a number of European and non-European cities; CZ LOKO is busy trading with the EU and the Baltic states, and AŽD Praha is modernising railways in Slovakia, the Balkans, and Turkey, while railway wheels from Bonatrans can be found serving practically all over the world, and the same is true of anti-friction bearings from ZKL. ŠKODA Transportation will supply 80 modern tramcars for the Rhein-Neckar-Verkehr transport company. Czech Railways ordered 50 super modern express vehicles from the SIEMENS-ŠKODA consortium. ŠKODA will supply 7 six-carriage trains to Saint Petersburg Metro via OOO VAGONMAŠ,

part of the Škoda Transportation Group. Škoda Transportation, in consortium with ŽOS Trnava, won the tender to supply up to 25 electric units to Slovak Railways (ZSSK). The Slovak company will receive state-of-the-art single-decker RegioPanter units. Transtech Oy, a subsidiary of Škoda Transportation, will supply 10 ForCity Smart Artic trams to the Finnish City of Helsinki. AŽD Praha has equipped the 13.3 km-long loop at the Velim Test Centre with ETCS Level 2. Also completed is the first commercial project for the installation of the ETCS L2 on the section Kolín – Břeclav – state border of the Czech Republic with the Slovak Republic and Austria. The ETCS L2 project on the Petrovice u Karviné – Břeclav section is under construction, and work on the Česká Třebová – Přerov section has recently been completed. AŽD Praha is collaborating on various projects in Turkey, for example, on the modernisation of the Istanbul Metro, for which AŽD supplied the signalling systems and carried out the upgrade of railway crossing safety devices. It also supplied components for more than 260 railway crossings, and traffic control and information systems for Izmir. AŽD PRAHA is completing the delivery of its signalling system to Montenegro. GHH-BONATRANS, premium supplier of railway wheelsets and their parts, a company with a history of more than 200 years with delivery footprints in more than 80 countries globally, represents an impressive part of the history of wheelset design and manufacture. Generations of genuine experts continuously contribute to the development of wheelsets. Respecting the past but looking ahead, the pioneers of wheelset manufacture produce premium solutions for railways worldwide. ŠKODA ELECTRIC offers the development, production, and integration of propulsion and control systems for various rail vehicles, i.e. underground railways, locomotives, EMUs, low-floor trams, trolleybuses and battery vehicles for environmentally friendly public transport. Škoda Electric also has experience with PMSM motors, SiC semiconductors, TCMS and system integration, and is a reliable partner and technology leader in the field of propulsion systems for rail vehicles. AMiT is a supplier of industrial electronics and reliable solutions for public and mass transportation, industrial automation and building automation. AMiT Transportation is one of the most important players in Central Europe in the development and production of control systems for transportation, mainly for railways and rolling stock. DAKO-CZ is a traditional manufacturer of braking systems and components for railway vehicles. It has important contracts with leading world rolling stock manufacturers, including Siemens and Stadler. Another important customer of DAKO-CZ is Tatravagónka Poprad, co-owner of the Třemošnice manufacturer. Besides train brakes, DAKO-CZ also supplies braking systems and components for underground railway trains and tramcars. UP to 70 % of the company´s production go for export. For example, it has made another delivery of braking systems for LHB carriages to the Indian customer, ESCORTS. DAKO-CZ has been in the Indian market since 2006. Its exports began to grow meaningfully in 2015.

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TOP QUALITY AND EXQUISITE DESIGN OF BOHEMIA GLASS AND CERAMICS

Glass- and ceramic-making is a traditional sector of the Czech manufacturing industry. Firms are investing in the modernisation of production and the development and manufacture of higher value-added products. This sector is facing keen global competition, which Czech firms are dealing with successfully with the high quality, innovative and exquisite design and originality of their products.

FLAT GLASS The only manufacturer of large-size flat glass sheets in the Czech Republic is AGC Flat Glass Czech, a.s., a member of the AGC Group based in Teplice. This company is currently the largest manufacturer of flat glass and its applications in Central and Eastern Europe.

PACKING GLASS Packing glass production comprises beverage bottles and canned glass made for the food industry (beer, wine, liqueurs, non-alcoholic beverages, mineral waters, fruit juice, etc.) and glass containers for products of the chemical, pharmaceutical and cosmetics industries. The dominant manufacturers of packing glass in the Czech

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Republic are the companies of O-I Manufacturing Czech Republic, a.s. with the sales company, O-I Sales and Distribution Czech Republic, s.r.o., and Dubí u Teplic, which are members of the Owens-Illinois (USA) supranational group, and VETROPACK MORAVIA GLASS, a.s., Kyjov, part of the Vetropack Holding AG group. Other packing glass manufacturers in the Czech Republic are SKLÁRNY MORAVIA, a.s., Úsobrno and STÖLZLE – UNION, s.r.o., Heřmanova Huť.

GLASS FIBRES AND PRODUCTS THEREOF The only manufacturer of textile glass fibres and products thereof in the Czech Republic is Saint-Gobain ADFORS CZ, s.r.o., Litomyšl. The

Photo: © CzechTourism archives, Author: David Marvan

Glass – a commodity which this country has always been exporting and selling readily. And art glass of Czech provenance, too, is represented in all world collections. Bohemia glass is a phenomenon with a tradition of more than a thousand years. As far back as the fourteenth century the art of Bohemian glassmakers was known all over Europe. At that time Bohemia´s churches were among the few which had glazed windows. An important era in Bohemian glassmaking was the period between the two wars, when domestic glassworks became known for their accomplished skills of turning out art pieces in modern styles, such as Art Nouveau, Art Deco, and functionalism.

The sophisticated appliance for the automatic measuring of the flat stress within the glass sheet. The Stresstter 7 presents an up-to-date appliance for the automatic measuring of the flat stress within the glass sheets. This measuring allows determining of the curve of the flat stress and temperature in relation to the width of the glass sample. The sample to be measured is one glass sheet intended for measuring; this one is obtained from the production line and chilled to the ambient temperature. The glass sheet is positioned below the stress measuring appliance and aligned into the position for measuring. The flat stress and temperature are measured in a number of points across the width of glass sample. The stress vector being measured has the orientation of the glass-flow on the production line. The stress measuring appliance is designed for the glass samples having maximum length of 7000 mm and width from 1200 mm to 5600 mm, with the thickness from 1.6 mm to 12 mm. The Stresstter 7 provides for very accurate measuring of the stress with guaranteed repeatability, even for the patterned glass or wire-armoured glass. The appliance may be regularly calibrated, and it is always possible to create an appropriate Report on calibration. The optical system proceeds across the glass sample’s width and the values of temperature and stress are scanned in preset distances. When scanning the stress within the glass sample, no darkening of the room is necessary and both the operator and appliance operates under normal working conditions. After the scanning of the temperature and stress values has been completed, the measured values are displayed and recorded both numerically and graphically.

STRIAGRAPH – STRIATTER 1000TM state-of-the-art appliance for imaging and recording imperfections in glass Striatter 1000 striagraph is a device that automatically provides a striagram of a glass sample. A striagram is a record of streaks, bubbles, and other inhomogeneities in the thickness of glass scanned along the sample. It is not necessary to darken the room to evaluate the sample. Striatter 1000 is designed for glass samples with a thickness of 2 to 12 mm and width of up to 25 mm. The striagram of the whole width of the produced strip of glass (up to 8000 mm) is completed by gradual measurement of several samples of glass of a maximum length of 1000 mm. The glass sample is inserted in a glass container filled with immersion fluid at the top of the striagraph. The operator enters data about the test and the sample in the computer and then runs the automatic evaluation. The optical system moves along the measured sample and individual shots are recorded. After the scanning has been completed, the data are automatically evaluated, individual images are compiled, and the test protocol is created.

NEWTE spol. s r. o. Jateční 847, 415 01 Teplice, Czech Republic Tel.: +420 417 531 449, Fax: +420 417 536 531 newte@newte.cz

www.newte.eu

s.r.o., Železný Brod (glass thermometers and hydrometers), Vitrum, spol. s r.o., Sklárna Janov and other smaller firms. The best-known optical glass manufacturers are, for example, EcoGlass, s.r.o., Jablonec nad Nisou, which is concerned with the production of precision pressed optical glass components for electro-optical instruments, and BOHEMIA OPTIK, s.r.o., Mařenice u České Lípy, a manufacturer of optical components and systems.

FURNACES, MACHINERY AND EQUIPMENT, AND TECHNICAL SERVICES FOR THE GLASS INDUSTRY

UTILITY GLASS There is a number of smaller firms making a wide range of glass products, such as Crystalex CZ, s.r.o., Crystal Bohemia, a.s. KavalierGlass, s.r.o. and Crystalite Bohemia, s.r.o., decorated by paint and pen-and-ink drawing, high enamel and engraving, handmade utility glass, historical replicas and metallurgical glass, e.g. AJETO, s.r.o., Lindava, Rückl CRYSTAL, a.s., Nižbor Blažek Glass, s.r.o., Poděbrady, Crystalite Bohemia, a.s., Světlá nad Sázavou, SKLÁRNA SLAVIA, s.r.o., Nový Bor, Královská Huť , s.r.o., Doksy, EGERMANN, s.r.o., Nový Bor, and JADI, s.r.o., Jablonec nad Nisou. Pressed and blown decorated drinking glass is made by Sklárna Heřmanova Huť, a.s., while exclusive, handmade utility glass is produced by Moser, a.s., Karlovy Vary.

OTHER KINDS OF GLASS The range of this category of glass made in the Czech Republic is very wide. It comprises technical and laboratory glass, technical balls, industrial glass appliances, protective welding glass and optical glass, in addition to the production of glass building blocks, costume jewellery, semi-finished products, and lighting glass. The dominant Czech manufacturer of technical and laboratory glass, tubes and apparatus made of borosilicate glass, is KavalierGlass, a.s. (formerly Sklárny Kavalier, a.s.), Sázava. Technical and laboratory glass is also made by TECHNOSKLO, s.r.o., Držkov, EXATHERM,

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RAW MATERIALS FOR THE GLASS INDUSTRY The long tradition of glassmaking and its development in the Czech Republic is based, besides other factors, on the sufficient supply of raw materials, i.e. sand, kaolin, feldspar, and silica. The high quality glass sands with an extremely high SiO2 content are excellent materials for the glassmaking industry and for various other uses in different sectors. The sands are supplied in either wet or dry form. In the Czech Republic, these sands are mined and supplied by Provodínské písky, a.s., Provodín, and Sklopísek Střeleč, a.s., Mladějov v Čechách.

Photo: BOMMA archives

company manufactures primary glass fibres and glass products for composite materials, such as glass fibre yarns, glass fibre roving (long filament) for cutting, weaving and winding, and drawn profiles reinforced by glass fibres, cut glass fibre strands and mats. Glass fibres are also used to make a number of different types of technical fabrics, grid glass fibre fabrics, glass fibre wallpaper and non-woven fabrics. The only Czech manufacturer of thermal and sound insulation materials using glass fibres in the form of mats and boards (coming under the ROTAFLEX Super.trademark) is Union Lesní Brána, a.s. in Dubí u Teplic. Insulation material, based on glass wool in the form of boards and rolls, is made by KNAUF INSULATION, spol. s.r.o. in Krupka u Teplic.

At present, there are about 40 to 50 independent firms in the Czech Republic which manufacture and supply furnaces, machinery and equipment, glass moulds and instruments used for the production of glass, and firms providing services, projection and other technical and consulting work for this sector. These firms are of different sizes and have different production programmes. Companies pursuing independent production and commercial activities exceeding the bounds of the Czech Republic include manufacturers of machinery and equipment, such as Sklostroj Turnov CZ, s.r.o. making machines and equipment for automatic packing glass production, SKLOPAN LIBEREC, a.s., which specialises in the construction of machines for flat glass working, SKLÁŘSKÉ STROJE Znojmo, S.R.O, supplying various glassmaking machines, and TRIM, s.r.o., Turnov, a specialist in the manufacture of machines for glass fibre production and processing.

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The Merry Crystals company offers traditional handmade Bohemian crystal in 24 % PbO Titanium quality. In conjunction with this new proprietary technology and the skills of our glassmakers, decorators, cutters and engravers, we are able to achieve distinctive optical quality in our products. Our new 2019 collection introduces wholly new colour shades in unique (rare) shapes and novel decorations, which combine a deep cut with precise engraving skill. A new engraved gold collection has also been designed. We are inspired by history, which is presented in a new modern lite design. We offer a wide range of a luxurious utility crystal products – a whole range of tableware e.g. wine sets, whisky sets, aperitif sets, bowls, vases and containers. Everything is available in clear crystal, as well as in violet and pink shades, or with engraved gold workmanship. We work with designers to create and produce luxurious lights, crystal sculptures, sports trophies and designer domestic crystal products.

www.merry-crystals.cz

Kaolin mining and dressing is the core programme of the companies of LB MINERALS, s.r.o., Sedlecký kaolin, a.s., Božičany, and Kaolin Hlubany, a.s., Podbořany. In addition to kaolin mining and dressing, LB MINERALS, s.r.o., also is concerned with feldspar mining and dressing.

AUTOMATION ON THE RISE The Czech glassmaking industry is a sector with the highest degree of automation. In the past few years, it has increasingly been incorporating robots in its production lines. The industrial sector with the highest level of automation is packing glass production. “The human hand first touches our products practically no sooner than when they are used, and our plan is also to introduce robots in other manufacturing sections. In our plant in Kyjov, for example, we are using a greasing robot,” says Milan Kucharčík, Member of the Board of Vetropack Moravia Glass, the Czech Republic´s number two in the packing glass manufacturing sector. The robot has replaced a mechanic whose job was bottle mould greasing.

Vetropack is currently working on the robotisation and digitalisation of administration work and processes. In 2014, AGC Flat Glass Czech invested CZK 1 billion in the installation of the globally most advanced glassmaking technology. Group AGC, which has its manufacturing plant in Teplice, north Bohemia, can make, for example, glass facades, into which photovoltaic cells are sealed. “We´ll propose to the client, and will calculate what output the installation will have. We ourselves have such photovoltaic cells installed on the overhanging facade of the building of our research centre in Belgium. We also supplied such photovoltaic cells for the roofing of parking spaces in Milan,” says Marcela Anglov of AGC Flat Glass Czech. Another firm which bets on specialised production is EcoGlass, a manufacturer of optical elements for lighting appliances. Its glass lenses and parts are used in airport navigation systems, luxury car headlights, and concentration solar power plants.

INTERIOR GLASS Kolektiv Ateliers in Nový Bor has been in the art glass market for more than ten years. Its specialisation is lighting installations, interior art solitaires and atypical designs of art glass in architecture. One such project was the reconstruction of glass ceilings and the cupola in the National Museum in Prague. “To accomplish the contract we had to develop a special technology of injecting the dies between the glasses and baking them so as to make the ceilings and the cupolas accessible from both below and above. All our projects, which also include historical buildings and churches, are exactly tailored to the customer´s requirements. The final appearance of those projects fully agrees with the outlines of designers with whom we cooperate close-

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INNOVATION AND ORIGINALITY OF CZECH MANUFACTURERS The firm Lasvit, founded by Leon Jakimič in 2007, specialises in the manufacture and installation of lighting fixtures, glass artworks, art elements and objects. Its collections, winners of a number of prizes, have made a breakthrough in the world of design and revived the famous Czech glassmaking tradition. The company’s aspirations are to create exquisite lighting fixtures and glass objects for a discerning clientele all over the world. Lasvit has added new freshness to its products and started a new era of Czech glassmaking. For example,

WILL GLASSMAKING SURVIVE THE CORONAVIRUS PANDEMIC? Glassmaking has experienced an unprecedented boom in recent years. Currently, however, glassworks have found themselves in a difficult situation with many of them fearing that the coronavirus pandemic may mean the end for them. One of the first to realise this was Moser glassworks of Karlovy Vary, one of the most distinguished players in the Czech glass and ceramics market, which, in spring 2020, announced production restrictions. Moser´s main buyers are foreign clients, especially Asian importers, who were among the first to be hit by the spread of the coronavirus pandemic. While a large part of Moser´s output goes for export, an important proportion of its production is sold to foreign tourists visiting the Czech Republic. The closing down of the border therefore means a massive blow not only for this glassworks. Export is highly important also for other large glassworks, such as Preciosa, BOMMA, Rückl and Lasvit, as well as most of the smaller domestic glassmakers. In recent years, exports of the Czech glass and ceramics industry have accounted for up to 90 % of the revenue of domestic glassmakers, according to the Association of the Glass and Ceramics Industry of the CR. Sales, however, became frozen not only in the Czech Republic, but also in other countries. Tourism has subsided and so has the prosperity of glassmaking, with domestic sales unable to replace the loss of foreign demand.

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Photo: BOMMA archives; www.freeimages.com

ly,” says Michal Vlček, chairman of the board of Kolektiv Ateliers. Another manufaturer of interior glassware is Kavalierglass Company, maker of household, laboratory, and industrial glass. The glassworks has developed glass bricks from borosilicate glass. Their size is the same as that of the conventional building brick. “Glass bricks, whose production started in 2016, are not used as a conventional building element, but are used as decoration elements or partition walls. The bricks were used in a part of the exposition of the Czech Republic at the international exhibition in Shanghai in 2018,” says Jana Musilová of Kavalierglass.

in 2018 LASVIT scored success with its exposition at the Week of Design Exhibition in Milan, where it won the main prize, the Milano Design Award. Original glass installations and sculptures bearing the Lasvit trademark are to be seen in public places and spaces of prestigious hotel chains and business complexes (e.g. The Ritz-Carlton Residences in Singapore, Hyatt Capital Gate in Abu Dhabi, The Shangri-La Bosphorus in Istanbul, Four Seasons in Moscow, Quadrio in Prague, Sake No Hana Restaurant in London, The New York Palace Hotel, etc.), as well as in luxury and private residences all over the world. One of the best known designers in the Czech Republic is Rony Plesl, famous for his innovative glass design and interesting stone sculptures, as well as interior designs and drawings. Currently Plesl’s attention is focused on uranium glass, the production of which has been suspended in most European glassworks. His works are to be found all over the world, including, for example at Walt Disney World, where many glass sculptures by Rony Plesl are installed, and in Hamburg, Germany, where a glass tower designed by Plesl is to be seen. Martin Janecký is a real master of glass art. No one else in the world has created such amazing glass sculptures as he has. He is what we could call a glassmaker-cum-sculptor. He needs no moulds to make the wonderful objects – he simply shapes the blown-out glowing matter by hand. He is represented by one of the most prestigious galleries in the USA and his works are gems in Elton John’s collection. Bomma is really one of the few glassworks in operation, if not the only one, which came into being in the Czech Republic after 1989. It was built at Světlá nad Sázavou and at that time employed workers from a nearby glassworks, which had closed down after a century-long glassmaking history. Bomma opened in June 2012 as a manufacturer of modern crystal drinking and decorative glass with robotic decor, designed for it by famous artists such as Arik Levy, Maxim Velčovský, Olgoj Chorchoj, Rony Plesl, Jiří Pelcl, and František Vízner, and studios such as Koncern and DeForm. A few years ago, the glassworks started the production of lighting fixtures.

A N EW LO O K AT T R A D I T I O N Our design is based on traditional Czech glass. We have broken away from redundancies and throw-backs. We have adjusted everything to our own taste. We seek simplicity, functionality, contrast and colour combinations. However, we have preserved the strongest feature, namely quality handwork, which has been synonymous with the Czech glassmaking craft for several decades. "We create non-traditional glass in the traditional way."

Contact information

Contact Person

BĂlkova 855/19 Praha 1 11000 Czech Republic Mobile: +420 602 456 787 E-mail: evpas@evpas.cz www.evpas.cz www.evpas-bohemiaglass.cz

Pavel ZlatohlĂĄvek Executive Director E-mail: evpas@evpas.cz Mobile: +420 602 456 787

MEDICAL DEVICE MANUFACTURE IS ONE OF THE MOST INNOVATIVE INDUSTRIES The manufacture of medical devices has a long and very successful tradition in the Czech Republic. This is evidenced by a number of worldwide Czech patents and innovative products and inventions such as polarography, contact lenses, biodegradable stents, etc. projects. This naturally requires closer collaboration of firms – members of the Association.

TASKS FOR THE ASSOCIATION

Some of the latest Czech products priding themselves on high quality are hospital beds, armchairs and other medical devices, as well as implants. One of the world´s largest production lines turning out high-standard hospital beds is to be found in the production halls of the Czech firm LINET, which exports its products worldwide and is the most successful exporter in the area of medical devices. Another international success was achieved by the Czech manufacturer of microscopes. Owing to the small Czech market, most other manufacturers in the healthcare sector, too, are export-oriented and sell their products to countries all over the world. The Czech export leader in the sector is LINET, with its affiliations in many countries. Its most successful export markets are the countries of the former Soviet Union, the South American markets and traditional European states, such as Germany, Italy, and Spain. In general, the trend is to continuously improve and innovate medical devices and other equipment. This process always takes place in collaboration with physicians, universities, etc. Another trend on which AVDZP (Association of Manufacturers and Suppliers of Medical Devices) wants to focus, partly thanks to the foreign development cooperation project, is the preparation and realisation of a more comprehensive offer of the products of our members, for example, the construction and furnishing of hospital wards, operating theatres, field hospitals, and also larger

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The Association´s emphasis is on research that will lead to high technical parameters and innovativeness of new products and methods of treatment. Medical device manufacturers know that good medicine cannot do without technical devices. Medical practitioners themselves say that progress in medicine requires innovation, such as visualisation systems, equipment and instruments for microsurgery and the use of computers. That is why manufacturers also focus on other branches, such as nanotechnology and microsystems for the construction of apparatus, equipment for the minimisation of invasive methods, introduction of information technologies in healthcare, urgent medicine, cardiac surgery and other branches of modern medicine. To achieve these aims, firms must collaborate with university research workplaces and top doctors and hospitals. In their research projects, firms are also using different forms of support and grants controlled or administered by the Ministry of Industry and Trade. The Association also collaborates with the academic sphere.

CZECH FIRMS JOIN IN FIGHT AGAINST CORONAVIRUS Firms are putting into practice new technologies and adjusting their production to new requirements. They often switch their production, despite the potential risks associated with the launch of new products and the need to have them certified so that they can be sold at home and in other countries. The certification process, confirming the required parameters and properties of the product and its absolute safety, often takes up to several months. Especially in the case of health protection, the product must undergo a number of tests. An advantage is having people with experience and knowledge of all the legislative requirements. One such person is, for example, Prof. Karel Volenec of the Ella-CS firm, which operates successfully on the international medical market. Prof. Volenec forged ahead with the development and certification of a swab for sampling used in coronavirus testing. “The swab, seemingly a simple thing, must fulfil a number of functions. Besides absolute medical safety, it must be designed so as to ensure accurate examination. For practical reasons, we test both its flexibility and the material used at its tip,” explains Prof. Volenec. A manufacturer of the prototype was promptly found: ISOLIT Bravo, a firm in Jablonné nad Orlicí. Another Czech firm, Robot Protect, supplies protective sleeves for robots, machines and automation equipment. Last April, it switched part of its production to the manufacture of protective suits and sleeves for people. Hundreds of its protective suits have been supplied to the Czech Mountain Rescue Service. CzechInvest Agency has published a list of Czech manufacturers of protective devices with the necessary certification, which are assisting in the struggle against the coronavirus pandemic. The list is available at https://spojujemecesko.cz/projekty/cesti-vyrobci-ochrannych-prostredku/.

D o i n g B u s i n e s s i n t h e C ze c h R e p u bl ic I I. C ze c h In du s tr y

Photo: LINET archives; www.freeimages.com

SUCCESSFUL FIRMS WITHIN THE SECTOR These are mostly companies whose production is closely linked with their own development, thus showing their way to success in competition with rival firms. An example is ELLA-CS, s.r.o., a purely Czech company without any foreign capital, which operates worldwide. It is represented in more than 70 countries all over the world. The company specialises in the development and production of stents for the gastrointestinal tract, which include oesophageal stents, pyroduodenal stents and biliary and colorectal stents. ELLA-CS is the only manufacturer of the following medical devices: biodegradable stents – a globally unique product, allowing a new approach to the treatment of benign oesophageal strictures, without the need for stent extraction; danis stent – a unique medical device used for stopping acute bleeding of oesophageal varices; extractor – original instrument for the removal of oesophageal stents which are no longer needed within the oesophagus. On the basis of own development, BMT Brno supplies a wide range of steam, hot-air, and chemical sterilisers, laboratory driers and incubators. The firm has a tradition of more than 80 years and more than 40 years of export experience. BTL, founded in 1993, is one of the world´s largest manufacturers of medical equipment. It develops and manufactures physiotherapy equip-

ment, such as electrotherapy devices, ultrasound devices, lasers, magnetic therapy devices, lymphatic drainage instruments, fullbody and limb bathtubs, therapeutic beds, gynaecological chairs, pneumological and cardiological devices, patient monitors, infusion equipment, devices for general practitioners, and aesthetic medicine instruments. EGO Zlín is an important manufacturer and supplier of complete biological protection systems, logistic decontamination systems, urgent medicine devices and long-term care equipment. The firm is working on development programmes based on the specific requirements of clients or prompted by urgent worldwide needs. MZ Liberec is continuing its tradition of medicinal and technical gas distribution system manufacture dating back to 1958. The company designs, manufactures, supplies and installs medicinal and technical gas distribution systems. An indivisible part of its production programme is the manufacture of end distribution elements, such as ramps, source bridges, revolving ceiling, systems and medical equipment for operating theatres, intensive care units, anaesthesiology and resuscitation departments, and standard inpatient wards all over the world. The company also ensures the delivery and assembly of medicinal gas distribution systems, i.e. oxygen generators and compressors, vacuum, reduction, and evaporating stations.

AVDZP/CZECHMED AVDZP members currently employ nearly 9 000 people. Their average revenue is CZK 19 billion per year, with exports accounting for more than 40 per cent. In the case of certain manufacturers, it is more than 80 per cent. Their medical device portfolio is wide, comprising approximately 500 000 items, from dressing material to orthopaedic implants and cardiostimulators. Another organisation is CzechMed, the Czech Association of Manufacturers and Suppliers of Medical Devices, which is also a member of MedTech Europe, the European association representing the medical technology industry, as well as CZEDMA, the Czech Association of In Vitro Diagnostic Medical Manufacturers and Suppliers. Export trade in medical devices is showing a favourable balance.

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PONTEX Ltd.

Bezová 1658, 147 00 Praha 4 Czech Republic e-mail: pontex@pontex.cz www.pontex.cz

DESIGN, CONSULTING, ENGINEERING SERVICES AND STRUCTURAL DIAGNOSTICS

• Bridges and Footbridges • Motorways, Highways, Roads • Ultra-high Performance Concrete • Structural Diagnostics • Electro Engineering • Civil Engineering • Structures of Buildings • Foundations • Bridge Inspections • Supervision, Independent Check • Project Management PONTEX Consulting Engineers Ltd, based in Prague, the Czech Republic, was established in 1991 by senior engineers from the Pragoprojekt Bridge Division with long-term practical experience both in Czechoslovakia and abroad. Core fields of activities are linked with bridges of all types: reinforced and pre-stressed concrete bridges, steel and composite bridges, pedestrian bridges, rehabilitation and strengthening. PONTEX offers complete elaboration of the design

and consultancy services (feasibility studies, preliminary and final design, detail drawings, site supervision, inspections, monitoring, assessment, structural diagnostics). Principal emphasis is laid on high technical level, quality assurance, personal responsibility of trained staff and longterm fair relations with clients. Foreign experience and references include Germany, Austria, Slovakia, the United Kingdom, the Netherlands, Poland, the Middle East, Malaysia, Taiwan, Azerbaijan, and Russia.

Certified Quality Assurance System EN ISO 9001:2016 and EN ISO 14001:2016.

D o i n g B u s i n e s s i n t h e C ze c h R e p u bl ic I I. C ze c h In du s tr y

BUILDING INDUSTRY IN TURBULENT TIMES How was the Czech building industry doing at the time of the outbreak of the coronavirus pandemic? In that period, the industry was doing relatively well in comparison with other EU countries. In the spring months of 2020, building production in real terms declined slightly, in March by a mere 2.3 % and in April by 4.6 % year on year, less than expected. In the EU-27 as a whole, the decline in the critical months of March and April was 13.4 % and 24.0 % respectively. Czech civil engineering even maintained positive values of index 113.5 in April and 101.2 in May, although in the EU the values declined by about one-fifth. In the entire 2nd quarter, the building industry showed a nearly 3 % growth in comparison with the preceding year. However, according to building firms, in 2020 the building industry is expected to decrease by 3.0 % and in the following year by 1.5 %. This year, a greater fall, by 3.9 %, is expected in building construction. This year, civil engineering is preparing for a 1.8 % fall. Small building firms predict a 2.4 % fall in 2020, while big construction companies expect a much greater decline, of as much as 3.3 %. Next year, the situation in the industry is expected to continue the downward trend due to the coronavirus pandemic, which in the second quarter recorded a 6.5 % fall in comparison with the 1st quarter of 2020. As the Czech government has already taken measures to ensure the continuation of strategic infrastructure projects, public procurement will be carried on and will be pushing the entire building sector forward, which will help renew the growth of the domestic economy. The positive development in construction, however, could be endangered by the continuing shortage of skilled labour. The crisis in construction has not affected employees. A mere 5 % of building firms have been obliged to dismiss people in this connection. Most often, dismissals concerned lower-level management and workers in manual positions.

the outflow of foreign workers, building firms have great problems in meeting the requirements of their clients and fulfilling their contractual obligations. Next year, the situation is expected to change radically with the falling number of new projects ordered by private persons and new contracts signed. This will probably mean keener competition and cut-downs in the bid prices of construction work. Altogether 797 proper notifications of contracts signed were issued in the 1st half of 2020, about the same number as in the same period of the previous year. The total expected value of the contracts notified in the 1st half of 2020 was CZK 78.9 billion, 16.0 % more than in 2019. The increase in the value was influenced by a large contract worth CZK 10.8 billion for construction work on the Prague Underground Railway by the Dopravní podnik hl. m. Prahy construction firm, announced in January 2020. In the category of contracts worth less than CZK one billion, this means a 4.4 % decline year on year in the value of contracts notified.

INTENSIVE CONSTRUCTION IN ALL SEGMENTS This year, relatively intensive construction continues in all segments. Investors are completing projects under construction, so as to be able to use them or, in the case of developer apartment construction, to sell them. Due to the labour shortage caused by the Covid-19 pandemic, augmented by

BUILDINGS WITH NEARLY ZERO ENERGY CONSUMPTION According to a new regulation entered into force in 2020, new buildings must be built as structures with nearly zero energy consumption. Reducing the energy intensiveness of building is essential, because the operation of buildings accounts for approx-

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three to nine years, and this in a situation where demand for building materials is growing, partly in connection with the plan to build new transport infrastructures.

imately 40 % of total emission generation in the Czech Republic. The regulation is one of the cornerstones in the mosaic of measures which must be met if the country wants to achieve carbon neutrality. There are actually only two instruments to attain this goal: emission-free energy production and consumption reduction. New buildings with nearly zero energy consumption should help reduce energy consumption by 33-56 PJ per annum in the residential sector and by 24-31 PJ in other types of buildings. This may significantly save costs to property owners, whose energy consumption may be reduced by up to 20 %. And it may also assist the development of renewable energy sources. For years, the Ministry of the Environment has been supporting energy-efficient buildings by its New Green Light to Savings programme. Two years ago, the Ministry offered builders a grant for heat-insulation of their houses built by self-help, not only in the passive, but also the low-energy standard. This doubled the interest of house builders in obtaining construction grants. Over a period of six years, 49 000 applicants with total investment costs amounting to more than CZK 10.6 billion obtained grants from the New Green Light to Savings programme. In addition, municipalities can obtain contributions for the construction of public buildings in the passive standard from the funds of the Environment Operational Programme. The fact that no new quarries or sand pits have been opened in the Czech Republic since 1990 may have a negative impact on the availability of building material in future. Construction firms say that this may push building material prices upwards. The Ministry of Industry and Trade has therefore asked the Czech Geological Service to prepare an analysis of the service life of building material stocks in existing quarries and sand pits and to make a survey of potential mining localities with an emphasis on the feasibility of their opening, due to the complicated construction permission proceedings. The aim is to prepare new deposits for opening, to compensate for those whose extraction capacity is running out. An important consideration in these plans is that, from the environmental point of view, it is much better to quarry smaller deposits rather than big ones. This approach is a reaction to the current situation, where a number of localities will terminate permitted extraction within

In August, building production declined by 9.7 % year on year in real terms, with 3.0 % fewer apartments being started and 1.7 % fewer apartments completed. The market still seems to be concerned about the future and is still lacking foreign workers. Nevertheless, the building authorities have issued 3.0 % more building permits year on year, and this is a good sign. Unlike previous figures, this number speaks for the future and is moderately optimistic. However, for the whole year economists expect a decline in building production by 2 to 3 per cent.

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More at: Association of Building Entrepreneurs of the Czech Republic www.sps.cz

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TRANSPORT INFRASTRUCTURE Preparations for the construction of a new transport infrastructure have gained momentum in the past five years, with the Ministry of Transport planning to continue these efforts. The aim is to keep the preparations going, so as to prevent the situation which occurred in 2011 and 2012, when the economy fell drastically, which had further negative consequences. In 2011, only CZK 1.3 billion was invested in the preparation of projects. Since 2016, these investments have been more than CZK 3 billion, this year even around 5 billion. Our aim is to maintain the volume of financial investments in 2021 at this year´s level. The Ministry wants to continue the preparation of projects for the construction of the D3 motorway in south Bohemia, the D35 backbone motorway in the north and work on the Hradec Králové D11 motorway and the Karlovy Vary D6. Work to finish the reconstruction of the D1 motorway is nearing completion. In the framework of the D4 motorway to Písek, which is a PPP project, projects for the last few sections will be completed soon. On the railway, we are continuing preparations for the TEN-T network, on the sections Brno – Přerov, Plzeň – Domažlice, Kolín – Havlíčkův Brod – Brno, Velký Osek – Hradec Králové – Choceň, the Ostrava railway junction. Large-scale projecting is in progress on the section VRT Praha – Běchovice – Říčany, where tendering for construction proceedings documentation and EIA is nearing completion as a joint public venture. Work is continuing on projects to construct station buildings and railway crossing securing systems. The plans also include the building of smaller water infrastructure projects, for example, in the form of recreational docks on the Vltava, the Labe, and the Baťa Canal. The plan is to start the construction of up to 150 km of new motorways and 1st class roads next year.

PROSPERITY OF THE FIRM TOS VARNSDORF TOS VARNSDORF is one of the world´s leading engineering companies engaged in the development, production, sales, and servicing of machine tools. The firm has its own construction team for the continuous development of machines and a strong production base, ensuring its own production. TOS VARNSDORF also provides services under cooperation schemes (custom metalworking, measuring and chemical-thermal treatment of engineering products). Its specialisation is the manufacture of horizontal milling and boring machines and machining centres. The company was founded as far back as 1903. Its products, exported to all the world´s industrialised countries, reflect the many years’ experience of several generations of technicians and workers and the current high technical standards of the firm, which competes successfully even in the most discerning international markets. Its largest clients are the EU states, especially Germany, Poland and Italy, followed by the Russian Federation, Canada, and the USA.

The company is continuously improving its services. Its customers value most the prompt delivery of spare parts, the presence of a service technician in the region and expert assistance of the dealers. To be able to provide all these services, TOS VARNSDORF is building spare parts warehouses and service bases for the technicians, and ensuring the continuous raising of the technical knowledge of its sellers. With these activities, the company is trying to support its exports, where the core of success is the high reliability of the machines.

PARTICIPATION IN INTERNATIONAL UNDERTAKINGS

THE TOS VARNSDORF TRADEMARK IS WELL KNOWN ALL OVER THE WORLD The TOS VARNSDORF trademark is familiar to customers in all the inhabited continents of the world. Since 1948, the firm has manufactured nearly 20 000 machine tools, a great majority of which has been exported. Machine tools made in Varnsdorf can be found working in South and North America, throughout Europe, in Russia and China, where the firm was one of the founders of the first Chinese-Czechoslovak machine tool manufacturers, and in factories in India and several African countries, mainly in Egypt and the South African Republic, as well as in places which are relatively exotic as regards machine tools, such as Iceland, the Philippines and the Marshall Islands. The firm’s customers naturally also include a number of supranational companies and renowned firms, such as SAAB (Sweden), ABS Pump AB (Sweden), M.E.C.A.S.E. (Spain), Goodrich Krosno (Poland),CATERPILLAR MAGYARORSZÁG AG (Hungary), ŠKODA AUTO (Czech Republic), METROWAGONMASH (Russian Federation), BELAZ (Belarus), McDonald Steel (Canada), FTV PROCLAD (UAE), CHINA STATE BUILDING (China), BHARAT HEAVY ELECTRICALS (India) and others.

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TOS VARNSDORF participates regularly in even the largest world fairs, such as EMO (in Hannover and Milan), IMTS on the American continent in Chicago, and in China – alternately CIMT in Beijing and CCMT in Shanghai. Representatives of TOS VARNSDORF can be met regularly at the Metalloobrabotka exhibition in Moscow and naturally at the International Engineering Fair in Brno, the Czech Republic. Each year, the company organises an international conference for its sales representatives on the premises of its parent company, where some 50 of the salesmen based in more than 25 countries meet to become acquainted with what is new in the company´s production programme and to discuss the clients´ latest requirements and the situation in the markets. TOS VARNSDORF is known as a company which regularly comes to the market with new products that surprise buyers with their parameters and performance. Its latest achievements in the area of development and research include a new series of its WHT 110/130 machining centres and WVM 2600/3600 portal machining centres. Details, not only about these new items, can be found at www.tosvarnsdorf.com.

D o i n g B u s i n e s s i n t h e C ze c h R e p u bl ic I I . C ze c h I n du s t r y - C ze c h Fo o tpr in ts

FENIX GROUP FURTHERS COLLABORATION WITH SMART GRID Fenix Group a.s. is not only one of the largest Czech manufacturers of electric heating systems, but also an important exporter of its products to 70+ countries worldwide. The core of the Group´s production programme is floor and ceiling heating systems, systems for outer surface heating, gutter, eave and pipe defrosting, radiant panel heaters, including glass and ceramic panels, and convector heaters. The firm, which 30 years ago was started in a small garage making electric panel heaters, is today an important player in the market with a turnover of more than CZK one billion. In 2019, FENIX Group showed a growth of more than 9 %, with revenue of over CZK one billion, specifically CZK 1 727 000. “The record-high results are largely due to the Czech market. Nevertheless, FENIX Group continues to be strongly export-oriented with affiliations in seven countries – Slovakia, France, Spain, the UK, Norway, Poland, and Germany,” says Cyril Svozil, Director and owner of the holding. For example, FENIX also sells its floor heating systems to Saudi Arabia, Australia, New Zealand, and South and North Americas. Since the year 2000, mainly due to the steadily growing number of low energy houses being built, the company has increased its sale of radiant panel heaters more than sevenfold. “The ideal of a fully electrified house with nearly zero energy consumption emerged in 2013. Such a house is connected to the ordinary distribution network, which, however, at the operator´s command, will reduce power offtake from the grid or will go over into island mode. We have also successfully tested modes of controlled power supply into the grid. By another command, it is possible to increase consumption and store power in a battery device. An integrated roof photovoltaic power plant thus can ensure some 30 % of annual consumption through its own production,” Svozil explains. Most of these heaters are exported. To meet the demand, over the past three years the Group has invested more than CZK 60 million in the construction, in Jeseník, of a robotised paint shop and an assembly line. As a result, it can double the production of radiant panel heaters. In 2016, the firm invested another CZK 11 million in the adjustment of the assembly line and fitted out a new metalworking workshop. The company has bold plans: to put into operation an electrified family house with nearly zero energy consumption later this year. It

has already tested the project in the building of the firm’s office centre in Jeseník. The plan for 2020 is to make the largest investment in the history of the firm: to build more automated and robotised workplaces in production and start their own production of AES batteries. This plan also comprises the construction of a new factory in Slovakia, expansion of production in Spain, and a new acquisition in Serbia.

RESEARCH DEVOTED TO BATTERY STORAGE Energy independence? The target is battery storage. This project has been tackled by the Fenix affiliation AERS since 2016. “AERS has developed an original ‘in-house’ modular 10-50 KwH battery storage facility in its Fenix production plant in Jeseník, where it realised a top-standard station with a capacity of 640 kWh. Total investment in this project is CZK 54 million. “The construction of this modular storage facility started in March this year,” Svozil adds. “In 2013, we started with investment in the automation and robotisation of our workplaces, and the experience we gained in their operation inspired us with the idea to use battery storage facilities. This is very useful because it often happens, even several times a day, that the system is affected by mini outages, which may cause disconnections, and may cause the disconnection of even expensive and sensitive technologies. This type of SAS therefore has several essential functions: to reduce the reserved maximum of energy offtake by 35 %, ascertain the observance of the ¼-hour maximum without cutting down consumption, continuously monitor the quality of input energy and, in the event of irregularity, ensure good delivery into the inner net. As regards the future of power generation, we expect that the so-called decentralised power production based on renewable sources will become closely linked with conventional power generation based on the atom. To achieve the required flexibility, battery storage will be used on a large scale, both as regards large-capacity facilities and, in particular, smaller, family house and company facilities capable of changing their energy offtake during the day directly inside the house,” Svozil says.

Fenix Trading has become an official partner of Czech participation at EXPO 2020 in Dubai. The United Arab Emirates have chosen as their motto the theme “Connecting Minds, Creating the Future”, and FENIX Group will be there. As a part of the rotating exhibition, which will be devoted to “Czech Energy”, Fenix will be displaying two projects for the whole month of March. The first will be the model of a house of 2020 standards as an active element of the energy system, in which the Fenix energy concept will be presented. The second project will be the AES 10 accumulation station of AERS s.r.o. company. For the whole duration of the international exhibition, i.e. from 1 October 2021 to 31 March 2022, the firm will loan an artefact to the Czech Pavilion, made by Jakub Nepraš and named “Energy Fenix”. Jakub Nepraš is a visual artist who combines new media in creating what he calls “video sculptures”. He displays his works all over the world and is the holder of several international awards.

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EXPLOSIA IN GOOD CONDITION Explosia is a traditional player in the explosives market in the Czech Republic and Europe. Its bestknown product, Semtex, has become the synonym for plastic explosives worldwide. However, Explosia in Pardubice is also an important manufacturer and exporter of many other products used in the defence and security industries and in scientific research. Being 100 % state owned, its stability is fully guaranteed. SEMTEX The Semtex plastic explosive is an integral part of the past and present of the company. It is a simple but, at the same time, well thought-out plastic explosive which does not lose its properties even after several years of exposure to extreme climatic conditions. Currently Explosia offers some ten different types of Semtex, dependent on customer requirements. Explosia, however, also manufactures other products, e.g. Semtex Razor, very popular with the Police, serving for the cutting of metals and other materials, or Semtex Desintegrator, used for the disposal of suspicious luggage, for example at airports.

PRODUCTS The company´s great asset is its own Research Institute, a competitive advantage which helps to maintain its position at the top of explosive manufacturers internationally. The Institute has given rise to a number of products. One of these, for example, is its DETEX

set, used for the detection of persons carrying Explosives, which can be used at airports and in logistics centres. In addition, its core products in recent years have been fully combustible charges for large-calibre ammunition. The task of the propellant charges is to fire the grenade so that it strikes the target accurately. Its advantage is that, being fully combustible, no spent cartridges are left behind after shooting. Lovex smokeless gunpowder and Vesuvit black gunpowder are also historically popular among marksmen.

THE FUTURE In the past few years, the company has taken essential steps to make its production more efficient. Its aim is not record-high revenue, but stable profit and top quality products. Explosia has invested millions of euros in new production lines, efficiency gains and technical improvements. Explosia stands firm in the explosives market and is prepared to continue exporting its products throughout the world. The company product portfolio and contacts can be found at www.explosia.cz.

Fully combustible charges for large-calibre ammunition manufactured by Explosia, Pardubice.

Semtex is one of the most famous products of Explosia Company.

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Explosia´s gunpowder is also very popular.

Czech Business and Trade

PROFESSIONAL ECONOMIC QUARTERLY WITH A LONGER THAN 90-YEAR TRADITION, WHICH INFORMS ABOUT THE STANDARD AND PROSPECTS OF THE CZECH ECONOMY IT IS DESIGNED FOR FOREIGN PERSONS INTERESTED IN BUSINESS IN THE CZECH REPUBLIC CONTENTS: topical information about the business environment, the industrial sectors and the different regions, and presentation of prominent Czech firms with good prospects PRICE: Europe by air mail: Overseas by air mail: Czech Republic:

EUR 68/year EUR 75/year CZK 1 000/year

ORDERS AT: www.ppagency.cz/sbs.html

OPTICAL CABLES FROM DĚČÍN CONNECT THE WHOLE WORLD With many years of experience, Kabelovna Děčín Podmokly, s.r.o. (KDP) has traditionally been ranked amongst the renowned European cable manufacturers, but thanks to massive investments from recent years, the company has become one of very few European producers who possess latest technologies. Kabelovna is a reliable partner of many global telecommunications network providers.

Stringent European standards

KABELOVNA is a given certainty Bergmann plants were established in the newly built industrial zone, on the grounds of Rozbělesy village. The wise incentive of the former municipal council of Podmokly was successful, as extensive construction works had been initiated already in 1909. One year later, literally on a green field, a modern eletrotechnical plant was developed, which was the largest industrial company of the former district of Děčín at that time. The entire site consisted of individual production areas: foundry, rolling mill, cable works and engineering plant. Later, the company was divided into several companies. Since then, KABELOVNA has experienced many owners. Today it is a part of the important cable family Wilms Group, which allows KABELOVNA to further invest and grow even more.

The current KABELOVNA is a modern company that can produce even very complex cable designs and successfully sell them to the whole world. „Continuous innovations in the design of cables are not only required by our demanding customers, but also by stringent standards,“ says Lenka Mádlová, Sales Director of the company. „Because our cables are also used in construction industry, they are covered by the Construction Products Regulation (CPR). This regulation stipulates how the cable is affected at combustion. CPR has 7 classes of reaction to fire, with class A being the strictest in flame retardant limits and class F on the other hand is the least stringent. In the first phase, our cables were successfully tested by an accredited testing laboratory as compliant with class E. At present, all our efforts are aimed at meeting the requirements of higher classes. We truly believe this will help us to contribute to greater fire safety of buildings and – in case of fire – our products will facilitate saving lives, health and property“.

We conquer the world The increase in optical fibers production by almost 100% (year 2018: 406 thousand, year 2019: 810 thousand) is a clear evidence of big plans.

„Europe already knows and uses our cables. We are therefore expanding to Middle East, as these regions offer great sales potential. Besides optical and metallic cables, we also deliver metallic cable assemblies. We are able to make cables as well as cable assemblies in top quality and at reasonable prices. „We have been doing this for 110 years, so we really have the knowledge,“ adds the sales director with a smile on her face.

Thanks to large investments in the past years, we have strengthened our position amongst European leaders. In 2019, we produced more than 31 thousand kilometers of optical cables and 64 thousand kilometers of metallic cables. We have big plans for the future and we expect further increase in production of optical cables. We are an attractive company for young engineers as we can offer them excellent background for further personal development and growth. Ing. Lenka Mádlová, Sales Director

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KABELOVNA Děčín Podmokly, s.r.o. Ústecká 840/33, 405 33 Děčín E-mail: sales@kabelovna.cz www.kabelovna.cz

World connecting cables

Manufacturer of optical and copper cables, cable assemblies and heating systems KABELOVNA Děčín Podmokly, s.r.o. Ústecká 840/33 I 405 33 Děčín, Czech Republic E-mail: sales@kabelovna.cz www.kabelovna.cz

D o i n g B u s i n e s s i n t h e C ze c h R e p u bl ic I I . C ze c h I n du s t r y - C ze c h Fo o tpr in ts

ATV ZETOR GERLACH 4 X 4 FROM ZETOR ENGINEERING ZETORs are no longer just the legendary red tractors made in Brno. This is fully confirmed by the new generation “ATV ZETOR GERLACH 4x4” armoured vehicle, a new product of the domestic defence industry from ZETOR ENGINEERING. Gerlach, a new generation tactical armoured vehicle, provides all the advantages of technical progress, meeting the latest technical and construction requirements for this category of vehicle. As regards the size, general construction and open electronic architecture, it visualises the potential development of new evolutionary cycles. Gerlach not only meets the current needs of the armed forces, but at the same time is fully adaptable to new requirements which may be imposed in coming decades. The vehicle uses exclusively EU components, including the successfully tested domestic Zetor chassis. For the client, this means seamless logistics, availability of spare parts and low service costs. The basis of the propulsion system is the German-made 6-cylinder MTU engine, power output 240 kW (326 HP), known for its above-standard torque of up to 1300 Nm, which is extremely important especially for use in difficult terrain, for which Gerlach is actually designed. The engine works with a special 6-speed automatic gearbox to maximise its performance over the full range of revolutions. The vehicle displays above-average capabilities in difficult terrain on different surfaces, including sand, mud, or snow. Besides its special chassis and massive toque, this is made possible by the wheel size of 14 R20, with central tyre inflation and light height of up to 465 mm. Gerlach has proved its capacities in the terrain during tests carried out by the Military Technical Institute of Ground Troops, VTÚPV Vyškov Division, where it overcame a 0.5 m step and a 1 m wide trench and waded in mud 1.2 m deep without previous preparation. The vehicle managed to

overcome the goal of 100 % incline, coping with an approach angle of 45 degrees. The actual heart of the vehicle is its cabin. This is conceived as an overpressure armoured capsule, resistant to improvised explosive devices (IED), mounted independently on the chassis of the vehicle, thus protecting the crew in case of damage by a mine. The vehicle provides space for up to 6 crew members. Their safety is also assured by additional modular armour plating and a separate double flooring with an anti-mine “V” shield. Gerlach provides the crew with ballistic protection at NATO STANAG AEP-55 4569 Volume 1 Level 3, which means that the crew need not fear shooting from hand-held assault weapons used in current conflicts. The anti-mine resistance of the vehicle is assured at NATO STANAG 4569 AEP-55 Volume 2 Level 3A, 3B. Gerlach can thus resist an up to 8 kg TNT anti-tank mine attack under the axle and under the cabin. This level of protection has been successfully tested by the Beschussamt Ulm State Testing Laboratory.

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III.

HOW TO DO BUSINESS IN THE CZECH REPUBLIC

FORMS OF BUSINESS ACTIVITIES IN THE CZECH REPUBLIC Czech or foreign natural persons or legal entities can perform business activity in the Czech Republic if they comply with the Czech law. The condition is generally the issuance of a Czech trade license regulated by the Czech Trade Licensing Act or another specific permit regulated by a number of specific acts, depending on the type of business activity. The exception from this condition applies to entrepreneurs from another EU member state in case of temporarily provision of services based on the trade licenses issued in such member state. NATURAL PERSONS AS ENTREPRENEURS A natural person or entrepreneur is, according to Czech law, a person who conducts business on the grounds of a trade licence, a person who conducts business using a special licence, or a person who practises agriculture and is registered according to a special regulation. Citizens of other countries are allowed to conduct business in the Czech Republic under exactly the same conditions and to the same extent as Czech citizens, unless the law says otherwise. For this purpose, the term foreign person applies to a natural person whose permanent residence is outside of the Czech Republic. Therefore, it is permanent residence, and not citizenship, that is decisive here. Visa are required in certain cases.

case of non-compliance with these special conditions, a natural person is obliged to conduct a trade through the intermediary of a responsible representative, who is obliged to meet both the general and the special conditions pertaining to the given type of trade. Access to the Trade Register is free and available online at www.rzp.cz.

CONDUCTING BUSINESS USING A SPECIAL LICENCE The different business objects for the given category are the professions listed in Section 3 of the Czech Trade Licensing Act, and which are exempt from its provisions. First and foremost, this applies to professional services (doctors, advocates, expert witnesses, auditors, tax advisers, dentists, etc.). Conditions for each of these professions are specifically defined by separate laws.

CONDUCTING BUSINESS WITH A TRADE LICENCE According to the Czech Trade Licensing Act (Act No. 455/1991 Coll.), the business activity is conducted systematically, individually, using one’s own name, on one’s own responsibility, with a view to make profit and under the conditions laid down under this law. The different professions requiring a trade licence are listed in appendices 1- 4 of the Czech Trade Licensing Act. The Czech Trade Licensing Act differentiates between notifiable trades, where the licence is granted once the agreed conditions are met and the Trade Office is notified, and concessionary trades, which require state permission – i.e. the granting of a concession; this is not accorded automatically. Notifiable trades are further divided into skilled, restricted and free trades. Every natural person who is considering pursuing a trade must meet a set of general conditions, including being 18 years old and above, having legal capacity and being a person of good character. In the case of restricted, skilled and concessionary trades, a natural person is additionally obliged to meet special conditions - a professional qualification or other competence as defined by the law for each profession. In

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LEGAL ENTITIES The Czech Act on Business Corporations recognises the following types of business entities: n limited liability companies n joint-stock companies

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PRACTICE OF AGRICULTURE The third type of natural persons encompasses persons who practise agriculture and who are registered under a special regulation - the Agriculture Act (Act No. 252/1997 Coll.). Agriculture includes forestry and water resource management. An agricultural entrepreneur is any person who practises agriculture for profit and meets the agreed conditions, including being at least 18 years of age, having legal capacity and Czech or EU citizenship - all other natural persons need permanent residence in the Czech Republic and a certification of a basic knowledge of the Czech language.

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n general partnerships n limited partnerships n co-operatives n Societas Europaea (European companies) n European Economic Interest Grouping

(EEIG). The Czech Civil Code recognise also other forms of legal entities, such as trust and associations, which can also perform business activity, but this should not be the main purpose of their existence. A Czech legal entity is an entity that has its registered office in the Czech Republic. Commercial companies are formed in two stages. The first stage involves founding the company and the second stage involves establishing it as a legal person, as of the date of its entry in the Commercial Register. The Commercial Register is maintained by the courts. Only after registration in the Commercial Register

the company is entitled to commence its business activity in the Czech Republic. Access to the Commercial Register is free and available online at www.justice.cz.

BRANCH OFFICE A branch office is merely an organizational unit of the founding company and it is not regarded as a separate legal entity and does not have its own legal capacity. It is an entity legally dependent on its head office, although it has an independent management and their own accounts. The branch office must be registered in the Commercial Register and the founder must appoint a director of the branch office, who acts on behalf of the founding company, but this is only in relation to matters concerning the branch office. In case of commencement of any business activity in the Czech Repubic (i.e., continuous business activity carried out independently and aimed at generating a profit) it is important to ensure that the respective trade licenses or other permits in the Czech Republic are obtained and registration with the Czech Commercial Register is performed. MOJMÍR JEŽEK ECOVIS JEŽEK, ADVOKÁTNÍ KANCELÁŘ S.R.O. e-mail: mojmir.jezek@ecovislegal.cz

INCORPORATING A LIMITED LIABILITY COMPANY The limited liability company is the most common form of business corporation in the Czech Republic. How to establish such company? A limited liability company is established by a Memorandum of Association, which is signed by all the founders, i.e. the future shareholders or just one future shareholder. In both cases, it is essential that it is executed in a form of notorial deed of a Czech notary. The notary fee usually does not exceed CZK 5 000 (EUR 195) and is depending on the amount of the registered capital. In case of basic Memorandum of Association which contains only the mandatory provisions required by the Civil Code and Business Corporations Act and if all contributions to the registered capital will be monetary and registration of the company to the Commercial Register will be performed by the notary, the notary fee was decreased to CZK 2 000 (EUR 78). The founding deed must contain basic information about the company, e.g. the business name, registered address, identification of the shareholders, types of business interests (shares) held by each shareholder and specification of rights and obligations attached to such

business interests (assuming various types of business interests are allowed), list of company’s business activities, number of executives and how they will act on behalf of the company, amount of registered capital, amount of contribution of each shareholder to the company’s registered capital, identification of the initial executives and appointment of contribution administrator. The business name must not be interchangeable with any already existing name of another company registered in the Commercial Register. This is why the business name being considered by the founders should be checked out in this regard in advance at the website www.justice.cz. If the company’s business name contains the name of a living natural person, the founders must obtain the consent of such person.

OBTAINING A BUSINESS LICENCE Once the founding deed was drawn up, the initial executives need to obtain the trade license at the Trade License Office unless the company’s business activity includes only management of own property, letting of real estate, residential units and non-residential units or a special permit is required. The administration fee for obtaining the trade license at the Trade License Office amounts to CZK 1 000 (EUR 38).

BUSINESS INTERESTS The founding deed of the limited liability company may allow formation of various types of business interests (shares) held by shareholders of the company. Furthermore, the business interest of the shareholder could be represented by a common certificate issued as registered security. Shareholders of the limited liability company can own more than one business interest in the company.

REGISTERED CAPITAL AND PAYMENT OF CONTRIBUTIONS INTO THE REGISTERED CAPITAL The minimum requirement for the registered capital of the limited liability company is CZK 1. However, it is recommended that founders

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ENTRY OF THE COMPANY INTO THE COMMERCIAL REGISTER The application for entry of the company into the Commercial Register has to be submitted either by all executives of the company on the prescribed form with their officially verified signatures or the registration can be performed through the notary who can register the company into the Commercial Register directly. The application must be submitted to the competent court depending on the location of the company’s registered office within 6 months from the foundation of the company; otherwise the founding deed is considered as withdrawn. The founding deed may stipulate another period. The registration court fee amounts to CZK 6 000 (EUR 232). The fee amounts only to CZK 2 700 (EUR 105), if the registration is performed by the notary on the basis on the notarial deed which would contains only mandatory provisions and all contributions to the registered capital of the Company would be monetary, the registration of the company is for free. Irrespective whether the application is submitted by the company’s executives or through the notary, the following documents must usually be presented: n a notarial deed containing the founding deed, n a trade licence or licence for other type of business activity, n a deed attesting the legal basis for use of the premises at which the company’s registered office is situated, e.g. a written consent of the owner (such consent may not be older than 3 months and signatures on the document must be legally certified), together with the decision of the company’s statutory body on the company’s registered office location, n a document attesting the fulfilment of the obligation to pay prescribed contributions into the registered capital. This fact could be proved by a declaration of the contribution administrator and, in case the registered capital exceeds CZK 20 000 (EUR 800), also the confirmation from the bank that the relevant monetary sums have been credited to the special bank account of the company, n documents attesting the fact that persons who are to be registered as members of the company’s bodies satisfy the requirements set forth by law, i.e. that they are at least 18 years old, have legal capacity, are

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JAROSLAV HOTAŘ ECOVIS JEŽEK, ADVOKÁTNÍ KANCELÁŘ S.R.O. E-mail: jaroslav.hotar@ecovislegal.cz

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agree on the higher amount of the company’s registered capital than the minimum amount. A shareholder’s contribution into the registered capital is either in monetary or in-kind form whereas all contributions of founders are administered by the contribution administrator who is usually one of the founders. Monetary contributions are deposited to a special bank account established for this purpose. The in-kind contributions must be appraised in the expert’s opinion drafted by the expert choosen by the founders from the official list of experts. Before submitting the application for the entry of the company into the Commercial Register, any in-kind contribution must be fully paid up, while at least contribution premium (if any) and 30 % of each monetary contribution must be paid. As of 1 January 2021, the amended Czech Business Corporations Act allows exception from the abovementioned rule. It shall be possible, in cases where the amount of the registered capital (and therefore the deposited amounts) does not exceed CZK 20 000 (EUR 800), to deposit the registered capital amount directly into the hands of the contribution administrator.

without a criminal record related to the business, and that there are no impediments to their operating of a trade in accordance with the Trades Licensing Act and other legal regulations (such as an affidavit concerning such facts and an extract from the criminal record or equivalent document issued by the relevant authority of the EU Member State in which they were last residents in the case of citizens from another than EU Member State) n the consent of the person being registered to their registration in the Commercial Register. The necessary forms for entering the company into the Commercial Register can be found in Czech on the website of the Czech Ministry of Justice https://or.justice.cz/ias/iform/index. html?0. Documents presented to the Commercial Register must be in Czech, including all their attachments; any deeds in a foreign language must have a legally certified translation unless it is drawn up in one of the official languages of the European Union (in that case a simple translation is sufficient). For certain types of foreign deeds (e.g. an extract from a criminal register or commercial register) a special form of higher authentication is required, one that certifies the authenticity of the issuing authority, generally identified as an apostille or ‘super-legalisation’, depending on whether the country issuing the deed is a signatory to the so-called Hague Apostille Convention. The statutory deadline for registration of the company is five working days from submission of the application. If, within this period, the court does not register the company or request additional documents from the applicants, the company is considered as registered. The notary can register the company into the Commercial Register almost immediately. In order to submit an application to the Commercial Register or Trade Register, it is not mandatory to be represented by a lawyer. Nonetheless, with respect to fulfilment of formal requirements, we recommend that an attorney-at-law is engaged. The average amount of time needed to establish a limited-liability company in the Czech Republic is approximately 7 days but registeration within even one day is also possible.

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INCORPORATING A JOINT-STOCK COMPANY The joint-stock company is the second most common form of business corporations in the Czech Republic. How to establish such company?

company’s business activity includes only management of own property, letting of real estate, residential units and non-residential units or a special permit is required. The administration fee for obtaining the trade license at the Trade License Office amounts to CZK 1 000 (EUR 38).

CORPORATE GOVERNANCE A joint-stock company is established at least by one founder on the basis of Articles of Association, which are executed in the form of the notarial deed of a Czech notary and signed by all the founders. The notary fee usually does not exceed CZK 16 000 (620 EUR) and is depending on the amount of the registered capital. The founding deed must contain basic information about the joint-stock company, such as business name, registered address, list of company’s business activities, number of shares and their nominal value, specification of shares and whether the company issues registered shares or bearer shares, amount of the registered capital, number of votes attached to an individual share, total number of votes in the company and estimation of costs related to the establishment of the company. The business name must not be interchangeable with any already existing name of another company registered in the Commercial Register. This is why the business name being considered by the founders should be checked out in this regard in advance at the website www.justice.cz.

The founders could choose between the monistic and dualistic model of corporate governance. In case of dualistic model, the company establishes a Board of Directors and a Supervisory Board. The Board of Directors is in charge of the management of the company’s business. The Supervisory Board supervises the exercising powers by the Board of Directors. In case of monistic model, the company has only an Administrative Board that determines the basic orientation of the management of the company’s business and supervise its proper execution. The Administrative Board should, as a rule, have three members, unless the Statute of the company sets out a higher number. For the joint-stock companies with a sole shareholder, an exception is provided, and the one-member Administrative Board is allowed. From 2021 the position of the statutory director will be cancelled and the Administrative Board will perform all its powers. At the same time, it can be assumed that the provisions on codetermination will not apply to public joint-stock companies with a monistic internal structure, as they will already be regulated separately.

SHARES There are two types of shares in the joint-stock company, i.e. shares with no special rights (ordinary shares) and shares with special rights (such as different or fixed profit shares or different vote weightings shares). The so-called no par value shares are shares that have nominal value.

REGISTERED CAPITAL AND PAYMENT OF CONTRIBUTIONS INTO THE REGISTERED CAPITAL The minimum amount of the registered capital of the joint-stock company is CZK 2 000 000 (EUR 77 000). A shareholder’s contribution into the company’s registered capital may take either monetary or in-kind form whereas all contributions are administered by contribution administrator who is usually one of the founders. Monetary contributions are deposited to a special bank account identified in the Articles of Association. The value of in-kind contributions is determined by the expert chosen by the founders from the official list of experts. Before submitting the application for registration of the company into the Commercial Register, each founder must pay up at least the share premium and all the founders must further pay up in aggregate at least 30% of nominal value of the subscribed shares. All in-kind contributions must be fully paid.

ENTRY OF THE COMPANY INTO THE COMMERCIAL REGISTER

OBTAINING A BUSINESS LICENSE After the founding deed has been executed, the members of the company’s statutory body need to obtain the trade license at the Trade License Office unless the

The application for entry of the company into the Commercial Register could be either submitted by all the members of the company’s statutory body on the prescribed form with their officially verified signatures or the registration can be performed through the notary, who can register the company into the Commercial Register directly. The application must be submitted to the competent court depending on the location of the company’s registered office within 6 months from the foundation of the company; otherwise the founding deed is considered as withdrawn. The founding deed may stipulate another period. The registration court fee equals to the amount of CZK 12 000 (EUR 465). The fee amounts to CZK 8 000 (EUR 310) only, if the registration is performed by the notary.

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Irrespective whether the application is submitted by the company’s members of the statutory body or through the notary, the following documents must usually be presented: n a notarial deed containing the founding deed, n a trade licence or licence for other type of business activity, n a deed attesting the legal basis for use of the premises at which the company’s registered office is situated, e.g. a written consent of the owner (such consent may not be older than 3 months and signatures on the document must be legally certified), together with decision of the company’s statutory body on the company’s registered office location, n a document attesting the fulfilment of the obligation to pay at least statutory minimum contributions into the registered capital. This fact could be proved by a declaration of the contribution administrator and confirmation from the bank that the relevant monetary sums have been credited to the bank account of the company, n documents attesting the fact that persons who are to be registered as members of the company’s bodies satisfy the requirements set forth by law, i.e. that they are at least 18 years old, have legal capacity, are without a criminal record related to the business, and that there are no impediments to their operating of a trade in accordance with the Trades Licensing Act and other legal regulations (such as an affidavit concerning such facts and an extract from the criminal record or equivalent document issued by the relevant authority of the EU Member State in which they were last residents in the case of citizens from another than EU Member State) n the consent of the person being registered to their registration in the Commercial Register (members of the company’s statutory body), n the decision on the appointment of the chairman of the Board of Directors, chairman of the Supervisory Board, chairman of the Administration Board or statutory director, if applicable. The necessary forms for entering the company into the Commercial Register can be found in Czech on the website of the Czech Ministry of Justice https://or.justice.cz/ias/iform/index.html?0. Documents presented to the Commercial Register must be in Czech, including all their

attachments; any deeds in a foreign language must have a legally certified translation unless it is drawn up in one of the official languages of the European Union (in that case a simple translation is sufficient). For certain types of foreign deeds (e.g. an extract from a criminal register or commercial register) a special form of higher authentication is required, one that certifies the authenticity of the issuing authority, generally identified as an apostille or ‘super-legalisation’, depending on whether the country issuing the deed is a signatory to the so-called Hague Apostille Convention. The statutory deadline for registration of the company is five working days from submission of the application. If, within this period, the court does not register the company or request additional documents from the applicants, the company is considered as registered. The notary can register the company into the Commercial Register almost immediately. In order to submit an application to the Commercial Register or Trade Register, it is not mandatory to be represented by a lawyer. Nonetheless, with respect to fulfilment of formal requirements, we recommend that an attorney-at-law is engaged. MOJMÍR JEŽEK ECOVIS JEŽEK, ADVOKÁTNÍ KANCELÁŘ S.R.O. E-mail: mojmir.jezek@ecovislegal.cz

Trades are divided under the Czech Trades Licensing Act (Act No. 455/1991 Coll.) into notifiable trades, which can be obtained based on notification, and concession trades, which can only be pursued on the basis of a special business licence – a concession. Notifiable trades are categorised into three further groups: vocational, professional, and unqualified. Notifiable trades are characterised by the fact that the authorisation to trade becomes valid immediately at the very moment of notification (not later when the trade licence is issued). To illustrate the various types of trade, here are a few examples. Trades categorised as vocational include carpentry, bakery and confectionary, bricklaying and plastering, brewing, etc. Professional trades include activities such as providing or brokering consumer credit, work as an optician, or animals trading. In order to acquire the concession for concessionary trades, it is necessary to demonstrate the relevant professional eligibility and in some cases to also meet some additional requirements. Trades that require concessions include operating a travel agency, road freight transport

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or a security firm employed to protect other people’s property. Those interested in a licence for a notifiable trade can obtain one by notifying the trade, while applicants for a concession can submit their application at one of the general trade offices – central registration points, by means of government administration contact points (Czech-Point) or do so electronically using the Trade Register web system. Trades are notified and applications for concessions are submitted using a standard registration form. Forms can be obtained at any trade office, and in most cases are freely available at the Ministry of Industry and Trade website https://www.mpo. cz/en/business/licensed-trades/guideto-licensed-trades/ (forms must be completed in Czech).

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STEPS FOR ACQUIRING A CZECH TRADE LICENCE

GENERAL CONDITIONS FOR PURSUING A TRADE The general conditions applying to a natural person pursuing a trade are: to have reached the age of 18 years, to have full legal capacity and a clean criminal record. According to the Act, a person with a clean criminal record is someone who has not been finally convicted of intentionally committing a criminal act, if it was committed in connection with business activities, or with the business object for which they are applying or notifying, unless they are now considered as not having been convicted of such offence.

PROFESSIONAL ELIGIBILITY Alongside the form, in the case of a professional or vocational trade or concession, the notifier or applicant

must submit a document attesting its professional eligibility for the relevant trade, or of the appointed responsible representative, together with his/ her signed declaration that he/she consents to the appointment. The signature on the declaration must be officially certified. If documents are in a foreign language, they must be translated into Czech by a sworn translator (a list can be found at http://datalot. justice.cz/justice/repznatl.nsf/$$SearchForm?OpenForm), with the exception of documents submitted by

nationals of EU Member States or by a legal entity with its registered office, central administration or principal place of business activities in an EU Member State, unless there are doubts as to the translation’s correctness.

OTHER TERMS AND CONDITIONS Further, a document attesting the legal basis for use of the premises on which the trader has located their place of business (e.g. a lease contract) must be submitted, and also a receipt for payment of the administrative fee, which is 1 000 CZK (40 EUR) for a notifiable trade (if multiple trades are notified simultaneously, the fee is charged only once) must be submitted. Foreign natural persons, except for nationals of EU Member States or of a State Party to the Agreement on the European Economic Area, or the Swiss Confederation, must attach to their notification of a trade or concession application a document corroborating that they have been granted a visa to stay longer than 90 days or have had their long-term residency permit. A foreign natural person must further provide an extract from the criminal register or equivalent document issued by the relevant court or state authority of the country of which the individual is a national; the extract must not

be more than three months old. The Trade Office is obliged to make the entry into the Trade Register within 5 business days of receiving the notification and issue the entrepreneur an extract if the notifier meets the conditions set out in the Czech Trades Licensing Act. Where concessions are concerned, the Trade Office shall decide the matter within 30 days of receiving the application, provided that all of the relevant particulars are met. Subsequently, within 5 business days of the decision granting the concession having come into effect, an entry is made in the Trade Register and an extract is issued to the entrepreneur. ELIŠKA Č ÁSLAVSKÁ ECOVIS JEŽEK, ADVOKÁTNÍ KANCELÁŘ S.R.O. E-mail: eliska.caslavska@ecovislegal.cz

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CHANGES IN CZECH LEGISLATION A number of changes are under preparation for the year 2020-2021, while the State will continue its policy of strict control to ensure the due performance of existing obligations. Corporate compliance will therefore assume special importance in 2020-2021.

SIGNIFICANT AMENDMENT TO THE CZECH BUSINESS CORPORATIONS ACT In 2020, there was a significant amendment of the Czech Business Corporations Act passed through the Czech Parliament, effective on 1 January 2021. The amendment revises and supplements problematic provisions of the Czech Business Corporations Act, so that they can be used better in practice. The amendment also aims to lower the administrative and regulatory burden on the corporations, where so wide regulation is not necessary. Many duties, which are now obligatory for the companies should be replaced by autonomy of the will of the business companies and their bodies, which is supposed to be the main principle of private law area. Another part of the changes concerns a new regulation of a monistic system of a joint-stock company, that should be further comparable to the modern legislative regulation of the joint-stock companies in many European countries. Finally, the amendment should solve the problem of many “inactive” companies, and set out the rules on how the authorities should proceed, if they find out about such inactive company. The Czech business corporations will be obliged to adapt their founding acts to the new regulation by January 1, 2022 and file them to the collection of deeds of the Czech Company Register. Not later than by 30 June 2021 the Czech companies will also be obliged to enter the information in the Czech Company Register, which are obligatory registered under the new regulation, or to deposit the deeds, which should be obligatory deposited in the collection of deeds according to the new regulation. If the companies fail to do so, the Czech Company Register court shall notify the registered company and set out an additional reasonable period to fulfil the specific obligation. If the additional period expires in vain, the court, upon the notification of the Czech Company Register court or a person who proves its legal interest, shall dissolve the company and order its liquidation.

CHANGES OF CZECH CIVIL CODE On 30 June 2020, the change of the Czech Civil Code became effective. Among other things, the changes affect the area of housing co-ownership legislation and the mandatory pre-emption right in case of co-ownership. Until the effectiveness of the changes, the co-owners had a pre-emptive right in all cases where the share on the immovable property is transferred, unless the co-ownership share is transferred to the benefit of a person close to the transferor. In the event that the co-owners do not agree, they had the right to redeem the share in proportion to the size of the shares. Newly,

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the pre-emptive right was cancelled, however with certain minor exceptions.

LABOUR LAW CHANGES As of 30 July 2020, the Czech Labour Code was modified and new rules with regard to calculation of the employee’s vacation, delivery of documents to the employees, posting of employees for the purpose of providing services or the shared workplace were implemented. The shared workplace is considered to be a situation where two or more employees share one job, provided that within the scope of their working hours they alternate during the performance of work so that the job is occupied by one of them during working hours.

COVID-19 TEMPORARY RULES AND PROGRAMMES During 2020, a lot of new regulations, limitations and programmes to support the Czech entrepreneurs have been adopted. These interim measures affect all legal regulations and it is more than important to follow the current situation as they can supersede the existing rules and regulations. The year 2021 will bring new obligations resulting from the changes introduced by the amendment to the Czech Business Corporations Act. Due to the Covid-19 pandemic further changes and new regulations may be expected and continuous monitoring of changes will be important more than ever. MOJMÍR JEŽEK ECOVIS JEŽEK, ADVOKÁTNÍ KANCELÁŘ S.R.O. E-mail: mojmir.jezek@ecovislegal.cz

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CHANGES IN CZECH REAL ESTATE LAW As of February 2020, the New Czech Real Estate Brokerage Act was introduced into the Czech Real Estate law. This act imposes several restrictions on the provision of escrow of purchase price, real estate brokerage as a professional trade and other obligations of the real estate brokers. Furthermore, the above-mentioned act included the real estate brokerage to the category of vocational notifiable trade. Therefore, in addition to the general conditions for the operation of a free trade, real estate brokers now have to meet the requirements for professional competence, which is evidenced by education, or a combination of education, completion of a professional course, and professional experience.

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LEASE OF BUSINESS PREMISES The New Czech Civil Code regulates the lease of premises for business purposes, even in relation to lease agreements entered into prior to this date. Compared to general types of property leases, lease of business premises has several specific features. Landlords, property developers and their tenants who are leasing business premises in the Czech Republic should certainly be aware of them. REQUIREMENTS OF A LEASE CONTRACT The essential requirement of a lease contract is now simply an agreement concerning the object of the lease and the amount of rent. The purpose of the lease no longer needs to be specified in the contract. If, however, the object of the lease will not be used at least predominantly for the operation of business, then no specific conditions shall apply. Neither is it required to have the object of lease approved by the occupancy permit for the contract to be valid. The regulation of leases in the Czech Civil Code is not mandatory. Parties therefore have the opportunity to manage their mutual rights and obligations

according to their own specific requirements and needs. The lease contract does not need to be renegotiated and rewritten due to the adoption of the new legislation, although in practice the parties prefer this option to exclude application of certain newly introduced provisions of the Czech Civil Code.

TERMINATING A LEASE OF BUSINESS PREMISES Unless the contracting parties agree otherwise, the notice period for aÂ lease with an indefinite term is six months, and three months for aÂ fixed term lease. The notice on a fixed term contract must state the reason for terminating the lease, otherwise the notice is not valid. Unless the parties set out other reasons, tenants are entitled to give notice on a fixed term lease before the lease expires, inter alia if (i) they have lost the capacity to carry out the activity for which the business premises were intended, (ii) the leased premises have ceased, for objective reasons, to be eligible for carrying out the activity for which they were intended, and the landlord does not provide the tenant with equivalent alternative premises, (iii) the landlord has grossly breached his obligations in respect of the tenant, and (v) the circumstances on the basis of which the parties concluded the lease agreement have changed to such an extent that it would be unreasonable to require the tenant to continue the lease. The landlord is entitled to give notice on a fixed term lease contract, inter alia if: (i) the real estate in which the business premises are located is to be demolished or rebuilt in such a way that prevents the leased premises from being used any further, provided that the landlord did not and could not have predicted such situation when entering into the contract, or (ii) the tenant has grossly breached his obligations in respect of the landlord (e.g. the tenant is more than 1 month in delay with the payment of rent or services connected with use of the business premises), (iii) the tenant is convicted of an intentional criminal act committed against the landlord, a member of his family, or person who lives in the building in which the business premises are located,

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SIGNS REGULATION The tenant is entitled to furnish, to the appropriate extent, the real estate in which the object of the lease is located with various types of signage, provided the landlord has given his consent. The landlord may only withhold his consent for serious reasons. If the tenant requests

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the landlord in writing to be given such consent and the landlord does not respond within 1 month, it shall be taken that consent has been given. On the other hand, a failure to obtain the consent constitutes a gross breach of the lease agreement by the tenant.

COMPENSATION FOR TAKING OVER A CUSTOMER BASE One entirely new legal mechanism is the payment of compensation for taking over a customer base, i.e. a group of customers who were regular clients of the tenant, provided that such base has been created by the tenant himself/herself. The tenant is entitled to compensation for the take-over of a customer base in cases where the lease is terminated by notice of the landlord and at the same time the customer base is taken over by the landlord or a new tenant. However, the tenant will not be entitled to compensation for the takeover of a customer base if the landlord has given a notice to the tenant for the reason of the tenant’s gross breach of obligations. ROMAN MACHÁČEK ECOVIS JEŽEK, ADVOKÁTNÍ KANCELÁŘ S.R.O. E-mail: roman.machacek@ecovislegal.cz

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or against another person’s property situated in such building, (iv) the business premises need to be vacated due to a reason of public interest protection, or (v) some other similarly serious reason exists. The lease agreement passes over to the new owner in case of the sale of the premises. If the new owner had no reasonable cause to doubt that he was buying the premises free of any lease, he is entitled to terminate the lease within three months after he became or must have become aware that the premises are leased and who the tenant is. Objections can be raised against a termnation notice. Objections must be made in writing and notified within one month of the relevant party having received the notice. If the notice is not withdrawn by the terminating party within one month from the delivery of the objections, the party who raised the objections may ask the court to examine the legitimacy of the notice within the period of another two months. If, however, the tenant vacates the business premises in accordance with the notice, then such notice shall be regarded valid and as having been accepted by him without objections. In particular cases termination without the notice period is possible; by the landlord in cases of particularly serious breaches of the lease agreement by the tenant, by the tenant if the landlord fails to provide the tenant with sufficient protection against claims of a third party, who asserts the right of ownership or another right in a thing or claims that the premises be surrendered or vacated. Nevertheless, the breach has to be specified in the notice and a possibility to remedy the breach before the notice has to be given.

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INVESTMENT INCENTIVES SINCE 2019 Companies introducing new production or expanding current production may still apply for a tax holiday under some conditions. The conditions have been significantly changed with the Investment Incentives Act Amendment in 2019, since the criteria for granting incentives are stricter now. What do the rules and conditions look like? FORMS OF INVESTMENT INCENTIVES AND SUPPORTED ACTIVITIES The forms of the subsidy have not been changed, thus the available forms of investment incentives are Income Tax relief, cash grant for new job creation and employee training and support for strategic investment activities. Besides these, the incentive in the form of an exemption from Real Property Tax in preferential industrial zones applies. Moreover, there is also an opportunity to draw cash grants on the territory of these zones for creating new jobs in the amount of CZK 300 000 per each new job created. Within the manufacturing projects, there are three types of supported activities defined, i.e. expansion of production by increasing production capacity, diversification of production and a fundamental change to the overall production process. Investment incentives can also be requested for projects involving construction or expansion of centres for shared services, data centres, and customer support centres.

SELECTED CONDITIONS The general conditions which must be met in order to qualify for the incentive differ, based on the type of the supported activity. Among others, for manufacturing projects, the following general conditions apply: n Investment of at least CZK 100 million and at least half of the investment must be spent on acquisition of new machinery equipment n The company cannot start any work on the project prior to the submission of the application n Applicants will have to quantify and support an investment project’s expected benefits for the region and the state n Only projects proving a higher added value are to be supported (only applies to investment projects outside the supported regions) n Limitations for projects of relocation (i.e. transfer of the same or similar

activity if the product or service in the initial and in the aided establishments at least partly serves the same purposes, the same type of customers, and if jobs are lost in the same or similar activity in the EEA) n Fulfilment of the conditions until 3 years from the granting of investment incentives The conditions in the case of technological centres and strategic service centres differ, based on the type of centre. Basically, there is always a minimum amount of new jobs (20-500) to be created and, in the case of technological centres, the minimum amount of CZK 10 million to be invested.

STATE AID LEVEL The general level of public support is 25 % of eligible costs. Financial support for the creation of new jobs and for employee training or retraining in regions with the unemployment rate higher than 25 % is as follows: n Financial support for creation of new jobs up to CZK 300 000, depending on the region n Financial support for training and staff retraining of 25-50 % of training costs, depending on the region Financial support for acquisition of tangible and intangible assets for strategic investment (500 new jobs created and investment of at least CZK 500 million in the manufacturing industry; 70-100 new jobs created and investment of at least CZK 200 million for technology / repairs centre) is in the amount of 10-20 % of the eligible costs. There is also one important rule related to the accumulation of support in the three-year period preceding the filling of the investment incentive application. Large investment projects of over EUR 100 million need to be granted an individual exemption by the European Commission from the restriction to receive state aid. The process of approving such an investment project is administratively and time consuming.

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regulations may be quite difficult. Investors planning to file applications for investment incentives should therefore mainly focus on a project’s added value and its link with research and development, while quantifying and describing all economic and socio-economic benefits for the region and the state.

A project’s chances of obtaining investment incentives may significantly be affected by the above, as it is now the government that approves incentives for each individual project, assessing in particular whether a project is in line with the Czech Republic’s strategy and whether it reflects the state’s current economic situation and its needs that may change over time. KARIN OSINOVÁ KPMG ČESKÁ REPUBLIKA S.R.O. E-mail: kosinova@kpmg.cz

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MAIN CHANGES IMPLEMENTED BY INVESTMENT INCENTIVES ACT The new Investment Incentives Act reflects structural changes taking place in the economy since its last amendment in 2015. An Amendment to the Act on Investment Incentives has been promulgated in the Collection of Laws and entered into effect on 6 September 2019. One of the most significant changes is the much stronger position of the government. While, to date, the government only approved investment projects deemed strategic, it should now approve all projects. The Amendment also moves a number of conditions from the law to a separate government decree, aiming to make decision making more flexible if it becomes necessary to change the conditions for an investment project’s approval. To obtain support, the project’s added value has to be proven both in the application and in the project implementation. In addition to other conditions, the decree also defines the added value of a project. An investment project with a higher added value is defined as follows: n For an investment project in production, provided that the salaries of 80 % of employees reach at least the average monthly gross salary in the region where the investment project is implemented. n At the same time, the recipient of the investment incentives must meet one of the following conditions: The Applicant actively cooperates with a research and development organisation and spends at least 1 % of the amount of eligible costs for this cooperation, while the rate of employees with a university degree is at least 10 % or The rate of research and development employees is at least 2 % of the total number of employees or The Applicant acquires machinery for research and development purposes in the amount of at least 10 % of the total eligible costs. The condition of higher added value does not apply, provided that the whole investment project will be implemented in the territory of the state-supported region according to the law regulating the support of regional development. It is obvious that obtaining investment incentives under the new

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic I I I . How to D o B u s i n e s s i n t h e C ze c h Re pu bl ic

WIN A PUBLIC CONTRACT IN THE CZECH REPUBLIC! The Czech Public Procurement Act (the “PPA”, the “Act”) came into effect on 1 October 2016. This Act implemented the European public procurement directives of 2014 and the main goal of such implementation in the Czech Republic was to make public procurement more transparent and free of overwhelming bureaucracy, as well as making it more flexible by enabling the contracting authorities to adapt the procurement to their individual needs. This article will have a closer look at some of the innovations introduced by the Act which contributes to the fulfilment of the aforementioned goals. I. ELECTRONIC PUBLIC PROCUREMENT ONLY In light of the aim of diminishing the administrative burden and enhancing transparency, the PPA pushes for mandatory e-procurement, which requires the procurement proceedings to be fully electronic. Unless the Act expressly allows for deviation (usually for security or technical reasons), the entire awarding procedure must be conducted electronically. The electronic conclusion of public procurement procedures has been mandatory from 18 October 2018. E-procurement legislation applies to all forms of written communication between contracting authorities and bidders. Coverage starts with the publication of the tender notice and tender documentation and ends with the procedure itself, namely with either (i) the cancellation of the tender procedure, or (ii) the conclusion of the contract (which need not happen electronically). During the tender procedure, the contracting authority cannot generally ask for the originals of any documents, apart from those specified in the Public Procurement Act. Before the execution of a public contract, the winner of a public tender must submit originals or certified copies in electronic form. If a self-declaration (or other signed document) is to be submitted as an original, it must bear a certified e-signature or have a special electronic conversion clause attached (in which case, the document would be regarded as a certified photocopy).

II. RELAXED REQUIREMENTS FOR EVIDENCING FULFILMENT OF SELECTION CRITERIA Procedurally, it is possible for bidders to submit documentation proving and verifying fulfilment of selection criteria in plain copies. Additionally, such documents may be substituted by an affidavit (unless expressly excluded by

the contracting authority). Further, the European Single Procurement Document (the “ESPD”) as a self-declaration form can substitute documents necessary to prove qualification of the bidders. As stated above, the winning bidder must present originals or certified copies of the documents before the signing of a public contract.

III. BROADER RIGHT TO EXCLUDE A BIDDER Contracting authorities may exclude a bidder with whom the contracting authority has had a bad experience in previous procurement procedures, if the contracting authority proves that the bidder concerned has committed serious or persistent misconduct in the past 3 years in fulfilling an earlier contractual relationship with the contracting authority which led to premature termination of the procurement contract, compensation for damages, or other comparable sanctions.

IV. AMENDMENTS TO CONCLUDED PUBLIC CONTRACTS Following the public procurement directives, the Czech PPA implements the case law of the Court of Justice of the EU (C-454/06 Pressetext) and allows concluded contracts to be amended where such modification is not considered fundamental or substantial. The contracting authority may implement non-fundamental modifications by a simple agreement with the current supplier without having to carry out a new procurement procedure. This also applies to additional works, services or supplies under the conditions below.

The PPA defines as fundamental the changes to the obligations arising from the existing contract that would: n allow other bidders to participate during the original procurement procedure; n change the economic balance of the contractual obligation in favour of the selected bidder, or n lead to a substantial extension to the scope of the performance of the public contract.

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The PPA does not consider the following amendments to be fundamental: n changes stipulated in the original contract and the tender documents; n de minimis changes below the threshold for public contracts (10-15% of the value of the original public contract); n additional works, services or supplies which are necessary or were not foreseeable, a change of the supplier is not possible, and whose value will not exceed 50% of the original contract; n substitution of one or more items in the list of construction works under certain conditions. A change of supplier is considered a fundamental change; however, the PPA allows such a change under specific circumstances (such as anticipation of such change in the contract and tender documents or legal succession). The contracting authority is always obliged to act effectively and efficiently when amending public contracts after they have been awarded. Any changes to the existing contracts are, of course, possible if the above conditions are met and, at the same time, if the supplier agrees with such amendments.

increased requirements on the expertise and cautiousness of the contracting authorities. It is also opportunity for bidders to carefully check whether all steps of the contracting authority are transparent, efficient and in compliance with the PPA; if not, the unsatisfied bidders may submit objection against the steps of the contracting authority and also go to the Office for the Protection of Competition to protect the bidder´s rights. LENKA KRUTÁKOVÁ SENIOR ASSOCIATE, CMS CAMERON MCKENNA NABARRO OLSWANG, ADVOKÁTI, V.O.S. E-mail: lenka.krutakova@cms-cmno.com

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V. CONCLUSION The PPA offers a modern approach towards public procurement administration in many ways. Abandoning the rigid formalistic approach and allowing for a certain amount of flexibility bears the promise of more effective management of public funds. Some critics warn against giving contracting authorities a wide discretion or point out that the EU derived rules are not detailed enough to serve the contracting authorities as a fully-fledged manual. By providing wide discretion to the contracting authorities, the new rules naturally place

IV.

FINANCE

CZECH BANKS: FINANCIAL STRENGTH TO SUPPORT CZECH ECONOMY Not only in the medium run, but also in 2019, was the Czech banking sector among the most stable, solidly capitalised, above-average profitable banking sectors in the European Union’s single market. Compared internationally, it would also succeed in terms of financial health characterised by an exceptionally low share of non-performing loans (hereinafter the “NPLs”). This is confirmed annually, not only by the results of challenging stress tests of the Czech National Bank, which examine the resilience of the sector as a whole and of individual institutions, but based on scenarios with impact parameters that are set at higher standards than those used at the EU level by the European Banking Authority (EBA).

In addition to the above, two major initiatives were taken by banks in 2019 as a commitment to their corporate social responsibility. To support the long-stagnant digitisation of public administration, they offered the SONIA project to citizens, businesses and the state, i.e. using the banking identity of clients, which will allow a sharp increase in the availability of public services easily accessible from home within e-government. At the same time, the Czech Banking Association (CBA) and banks became the initiators of the establishment of the National Development Fund, which in the future may represent a major breakthrough in collaboration between the private and public sectors and, with the growing development of the CR, replace the EU funds on a purely market basis, as these funds gradually dry up.

BANKING SECTOR: BASIC OVERVIEW By the end of 2019, there were 49 licensed banks operating in the Czech Republic, the same as a year ago. The structure of the banking

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sector consists of 4 large banks, 5 medium-sized banks, 10 small banks, 25 branches of foreign banks and 5 building societies. A total of 39 entities are under the control of foreign owners, of which 14 are banks and 25 are branches. Domestic owners control 10 banks, of which 2 are banks with state participation. In addition, 457 foreign banks operating in the EU single internal market could provide cross-border services in the Czech Republic. By the end of 2019, the total value of the banking sector’s assets rose by approximately 4 %, to almost CZK 7 622 billion, and the volume of assets relative to GDP was approximately 135 %. Compared to the previous year, net profit for 2019 grew by 11 %, to almost CZK 91 billion. In accordance with comparable EBA data, the return on equity stood at 16 % (i.e. approximately 1.5 percentage points more than a year earlier), and the return on assets reached a comparable 1.3 %.

BANKING SECTOR: LOANS AND DEPOSITS At the end of 2019, the total volume of bank loans in the Czech Republic increased by 4.4 % compared to the previous year (when its growth rate was almost double), reaching CZK 3 450.3 billion. Banks provided loans to households totalling CZK 1 649.8 billion, which was almost 6.4 % more than in the previous year; corporate loans reached the volume of CZK 1 120.0 billion at the end of 2019, up by 3.7 % y-o-y (their growth rate was therefore two percentage points lower, compared to 2018). However, when viewed from the aspect of new business, the picture of

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The aggregate capitalisation of the Czech banking sector consistently exceeds the regulatory capital requirements. The total capital ratio of banks, in accordance with EBA data, reached 20.5 % (up by almost 2 percentage points over the year), while 98 % of the capital continued to be formed by the highest quality Tier 1 capital. In the medium run, one of the main advantages remains to be the comparatively low share of NPLs, whose value, according to the methodology used by EBA, slightly decreased to 1.3 % compared to the previous year, being thus one of the lowest among EU Member States, while the level of coverage ratio of NPLs by allowances was 57.4 %, among the above-average ones.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic IV. Fin a n c e

2019 looks different. During the year, households drew new housing loans in the amount of CZK 306.1 billion from banks and building societies, i.e. 14.4 % less than in 2018. Two factors were reflected in this development – the decrease in the availability of housing on the supply side, accompanied by an increase in property prices, on the one hand, and on the demand side, constraints imposed since the end of 2018 by effective tightening of the regulation relating to the maximum permissible limits of the debt-to-income ratio indicator (DTI must not exceed nine times net annual income) and the loan instalment to the net monthly income ratio (DSTI max. 45 %). However, if we adjust the figure mentioned above for refinanced mortgages and those with a new interest rate fixation, then the volume of newly granted mortgages fell by 13.6 % compared to the previous year. The resulting year-on-year decline in the volume of loans to households by 8.2 % was mitigated by the relatively fast 8.8 % year-on-year increase in bank loans for consumption, which was a surprise, compared to a slight decline in 2018. On the other hand, however, this could indicate use of their part to complement

the missing funds of households to finance the acquisition of their own housing, or to improve it. In the area of corporate financing, after two lean years, in which companies rather repaid loans, or when loans grew only slightly, there was a relatively strong growth in new loans of 12.8 % year-on-year, reaching CZK 520.7 billion at the end of 2019, exceeding the volume of new loans to households after a long time. Nevertheless, the total balance of outstanding loans to households still exceeds the outstanding receivables of banks from the corporate sector by approximately 47 % (i.e. it is approximately 1.5 times higher) and thus remains consistent with the long-term trend.

MAIN INDICATORS OF LOAN DEVELOPMENTS IN 2019 Absolute amounts (CZK billion)

Year-on-year change (%)

Total volume of loans (as at 31 Dec. 2019)

3 450.3

4.4

Retail loans (households, residents)

1 649.8

6.4

Housing loans

1 399.7

6.6

Consumer loans

238.1

9.1

1 120.0

3.7

Population, housing, consumption, other

475.2

- 8.2

306.1

- 14.4

- Of which: consumer loans

126.6

8.8

Non-financial companies

520.7

12.8

Non-financial businesses (residents) – loans New loans (2019)

- Of which: housing loans

Source: Czech National Bank, ARAD

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BANKS 2020: CORONAVIRUS ECONOMIC IMPACT Immediately after the government started to impose first restrictions due to the pandemic situation, Czech banks recognised the need to support their clients in order to soften the economic impact on them and their families. Already in mid-March 2020, banks offered on request assistance to clients, who were negatively affected by Anti-Covid measures, to delay repayments of their debts. By 7 May, banks left borrowers with liquidity amounting to approximately CZK 9 billion (deferred payments of principal and interest). About 10 % of clients who have a loan with banks requested a deferral. Of the total, 64 % were consumer loans, 24 % mortgages and 12 % corporate loans. Banks also actively collaborated with the government in implementing the guarantee schemes to support the working capital and investment needs of their clients. In reaction to the bottlenecks of centralised distribution of the CMZRB (National Development Bank), guarantees on loans to SMEs in the COVID II and COVID Prague Guarantee Scheme, the CBA suggested that the government build up a decentralised distribution of guarantees on loans, based on similar principles that banks are used to following in the case of EIF portfolio guarantees. The government accepted the proposal, which means the biggest breakthrough in the way guarantees are provided in the Czech Republic in the last 30 years. The collaboration between the CBA, the Ministry of Industry and Trade, the Ministry of Finance, and the Czech-Moravian Guarantee and Development Bank (CMZRB) started in early April and, within a month, led to the start of the system. The EC approved the notification of state aid under SA.57195 on 15 May 2020. The COVID III Guarantee Scheme (under the umbrella of the State Guarantee enshrined in Law) offers portfolio guarantees to commercial banks that are responsible for the composition of working capital loan portfolios of eligible companies, i.e. SMEs and tradespeople with up to 250 employees (up to 90 % of principal), and mid caps with from 251 up to 500 employees (up to 80 % of principal). The cap on portfolio is in both cases 30 %, guarantee period up to 3 years, loan amount up to CZK 50 million. The programme started on 19 May 2020, when the CMZRB published a call on banks to show

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See more on https://www.cnb.cz/en/financial-stability/ fs-reports/financial-stability-report-2019-2020/

PETR PROCHÁ ZKA CZECH BANKING ASSOCIATION www.cbaonline.cz

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Overall, the volume of customers’ deposits totalled CZK 4 739.3 billion by the end of 2019 and exceeded the volume of consumer credits by 37 %. Traditionally, the excess of deposits over loans is generated by the household sector, where households have deposited a volume of deposits with domestic banks, which is 65 % bigger than the volume of funds drawn from loans. In the corporate sector, the volume of deposits and loans is approximately equal. Although the excess of deposits over loans means a relatively low dependence of banks on interbank funding, it also limits the transmission of monetary policy. At the end of 2019, households had CZK 2 725.5 billion deposited with banks, i.e. 6.5 % more than last year. More than 88 % of the savings were deposited on demand. However, the volume of fixed term deposits at the end of the year increased by more than double the rate compared to the previous year, i.e. by 4.6 %, to CZK 586.7 billion. Especially at the end of the year, the gradual increase in the deposit rates on fixed term deposits thus became apparent, but clients still rather preferred the immediate availability of deposited funds.

interest in participating in COVID III, and in signing the Portfolio Guarantee Agreement with the CMZRB. During the second quarter of 2020, the state, in cooperation with banks, opened the COVID Plus Guarantee Programme for larger companies (over 250 employees). In this case, the state decided – unlike in the COVID III programme – not to go the way of a state guarantee for the liabilities of its export insurance company EGAP, but to create space for its provision by an amendment to Act No. 58/1995 Coll. on insurance and financing of exports with state support, on the one hand, and by increasing the capital of the export insurance company by CZK 4 billion on the other. The essence of the programme is the creation of a guarantee fund (for loans in the amount of approximately CZK 142 billion) managed by EGAP, designed to guarantee commercial loans to exporters (export content of at least 20 %), or their subcontractors, directly or indirectly affected by measures against the spread of the coronavirus disease. The amount of guaranteed loans ranges from CZK 5 million to CZK 2 billion, while individual guarantees can reach a maximum of 70 to 80 %, depending on the debtor’s rating. The maximum guarantee period is 3 years for operating loans and 5 years for investment loans. Despite the difficult economic situation, that turned in the first half of the year into a recession, the Czech National Bank in its Financial Stability Report 2019/2020 recognised that “the (Czech) banking sector entered the recessionary phase of the financial cycle – accompanied by the coronavirus crisis – with a robust capital and liquidity position and strong profitability. Profitability was at a historical high, but started to fall with the onset of the crisis due to emerging growth in credit losses. Their continued growth will further increase the pressure on profitability…” – but even the stress tests showed its continuing capital strength and stability.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic IV. Fin a n c e

TAX CHANGES FOR BUSINESS OWNERS The year 2020 has been severely hit by the COVID-19 pandemic, which naturally also had an impact on the tax area. We would therefore like to use this opportunity to inform you about certain changes in this country´s tax legislation valid in 2020 and subsequent years. The changes concern the following areas: - Personal Income Tax - Value Added Tax (VAT) - Real Estate Act - Real Estate Acqusition Act - Bond Taxation - Electronic Recording of Sales (EET) CHANGES IN PERSONAL TAXATION 1. Flat-rate Expenditure Starting with the 2019 tax period, the expenditure ceiling applied as a percentage of revenue (“flat-rate expenditures”) is once again being doubled in all categories. The increases are as follows: n i n the case of income from agricultural production, forestry and water management and in the case of income from craft trades from CZK 800 000 to CZK 1 600 000, n in the case of income from other trades except craft trades from CZK 600 000 to CZK 1 200 000, n in the case of income from rental property included in the business assets category from CZK 300 000 to CZK 600 000, n in the case of other income from entrepreneurial activity from CZK 400 000 to CZK 800 000. It was possible to apply the said increases already for the 2019 tax period in the framework of the Tax Return filed in 2020.

The sum of CZK 5 740 includes: n health insurance contribution fixed at CZK 2 514 n social security insurance contribution amounting th CZK 3 126

(minimum advance + 15 %) n income tax of CZK 100, which compenssates for higher social

insurance payment

3. Money instead of Meal Vouchers The government also approved the provision, to become effective in 2021, that employers will have the possibility of paying their employees money instead of giving them meal vouchers. Under this provision, employers will have the possibility of granting to the employees the catering contribution in monetary form besides company catering and meal vouchers. The meal voucher system will work as a simpler and cheaper alternative to the current system, which will be maintained to the full extent. As before, the employer´s contribution to the employee will be exempt from taxes and insurance premiums.

CHANGES IN THE AREA OF VAT Change of Rates Valid from 1 July 2020 With effect from 1 July 2020, VAT rates will be changed so that the provision concernng selected payments will be included in Annex No. 2a of the Added Value Act – second reduced 10 % rate. Specifically, this concerns: n accommodation services, n admission fees for cultural events (theatre, circus, castles, concerts, museums, zoo, cinemas, exhibitions, parks, botanical gardens, national parks, etc.), n admission fees for sporting events (football, ice-hockey, tennis, etc.), n admission fees for sports grounds (tennis courts, swimming pools, ice rinks, fitness gyms and centres, ski lifts) n saunas, Turkish baths, steam baths, salt caves, etc.

2. Single Tax As from 2021 self-employed persons whose annual income does not exceed the one million crown limit and who are not VAT payers will have the possibility to pay just a flat tax of CZK 5 469. The purpose of the flat rate is to reduce the administration burden. The payer may sign up to it voluntarily. In case he does so he will be required to make a single monthly payment (which will solve his obligation to pay income tax, social insurance and health insurance premiums).

REAL ESTATE TAX The tax package submitted by the government, to become effective from the year 2021, strengthens the decision-making powers of local governments in the field of Real Estate Taxation, allowing them to set

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EXEMPTION FROM THE REAL ESTATE ACQUISITION TAX The Amendment to the statutory measure of the Senate on the Real Estate Acquisition Act, expanding the range of real estate acquisition cases exempted from the tax, came into force in November 2019. In addition to cases of the first aquisition of the ownership right to a completed unit in an apartment building or a unit in use, it will also be possible to apply tax exemption in the case of completed units or units being in use in family houses. The aquisition of the ownership right to such a unit must take place within 5 years of the completion of the unit, or the start of the use of the unit, or the change of the unit by building modification, i.e. on the day which occurs earlier. The exemption thus applies to cases when the acquisition of the ownership right to the property occurred after 1 November 2019.

SETTLEMENT OF CONDITIONS FOR BOND INCOME TAXATION As regards Bond Income Taxation, the government proposal, also effective from 2021, provides for the abolition of the exemption of the interest income of non-residents from bonds issued in a foreign country by a payer resident in the Czech Republic, thereby levelling the conditions between domestic and foreign investors. On the other hand, in the case of income from government bonds issued by the Czech Republic, the exemption will be extended. Currently, the income of non-residents from government bonds issued by the Czech Republic abroad is exempt from withholding tax. Newly the exemption will apply to all income from government bonds, not only Czech government bonds issued under Czech law in the Czech Republic, but also bonds issued by other states of the European Union and the European Economic Area. Neither will the income of domestic government bond holders be subject to withholding tax.

ELECTRONIC RECORDING OF SALES (EET) The law (Law No. 449/2020 Coll.) extends the deferral of the electronic recording of sales until 31 Decemer 2022 for units coming under the first two waves (i.e. wholesale, retail sale, catering and accommodation services) and units which were originally intended to start recording from 1 May 2020. The obligation to record their sales thus arises to units disregarding the phase into which they fall, on 1 January 2023. The deferral applies to all the three sales recording categories, ordinary, simplified and special. The EET deferral means that payers need not send their sales reports to the tax administrator, nor do they have to issue receipts as provided for by the Sales Recording Act or place an information notice.Certain obligations continue to apply, specifically as regards the obligation to protect authenticisation data, certificates and blocks of receipts (provided the payers have already obtaind them for the purpose of fulfilling special mode obligations).

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INCREASE IN BASIC TAXPAYER CREDIT AND ABOLITION OF TAX BONUS LIMIT In November 2020 Parliament approved to raise the basic taxpayer credit from the current CZK 24 840 to a sum corresponding to the amount of the average gross monthly nominal wage for the previous calendar year. For the year 2021 the basic taxpayer credit should thus correspond to the average wage for 2019, which, according to the Czech Statistical Office, was CZK 34 125 (this corresponds to a monthly taxpayer credit of CZK 2 844). At the same time Parliament approved the abolition of the tax bonus for a dependent child, which currently amounts to CZK 60 300 a year. It can, however, be assumed that very likely the taxpayer credit will not be increased at all as the Prime Minister and the Minister of Finance will be seeking the abolishion of this change still in the course of the current legislative process.

INCOME TAX REDUCTION TO 15 % AND SUPER- GROSS WAGE ABOLITION In November 2020 the Government agreed on the reduction of income tax from the original rate to 15 % and proposed the abolition of the super-gross wage. The super-gross wage comprises the gross wage, which includes the employer´s contributions to health insurance and social insurance. Currently the income tax base for the employee is the super-gross wage; from 2021, as a result of the change, only the gross wage will be taxed by fifteen percent. In addition the Government decided that the change should not apply to people with income of more than CZK 139 000 a month. Those people will be newly taxed by a 23 percent rate according to the proposal. High-income groups will continue to be obliged to pay the solidarity tax. PAVEL ZACHARIÁŠ NEXIA AP, A.S. e-mail: zacharias@nexiaprague.cz

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local coefficients for different parts of the community. Under current legislation, local governments may only set the local coefficient for the entire area within their competence. The Real Estate Tax is the 100 % income of the community, which, thanks to its competence to set the local coefficient, has the possibility of increasing its income.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic IV. Fin a n c e

ENTREPRENEURSHIP OF FOREIGN ENTITIES & ITS TAXATION IN THE CZECH REPUBLIC Entities that are not tax residents of the Czech Republic may become liable to income tax according to the Income Tax Act No. 586/1992 Coll., as amended, if they receive income derived from the territory of the Czech Republic. Although the basic level of taxation of this income is relatively low (corporate income tax 19 %, natural persons 15 %), it may become a fundamental complication for their business activities. It is essential to realise the fact that, in some cases, income tax of tax non-residents is withheld in a form of withholding tax from gross revenues (at the rate of 5 % or 15 %) and not from profit. Withholding tax rate of 35 % is also applicable for taxpayers who are not EU members or taxpayers from a country that has not signed Double Tax Treaties with the Czech Republic. Although the Czech Republic as a member of OECD has signed many international bilateral double tax treaties regarding the avoidance of double taxation – currently with 88 states – these agreements mostly modify the rate of the withholding taxes, but the principle of withholding tax by retention tax from the whole income instead of proﬁt taxation is a basic complication. Under these conditions, it is appropriate to consider founding a subsidiary or branch used for doing business in the Czech Republic.

I. TYPES OF INCOME TAXED BY WITHHOLDING TAX Among revenues of tax non-residents derived from the territory of the Czech Republic, on which 15 % withholding tax is levied (unless reduced/eliminated by a double tax treaty or unless a permanent establishment is created), may be included e.g.: Revenues from: n s ervices (except realisation of building site or construction or installation or assembly project) rendered on the territory of the Czech Republic; n c onsulting, management, and brokerage and similar professional activities provided on the territory of the Czech Republic; n i ndependent personal services rendered on the Czech territory; n i ncome of artistes and athletes for their performance in the Czech Republic.

Payments from Czech tax residents (or from permanent establishments of non-residents) for: n i ndustrial and cultural royalties, including payments of any kind received as a consideration for the use of any industrial, commercial or scientific equipment, except of financial leases; n d irector’s fees; n c ontractual penalties from business obligations; n d ividends; n o ther income derived from a capital asset interest. Revenues of tax non-residents obtained from the territory of the Czech Republic on which 5 % withholding tax is imposed are rentals from financial lease. We have to note that the Czech Republic has a broad system of capital gains (realised on sale of shares) tax exemption valid for Czech non-transparent companies with shares in Czech/EU non-transparent subsidiaries and for EU non-transparent companies with shares in Czech subsidiaries. The conditions are, in particular, that at least a 10 % share is held for at least a 12-month period (even sale of shares in a third-country subsidiary may qualify under certain additional conditions).

II. TYPES OF INCOME OF NON-RESIDENTS TAXED ON INCOME PROFITS Besides income liable to withholding tax types of income derived by non-residents from the territory of the Czech Republic, incomes exist which are subject to the standard 19/15 % Czech corporate income tax applied on proﬁt. For these types of income, a standard income tax return shall be submitted (once a year until 1 April of the following year, or until 1 July of the following year if the tax return is prepared by a tax advisor/attorney at law on the basis of Power of Attorney) and the tax base consists of proﬁt adjusted for attributable and deductible items. These revenues are typically represented by revenues from real estate or permanent establishment.

Permanent Establishment Permanent establishment in the Czech Republic arises as a result of a ﬁxed place of business, of a building site or construction or installation or assembly project carried out by a tax non-resident which has existed for more than six months within any twelve-month period, from the performance of professional services and of other activities of an independent character in the Czech Republic, if such activities are carried out on the territory of the Czech Republic for more than six months within any twelve-month period. Also, a dependent agent with authority to negotiate/conclude contracts in the Czech Republic binding on the non-resident may trigger a permanent establishment of this non-resident. These basic deﬁnitions of permanent establishment can be altered by wording of the relevant treaty on avoidance of double taxation.

III. TAXATION OF PARTNERSHIP INCOME Czech general commercial partnerships (v.o.s.) and limited partnerships (k.s.) are regarded as tax transparent entities for the purpose of corporate income tax (the latter only with respect to the general

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partner(s)). The proﬁts of a general commercial partnership are not subject to taxation at the v.o.s. level, but at the level of its partners. In a limited partnership, proﬁts are divided into a part for the general partners (subject to taxation at the level of partners) and a part for limited partners, which is subject to taxation at the limited partnership level. The latter part, minus corporate income tax, is divided between limited partners in the form of dividends; dividends are generally liable to a withholding tax of 15 %. The income of v.o.s. partners or k.s. general partners or members of a civil association (without legal capacity) who are not Czech tax residents from participation in v.o.s. or k.s. or association and from loans granted to v.o.s. and k.s. is regarded as income derived through a Czech permanent establishment, taxable at the standard income tax rate (19 % for legal entities).

Carrying tax losses forward As of 2004, tax losses suﬀered in a tax period can be carried forward in the next ﬁve tax periods. Carrying losses backward, however, is not possible. There are restrictions on the deductibility of tax losses (shown in previous tax periods) which may result from a fundamental change in the composition of owners of the company concerned, or

from its merger. As a rule, beginning from tax periods commenced in 2011, the tax administrator is entitled to check tax returns and assess tax liability in retrospect within three years from the end of the deadline for filing the tax return for the controlled tax period. But this is the minimum term, which can be prolonged. Considering the complexity of this problematic volume of judicature and statements of the Ministry of Finance of the Czech Republic, we recommend always using the professional assistance of a tax advisor in identifying the possibility of the formation of the tax duty from revenues derived from the territory of the Czech Republic. JAKUB KOVÁŘ NEXIA AP E-mail: kovar@nexiaprague.cz

EMPLOYEES – TAXATION, SOCIAL SECURITY, AND HEALTH INSURANCE

Czech source of income is, for instance, income for work performed in the territory of the Czech Republic, rental income from real estates located in the Czech Republic, etc. In addition, Czech tax nonresidents may not qualify for certain tax deductible items and tax reliefs. The term “tax resident” includes any person residing in the Czech Republic for at least 183 days within a calendar year (continuously or over several periods) or having a residence (permanent home)1 in the Czech Republic. If an individual is treated as a tax resident in the Czech Republic and, at the same time, in another country, the final tax residency status is to be determined in accordance with the applicable double tax treaty. Czech Republic concluded double tax treaties with nearly all European countries and majority of other developed countries. If there is no double tax treaty in place between the Czech Republic and the other country, double taxation may arise.

INCOME SUBJECT TO TAX Employment income includes salaries, wages, bonuses, other compensation of a similar nature and most benefits in kind2. Employment income also includes fees paid to directors and shareholders of

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private limited companies and to limited partners of limited partnerships for work performed for the company or partnership. On the other hand, travel reimbursement within the Czech labour law statutory limits and various other qualified benefits, such as luncheon vouchers, cultural and social fund benefits, temporary accommodation of up to CZK 3 500 per month (approx. EUR 135) and private life insurance or supplementary pension insurance premiums annually of up to CZK 50 000 (approx. EUR 1 923) may be exempt from taxation if further conditions are met. The tax base for employment income equals the sum of the gross income of the employee and the employer’s portion of mandatory Czech social security and health insurance contribu-

Photo: www.sxc.hu

The extent of individual’s taxation in the Czech Republic depends on individual’s tax residency status. Czech tax residents are subject to tax on their worldwide income. Czech tax nonresidents are subject to tax on Czech-source income only. Tax nonresidents are taxed in the same way as residents on their Czech-source income, except for certain types of income.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic IV. Fin a n c e

tions3. For employees who are affiliated to the Swiss, EU, and EEA member states mandatory social security and health insurance scheme, the actual mandatory employer’s contributions in the respective EU/EHP country or Switzerland are used instead of Czech employer’s contribution rates to calculate the tax base. For the employees who are affiliated neither to the Czech social security and health insurance scheme nor to the Swiss, EU, and EEA member states mandatory social security and health insurance scheme, the tax base for employment income equals the sum of gross income of the employee and the employer’s portion of deemed mandatory Czech social security and/or health insurance contributions. No expenses may be deducted from employment income.

TAX-DEDUCTIBLE ITEMS The tax base from employment as described above is to be consolidated with all other partial tax bases (i.e. partial tax base from self-employment and business income, from rent, investment income, or from other income). The overall tax base can be lowered by tax deductible items such as gifts to charities and other organisations for qualified purposes, mortgage interests, and contributions towards individual’s private life insurance or supplementary pension insurance.

the personal tax relief, are available for tax residents and in general, also for Czech tax non-residents who qualify as residents of other member states of the European Union or of the European economic area and their Czech-source income accounts for at least 90% of their total annual income. The annual personal tax relief is CZK 24 840 (approx. EUR 955). In addition, tax relief of CZK 24 840 is granted for a spouse living in the same household with the taxpayer, unless the spouse’s annual income exceeds CZK 68 000 (approx. EUR 2 615). Additional personal tax relief of CZK 2 520 (approx. EUR 97) is granted for partially disabled persons and of CZK 5 040 (approx. EUR 194) for fully disabled persons. Tax relief of CZK 4 020 (approx. EUR 155) is granted to tax payers who are full-time students up to the age of 26 and tax relief of CZK 15 204 (approx. EUR 585) is granted for the first, CZK 19 404 (approx. EUR 746) for the second and CZK 24 204 (approx. EUR 931) for the third and each other dependent child. In addition, parents may apply for tax relief for children visiting the kindergarten of CZK 14 600 (approx. EUR 562) per annum. In case of the taxpayer’s tax liability having been fully covered by tax reliefs, the child tax relief can also be used as a child tax bonus. In this case, the tax bonus increases employee’s net salary or is paid to the tax payer by the tax authorities. Tax payers can also claim proportionate amounts of tax reliefs, with the exception of the taxpayer allowance, if the applicable conditions are met for part of the year only.

TAX RATE The employee’s tax liability is computed from the tax base reduced by the above tax base deductions, using the 15 % tax rate. In case the gross income of the employee exceeds annual maximum assessment base for social security contributions, solidarity surcharge tax of 7 % should be applied on employment income exceeding the limit4. For non-residents from countries outside the European economic area with no treaty on exchange of tax related information with the Czech Republic in place, income from dividends, capital gains, interest, royalties and remuneration to members of statutory bodies is subject to 35 % withholding tax rate.

TAX ALLOWANCES Tax payer may lower the annual tax liability through deduction of tax reliefs. The below tax reliefs, except for

TAX COLLECTION The employer is obliged to operate monthly payroll to calculate monthly payroll tax withholding and remit the payroll tax withholding to the tax authorities. If the tax payer has only one employer at each time during the year, does not receive other income above CZK 6 000 (approx. EUR 231) (apart from income that is subject to the final withholding tax, e.g. interests and dividends from Czech companies) and individual’s employment income is lower than the threshold for solidarity tax CZK 1 672 080 p.a. (for 2020), the tax payer is not obliged to file annual tax return.

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Consequently, the tax payer may ask the employer to perform annual tax reconciliation to apply tax base deductions or tax reliefs that cannot be applied within the monthly payroll (simplified annual tax filing). In other cases, the tax payer is obliged to file annual tax return. The tax return for the respective tax period (calendar year for personal income tax) must be filed with the tax authorities by 1 April of the following year. The filing deadline may be extended until 1 July if the tax payer grants a power of attorney to a certified Czech tax adviser, or on the basis of a special application. Another extension of the tax return filing deadline until 1 November of the following year is available if the tax payer has income from abroad.

Residence (permanent home) is a place where the payer has a permanent residence, i.e. an apartment which is available to him/her at all times, whether owned by him/ her, or rented, and where the payer intends to be staying (depending on his/her personal and family situation). The apartment may be rented to another person, but only in a form enabling the payer its use according to his/her needs.

Or in connection with a previous, current or future performance of dependent activity, regardless of whether the activity is carried out for the payer of the income or not.

Employment income is subject to social security and healthcare insurance premiums. The assessment base for premium computation is derived from the employment income, where the assessment base is the sum of the income subject to personal income tax. The premium consists of a part to be paid by the employer and of a part to be paid by the employee. The payer of the premium is the employer, who withholds the premium from the employee’s monthly income. The employer pays both these parts to the social security and healthcare insurance authorities. The employer pays 24.8 % of the assessment base as a social security premium and 9 % of the assessment base as a healthcare insurance premium; 6.5 % of their assessment base for social security and 4.5 % for healthcare insurance are withheld from employees, members of statutory bodies and executives. A maximum annual assessment base5 is set for social security premiums. There is no maximum premium set for healthcare insurance contributions. For employees changing employment in the course of the calendar year, or working for several employers simultaneously, the maximum assessment base for social security premiums is calculated for each employer separately. If the amount of the employee’s social security premium exceeds the annual maximum, the employee may claim the return of the surplus after the end of the year. No premium overpayment arises to the employer. Employees coming from another EU country, or a country with which the Czech Republic has a bilateral treaty in the area of social security and/or healthcare insurance, may apply for an exemption from premium payment in the Czech Republic. On the basis of such an exemption, employees are not required to contribute to the social security and/or healthcare insurance systems in the Czech Republic, but remain covered by their home social security and healthcare insurance systems. As a member state of the European Union, the Czech Republic is bound by the EU social security regulations (currently applicable to all member states of the European economic area and Switzerland) and other EU law. In addition, to prevent double social security contributions and to assure benefit coverage, the Czech Republic has entered into social security agreements with several non-EU jurisdictions, including Australia, Canada, India, Japan, Korea (South), Russian Federation, or the United States. MARTINA KNEIFLOVÁ ONDŘE J POLÍVKA ERNST & YOUNG E-mail: Ondrej.Polivka@cz.ey.com

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In general, 33.8 % of income up to the amount of the social security premium from the maximum assessment base and 9 % above this maximum assessment base.

In force as of 1 January 2013 going forward. Only gross income above CZK 1 672 080 (approx. EUR 64 311) in 2020 is subject to the solidarity surcharge tax of 7 %. The amount for 2021 is yet to be confirmed by the authorities.

For healthcare insurance premium, as of 1 January 2013, the annual ceiling is no longer applicable. For social security premiums, the annual ceiling amounts to 48-fold average wages; in 2020 it is CZK 1 672 080 (approx. EUR 64 311). For 2020, the annual social security ceiling is yet to be confirmed by the authorities. 5)

Photo: www.pixabay.com

SOCIAL SECURITY AND HEALTHCARE INSURANCE PREMIUMS

REGIONS

Prague

PRAGUE REGION

Prague is an important cultural and artistic hub, its centre with an area of 1 106 hectares is included in the UNESCO Cultural Heritage List, which makes the city one of the most sought-after tourist destinations in the EU. In size, the city is the smallest region, while the number of its population is the second largest, with more than 15 % of its inhabitants being foreigners. The Region has the lowest unemployment rate on a longterm basis and the highest wages. Housing construction in Prague is the second highest, after the Central Bohemia Region. Altogether 113 000 students are enrolled in Prague´s universities, which accounts for 39 % of all university students in the Czech Republic. Prague´s collective accommodation facilities, with 93 000 beds, have the highest capacity of all the country´s regions.

ECONOMIC POTENTIAL Prague generates about one-quarter of the country´s gross domestic product (GDP). Higher GDP creation rate is typical of capital cities, due to a number of factors, for example: a large proportion of people working in Prague and generating value added there, are not resident

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in the capital, most of the central bodies of the public and private sectors are concentrated in the city and a number of firms having their headquarters in Prague are not registered there, which also includes foreign affiliations of supranational companies. The indicators of net disposable income of households, i.e. values the households have for saving or consumption, however, show that Statistical Data Population Gross wage Unemployment

31. 3. 2020

1 325 280

1.-3. Q. 2020

CZK 42 760 (approx. EUR 1710)

30. 7. 2020

3.23 %

Source: Czech Statistical Office

Photo: © CzechTourism archives, Author: Michal Vitásek

Prague is one of the most attractive and successful regions in Central Europe. It represents a relatively dynamically developing and successful region, repeatedly ranked by Eurostat among the ten wealthiest regions in the European Union (measured by gross domestic product per inhabitant). In terms of the number of inhabitants, it is the 15th largest city in the EU, and, regarding area, Prague ranks among medium-sized cities in the EU, with an area of 496 sq. km.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

Prague exceeds the per capita national average much less than is the national average. Prague is an economy oriented on services. Since the year 2000, services have been creating more than 80 % of the capital´s value added, with most of the employed people in the city (81 %) working in services. Prague is the hub of all the country’s motorway routes and is also an important international railway junction. Prague Main Railway Station has undergone a total reconstruction, which was completed in 2011. Passenger and air freight transport is operated mainly by Václav Havel Airport. In 2019, the airport processed 17 804 900 passengers, one million (6 %) more than in the previous year, which is another historical record. During the year, 71 air companies operated regular flights from Prague to 165 destinations all over the world, including 15 long-distance ones. On its long-distance flights the airport recorded a significant increase, by 10.9 %, in the number of passengers. Most passengers used regular flights to Great Britain, Italy, Russia, Spain, and newly also France. The most popular destinations in 2019 were London, followed by Paris, Moscow, Amsterdam, and Frankfurt. The jumper of the year in year-on-year comparison was Antalya in Turkey. This popular holiday destination was the target of 41 % of people more than in 2018. Two destinations with the highest increase in the number of passengers year on year are Amsterdam and Doha, capital of Qatar. After the restriction of air transport in the first half of 2020, the airport is gradually returning to normal. Prague congress industry is an important part of the capital´s tourist traffic and its economy, and the economy of the entire Czech Republic. According to an analysis made by KPMG for the Prague Convention Bureau in 2017, the congress industry accounts for 15 % of Prague´s tourist traffic. At the same time, however, it is a sector affected most by the crisis provoked by the Covid-19 pandemic. According to the latest study of Economic Impact company revenue in 2020 may fall by more than CZK 20 billion. This is 74 % less than the expected sum in normal conditions. The congress industry characterised by great international overspills was subdued already when the first infor-

mation about the spread of the new virus appeared in other countries. The activities affected first by the necessary measures taken by the governments of most countries were mass get-togethers, including business ones. Prague congress industry generates around 80 % of the performance of the entire Czech Republic in the international association event sector on a long-term basis according to the International Congress and Convention Association (ICCA). In addition, before the outbreak of the crisis, Prague´s congress industry was on the rise and the Czech capital held its position among the world´s TOP 10 congress destinations for several years running. In 2019 it placed ninth ranking among destinations such as Paris, Berlin, Barcelona, London, Vienna, and Singapore. In addition, Prague is showing a steady increase in the number of events. In 2019, the number of conferences held in collective accommodation facilities once again broke the record, when altogether 5 668 events were held there, 25 % more than in 2008, according to the Czech Statistical Office, which is the highest number since 2009. Prague´s congress industry is a sector not only of key economic importance, but also of great social and scientific significance for the country and its people. Considering the fact that, according to the long-term statistics of Prague Convention Bureau, more than 50 % of the events taking place in Prague are international undertakings, the further development of the congress industry will also depend on the situation in other countries. Another sector strongly affected in 2020 is the operation of hotels and restaurants. Altogether 1.1 million guests were accommodated in collective accommodation facilities in the 1st quarter of 2020, 27.4 % less than in the same period the year before (-417 000 guests). Accommodation facilities in the other parts of the country also showed a decline (12.7 %). It can be said that the decline in the number of visitors is caused by epidemiological measures in force since March and restricting the provision of accommodation services. In comparison with the previous quarter, i.e. the 4th quarter of 2019, the decline was 46.5 %. Prague is the most visited destination in the Czech Republic. In the 1st quarter of 2020 altogether 36 % of all registered visitors to the Czech Republic were accommodated in Prague´s accommodation facilities.

PRAGUE IS ALSO FOCUSED ON INNOVATION PROJECTS, SUCH AS: INOVACENTRUM ČVUT Innovacentrum is a part of Czech Technical University (ČVUT) in Prague, the aim of which is to support technology transfer, promote cooperation between ČVUT and industry, and mediate the transfer of new technologies into practice. Inovacentrum ČVUT, with its Business Innovation Centre (BIC) statute, is a member of the European Business Network (EBN). More at www.inovacentrum.cvut.cz.

VZLÚ PRAGUE SCIENTIFIC AND TECHNICAL PARK The VZLÚ Scientific and Technical Park in Prague focuses on the development of the aviation, space, defence and safety industries and the transfer of research and development results to practice; its services could be found useful by companies concerned with transport vehicles, power engineering, and construction. More at www.vzlu.cz/cz/ spolecnost/ vedeckotechnicky-park-vzlu-praha/vedeckotechnicky-parkvzlu-praha. The Czech incubator increasingly attracts foreign projects, for example from Switzerland, Slovakia, and India. The main attraction for them is the INNOVATION BIOMEDICAL CENTRE ÚEM AV CR. It is a business incubator for innovation firms concerned with biomedical sciences, and a centre for the support of the competitiveness of start-up firms concerned with Biomedicine. More at bioinova.avcr.cz/ o-nas/ibc.html.

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Prague – Václav Havel Airport

PRAGUE SPACE INCUBATOR Suborbital rockets, small drones, smart applications for pesticide sprayers, superlight bikes, X-ray apparatus for works of art and mobile applications for anglers – these are examples of products and services start-ups have entered in the ESA BIC space incubator in the Czech Republic. Twenty-five start-ups passed through the incubator in 2020. Twenty-one start-ups are concerned with the use of space technologies, four are enlarging the use of their products in the space industry. The technologies and areas they are concerned with include Earth observation, satellite navigation, space technologies, advanced materials and technologies, drones and simulation software. One of the start-ups which entered the ESA BIC affiliation in Prague in 2020 is Varistar, which analyses current data from the European Sentinel satellites and the American Landsat satellites, which it combines with historical data and information technologies in agriculture and creates maps of potential crops and yields. In this way it contributes to a marked decrease in the ecological burden. Varistar is clear evidence of how space technologies can influence something so “non-universal” at first sight as agriculture. The Czech incubator is increasingly used by foreign projects, for example those of Switzerland, Slovakia and India. They are attracted not only by the local academic and industrial environment, but also and mainly the presence of GSA and the future EUSPA.

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EDUCATION Prague is an important centre of science, research and education, a city in which one-third of the country’s public universities and one-half of private institutions of higher learning are concentrated. There are ﬁve large prestigious public universities in the territory of Prague – Charles University, the Czech Technical University, the Institute of Chemical Technology, the University of Economics, the Czech University of Life Sciences – and 23 private universities. The Academy of Sciences and its institutes also have their seats and main activities in Prague, which makes the city a centre of education with an importance reaching beyond the borders of the Czech Republic. There are more than 33 higher learning institutions in Prague, where more than 130 000 students have received education in all types of studies. This is 39 % of all the university students in the Czech Republic. The number of foreign nationals, too, is rising.

Photo: Václav Havel Airport archives

USEFUL CONTACTS: Prague City Council – www.magistrat.praha.eu Portal of the Capital City of Prague – www.praha.eu Tourist Portal of the Capital City of Prague – www.praguewelcome.cz Economic Chamber of the Capital City of Prague – www.hkp.cz

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

CENTRAL BOHEMIA REGION With its geographic position in the central part of the Czech Republic, the Central Bohemia Region forms a ring around the territory of the capital city of Prague, which is its only internal border. A speciﬁc feature of the Region within the regional system is the fact that, within its centre, it encloses the capital, which is a separate region. The Central Bohemia Region does not contain its regional city and the Region’s administrative centre does not lie within the territory of the Region. Together with the capital of Prague, the Region forms a natural agglomeration linked together economically, historically, and culturally. The Region is divided into 12 districts with 10 district towns. The largest in the area is the District of Příbram (15 % of the regional area), and the smallest is Prague-West (5 % of the regional surface area). There is a large number of historically valuable monuments and sights and several protected landscape areas within the territory of the Central Bohemia Region. The greatest concentration of historical monuments can be found at Kutná Hora (St. Barbara Cathedral, the Italian Court, Hrádek, housing the Museum of Mining, the Ossuary, entered in the UNESCO World Cultural Heritage List). Kolín is another town, besides Kutná Hora, ﬁguring in the Czech list of urban historical reservations in Central Bohemia. The most famous castles in the Region are Karlštejn and Točník (Beroun District), Křivoklát (Rakovník District), Český Šternberk (Benešov District), and Kokořín (Mělník District).

ECONOMIC POTENTIAL In the Central Bohemia Region, the economy is growing at a faster rate than is the average rate in other EU countries. In addition, the Region has been one of the economically most advanced regional territorial units in Central and Eastern Europe on a long-term basis. The economic prosperity of the Region measured as GDP per capita is 84 % of the EU average. In comparison with all the other regions of countries in Central and Eastern Europe, the Central Bohemia Region is one of the most advanced. Developed agricultural and industrial production is characteristic of the Region. Agricultural production beneﬁts from the excellent natural conditions of the Region’s north-eastern part. The Region is especially successful in plant production, including the growing of wheat, barley, sugar beet, and, in suburban areas, the cultivation of fruit, vegetables and ﬂowers. Machine building, chemical, and food-processing

are pivotal industries. Besides traditional fields, new and demanding fields and services are being successfully developed. The most important industries in the Region are engineering, the chemical industry, and food processing. The Škoda Auto factory has become an enterprise of nationwide significance. Other industries in the Region are glass and ceramics production and printing. The previously traditional sectors of coal mining, steel production, and the leather industry are on the decline. The intensity of economic activities is heavily influenced by the Region’s location and easy access to main transport corridors. In the Central Bohemia Region, this is especially true of places in the vicinity of the capital with connections to main roads, especially the highways. Water is another mode of transport: some three-quarters of the Labe-Vltava waterway passes through the Region’s territory and is used for both domestic and international transport.

INVESTMENT The Region oﬀers a wide range of investment opportunities. Industrial parks make it possible for investors to realise their new projects in either vacant or partly occupied parks. There are several industrial parks in the Central Bohemia Region. A strong position in the Central Bohemia Region is held by the automotive sector, owing to the presence of two major car manufacturers, Škoda Auto and TPCA. TPCA employs 2 400 people and the firm is one of the largest exporters in the Czech Republic. In 2019, the company exported 210 121 cars. Investors in Central Bohemia have launched large projects. An important investor in the Region is LEGO Production s.r.o., which employs about 2 500 workers in its plant on the outskirts of Kladno. There, the company manufactures mainly decorations and assembles LEGO elements. Its other programmes include large-volume packing, and the research and development of decoration and packaging technologies. Its distribution centre is located in Jirny. LEGO production, s.r.o. has been in the Czech Republic since 2000. Its factory is based in the Kladno-South Industrial Park. In 2013, Amazon company opened a Return Centre in Dobrovíz and, in 2015, it launched a large Distribution Centre there, occupying an area of 95 000 sq. m. Since the beginning of its operations in the Czech Republic, Amazon has invested more than EUR 150 million in its business. The company employs about 3 000 permanent workers and some 2 000 seasonal hands. The industrial zone at Mladá Boleslav covers a surface area of 75 000 square metres. Besides the Škoda Auto car factory, the international company, Faurecia, one of the world’s largest suppliers for the automotive industry, is another major company to have its manufacturing plant located in Mladá Boleslav Industrial Park. Another company expanding its activities is Mars Wrigley Confectionery based in Benešov, Central Bohemia. In 2018, the factory celebrated the 20th anniversary of its existence. Nippon Paint Automotive Coatings (Czech) s.r.o , the Japanese manufacturer of paints for the automotive industry, which in 2018 started the construction of a factory in Ovčáry Industrial Park in Kolín. Many investment parks beneﬁt from

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USEFUL CONTACTS: Central Bohemia Regional Office – www.kr-stredocesky.cz Central Bohemia Region – European Office – www.stredocech-eu.cz/ Central Bohemian Regional Chamber of Commerce – www.khkstrednicechy.cz favourable locations near international highways and main roads. These parks include, for example, Průhonice and Čestlice-Nupaky Industrial Parks (both near the D1, which connects Prague and Brno), Rudná-Nučice (near the D5, which runs from Prague through Plzeň to Germany) and Hostivice-Jeneč and Tuchlovice. Many parks have been established in the vicinity of larger towns such as Kladno, Slaný, Kutná Hora, Příbram, Nymburk, and Rakovník. Another important investor, the Bobcat Doosan Company, is based in Dobříš. This is a unique centre where machines are developed and manufactured; the centre also houses a Training Centre for dealers. The manufacturing plant, which currently employs about 600 people, was built in 2007 and its output is more than 12 000 machines. The Development Centre was opened in 2014. It is concerned with the comprehensive development of building machines – skid steer loaders, compact excavators, telescopic manipulators and accessories for those machines. The machines are developed for clients from all over the world. An important employer in the Region is also the DB Schenker firm, one of the world leaders providing integrated logistic solutions and global forwarding services, using all modes of transport, by road, rail, air and sea. DB Schenker has been represented in the Czech Republic since 1991, through SCHENKER spol. s r.o. The firm has its headquarters in Prologis Park Prague-Rudná, which is also the seat of the German company, Dölken Profiles, making floor mouldings and floor profiles. Kutná Hora, in turn, is the seat of another important firm, Philip Morris ČR a.s., an affiliation of Philip Morris International and the largest manufacturer and seller of tobacco products in the Czech Republic. The Central Bohemia Region is a partner in large scientific projects – the ELI (Extreme Light Infrastructure) and the Biotechnological and Biomedicine Centre of the Czech Academy of Sciences and Charles University based in Vestec (for example, in April 2020, a team of scientists in the Biocev Centre promptly introduced methods enabling a reliable detection of the SARS-CoV-2 virus). ELI is a centre focused on the use of laser technology; its components are four lasers. One of them (L4 ATON) is the world´s most efficient laser, with the aid of which scientists study extreme physical phenomena based on the simulation of processes within the stars. The laser has been in operation since 2018. The research is expected to help to push forward the limits of knowledge in Astrophysics, Medicine,

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EDUCATION The Region is home to the Faculty of Biomedical Engineering of the Czech Technical University (CTU) in Kladno. There are also private universities – the ŠKODA AUTO, a.s. University in Mladá Boleslav, and Academia Rerum Civilium - Vysoká škola politických a společenských věd, s.r.o. (ARC – VŠPSV, College of Political and Social Sciences) in Kolín. Statistical Data Population Gross wage Unemployment

31. 3. 2020

1 388 185

1.-3. Q. 2020

CZK 34 224 (approx. EUR 1 369)

30. 7. 2020

3.32 %

Source: Czech Statistical Office

Photo: © CzechTourism archives, Author: Ladislav Renner

Příbram – Basilica of the Assumption of the Virgin Mary

Nanotechnologies, X-ray Optics, etc. A vast nuclear technology base is in operation at Řež u Prahy. Its SUSEN project has greatly strengthened presumptions for the inclusion of the Czech research and development technological community in the development of Generation IV nuclear and fusion reactor technologies. Two business incubators, Nymburk (www.inkubator-nymburk.eu) and “VTP Zlatníky–Hodkovice”, have been established with the assistance of the Central Bohemia regional authorities. Other scientific and technical parks being prepared or already operating in the Region include, for example, the Březno u Mladé Boleslavi technological park and incubator, VTP SVÚM (Čelákovice), Scientific and Technical Park Mstětice, Scientific and Technical Park Roztoky, Roztoky Park of Science, TECHNOPARK Kralupy (VŠCHT), Prague Innovation Centre (Innocrystal, Hodkovice), Engineering Scientific and Technical Park Buštěhrad, CEROP Kolín, Applied Research Centre Dobříš, UVR Mníšek pod Brdy, and VTP and PI Řež. One of the instruments of the Central Bohemia Region, founded with the intention of supporting research, development and innovation, is the Central Bohemia Innovation Centre. SIC forms partnerships and promotes collaboration between firms and the academic sphere, thus contributing to the growth and development of small and medium-size innovation firms and strengthening competitiveness in the Central Bohemia Region within the framework of the domestic and global economy.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

WWTP Flexidiblok 5 000m3, Russia Company is the developer and producer of facilities for the treatment of domestic, municipal and industrial wastewater. The company's �agship is

TOPAS

WWTP Flexidiblok 5 000m3, Russia

the packaged domestic wastewater treatment plant. This technology is protected by an international patent. TOPAS technology is supplied for capacities between 5 and 400 PE in the form of compact plastic tanks. It is characterized by the high e�ciency, low price and reliable operation with minimal service requirements.

Another important part of the company's production are municipal wastewater treatment plants

MONOBLOK-T for smaller municipalities of 300-1000 PE and

FLEXIDIBLOK for larger municipalities over 500 PE.

WWTP TOPAS 460 PE, Czech Republic

Preferred territories for cooperation and trade: Europe, Asia, Africa, North and South America TopolWater, s.r.o. Nad Rezkovcem 1114/2, 286 01 Čáslav Czech Republic Phone: +420 327 313 001-3 E-mail: topas@topolwater.com; jtopol@topolwater.com

www.topolwater.com

WWTP TOPAS 350 PE, Finland

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PLZEŇ REGION The Plzeň Region is the Czech Republic’s third largest in terms of surface area. Since its inception Plzeň (Pilsen), a city founded in 1295 by order of King Wenceslas II of Bohemia at the confluence of the rivers Radbuza, Mže, Úhlava, and Úslava, has been the natural centre of the Region. The industrial and technological development of the city began in the middle of the 19th century, and step by step it became one of the most important cities in the country. At present, Plzeň is the fourth largest city in the Czech Republic. It has about 172 000 inhabitants, more than 30 % of the population of the Plzeň Region. Besides Plzeň, the role of district centres is played by the towns of Klatovy, Domažlice, Tachov, and Rokycany. Given the low population density, also smaller towns, such as Sušice, Stříbro, Plasy, Kralovice, Horšovský Týn, Přeštice, and Nepomuk play an important role.

ECONOMIC POTENTIAL One of the traditional industries of the Plzeň Region is engineering, building on the history of the ŠKODA Company, today represented by the companies ŠKODA TRANSPORTATION, ŠKODA MACHINE TOOL, and GTW BEARINGS. Another important sector is the food industry with its rich brewing tradition and with Pilsner Urquell at the forefront. The Region´s other traditional sectors are power engineering, with the firms Doosan Škoda Power, BRUSH SEM, and ŠKODA JS. Another industry with a long tradition in the Region is the building materials and ceramics industry, represented by LASSELSBERGER in Chlumčany. The Region´s strategic position is mainly responsible for the development of the automobile sector on its territory, with the companies VIZA AUTO CZ, Shape Corp. Czech Republic, MBtech Bohemia, JTEKT Automotive Czech Plzeň, International Components Group, Faurecia Plzeň, IDEAL AUTOMOTIVE Bor, Eissmann Automotive Česká republika, KDK Automotive Czech, and GRAMMER CZ. Other important industries in the Region are electrical engineering, represented by the firms ŠKODA ELECTRIC, Daikin Industries Czech Republic, and Panasonic AVC Networks Czech, and the aviation and space industries with the companies ZODIAC GALLEYS EUROPE, Aerotech Czech, recision Castparts CZ and Workpress Aviation. The Plzeň Region, together with the South Bohemia Region, form a territorial unit, NUTS II Southwest. The Region is the seat of more than one hundred scientific, research and development groups created by the Region´s university faculties, institutes and scientific workplaces. They include, for example, the Regional Technological Institute (RTI), the NTIS Research Centre – New Technologies for the Information Society, the Regional Innovation Centre for Electrical Engineering (RICE), New Technologies – NTC Research Centre, and the Biomedical Centre. In addition, a number of

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private institutions with a long tradition and transnational ties, such as COMTES FHT and the Plzeň Research and Testing Institute, concern themselves with top research and development. For several years, the City of Plzeň has been working on the improvement of the life of its inhabitants using smart technologies. Under the Smart City Plzeň programme the city has launched or has prepared dozens of projects in the areas of environmental protection, transport, information technologies, education and safety and has become one of the pioneers of the Smart City initiative in the Czech Republic. The projects it has already completed include the launching of battery trolleybuses in municipal transport, the use of special tablets with online interpreters for the deaf at the municipal offices, and the installation of cameras in public transport cars for greater safety, life-saving appliances in the streets, traffic intensity maps, and free WIFI in public spaces.

INVESTMENT Demand for industrial and logistic real property in the Plzeň Region is at about the same high level as in Prague and its environs. The Plzeň Region has long been a much sought after locality, attracting especially German companies. Thanks to its good quality transport infrastructure and a sufficient supply of skilled labour, the Region has become an industrial base especially for German car Statistical Data Population Gross wage Unemployment

31. 3. 2020

590 461

CZK 32 800 1.-3. Q. 2020 (approx. EUR 1 312) 30. 7. 2020

Source: Czech Statistical Office

3.34 %

Photo: © CzechTourism archives, Author: Václav Jirásek

The Region is one of the economically most developed territories in the Czech Republic, combining industry and agriculture, with vast belts of forests stretching across the border mountains. Forests cover 40.4 % of the Region´s total surface area. From this point of view the territory of the Region can be divided into two parts: the Plzeň industrial agglomeration and areas formed by the Šumava and Bohemian Forest Mountains, which are attractive especially for tourists. Farmland accounts for 49.3 % of the total surface area of the Region, 66.9 % of which is arable land. As a part of Western Bohemia, the Plzeň Region has the 5th highest GDP per capita in the country. It is the third largest region in the Czech Republic, and the ninth most populous, accounting for 5.4% of the country’s total population. A great amount of the area’s highly skilled workforce comes from this region, especially thanks to the University of West Bohemia in Plzeň, which provides 11 000 students/ year with a wide variety of in-depth study possibilities, primarily in the machine-building and electrical engineering sphere.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

Plzeň

factories. A large part of the demand for industrial and logistic real estate comes from e-commerce firms, besides the automotive industry. E-shop operators find West Bohemia advantageous, mainly for its suitable geographical position at the crossroads of European distribution channels. Investors wishing to start or enlarge production prefer to locate their businesses in industrial parks along the D5 motorway, where they find sufficient vacant surfaces. These surfaces are mainly used for the location of warehouses, manufacturing enterprises, development centres and logistic service facilities. Industrial parks play a key role in programmes to attract foreign investors to Plzeň and the Plzeň Region. The Plzeň Borská pole city industrial park covering an area of 105 ha is located in the south-western part of the city near the premises of the University of West Bohemia in Plzeň and the ŠKODA industrial park. About 40 % of the firms located there are Czech companies. As regards foreign firms, the most represented are German and Japanese companies manufacturing parts for the automobile industry, precision engineering products, air conditioning systems, moulds and plastic prototypes. Many of them concern themselves with research and development. At 31 December 2019 the 41 firms located in the park employed approximately 9 800 people.

USEFUL CONTACTS Plzeň Region Portal – Regional Office – www.kr-plzensky.cz Municipality of the City of Plzeň – www.plzen.eu BIC Plzeň – Business and Innovation Centre – www.bic.cz Chamber of Commerce of the Plzeň Region – www.hkplzen.cz Regional Development Agency of the Plzeň Region – www.rra-pk.cz CzechInvest, Regional Office for the Plzeň Region – www.czechinvest.org Another industrial park is CTPark Plzeň, covering an area of 30 ha. It is situated west of Plzeň Borská Pole Park and is easily accessible from the D5 motorway and by individual passenger and public transport from the city centre. A number of major international companies have located various types of business operations in the area. The park is ideal for companies locating high-tech, R&D and product development centres in the Region. CTPark is a leading project in the Region, oriented towards hi-tech companies. It locates modern logistic centres and rental halls for light industry production, services and trading. There are also warehousing companies and domestic and international freight haulage and distribution firms, including MD Electronic, Sumisho Global Logistic Europe GmbH, PPL, DHL, Asteelfl ash Plzeň s.r.o., and Exova s.r.o. A modern office compound, the Avalon Business Centre, opened in the central part of Plzeň, on the site of the former Typos printing works. The administration and business centre, covering a surface area of 0.595 ha, offers modern working conditions for companies of different sizes. Avalon´s current renters include, for example, Sony DADC, Openmatics s.r.o., ABB s.r.o., Provident Financial s.r.o., Sanaplasma, and Swiss Life Select Česká republika s.r.o. The investor of the project is Expandia a.s. The compound houses 14 companies, which employ some 850 people. One of CEE’s most successful business parks, CTPark Bor is strategically located in Western Bohemia, 50 km from Plzeň’s city centre, with excellent highway connectivity and only 15 km from the German border. The routes and important trade paths lead through not only Germany,

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but even further, to Italy. It is an ideal location for manufacturers in the auto supply chain and for logistics providers in e-commerce serving the Czech and/or German markets. CTPark Bor has more than 23 tenants who employ over 2 000 people, which will rise to 3 000 after further expansion, for which our large-scale, A-class facilities are perfectly equipped for expansion.

EDUCATION A great advantage of the Plzeň Region is the ample supply of skilled labour. The Region oﬀers a wide range of secondary institutions in the branches of electrical, mechanical, and civil engineering, as well as in transport. Another source of skilled workforce is the University of West Bohemia in Plzeň (UWB – ZČU in Czech). The University seeks collaboration with the business sector and targets the specialisations of its branches of study so as to meet the demands of the labour market. UWB has nine faculties (e.g. Mechanical and Electrical Engineering, Economics, Applied Sciences). In 2016, the University opened a new institution, the Regional Innovation Centre for Electrical Engineering (RICE). The University has hundreds of projects to its credit, which have greatly contributed to the development of new technologies or their innovation. Another specialisation in which it has achieved good results is social sciences. Archaeologists, anthropologists and sociologists, too, can pride themselves on their achievements. Over the past ten years, the University was granted 39 patents in the Czech Republic, four in the EU and 30 in the USA. Plzeň scientists also participate in foreign projects. One of them is the Czech-Bavarian cross-border project, which brought together the University of West Bohemia and the German companies Strategische Partnerschaft Sensorik and Sensorik-Bayern. “The purpose of the project is to help people whose bodies do not work, but their brains are functioning normally. They mostly have to lie in bed, they cannot speak or move and their only means of communication is the brain,” explains Roman Mouček of the Department of Informatics and Computer Science, head of the project. A part of the prototype of the BASIL system based on brainwave scanning is a cap with several electrodes, which the person has on his or her head. Very important is the visualisation of symbols representing the needs or wishes of the person concerned; such symbols are, for example, doors, light, food or the lifebuoy. How does BASIL work? “For example, the person dependent solely on brain activity may be hungry or thirsty, he or she may be hot or cold, or needing a toilet... And we have no other way to learn about it except through the person´s brainwaves. The inventors were supposed to make the first presentation of the complete prototype of the BASIL system at the INSPO 2020 (Internet and Information Systems for Persons with Specific Needs) conference devoted to the latest aids, applications and technologies for persons with specific needs, which was to be held on 28 March. Due to the coronavirus pandemic, however, the conference was postponed until October 2020 and held online. Another project, the research of electric drives, brought together the Faculty of Electrical Engineering and the German concern ZF, one of the world leaders in the area of technologies and innovations in the automobile industry. Thanks to the strategic partnership between the University of West Bohemia and ZF, the Faculty of Electrical Engineering, one of the largest European research groups in power electronics and drives, could combine its know-how with the production-technological base of the ZF concern, an innovation leader in the automobile industry. This combination is of key importance for the generation of new technologies and products in the area of electrified drives of vehicles. The German manufacturer of automobile components, ZF Friedrichshaven,

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has representations in seven cities in the Czech Republic; one of its development centres and its affiliation OPENMATICS have their headquarters in Plzeň. One of the ZF manufacturing plants is based in Staňkov in the Domažlice District. The ZF development centre in Plzeň employs 600 people, most of them graduates of the University of West Bohemia. Another interesting project of the University is the development of the CIIRC RP 95 respirator. Its production has increased from the initial several hundred to up to the current 10 000 pieces a day. The respirators are intended to protect especially the medical staff from the new coronavirus infection. Standing at the head of the project are scientists of the Czech Institute of Informatics, Robotics and Cybernetics (CIIRC) of the Czech Technical University (CVU) and experts of the Faculty of Electrical Engineering of the University of West Bohemia in Plzeň. The aim of the CIIRC scientists was to develop a respirator that can be made and immediately used anywhere in the world. The intention was to use 3D print in its production with injection of the plastic into moulds enabling largescale production. According to experts, the respirator has higher protection ability than the FFP3 respirator. Great merit for the development of the key components of the respirator is due to a group of experts of the Electrical Engineering Faculty of the University of West Bohemia and their know-how in the manufacture of the polymer parts of the respirator. They participated in the development of the silicone exhalation valve and the silicone sealing material of the respirator. “The aim was to ensure that the shape of the respirator be adaptable and fitting perfectly so that all entering air may pass only through the filters, thus preventing virus penetration,” František Mach of the Plzeň Faculty of Electrical Engineering explains. The respirator is prepared for printing on the 3D HP Multi-Jet Fusion printer, which creates materials without any micropores. The half mask is completely sterilised so that it can be reused. The only thing to do is to disinfect it and change the filtering material. Only workplaces fitted with a special 3D Multi-Jet Fusion printer can produce the new CIIRC RP95 respirators. There are eight such printers in the Czech Republic.

ˇ REGION PLZEN LOCATION FOR INNOVATION AND INDUSTRY OF THE FUTURE In terms of economic performance the Plzeň Region, with its traditionally strong industrial universities with new research centres, is one of the leading regions of the Czech Republic. It has manufacturing industry and high-tech branches located there and the lowest unemployment rate of all the regions. The Plzeň Region offers wide .

Industrial Tradition

Environment for Innovation

A guarantee of knowledge and experience in the Plzeň Region

The most important institutions offering support services for the development of research, development and innovation in the Plzeň Region are BIC Plzeň – Business and Innovation Centre, the Regional Development Agency of the Plzeň Region

especially Škoda Transportation, Škoda Electric and DOOSAN. Their products, such as turbines, trolleybuses, tramcars and train sets, are exported to the whole world. Another internationally known representative of a successful sector – the food industry, is Pilsner Urquell.

Technological Sophistication

Joining innovative solution programmes is possible in the enterprises in the Region are companies manufacturing components for the automobile industry, which owes much of its development to its closeness to Germany and its manufacturing facilities in the Czech Republic. Other successful sectors with a great potential in the Plzeň Region are engineering and mechatronics, followed by electrical engineering and the power industry. Another sector with a growth potential and good prospects of their practical application is informatics and communication technologies.

Top Standard Research The Biomedical Centre in Plzeň is a workplace engaged primarily in development and research in the area of organ replacement and regeneration. It has to its credit a number of discoveries of world importance it has made since 2014, when it opened in the newly built premises. Four research centres of the University of West Bohemia, including the European Centre of Excellence and 2018, 60 % of the expenses of the Centre was covered by the business sector. In that year the Centre carried out nearly 75 % of research and development work in the Region. Plzeň´s business companies participate in international R & D projects supported under the HORIZON 2020 and Eureka, Eurostars and INTERREG programmes.

project in the Plzeň Region as regards R & D propagation and popularisation in the Plzeň Region is the Techmania Science Centre. The institution entrusted with the support of the creative industry is DEPO2015. The Administration of Information Technologies in the city of Plzeň operates the Dronet and the Robotics Centres in the city. The Region offers surfaces for investment.

University City of Plzeň

Nearly thirteen thousand students are enrolled in Plzeň´s two universities. The pillars of expertise in the Region are highstandard technical specialisations at the University of West Bohemia and the Faculty of General Medicine and Dentistry of Prague´s Charles University detached in Plzeň.

SOUTH BOHEMIA REGION With its 10 057 sq. km, the Region takes up 12.8 % of the entire Czech Republic. More than 7 000 ponds, the overall surface area of which today comprises over 30 000 hectares, were built within the Region’s territory in the past. A signiﬁcant part of the Region’s border is formed by the state border with Austria and Germany (total length of 323 km). The Region’s border character provides opportunities for eﬃcient cross-border cooperation in the area of manufacture, as well as in the area of services, together with the development of the tourist trade, which utilises the overall attractiveness, unspoiled nature, and many cultural monuments of the Region. The Region is an important tourist and recreational area, attracting visitors who come to see its many beauty spots, unspoiled countryside dotted with ponds (Rožmberk, Svět) and to experience the unique atmosphere of its historical towns (České Budějovice, Tábor, Jindřichův Hradec, Český Krumlov, Prachatice, Písek). Exceptional natural wonders can be seen in the Šumava National Park, where the greatest attractions are Boubín and Žofín virgin forests. Those seeking recreation will appreciate stays in the vicinity of Lipno Dam and on the banks of the Vltava River. Of the Region’s seven districts, the District of České Budějovice, which is home to almost 30 % of the Region’s inhabitants, has the highest population density. This is mostly due to the concentration of population in the city of České Budějovice itself, which has around 95 000 residents.

ECONOMIC POTENTIAL The prevailing crops in agricultural production are cereals, oleaginous seeds and forage crops, followed by potatoes. In livestok production the main focus is on cattle breeding and pig rearing. Industrial production is concentrated mainly in the České Budějovice District. The principal industrial sector is the manufacturing industry, specifically the automobile industry (Faurecia Automotive Czech Republic, DURA Automotive CZ, Linde Pohony) and the food industry (VISCOFAN CZ, MADETA). The priority sectors in the Region, in accordance with the South Bohemia Regional Innovation Strategy, are the areas of biotechnology, engineering, mechatronics and electrical engineering, and the automobile and textile industries. The Region of South Bohemia is not an area rich in raw materials. Most importantly, there are almost no sources of power-producing raw materials. However, the extensive forests are an important natural treasure, especially the Bohemian Forest and forests in the Novohradské hory Mountains. The forests are mostly coniferous, spruce and pine. The greatest wealth of raw materials comprises deposits of sands and sandy gravels, brick clay, aggregate, and glass sands. Other important raw materials include peat and, in some locations, also limestone, diatomite, and graphite. There is a number of educational and scientific research institutions in the South Bohemia Region. The most important include the University of South Bohemia in České Budějovice, which comprises a public university-type institution. The Region has always had the character of a recreational area, rather than an industrially developed one. The efforts to preserve the natural environment are reflected in the establishment of the Šumava National Park. In agriculture, crop farming is mostly oriented towards cereals, oil crops, and fodder crops. Animal breeding is dominated by cattle and pig farming. The Region has a long tradition

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of fish farming. The overall surface area of ponds used for fish husbandry is approximately 25 000 ha. The ponds supply more than half of the overall fish production in the Czech Republic. The Region also has a significant share in the farming of aquatic poultry (ducks and geese). Industrial production is mainly concentrated in the vicinity of České Budějovice, with significant portions of industry also in the Districts of Tábor and Strakonice. South Bohemia is easily accessible from the northern and eastern parts of the Czech Republic and from neighbouring Austria by the E55 motorway (Prague – České Budějovice – Linz), to which local roads are linked. International railway lines pass through České Budějovice; Veselí nad Lužnicí is an important railway junction. An international airport is located at a distance of approximately 6 kilometres from České Budějovice. In mid-2015, work began on its modernisation, with the aim of transforming it into an airport offering the full range of services for charter, tourist, business, international, and national cargo transport. The airport is expected to become an international public airport soon. Linz, Upper Austria, is the nearest public international civilian airport. The exhibition grounds in České Budějovice host various kinds of exhibitions throughout the year. The international “Bread Basket” agricultural fair and the “HOBBY” exhibition are the most popular. Many types of cross-border collaborations have developed in recent years. One of these is the Šumava/Bayerischer Wald/ Mühlviertel Euroregion, which covers an area of 16 000 sq. km with 1.3 million people. The Euroregion associates 111 Upper Austrian, 107 Bavarian, and 95 Czech municipalities (of which Statistical Data Population Gross wage Unemployment

31. 3. 2020

643 408

1.-3. Q. 2020

CZK 30 906 (approx. EUR 1 236)

30. 7. 2020

2.85 %

Source: Czech Statistical Office

Photo: © CzechTourism archives, Author: Bedna films, s.r.o.

The Region of South Bohemia used to be seen as an agricultural area with developed ﬁsh farming and forestry. Industrial development oriented towards manufacturing activities only started to appear in the Region during the 20th century.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

Český Krumlov

56 municipalities are from the South Bohemia Region). The objective of the South Bohemian Agency for Support to Innovative Enterprising is to support innovative projects in the South Bohemia Region, i.e. the application of research results in practice and support of enterprises pursuing these activities. An important project is the administration of the information portal concerning Czech biotechnologies Gate2biotech (www. gate2biotech.cz/) and the operation of the South Bohemian Scientific and Technical Park. The South Bohemian Scientific and Technical Park, opened in 2014, offers equipped offices and laboratories, including laboratory instruments, technological halls, lecture and conference rooms, and other facilities. It also invites competitions for the best business project – in 2018, for example, the competition was won by BCF with its Virtual Lab start-up project, which assists managers with their problems in public speaking. In 2020, VIRTUAL LAB became part of the HACK THE CRISIS virtual hackathon, organised by CzechInvest Agency with the purpose to help to mitigate the impacts of Covid-19. VIRTUAL LAB came forward with its VRJIPka application, facilitating the safe training of

USEFUL CONTACTS South Bohemian Regional Authority – www.kraj-jihocesky.cz South Bohemian Chamber of Commerce – www.jhk.cz South Bohemian Agency for the Support of Innovation Businesses – www.jaip.cz University of South Bohemia – www.jcu.cz City Authority of České Budějovice – www.c-budejovice.cz the medical personnel in virtual reality. Already in the first round of evaluation VIRTUAL LAB was included in the best evaluated projects category. Another interesting firm located in the park is, for example, LARX s.r.o, concerned with the development of the environment with smart household software controlling different household elements by mobile phone. In direct cooperation with the Austrian firm, which owns a licence for the LOXONE operating system for the control of smart households and is the manufacturer and sole owner of the entire system of LOXONE household automation technology, it is developing an upgrade for the user interface of this system (smart household control by telephone, tablet, etc.). Fiedler AMS, s.r.o., in turn, specialises in the manufacture and development of electrical equipment for applications in water management and environmental protection. The firm cooperates in the research and development of new systems with scientific workplaces. The monitoring and measuring systems developed by Fiedler AMS, s.r.o. are widely used in the Czech Republic within the sector and, owing to their modular character, they have a good chance to succeed also in other branches. Temelín is a community in South Bohemia where the Czech Republic´s largest electricity supplier, Temelín Nuclear Power Station, covering one-ﬁfth of domestic electricity consumption, is located. 2019 was another very good year for the power station, when it generated nearly 15.76 terawatt hours of electricity, the second highest output in its history. Its highest output, 16.48 terawatt hours of electricity, was

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Písek

INVESTMENT The Region has several industrial parks (locations at http://invest. kraj-jihocesky.cz) and cluster initiatives. One of the largest and most attractive industrial parks in the Region is Písek-Čížovská Industrial Park. With its surface area of 50 ha, this is the second-largest park in the Region and one with the best links to the motorway system. The largest park, with a surface area of nearly 62 ha, is Domoradice-Český Krumlov Industrial Park. Smaller industrial parks in the Region can be found in other towns – České Budějovice, Milevsko, Protivín, Soběslav, Strakonice, Třeboň, Jindřichův Hradec, and Nové Hrady. An interesting investor is, for example, the firm Schwan Cosmetics, the world´s largest manufacturer of wooden cosmetic pencils. In 2019 the company opened a new hall, which is designed so as to be friendly to the environment, without interfering with the ambient countryside. Technologically it meets the most up-to-date cosmetics production standards. Schwan Cosmetics was founded in Český Krumlov in 2001, linking up with the wooden cosmetic pencil manufacturing tradition of 1927. More than two billion pencils have been made since their production started there. The firm is one of the most important employers in the South Bohemia Region. The 2016 Investor of the Year in the Production and Technology Centre category is Robert Bosch, spol. s r.o. in the South Bohemia Region. Robert Bosch, German manufacturer of automobile parts, is enlarging its research and testing centre and its manufacturing plant in České Budějovice. The investment is focused on the building of development facilities and technologies for the manufacture of new products. In 2019 the firm invested CZK 650 million in the new development and technological centre. The centre specialises in the applied development of automobile components for Bosch clients all over the world. The building will be used by 600 development and technical workers. The new development and technological centre is fitted with three acoustic testing chambers for the testing and noise measurement of car components. One of the acoustic chambers is an anechoic room for measuring especially silent products with background noise of around 6 dB(A). This is very important, especially for the sound testing of very silent components of electric cars. The new building of the centre is a part of a three-year investment project for the enlargement of the production capacity and the development activities in the České Budějovice plant. Total investment in the production and development centre between 2017 and

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2020 will be nearly CZK two billion, CZK 850 million of which is invested in the actual building of the development and technological centre and its equipment.

EDUCATION With more than 11 000 students, the University of South Bohemia in České Budějovice (founded in 1991) is the largest educational and scientific institution in the Region (by national comparisons, it is a medium-sized university). The University offers a wide range of study courses run by eight faculties – Economics, Philosophy, Education, Science, Fish Husbandry, and Protection of Waters, Theology, Agriculture, and Health and Social Studies. The University participates in a number of international research projects. For example, its scientific workers helped to develop a method making it possible to accurately assess and evaluate data concerning biodiversity. The method will assist ecology specialists in finding answers to queries, e.g. how the functioning of ecosystems is influenced by the current loss of natural diversity. The University of European and Regional Studies, the first and largest private higher learning institution in the South Bohemia Region, specialises in the education and training of workers in public administration and its institutions and organisational units. The Institute of Technology and Economics in České Budějovice and the Department of Management and Economy of Prague Technical University in Jindřichův Hradec are no less important educational institutions in the South Bohemia Region.

Photo: © CzechTourism archives, Author: Mark BBDO

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KARLOVY VARY REGION The Region of Karlovy Vary lies in the westernmost part of the Czech Republic at the border with Germany. When it comes to size, it belongs among the smallest of all Czech regions, but when it comes to historical monuments, exceptional experiences and natural wealth, it ranks among the most beautiful and the most tourist attractive regions.

SPA & WELLNESS The renown of the Region of Karlovy Vary has always been closely bound up with balneology. Not only the best known Czech spa of Karlovy Vary is located on its territory, but also other significant spa towns, i.e. Mariánské Lázně, Františkovy Lázně, Lázně Kynžvart, and Jáchymov. The spa resorts and hotels offer its guests a wide variety of wellness stays and spa programmes that are based on the tradition of exploiting natural healing resources. Their favourable

Mariánské Lázně

100

2021

effects have been verified by centuries of experience, as well as by modern scientific methods.

HISTORICAL MONUMENTS You may find a vast number of notable architectural sites and monuments on the territory of the Region of Karlovy Vary. The most significant ones include Bečov Castle and Chateau with the unique Reliquary of Saint Maurus, the spa colonnades in Karlovy Vary, Mariánské Lázně, and Františkovy Lázně, Loket Castle, the Premonstratensian Monastery in Teplá, Cheb Castle – the only imperial palatine in the country, and many more.

ACTIVE HOLIDAY Tourist resorts in the Krušné hory Mountains and many sports areas and complexes throughout the region allow you to spend your holiday actively in

Photo: © CzechTourism archives, Author: Bedna films, s.r.o.

HISTORY In the Middle Ages, small settlements began to appear in the Krušné hory (Ore) Mountains and silver, later other ores were mined in their vicinity. At the end of the 19th century, mining operations in the surroundings of the town of Jáchymov were literally put on the map thanks to the discovery of the radioactive element of radium in the uraninite from the local mines by Marie Curie-Sklodowska. Likewise, rich deposits of kaolin triggered the foundation of prominent porcelain factories. Other premium local produce that has gained world repute includes glass made by Moser Glassworks or Becherovka herbal liqueur from Karlovy Vary. For more than 650 years, the Region has been inherently tied to spa treatment, which utilises local natural resources, such as thermal and cold mineral springs, mud, peat, and gas.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

Karlovy Vary

any part of the year. The most popular winter resorts are Boží Dar and nearby Klínovec, as they offer a great variety of downhill courses, cross-country skiing trails and snowparks. In addition, hundreds of kilometres of tourist paths and cycle paths are available to hikers and bikers in the remaining seasons of the year. Golfers will undoubtedly enjoy 10 golf courses and several indoor golf centres. Those keen on tennis, water tourism or climbing will also have a great time. In 2019, the Karlovy Vary airport processed 62 434 passengers, 43 % more than in the previous year. This increase is mainly due to cooperation with Pobeda airlines, which operates a regular flight between Vnukovo airport in Moscow and Karlovy Vary. The number of movements at the airport increased by 41 % to 7 736, mainly thanks to the opening of the 1st stage of F Air aviation school. Tourism continues to be one of the most important sectors in the Karlovy Vary Region. This Region is currently the fourth most visited among the 14 regions into which the Czech Republic is divided. The average length of time spent by guests in the Region is nearly five days. The greatest growth was recorded by domestic visitors, but the number of foreign tourists increased as well.

USEFUL CONTACTS Karlovy Vary Regional Authority – www.kr-karlovarsky.cz Regional Chamber of Commerce for the Poohří Area – www.rhkpoohri.cz Internet portal for investors in the Region of Karlovy Vary – www.karlovyvary-region.eu District Chamber of Commerce in Cheb – support for entrepreneurial activities – www.ohkcheb.cz City Authority of Karlovy Vary – www.mmkv.cz ECONOMIC POTENTIAL The current economy of the Region is characterised by the large share of the services sector in the Region´s gross added value creation. Most responsible for this high share is the spa business in combination with tourism. The Karlovy Vary Region accounts for nearly 50 % of the number of spa patients spending their time in the Czech Republic, with nearly 95 % of this number being foreign guests. As regards the manufacturing industry, the most important sectors in term of their shares of revenue and employment are the manufacture of metal constructions and metal products, engineering, the automotive industry (across a number of industrial sectors, which also include a large proportion of automobile industry suppliers), the manufacture of other non-metal mineral products (porcelain, glass, ceramics, building materials), the electrical engineering industry, chemical industry, the manufacture of rubber and plastic products, textile production, and the production of beverages. The last mentioned is a locally specific sector of industry due to its use of natural mineral waters from local springs occurring in the Region in very high concentrations. There are only very few large firms (especially manufacturing ones) in the Region and a substantial part of its economy is formed by small and medium enterprises, which account for the decisive part of most of the local sectors of industry. Many of the firms in the Region cooperate actively with scientific and research institutions, for example the firm Synthomer in

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Sokolov cooperates with the Chemical Processes Institution of the Academy of Sciences, the technical universities in Prague and Brno, Synpo Research Institute and other institutions at home and abroad. Regular cooperation is pursued by WITTE Nejdek engineering firm, which has its own development department and cooperates with the Engineering and Electrical Engineering Faculties of the University of West Bohemia in Plzeň and the Engineering Faculty of the Technical University

INVESTMENT The Region offers a number of industrial parks and zones. Especially successful in this respect are Cheb and Ostrov, in addition to a number of other towns and localities. For example, Aš Industrial Park, on the territory of the town of Aš (13 090 inhabitants) is a ‘greenfield’ project. The land, with a total area of 108 hectares, is designated for sale or lease to companies which will engage in economic activities here in the areas of light industry, trade and crafts, without any negative effect on the environment. The town of Aš and its surroundings is a traditional area for the textile industry. But there are also several major enterprises concerned with engineering production. The town is situated on the border with Germany (Aš–Selb border crossing). The Region’s advantage is a low-cost and experienced workforce, especially in mechanical and electrical engineering and textile production, in addition to having a good knowledge of the German language. The 35-hectare Cheb Industrial Park is situated on the eastern edge of the town of Cheb, near a high-speed bypass, a mere 8 km from the Pomezí/Schirnding border crossing to Germany. The plots, owned by the Cheb municipality, are designated for the siting of production facilities, logistics centres and commercial or service buildings, preferably for investors who will ensure production with a higher value added. Cheb Industrial Park is rated as the best in Central Europe by the experts who compared industrial parks across Central Europe as

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a part of the CIJ Awards 2017 competition. Cheb gained the Best Industrial Park rating, thanks to investments by the Accolade financial group in industrial rental buildings for DHL, BWI, and Tchibo companies. Staré Sedlo Industrial Park is situated near Sokolov (24 177 inhabitants) and Staré Sedlo (820 inhabitants). Given the good transport links, the area is designed as a site of strategic importance for the Karlovy Vary Region. The town of Sokolov is situated in the central part of the Sokolov basin, at the foot of the Krušné hory Mountains. The brown coal reserves of nationwide significance, and the related power production, make the Sokolov District a major energy hub of the national and international transmission systems. The town is situated on the R/6 high-speed road, on the international Nuremberg - Cheb - Sokolov - Karlovy Vary - Prague international route. An Statistical Data Population

31. 3. 2020

590 461

Gross wage

1.-3. Q. 2020

CZK 32 800 (approx. EUR 1 312)

30. 7. 2020

3.34 %

Unemployment

Source: Czech Statistical Office

Photo: © ŽIVÝ KRAJ - Destination agency for the Karlovy Vary Region archives

Loket Castle

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important role is also played by the Cheb - Karlovy Vary - Ústí nad Labem regional railway. Skalná – a locality suitable for investment construction in the area of industrial and smallscale production, within easy reach of existing engineering networks. The local authority is open to further investment and cooperation with the business sector. The BSS Industrial Park of Báňská stavební společnost s.r.o., covering an area of 14.3 ha, is situated right in the city of Sokolov, in Chebská Street linking Sokolov with Dolní Rychnov. The compound comprises administration buildings, halls, and warehouses. It can be reached by local roads, with a link to the R6 Cheb-Karlovy Vary road. The Park has its own railway siding. It is suitable for public utilities, industrial production, or as a logistics centre, etc. In 2020, a plan was announced to build a giant industrial park on a surface area of 120 hectares east of the town of Cheb in the vicinity of D6 motorway. The park will also comprise a research and development centre. Another industrial park, Cheb South, opened in Cheb in 2020, where Panattoni completed one of the halls for the German on-line retailer, Real Digital, who will build a distribution

centre for the German market in the park. Real Digital is planning to create 150 jobs there. “Cheb has attracted our attention by its strategic geographic position near the German border and the readiness of all the facilities needed, with guaranteed timing. In addition, we appreciate the fact that thanks to the revitalisation of the former industrial compound no arable land or surfaces in the open countryside will be taken up. The new distribution centre meets all our requirements,” said Terry Rogers of Real Digital. The company operates one of the largest internet shops in Germany. Pavel Sovička, Managing Director of Panattoni for the Czech Republic and Slovakia, pointed out that despite the fact that the key phase of the park development took place while the company was coping with the coronavirus pandemic the time schedule of the park construction was observed.

EDUCATION The Region is home to a number of secondary-level vocational schools, which have been focused for decades on education in local traditional sectors and branches, often specific to the Karlovy Vary Region. In cooperation with the Sokolov Municipality and the Karlovy Vary Region, the College of Information Management, Business Administration and Law offers studies in Applied Informatics and Management Economics in Sokolov. The town also hosts the Faculty of Mechanical Engineering – an establishment of the University of West Bohemia in Plzeň. The Czech University of Life Sciences – namely the Faculty of Environmental Science and the Faculty of Economics and Management – has a distance learning centre in Karlovy Vary. For the time being, the only school in the Region also offering follow-up Master´s degree studies is the private University of Finance and Administration in Karlovy Vary, opened in 2017. In 2018, the 3rd Medical Faculty of Prague´s Charles University opened Bachelor´s degree courses in Physiotherapy in Karlovy Vary.

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KARLOVY VARY REGION Region of World-Renowned Spas & Cradle of Czech Golf Since the 14th century, the Region´s powerful curative mineral springs sprouting from the depths of the earth have been tamed to help people to regain their physical and mental strength. The Karlovy Vary Region is the pulsating heart of Czech balneology, where guests from all continents arrive to find rest and recuperation. The Region´s ancient spa towns are wide open to all, so don´t hesitate to come and see for yourselves, and experience the welcoming atmosphere with all your senses. The term ‘balneology’ comprises three parts: medicine, prevention, and wellness. You may come to the Region´s spas for recovery after a disease or for relief from a chronic ailment, for slimming, rejuvenation, or just for a good rest after the everyday hustle and bustle. There all your cares will vanish as you stroll through the historical colonnades with a drinking cup filled with curative spring water and enjoy the warm mineral water baths or mud wraps, not to forget the expert and sensitive treatment by the capable hands of a master masseur.

KARLOVY VARY Karlovy Vary is one of the most beautiful spa resorts in Europe, named after Charles IV, Czech King and Holy Roman Emperor, who founded the spa in 1370. The more than 650-year-old tradition of balneological treatment and the curative effects of the 15 local thermal springs have won the spa a global reputation.

FRANTIŠKOVY LÁZNĚ Františkovy Lázně spa town, founded in 1793 by Emperor Franz I, is a world-renowned mud-bath spa resort. Its unique characteristics are based on its mineral springs with a high carbon dioxide content. The spring water is used in the treatment of gynaecological diseases and disorders of the circulatory and locomotive systems.

JÁCHYMOV The uniqueness of the Jáchymov spa, the first radon spa in the world, lies in the extraordinary healing effects of water with high radon concentration, and in the reputable methods of renowned Czech physiotherapists, as well as the individual approach of the local doctors.

LÁZNĚ KYNŽVART This small spa resort is located in the midst of the Slavkov Forest, which creates a suitable climate with extraordinarily pure air. The spa specialises in the treatment of children with respiratory and skin problems.

THE GOLF COURSES NEAR THE WORLD-FAMOUS SPAS Enjoy the perfect golfing experience in one of the most beautiful spots in the Czech region, known for its spas. Exclusively designed courses are located in the midst of Nature. Different golf clubs with different characteristics. A unique experience that will take you from the first tee to the perfect stroke. The vast greens, set amongst the forests and fish ponds, invite you either to practise or to enjoy friendly games, topped off by an evening of relaxation on the terrace of a café under the stars.

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Scotland has always been considered the cradle of golf, while the cradle of Czech golf is undoubtedly the West Bohemian spa region. The first golf course was built on the outskirts of Karlovy Vary as early as in 1904 and another one was soon opened in Mariánské Lázně. Since 2003, this club has been the only one in Central Europe with the right to use the title “Royal Golf Club”. At present, there are 10 golf courses in the Karlovy Vary Region, 7 of which are 18-hole courses. The golf courses in the Region of Karlovy Vary are ranked among prestigious European courses and they often are the venue of amateur, as well as professional tournaments. Several indoor golf centres may be also found in the Region.

THE WEST BOHEMIA GOLF PASS The Golf Pass is a unique golfing service, which makes possible the bargain purchase of 4x or 5x green fees for 6 partner golf courses in Sokolov, Karlovy Vary, Františkovy Lázně, Mariánské Lázně, Cihelny and Lázně Kynžvart. www.zivykraj.cz; www.golf-pass.cz

Photo: © ŽIVÝ KRAJ - Destination agency for the Karlovy Vary Region archives, Author: Mark Edward Harris

MARIÁNSKÉ LÁZNĚ Mariánské Lázně is the famous spa town with its defining blend of healing natural resources, architectural splendour, beautiful countryside, and more than 200 years of famous visitors, such as Chopin, Goethe, and King Edward VII. Thanks to the high content of carbon dioxide, the local mineral and gas baths are completely unique in the world.

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Karlovy Vary Region

Karlovy Vary Region The Region of World-famous Spas You are cordially invited to the Karlovy Vary Region, to the sites where healing mineral springs arise and where you can admire unique natural phenomena, to towns with both rich history and contemporary culture, to mountain resorts where you can practise winter sports as well as enjoy summer well-being.

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ÚSTÍ NAD LABEM REGION

The city of Ústí nad Labem, a transport junction of national and international significance, where important European roads, railway lines and waterways cross, is the centre of the Region. The Ústí nad Labem Region is divided into seven districts (Děčín, Chomutov, Litoměřice, Louny, Most, Teplice, and Ústí nad Labem). In addition, there are four areas in the Region which differ from each other significantly. One of these is the area in the foothills of the Krušné hory Mountains with strongly developed industry, comprising the Districts of Chomutov, Most, Teplice, and a part of Ústí nad Labem. The dominant industries here are power generation, coal mining, engineering, the chemical industry, and glassmaking. The Ústí nad Labem Region has a number of attractive localities for tourists. The development of tourism is one of the Region’s priorities. The best-known natural attractions of the Region include the Bohemian Switzerland National Park, covering an area of 7 900 ha, established in 2000, the Bohemian Highlands, and the Labe Sandstones protected landscape areas, a part of the Kokořín area, and the Lužické hory Mountains, the lovely pathway along the Labe with Porta Bohemica, the Tiská Walls rock formations, and many others.

ECONOMIC POTENTIAL An important role in the economy of the Region is played by brown coal mining and related power generation. The largest coal pow-

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er plants in the Czech Republic (Prunéřov, Tušimice, Ledvice, and Počerady) are to be found in the vicinity of the opencast mines in the Most coal basin (formerly North Bohemia Brown Coal Basin). An equally important role is played by the chemical industry, with UNIPETROL refinery located in nearby Záluží u Mostu. Unipetrol Group is the largest refinery and petrochemical company in the Czech Repubic. Its focus is on oil processing and the production, disStatistical Data Population Gross wage Unemployment

31. 3. 2020

819 713

CZK 31 530 1.-3. Q. 2020 (approx. EUR 1 261) 30. 7. 2020

Source: Czech Statistical Office

5.41 %

Photo: © CzechTourism archives, Author: Bedna films, s.r.o.

The Ústí nad Labem Region, one of the Czech Republic’s most industrialised areas, has been the country’s main energy supplier for years. After the phasing out of intensive coal mining in the 1990s and the revitalisation of the countryside, the Region is regaining its reputation as an area of European significance with unique natural resources. Its efforts to improve the environment still further and to revitalise vast new areas are continuing.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

tribution, and sale of fuels and petrochemical products, mainly plastics and fertilisers. In all these areas it ranks alongside important players on the Czech and Central European markets. Unipetrol Group comprises refineries and manufacturing plants in Litvíov and Kralupy nad Vltavou. Paramo company with its brand name Mogul in Pardubice and Kolín, Spolana in Neratovice and two research centres, in Litvínov and Brno. Unipetrol also has its own network of filling stations across the Czech Republic and Slovakia and Benzina, with 418 filling stations, is the largest gas filling chain in the Czech Republic. Unipetrol is also one of the largest firms in terms of turnover. In 2019 it earned CZK 129 billion and employed more than 4 8000 people. In 2005 Unipetrol became part of ORLEN Group, the largest oil processor in Central Europe. SPOLCHEMIE, a well-known manufacturer of epoxy resins and polyesters, based in the Ústí nad Labem regional centre, has been one of the key players, within the European chemical industry for more than 160 years. It is the world´s first company to obtain the internationally recognised environmental certificate EPO for epoxy resins. The firm´s success rests in the innovation and development of new materials and chemicals. Two research teams based directly in SPOLCHEMIE in Ústí nad Labem are directly linked with the company´s production and business divisions. The teams concerned with the research and development of resins and inorganic substances are developing systems for composites, building materials, paints, and chlorine derivatives. The Synpo, .a.s. research institute, in turn, is a top research workplace, which in 2020 developed a special face mask using the photoactive dye principle, whereby it is protected against undesirable pollutants. Another successful firm in the Region is Glencore Agriculture Czech, focusing on the manufacture of food oils. Lovosice, in turn, is the seat of Lovochemie, a company which is the largest manufacturer of fertilisers in the Czech Republic. Currently its core programme is the production and sale of nitrogen and compound fertilisers in solid and liquid form. Another important traditional sector, which has passed or has been passing through a process of modernisation

oriented on new products is the glass industry. The largest exporter of flat glass is AGC Akutomotive Czech. The firm Czech Porcelain in Dubí is known for its manufacture of blue onion porcelain. This firm, with its ROYAL DUX works in Duchcov, oriented on figural and decorative porcelain, has been on the domestic market for more than a century. A new feature in the Region´s industrial efforts in recent years has been the development of the engineering industry and metalworking under the influence of foreign investors. The companies in this line of production include the manufacture of motor vehicle components (KS Kolbenschmidt Czech Republic, Pierburg, Benteler Automotive Rumburk) with follow-up sectors, such as the manufacture of plastics and non-metal products (SSI Technologies, RAI MOST, TRCZ). There are several research institutes based in the Region, for example UniCRE, which concerns itself with research and development in the area of industrial chemicals and environmental technologies, and The Brown Coal Research Institute and the Balneological Research Institute.

INVESTMENT The Ústí nad Labem Region holds great allure to foreign investors as a region with a lot to offer to investors, including strategic industrial parks (SIP). One of these is Joseph SIP, located in Havraň, Most District, some 8 km from the town of Most with its population of 67 500. It covers an area of 196 ha. The companies located in Joseph SIP and pursuing business activities there are, for example, Nemak Czech Republic, s.r.o. and AFSI Europe, s.r.o. The Triangle Strategic Industrial Park is located in an area whose boundaries overlap three Districts – Chomutov, Most, and Louny. The locality adjoins the Prague - Chomutov - Hora Sv. Šebestiána/ Reitzenhain, Germany expressway, which crosses the I/27 Most - Žatec - Plzeň road. Altogether 11 companies operated in the Park in 2018, employing about 4 000 people. The largest of them in terms of the number of employees is Yanfeng, followed by Grammer and Gestamp. Nexen, with its 400 workers, ranks fourth. Another investor, ZF Chassis Systems Žatec, entered the Park in 2018. It rented a part of the new hall belonging to the CTP Property IX developer company in the southern section of the Park. ZF Chassis has its parent company base in Friedrichshafen, Germany. Its core business is the development and manufacture of innovative drives and undercarriages and active and passive safety technologies for the automotive industry. About 300 new jobs will be created in a new hall opened in the Triangle Industrial Park in Žatec in the autumn of 2028 by the Korean company Kiswire, which manufactures steel tyre cords. It will be the company´s second hall to make steel wire and cords in the Industrial Park, as the capacity of the first, which has been in operation in the Park since 2017, was no longer sufficient. This former military airport hosts a number of investors, for example Solar Turbines EAME s.r.o., which specialises in turbine repair and revision, Gestamp Louny s.r.o., and Hitachi Automotive Systems Czech s.r.o., manufacturing components for the automotive industry. In 2014, the Korean Nexen Company announced its plans to place a huge investment project – a car tyre manufacturing plant – in the Czech Republic, specifically in the Triangle Industrial Park, on an area of approximately 70 ha. It was inaugurated in 2019. Today it is one of the world´s most up-to-date tyre factories marked primarily for its high productivity and quality of production due to the advanced automation of the production processes, quality control, and distribution. Although in 2020 the COVID-19 pandemic temporarily paralysed the company´s operation, the South Korean tyre manufacturer Nexen Tire Europe soon returned to normal and in June 2020 renewed full production. Other investors coming to the Ústí nad Labem Region are the British

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Pravčická brána Rocks

firm Regenersis, which repairs electronic devices, and the Japanese manufacturer of rubber parts, Fukoku. Regenersis will rent 3 000 sq. m of surface area in the CTPark Teplice, where a high-tech Repair Centre is being built. CTPark Teplice consists of three industrial halls. The total utility area of all the buildings taken together is 35 400 sq. m. The space is suitable for warehousing, logistics, light manufacturing and assembly. In October 2016, the American company, SSI Technologies, world leader in the manufacture of ultrasound sensors for the automotive industry, opened its new manufacturing plant in the Region. This is the company’s first manufacturing plant to be located in Europe. The firm chose the Ústí Region and the locality of Přestanov for its activities because of its close proximity to the frontier with Germany and connection to the main transport routes and the airport. Other industrial parks are to be found in Kadaň, Chomutov, Rumburk, and Klášterec nad Ohří. In 2018, BENTELER opened a new plant in Klášterec nad Ohří. The company´s fifth manufacturing plant in the Czech Republic started operation at the end of 2017 and was ceremonially opened in 2018. The plant in Klášterec is concerned with the hot forming of steel parts, platinum cutting, welding and laser cutting for its key customers Volvo, BMW, ŠKODA Auto, and Daimler. In Klášterec, BENTELER employs more than 300 people. CzechInvest Agency assisted BENTELER with the choice of the locality and in negotiations with the local authorities and in consultations on possible financial support. For its investment project worth CZK 2.5 billion, BENTELER will be able to draw investment incentives to the amount of CZK 480 million. Another foreign investor, the Japanese HILEX Corporation, came to the Region in 2017. The Corporation, manufacturing parts for transport vehicles, building and industrial machines, as well as household appliances, founded the company HI-LEX Czech, s.r.o. This company will manufacture door systems for cars.

EDUCATION Ústí nad Labem is also an important centre of tertiary education, led by Jan Evangelista Purkyně University (UJEP). One of the

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undeniable assets of the University is that it is a classic type of university, with both traditional university faculties, such as the Faculties of Philosophy, Natural Science, Pedagogics, and Socio-Economics, and non-traditional, but very much needed faculties, such as the Faculty of the Environment, Faculty of Production Technologies and Management, Faculty of Arts and Design, and the Institute of Healthcare Studies. Hundreds of foreign students come to Ústí nad Labem each year to study at J. E. Purkyně University. Students come from various countries, but most of them, on a long-term basis, come from the Russian Federation and Turkey. Another higher learning institution at which university education can be obtained in the Region is the College of Applied Psychology, Ltd., in Terezín. The Region also hosts detached workplaces of other public universities. For example, branches of the Transport Faculty and the Faculty of Nuclear and Physical Engineering of the Czech Technical University are located in Děčín, and branches of the Faculty of Chemical Technology of the Institute of Chemical Technology and the Faculty of Mining and Geology of the Mining University are located in Most.

Photo: © CzechTourism archives, Author: Zdeněk Patzelt; UPVISION

USEFUL CONTACTS Ústí nad Labem Regional Authority – www.kr-ustecky.cz North Bohemian Association of Communities – www.seso.cz Regional Development Agency of the Ústí nad Labem Region – www.rra.cz Czech North – www.usteckonadlani.cz

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

www.nanologix.eu The company NANOLOGIX is engaged in processing of polymeric materials especially in more component but also one component applications realized by the technology of injection molding of thermoplastic and elastomeric materials. The manufacturing process, which the company disposes of, also includes the technology of pleating filter materials based on micro-glass fibers, cellulose fibers or nanofibres deposited on various carriers and containing various kinds of incorporated particles.

Half-mask RESPIRA The half-mask RESPIRA respirator is a completely new generation of products that has been developed to take into account reliable functionality and the high comfort of the user. Reliable tightness of the facial piece is ensured both by its design and by a very flexible material, which is sufficiently resistant to aging (extended life of the half-mask) and chemical and biological agents and thus completely meets the strictest requirements for medical applications.

Filters Filters of half-mask are equipped with different filtering materials that are recommended for individual types of contaminated environment for protection in P2 and P3 efficiency (highest level of protection the capture of more than 99,99 % micro particles (liquid aerosol mist, gaseous aerosol fume) and biological particles (micro organisms bacteria, viruses, etc.)

Certificates Half-mask Respira compact with filter against particles Respira nanoperfection FM P2 R D according to EN 1827+A1 Filter against particles Respira nano-perfection P2 R according to EN 143 Half-mask Respira compact with filter against particles Respira perfection FM P3 R D according to EN 1827+A1 Filter against particles Respira perfection P3 R according to EN 143

Another products Nanologix also offers other products based on functional nanoparticles that are well-arranged in the catalog available on the company’s website www.nanologix.eu

References Ministry of Interior of CR, Police, Army CR, Police - Vietnam Hanoi, Vivep CZ (CR), ART-G Ltd. (Bangkok), Revital Agro PLC. (CR), HQH Systém (CR), Alawour Medical Company (Saudi Arabia), Customs Administration of the CR, Municipal Police CR, Václav Havel Airport Prague CR, Pacifica Trends, LLC (USA), Innovative Catalytic Systems Limited (Hong Kong), Viet Safety Technology Equipment CO., LTD (Qatar), Promex s.r.o. (EU)

František Bauer, Executive Head Český Jiřetín 140 | 436 01 Litvínov | Czech Republic (EU) | info@nanologix.eu | office2@nanologix.eu

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LIBEREC REGION The Liberec Region, situated at the northern tip of the Czech Republic and bounded by a 20-km-long stretch of frontier with Germany and a 130-km stretch with Poland, has easy access to the large industrial and administrative centres, Prague and Dresden, Germany, with developing links to the main European transport lines of Berlin - Prague - Vienna (Multimodal Corridor IV) and Leipzig - Dresden - Wroclaw (Multimodal Corridor IIIA).

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(Krkonoše National Park), as well as five Protected Landscape Areas (Bohemian Highlands, Jizerské hory Mountains, Lužické hory Mountains, Bohemian Paradise, Kokořín), seven National Nature Reserves, eight National Natural Monuments, 35 Nature Reserves, and 56 Natural Monuments.

ECONOMIC POTENTIAL The diversity and natural character of the Liberec Region are characteristics influencing business activities. Great population density in the centres of industry, hilly terrain, and restrictive environmental limits do not allow for the development of new large-size areas. The driving force in the Region is the

Photo: © CzechTourism archives, Author:UPVI, Ladislav Renner

The large number of historical buildings and other sights, as well as cultural institutions, are witness to the Region’s rich cultural and historical tradition. Institutions of regional importance include a number of museums and galleries in different parts of the Region. With respect to the glassmaking and fashion jewellery production in the area, tourists are invited to visit glassmaking museums in Nový Bor, Kamenický Šenov, and Železný Brod, and the Museum of Glassmaking and Costume Jewellery in Jablonec nad Nisou. The Bohemian Paradise District Museum in Turnov houses its own collections, covering the areas of Geology, Mineralogy, and Goldsmithery and Jewellery, which are unique, not only on the national, but also the pan-European level. There are two spa resorts in the Region: Libverda and Kunratice. Besides cultural and historical sights, visitors can admire the natural beauties of the Region – its exceptional countryside and rock formations. From the natural science point of view, the Liberec Region is important for its great variety of natural ecosystems, a high concentration of protected areas and rare localities of great botanical and zoological importance. There is one National Park in the Region

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Liberec

automotive industry, both as regards the actual manufacture of separate parts such as brakes, undercarriage parts, seats or buffers, and the manufacture of moulds, tools and whole production lines. The most important firms include Adient Czech Republic (car seat covers), Magna Exteriors (buffer production), DENSO MANUFACTURING CZECH (production of air conditioning units), Fehrer Bohemia (manufacture of side parts and seats), Benteler ČR (manufacture of undercarriages and safety elements) and TRW Automotive Czech (manufacture of car brakes). From the historical point of view, the traditional sectors in the Region are glassmaking and the textile industry. Both sectors have undergone a period of slowdown. Nevertheless, two world-renowned glassmakers (PRECIOSA, LASVIT) and two textile machine manufacturers (ELMARCO and the Textile Machines Research Institute Liberec Statistical Data Population Gross wage Unemployment

31. 3. 2020

443 842

CZK 31 265 1.-3. Q. 2020 (approx. EUR 1 251) 30. 7. 2020

Source: Czech Statistical Office

4.05 %

– VÚTS) located there, continue their successful existence. The greatest concentration of business activities and foreign capital can be found in Liberec and its environs, especially in the sites of traditional industrial production. The development of various forms of collaboration between business firms and their link-ups with research and development facilities is of great importance for the strengthening of economic competitiveness. There are various professional associations operating in the Region, as well as clusters, as geographically close groups of linked-up enterprises, contractors, service providers and professionally related institutions, brought together by common and complementary interests. These include, for example, the CLUTEX “Technical Textiles” cluster, and the Czech Membrane Platform, o.s., based in Česká Lípa, associating experts and institutions focusing on the research, development, realisation and use of membrane operations in technological processes. Scientific and technical parks are centres where research and development projects can best be developed. The Textile Machinery Research and Development Institute (VÚTS, a.s.) in Liberec has opened an Innovation and Technological Centre and, in 2012, started the construction of a scientific and technical park in Dubá and a membrane innovation centre of the company, MemBrain s.r.o., at Stráž pod Ralskem. The most important projects realised in the Liberec Region include projects for the development of a new research and innovation infrastructure supported by EU funding (The Institute for Nanomaterials, Advanced Technology and Innovation, The Research, Development, and Tuition Centre for Advanced Technologies, and The Engineering Research Centre Liberec). Scientists of the Technical University Liberec devote much of their time to linking research with practice. For example, physicians in Liberec are the first in the world to test cutaneous covering based on nanofibres – the medical material Nanotardis for the treatment of wounds has been developed by researchers in Liberec. The research is unique in that nanotechnologies have not as yet been tested on patients anywhere else in the world. The University´s Faculty of

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USEFUL CONTACTS: Liberec Region – www.kraj-lbc.cz Liberec Regional Office – www.liberec.cz Liberec Regional Chamber of Commerce – www.khkliberec.cz Technická univerzita Liberec (Liberec Technical University) – www.tul.cz Textiles is working on the development of another nanofibre material intended for medical purposes. The material is designed to help patients who have undergone surgery of the intestines. Its effect is that it prevents the contents of the intestines from seeping through into the abdominal cavity after surgery. The danger is that such seepage may develop infection in the body and cause post-surgical complications. In 6-22 % of cases, this leads to the patient´s death. The special material has two layers. While the hydrophylic nanolayer adheres to the wound, covers it up and speeds up healing, the upper layer is hydrophobic and isolates the site operated on from the abdominal cavity environment. This also prevents adhesions. Liberec University is collaborating with the Biomedical Centre in Plzeň on this research project. For the time being, the covering is only being tested on animals. The first business incubator, Lipo.ink, opened in the Region at the turn of the years 2017 and 2018. Its objective is to support not only novice businessmen, but also well-established firms.

INVESTMENT There are eight industrial parks in the Liberec Region, with a total surface area of more than 450 hectares, according to the Centre for

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Regional Development of the Czech Republic. The parks are located in the vicinity of or directly on the territory of Liberec, Nový Bor, Hrádek nad Nisou, Turnov, Ralsko, and Stráž pod Ralskem. Most of them are used by investors. For example Park P3 Liberec, which is situated north of the Liberec Industrial Park, in close vicinity of D10 motorway running from Prague to Dresden. With the city centre, the Park is connected by public transport. The Park, whose construction started in 2008, now has seven buildings. The largest tenants of the Park are the companies Grupo Antolin Bohemia, Knorr-Bremse, NIKA Logistics, Pekm Kabeltechnik, and TI Automotive. Denso Manufacturing is the largest employer in the Liberec-South Industrial Park. Its largest customers are car manufacturers group Volkswagen, Ford, BMW, Suzuki and TPCA Kolín, as well as Mercedes-Benz and Lamborghini. In the fiscal year, which ended on 31 March 2019, the firm filled orders worth more than CZK 12 billion.

Photo: © CzechTourism archives, Author: Jan Strakoš

Jizerské hory Mountains

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

In 2019, Trumpf Liberec enlarged its plant in the South Industrial Park with the aim to increase the manufacture of pallet exchangers for laser technology. The project, called Palettenwechsler, was transferred to Liberec from the company´s German affiliation in Neukirch. The company has invested EUR 7.1 million in the production and administration hall. The firm, founded in Germany in 1923 as a mechanical workshop, has developed into a world leader in the manufacture of machine tools, lasers and electronic systems for industrial applications. It employs 13 400 people worldwide, with 125 of them in Liberec. Other two large companies – Ontex, an important manufacturer of hygienic products, and SFS intec., manufacturing connecting materials – have chosen Vesecko Industrial Park near Turnov. One of the largest investment projects mediated in the Region by CzechInvest Agency has settled in Hrádek nad Nisou Industrial Park: Drylock Technologies, specialising in the manufacture of disposable hygienic items.

EDUCATION A typical feature of the Liberec Region is the large number of secondary art schools of supraregional significance located here. These are mainly secondary schools of Applied Arts, specifically schools of Glassmaking and Costume Jewellery. Higher learning is represented by Liberec Technical University, which runs 110 study programmes with more than 200 branches of study. The study programmes have Bachelor’s, Master’s, and Doctoral degree accreditation. Most of them are attendance or combined courses; some programmes are accredited for tuition in the English language. For example, in 2014 the Medical Studies Institute enlarged its Master’s degree studies with the addition of Biomedical Engineering courses. The Faculty of Textile Engineering of the Technical University in Liberec (TUL) is the only one of its kind in Europe which offers the study of forward-looking specialisations such as textile marketing and designing. In spring 2020, a three-member team of students of the

Jizerské hory Mountains

Faculty of Economics of the Technical University launched an initiative programme called “Face Masks with Filter for All”. The mask consists of a disposable filter with a functional layer inserted into a fabric pocket. “In the first days of uncertainty at the outbreak of the pandemic it was an exceptional deed by Drylock Technologies in Hrádek nad Nisou to launch the production of these face masks. The nanomaterial for the face masks has been supplied by Elmarco in Liberec,” says professor David Lukáš of the Chemistry Department of the Faculty of Textile Engineering, Technical University in Liberec, who, together with professor Josef Šedlbauer, was the initiator of the manufacture of protective nanomaterials against coronavirus at TUL. The University scientists also helped with tuning the line for the manufacture of filters from melt-blown nonwoven textiles by OBROKOV Company.

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Kuks

HRADEC KRÁLOVÉ REGION

As regards the number and importance of natural assets, the Region is one of the richest in the Czech Republic. Many areas and localities are extremely valuable and there is a large number of protected areas. From the point of view of areas of natural beauty, the most valuable are the Krkonoše National Park and the Orlické hory Mountains, Broumov and Bohemian Paradise Protected Landscape Areas. The rich and varied natural and cultural wealth of the Hradec Králové Region, its attractive natural localities and the well-preserved environment are good prerequisites for the development of tourism. Especially attractive areas are those with a high natural potential, areas boasting a rich cultural heritage of historical sites, as well as several renowned spa resorts. To meet the requirements of the massive development of cyclotourism and its rising popularity in recent years, new cycle trails of regional and supraregional importance are being built and marked. Hiking trails, too, have a long tradition in most areas of the Hradec Králové Region. The Region also boasts several spa resorts, the most popular of which is Janské Lázně, known for the treatment of diseases and disorders of the nervous system, the motor system, and skin diseases. The spa town is also a well-known winter sport resort.

ECONOMIC POTENTIAL The Hradec Králové Region can be characterised as being an agricultural and industrial area with well-developed tourism. Industry is primarily concentrated in towns, while agricultural production

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thrives on the land bordering the Labe River. From the sectoral point of view, employment is high in branches such as car making, manufacture of electrical equipment, engineering, textile production, healthcare, and the rubber and plastics sector. The main export items are products of the automotive and engineering industries and electrotechnical components. Exports are dominated by motor vehicle components and cars, which account for more than one-quarter of total exports. More than 3 % of total regional exports is accounted for by rotating electrical machines and parts thereof, ferrous products, circuit switching and breaking devices, pumps, cisterns, textiles, and rubber products. Sectors with the highest sums spent on research and development in the Region include Information Technologies (software development) and architectonic and engineering activities (development and construction of

Photo: © CzechTourism archives, Author: Ladislav Renner, Petr Toman

The Hradec Králové Region is situated in North-East Bohemia. More than one-third of its boundary, a stretch of about 208 km, forms the Czech Republic’s state frontier with Poland. The Region consists of five districts – Hradec Králové, Jičín, Náchod, Rychnov nad Kněžnou, and Trutnov.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

components for the automotive and engineering industries, development and supply of technological wholes for the chemical industry, power engineering, coke production, and food processing), which together account for more than 30 % of the expenses. This is followed by the manufacture of components and accessories for motor vehicles and their engines (especially braking and windshield wiping systems), research and development in the area of natural and technical sciences (breeding, textile materials, and biotechnologies), manufacture of other special purpose machines (printing machines, mining and building machines, machinery for pharmaceutical and food processing plants, and power generating equipment), manufacture of rubber products, medical devices, and other items. There are several clusters operating in the Region. The IT cluster in Hradec Králové focuses on the use of new information and communication technologies in the development of products manufactured by the cluster members, distrib-

uted backups, automatic control of the development of information systems, information systems’ safety and the housing server. The Hradec Králové TECHNOLOGICAL CENTRE participates in the realisation of projects financed from EU funds, the aim of which is to raise the level of education and competitiveness in the Region and, in particular, to facilitate students’ entry into professional life. Within the framework of these projects, the Technological Centre cooperates with recognised research and educational institutions in the Czech Republic (Hradec Králové University, Masaryk University, the Association of Scientific and Technical Parks). One of the firms having their seats in the Hradec Králové Region is Elceram, the only firm in the Czech Republic specialising in the manufacture of ceramic printed circuit boards and sensors. There are at most five such specialised companies in Europe. The manufacture of ceramic printed circuit boards is historically linked with the local Research Institute of Electroceramics. The firm is building on the tradition of the Czech-Japanese capital investment project, which used the experiences of the Tesla Hradec Králové company. Besides the electrical engineering industry, it also supplies its products to engineering firms and the auto-

USEFUL CONTACTS: Regional Office of the Hradec Králové Region - www.kr-kralovehradecky.cz Hradec Králové Technological Centre - www.tchk.cz University of Hradec Králové - www.uhk.cz Regional Development Agency of the Hradec Králové Region - www.cep-rra.cz Regional Chamber of Commerce – North-East Bohemia - www.rhkhradec.cz Hradec Králové City Authority - www.hradeckralove.org Glacensis Euroregion - www.euro-glacensis.cz Jánské Lázně

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Various projects are realised in the Technological Centre. For example in 2020 the Czech company TRILAB was developing special shields there. Currently it is distributing a completely new model of protective shields, which greatly surpass shields printed on 3D printers in price, compactness, protection, lightness, and comfort of use. The shield, named masq, is made by vacuum pressing, can also be mass-produced. In comparison with typical Perspex shields and 3D alternatives the new shield protects its users from more sides, is comfortable to wear and can be adjusted to any shape of the face.

New model of protective shield from the TRILAB Company

motive sector. Ceramic printed circuit boards are used, for example, in ABS automobile units and ceramic components help to reinforce tank armour. The annual revenue of the firm with 80 employees is around CZK 75 million, 85 % of which is accounted for by exports to Germany, and also to Spain, the USA, the UK, India, China, and Malaysia.

Statistical Data Population Gross wage Unemployment Krkonoše

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31. 3. 2020

551 343

CZK 31 289 1.-3. Q. 2020 (approx. EUR 1 128) 30. 7. 2020

Source: Czech Statistical Office

3.02 %

Photo: TRILAB archives; © CzechTourism archives, Author: Jiří Jiroušek, Petr Mareš

INVESTMENT There is a number of industrial parks in the Region — for example in Kvasiny (Rychnov nad Kněžnou District) and Vrchlabí (Trutnov District). Kvasiny is located 20 km from the Polish border, near Škoda production plant. The regional capital, Hradec Králové, is just 40 km away, with good access to a skilled and available labour pool. The Park is located on Route 14 towards the Polish border at Náchod, with easy access to the E67 pan-European route. In 2015, ABB company opened a new manufacturing plant in the industrial park in Trutnov, which significantly increased the company’s production capacity and supported growth in the area of power network automation. The company also wants to strengthen its Engineering Centre which, among other issues, is concerned with the development of applications for intelligent networks and cybernetic safety. In 2019 Samsung opened a new contact centre in Hradec Králové, where all-round communication with clients has been entrusted to the Czech firm Conectart. The Centre disposes of a number of modern technologies

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

The Krkonoše - Tree Top Walk

and ample space, where the operators have Samsung´s entire product offer physically at hand. This enables them to proceed step by step in solving potential problems with customers. The newly opened Centre, whose reconstruction cost nearly CZK 5 million, employs 40 people. The Samsung Contact Centre in Hradec Králové, covering a surface area of 463 sq. m, is one of the first which, besides conventional channels, such as the phone, e-mail, and webchat, also provides support by Whats-App. The service is very popular with customers. Without any massive marketing support, agents record more than 400 interactions on it a month. In addition, the contact centre provides support through all the common channels (calling, chatting, e-mail) and with the customer´s consent it enables remote connection to nearly all mobile devices and TV.

EDUCATION The core programme of the Pharmaceutical Faculty of Charles University in Hradec Králové is the research and development of new drugs, drug forms, drug delivery systems, Biomedicine (Centre for the Study of Drugs and Other Biologically Active Substances from the Perspective of the Prevention and Treatment of Important Lifestyle Diseases, Centre for the Study of Toxic and Protective Effects of Drugs on the Cardiovascular System, Centre of Drug-Dietary Supplements’ Interactions and Nutrigenetics), Clinical Pharmaceutics and Pharmacoepidemiology. The Faculty carries out contract research and development for firms and research organisations, e.g. of new drugs and drug forms. It has applied for several patents in collaboration with firms and research organisations. In its research activities, Hradec Králové Medical Faculty collaborates with the Faculty of Informatics and Management (e.g. ICT application in industry/clever networks in power engineering/ multi-agent systems) and the relatively young Faculty of Natural Sciences (e.g. Applied Mathematical Physics, Sensors, Human Body Behaviour Scanning – cooperation with LINET, IKEM –, Organic and Analytical Chemistry). The Medical Faculty of Charles University in Hradec Králové pursues a wide range of research activities, from basic research to practical research, for example in the area of civilisation diseases affecting the cardiovascular and gastrointestinal systems. The Faculty’s research team comprises several hundred scientific workers and more than 250 doctoral students.

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Pardubice – Pernštýnské náměstí Square

PARDUBICE REGION

The Region is characterised by its diversity of natural conditions, population density, and industrial and agricultural production. Future development of the Pardubice Region will benefit from the Region’s advantageous location, which is good for transport links. There are 542 km of railway tracks in the Region, the most important railway hubs including the towns of Pardubice and Česká Třebová, which form a part of the international railway corridor, Berlin-Prague-Brno-Vienna. Pardubice Airport, which serves both military and civilian air traffic, is key to the regional air transport. In 2017, Pardubice Airport reversed the unfavourable trend of the falling number of passengers cleared, when it processed 88 490 passengers, 180 per cent more than the previous year. Besides the Russian travel

USEFUL CONTACTS Regional Authority of the Pardubice Region – www.pardubickykraj.cz University of Pardubice – www.upce.cz Regional Chamber of Commerce of the Pardubice Region – www.khkpce.cz City Authority of Pardubice – www.pardubice.eu Regional Development Agency for the Pardubice Region – www.rrapk.cz

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offices operating flights from Pardubice to St. Petersburg, Samara, Yekaterinburg, Ufa, and Kazan, the positive results are partly due to the continuously fully occupied line operated by Ryanair to London and to the Red Wings airline with its flights to Moscow. The Pardubice Region has many prerequisites for the development of the tourist trade. The Region comprises beautiful landscape of both flat and mountainous character, a favourable climate and many opportunities for swimming, water sports, walking tours, cycling, and winter sports. Attractive tourist locations include the northern and eastern parts of the Ústí nad Orlicí District – the foothills of the Orlické hory Mountains, Buková hora Ski Region, and Sněžník Dolní Morava Ski Resort. Agrotourism, especially with an emphasis on traditional

Photo: © CzechTourism archives, Author: Mark BBDO; Author: Tomáš Kubelka

The Pardubice Region is located in the eastern part of Bohemia, and, together with the regions of Hradec Králové and Liberec, forms the North-East Cohesion Region (NUTS 2). A part of the Region’s north-eastern border also forms the border between the Czech Republic and Poland. The land area of 4 519 sq. km (5.7 % of the area of the CR) makes the Pardubice Region the fifth smallest region in the country. The Pardubice Region consists of four districts – Chrudim, Pardubice, Svitavy, and Ústí nad Orlicí.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

horse breeding, is developing throughout the entire Region (in the foothill areas). Every year, many visitors come to see the national stud farm in Kladruby nad Labem. Besides regular tours, the stud farm also organises various events for horse lovers. Tourist highlights in the Svitavy District include Svojanov Castle and Litomyšl Château, which has been on the UNESCO World Cultural Heritage List since 1999. The Pardubice racetrack, where the Velká Pardubická Steeplechase takes place, is the Region’s most famous sporting venue. In addition, the Region is the leader in many other sports.

ECONOMIC POTENTIAL The Region’s economy mainly depends on general engineering and electronics. The following industries are also represented: chemical, textile, clothing, leather manufacturing, and food-processing. However, the chemical industry, which has the highest share in national production, is the most important. The Region also has a tradition in the area of electrotechnical and electronic industries, linked with the Tesla trademark, on which a number of other companies also build. These companies have benefited primarily from the existing research and development base and skilled labour. Industry in the Pardubice Region is broadly diversified. In addition to the IVECO bus manufacturers, the automotive sector also plays an important role. Other important employers include AVX Czech Republic in Lanškroun (electrical engineering), Iveco Czech Republic in Vysoké Mýto, Synthesia Pardubice (chemical industry), Saint-Gobain Adfords CZ in Litomyšl (glassmaking), Rieter CZ in Ústí nad Orlicí (manufacture of textile machines and a sub-supplier to the automotive industry), OEZ in Letohrad (electrical engineering), KIEKERT-CS Pardubice with its centre of operations in Přelouč (automotive industry), Panasonic Mobile & Automotive Systems Pardubice (manufacturer of mobile phones and audio-visual equipment), Automotive Safety Components International in Jevíčko (sub-supplier to the automotive industry), and REHAU, s.r.o., in Moravská Třebová (automotive and plastics industries). Enterprises with well-known names include Paramo in Pardubice, Eta in Hlinsko, and Korado in Česká Třebová. Among the innovative companies with a global range of operations, the best known are the biotech-

nological company Contipro, manufacturers of pursuit systems and radars (ERA a.s., RETIA, ELDIS Pardubice), and firms engaged in the area of explosives (Explosia, OZM Research). Start-ups with an ambition to set foot in world markets are usually firms engaged in the area of information technologies. In addition, there are hundreds of small and medium-sized enterprises and individual businessmen in the Region operating in production and services. Clusters play an important role in the development of modern technologies and in improving competitiveness. The Region comprises approximately 20 industrial zones. Businesses can make use of ‘brownfields’, i.e. space that has lost its original economic use. Brownfields tend to be large premises in bigger towns (most of them are available in Pardubice). The largest brownfields in the Region are usually former military areas.

INVESTMENT The Pardubice Region was ranked the best region among 468 rival localities in Eastern Europe in the European Cities and Regions of the Future 2014/2015 survey. This ranking was due especially to the number of important projects realised here recently, such as the campus and the overall development of Pardubice University, and the linking of Pardubice regional city to the D11 motorway by a fourlane trunk road, as well as its offer of industrial parks. For example, Pardubice City Industrial Park is situated on the western outskirts of

Trail in the Clouds

Pardubice, some 6 kilometres from the city centre. It lies in the cadastre of Staré Čivice village, between the I/2 highway leading to Kolín and Prague and the Prague - Pardubice railway line, which is a part of the Berlin - Prague - Vienna international high-speed rail corridor. The first large project in the Park was an investment by Panasonic Mobile & Automotive Systems Czech. The Park is home to Pardubice Scientific and Technological Park. A great advantage of Pardubice Industrial Park is its situation on the outskirts of the regional city, which provides a good social, cultural, and sporting background for its 90 000 inhabitants. There is a good supply of skilled labour, especially in the area of science and research. The Swiss company of Ronal CR is another car-making firm which has settled in Pardubice Industrial Park. It came to Pardubice in 2004. Its core business is the manufacture, research, development, and sale of components for cars, specifically aluminium wheels. Its exclusive clients are manufacturers of renowned car makes such as Audi, Ford, Chrysler, Opel, Porsche, Saab, Škoda, Volkswagen and many others. The construction of the production compound on a 10-hectare plot began in December 2004 and serial production started two years later, in 2006. Staré Čivice is the seat of Toseda, a successful firm, which participates in space projects. Since 2013 its focus has been primarily on the research, development, and production of special polymer and nanocomposite

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systems. The principal user of these materials is the space industry. The company cooperates mainly with ESA, but it has also built important partnerships with key industrial partners in the area of space activities, such as Airbus, ArianeGroup, MT Aerospace, and Thales Alenia Space. These links are of strategic importance for Toseda as regards its future development. The firm also cooperates with a number of domestic and foreign universities, academies, and research companies. Its common practice is granting short- and long-term practical training to students enrolled in engineering and doctoral-degree university courses. One of the companies with its manufacturing plant in Černá za Bory Industrial Park is FOXCONN CZ, s.r.o., Pardubice, which specialises in the manufacture of computer technology. In 2016, Foxconn Global Services Division (FGSD) announced the launch of a new business line – a new Mobile Repair Centre in Pardubice for the regions of Europe, the Middle East, and Africa. The FGSD investment creates up to 250 new jobs in Pardubice and expands the company’s competencies into a fresh, lucrative area of business: mobile phone full lifecycle management. Through its Foxconn 4Tech Division, Foxconn has started the real testing of artificial intelligence in production processes. Its objective is not only to save costs, but also to open up new working positions for Industry 4.0 experts. The Foxconn 4Tech Division is planning to integrate artificial intelligence elements in its factory in Pardubice. There, on the basis of specific processes, it is planning to develop solutions for the automation of manufacturing processes, advanced company software and primarily the Internet of Things (IoT), on which it has been working for a long time. In 2017, another new foreign investor arrived in Pardubice: the Japanese fi rm of Central Glass, which chose this locality for its subsidiary in order to be closer to its customers in the Czech Republic and in other European markets. The choice fell on Pardubice because of its easy accessibility, suitable location in the Semtín Zone Industrial Park, and the tradition of the chemical industry, which this regional centre can boast. This is quite a new investment project in the lithium batteries area, through which Central Glass is entering the Czech and the European markets. Synthesia company, too, welcomes this arrival. Central Glass concentrates on the production of electrolytes for electric car batteries. Another reason why the Japanese company chose Pardubice for the location of its factory is the potential possibility of collaboration with the local university and a secondary chemical school.

EDUCATION Pardubice University, the only university in the Region, is 69 years old. With regard to student numbers, with its 8 000 students, the University is ranked as a middle-sized university in the Czech Republic. The University consists of seven faculties: Faculty of Chemical Technology, Faculty of Economics and Administration, Jan Perner Transport

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Faculty, Faculty of Arts and Philosophy, Faculty of Restoration, Faculty of Health Studies, Faculty of Electrical Engineering and Informatics. Students can choose from different Bachelor’s, follow-up Master’s and Doctoral degree programmes in the following fields: – Natural and Technical Sciences focused on Chemistry, Chemical Technology, Biotechnology and Biochemistry, Electrical Engineering, Informatics, Transport and Communication Technologies, and Material Engineering; –Social Sciences focused on Economics and Administration, Philology, History, Philosophy, and Sociology; –Health Sciences, including inter-disciplinary programmes; –Arts in the field of historical preservation, art restoration, conservation techniques and technologies. The University offers more than 60 study programmes with almost 130 study specialisations. All are designed in accordance with the Bologna Declaration and modern trends in higher education. Most Bachelor’s study courses offer follow-up Master’s programmes. Full-time and part-time studies are available. Apart from teaching, the University of Pardubice is also renowned for its numerous scientific and research activities, which contribute to excellent national and international reputation. The numerous specialised departments and other organisations, institutions and associations which operate at the university all contribute to this fact. Statistical Data Population Gross wage Unemployment

31. 3. 2020

523 054

CZK 30 349 1.-3. Q. 2020 (approx. EUR 1 214) 30. 7. 2020

Source: Czech Statistical Office

2.71 %

Photo: © CzechTourism archives, Author: Mark BBDO

Litomyšl - Castle Garden

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VYSOČINA REGION

The Region is characterised by its rugged terrain, high altitude, and low population density. The Region is attractive because of its comparatively low levels of air pollution and relatively healthy forests. The Vysočina Region also offers many fine opportunities for summer and winter stays, as well as the possibility of visiting a number of valuable historical and cultural monuments. There are three UNESCO monuments in the Vysočina Region. They are the historical centre of Telč, the Pilgrimage Church of St. John of Nepomuk on Zelená hora near Žďár nad Sázavou, and the Jewish Quarter with Cemetery and Basilica of St. Procopius in Třebíč. Besides urban tourism, the future of tourism in the Region will undoubtedly rest on various forms of tranquil, environmentally-friendly stays. This is supported by a dense network of tourist trails (approx. 2 900 km), the development of bicycle routes, and the gradually emerging agrofarms providing accommodation.

ECONOMIC POTENTIAL The Region accounts for more than one-third of the total potato production in the Czech Republic. The Region also holds first position in the harvesting of fodder crops cultivated on arable land and in maize production (17 % of national output). With regard to livestock production, the Vysočina Region specialises in cattle and pig rearing. As concerns economic growth, the Region’s most important economic sector is industry. In the past few years, industrial production in the Region has been very dynamic and has favourably influenced the entire regional economy. Much credit for this is due to the intensive development of industrial parks along the D1 motorway (Jihlava, Humpolec, Velké Meziříčí), which was followed by massive direct foreign investment in industrial output in the Region. The most important industrial sectors in the Vysočina Region are metalworking, engineering, and the automotive industry, specifically the manufacture of car components. The leading industrial enter-

prise in the Vysočina Region is Bosch Diesel, which manufactures diesel fuel injection pumps for the automotive industry. It is the largest employer in the Region. Recently it started pilot projects for interlinked industrial solutions in areas such as real time monitoring, 3D printing, and data retrieval. Bosch operates all three levels of interconnection: sensors, software, and services. The company is striving for the transformation of business models, mobility and technologies focused on IoT and artificial intelligence. Another important engineering enterprise in the Region is Motorpal Jihlava, which has a similar production programme to Bosch Diesel. The largest clothing manufacturing enterprise in the Region is the traditional underwear manufacturing firm, PLEAS Havlíčkův Brod, owned by the international SCHIESSER GROUP AG, based in Switzerland. An important industrial employer in the Havlíčkův Brod District is Futaba Czech, the supplier of components for the automotive industry, which started production in the Havlíčkův Brod-Baštinov locality in 2005. The construction of this plant on a greenfield site was the first investment project of the Japanese concern in continental Europe. Another foreign investor to locate a plant in the Region, specifically in the Pelhřimov District, is Valeo Compressor Europe — an important employer in the Region — manufacturing compressors for car air-conditioning units. Its customers include leading global car manufacStatistical Data Population Gross wage Unemployment

Telč

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31. 3. 2020

509 817

CZK 31 181 1.-3. Q. 2020 (approx. EUR 1 245) 30. 7. 2020

Source: Czech Statistical Office

3.16 %

The Vysočina Region has an advantageous central location not only within the Czech Republic, but also in the whole of Europe. The D1 motorway, the E59 road, and the Vysočina railway corridor offer the opportunity to reach important European transport hubs and major cities quickly. The closest airport, Brno-Tuřany, can be reached by car from most of the towns in the Region in one to two hours, and Václav Havel Airport Prague can be reached in two hours. Vienna International Airport is 2.5 hours away. The territory of the Vysočina Region is administratively divided into five districts.

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

Vysočina – Stašov

Telč

turers (Renault, PSA Peugeot Citroën, Mercedes, Toyota, Volvo, Nissan and others). Engineering is represented in the Pelhřimov District by the traditional manufacturer of agricultural machinery, AGROSTROJ Pelhřimov. In recent years, the firm has significantly broadened its production range and increased its output. ŽĎAS company is a prominent industrial enterprise in the Žďár District. It is one of the most advanced Czech engineering firms. For more than 65 years, it has been a modern and reliable manufacturer of forming machines, rolled products’ processing machines, metallurgical products, and pressing tools. Its production halls are fitted with high-quality machines for heavy- and light-duty machining, assembly, and product testing. The firm supplies its products to nearly 50 countries worldwide. The Vysočina Region has the most vast timber reserves in the Czech Republic, with a well-developed woodworking industry. The most important en-

USEFUL CONTACTS: Vysočina Regional Office – www.kr-vysocina.cz Jihlava Municipal Council – www.jihlava.cz Regional Chamber of Commerce – www.hkjihlava.cz Vysočina Regional Development Agency – www.rrav.cz terprises in this area are Stora Enso, Kronospan, and Sapeli – the largest and historically the oldest door manufacturer in the Czech Republic. DDL – Dřevozpracující družstvo cooperative – is another large firm operating in the timber production and wood-processing sector, with a 60-year tradition in sawn wood and wood-based panel manufacture. The glass industry is a traditional manufacturing branch in the Region, represented by smaller export-oriented firms, such as CRYSTALITE BOHEMIA s.r.o. Another manufacturing firm is Bohemia Machine at Světlá nad Sázavou, the cradle of original Bohemian crystal cut glass. It is a recognised manufacturer and supplier of high-quality glassmaking machines, to which it has recently added the manufacture of luxury modern-style crystal products under the BOMMA trademark. Another interesting project undertaken by Nuvia in Třebíč is an order for the modernisation of four nuclear power stations in Ukraine. The project will be realised in conjunction with the company´s Ukrainian partners for the Ukrainian enterprise, NAEK Energoatom. The modernisation will involve the key safety systems of the power stations, including reactors, turbines, and back-up diesel generators. Nuvia obtained the order after winning

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Lipnice nad Sázavou – Castle

INVESTMENT The Region has several industrial zones. One of these, Jihlava Industrial Park, is situated in the northern part of the city of Jihlava, in the close vicinity of the D1 motorway, linking up with the city’s industrial agglomeration, in which important firms such as Bosch Diesel, Automotive Lighting, and Kronospan have their manufacturing facilities. Žďár nad Sázavou-Jamská Industrial Park lies on the south-eastern outskirts of the city, linked to important road and railway lines. The firms based there include Vamafil spol. s r.o. – technical yarns; Cooper s.r.o. – automotive industry; MteZ s.r.o. – model equipment; Unipres s.r.o. – printing, and Mibilbox s.r.o. – automotive industry. Bystřice nad Pernštejnem Industrial Park is situated on the south-western outskirts of the town of Bystřice nad Perštejnem (10 000 inhabitants), in close proximity to the railway station. The Pelhřimov District also has a number of industrial parks. Among them, the CTPark Invest in Humpolec has a strategic position beside the D1 motorway linking Prague and Brno. Another factory manufacturing car parts was opened in the Region at Bystřice nad Pernštejnem by Cooper-Standard. DEL, an engineering company based in Žďár nad Sázavou, which specialises in the manufacture of charging stations and has significantly increased its production capacity, is planning to start the construction of a modern assembly hall and a new development centre with technological laboratories. DEL is a co-founder of the National Industry 4.0 Centre and a partner of the Czech Institute of Informatics, Robotics and Cybernetics. Its clients include most of Europe´s car manufacturers. It also participates in the International Thermonuclear Experimental Reactor project in France. In 2019, ACO Industries opened a modern Logistics Centre in Přibyslav,

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Havlíčkův Brod District. The hall, with social facilities for employees, provides over 4 000 sq. m of warehousing area. The firm, engaged in the manufacture of drainage systems, has 700 employees. It exports its grates, inlets, troughs, tubes and many other items worldwide. One of its largest Czech clients is e.g. Pilsner Urquell.

EDUCATION Two universities (The College of Polytechnics Jihlava /VŠPJ/ and the West Moravia University in Třebíč) have their seats in the Vysočina Region. Some courses are offered in foreign languages (English or German). Exchange students from partner universities attending within the Erasmus+ programme can choose from courses taught in English. Currently, about 2 000 full-time and part-time students are enrolled in programmes there. Some detached workplaces of other universities also offer the attendance form of study for the Bachelor’s Degree, such as the Czech Agricultural University Prague – workplace Czech Agricultural Academy in Humpolec, Horse Breeding (three years) – and the University of Chemical Technology (Conservation, Restoration of Works of Art) in Světlá nad Sázavou.

an international tender as the tenderer best meeting the technical conditions. The company´s stability and, not lastly, the price were also important factors.

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TRADITION

AND PROGRESS AGADOS, spol. s r.o.,

the traditional Czech producer of trailers of total weight between 300 and 10 000 kg; some of which can achieve speeds of 130 km per hour.

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SOUTH MORAVIA REGION

The natural catchment hub of the whole of South Moravia is the Regional Capital of Brno, situated at the confluence of the Svratka and Svitava Rivers. The city with an important regional position, at the junction of motorways in the directions of Prague, Vienna, Bratislava, and Olomouc, is the centre of traditional international exhibitions and trade fairs, which underscore its status as a busy international commercial hub. Two sites in the Region’s territory are included in the UNESCO World Cultural Heritage List. The most significant is the Lednice-Valtice complex, as an example of an area of forests, meadows and lakes, splendidly complemented with romantic structures of churches and gazebos, and primarily the Lednice and Valtice Chateaux. The other unique phenomenon is the modernist architecture of Brno of the period between the two World Wars, represented by the singular Functionalist project of a family villa by the German architect Ludwig Mies van der Rohe, who designed this house commissioned by Greta and Fritz Tugendhat, in 1928. Important areas of the South Moravia Region also include two UNESCO-listed biosphere reserves, namely Lower Moravia and the White Carpathian Mountains. The eventful history of the South Moravia Region is documented by the local archaeological sites, chateaux, castle ruins, churches, and synagogues.

ECONOMIC POTENTIAL The South Moravia Region is noted for its great economic potential. Its created gross domestic product accounts for 10.9 % of the national gross domestic product. The dominant position in the Region known

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for its industrial tradition is held by the manufacturing industry. The prevailing sectors are engineering (KRÁLOVOPOLSKÁ, companies of groups ZKL, Zetor, ČKD Blansko a.s., ABB s.r.o.), the electrical engineering and electronic industries (Thermo Fisher Scientific, TESCAN Brno, Siemens, branch company Industrial Turbomachinery, Siemens Electric Machines). These sectors, together with the metalworking industry, account for 20 % of the private sector in the South Moravia Region. Brno is the centre of software firms, space and aviation oriented branches and other highly innovative sectors. Companies Statistical Data Population Gross wage Unemployment

31. 3. 2020

1 192 698

CZK 32 880 1.-3. Q. 2020 (approx. EUR 1 315) 30. 7. 2020

Source: Czech Statistical Office

4.20 %

South Moravia ranks among the regions with major economic potential. The created gross domestic product of the Region accounts for one-tenth of the Czech Republic’s gross domestic product, its area taking up 9 % of the CR territory. The Region’s territory is divided into seven districts (Blansko, BrnoCity, Brno-Country, Břeclav, Hodonín, Vyškov, and Znojmo).

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such as Kiwi.com, Y SOFT Corporation and Kentico have become generally known and have witnessed a sky-rocketing growth. In recent years the South Moravia Region has become an incubator of large investment groups, which greatly influence the economy of the Region and the entire Czech Republic. These include, for example, Jet Investment, which owns shares in engineering firms, PBS Industry Group, Hoeckle Poldi Group, Composite Group and Tedom Company, or DRFG, which have become household names in the Czech Republic. The centres of the engineering industry are Brno, Blansko, Kuřim, Boskovice, and Břeclav. The electrical engineering industry has a tradition of more than 100 years in the Region, and is now developing in new industrial agglomerations on the outskirts of Brno, Blansko, Vyškov, etc. The food industry is based mainly in the south and east of the Region, in Znojmo, Břeclav, and Mikulov, where large agrarian enterprises linked to the local farm production are situated, such as fruit and vegetable canning companies. The northern and eastern parts of the Region are well-known for firms processing meat and manufacturing meat products and other foods from grain. There are four large breweries in the Region (Brno-Starobrno, Černá Hora, Vyškov, and Znojmo-Hostan) and numerous wine producers (Znojmo, Valtice, Čejkovice, Velké Pavlovice). The chemical and pharmaceutical industries in the Region are concentrated mainly in Brno and on the lower reaches of the Morava River, e.g. in Hodonín. South Moravia is another region that is becoming a technological incubator, which has an excellent rail and road infrastructure and a university background. Another asset of the Region is that global partners have entered many local fi rms. One of these is Kordárna, leading European manufacturer of cord fabrics for the rubber industry and technical fabrics for transport conveyers. The company´s cord fabrics, accounting for approximately 75 % of its output, are exported to more than 15 countries in Europe, North and South America, and Asia. An important partner to South Moravia companies is JIC Innovation Agency. The agency supports, for example, Garage Angels, an informal group of angelic investors, which has a 25 percent share in Senzoor Czech, a tech-

nological leader in the area of smart sensors. Senzoor sensors operate in the framework of the LPWAN (low-power wide area) network, i.e. in an attractive and rapidly growing sector referred to as the Internet of Things (IoT). The Garage Angels group, which came into being in Brno at the beginning of 2019, associates mainly successful regional businessmen and investors. Its emergence was mainly due to the gap in the investment eco-system, where, despite a number of smart and capable start-up businessmen and a relatively sufficient supply of funds for investment in the later phases of the lives of firms, real business angels ready to supply the initial and the most needed risk capital is missing. In 2020, JIC supported several companies with interesting projects – for example Sportbalance with its medical device for improving shoulder surgeries, the firm Labdeers, which develops an apparatus for the analysis of plant seeds, PlasmaSolve and its user friendly MatSight computer software for material engineers developing nanocomposite materials and the firm Cactux with its special manipulator for computer tomography. Brno-Spielberk Office Centre

INVESTMENT The South Moravia Region has a number of interesting investment projects to its credit. Honeywell, concerned with aviation technologies, supplies its products to other branches of industry, Infosys, the company´s Shared Services Centre, provides its clients with IT services, and the Thermo Fisher Scientific firm develops and manufactures electron microscopes. The most important service centre of the South Moravia Region is undoubtedly the City of Brno. More than 70 % of its workforce employed in various service sectors, as well as its significant knowledge potential (the highest share of university graduates in the Czech Republic, availability of workforce with foreign language capabilities, etc.) rank the city among the most competitive locations not only within the Czech Republic, but also within the Central European region. The city owes this reputation to the strong inflow of foreign investments, such as IBM and Siemens, both having their software design centres here, and companies such as Honeywell (Global Design Center, automation and control solutions), Red Hat Czech (software development), FEI (electron microscopes), BMT (medical technology) with their research and development centres in Brno. Altogether, there are more than 20 development centres established by multinational companies in the Region. An important player in the service industries in Brno is the Brno Exhibitions (Veletrhy Brno; BVV) – the largest company specialised in fairs and exhibitions in Central Europe makes Brno an important centre of international trade. Major companies have established their shared services centres, customer support centres, and research centres there, such as: Vodafone, SolarWinds Czech, Lufthansa, PPG Industries, and Zebra Technologies. In 2020 Contera development company began to build a business park in the industrial zone in Hustopeče, Břeclav District, oriented on light industry production and logistics. The project links up with the local his-

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NETS FOR ALL USES AND PURPOSES THE LARGEST CZECH MANUFACTURER OF KNOT NETTING FOR ALL SPORTS: GATES AND PROTECTIVE 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 GROUNDS:

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

MANUFACTURER AND SUPPLIER OF NETS FOR INDUSTRY, CONSTRUCTION AND THE GARDEN:

container and railway wagon nets, safety rope ladders, intercepting nets for the prevention of people or objects falling off structures, plant growing nets, decoration nets, net aviaries, etc.

MANUFACTURER OF PROTECTIVE NETS FOR WIDE USES, INCLUDING CUSTOM-SIZED NETTING.

All orders are filled promptly with high quality guaranteed.

THE FIRM PARTICIPATES IN INTERNATIONAL COMPETITIONS OF THE HIGHEST LEVEL IN VOLLEYBALL, BEACH VOLLEYBALL, TENNIS AND ICE HOCKEY.

Its sports nets are made in compliance with international rules and standards. Its products for children´s playgrounds meet safety standards. Its intercepting nets meet the EN 1263-1 international safety standard.

THE FIRM EXPORTS 35 PERCENT OF ITS PRODUCTION TO MOST EUROPEAN COUNTRIES (GERMANY, AUSTRIA, SWITZERLAND, NORWAY, RUSSIA, ESTONIA, LITHUANIA, SLOVAKIA, SWEDEN, BELGIUM…).

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Traditional Czech manufacturer – 100 years of experience in textile production, more than 50 years in netting production, newly in the market for 25 years as a private family firm.

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Lednice-Valtice Area

torical tradition of industrial production and benefits not only from the vicinity of the D2 motorway, but also from its location in a lively town with a good quality of life. In 2019, Hustopeče placed third in a survey of the quality of life in the Czech Republic carried out by Deloitte.

EDUCATION The role of the South Moravian capital city is further strengthened by Brno’s important position in higher education – with 6 public and 7 private universities comprising 30 faculties, Brno is the second largest centre of higher education in the Czech Republic. Moreover, having more than 70 000 university students, Brno has the highest ratio of university students to the total number of residents. Example of learning institutions in Brno: Janáček Academy of Music and Performing Arts, Mendel University in Brno, University of Defence, Veterinary and Pharmaceutical University Brno, and Brno University of Technology (VUT). In 2019, Brno University of Technology (VUT) will mark 120 years of its existence. For years, this institution has been figuring high in the best world universities’ rankings, prepared each year by Quacquarelli Symonds Limited. The South Moravian region is turning into a central European biotech hub. The current initiative – a biotech

USEFUL CONTACTS: South Moravia Regional Development Agency – www.rrajm.cz Brno Regional Chamber of Commerce – www.ohkbrno.cz South Moravia Innovation Centre – www.jic.cz South Moravia Regional Office – www.kr-jihomoravsky.cz Veletrhy Brno, a.s. – www.bvv.cz Brno Business and Innovation Centre – www.bicbrno.cz Technology Park Brno – www.technologypark.cz Brno University of Technology – www.vutbr.cz innovation cluster – is based on the campus of Masaryk University (www.muni.cz) and will serve the fields of Medicine, Chemistry, and Biology. The University has integrated laboratories for biomedical and environmental technologies and a large research and teaching hospital. Brno is also the seat of the Centre of Scientific Excellence (CEITEC) in the area of Life Sciences, Advanced Materials, and Technologies. This is a joint venture of Brno’s six most important universities and institutions of higher learning, supported by the South Moravia Region and the City of Brno, specifically Masaryk University, Brno University of Technology, Mendel University in Brno, the Veterinary and Pharmaceutical University Brno, the Veterinary Medicine Research Institute and the Institute, of Physics of Materials, Czech Academy of Sciences. One of the projects where remarkable results have been achieved is its research programme, undertaken jointly with Sweden’s Karolinska Institutet, concerned with the development and formation of the vertebrate face differentiation. The results of this long-term collaboration have been published in the prestigious eLife Magazine. In another study, scientists unveiled the structure and activities of bee viruses. They were the first to describe the viruses down to the level of atoms and to monitor the changes taking place in the structure of viruses while infecting the cells. Another project is the International Clinical Research Centre (ICRC) of St. Anne’s University Hospital Brno, which represents a new generation research centre focused on cardiovascular and neurological diseases.

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ZLÍN REGION The Zlín Region, with its long industrial tradition, is linked with the name of Tomáš Baťa, a businessman who in the first half of the 20th century turned Zlín into a shoemaking empire. Still today, the Zlín Region is one of the most industrialised parts of the Czech Republic, at the same time boasting a healthy environment, a good prerequisite for the development of tourism. The Zlín Region is situated in the eastern part of the Czech Republic, stretching along the border with the Slovak Republic. Even though it is one of the Czech Republic’s three smallest regions (with a surface area of 3 964 sq. km), it is quite unique among other Czech regions with its charming diversity of landscape, folklore, historical and technical sights. No other tourist area can simultaneously offer visitors mountains, garden architecture, spas with healing mineral springs, vineyards, remnants of the Great Moravian Empire, numerous monuments and historically valuable buildings, and unique modern Functionalist architecture. Its three ethnographic entities – the fertile Haná, hospitable Slovácko, and distinctive Valašsko – add to the originality of the Region. The beautiful Podzámecká and Květná Gardens and the Archbishopric Chateau in Kroměříž are world renowned, being on the UNESCO List of World Cultural Heritage Sites. The statutory City of Zlín is the natural industrial, business, and cultural centre of the whole of South-East Moravia. As a Garden City set harmoniously in a natural environment, it is a unique example of Functionalist and 20th-century urban architecture, the heritage of Tomáš Baťa. The city is linked with the existence of film studios, whose importance was enhanced by the success of animated films produced here in the latter half of the 20th century. Each year, the city is the venue for the International Film Festival for Children and Youth and the Barum Czech Rally motoring competition. An important aspect of Zlín are its cultural and educational endeavours. The materialisation of these endeavours are the Cultural and University Centre, built between 2006 and 2011 to the design of Eva Jiřičná, and the 14|15 Bata Institute – newly reconstructed factory buildings, which were opened in 2013 as a new venue for the Regional Art Gallery, the Museum of SouthEast Moravia, and the Regional Library.

ECONOMIC POTENTIAL The Zlín Region has always been looked upon as an economically strong area with a high concentration of industrial enterprises. The emergence and development of a large part of the industrial manufacturing plants are linked with the name of Tomáš Baťa. In the past, the main manufacturing sector was the footwear industry, with other allied sectors, such as the rubber industry and engineering developing in parallel with it. The Region is also known for its aircraft industry and allied branches. These activities were traditionally primarily linked with Zlín, the centre of the Region, and its hinterland. In the course of time, other strong economic centres emerged in the Region, such as Vsetín, Uherské Hradiště, Kroměříž, Valašské Meziříčí, Rožnov pod Radhoštěm and Uherský Brod. The current industrial potential of the Region is based on the existence of the original key manufacturing enterprises and foreign investors in industry. The most important among these are suppliers for the automotive industry e.g. rubber manufacturing companies (producing mainly car tyres), plastics companies (producing plastics and composite parts of vehicles), machinery, industrial forging and chemical companies (producing specialised parts for the safety of passengers). Another important branch is the aircraft industry, represented by prominent Czech aircraft manufacturers and their suppliers, companies focused on electronics (R&D and production of semiconductors,

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photovoltaic systems, and intelligent control systems), precision machinery (vertical and horizontal machining centres, special tooling for machine production), electrical and mechanical engineering (generators, motors and their components), production of weapons, initiation systems for blasting operations, as well as furniture manufacture. In the past few years, intensive development has been witnessed by the ICT sector, mainly in the field of safety (development of anti-terrorist safety systems, electronic transaction technologies and road traffic technologies). The strong domain of the region are progressive design approaches that are applied in products, technologies and processes across a number of industries mentioned above. In this respect, a strong ecosystem has developed in the region. Companies that apply design-oriented approaches are associated in the Zlín Creative Cluster. The Zlín Region offers skilled and flexible labour at very reasonable wage costs. The economic activity rate is 58.4 % and GDP per capita (in PPS- purchasing power standards) in the Zlín Region reaches 76.7 % of the EU-28 average, with the Region holding 6th position among the 14 Czech Republic regions.

INVESTMENT The most important foreign investors in the Zlín Region (according to the number of employees) are the companies of Continental AG from Germany and ON Semiconductor from the USA. In addition, there are numerous successful foreign industrially-oriented investors from Germany, Japan, the USA, the Netherlands, Spain, the UK, France, Statistical Data Population Gross wage Unemployment

31. 3. 2020

581 862

1.-3. Q. 2020

CZK 30 139 (approx. EUR 1206)

30. 7. 2020

3.00 %

Source: Czech Statistical Office

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Baťa Canal

Canada and other countries. One also finds significant investments in the Zlín Region by local companies, mostly oriented towards R&D and innovation of their products. Potential investors are able to find suitable plots for their investment projects in a couple of industrial parks or in the database of mapped suitable brownfields in the Zlín Region. The most important development area is the Holešov Strategic Industrial Park, where the construction of infrastructure started in 2008. The chosen area to the south of the town of Holešov fulfils all the conditions for successful projects, positively influencing the future growth of the regional economy as well as that of the whole of the Czech Republic. With its 360 hectares, the Holešov Strategic Industrial Park is one of the largest prepared development areas in the Czech Republic. Investors can choose plots ranging from 0.5 to 100 hectares in size and may take advantage of perfect access to the Czech and European highway networks. There are a few public airports, including international airports, in close proximity to Holešov as well. The area has all the necessary technical infrastructure, with the backbone transport communications of the Industrial Park being connected with the regional transport network. The area is flat with good conditions for the establishment of basic structures. The competitive advantage of this locality is the industrial tradition of the Region and the Progress Technology Park situated in the heart of the area. This Technology

USEFUL CONTACTS: Zlín Region – www.kr-zlinsky.cz City of Zlín – www.zlin.eu Regional Chamber of Commerce of the Zlín Region – www.khkzlin.cz Technology Innovation Centre Ltd. – www.ticzlin.cz/en Tomáš Baťa University in Zlín – www.utb.cz Holešov Strategic Industrial Zone – www.zonaholesov.cz Park significantly broadens the possibilities for investors, mainly those innovation-oriented or start-up companies for which the purchase of a plot and the construction of premises could be a distinctive barrier to starting a new business. Such companies may find their new address as well as the required services in the Technology Park.

EDUCATION As the majority of the population in the Zlín Region is employed in industry, the proportion of qualified secondary educated people in the population in the Region reaches 70.5 %. The Region offers a network of technically-oriented secondary and vocational schools, collaborating with regional companies. The proportion of the population with tertiary (university) education is 15.4 %, with a slight increase annually. The important institution which significantly contributes to this number is the local Tomáš Baťa University in Zlín. With about 9 200 students, the University ranks among the medium-sized Czech universities. Tomáš Baťa University has six faculties – the Faculty of Technology, Faculty of Management and Economics, Faculty of Multimedia Communications, Faculty of Applied Informatics, Faculty of Humanities, and Faculty of Logistics and Crisis Management. The University is a member of a number of international organisations. In addition, it is one of the most prominent centres of research in the Czech Republic and, in many respects, also abroad. An excellent reputation for research by the University has mainly been acquired with outputs in the area of Polymer Engineering, Chemistry and Automation, and Technology Process Control. The University continues to strengthen its position in applied research with the development of new units where excellent research is concentrated (Centre of Polymer Systems and Centre for Security, Information, and Advanced Technologies – CEBIA TECH).

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Olomouc

OLOMOUC REGION

The Region is known for its attractive countryside, with a large number of historical sights. One of the most popular places is the Zoo at Svatý kopeček (Holy Hill), which is visited by about 400 000 people yearly. The ten most visited places and attractions in the Region include the Flora Olomouc Exhibition Grounds, the Aquapark and the National History and Geography Museum in Olomouc, Bouzov Castle, Olomouc Museum of Modern Art, Helfštýn Castle, Olomouc Archdiocesan Museum, Šternberk Castle, and the Hand-made Paper Mill and Paper Museum at Velké Losiny. The regional city of Olomouc is most visited by tourists, with the second most valuable historical city reserve in the country, comprising a vast compound of historical buildings and architectural monuments situated on the well-preserved grounds of the medieval city.

ECONOMIC POTENTIAL A traditionally strong position in the Region is held by agriculture and the related food industry, which accounts for more than thirty per cent of the total volume of the sector. In spite of this, the dominant role is played by general engineering, metalworking, and the manufacture of electrical and optical devices. Also important are the textile and glass industries and the production of building materials. Good conditions for industrial activities exist in what is called the local Business Triangle, formed by the cities of Olomouc, Prostějov, and Přerov and their environments. An advantage is their relative

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closeness – the distance between them being approx. 20 km. The Region’s other tradition is the processing of metals, which used to be mined there in the past. Over the years, metallurgy became a basis for the development of metalworking and engineering production. After 1989, most of the local manufacturing plants were taken over by foreign investors, who modernised them and incorporated them in their portfolios. The largest companies in this area are Miele technika s.r.o. (white goods), Edwards (pumps and vacuum systems), SSI Schäfer (logistic and warehousing systems) Honeywell Aerospace (aircraft engine parts) and MUBEA (suspension and lightening of vehicle bodies). Electrical engineering has become an especially rapidly growing industry in recent years. Other fast-growing sectors are optics and precision mechanics, which include both traditional and new firms.

The Olomouc Region stretches along the Morava River. The Region itself consists of five districts: Jeseník, Olomouc, Prostějov, Přerov, and Šumperk. The Region’s administrative centre is the city of Olomouc, situated 275 km from the capital, Prague. The Olomouc Region has a rich cultural tradition and is an important tourist centre with a large number of historical sites and unique natural features.

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The most important among these are HELLA AUTOTECHNIK (headlights), Siemens (electric motors and drives), Meopta (optical instruments), and EPCOS (magnetic parts). The food industry also holds an important position in the Region, where agricultural production plays a significant role in the economy. The largest companies located in the Region are SOUFFLET AGRO (cereal products), Nestlé Česko (sweets), OLMA (dairy produce), MJM Litovel (cereals), and ORRERO (cheeses). The textile and clothing industry, the Region’s traditional sector, maintains its position as an important manufacturer and supplier. Other traditional sectors are construction and building materials production based on the supply of local materials. Other large firms located in the Region include ŽPSV (concrete sleepers), Saint-Gobain Construction Products (insulating and building materials), Cement Hranice (cement and building mixtures), and TONDACH (roofing). Zdeněk Zapletal´s company, Laski, is one of the world´s leading manufacturers of municipal technology equipment. Another firm, based in Zábřeh, the innovative manufacturer of Sulko windows, has gained renown in prestigious markets in Germany and Switzerland. The Region is the seat of Farmak, a purely Czech chemical and pharmaceutical company concerned with the development, production and marketing of medical substances and chemical intermediates and specialties.

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INVESTMENT The Olomouc Region offers potential investors a number of industrial parks, as well as modern office space. Olomouc-Hněvotín Technological Park provides investors with 950 000 square metres (95 ha) of development surfaces, designed for the location of investment projects, mainly in the area of pure innovative technologies, the manufacturing industry and light production, strategic services, shared services, administration, warehousing, and storage surfaces. The Science and Technology Park of Palacký University in Olomouc has been renting offices and manufacturing spaces and providing consulting services since 2000, making it possible for its clients to use the instruments and know-how of Palacký University under advantageous conditions. The large industrial park in Hranice near Přerov, where LG Philips Display used to manufacture its conventional television screens, now houses a number of firms, such as Etimex, Henniges Automotive, Medi-Globe, DAS, and Rolled Alloys. There are several industrial parks in the Region open to investors and businessmen, among others, in the towns of Šumperk, Jeseník, Šternberk, and Zábřeh. An advantage of these localities is the possibility of having the space adjusted to

USEFUL CONTACTS: Olomouc Regional Office – www.kr-olomoucky.cz Olomouc land price maps and other information for businessmen, including information about industrial parks – www.olomoucko.cz Science and Technology Park, Palacký University, including information about the Business Incubator – www.vtpup.cz Czech Nanotechnology Cluster – www.nanoklastr.cz

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

the specific needs of investors. Šlechtitelů, one of the parks which is already serving its clients, is situated on the southern outskirts of Olomouc. In 2018, the P3 Olomouc Industrial Park welcomed a new renter, the Austrian furniture company of Möbelix, which opened a warehouse in the Park. Möbelix is another company to have opened a warehouse in the Park occupying a surface area of 2 100 sq. m, after the Dutch logistic company Raben Logistic, which has enlarged its warehousing facilities in Olomouc recently. This adds to the bright pattern of renters who are running their businesses in P3 Olomouc. Another retailer and e-commerce operator in the Park is Kaufl and, which further enlarged its storage capacity last October, in addition to Activa, V-podlahy, and Trost, which has a shop in the Park selling car accessories. Other logistic companies besides Raben to rent plots in the Park are PPL, which has a parcel shop there, and the global logistic giant, DHL, which uses a space there as its terminal. Last but not least, the company of Erreka Plast has a rented plot in P3 Park in Olomouc, and manufactures plastic lorry components directly within the Park. P3 Olomouc is popular with renters mainly thanks to its good connection to the city centre and the D35 motorway. There are good conditions for the development of services in the centre of the Region, where new strategic centres (BSS centres) are coming into being. The ABSL survey shows that Olomouc will play a key role in the development of the company service sector in the Czech Republic. This is mainly due to the strategic position of the city in the centre of Moravia, its excellent transport connections with important domestic and international business centres, the good availability of office space totalling 77 000 sq. m, and a highly skilled and educated workforce. There are more than 15 international company service centres in Olomouc, which employ some 5 000 people. This sector is one of the most important employers in the Olomouc Region. As the company service sector is showing dynamic growth on the national Statistical Data Population Gross wage Unemployment

31. 3. 2020

631 836

CZK 30 469 1.-3. Q. 2020 (approx. EUR 1 219) 30. 7. 2020

Source: Czech Statistical Office

3.68 %

scale, it is to be expected that similar expansion will also take place in and around Olomouc, both regarding the enlargement of the existing centres and the emergence of new ones. ABSL reports that many new investors are showing interest in the Region. A great potential for investors is based on the workforce recruited from among the graduates of Palacký University in Olomouc, which turns out some 2 000 young people each year. The number of these graduates, with good foreign language skills, is a very important factor for company service centres seeking new employees. It is estimated that in 2017 this sector will expand by about 16 % in the Olomouc Region. Investors will also appreciate the lower costs in the Region. For example, in comparison with Prague, they will be spending less, not only on rent and utilities, but also on wages and salaries. To help to raise competitiveness, support innovation and stimulate demand for the results of scientific and research work and their commercialisation, an institution – the Science and Technology Park – has been established at Palacký University in Olomouc (VTP UP). Part of the Park is the Technology Transfer Centre, whose task it is to promote the commercialisation of the University’s scientific research and to provide patent services. Another workplace is the Technological Centre with laboratories of the Applied Research Centre. There are several projects in the Olomouc Region whose task it is to support scientific research in the Region. One such example is BIOMEDREG – Biomedicine for Regional Development and Human Resources (the project is concerned with the biomedical research of tumours and infectious diseases). On the basis of the research results, the Centre develops new medications and outlines individual therapy for patients. (More at www. biomedreg.eu). One of the tasks of Haná Regional Centre for Biotechnological and Agricultural Research is to transfer advanced plant biotechnologies to enterprises in the Region. As a part of this vast project, new facilities destined for scientific research will be built on a surface area of more than 7 000 square metres. (More at www.cr-hana.eu). RCPTM – The Regional Advanced Technology and Materials Centre – supports the start-up of new firms using sophisticated technologies and applied physical, optical, and chemical research, with a special focus on nanotechnologies.

EDUCATION There are three universities in the Olomouc Region. Palacký University in Olomouc, with an enrolment of 22 000, has eight faculties: Theology, Philosophy, Law, Medicine and Dentistry, Education, Science, Physical Culture, and Health Science. The Medical Faculty is linked with Olomouc University Hospital, one of the ten largest hospitals in the Czech Republic. The remaining two universities are the Moravian University, with 700 students oriented towards Economy and Management, and the College of Logistics, with 900 students focusing on Transport and Logistics.

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MORAVIA-SILESIA REGION The Region’s border characteristics provide opportunities for efficient cooperation in the manufacturing sector, infrastructural development, cultural and educational activities, and especially in the area of tourism. For this purpose, four Euroregions are currently active in the Region – Praděd, Beskydy, Silesia, and Cieszyn Silesia.

Ostrava

The Region has an area of 5 427 sq. km and consists of six former districts (from the West: Bruntál, Opava, Nový Jičín, Ostrava-Town, Karviná, and FrýdekMístek). The Moravia-Silesia Region is the third most populous of the Czech Republic´s 14 regions. In addition, nearly 60 % of its inhabitants live in towns with a population of more than 20 000, which is quite exceptional in comparison with all the other regions. This concentration may be one of the necessities of its survival – in spite of great shifts in the labour market, more than one-third of the employed people work in industrial enterprises, many of which have closed down, but many others have come into being. The regional city of Ostrava is considered as the Region’s commercial and cultural centre. It has large shopping and exhibition centres, luxury hotels, pleasant cafés and theatres. The tourist trade also benefits from the extensive network of cycling tracks through the interesting surroundings. The Region’s traditional cultural centres are Ostrava, Opava, and the Těšín District, with the important Polish minority in Český Těšín. The internationally renowned Janáček Philharmonic Orchestra is based in Ostrava. The Region is characterised by its conditions for industrial tourism (Tatra Technical Museum in Kopřivnice, Museum of Wagon-Making in Studénka, Museum of Mining in Ostrava-Petřkovice, Dolní Vítkovice, National Cultural Heritage Site of Michal Coal Mine). The Region’s spa industry is based on utilising the curative effects of the iodine-bromine water in the Darkov Spa and Rehabilitation Centre. A new spa sanatorium with architecturally interesting buildings has been operating in Klimkovice since the beginning of the 1990s. Watersport fans enjoy boating down the Moravice and Odra Rivers, and those who prefer recreation on the water’s edge, visit the Žermanice and Těrlicko dams, or, less frequently, the dam in Slezská Harta. There are golf courses of various levels of difficulty in the Region, starting with courses featuring short holes, all the way to courses where championship tournaments are played. Whatever the course, you will always be playing in beautiful natural surroundings with the magical backdrops of the Beskydy Mountains or historical castles. The courses at Čeladná, Ostravice, Šilheřovice, Kravaře, and Ropice have won the favour of many local and foreign players.

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ECONOMIC POTENTIAL More than a half of the Region’s area is occupied by agricultural land, and another part of over 35 % is taken up by forests (especially in the mountainous areas of the Jeseníky and the Beskydy). Besides natural wonders, the Region has rich deposits of raw materials – mainly a crucial domestic deposit of hard coal – and deposits of natural gas, as well as other raw materials, such as limestone, granite, marble, slate, gypsum, sandy gravels, sands and brick clays. In the past few years, the heavy industry has been gradually replaced by branches of the manufacturing industry accompanied by a considerable growth of the services sector. The development of the free market environment has changed the structure of business beyond recognition. A large number of the restructured enterprises have been purchased by foreign investors, while domestic firms have found their opportunities in the area of information and innovation technologies, electronics and the automotive industry. In addition, there are many smaller and larger firms in the Region, which concern themselves with both traditional artisan production and top technologies with hi-tech products. This category includes firms operating in the automobile industry (Hyundai Motor Manufacturing Czech, Mobis Automotive Czech, Continental Automotive Czech Republic, BROSE CZ, Varroc Lighting Systems), the information technologies sector (Tieto Czech, CGI IT Czech Republic, K2 atmitec, OKIN BPS, Stora Enso Wood Products Ždírec), electrical engineering (ELCOM, OSRAM Česká republika, Siemens, Tymphany Acoustic Technology Europe) and the pharmaceutical industry (Mölnlycke Health Care, Teva Czech Industries, WALMARK). The number of scientific and research workplaces, too, is increasing, with a corresponding increase in the number of expert workers. There are many successful firms based in the Region. The ambition of the regional authorities

D o i n g B u s i n e s s i n t h e C ze c h Re pu bl ic V. Re gio n s

Vítkovice

and other institutions is to build a highly prestigious and modern engineering base in the Moravia-Silesia Region that will be prepared, as regards human resources, new technologies and innovations, for the creation of chains in the area of strategic projects for the engineering and power industries, transport and construction on the global scale. For example, the national engineering cluster (NKS) is concerned with collaboration in international partner networks and it also supports the preparation of joint international R & D projects in the framework of the CORNET, HORIZON 2020, and INTERREG V-A programmes. NSK members have been supplying parts for nuclear power stations for about 40 years. They have manufactured and installed components for the primary circuit, heat exchangers and other elements for the secondary circuit of VVER nuclear power stations. They are probably the only group in Europe which supplies its products for both Russian and French, and even Indian projects. The cluster is unique among engineering firms worldwide not only in this respect; its other specialty is the delivery of forgings for primary

USEFUL CONTACTS: Moravia-Silesia Regional Authority – www.kr-moravskoslezsky.cz Ostrava City Authority – www.ostrava.cz The Regional Council of the Moravia-Silesia Cohesion Region – www.rr-moravskoslezsko.cz Ostrava Science and Technology Park – www.vtpo.cz Chamber of Commerce of the Moravia-Silesia Region – www.khkmsk.cz collectors of VVER-1200 steam generators for Rosatom and rings for steam generator casings for the Indian firm Larsen & Turbo. A number of NSK members participated in the completion of the 3rd and 4th blocks of the Mochovce nuclear power station in Slovakia. The IT4Innovations national supercomputer centre affiliated to the Mining University, Ostrava, is a strategic research institution which, together with another two infrastructure projects, CESNET and CERIT-SC, form a single e-infrastructure unit in the Czech Republic named e-INFRA CZ. This institution provides the most up-to-date supercomputer technologies and services for both Czech and foreign research teams of the academic and private spheres. Currently IT4Innovations operates four supercomputers – Anselm with an output of 94 TFlop/s, installed in spring 2013, Salomon with an output of 2 PFlop/s, put into operation in summer 2015, Barbora with an output of 849 TFlo/s, put into operation in autumn 2019, and a specialised system for artificial intelligence calculations NVIDIA DGX-2 with an output of 130 TFlop/s (and for AI up to 2 PFlop/s), started in spring 2019. In the framework of the EuroHPC joint European project a completely new petascale computer system will be installed in the centre with an output of around 13.6 PFlop/s named EURO_IT41.´ The regional material and technological research centre is focused

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on the preparation of extra pure materials, special alloys, biomedical materials, the development of materials for high temperature applications and energetics, preparation of materials by advanced powder metallurgy technologies (magnetic materials, friction materials, composite materials etc.), preparation of nano crystalline materials on the basis of non-ferrous metals, their alloys and steels prepared by extreme plastic deformation, research of processes in the liquid phase taking place in reactors and having an influence on the utility properties of materials, physical and mathematical modelling of forming material processes including forging, and the application of new knowledge to the research and development of forming components for nuclear energy equipment. Material and technological issues are subjected to the study of the degradation processes of the materials concerned exposed to corrosion, high temperatures, voltage conditions and brittelling under the influence of hydrogen and their effect on the mechanism of degradation and safety during operation. In 2018, Porsche Engineering opened a new research and development centre in Ostrava. Summing up its operation in 2019 its Managing Director, Miloš Polášek, could proudly say that it had a successful year behind it. “With our projects, such as the development of new assistance systems based on big data analyses and machine learning, software for smart electric car charging and the development of platforms for e-mobility, we are supporting important changes in the automotive industry,” he said.

INVESTMENT The Region has a number of industrial parks. Two of the most successful are the industrial park in Karviná-Nové Pole and in Kopřivnice, which together host the greatest number of investors. The Nové Pole Industrial Park is easily accessible by urban and interurban transport from Karviná, Havířov, Český Těšín, Bohumín, Orlová, Petřvald and Rychvald. It covers an area of 45 hectares and offers jobs for some 2 500 people. The first to start production there was the Japa-

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nese company Shimano manufacturing cyclo-components, followed by Sweden´s Mölnlycke Health Care Klinipro making medical sets. Some of the Investors Operating within the Park: n Baumann Springs ( www.baumann-springs.com) – Swiss company manufacturing springs. The firm was founded in 1886. In Nové Pole Park since 2006.. n Dexon ( www.dexon.cz) – Czech manufacturer of sound systems founded in 1989. In Nové Pole since 2002. n Gates Hydraulics ( www.gateshydraulics.cz) – US manufacturer of hydraulic hoses, founded in 1911. In Nové Pole since 2005. n GS Caltex ( www.gscaltex.cz) – South Korean manufacturer of plastic granulate. In Nové Pole since 2012. Currently with 110 employees. n Lift Components ( www.lift-components.cz) – Czech lift manufacturer. n Mölnlycke Health Care Klinipro ( www.molnlycke.cz) – Swedish manufacturer of medical sets. In Nové Pole since 2002. Currently with 900 employees. n Robe lighting ( www.robekariera.cz) – Czech manufacturer of lighting equipment Company founded in 1994. In Nové Pole since 2018. n Sejong ( www.sjcz.cz) – South Korean

The Beskydy Mountains – Štramberk

World-famous producer of unique defence, firefighting and commercial vehicles

WWW.TATRATRUCKS.COM

Opava – Minority Monastery with the Church of the Holy Spirit

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Systems makes new starting battery platforms, which offer environmentally friendlier systems than conventional lead batteries, lower fuel consumption and consequently lower emissions. The firm also operates manufacturing plants in China and the United States.

EDUCATION There are four universities in the Moravia-Silesia Region (University of Mining – Technical University Ostrava, Ostrava University, Silesian University in Opava, and College of Social and Administrative Affairs in Havířov), which play an important role in the areas of science, research and innovation and which are directly linked to the industrial sphere. Besides the traditional subjects the universities´ curricula also comprise completely new specialisations reflecting the modern technological development in the Industry 4.0 area, for example Computer systems for 21st century industry, or Automobile electronic systems. Statistical Data Population Gross wage Unemployment

31. 3. 2020

1 198 534

CZK 30 840 1.-3. Q. 2020 (approx. EUR 1 234) 30. 7. 2020

Source: Czech Statistical Office

5.56 %

manufacturer of exhaust systems for Hyundai and Kiu. In Nové Pole since 2006. Currently with 106 employees. n Shimano (www.shimano-prace.cz) – Japanese manufacturer of bicycle parts. In Nové Pole since 2001. Currently with 430 employees. n Stow ( www.stow-group.com) – Belgian shelf manufacturer. In Nové Pole since 2018. Currently with 140 employees. The largest project, which was tied to the interest of a strategic investor operating in the automotive industry, was the preparation of a strategic industrial park at Nošovice. The surface area of the Park, limited by the zoning plan, is 260 ha. The Industrial Park was prepared for the investment project of the Hyundai motor company. The investors in the Industrial Park are Hyundai Motor Manufacturing Czech s.r.o., Logistics Park Nošovice a.s., Mobis Automotive Czech, HYSCO CZECH, s.r.o., Hyundai Dymos Czech, s.r.o., and Glovis Czech Republic s.r.o. Ostrava-Mošnov Strategic Industrial Park is another unique investment opportunity for investors. Its advantage is not only a strategic position in the vicinity of Ostrava International Airport, but also easy access to the trunk road and railway systems. The surface area of the Industrial Park is 200 ha. In 2015, The Czech government approved the award of a subsidy for the construction of the Nad Barborou Industrial Park. It is a brownfield in the location of a former coal mine between the towns of Havířov, Karviná, and Orlová. There are several firms in the Region, concerned with research and development. One of them is Varroc Lighting Systems. This global development Centre of Excellence is located in Nový Jičín and was opened in October 2016. It has special electronic laboratories with testing facilities, whereby the firm is responding to the growing need for electronic products in connection with the increase in car manufacture. In March 2017, A123 Systems, a manufacturer of advanced lithium-ion batteries, opened a new manufacturing hall in Ostrava. It is the company’s first manufacturing plant to be located in Europe. The plant, situated in the Ostrava-Hrabová Industrial Park, will be making more than 600 000 automobile batteries per year, intended for the European market. In future, the company is planning to employ some 150 people, mainly skilled technicians and engineers. A123

VI.

USEFUL ADDRESSES AND INFORMATION

n W e represent our members at international trade fairs n W e organise conferences, seminars and workshops

promoting export

Svaz průmyslu a dopravy České republiky

CONFEDERATION OF INDUSTRY OF THE CZECH REPUBLIC We unite the leading companies and industry associations in the Czech Republic. We advocate the common interests of our members. We influence the economic, social, and environmental policies in the Czech Republic. We improve business conditions. We promote international trade and investment.

Freyova 948/11, 190 05 Praha 9 Phone: +420 225 279 111 E-mail: spcr@spcr.cz More information about the Confederation of Industry and about professional associations can be found at: www.spcr.cz

WE ARE n T he largest and most influential independent organ-

isation of employers and entrepreneurs in the Czech Republic n A representative of the Czech Republic’s leading companies, representing a crucial part of the industry – especially the automotive, electronics, chemical, and mechanical engineering sectors, the power industry, transportation, ICT sectors and many others n A volunteer organisation, independent of the government, political parties, and trade unions n A respected social partner and a participant in the European social dialogue

WE REPRESENT n 1 1 000+ companies – our members employ more

than 1.3 million people n 3 3 industry federations and associations from key

areas of the Czech economy n O ver 150 significant individual member companies

OUR PRIORITIES n S upporting industry as the main pillar of the Czech

economy n S trengthening the significance of research, develop-

ment and innovation in industry n C ontinuing development in technical education and

expanding the technically skilled labour force n C reating a business friendly environment for entre-

preneurs and international investors n A dvancing international trade and exports n I mproving the transport infrastructure n F urthering the digitalisation of the economy and

e-Government n W riting and agreeing on a stable, enforceable and

predictable legislative framework

INTERNATIONAL TRADE PROMOTION

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CZECH NATIONAL BANK The Czech National Bank is the central bank of the Czech Republic and the supervisor of the Czech financial market. The primary objective of the CNB is to maintain price stability. Achieving and maintaining price stability, i.e. creating a low-inflation environment in the economy, is the central bank’s ongoing contribution to the creation of conditions for sustainable economic growth. Central bank independence is a prerequisite for effective monetary instruments conducive to price stability. In addition, the CNB fosters financial stability and sees to the sound operation of the financial system in the Czech Republic. To this end, the CNB sets macroprudential policy by identifying risks jeopardising the stability of the financial system and contributing to its resilience. Without prejudice to its primary objective, the CNB also supports the general economic policies of the government and the general economic policies in the European Union. In accordance with its primary objective, the CNB sets monetary policy. It also issues banknotes and coins and manages and oversees the circulation of currency, the payment system, and settlement between banks. It also performs supervision of the banking sector, the capital market, the insurance industry, pension funds, credit unions, electronic money institutions and bureaux de change. The CNB is also the supervisor of non-bank credit providers. In order to undertake its tasks, the CNB processes and generates statistical information. As a central bank, the CNB provides banking services to the state and the public sector. It maintains the accounts of persons and organisations connected to the state budget. By agreement with the Ministry of Finance pursuant to the budgetary rules, the CNB conducts transactions relating to government bond issues and financial market investments.

n W e organise international conferences attended by

Česká národní banka

heads of states and governments n We organise international business and trade missions n W e cooperate with partner confederations and business chambers worldwide n W e coordinate incoming business and trade missions

Na Příkopě 28, 115 03 Praha 1 Phone: +420 224 411 111 www.cnb.cz/en/public/contacts/ More information at: www.cnb.cz

D o i n g B u s i n e s s i n t h e C ze c h R e pu bl ic VI. Useful Addresses and Information

CZECH CHAMBER OF COMMERCE CONFEDERATION OF EMPLOYERS’ AND ENTREPRENEURS’ ASSOCIATIONS WHO WE ARE Independent public institution of entrepreneurial OF THE CZECH REPUBLIC self-governance

n L argest and most representative business association

in the Czech Republic including small, medium, and large companies, self-employed entrepreneurs, associations, unions, and craftsmen organisations n N etwork – regional (regional and district chambers) and professional (unions, associations, etc.) n Platform for 16 thousand members representing more than 60 % of GDP of the country and 66 % of employable population in the Czech Republic in non-compulsory membership scheme n M ember of European and international organisations

WHAT WE DO n S upport of International Trade  Organisation of business missions targeting particu-

lar territory or sector  Organisation of business missions accompanying state and government officials on their visits abroad  Organisation of business forums, seminars, round tables etc., targeting particular country or territory  Organisation of bilateral meetings between Czech entrepreneurs and foreign business delegations  Involvement in various European Commission’s programmes  Support to foreign companies in finding suitable business partners in the Czech Republic  Publishing foreign demands, offers or tenders on Chamber website  Czech Business Representation in Brussels (CEBRE) n C onsultancy & advisory services (subsidies, projects, export & foreign trade, legal issues, etc.) n C ZECHPoints (registers, documents, certificates, services, etc.) over 50 one-stop-shops throughout the country n P rofessional Education – national certification programmes (recognised occupation), skill competitions, n T hematic courses & seminars, etc. n O bligatory commenting point for new business legislation n L obbying at local, national, European & international level n I ssuing own monthly KOMORA.cz magazine and weekly electronic news distributed directly to members

Hospodářská komora České republiky / Czech Chamber of Commerce Na Florenci 2116/15, 110 00 Praha 1 Phone: +420 266 721 300 E-mail: foreigndpt@komora.cz

The Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic (Konfederace zaměstnavatelských a podnikatelských svazů ČR – KZPS ČR) is an open, independent, special-interest association. n i t unites eight representatives of employer unions in the fields of construction industry, textile industry, small and medium-sized businesses, production and consumer cooperatives, agriculture, mining and oil industry, wood processing industry, education, health care, culture, and social services; n i t represents 22 000 bodies with over 1 300 000 employees; n i t supports the promotion of specific interests of its members in the legislative field and in other areas; n i t formulates common business and employer interests of its members and promotes them in cooperation with relevant state authorities, other employers’ organisations and trade unions and especially in various forms by consulting the government; n i t is one of the social partners representing the side of entrepreneurs in the Council of Economic and Social Agreement (Tripartite). KZPS ČR’s members: n Association of Textile, Leather, and Clothing Industry n Union of Czech and Moravian Producer Cooperatives n S yndicate of Businesspeople and Tradespeople of the Czech Republic n A ssociation of Entrepreneurs in Building Industries in the Czech Republic n U nion of Employers’ Associations of the Czech Republic n Employers’ Association of Mining and Oil Industry n Agricultural Association of the Czech Republic n Union of Czech and Moravian Consumer Co-operatives

Konfederace zaměstnavatelských a podnikatelských svazů ČR Václavské náměstí 21, 110 00 Praha 1 Phone: +420 222 324 985 Fax: +420 224 109 374 E-mail: kzps@kzps.cz

More information at: www.kzps.cz (in Czech)

More information at: www.komora.cz

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CZECH CENTRES WHO WE ARE AND OUR AMBITIONS The Czech Centres is an agency established for the promotion of the Czech Republic internationally and managed by the Ministry of Foreign Affairs of the Czech Republic. Our organisation provides a global network throughout three continents and 24 cities and we are active members of EUNIC, the European Union National Institutes for Culture. Our primary aim is the development of enduring international cultural and economic links between the Czech Republic and other nations. We create and support partnerships for Czech industries and culture on a local and global level through both public and private bodies.

OUR WORK, YOUR OPPORTUNITIES We accomplish these aims by fostering cooperation between foreign cultural institutions, experts and individual artists with Czech entities through highly successful international events, projects, and schemes. These are successful because of our connections to the best Czech institutions of education, science, and culture and by providing access to research and innovation and identifying and exporting the most dynamic driving forces of science and creativity of the Czech Republic. We support the development of institutions, such as universities, start-ups and professional bodies, through mutual international cooperation to promote their success and in doing so, provide unique opportunities to anyone interested in working with and investing in the Czech Republic. In addition, our organisation provides practical skills and knowledge. We are renowned and trusted in our support for those teaching and using the Czech language, enrolling over 2 800 students in Czech language courses worldwide in last year. The Centres present the Czech Republic in cooperation with regional partners abroad. Having many professional partners, we act as a focal contact point for information sought by general public, media and others.

WHERE WE ARE Locations of our global network: Athens - Berlin - Bratislava - Brussels - Budapest - Bucharest – Jerusalem - Kiev - London - Madrid - Milan - Munich - Moscow - New York - Paris – Rome - Rotterdam - Sofia - Seoul - Stockholm - Tel Aviv - Tokyo - Warsaw - Vienna.

NATIONAL COMMITTEE OF INTERNATIONAL CHAMBER OF COMMERCE IN THE CR ICC is – and has been throughout its long existence – a steadfast rallying point for those who believe, like our founders, that strengthening commercial ties among nations is not only good for business but good for global living standards and good for peace. ICC was founded in 1919 in Paris. Today, ICC represents 6.5 million companies and associations in more than 130 countries and transmits their interests to high official representatives including the UN, EU, WTO, OECD and G20, where ICC has been granted the highest level consultative status. prestige Being an ICC member is a question of prestige. principles ICC creates rules and principles that are fully respected and used in everyday business and have become one of the most important pillars of international trade. partnership ICC provides a large portfolio of services fundamental for foreign trade, such as educational and advisory services, as well as creating opportunities for establishing partnership with foreign business partners. ICC Czech Republic was founded in 1999. The main aim of ICC Czech Republic is to assist Czech companies and other businesses to integrate into world events through this prestigious world organisation. Territorial workshops Main aim of these workshops is to support the efficiency of Czech economic diplomacy under the presence of Czech ambassadors to introduce trade and investment opportunities to Czech exporters, to help diversify Czech export to perspective markets and to help establish useful business contacts. In the period of 2019/2020, these workshops were focused on e.g.: Great Britain, Lithuania, France, Norway, Vietnam, Brazil, Argentina (Paraquay and Uruquay), Zambia, Denmark (Greenland and Faroe Islands), Spain, Switzerland and many others. Seminars, professional courses Our extensive range of educational programs is targeted at specific topics associated with conducting international trade. Lecturers include experts and professionals with longtime experience or managers working in the given field - Incoterms 2020, Bank guarantees and experience with URDG 758, Documentary Credits and Standbys – International Standard Banking Practice and Practices in USA, Terms of international sale contract in foreign trade.

Czech Centres - headquarters Václavské nám. 816/49, 110 00 Praha 1 Phone: +420 234 668 211 E-mail: info@czech.cz

More at: www.czechcentres.cz

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National Committee of International Chamber of Commerce in the CR Florentinum, Na Florenci 15, 110 00 Praha 1 Phone: +420 257 217 744 E-mail: icc@icc-cr.cz More information at: www.icc-cr.cz

D o i n g B u s i n e s s i n t h e C ze c h R e pu bl ic VI. Useful Addresses and Information

CENTRE FOR REGIONAL DEVELOPMENT OF THE CZECH REPUBLIC – ENTERPRISE EUROPE NETWORK Centre for Regional Development of the Czech Republic (the Centre) was founded by the Ministry for Regional Development of the Czech Republic and is the implementing agency for European funding programmes. The Centre hosts one of the offices of the Enterprise Europe Network (EEN), a largest international network (with more than 600 partners worldwide) set up and run by the European Commission with the purpose of supporting businesses. Its consortium based in Czechia consists of six partners in four cities – Praha, Brno, Plzeň and Ostrava. The mission of the EEN is to help especially small and medium-sized enterprises (SME) with entering the EU and foreign markets and doing business there. Its experts provide comprehensive advisory services to businesses with the aim of broadening the international cooperation of companies, raising the innovative potential of enterprises in the EU and helping SMEs become integrated more widely in the EU framework programmes. To foreign clients the Centre – EEN Praha office offers: information about Czechia and its business environment including legislation, about how to find Czech partners for cooperation, about how to start a business in Czechia, basic information on sources of funding and other information. Services of the Enterprise Europe Network are funded from the European Union’s COSME Programme (20142020) under the grant agreement No. 879523 and by the Ministry of Industry and Trade of the Czech Republic.

Centrum pro regionální rozvoj České republiky – Enterprise Europe Network U Nákladového nádraží 3144/4, 130 00 Praha 3 Phone: +420 225 855 312 E-mail: een@crr.cz

More information on the Centre for Regional Development of the Czech Republic at: www.crr.cz More information on the Enterprise Europe Network in the Czech Republic at: www.een.cz

CZECH TOURISM AUTHORITY – CZECHTOURISM The Czech Tourism Authority – CzechTourism is an allowance organisation of the Ministry for Regional Development and its goal is the successful presentation of the Czech Republic on the domestic and foreign markets. It uses its central office in the Czech Republic for that as well as its network of foreign offices both in other European countries, including Germany, the UK, and Spain and in non-European countries, such as China, Brazil, and the United States. The basic objective of the network of foreign CzechTourism representative agencies is to promote the Czech Republic in the respective markets, build brand awareness of destinations and stimulate the volume of arrivals of foreign visitors to the Czech Republic. CzechTourism Agency branches offer a wide range of promotional activities. Their basic tools include campaigns (on-line, print, and outdoor), press and excursion tours, road shows, participation in trade fairs, promotional events, organising presentations and workshops, collaboration with foreign and Czech entities and establishing and developing contacts with strategic partners. The main vision of the CzechTourism Agency is shaping a new perception of the Czech Republic. It is precisely a change in the perception of tourism by the residents themselves and increasing their brand loyalty to the “Czech Republic” in the context of domestic and incoming tourism that is one of the fundamental objectives of the Agency for the coming period. CzechTourism promotes the Czech Republic brand on the domestic and foreign market on several levels. It participates in dozens of domestic and foreign tourism fairs and publishes sets of publications, brochures, and maps in several languages attracting visitors to the Czech regions. An important element of promoting the Czech Republic abroad is to introduce tourism potential through press and excursion tours, i.e. trips to the Czech Republic designated for foreign journalists and tour operators. Another agenda is to support major domestic events of both a local and international character. The promotion of the Czech Republic in the field of congress and incentive tourism on the domestic and foreign markets is the mission of the Czech Convention Bureau, closely cooperating with the various regional offices, covering the work of the regions, thus contributing to maximising the utilisation of all the congress potential that the Czech Republic has to offer.

Czech Tourism Authority – CzechTourism Vinohradská 46, P. O. BOX 32, 120 41 Praha 2 Phone: +420 221 580 111 E-mail: info@czechtourism.cz More information at: https://czechtourism.com/

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CENTRAL AND OTHER KEY BODIES OF THE CZECH REPUBLIC

Karlovy Vary

Office of the President of the Czech Republic Kancelář prezidenta ČR www.hrad.cz Parliament of the Czech Republic Parlament České republiky n Chamber of Deputies

Poslanecká sněmovna ČR www.psp.cz n Senate of the Parliament

of the Czech Republic Senát Parlamentu ČR www.senat.cz Office of the Government of the Czech Republic Úřad vlády ČR www.vlada.cz

MINISTRIES Ministry of Foreign Affairs Ministerstvo zahraničních věcí www.mzv.cz Ministry of Industry and Trade Ministerstvo průmyslu a obchodu www.mpo.cz

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DIPLOMATIC MISSIONS OF INTERNATIONAL ORGANISATIONS Ministry of Agriculture Ministerstvo zemědělství www.mze.cz Ministry of Regional Development Ministerstvo pro místní rozvoj www.mmr.cz Ministry of the Interior Ministerstvo vnitra www.mvcr.cz Ministry of Justice Ministerstvo spravedlnosti www.justice.cz Ministry of Defence Ministerstvo obrany www.army.cz Ministry of the Environment Ministerstvo životního prostředí www.env.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 Finance Ministerstvo financí www.mfcr.cz

Ministry of Education, Youth, and Sport Ministerstvo školství, mládeže a tělovýchovy www.msmt.cz

Ministry of Transport Ministerstvo dopravy www.mdcr.cz

Ministry of Culture Ministerstvo kultury www.mkcr.cz

Representation of the European Commission in the Czech Republic E-mail: comm-rep-cz@ec.europa.eu www.evropska-unie.cz Organisation for Security and Co-operation in Europe Prague Office of the OSCE Secretariat E-mail: quest@osce.org www.osce.org United Nations Information Centre Prague E-mail: unicprg@osn.cz www.osn.cz European Parliament Information Office Prague E-mail: eppraha@europarl.europa.eu www.evropsky-parlament.cz Representation of the European Investment Bank E-mail: Prague@eib.org European GNSS Agency www.gsa.europa.eu/ E-mail: info@gsa.europa.eu International Organization for Migration www.iom.cz/ E-mail: prague@iom.int UNHCR National Office Czech Republic www.unhcr.org/cz/ E-mail: czepr@unhcr.org World Health Organization – Prague Office www.who.int E-mail: eurowhocz@who.int

SUPREME BODIES

D o i n g B u s i n e s s i n t h e C ze c h R e pu bl ic VI. Useful Addresses and Information

THE MOST IMPORTANT WEBSITES General information on the Czech Republic

www.czech.cz

Official site for the CR

BusinessInfo

www.businessinfo.cz

Official site for professionals searching for information, assistance, or business contacts in the CR

Doing Business in the Czech Republic

www.doingbusiness.cz

General information about business climate, structure, and development of the Czech economy

Portal of the Public Administration

www.vlada.cz

The electronic gateway for the public to administration and government services

ARES

wwwinfo.mfcr.cz/ares/ares.html

Access to Registers of Economic Subjects/Entities

Business Register

www.justice.cz

Public directory

Company Contact Information

Business Register

www.rzp.cz

Trade Licensing Register

European Databank

www.edb.cz

Telephone and companies directory

CRIF – Czech Credit Bureau

www.informaceofirmach.cz

Companies Directory

HBI

www.hbi.cz

Companies Directory

Legislation Iuridika

http://iuridica.eunet.cz

Directory of legal services and official bodies

Portal of Czech judiciary

www.justice.cz

Course of legal proceedings

Finance Czech National Bank

www.cnb.cz

Monetary, financial, and macroeconomic data

Prague Stock Exchange

www.pse.cz

Prague Stock Exchange data

RM-System

www.rmsystem.cz

RM-System Czech Stock Exchange

Czech Insurance Association

www.cap.cz

Directory of insurance companies operating in the CR

www.cs.mfcr.cz/spd_internet/

Directory of taxpayers registered under individual tax identification numbers (DIČ)

Chamber of Tax Advisers of the CR

www.kdpcr.cz

Database of tax advisers

www.czso.cz

Official statistical data and information covering different subjects

BVV – Brněnské veletrhy a výstavy/Trade Fairs Brno

www.bvv.cz

List of exhibitions in Brno and relevant information

Association of Fair and Exhibition Organisers of the CR

www.czechfairs.cz

Exhibition centres and companies organising trade fairs in the CR and abroad

Statistics Czech Statistical Office Fairs and Exhibitions

Miscellaneous The Industrial Property Office

www.upv.cz

Patents, trade marks, utility models, and industrial designs

The Czech Science Foundation

www.gacr.cz

Awards grants to the best projects of basic research in all branches of science

The Register of Advertising Agencies

www.registrra.cz/rra

Expert assistance in choosing and working with advertising and communication agencies in the CR

Česká pošta (the Czech Post)

www.ceskaposta.cz

Incl. postcodes of municipalities and its districts (PSC), philately etc.

Residence of Foreigners in the CR

www.domavcr.cz

Advice for living in the CR

CzechInvest

www.czechinvest.org

Business and Investment Development Agency

Association for Foreign Investment

www.afi.cz

Support for entry of foreign investors

Cadastre of Real Estate

www.cuzk.cz

Information system, contains data on real estate in the CR

Road toll in the CR

www.premid.cz

Information on toll and charges

Portal of the Regional Information Service

www.risy.cz

Information website on the regions

The Czech Association of Hotels and Restaurants

www.ahrcr.cz

Directory of hotels in the CR

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LIST OF ADVERTISERS 125

BANES, spol. s r.o.

BOHEMIACHLAD Praha s.r.o.

DELAUDA, s.r.o.

Doosan Škoda Power s.r.o.

EVPAS spol. s r.o.

Explosia a.s.

FENIX Trading, s. r. o.

53, 135

JAP FUTURE s.r.o.

51 2

Jihostroj a.s. KABELOVNA Děčín Podmokly, s.r.o. Kloboucká lesní s.r.o.

56, 57 132, 133

Kosmetika CAPRI spol. s r.o. Krajský úřad Plzeňského kraje Kv.Řezáč, s.r.o.

8 95 128

Merry Crystals s.r.o.

METAL WORKING CZ, s.r.o.

Nanologix Protect s.r.o.

109

NEWTE spol. s r. o.

Pontex, spol. s r.o.

PROMAN s.r.o.

121

RETOS VARNSDORF s.r.o. TATRA TRUCKS a.s. TopolWater, s.r.o. TOS VARNSDORF a.s. Works L & W group s.r.o. Zetor Engineering, s.r.o.

České Švýcarsko

AGADOS, spol. s r.o.

141 91 52, 151 18 58, 59

ŽIVÝ KRAJ - DESTINAČNÍ AGENTURA PRO KARLOVARSKÝ KRAJ, Z.S.

104, 105

The publisher is not responsible for the content of paid presentations

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