Canada 2020/2021 by PP AGENCY

CZECH REPUBLIC Your Trade Partner

Inzerce SM_205x205_BEZ.indd 1

2020/2021 Canada

17.10.2019 9:25

Production and service of hydraulic elements. Design and erection of hydraulic systems. Trading with hydraulic parts

As a specialist in hydraulic systems we provide individual technical solutions according to the final customer’s requests. We supply hydraulic parts and also complete hydrostatic circuits for mobile machines and for industrial equipments too. Our products are placed by hundreds of customers in 16 countries of 4 continents.

YOUR PARTNER

FOR HYDRAULICS HAE 8-110 Mobile power unit for lifting and lowering the loading platform of wagons for transport of automobiles. Available in two versions with electrical or combustion engine. It is equipped with the safety features for risk-free operation.

GLENTOR s.r.o. Dolnoměcholupská 1388/23 Praha 10 – Hostivař, 102 00

T: +420 271 090 111 E: glentor@glentor.cz

www.glentor.cz

Czech Republic – Your Trade Partner Compiled by the PP Agency s.r.o. in cooperation with

Ministry of Foreign Affairs of the Czech Republic

Ministry of Industry and Trade of the Czech Republic

Ministry of Regional Development of the Czech Republic

Confederation of Industry of the Czech Republic

Czech Chamber of Commerce

International Chamber of Commerce in the Czech Republic

Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic

CzechTrade – Czech Trade Promotion Agency

CzechInvest – Business and Investment Development Agency

CzechTourism – Czech Tourism Authority

Czech Centres

Centre for Regional Development of the Czech Republic – Enterprise Europe Network

Deadline: 9 December 2019 ® Teritoriální publikace Česká republika – Váš obchodní partner Published by the PP Agency s.r.o. Myslíkova 25, 110 00 Praha 1, Czech Republic E-mail: journal@ppagency.cz, www.ppagency.cz The editors are not responsible for the content of paid presentations

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 03

FOREWORD Dear Friends of the Czech Republic, Canada has stood by our nation since the creation of our modern statehood in 1918. During the dark times of World War II, Canada was the first great power to recognize the Czechoslovak government in exile on October 12, 1940. During the Cold War, the great country accepted countless Czech refugees. In response to the Soviet-led invasion into our country in 1968, in particular, Canada granted asylum to 12,000 Czechs and Slovaks. The fall of the Communist regime in 1989 marked a new beginning in Czech-Canadian relations. The cooperation between Canada and the Czech Republic has become remarkably intensive in all areas, including security and defense, business, education, science and research, culture, sports, and international advocacy of our shared values such as human rights. Canada is home to the second largest Czech compatriot community in the world. Czech-Canadians have played a key role in the creation of the special ties between our countries. The first wave of Czech immigration to Canada dates back to the last quarter of the 19th century. These early Czech-Canadians raised funds and fought for our independence in both World Wars. During the Cold War, Czech-Canadians formed one of the most influential centers of Czech exile. Over decades, they helped keep Czech democratic traditions and independent culture alive. The publishing house 68 Publishers of Mr. and Mrs. Škvorecký, for instance, saved the independent Czech literature of the Cold War era. Czech-Canadians played an important role in the development of our economic bond as well. Let me mention at least the following example. In 1920s, the First Czechoslovak Republic ranked among the top ten most advanced economies in the world. The Baťa Shoe Company was one of the symbols of our country’s economic success. Tomáš Baťa Jr., the son of the empire’s founder, moved the company’s global headquarters to Canada during World War II and kept running it from there during the Cold War. During the revolutionary days of 1989, he rushed to see freedom return to his homeland and take part in the effort to put our economy back on its feet. Today, our economy again marks significant success. For several years, the Czech Republic has ranked among the most stable and also among the fastest-growing economies in the European Union. Strongly believing in free trade, we were among the first countries of the European Union to ratify the Comprehensive Economic and Trade Agreement. We are convinced that CETA will continue to drive the economic growth on both sides of the Atlantic. Czech and Canadian economic structures are remarkably compatible, which further enhances the capacity for our cooperation. The following areas seem to show the most promise: ICT, including artificial intelligence and gaming; civil aviation and space technologies; the automotive industry; medicine and biotechnologies; agriculture and the food industry; the railway industry; mining; and manufacturing. The strong innovative potential of these fields is not a coincidence. The Czech Republic has placed a strong emphasis on innovation. The support of research cooperation between our countries will be an inherent part of our economic diplomacy in Canada. In 2019, the Czech Technology Agency issued a joint call for grant applications with its counterparts in Quebec and Alberta. We will continue to work with our Canadian partners to grow such opportunities for companies as well as research institutions to gain financial support for joint projects. Cooperation between our universities and initiatives such as the Working Holidays will have our attention as well. As part of our economic diplomacy, we will organize economic and research missions from the Czech Republic to Canada as well as in the opposite direction. Every year, we will also support a Czech presence at several trade shows in Canada. For detailed updates, I would like to invite you to visit www.mzv. cz/ottawa and/or follow me on Twitter and Facebook @Borek Lizec. I have been fortunate to rely on the support of my colleagues from our Embassy in Ottawa, Consulate General in Toronto, CzechTrade Calgary, and our seven Honorary Consuls throughout the country. We look forward to you letting us know how we can assist. Bořek Lizec Ambassador of the Czech Republic to Canada 04 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Photo: CzechTourism (Martin Rak), Cover photo: the firms’ archives (BERNDORF BÄDERBAU s.r.o.; GLENTOR s.r.o.; KABELOVNA Děčín Podmokly, s.r.o.; LASSELSBERGER, s.r.o.; LINDR.CZ s.r.o.; SKLÁRNY MORAVIA, akciová společnost ; TOS VARNSDORF a.s.; Works L & W group s.r.o.)

Prague – Hradčany

Contents FOREWORD

Foreword by Bořek Lizec, Ambassador of the Czech Republic to Canada Czech Exporters Useful Information

04 06 10

ECONOMICS

Close Relationship between the Czech Republic and Canada Czech Economy in 2018 Introducing Strategic Sectors of Czech Industry Czech Republic’s Top 10 Exports

12 17 19 20

BUSINESS IN THE CZECH REPUBLIC

“Shoemaker” Who Made Shoes for the Whole World 22 Business Companies in the Czech Republic 24 The Tax System of the Czech Republic 27

INSTITUTIONS PRESENT THEMSELVES

Confederation of Industry of the Czech Republic CzechInvest – Business and Investment Development Agency Centre for Regional Development of the CR Czech Trade Promotion Agency/CzechTrade CzechTourism – Czech Tourism Authority Czech Centres International Chamber of Commerce/ICC Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic Czech Chamber of Commerce

CONTACTS

KEY SECTORS IN THE CZECH REPUBLIC Czech Engineering – Tradition and Future Czech Food Industry – Hidden Potential Nanotechnologies Entering into Big Business

Medical Equipment Made by Czech Companies is Conquering the World The Czech Republic, Attractive Tourist Destination

30 36 40

Useful Contacts in the Czech Republic Useful Contacts in Canada The Most Important Websites

42 44

46 47 47 48 49 49 50 50 51

52 53 54

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 05

FOREWORD

Mariánské Lázně

Czech Exporters 11.05 Manufacture of beer Tradiční pivovar v Rakovníku, a.s. 07 23.13 Manufacture of hollow glass CRYSTALITE BOHEMIA a.s. 34, 35 23.13 Manufacture of hollow glass SKLÁRNY MORAVIA, akciová společnost 13 23.19 Manufacture and processing of other glass, including technical glassware SKLÁRNY MORAVIA, akciová společnost 13 23.31 Manufacture of ceramic tiles and flags LASSELSBERGER, s.r.o. 28, 29 23.43 Manufacture of ceramic insulators and insulating fittings STEATIT s.r.o. 31 23.44 Manufacture of other technical ceramic products STEATIT s.r.o. 31 23.49 Manufacture of other ceramic products STEATIT s.r.o. 31 24.50 Casting of metals TOS VARNSDORF a.s. 56 25.00 Manufacture of fabricated metal products, except machinery and equipment TRIMOS, s. r. o. 18 06 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

25.00 Manufacture of fabricated metal products, except machinery and equipment Works L & W group s.r.o. 21 25.50 Forging, pressing, stamping and roll-forming of metal; powder metallurgy LASSELSBERGER, s.r.o. 28, 29 25.60 Treatment and coating of metals; machining Works L & W group s.r.o. 21 25.60 Treatment and coating of metals; machining TRIMOS, s. r. o. 18 25.70 Manufacture of cutlery, tools and general hardware Czech Blades s.r.o. 45 25.70 Manufacture of cutlery, tools and general hardware TRIMOS, s. r. o. 18 25.71 Manufacture of cutlery Czech Blades s.r.o. 45 26.11 Manufacture of electronic components ACER VOLTAGE s.r.o. 26 27.32 Manufacture of other electronic and electric wires and cables KABELOVNA Děčín Podmokly, s.r.o. 15 27.33 Manufacture of wiring devices KABELOVNA Děčín Podmokly, s.r.o. 15

Photo: CzechTourism

Czech enterprises that present their products and services in this publication intend to expand their exports and seek trade partners in Canada. The firms are listed according to the branch codes - NACE.

Good beer from Rakovník

Traditional Brewery in Rakovník (Tradiční pivovar v Rakovníku, a.s.) • • • •

one of few independent industrial breweries in the Czech Republic; brews all its beers by the classic double mashing process, where the beer ferments in open vats and is let to stand in horizontal lagering tanks for 40-60 days; uses Czech top-quality raw materials, i.e. Czech malts, Saaz hops and water from its own deep wells; is the holder of a number of awards obtained in prestigious Czech and international competitions; is entitled to use the Czech Beer protected geographical indication. The Czech Beer PGI is a label guaranteeing consumers that the beer has the unique and specific properties of a product made in the particular geographical area from domestic raw materials, differentiating it from similar products manufactured in other regions, made from other raw materials or using a different production technology.

BAKALÁŘ PALE BEER

BAKALÁŘ DRY HOPPED LAGER

BAKALÁŘ

DARK BEER

SEMIDARK BEER

PREMIUM LAGER

ÁŘ BAKALÁŘ HONEY SPECIAL

ČERNOVAR LIGHT LAGER

ČERNOVAR DARK LAGER

BAKALÁŘ NON-ALCOHOLIC DRY HOPPED LAGER

PRAŽAČK Ž Č PRAŽAČKA PALE BEER

Contact: Tradiční pivovar v Rakovníku, a.s., Havlíčkova 69, 269 01 Rakovník, Czech Republic Telephone: +420 313 285 530, fax: +420 313 512 020 e-mail: export@pivobakalar.cz, www.pivobakalar.cz

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 07

FOREWORD

08 C z e c h R e p u b l i c â&#x20AC;&#x201C; Yo u r Tr a d e Pa r t n e r

Photo: CzechTourism, Ladislav Renner

Prague

28.10 Manufacture of general-purpose machinery GLENTOR s.r.o. 02 28.25 Manufacture of non-domestic cooling and ventilation equipment LINDR.CZ s.r.o. 37 28.40 Manufacture of metal forming machinery and machine tools TOS VARNSDORF a.s. 56 28.40 Manufacture of metal forming machinery and machine tools RETOS VARNSDORF s.r.o. 51 28.41 Manufacture of metal forming machinery TOS VARNSDORF a.s. 56 29.10 Manufacture of motor vehicles Ing. VÍT ŠKROBÁNEK CARGO design 08 29.32 Manufacture of other parts and accessories for motor vehicles Ing. VÍT ŠKROBÁNEK CARGO design 08 30.99 Manufacture of other transport equipment n.e.c. Ing. VÍT ŠKROBÁNEK CARGO design 08 33.12 Repair of machinery GLENTOR s.r.o. 02 33.20 Installation of industrial machinery and equipment LINDR.CZ s.r.o. 37 43.99 Other specialised construction activities n.e.c. BERNDORF BÄDERBAU s.r.o. 55 46.10 Wholesale on a fee or contract basis CRYSTALITE BOHEMIA a.s. 34, 35 46.90 Non-specialised wholesale trade LASSELSBERGER, s.r.o. 28, 29

46.90 Non-specialised wholesale trade Tradiční pivovar v Rakovníku, a.s. 07 46.90 Non-specialised wholesale trade GLENTOR s.r.o. 02 47.10 Retail sale in non-specialised stores CRYSTALITE BOHEMIA a.s. 34, 35 47.78 Other retail sale of new goods in specialised stores Tradiční pivovar v Rakovníku, a.s. 07 71.12 Engineering activities and related technical consultancy ACER VOLTAGE s.r.o. 26 71.12 Engineering activities and related technical consultancy TOSEDA s.r.o. 41 72.00 Scientific research and development TOSEDA s.r.o. 41 72.19 Other research and experimental development on natural sciences and engineering TOSEDA s.r.o. 41 72.19 Other research and experimental development on natural sciences and engineering Tomas Bata University in Zlín 23 85.42 Tertiary education Tomas Bata University in Zlín 23 86.90 Other human health activities Bohemia - lázně a. s. 43 95.20 Repair of personal and household goods ACER VOLTAGE s.r.o. 26 The editors are not responsible for the content of paid presentations

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 09

FOREWORD

Useful Information State Symbols of the Czech Republic Coat of Arms

National Flag

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

BASIC DATA

Prague

Population 10 652 812 (as of September 2019) Area 78 864 sq. km Capital city Praha (Prague) Parliamentary system Parliamentary democracy Language Czech Highest peak Sněžka (1603 m.a.s.l.) Time zone Central European Time GMT + 1, summer time GMT + 2 Currency Czech crown (Kč/CZK) = 100 hellers For the most recent exchange rates please see https://www.xe.com/currencyconverter Internet domain .cz The President of the Czech Republic is Miloš Zeman

MEMBERSHIP

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

UNESCO WORLD HERITAGE

The UNESCO World Cultural Heritage List comprises the following cities and sites: Prague, Český Krumlov, Kutná Hora, Litomyšl Castle, Telč, Lednice-Valtice area, Zelená Hora (Green Mountain – St. Jan of Nepomuk Church, Holašovice, Kroměříž (castle and gardens), Holy Trinity Column in Olomouc, Tugendhat Villa in Brno (architect Ludwig Mies van der Rohe), St. Procopius Basilica and the Jewish Quarter in Třebíč. In 2005, the Moravian-Slovakian Verbuňk recruitment dance was inscribed on the UNESCO Intangible Cultural Heritage List. In 2010 another entry on the List was the Shrovetide Carnival and Falconry and, in 2011, the Moravian-Slovakian Ride of the Kings. Czech puppetry was listed in 2016 and in November 2018 the textile printing technique called blueprint was also included. More information can be found at www.unesco-czech.cz.

NOTABLE PERSONS

Český Krumlov

Czechs are considered a very cultured nation, which has given the world a number of significant persons. The most important rulers and heads of state are Emperor Charles IV and the Presidents T.G. Masaryk and Václav Havel. World renowned personalities include the scientists Jaroslav Heyrovský (holder of the Nobel Prize for Chemistry), Otto Wichterle, Czech chemist who invented contact lenses, and Antonín Holý, who helped to create a drug used in the treatment of AIDS. Other world renowned persons are Tomáš Baťa, creator of the shoe empire between the two World Wars, and Madeleine Albright, former US Secretary of State. In the field of culture, great names are those of the composers Bedřich Smetana, Leoš Janáček, Antonín Other practical information concerning travel conditions to visit or reside in the Czech Republic are to be found at www.czech.cz

Photo: CzechTourism (COEX.cz, Ladislav Renner, Aleš Motejl), Map source: Roads and Motorways Headquarters

Mariánské Lázně – the Colonnade

BERLIN HAMBURG HANNOVER DORTMUND KASSEL

SZCZECIN ZIELONA GÓRA

BERLIN

LEIPZIG

POZNAŃ WARSZAWA ŁÓDŹ

Legnica ROTTERDAM KÖLN ERFURT

Görlitz

DRESDEN Jena

WROCŁAW Jelenia Góra

Gera Zwickau

Świdnica

CHEMNITZ

Wałbrzych

GDAŃSK ŁÓDŹ

Opole

Plauen

Tarnowskie Góry Kędzierzyn-K.

Zabrze Bytom Dąbrowa G. GLIWICE Ch. SOSNOWIEC KATOWICE Ruda Ś. Mysłowice Racibórz Rybnik Tychy Żory

BAMBERG

WARSZAWA RADOM

KRAKÓW

Bayreuth

Bielsko-Biała

FRANKFURT AM MAIN WÜRZBURG

Erlangen

LVOV (UA) RZESZÓW

BANSKÁ BYSTRICA POPRAD

Fürth

NÜRNBERG MANNHEIM HEILBRONN

Žilina MÜNCHEN INGOLSTADT

Regensburg

KOŠICE POPRAD

Trenčín

MÜNCHEN

KOŠICE ZVOLEN

Passau Trnava

Linz MÜNCHEN

St. Pölten

Wels

WIEN

Nitra

BANSKÁ BYSTRICA ZVOLEN

BRATISLAVA

SALZBURG

GRAZ SOPRON GRAZ

BUDAPEST GYŐR

TRIESTE

Dvořák, and Bohuslav Martinů, the writers Franz Kafka, Karel Čapek, Jaroslav Seifert (holder of the Nobel Prize), Jaroslav Hašek, Bohumil Hrabal, and Milan Kundera. Oscars have been awarded to film directors Miloš Forman (born in the Czech Republic), Jiří Menzel, and Jan Svěrák. Other famous people of culture are the painters František Kupka and Alfons Mucha and the photographer Jan Saudek. Sportsmen who have gained international fame are, for example, Emil Zátopek, a long-distance runner, best known for winning three gold medals at the 1952 Summer Olympics in Helsinki. He won gold in the 5 000- and 10 000-metre races, but his final medal came when he decided at the last minute to compete in the first marathon of his life. He was nicknamed the “Czech Locomotive”. Gymnast Věra Čáslavská won a total of 22 international titles between 1959 and 1968, including seven Olympic gold medals, four World titles and eleven European championships. Martina Navrátilová is a former Czechoslovak and later American professional tennis player and coach. In 2005, Tennis Magazine selected her as the greatest female tennis player for the years 1965 through to 2005. She is considered one of the best, if not the best, female tennis players of all time. Jaromír Jágr is the most successful European hockey player who has ever played in the NHL and is considered one of the greatest professional hockey players of all time. Petr Čech is considered one of the greatest and most respected football goalkeepers of his generation. Barbora Špotáková, track and field athlete, competes in javelin throw. She is a twice Olympic and World Champion. Petra Kvitová, a professional tennis player since 2006, has won 23 career single titles, which include two Grand Slam titles at the Wimbledon Championships in 2011 and 2014. Martina Sáblíková is a speed skater, specialising in long-distance races. She is an Olympic gold medal winner and a multiple European and World all-round champion. She became the first Czech to win two Olympic gold medals at one Winter Games in the 2010 Olympiad. Ester Ledecká is a snowboarder and Alpine skier. At the 2018 Winter Olympic Games in Pyeongchang, Ledecká won gold medals in the super-G in Alpine skiing and in the parallel giant slalom in snowboarding. She is the first person to win two gold medals at

the same Winter Olympics, using two different types of equipment (skis and snowboard) and the first woman to do so in single Winter Olympics.

PRACTICAL INFORMATION

Dialling code: +(420). More detailed information about telephone numbers can be found on the www.zlatestranky.cz website. Licences for operating mobile networks on the territory of the Czech Republic have been awarded to the following companies: 02 Czech Republic a.s., T-Mobile Czech Republic a.s., Vodafone Czech Republic a.s., and Air Telecom a.s. The most popular credit cards in the Czech Republic are Eurocard/Mastercard and Visa. Other practical information concerning travel conditions to visit or reside in the Czech Republic is to be found at www.czech.cz

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

ECONOMICS

Close Relationship between the Czech Republic and Canada Canada and the Czech Republic have long-standing and close relations between them. In 1948 and 1968 Canada sheltered Czechoslovak political refugees and offered steadfast support for dissidents throughout their Communist period. After 1989, personal and family ties between the two countries were renewed and strengthened. There are now more than 100 000 Canadians of full or partial Czech descent.

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

CZECH FIRMS IN CANADA

A number of Czech business firms of different sizes are successfully operating in the Canadian market. They include engineering enterprises, manufacturers of parts for motor vehicles, information and technological firms and companies focusing on cyber-safety. A great advantage of Czech enterprises is their ability to succeed in the innovative sectors. An example is the Exact Control System engineering company, which concerns itself with high-tech land surveying in mining and underground communication systems. Another successful Czech investment project is presented by Precision Record Pressing, a joint venture of the Czech firm GZ Media Loděnice and its Canadian partner Isotope Music manufacturing vinyl records. The Marlenka Company, in turn, found its way into the Walmart and Loblaws grocery chain stores with its honeycakes.

Photo: pixabay.com

Canada is represented in the Czech Republic by the Embassy of Canada in Prague. The Czech Republic is represented in Canada by an Embassy in Ottawa. As like-minded partners, Canada and the Czech Republic work well together bilaterally, regionally and multilaterally, including at NATO, the Organisation for Security and Co-operation in Europe (OSCE), and the UN. Canada and the Czech Republic share values related to security, free trade and the promotion of democracy and human rights. The promotion of these values is at the heart of Canadian activity in the Czech Republic. Canada and the Czech Republic also pursue cultural exchanges between artists, writers, and performers. The Canadian Studies centre at Brno‘s Masaryk University plays a coordination role for Canadian Studies programmes in the Central European region.

From 1990 to 2004, Canada‘s former Technical Assistance Programme in the Czech Republic worked to ease the transition of the Czech Republic from the centrally managed economic system to free market economy and to help the development of open and responsible government and governance. The projects addressed issues of good governance, private sector development, financial sector reform, and education.

the art of ﬁre

Úsobrno č. p. 79, 679 39 Úsobrno • CZECH REPUBLIC Phone: + 420 516 427 711 • Fax: + 420 516 427 700 • E-mail: info@sklomoravia.cz

ECONOMICS CONTRACTUAL BASIS BETWEEN THE TWO STATES

The following conractual documents are in force in the area of economic cooperation (date of entry into force: Agreement between the Czech Republic and Canada on cooperation in the peaceful use of nuclear energy (22 February 1995) Convention between the Czech Republic and Canada for the avoidance of double taxation and the prevention of fiscal evasion (28 May 2002) Agreement between the Czech Republic and Canada on the support and protection of investments (22 January 2012 Within the EU framework the Czech Republic is enjoying the advantages of the Comprehensive and Economic Trade Agreement (CETA), which is curently at the stage of its preliminary implementation/validity (21 September 2017). Source: www.businessinfo.cz, www.canadainternational.gc.ca

Main items of Czech exports to Canada in 2018 Commodity

Canadian companies operating in the Czech Republic include Magna International and KSR (car parts), Bombardier Transportation (light rail), Bell Helicopter (parts and maintenance-repair-overhaul), OMERS (gas transit), Macco Organiques Inc. (chemicals), Molson Coors (beverages), OpenText, CGI and Adastra (ICT), Fairfax (Insurance), and Apotex (pharmaceuticals).

TRADING BETWEEN THE CR AND CANADA

Canadian exports to the Czech Republic in 2017 totalled CAD 193.7 million, comprising mainly aircraft and parts thereof, machinery, electronics, and electrical machinery and equipment. In the same year, Canadian imports from the Czech Republic amounted to CAD 625.6 million, consisting mainly of machinery (e.g. turbines, road rollers, backhoes, and electric tools), electronics and electrical machinery and equipment, iron and steel products (mostly train rails). For more details about trade between Canada and the Czech Republic in 2014 â&#x20AC;&#x201C; 2018, see the table below.

PRODUCT TRADE AND INVESTMENT (2018)

Rails of iron or steel (HS 7302)

48.3

Ferroaloys (HS 7202)

33.7

Parts of motor vehicles (HS 8708)

24.6

Self-propelled bulldozers, angledozers, graders, levellers (HS 8429)

24.1

Automatic data-processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media (HS8471)

21.1

Other lifting, handling. loading or unloading machinery (lifts, escalators) (HS 8428)

20.2

Synthetic rubber (HS 4002)

19.6

Electrical apparatus for switching or protecting electrical circuits, or for making connections to or from electrical circuits (HS 8536)

19.3

Centrifuges, including centrifugal dryers; filtering or purifying machinery (HS 8421)

17.8

New pneumatic tyres made of rubber (HS 4011)

16.9

Main items of Czech imports from Canada in 2018 Commodity

Import (CAD million)

Helicopters (HS 8802)

88.3

Coal: briquettes, ovoids and similar solid fuels manufactured from coal (HS 2701)

26.9

Motor cars and other motor vehicles principally designed for the transport of persons (HS 8703)

13.5

Beauty or make-up preparations and preparations for the care of the skin (HS 3304)

12.3

Measuring or checking instruments, appliances and machines (HS 9031)

9.7

Telephone sets, including telephones for cellular networks or for other wireless networks (HS 8517)

9.5

Imports

Machines and mechanical appliances having individual functions, not specified elsewhere (HS 8479)

6.5

Canadian exports to country: $277 604 205 Canadian imports from country: $772 504 760

Bilateral Product trade Canada - Czech Republic Year

Exports

2014

$131 406 201

$498 523 248

Preparations used in the feeding of dogs and cats (HS 2309)

5.5

2015

$194 992 797

$583 220 979

2016

$173 573 761

$542 760 913

4.9

2017

$193 721 609

$625 809 643

Transmission shafts, incl. camshafts and crankshafts, and cranks, bearing housings and plain shaft bearings for machines (HS 8483)

2018

$277 604 205

$772 504 760

Molding boxes for metal foundry, mold bases, molding patterns, molds for metal

4.2

Source: Statistics Canada

14 C z e c h R e p u b l i c â&#x20AC;&#x201C; Yo u r Tr a d e Pa r t n e r

Photo: www.shutterstock.com

CANADIAN FIRMS IN THE CR

Export (CAD million)

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

ECONOMICS

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

16 C z e c h R e p u b l i c â&#x20AC;&#x201C; Yo u r Tr a d e Pa r t n e r

Czech Economy in 2018 In 2018, the Czech economy continued its course marked by a high rate of economic growth. This manifested itself by the growth of both the gross domestic product and gross value added in all quarters of the year. A factor strongly responsible for this was the growth of both gross fixed capital and final household spending. This course was accompanied by rising wages and pensions and a rapid fall in unemployment. GROSS DOMESTIC PRODUCT

The 2018 gross domestic product was 3.0 per cent higher in comparison with the year 2017, according to the preliminary estimate. All components contributed to its growth, in particular domestic demand, consumer expenses on investment goods, and investments. Growth was shown in all the four quarters of the year.

INDUSTRY

In 2018, industrial production increased by 3.0 per cent over the preceding year, with most sectors showing an increase year on year. The greatest credit for the year-on-year increase is taken by the manufacture of computers and electronic and optical devices (+13.7 per cent), followed by the manufacture of metal constructions and metalworking products (+4.1 per cent) and electrical equipment (+5.5 per cent). A year-on-year decline was shown in the production of leather and related products (-21 per cent) and the mining and extraction industry. Revenue from industrial activity was 3.5 per cent higher year on year.

FOREIGN TRADE

In foreign trade, in terms of the cross-border trade concept, the movement of goods across the national border in 2018 increased by 3.4 per cent and imports by 5.0 per cent in comparison with 2017, according to preliminary data. In terms of the national concept – change in the ownership of goods between domestic and foreign entities – exports rose by 3.5 per cent and imports by

4.6 per cent. In terms of the national concept, the balance of trade surplus amounted to CZK 132.7 billion, CZK 30.8 billion less than in 2017.

PRICES

The average inflation rate in 2018 measured by the Consumer Price Index was 2.1 per cent. This is 0.4 percentage points less than in 2017. In aggregate, the prices of goods rose by 1.2 per cent and the prices of services by 3.4 per cent. The highest average year-on-year price increase was shown by medical goods, restaurant catering and accommodation, and alcoholic beverages and tobacco.

WAGES

The average gross monthly wage for employees (full time equivalent) in 2018 was CZK 31 885. In year-on-year comparison this meant a CZK 2 389 increase (8.1 per cent). The real wage rose by 5.9 per cent (consumer prices in the period under review were up by 3.0 per cent). The highest absolute wage increase was shown by the information and communication sector (CZK 3 287) and the public administration sector (CZK 3 260). In terms of percentage the highest increase was shown by the education sector (10.7 per cent), healthcare (10.5 per cent), and public administration (9.9 per cent).

Ing. Jana Bondyová

Macroeconomic Indicators of the Czech Republic 2012

2013

2014

2015

2016

2017

2018

Gross Domestic Product (current prices)

CZK, billion

4 059.12

4 098.13

4 313.80

4 595.78

4 767.99

5 047.27

5328.74

Gross Domestic Product

%, real, y/y

-80

-0.5

2.7

5.3

2.5

4.4

%, y/y

-0.8

-0.1

4.3

3.4

6.5

7.4

8.2

7.5

6.2

5.2

3.8

3.1

6.1

2.9

2.2

%, y/y

3.3

1.4

0.4

0.3

0.7

2.5

2.1

%, average

3.5

1.4

0.4

0.3

0.6

2.4

157 167

162 302

175 017

157 880

162 716

182 236

202 629

-3.5

3.3

7.8

-9.8

3.1

10.9

141 515

144 320

154 233

141 366

143 041

163 374

184 902

-7

6.9

-8.4

1.2

14.2

12.4

Industrial Production Registered Unemployment

General Unemployment Rate According to Selective Labour Force Examination3) Inflation Rate Inflation (HICP)

Exports

USD mil.

Exports

%, y/y

Imports

USD mil. %, y/y USD mil.

15 652

17 983

20 784

16 514

19 675

18 862

17 728

CZK/EUR 6)

average

25.143

25.974

27.533

27.033

25.643

26.33

CZK/USD 6)

average

19.583

19.565

20.746

24.600

24.432

23.382

21.735

Balance of Trade

Source: Czech Statistical Office, Czech National Bank (ČNB); General note: y/y shows year-on-year change in the indicator; 1) Data after revision under the ESA 10 system (European system of accounts) year 2016 and 2017 preliminary data, year 2018 estimate; 2) Unemployment to total population ratio = number of eligible job seekers aged 15-64 years/population in per cent, situation at the end of the year; 3) LFSS = Labour Force Sample Survey; 4) HICP = Harmonised Index of Consumer Prices, inflation rate by EU method; 5) Foreign trade data expressed in USD are the sum of the different monthly values in CZK calculated by the average monthly exchange rate announced by the Czech National Bank; 6) Czech National Bank

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 17

ECONOMICS

www.trimos-sro.eu

TRIMOS, s.r.o. The company was founded in 1993 and has been in the Oil & Gas industry since 2006. More than 2 million STOP COLLARS and steel END RINGS for the plastic Centralisers in sizes 27/8“– 133/8“ have been supplied worldwide to the USA, the North Sea, the Middle East (Saudi Arabia, Abu Dhabi, Dubai), East Asia, etc.

This company is able to manufacture a large range of products in accordance with drawing documentation. Surface finish of products is implemented according to clients’ requirements. Many other engineering products manufactured in the past, such as steel rollers, rubberised rollers, sheet metal products, suitable for laser, plasma or water-jet cutting, can be seen at www.trimos-sro.eu The biodiesel production technology (FAME) may also be viewed on this website. It can be supplied in a “ready-to-use” condition.

TRIMOS, s. r. o. Czech Republic EUROPE TRIMOS, s. r. o. Company ID: 48364894, D&B D-U-N-S® Number 49-629-5416

03/12/2018

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

Contacts: Lenka Sîrghi - Executive Officer +420 773174147 Lenka@trimos-sro.cz Petr Melichar - Owner +420 777616882 trimos@volny.cz

TRIMOS, s. r. o. Company ID: 48364894

03/12/2018

Introducing Strategic Sectors of Czech Industry ENGINEERING INDUSTRY

The Czech Republic ranks among the four largest suppliers of information and communication technologies, with annual contracts in Europe exceeding CZK 100 billion.

ENERGY INDUSTRY

The Czech Republic is known for the production of both individual components and complete power plant units. The nuclear power plants in the Czech Republic are responsible for the production of more than one-third of all electricity in the country. By virtue of this, the Czech Republic is the largest exporter of electricity in Central Europe.

dustry ranges from blast furnaces to aluminium foundries. The Czech Republic can boast companies that function in a full metallurgical cycle. They supply products made of iron, steel and highly valued rolled products.

ICT

The electrical industry is the showcase of Czech industrial production. In this sector, the Czech Republic has above-average results compared to other European Union countries. The high-quality electrical industry is one of the key pillars of the Czech economy.

SPACE

Prague is the administrative centre of the Galileo satellite navigation system. This is a project which will mainly be used by drivers. The system is the largest project thus far implemented in the European Union. The Czech Republic’s participation in the project, which is to have 30 satellites in orbit, involves collaboration with the European Space Agency.

HEALTHCARE

TRANSPORT

The Czech Republic ranks among those countries worldwide which can boast of their own auto factories, as well as of the production of trains and trams. Throughout the world, one can hardly find a car that does not contain components manufactured in the Czech Republic.

AEROSPACE INDUSTRY

The Czech Republic is the third largest manufacturer of light and small sport aircraft worldwide. Czech aircraft companies supply even giants such as Boeing and Sikorsky.

NANOTECHNOLOGY

The Czech Republic is ranked among the absolute top in the world of nanotechnology. Czech anti-allergy bedding, textiles, medical equipment, paints, sprays and water-repellents with cleaning effects, and much more, are exported internationally.

Photo: www.shutterstock.com

RUBBER INDUSTRY

Czech plastic and rubber articles are renowned around the world. The rubber components of most cars in Europe have passed through Czech hands.

METALLURGY

The basis for heavy industry has always been metal production, which has a long tradition in the Czech Republic. Our heavy in-

Medicine and the medical industry in the Czech Republic are among the top global players. The high quality of the finished products is testified to by the export of medical beds, chairs and other instruments. One of the largest production lines in the world, manufacturing high-standard hospital beds, is located right here in the Czech Republic.

GLASS INDUSTRY

Original brand-name collections and special orders – that is the direction the Czech glass industry has taken. Due to its long tradition, the Czech glass industry and its products, such as chandeliers, large-scale and shaped glass, mirrors, glasses and vases, have been global leaders for years.

MINING INDUSTRY

Coal mining is still one of the basic conditions of power generation. The Czech Republic has a long tradition of mining and coal production. The complex geological conditions in our coal mines led Czech design engineers to develop specialised machinery and equipment for safely extracting the coal. Due to this, these machines are now operational in Latin America, Russia, Spain, Vietnam, Ukraine, and, increasingly often, in China. C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 19

ECONOMICS

Czech Republic’s Top 10 Exports The Czech Republic shipped USD 202.1 billion worth of goods around the globe in 2018. That dollar amount reflects a 16 % increase since 2014 and a 10.9 % uptick from 2017 to 2018.

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

CZECH REPUBLIC’S TOP 10 EXPORTS

The following export product groups represent the highest dollar value in Czech global shipments during 2018. Also shown is the percentage share each export category represents in terms of overall exports from the Czech Republic. At the more granular four-digit Harmonised Tariff System code level, Czechia’s most valuable export products are cars followed by automobile parts and accessories, computers, then mobile phones. 1. Vehicles: USD 41.1 billion (20.3 % of total exports) 2. Machinery including computers: USD 40.2 billion (19.9 %) 3. Electrical machinery, equipment: USD 36.4 billion (18 %) 4. Articles of iron or steel: USD 7.4 billion (3.7 %) 5. Plastics, plastic articles: USD 7.1 billion (3.5 %) 6. Furniture, bedding, lighting, signs, prefab buildings: USD 5.7 billion (2.8 %) 7. Iron, steel: USD 4.8 billion (2.4 %) 8. Optical, technical, medical apparatus: USD 4.2 billion (2.1 %) 9. Mineral fuels including oil: USD 4.1 billion (2 %) 10. Rubber, rubber articles: USD 4.1 billion (2 %) Czech Republic’s top 10 exports accounted for over three-quarters (76.6 %) of the overall value of its global shipments. Iron or steel and mineral fuels including oil were the fastest-growing among the top 10 export categories, both up 26.2 % from 2017 to 2018. In third place for improving Czech export sales was machinery including computers which rose 17.1 %. Source: www.worldstopexports.com

Photo: ŠKODA AUTO archives

Reported as of 7 September 2019, the Czech Republic exported USD 100.2 billion worth of goods during the first 6 months of 2019 down -2.6 % compared to the same period one year earlier. The Czech Republic is also called Czechia, its officially approved short name since 2 May 2016. Given Czechia’s strategic location in central Europe, it should come as no surprise that 89.1 % of Czech exports by value were delivered to fellow European countries. Smaller percentages were sold to customers in Asia (6 %), North America (2.6 %), and Africa (1.1 %). The Czech Republic’s population was 10.7 million people as of July 2018. Therefore, its total USD 202.1 billion in 2018 exports translates to roughly USD 19 000 for every resident in the central European country. In macroeconomic terms, Czechia’s total exported goods represent 51.1 % of its overall Gross Domestic Product for 2018 (USD 395.9 billion valued in Purchasing Power Parity US dollars). That 51.1 % for exports to overall GDP in PPP for 2018 compares to 63 % for 2014, seeming to indicate a relatively decreasing reliance on products sold on international markets for the Czech Republic’s total economic performance. And while this article focuses on exported goods, it is interesting to note that Czechia also provided USD 29.9 billion worth of exports-related services to global customers for an additional 7.6 % of

GDP in PPP. These metrics include a significant amount of re-exporting activity. Another key indicator of a country’s economic performance is its unemployment rate. Czechia’s unemployment rate was 2.6 % at May 2019 down from 2.9 % one year earlier, according to Trading Economics.

ASSEMBLY - EXPERTISE, QUALITY, SAFETY Works L & W group s.r.o. (Works Locksmith & Welding - WLW) is a successfully developing company based in Hradec Králové, Czech Republic, specialized in the delivery and assembly of whole plants, i.e. turnkey projects comprising disassembly, production, delivery and assembly of steel structures, piping, technological equipment, including all the required related activities. Projects are realized in the Czech Republic and abroad for energy sector and the food & beverage, pharmaceutical, chemical and petrochemical industries. The company has filled contracts in Hungary, France, Norway, the United Kingdom, the Faroe Islands and Spain, besides the Czech and Slovak Republics. The company was founded in 2011, after the collapse of one of the largest assembly firms in the Czech Republic, which had been in the market for more than 20 years. The firm´s complete disintegration confronted its employees with the dilemma: either to seek employment, as before, or to set up their own assembly company. Despite initial difficulties, the second option proved a good choice. The company began with three employees in a single office. Today, almost nine years later, occupies 2 000 sq. metres of production space and employs 60 people. The new headquarters with 8 500 sq. metres is currently under reconstruction, so you will find WLW at the new address in 2020.

“We do the work we enjoy, we have to think about it and the result is visible.” Marie Kuchařová, PDG Our clients 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 Pilsen; BE - FIB Belgium; GB - ASC Process Systems Ltd; Donaldson Filtration Solution; WLW also provides moving and packaging of large-volume equipment in the international field, technical-engineering services in terms of quality assurance, coordination activities in the execution of works. WLW ensures and checks necessary documentation as well as service repairs and works during shutdowns, e.g. for UNIPETROL - RPA. 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) (TIČR) 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 et 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 Works L&W group s.r.o. 500 04 Hradec Králové, Czech Republic Tel.: +420 498 522 111 E-mail: wlwgroup@wlwgroup.cz

www.wlwgroup.cz

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

BUSINESS

“Shoemaker” Who Made Shoes for the Whole World Tomáš Baťa (3 April 1876-12 July 1932) was a Czechoslovak businessman, known as the King of Shoes, builder of a world shoe empire, mayor of the city of Zlín (1923-1932), and a public figure. In 1894, Tomáš, together with his brother Antonín and sister Ann, founded in Zlín a shoe-making firm, called “Baťa”, which in time he turned into a vast complex combining production, trade, transport, services and finance, and became one of the largest businessmen of his time. He introduced original methods of production and business management into practice, initiated an employee motivation system and influenced a number of future economists. His methods were epoch-making for that time and are still being used as examples of top management. While building his factory compound, he also rebuilt the city of Zlín, materialising his pioneering visions. As its mayor, he pushed through the garden city concept with its original functionalist architecture; which spread to other places in Czechoslovakia, other European countries, and North America, where he built his factories. He created a multifaceted education system and motivated his employees to attend all-life education courses. For this purpose he started a technical school (Baťa´s School of Work for Young Men and Young Women). As mayor of Zlín, he initiated the introduction of experimental forms of public education and by founding a hospital in Zlín, he laid the foundations of modern health care in the city and the region. In 1919 Tomáš Baťa expanded his business beyond the limits of Czechoslovakia and since then Baťa´s shoes were sold and made in many countries the world over. In the 20th century the firm Baťa pursued its business activities across five continents, and it carries on its business in many countries to this day.

BAŤA´S WORLD – CANADA

Baťa (Bata) shoes had been exported to Canada from Zlín since the late 1920s and in the following decade people in Canada could buy them directly from the firm´s affiliations, which Baťa opened there. In 1939, the firm opened in Canada a factory making shoes and machines and a few years later it massively expanded its network of stores. Shoe manufacture continued in Canada until the end of the 20th century. In 1937, an affiliation, the Canadian Commercial Enterprise, was founded in Montreal. In the years 1938-1939 the company Bata Import and Export Comp. Ltd., Toronto was established; in 1940, another two companies – Falcon Shoe Comp. Ltd., Toronto, and Canadian Com22 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

mercial Enterprises Ltd., Toronto, were set up. In the years 1938 and 1939, Bata Shoe Comp. of Canada Ltd., the backbone of Bata´s Canadian business, was set up in Batawa. In July 1939, Tomáš Baťa Jr. obtained permission from the Canadian government to bring about 200 Czech workers to Canada to work in his new factory in Ontario. Baťa purchased land near the village of Frankford (Ontario), where a factory and an extensive settlement named “Batawa” (BATA + OttaWA) were built. In August 1939, machines for the new factory were brought to the Montreal port from Zlín, in September 1939 the production began. The number of workers in the factory increased significantly in the following years, from 700 in 1941 to 1 000 in1944. The development of Batawa continued in the next few years. In 1942, a theatre was built there, followed by the construction of a whole business district and a church. In 1943, the company Bata Limited was founded in Batawa In 1946, Bata´s retail network in Canada comprised 53 stores Between 1945 and 1948, Canadian Commercial Enteprises, Bata affiliations, were established, one of whose tasks was to negotiate cooperation agreements with Czechoslovak authorities in Prague 1962 – the following companies were registered and added to the list of existing Bata companies operating in Canada: l Bata Shoe Company of Canada Limited (Canada) l Quinte Footwear Limited (Ontario) l Tiga Trading Company Limited (Ontario) l C anadian Commercial Enterprises Limited (Canada) l Batawa Community Corporation Limited (Ontario) l Kent Shoes Limited (Ontario) l Bata Limited (Canada) l B ritcan Holdings Limited (Ontario) l M uscamo, Canada, Limited (Canada) l N oco Limited (Newfoundland) l N ew World Investments Limited (Canada) l S igmund Pumps (Canada) Limited (Canada) In 1979, the Bata Shoe Museum Foundation was established; the museum was opened to the public in 1995. In 1992, the following Bata enterprises were operating in Canada: l Bata Footwear, Batawa l Bata Engineering, Batawa l Sales Offices - Montreal, Winnipeg, Vancouver l Norimco Marketing, Markham l Tiga Trading, Markham l Bata Retail, Toronto At the beginning of the 1990s, 1 300 people worked in Batawa.

The Bata´s World internet portal has been created and is administered by workers of theTomáš Baťa University Information Centre and University Library in Zlín. Its aim is to inform the public comprehensively and briefly about the existence and activities of the firm Bata in ninety countries on five continents.

Sources: Wikipedia, www.tomasbata.org

Young, and, thus, progressive. Courageous in ideas as well as in acts. Student- and teacher-friendly. Respecting the tradition, as well as setting new trends. Enterprising as well as inspiring to run an enterprise. That’s what Tomas Bata University in Zlín is like.

Centre of Polymer Systems (CPS) – holder of the EU Commission prestigious HR Award Progressive polymer system processing (plastics processing, bioactive polymer systems, surface finishing of materials, rubber processing) Advanced polymer composite systems (Multifunctional nanomaterials, Systems with sensory properties, Composites with electric and magnetic properties, Biocomposite systems) Holder of important international patent “Device and method for producing UV radiation” (EP3168860A1)

Centre of security, information and advanced technologies (CEBIA-Tech) – Holder of the EU Commission prestigious HR Award Alternative energy sources (advanced waste processing technologies, bio fuels, holder of Rolex Award and Czech Head Award) Applied informatics (grid computing and application of artificial intelligence methods, intelligent production systems, intelligent buildings) Security technologies (embedded systems, development of small mobile data and telecommunication networks for fast-deployment units; development of a dangerous substances detection and analysis system with the use of THz frequencies; development of technical processes for the protection of electronic systems against interference by external and internal electromagnetic fields) Holder of an important international patent, “Method for biodiesel production from fats and oils” (EP2238224B1)

Footwear Research Centre (FRC) Accredited footwear testing laboratory according to ČSN EN ISO/IEC 17025:2018 Advanced materials and technologies (waterproof breathable materials), anti-bacterial, anti-odour, absorbent and drying materials) Footwear design and construction (innovative footwear design, intelligent and 3D design)

Earn your doctoral degree with Us! Are you thinking of studying for a PhD and you want to gain professional experience at the same time? If so, then apply for a doctoral programme carried out at TBU! Biomaterials and Biocomposites Nanotechnology and Advanced Materials Technology of Macromolecular Compounds Tools and Processes Food Technology

Engineering Informatics Automatic Control and Informatics Management and Economics Finance Multimedia and Design TOMAS BATA UNIVERSITY IN ZLÍN Zlín — Czech Republic

www.utb.cz phone: +420 576 038 021

cell phone: +420 733 614 288 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 23 e-mail: international-marketing@utb.cz

BUSINESS

Business Companies in the Czech Republic The theme of this article is the legislation applying to business companies in the Czech legal order. It will focus on the individual types of business companies in the Czech Republic, their definitions and basic characteristics. At the same time, the principal steps that must be taken for the establishment and incorporation of these business companies are mentioned. TYPES OF BUSINESS COMPANIES

The legislation concerning business companies in the Czech legal order is governed mainly by the following legal regulations: the Act on Business Corporations, the Civil Code, and the Act on Public Register of Legal Entities and Individuals. The Business Corporations Act determines the different types of business companies in the Czech Republic, namely the General Commercial Partnership and the Limited Partnership (known as personal companies), and the Limited Liability Company and the Joint Stock Company (known as capital companies). In the Czech legal order, we can also find the European Company and the European Economic Interest Grouping. The most widespread forms of business companies in the Czech Republic are the Limited Liability Company and the Joint Stock Company.

ESTABLISHING AND INCORPORATING BUSINESS COMPANIES

Business companies in the Czech Republic are established on the basis of a Memorandum of Association. A Memorandum of Association establishing a capital company (a Limited Liability Company and a Joint Stock Company) requires the form of a public deed, i.e. it must be written in the form of a notarial record. In establishing a Joint Stock Company, the adoption of the Articles of Association is required. Where the law permits the establishment of a company by a single founder, the company is established by a founder´s deed having the form of a public deed. A Czech business company is then incorporated by entry in the Companies Register (known as a constitutive entry), which is decided by the Regional Court relevant with regard to the company’s registered office. With a view to shortening the time of registration and entry of a business company in the Companies Register, and also to saving public finances in the judicial sector, it is possible for a Notary to carry out a direct entry in the Companies Register under certain situations, namely in cases where the data being entered are based on the notarial record and when the Notary has been provided with all the documents required to be submitted 24 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

for entry in the Register or for filing in the Collection of Deeds, and the person authorised to propose the entry makes such a request. However, entry in the Companies Register may be performed only by the Notary who has written the basic notarial record or all the existing basic notarial records and notarial records on certifications. This possibility is only optional, i.e. the founders can always apply to the relevant Registration Court. The Companies Register is one of the public registers governed by the Act on Public Registers of Legal Entities and Individuals. It is a system of public administration maintained in electronic form, and conducted by the Registration Court (i.e. the competent Regional Court) relevant for the company’s registered office. Open to the public, it contains the most important information about business companies (the company name, company registered office, the names of members of the statutory bodies of the company and their number, the amount of contributions, registered capital, etc.) and other data determined by the Act on Public Registers of Legal Entities and Individuals. At the same time, information on business companies is available on the websites: http://portal.justice.cz/Justice2/Uvod/uvod.aspx (where deeds entered by the companies in the Companies Register can also be found in electronic form) , or www.obchodnirejstrik.cz. The proposal for entry in the Companies Register must be filed only by means of an electronically completed form, which is normally available at: https://or.justice.cz/ias/ui/podani. The proposal for entry must be sustained by documents on the facts which are to be entered in the Companies Register, and by deeds to be filed in the Collection of Deeds in connection with this entry (especially the documents on establishment – Founder´s Deed, Memorandum or Articles of Association, documents on the object of the business activity, documents on the payment of contribution – e.g. the declaration of the contribution manager on the payment of the contribution, documents on the company’s registered office, etc.) An essential condition for having a company entered in the Company Register is the payment of the court fee. The amount of the court fee depends on whether the entry in the Company Register is made by the notary or the court. In case the entry in the Company Register is made by the court, the fee is CZK 12 000, in the case of a joint stock company and other types of trading companies it is CZK 6 000. In case the registration is carried out through the intermediary of the notary, after all the required terms and conditions have been met, the court fee shall be CZK 8 000 for the joint stock company and CZK 2 700 for other types of companies. If the registration of a limited liability company is carried out by the notary, the entry may be exempted from the obligation to pay the court fee, provided the following conditions are met: the registration is made on the basis of a notarial deed proving the founding of the limited liability company and comprising all the requisites provided for by the Civil Code and the Business Corporations Act, where the obligations to be met in the case of pecuniary payment are stipulated.

GENERAL COMMERCIAL PARTNERSHIP, LIMITED PARTNERSHIP

The Czech legal order defines the General Commercial Partnership as a partnership of at least two persons who participate in its business activity or the management of its property and are jointly and severally liable for its debts. On the other hand, a Limited Partnership is a partnership where at least one partner bears limited liability for its debts (limited partner) and at least one partner has unlimited liability (general partner).

Photo: www.bigstockphoto.com

LIMITED LIABILITY COMPANY

In Czech legislation, the Limited Liability Company is defined as a company where the members are jointly and severally liable for its debts up to the amount at which they have not fulfilled their contribution obligations as entered in the Company Register at the time a creditor requested them to do so. A Limited Liability Company in the Czech Republic may be founded by a single person, the maximum number of founders (members) is not limited by law. The share of a member in a Czech Limited Liability Company is determined by the ratio of their contribution to the registered capital, unless the Memorandum of Association states otherwise. The Memorandum of Association may provide for various kinds of shares, where a member may own more than one share, and of various kinds (if the Memorandum of Association states so). The minimum amount of contribution, i.e. the monetary quantification of the value of the object of contribution to the registered capital, is CZK 1, unless the Memorandum of Association determines that the amount of contribution is higher. Thus, the registered capital of a Czech Limited Liability Company may even amount to CZK 1. A member must fulfil his/her contribution obligation within a period determined by the Memorandum of Association, at the latest within 5 years of the company´s incorporation or of the assumption of the contribution obligation during the company´s existence. A member may not be relieved of his/her contribution obligation, except in the case of the registered capital being reduced. A member who is in arrears on the fulfilment of his/her contribution obligation may be expelled from the company by the General Meeting. Before filing the proposal for the entry of a Limited Liability Company in the Companies´ Register, the complete contributions agio must be paid and at the same time each monetary contribution must be paid at least to the amount of 30 per cent. Obligatory bodies of a Czech Limited Liability Company are the General Meeting and executives. Besides these obligatory bodies, a company may also set up a Supervisory Board.

JOINT STOCK COMPANY

In the Czech legal order, the Joint Stock Company is defined

as a company whose registered capital is divided into a certain number of shares. The registered capital is quantified in the Czech crown, but in the case of a Joint Stock Company keeping its books in euros according to a special legal regulation, its registered capital may be quantified in euros. The minimum registered capital must be at least CZK 2 000 000. The approval of the Articles of Association is required for the founding of the company. The founding comes into effect when each founder has paid the issue agio and the sum of at least 30 per cent of the nominal or book value of the subscribed shares at a time determined by the Articles of Association, and to a bank account identified in the Articles, not later than the moment the proposal for the company´s entry in the Companies Register is submitted. A Joint Stock Company in the Czech Republic may be established by a single founder. A Joint Stock Company is established without a public offer of shares, it is thus founded only by the contributions of the founders who subscribe all the shares. The Trading Corporations Act makes it possible for the founders of a Czech joint stock company to choose between the dualistic and monistic structures. In the case of the dualistic structure the company is required to set up the board of directors and the supervisory board in addition to the general meeting. In the case of the monistic structure, the company, instead of those two bodies, is only required to set up the board of directors with a statutory director. In that case the board of directors may have only one member. This means that in practice the situation may arise when the sole member of the board of directors will be simultaneously the company´s statutory director.

Law Office of Hartmann, Jelínek, Fráňa and Partners www.hjf.cz

Member of Czech Service International www.czech-service-international.com C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 25

www.acervoltage.com ACER VOLTAGE was founded in Hradec Králové in 1992. It is a purely Czech firm, which is focused on the manufacture and development of arresters and overvoltage limiters for the protection of low- and high-voltage power distribution networks. These products find their use especially in railway applications, applications for transport enterprises, in industry in general and power generating systems.

We offer: n Low-voltage surge arrester for AC networks – protection of external networks, instruments, distribution transformers, etc. n Overvoltage

protection

limiters/switches

for

AC networks – protection of transformers, cables, motors, etc. n Overvoltage

protection

limiters/switches

for

DC networks – protection of traction lines, electrical equipment for trolleybuses, tramcars, electric locomotives, etc. n Low voltage protection limiters/switches for railway applications – protection of metal constructions in power traction systems, etc. n Universal surge arresters – protection of feeding networks up to 1 000V and LED lighting n Measuring instruments – diagnostics of surge arresters and GDT

ACER VOLTAGE s.r.o. Bratří Štefanů 1170 | 500 03 Hradec Králové | Czech Republic Phone: +420 491 618 571 | +420 491 618 573 | E-mail: info@acervoltage.com

Tax System of the Czech Republic In its main characteristics, the tax system of the Czech Republic is similar to the systems of the other EU and OECD countries. 1. DIRECT TAXES

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Payers of personal income tax are all natural persons domiciled on the territory of the Czech Republic or those habitually resident here. The tax period is the calendar year. The tax base is the sum of all income, which the law divides into income from employment, income from business, income from lease, capital income, and other income. The basic rate is 15 %, and at the same time an additional increase of 7 % solidarity tax is payable on above-limit income, i.e. monthly income of natural persons exceeding approx. CZK 100 000 (four times the average monthly wage). Payers of corporate income tax are all types of juristic persons depending on the address of their registered office or place from which they conduct their business. The tax period is the calendar year or another twelve-month period. The tax base is the amount of profit, i.e. the difference between income and expenditure relating to the relevant tax period. Income and expenditure are ascertained from the books of accounts kept according to Czech national accounting

USEFUL LINKS Ministry of Finance www.mfcr.cz Czech Tax Administration www.financnisprava.cz

standards. Only tax allowable expenses, i.e. those incurred to generate, secure, and maintain income, can be deducted. Asset depreciation is carried out individually. The rate is 19 %. Other taxes include Road Tax, Real Estate Tax, and Tax on the Acquisition of Real Estate.

2. INDIRECT TAXES

Value-Added Tax is harmonised with EU legislation. Currently the liability to register for VAT applies to persons with a turnover of more than CZK 1 million per year. Persons with a lower turnover may register voluntarily. The rates are 10 %, 15 % and 21 %. Excise Duties, too, are harmonised with the respective Directives. Excise duties apply to mineral oils, spirits, beer, wine, tobacco products, electricity, solid fuels (coal and coke), and natural gas.

Ministry of Finance www.mfcr.cz Note: USD 1 = CZK 21.735 (average exchange rate for 2018 announced by the Czech National Bank in January 2019)

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 27

BUSINESS

Czech RAKO ceramic tiles are known all over the world LASSELSBERGER, s.r.o. is a company manufacturing and selling ceramic tiles under the RAKO trademark, boasting a tradition of nearly 140 years. Long-standing know-how, innovative technologies, the use of modern knowledge in the sector and a comprehensive tile selection, including construction chemistry, rank LASSELSBERGER, s.r.o. alongside Europe´s major manufacturers of ceramic tiling materials. The attractiveness of products going under the RAKO trademark is augmented by the company´s wide-ranging supply of ceramic products used in housing construction. Demanding object and highly-developed system solutions using ceramic tiling are complemented by a wide range of construction chemicals. In 2018, LASSELSBERGER, s.r.o. sold nearly 30 million square metres of ceramic tiling. More than 60 percent of its total output went for export. The company exports its products to 67 countries on 5 continents. It covers the European market and also supplies Arab markets and Israel. Its products go to Canada, the United States, Australia and a number of African, Latin-American and smaller Asian markets. The company offers top products, whose quality and design compare well with international competition. Its technologies are continuously being developed. Its investments in new technologies in the past two years amounted to some 40 million euros. The company has at its disposal the most up-to-date technologies for the manufacture of large-format tiles, digital prints, etc. The company´s great advantage is its own raw material resources. Its products are manufactured by environmentally friendly processes, including recycling, aimed at minimising negative impacts on the environment. The high quality of RAKO products is ensured by the company´s application of international quality control systems and certificates. 28 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Color One, Color Two

The company´s clients appreciate the guarantee of its comprehensive solution as an important benefit of mutual collaboration. LASSELSBERGER is one of the firms which manufactures ceramic tiling and flooring complete with construction chemicals needed for their reliable laying. Only a few international firms can boast such a service. RAKO customers receive the guarantee from one manufacturer, covering both the quality of the tiles and their laying, provided the work is done correctly. The RAKO trademark represents a vast assortment of residential ceramic tiling and flooring, including decorative and functional accessories for the complete finishing of bathrooms, kitchens and residential interiors, including balconies and terraces, and outdoor staircases. LASSELSBERGER manufactures tiles in formats of from 5 x 5 cm to 60 x 120 cm, including tiles 2 cm and 3m thick for outdoor application.

Quarzit Outdoor For object solutions, the company offers architects, project designers and experts a comprehensive system of series complementing each other and complying with high technical requirements, especially in the case of swimming pools, sports stadiums, supermarkets, hospitals, car showrooms, etc.

Saloon Outdoor

Rebel

Unistone

Important references: swimming compound in Halifax, Campus Vienna, university in Saudi Arabia, Škoda Auto autosalons all over the world, Pilsner Urquell, the Qatar Foundation Stadium, and the Al Thumama Stadium for the 2020 football World Cup, and the project comprising police stations, schools and hospitals in Oman.

LASSELSBERGER, s.r.o. Adelova 2549/1 320 00 Plzeň - Jižní Předměstí, Czech Republic contact Marek Loula: M: +420 724 104 037 Phone: +420 800 303 333 E-mail: info@rako.cz, www.rako.eu C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 29

KEY SECTORS

Czech Engineering – Tradition and Future

Czech engineering firms manufacture a wide range of machinery, including parts and accessories, usable in most sectors of the manufacturing industry and other sectors, such as agriculture, transport, forestry, metalworking, metallurgy, mining, the textile and the paper industries, the food industry and construction.

HISTORY

Industry in the Czech Lands has a very long and diversified history. Its beginnings can be traced back to the 16th century, to the time of the rule of Rudolf II, Holy Roman Emperor and Czech King. A lover of Science and the Arts, the King invited to the country masters of different arts and crafts, such as chemists, glassmakers, jewellers, and builders. During his rule, the first blast furnace was built and used in the Czech Lands already in 1595. Partly due to its continuous operation, iron production could be significantly increased in the country. Real industrial development, however, started only in the 18th and the first half of the 19th century, and soon after that the Industrial 30 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

and Technical Revolution broke out in full. The steam engine, symbol of the Industrial Revolution, appeared in the Czech Lands in 1803. This and other inventions provided immense opportunities and possibilities of increasing production at an unprecedented rate. Heavy industry was developing rapidly. This was the beginning of the development of probably the most important sector of Czech industry – engineering. The very first modern engineering works came into being at Šlapanice near Brno in 1821. This gave an impetus to the rapid development of industry in the whole city of Brno. The rapid development of industry also continued in the second half of the 19th century. A great invention of that time was electric energy. Electricity was opening up unforeseen possibilities, which were waiting to be used. The most important period for what is today the Czech Republic was the close of the 19th century, when the first motorcars began to appear. The first Czech-made motorcar with an internal combustion engine was made in Kopřivnice in 1897 bearing the trademark “President”. Between the two World Wars, Czechoslovakia was one of the ten countries with the most advanced engineering industry worldwide! The rapid development of industry after the Second World War was influenced by both the international and internal domestic situations. Engineering became the core sector, assisting the less industrialised areas to industrialise.

CURRENT SITUATION

The engineering industry in the Czech Republic can boast not only a rich history, but also, thanks to its strong representation across

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Engineering is indisputably one of the most important sectors of Czech economy. It is of key importance for both GDP creation and the balance of trade, and employment. Competitiveness of engineering is the object of interest of foreign investors and therefore support of research and development is essential for maintaining and raising its standards.

Why do you need an electric thermal storage radiator? Clean, quick and easy installation. Ecologically sound heating. Up to 30% more savings than conventional radiators. Electric storage heaters do not require a boiler or gas connection. Easy thermostat temperature control. Available in a wide variety of colors to fit your style and interior. Radiator units can be used freestanding or wall mounted. Radiators can be wall mounted with outlets to the right or left. Simply email us and we‘ll be happy to explain everything.

Radiators Electric thermal storage radiators are the ideal choice for heating homes, apartments and just about any space that needs heating, even without a gas connection. Simply plug them into an electric wall socket, and the radiator does the rest. These radiators are not for use in bathrooms or wet environments.

How do electric thermal storage heaters work? Electric thermal storage radiators utilize cordierite ceramic plates that are heated to approximately 90°C / 194° F. This process takes only 15 minutes to achieve. Once the optimal room temperature is reached, the thermostat shuts off the use of electricity to the heater, but the panels continue radiating heat into the surrounding space. When the radiator’s core temperature drops too low, the thermostat switches on again and the whole cycle is repeated.

C z e c h R e p u b| l i cwww.s-radiatory.cz – Yo u r Tr a d e Pa r t n e r 31 s-radiatory@s-radiatory.cz

KEY SECTORS

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

Czech export of machinery and transport equipment in 2018 (January - November) (SITC 7) Name of goods

2017 Stat. value USD (thous.)

2018 Stat. value USD (thous.)

Machinery and power generating equipment

4 436 811

4 598 905

Machinery for certain sectors of industry

4 867 689

5 348 826

Metalworking machines

1 233 903

1 313 151

General purpose machinery used in industry, not elsewhere classified

12 626 080

13 177 281

Office machines and equipment for automatic data processing

12 244 591

14 037 758

Equipment for telecommunications and sound recording and reproduction

10 911 003

13 028 859

Electric equipment, devices and household appliances, not elsewhere classified

17 963 671

18 135 593

Road vehicles

38 129 883

38 338 212

1 451 942

1 347 291

Other transport equipment Source: Czech Statistical Office

bines, pumps and compressors. The Czech Republic is also a manufacturer of machine tools and forming machines and electric hand tools, the quality of which competes well with the top world standards.

EXPORT

Czech engineering is a traditionally important export-oriented sector. Up to 80 to 90 per cent of its output is exported. In export, engineering products are the source of the highest proportion of value added and its products are among the best-selling in foreign markets. As regards the territorial structure of Czech foreign trade, its traditionally largest trade partner is Germany, followed by the UK, France, Slovakia, Poland, and Spain.In 2018, the export of machinery and transport vehicles (SITC 7) amounted to USD 117 828 497 000. The Czech Republic is the only state in Central and Eastern Europe (CEE) which is a member of the prestigious European Committee for Cooperation in the Machine Tool Industry (CECIMO).

THE FUTURE

A new challenge for future years, not only as regards employment and education, is the “Industry 4.0 Initiative”. The world changed with the discovery of steam and electricity. Today it is being changed by technologies, not only those concerning ICT. That is why the Czech Government will be striving for the creation of a suitable environment in which it will be possible to

Photo: TOS VARNSDORF a.s. archives; Siemens archives

the whole country, the position of one of the pillars of Czech industry. General engineering – the manufacture of machinery and equipment – employs nearly 11 000 highly skilled workers, who are the most valuable asset of the entire sector. Within the framework of Czech industry, general engineering is one of the most important employers. Its production base, which is a guarantee of continuous improvement and enlargement of the product portfolio, is formed by more than 6 700 companies whose production comprises a very wide range of engineering products. The engineering industry is spread nationwide. It is often linked with the metallurgical industry, for example, in Ostrava and environments, where heavy engineering predominates. Heavy engineering is particularly concerned with the production of large-size and extra-heavy products, such as parts of ships, large aircraft, and mining and metallurgical machinery. On the other hand, light engineering focuses on the manufacture of machine tools, transport equipment, e.g. cars and smaller vessels, as well as a number of other smaller machines used e.g. in the textile industry. The Czech Republic has always been one of the leading manufacturers of transport vehicles, and, due to its car-making tradition and favourable geographic position, it has become an attractive country for investment. In addition, it is showing a steady growth of revenue and labour productivity in this sector. Car production, followed by the production of buses and lorries, holds an unequivocally dominant position in the manufacture of vehicles. An important engineering sector is the production of rail vehicles, their repair and modernisation. All kinds of rail vehicles, underground railway trains, tramcars and trolley buses are made in the Czech Republic. Aircraft production is one of the top engineering production sectors using new materials and it has initiated technical progress in a number of other sectors. An important position is held by the production of training jet aircraft and light combat aeroplanes, regional aircraft, training and sports aeroplanes, gliders, aircraft components and, last but not least, the production of ultralight planes. Another engineering sector faring well in the Czech Republic is the manufacture of river and river-seagoing cargo vessels, sports boats, yachts, motorcycles, and bicycles. Hot air balloons are also made in the Czech Republic, and mention should also be made of the Czech Space Programme. A very important part of the engineering sector is the manufacture of equipment for industry and construction, the production and repair of steam and water tur-

develop industrial enterprises and the social environment in such a way as to ensure that they stand the test in the digital world. This means in particular the need to build the data and communication infrastructure, restructure the education system, introduce new labour market instruments, adapt the social environment and provide fiscal aid to firms to enable them to cope with the necessity for investment in new technologies and know-how. For example, what will a lathe operator´s work be like in 15 years? Will he be working manually in the workshop, dressed in protective clothing? Or will he control the machine remotely by computer, which will be able to give accurate instructions and optimise the consumption of materials and energy, thus raising the effectiveness of production? The Industry 4.0 philosophy is opening up unforeseen possibilities and those who will be able to use them will be prepared to stand the test in the new era. www.businessinfo.cz, www.mpo.cz Czech Statistical Office

Export of machinery and transport vehicles (SITC 7) total Period

Stat. value USD (thous.)

2009

60 635 649

2010

72 606 952

2011

89 163 034

2012

85 099 298

2013

87 467 453

2014

96 291 953

2015

87 542 996

2016

91 585 417

2017

103 865 574

2018

117 709 110

Source: Czech Statistical Office

The end of the 19th century was marked by the appearance of new technologies – the combustion engine and electrical systems. That period in time is sometimes referred to as the Second Industrial, or Scientific-Technical Revolution. The most important Czech inventors of that time were Josef Ressl, inventor of the propeller, the Veverka cousins, who invented the buzz plough, i.e. an improved plough, which not only dug up the soil, but also turned it up, Viktor Kaplan, inventor of the water turbine, František Křižík, nicknamed the “Czech Edison”, inventor, electrical engineer and entrepreneur, who invented, among many other things, the electric arc lamp, improved the railway safety system, built the first Czech electric power plants and, in 1881, put into operation the first electric tramway line in Prague. In 1903, he built the first electric railway track on the Bechyně-Tábor line, which was the first electrified railway line in the entire Austro-Hungarian Empire. František Křižík Author: Ignác Šechtl; Šechtl and Voseček archives

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

CRYSTALITE BOHEMIA a.s. Established in 2009, Crystalite Bohemia a.s. represents the leading Czech crystal glassware producer offering a wide range of unique crystal products - wine glasses, tumblers, decanters, and many decorative items such as vases, bowls, candle holders, or cigar ash trays. The company nowadays employs more than 500 workers and generates an annual turnover of close to EUR 45 million. Despite being on the world market for only 10 years, Crystalite has become a staple in the glass industry and nowadays exports products to more than 82 countries worldwide. In recent years, the company has invested heavily in modern production technologies and currently runs three high-performance beverage glass lines with a daily production capacity of around 120 000 pieces of tumblers and wine glasses. The production lines are now equipped with state-of-the-art automated quality inspection machines that guarantee stable and high quality of the final product. Besides its standard catalogued collections, Crystalite offers custom production for any interested client looking for a unique shape of glass made to order. Furthermore, customers can also request various decorative techniques such as colour spraying, sandblasting, cutting, and other popular decorative techniques. Clients requesting custom-made products can expect a full range of services ranging from design, 3-D modelling,

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

sampling, producing, decorating, and custom packaging of the final product. Crystalite can work with clients‘ own designs or the company’s skilled designers can collaborate with the client and create a product based on their vision and guidance. Moreover, clients can also create their own unique packaging which the company also supplies thanks to its experienced packaging department. What sets Crystalite Bohemia apart from its competitors is its unique titanium-enriched glass melt, which gives the customers in more than 82 countries more resistant and brilliant glassware appreciated mainly by hotels and restaurants. Crystalite uses environmentally friendly lead-free crystal glass called CRYSTALITE. This glass features great light refraction, can be washed in dishwashers without the threat of turning grey, and has a long lifetime thanks to titanium infusion. Products made of such unique glass are thus stronger and more resistant to a higher number of cycles in dishwashers. Moreover, Crystalite represents the only automated glassworks in Czech producing drinkware and giftware items in the same factory, which gives the customers more options as to product selection. The biggest markets for the company represent Russia, the USA, Brazil, and Germany. Every year, Crystalite Bohemia participates at Frankfurt Ambiente, US Tabletop Shows, and Asian trade shows. Two main showrooms of the company are located in New York City and its headquartes in Světlá nad Sázavou, the Czech Republic. The company is still in search of new markets around the world.

Crystalite Bohemia a.s. www.crystalite.org

CONTACT: Crystalite Bohemia a.s.

Zámecká 730 | 582 91 Světlá nad Sázavou | Czech Republic crystalite@crystalite.org | phone: +420 569 477 201 Facebook: https://www.facebook.com/CrystaliteBohemiaOfficial/ Instagram: https://www.instagram.com/crystalitebohemia/ C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 35

KEY SECTORS

Czech Food Industry – Hidden Potential Although the food industry is not an export leader, some of the features perceptible in its development indicate that its export potential is growing.

EXPORT ARTICLES

The greatest volume of export in this sector is shown by raw materials – cereals, milk powder, malt, coffee, rape oil, feeds, bakery goods, chocolate and cocoa preparations, food preparations, beer, sugar, cheeses and curd.

FOOD INDUSTRY AND AGRICULTURAL MACHINERY

Manufacturers of food industry and agricultural technologies and machines, too, have been doing well in recent years. These technologies and machines are exported to Belarus, the Russian Federation and Georgia, as well as to Albania, Bulgaria, Kazakhstan, Mexico, Uruguay, and Ethiopia. Foreign companies are showing interest in bakery and brewery equipment, mini breweries, dairies, and cheese-making equipment. Other export articles of Czech firms include vegetable oil presses, smokehouse equipment, vegetable packing lines, beverage processing and packing lines, meat processing equipment, and 36 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

CZECH PRODUCERS

Food producers in the Czech Republic are associated in the Food Chamber, founded in 2001. The Chamber has more than 170 members, whom it represents in negotiations with Czech and EU authorities and organisations with a worldwide scope of operations. The priorities of this institution in the market are clear: support of quality production, regional trademarks, and local producers. It is authorised to award the “KLASA” quality badge, the “Regional Product” and the “Czech Product” badges, all guaranteeing a high quality standard. Also important for ensuring high quality is the certification of exceptional products, e.g. EU origin marking (such as Bohemia caraway seed, Olomoucké tvarůžky cheese) and guaranteeing traditional specialities (“špekáček” sausage). Brewing has a long tradition in the Czech Lands. Czech beer and the Czech brewing industry are among the best-known in the world. The oldest recorded mention of the Czech beer brewing tradition is boasted by Břevnov Monastery in Prague, founded in 993. Czech beer is protected by an EU geographical indication, the purpose of which is to maintain the good name and quality of beer brewed on the territory of the Czech Republic. The purpose of registration in the Register of Protected Designations is to protect the tradition of Czech brewing, the Czech technology of production and the beer quality, and to prevent imitations pretending to be Czech beer and thus abusing its

Photo: pixabay.com

The reasons are especially the strict and insistent quality control, respect of tradition, the use of modern research methods and technologies in production and, last but not least, the development of product, technology, and organisational innovations. We are persuaded that the Czech food industry has much to offer to the world.

seed and cereal processing technologies and manufacturing plants. Czech firms build whole breweries and mini breweries in foreign countries and participate in subcontracting for big projects, especially as regards technologies. Czech brewing exports comprise not only the final product, but also the entire technology, from hops to machinery to expert personnel, especially brewmasters. Some clients require a permanent presence of a Czech technologist, others demand his presence for just a transient period, until they have trained their own people.

COMPANY In 1992, Mr. Miloš Lindr founded a production and service company in the field of dispensing and cooling systems. Thanks to several years of hard work and because of meeting its customer‘s requirements, a small family business changed quickly into the Lindr company, a leading Czech manufacturer of dispensing systems. Also nowadays, with the company offering interesting jobs to more than one hundred people, and having its own complete production program, Lindr still proclaims the visions of a family business, built with purely Czech capital.

design Since the beginning , Lindr has been going its own way with own original products, having been both as for the technical side and its own irreplaceable unique design. Using a high quality polished stainless steel in combination with natural hardwood leads to entirely original and ageless details.

innovations Both ideas and innovations of Lindr have been highly successful on the Czech, European and world markets. Lindr’s development and innovations always includes the requirements and experience of its customers, and the company keeps the best ratio of performance/ quality / easiness / design / price. Every year the company enriches the market with entirely original innovations. At present, Lindr has the widest range of dry beer coolers and of coolers with the smallest dimensions as for the given performance on the European market.

QUALITY Lindr is aware of the quality of Czech beer and of the beer culture. In order to be proud of this world top position, and to increase this quality with our products, Lindr has been using only certified materials and raw materials meeting the strictest demands for the hygiene and CE standards, which guarantee high quality, reliability, long working life Cand z e c hageless R e p u b l design. i c – Yo u r Tr a d e Pa r t n e r 37

KEY SECTORS unique properties. It is also intended to prevent beer brewed in the Czech Republic from using non-traditional methods or beer made with the use of traditional methods, but in a country other than the Czech Republic, from being labelled as Czech beer. There are different brands of Czech beer, which differ in taste and the method according to which they have been made. For example, light beer alone can be made by a number of different methods. Each brewery has its own recipe; the breweries may use different fermentation methods, let the brew ferment for a longer or shorter time at a lower or higher temperature, and they may use different kinds and types of vessel for fermentation. Besides the renowned big breweries, there are some 400 mini breweries in the Czech Republic, and their number is growing continuously. Most beer is exported to Slovakia, Germany, and Poland. Out of the non-European countries, the largest importers are Russia, South Korea, and the USA. Wines from the Czech Republic, too, are increasing their export potential. They have a good reputation in Europe and are often winners of international competitions, defeating traditional champions. Wine growers are also striving to enter non-traditional markets, where the Czech Republic is known rather for its beer and sports-

Export of selected kinds of goods from 2016 to 2018 Code

Kind of goods

2016

2017

2018

1001

Wheat

11 589

2874.2

10 729

2540.7

8 359

1 874.70

1514

Rape oil

11 127

525.9

6 872

313.9

4 996

263.6

2309

Animal feed preparations

9 003

434.6

10 537

491.2

11 237

511.9

1905

Baked goods 9 634

167.6

9 545

173

9 902

178.4

401

Milk and cream

6 791

822.1

8 487

845

8 813

900

2106

Food preparations

7 288

55.6

7 969

65.7

8 509

66.6

2203

Beer

6 246

448

6 149

465

6 727

521

1701

Sugar

4 147

330.6

3 705

309.1

3 240

318.1

mil.CZK thous.t. mil. CZK thous.t. mil. CZK thous.t.

In 2018 food export including live animals was worth CZK 135.0 billion, and beverage export including tobacco CZK 36.7 billion.

men. Most Czech wines are exported to Slovakia, Poland, and other EU countries.

EXPECTATIONS AND OBJECTIVES

After a period of stagnation, the Czech food industry is now experiencing a revival. All indications are that this development will continue and Czech producers are doing their best to ensure that their products and technologies score ever greater success in world markets. Compiled from materials supplied by the Food Chamber of the Czech Republic and the Ministry of Agriculture.

Lump sugar has been with us for 178 years. It was in 1841 that Jacob Christof Rad, a Swiss-born physician and director of the refinery in Dačice near Jindřichův Hradec, at that time Austria-Hungary, was issued a patent for this form of sugar, which until then was sold in cones. Although the invention is credited to Christof Rad, its inspirer was actually his wife. According to the Dačice official website, it happened that one day in August 1841, as Mrs Juliana Radová wanted to cut off a small piece from a sugar cone, she cut her finger. She immediately complained to her husband and the story has it that she suggested that sugar should be made in the form of cubes. In a few months, the cube was born. In autumn 1841, Juliana received a present from her husband – a case with 350 little red and white cubes of sugar. Christof Rad had a press made for shaping sugar into cubes and, at the end of 1842, he filed an application to the Court Chamber in Vienna to be accorded the privilege of manufacturing lump sugar in Dačice. The privilege was accorded on 23 January 1843. 38 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Immediately after that, the production of lump sugar was launched. The cubes first appeared in Vienna under the name of tea sugar. One package comprised 250 cubes, which weighed one pound and cost 50 kreutzer. The cubes came in two sizes, 1.2 cm x 1.2 cm x 1.2 cm and 1.5 cm x 1.5 cm x 1.5 cm. The patent was also bought by other European countries – Prussia, Saxony, Bavaria, Switzerland, and England. As a point of interest, let us mention that Rad´s invention is used to this day, albeit in a slightly improved form. The invention of lump sugar has spread throughout the whole world. The town of Dačice is justly proud of its world primacy and, in token of this, has installed a memorial in the form of a cube of sugar cut in granite in the place of honour in front of the town’s Church. www.regiony.rozhlas.cz, www.muzeumdacice.cz, www.tn.cz

Photo: pixabay.com

178 YEARS OF LUMP SUGAR, AN INVENTION BORN IN DAČICE

We help Czech firms succeed in foreign markets

Tel.: +420 221 406 602, 617 PP Agency s.r.o. Myslíkova 25 www.ppagency.cz

110 00 Praha 1 info@ppagency.cz www.doingbusiness.cz C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 39

KEY SECTORS

Nanotechnologies Entering into Big Business In the past few years, the Czech industrial tradition has acquired a new dimension with the addition of nanotechnologies to its conventional practice. Nanotechnology based on the combination of organic and inorganic components gives rise to new materials that have a variety of uses, for example in medicine, the textile industry, air and water cleaning, and the manufacture of electrical batteries. Since the moment in 2004, when the Technical University in Liberec, in collaboration with Elmarco company, developed, as the first workplace in the world, an industrially usable nanofibre, this new technology has witnessed a dynamic development. Thanks to the physical properties of nano microscopic particles a thousand times thinner than the human hair, this technology has found its way into a number of Czech manufacturing firms. The absolute majority of firms whose core business is the use of nanotechnologies in their operations are born global companies, which operate on the international scale and seek trade partners in other countries.

manufacture of photocatalytic paints with titanium oxide nano particles. This practically transparent paint has an extraordinary ability – to clean the ambient air and remove viruses, bacteria, toxins, and cigarette smoke from it. This principle can be used to reduce air pollution in cities and industrial agglomerations. Recently, a Czech firm filed a patent application for an electrically conductive nanofibre. When electrical current is passed through it, the fibre acquires the capacity to kill viruses and bacteria in contaminated water. The material can be used for different purposes and in different areas, including the military environment and healthcare, and can be useful in third-world countries, where clean water is scarce.

INVESTORS AND THEIR NEED TO EXPORT

WHAT HAVE CZECH FIRMS MANAGED TO ACHIEVE?

According to the Nanotechnology Industry Association of the Czech Republic, this technology does not mean just innovation. In actual fact it signifies a technological change, whereby man can manipulate matter at the molecular level, across all sectors. The portfolio of Czech nanotechnology firms is quite broad. Among other areas, it includes the 40 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

NANOTECHNOLOGY TRIGGERS OFF A REVOLUTION IN MEDICINE

A real breakthrough is the use of nanotechnologies in medicine, where thus far unheard of possibilities are opening up. They can be used in diagnostics, drug distribution within the body or the treatment of patients with the aid of special nano instruments. And moreover, nano medicine ranges in sizes in the order of billionths of a metre, and this is the size of the particles of which the human body is composed – molecules, the DNA helix, and also a large number of dangerous viruses. By enabling a detailed view of the biological processes, nanotechnology offers a new set of instruments for understanding the sources and mechanisms of diseases. Czech firms are keeping pace in this area and there are good prospects that, together with research laboratories, they will be in a position to offer many more products that will find their way into the world, despite the competition from nanotechnology development in the USA, Japan, and China.

Photo: pixabay.com

Currently, more than 15 private research companies and some 70 manufacturers in the Czech Republic use nanotechnologies in their operations. In addition, there are specialised centres in this country, to which firms come for consultation to become acquainted with new scientific developments. Twenty-six workplaces of the Czech Academy of Sciences, 37 university faculties and 9 research organisations financed by the state in the Czech Republic concern themselves with basic research in different nanotechnology areas. Despite being the cradle of nanotechnology research and its practical application, the important thing for the Czech Republic in future is to arouse the interest of investors from neighbouring states to which Czech firms could export their nano products. All the more so, as firms in as many as 70 regions of the European Union are focusing on nanotechnology research and nanotechnologies are becoming an important instrument of the national economies in their efforts to gain a competitive edge.

WHO WE ARE TOSEDA provides contract research and development, small scale production, and consultation services in the field of polymer chemistry and nanotechnologies. Core business is space industry (collaboration with major EU space industry partners and European Space Agency (ESA)). The main mission is to fill the gap on the market with specialties that are usually commercially unavailable. Registered at ESA and member of the Czech Space Alliance (www.czechspace.eu)

WHAT WE OFFER Custom design and commercialization of novel polymeric and nanocomposite materials: Development of hi-tech polymeric materials (composites, adhesives, coatings, elastomers, foams) Modification by tailor designed nanostructures (organic, inorganic, hybrid) Small scale production of specialties such as masterbatches, polymeric premixes, prepregs etc. Target applications (space, aerospace, military, construction, electronic industries and medicine)

REFERENCES (ESA SPACE PROJECTS) Development of Epoxy Based Syntactic Foam Encapsulant (2013-2016) Resin Development for Cryogenic Applications (2014-2015) Nano-Hybrid Transparent Materials (2014-2016) Design of Inner Wetted Thermal System for LH2 Metallic Tank (2014-2016) Electrically Conductive „Black Primer“ (2017-2018) Development of „Green“ Polyurethane Materials (2017-2019) Thermal Joint Development for NEOSAT - Phase C (2017-2020) Extended Pot Life Resins for Out of Autoclave Processing for Large and Complex Part (2018-2020)

Transparent and Flexible Polyimide Foil for Thermo-Optical Applications

Electrically Conductive and Non-Conductive Thermal Interface Sheets

www.toseda.cz/en/ 41 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

KEY SECTORS

Medical Equipment Made by Czech Companies is Conquering the World One of the fastest growing export commodities in the Czech Republic is the export of a wide spectrum of medical supplies and devices for equipping hospitals. The presentation of Czech producers abroad owes much to the fact that the Czech Republic is a country with a strong healthcare system covering all the fields of modern medicine.

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EMPHASIS ON QUALITY

Many successful Czech exporters are members of the Association of Producers and Suppliers of Medical Devices (AVDZP). The Association unites over 100 leading Czech companies from the field that achieve a turnover of approximately 17 billion crowns a year. Their share of export constitutes 35 %. Members of the Association cooperate with a number of research departments of universities, such as the Czech Technical University in Prague, Brno University of Technology, Tomáš Baťa University in Zlín, and Masaryk University in Brno. This serves as further evidence of the attention Czech producers pay to the quality, competitiveness and technical advancement of their medical equipment. Some of the unique products they export abroad are, among others, degradable stents for the digestive tract, a wide range of steam, hot-air, and chemical sterilisers, lab dryers, and incubators. The companies are not only limited to those, however, as they also supply a variety of physical therapy equipment, e.g. electrotherapy devices, sonography devices, lasers and devices for lymphatic drainage therapy. They also export complex systems for biological protection, logistics and decontamination systems and equipment for urgent and long-term care medicine. The majority of Czech manufacturers of medical equipment export most of their core production. This indicates that they are succeeding on the world market. Many Czech companies are following suit, managing to develop and continuously successfully export unique products and patented goods worldwide. Association of Producers and Suppliers of Medical Devices (AVDZP), Businessinfo.cz

Photo: www.bigstockphoto.com

On the territory of the Czech Republic, healthcare offers a wide range of outpatient facilities, hospitals, and medical institutions under the patronage of not just the state, but various private entities as well. Czech companies rank among the best in the field of the manufacture and supply of medical materials, devices, and equipment for hospitals. Every year, their products travel to a number of countries worldwide. Outside of European Union countries, they find their way to the Russian Federation, the Commonwealth of Independent States, territories in south-eastern Asia, the USA, and recently also to Africa, among others. Czech companies are finding an increasingly solid foothold by supplying products and devices with added value, meaning with a high contribution from research, electronics, and information technologies. Czech exporters focusing on medical supplies of all kinds have experienced rapid growth in the last ten years. They are successful in acquiring lucrative contracts for providing not just individual goods and services, but for equipping entire hospitals, health centres and healthcare chains, including the construction of such facilities. Examples of these can be found in Ghana, Gabon, Laos, Algeria, Trinidad and Tobago, Papua-New Guinea, Columbia, and even Russia and Kazakhstan. For instance, they had a hand in building three hospitals in Gabon and ten health centres in Ghana alone.

ALL-ROUND EQUIPMENT

A number of Czech suppliers of medical equipment have entrenched themselves in highly competitive foreign markets in recent years. These companies put emphasis primarily on three key factors: Research, leading to reaching high technical parameters; Design, aiding in selling the product; and Quality, resulting in the products‘ reliability. A combination of all these criteria can be found, for instance, in medical instruments and traumatological implants, rehabilitation and transport equipment, medicinal and technical gas distribution systems, stabilisers, cobalt radiators, anaesthesiological equipment, and adjustable hospital beds. The value of the export of medical equipment abroad is estimated at 25 billion crowns (approximately USD 1.3 bil.). The majority of this is equipment for operating theatres and inpatient wards. The world leader in this segment is the Linet Group, supplier of medical and nursing beds, furniture, anti-pressure-sore mattresses and more. The company has expanded its range of products with birthing, gynaecological, and dialysis chairs. Of course, Linet is not the only Czech company to find success on foreign markets. The majority of such companies believe strongly in running their own development, indicating that this is the way to beating the competition.

Bohemia-lázně a.s. Spa Hotels Kriváň – Slovan | Sadová 5 | 360 01 Karlovy Vary | Czech Republic Phone: +420 352 511 111 | Fax: +420 353 228 220

accommodation@bohemia-lazne.cz

Have you heard about Karlovy Vary, a spa town with curative thermal springs? Whatever your answer may be, Karlovy Vary will certainly not disappoint you. The town´s great attraction is its unique architecture, which, together with other European spa towns, is a candidate for entry in the UNESCO List of World Heritage, as a Great Spa of Europe. What really makes Karlovy Vary unique, however, is its local thermal springs (42o C – 73o C).

Its 13 springs are used for the treatment of digestive tract diseases, diabetes, gout and large joint diseases. Come to Karlovy Vary and make your own experience; then you will understand why the German poet Goethe visited the town 13 times and why the Russian Tsar Peter the Great admired it so much.

Bohemia-lázně a.s. offers: Spa hotels Kriváň, Slovan, Concordia – 3 star accommodation (117 single rooms, 204 double rooms and 19 apartments) Ideal location in the downtown of Karlovy Vary, just a few steps from the colonnades with mineral springs Modern balneological centre offering more than 45 different procedures based on thermal mineral water and peat Spa, Relax and Wellness programmes based on the treatment of gastrointestinal, metabolic and locomotive system disorders Preventive and curative stays for children 7 years of age and older

w w w . b o h e m i a - l a z n e . cC zze c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

KEY SECTORS

The Czech Republic, Attractive Tourist Destination The Czech Republic is one of the countries with thriving tourism. The land with a population of 10 million is a peaceful and safe destination, offering historical monuments, picturesque scenery, world-famous spas, a network of luxury hotels as well as facilities for leisure activities. In recent years, the Czech Republic has also gained a reputation for congress tourism, for which capacities have been adapted especially in big cities. The number of guests accommodated in collective accommodation facilities in 2017 for the first time exceeded 20 million, which is 1.7 million more than in 2016. A record 21.3 million guests were accommodated in Czech hotels, guest houses and camps in 2018, 6.4 per cent more than the year before. The number of domestic and foreign guests was nearly matched. Another record was the number of nights tourists spent in collective accommodation establishments last year. The number of foreign guests coming to the Czech Republic last year was over 10.6 million, 550 000 more than in the preceding year. Most foreign guests last year came from the neighbouring Germany, their number for the first time exceeding the two million mark. Following next were visitors from Slovakia, Poland, and China. The number of Chinese tourists amounted to nearly 620 000, 26.5 per cent more than the year before. Currently, tourism accounts for about 3 per cent of

Czech gross domestic product and employs more than 230 000 people.

CONGRESS CAPITAL

The Czech Republic has been ranked among the 30 most suitable countries for congress tourism over the long term and the Czech capital, Prague, is even one of the 15 most favoured cities. Among others, this evaluation is due to the successful organisation of several conferences of global importance that have been hosted by Prague in recent years. A stable economy, strategic location, favourable climate, various tourist attractions as well as the high quality of services provided in the congress facilities are factors that make Prague an attractive destination. The city provides modern hotels with an extensive choice of conference premises, including state-of-the-art facilities. Prague Congress Centre has been extensively modernised, and capacities and services are also being extended by Václav Havel International Airport, the destination for numerous international flights operated by renowned airlines as well as a number of low-cost air carriers.

SPA SELECTION

Another important segment of tourism is the spa industry. The Bohemian and Moravian regions are especially rich in mineral water sources, which in the past gave rise to the existence of famous spa localities ranked among the best in the world. The joint work of man and nature has achieved world renown and become the country´s important health and economic commodity. The use of natural healing sources, baths, mineral waters and spa treatments

PRAGUE

Ranking 1st In terms of square metres of greenery per head is Reykjavik with 410.84 sq. metres. In next place is Auckland in New Zeeland with 357.2 sq. metres, followed by Bratislava with 332.99 sq. metres and Prague with 220.54 sq. metres of greenery per capita. Greenery occupies 56.74 per cent of Prague´s total surface area, ranking it 1st, with Hamburg coming 2nd with 45.42 per cent and Madrid 3rd with 44.85 per cent. Prague

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Photo: CzechTourism (Ladislav Renner, Libor Sváček)

Prague is ranked among the world´s ten greenest cities, according to a study by the Dutch TravelBird Company. In terms of square metres of greenery per head of the population, Prague ranks 6th, but in the percentage of the total surface area of the city, it is placed 1st.

Karlovy Vary

has a long-standing tradition. Although spa facilities can be found in all the regions of the Czech Republic, the most significant medicinal resources are in the regions of Karlovy Vary, Ústí nad Labem, South Bohemia, Hradec Králové, and Olomouc.

IN PURSUIT OF HEALTH AND RELAXATION

With the change of lifestyle in recent years, Czech spas have extended their standard offer of curative treatments with new forms of relaxation, regeneration and anti-stress programmes suitable for overworked entrepreneurs and managers. These special extended programmes, combined with a range of accompanying recreational activities (golf, tennis, fitness, cycling, etc.), are offered by about 40 spa localities in the Czech Republic.

Notably, the aforementioned golf is increasingly reflected in the favourable tourism statistics. So much so that numerous quality courses are situated close to natural beauty and heritage sites. More than 130 golf clubs operate in the Czech Republic and lovers of this game can use more than 70 golf courses. Those of the best quality, with the highest standard of services, have been set up around the capital city of Prague, in what is known as the West Bohemian Spa Triangle near Karlovy Vary, and in Northern Moravia.

Czech Blades company Traditional manufacturer of premium quality stainless blades Global leader in safety razor blades and industrial blades made of carbon steel Traditional manufacturer of premium quality stainless blades Awarded as one of Top 20 well suppliers of Procter&Gamble Owner of well recognized trademarks TIGER®, TATRA®, SOKOL®, LEON®, LUXOR® and Czech Blades Industrial®

TIGER Platinum shaving stainless blades Premium European quality * Smooth shave * Advanced comfort

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 45

INSTITUTIONS

Institutions Present Themselves

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.

INTERNATIONAL TRADE PROMOTION

WE ARE

lW e coordinate incoming business and trade missions lW e represent our members at international trade fairs lW e organise conferences, seminars and workshops promoting exports

lW e organise international conferences attended by heads of states and governments

lW e organise international business and trade missions lW e cooperate with partner confederations and business chambers worldwide

l T he largest and most influential independent organisation of employers and entrepreneurs in the Czech Republic

lA 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 lA volunteer organisation, independent of the government, political parties, and trade unions lA respected social partner and a participant in the European social dialogue

WE REPRESENT l 1 1 000+ companies – our members employ more than 1.3 million people

l 3 2 industry federations and associations from key areas of the Czech economy

lO ver 135 significant individual member companies

OUR PRIORITIES l S upporting industry as the main pillar of the Czech economy l S trengthening the significance of research, development and innovation in industry

lC ontinuing development in technical education and expanding the technically skilled labour force

lC reating a business-friendly environment for entrepreneurs and international investors

lA dvancing international trade and exports l I mproving the transport infrastructure l F urthering the digitalisation of the economy and e-Government lW riting and agreeing on a stable, enforceable, and predictable legislative framework

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

CZECHINVEST, BUSINESS AND INVESTMENT DEVELOPMENT AGENCY CzechInvest: Your gateway to success in the Czech Republic The Business and Investment Development Agency CzechInvest is a state contributory organisation subordinated to the Ministry of Industry and Trade of the Czech Republic. Services include sector-specific market intelligence, identification of business properties and sites, investment incentives, identification of potential business partners, suppliers and acquisition targets as well as aftercare services. The Agency contributes to attracting foreign investors operating in the manufacturing industry, business support services and technology centres, and also supports Czech enterprises in their expansion efforts. To simplify communication between the state, business, and the European Union, CzechInvest acts as an umbrella business-promotion organisation for companies using both EU and national funding. CzechInvest is exclusively authorised to file applications for investment incentives at the competent governing bodies and prepares draft offers to grant investment incentives. Its task is also to provide potential investors with current data and information on business climate, investment environment, and investment opportunities in the Czech Republic. All services are provided free of charge.

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

CzechInvest in Canada 33 Bloor Street East, 5th floor Toronto, ON M4W 3H1 Phone: +1-647-640-2113 Emal: canada@czechinvest.org

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 the Czech Republic (CR) 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 to become integrated more widely in the EU framework programmes. To foreign clients, the Centre – EEN Praha office offers: information about the CR, about the business environment in the CR, Czech legislation, about how to find Czech partners for cooperation, information about starting a business in the CR, sources of financing from Structural Funds and other information. Services of the Enterprise Europe Network are funded from the European Union’s COSME Programme (2014-2020) under the grant agreement No. 831241 and by the Ministry of Industry and Trade of the Czech Republic.

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

l More information at: www.czechinvest.org l

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INSTITUTIONS

CZECH TRADE PROMOTION AGENCY / CZECHTRADE CzechTrade is a governmental business agency of the Czech Republic established by the Ministry of Industry and Trade. Its main objective is to develop international trade and cooperation between Czech and foreign entities. Wherever in the world you are, the Agency is your official contact partner when looking for qualified Czech-based manufacturers and service providers. lM ore than 20 years of professional partnership l F ree of charge, mainly bespoke services l 5 0 offices operating worldwide l E xcellent overview of Czech manufacturers and their production potential Connecting Czech & world businesses via lC zech Business Partner Search l S ourcing Days l T rade Shows lP rivate Showcases lN etworking Events

CZECH BUSINESS PARTNER SEARCH If you are looking for a partner to assist you with production, you can approach our specialised team with your specific request. CzechTrade will gladly help you to get in touch with the relevant Czech companies. lP ersonal consultation & fillable on-line form at http://www.czechtradeoffices.com/en/services/ czech-business-partner-search l L ist of relevant Czech companies and facilitation of access to selected ones

SOURCING DAYS Tailored event according to your needs Specify your product/services requirements, define qualifications for a potential supplier, and we will organise one-to-one meetings followed by arrangement of company visits in the Czech Republic. This service saves you time: lP recise knowledge of Czech manufacturers and their production potential lB espoke market screening – we identify potential suppliers as per your requirements l S uppliers shortlist – after reviewing each applicant’s profile, we select companies you wish to meet lA ll-inclusive package – from providing meeting rooms to accompanying you to companies premises, we cover it all

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CZECH EXPORTERS DIRECTORY Official on-line database of Czech exporters and the easiest tool to help you find potential business partners in the Czech Republic. http://exporters.czechtrade.cz/en

WWW.BUSINESSINFO.CZ/EN The official business portal that is here to help foreign businesses to navigate the Czech business environment. Current information on its website on the conditions for doing business and on investment and trade opportunities.

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

CzechTrade in Canada Suite 105, 10655 Southport Rd. SW T2W 4Y1, Calgary, AB Phone: +1 403 269 4924, mobile: +420 606 237 162 Email: jaroslav.jelinek@czechtrade.cz Web: www.czechtrade-canada.ca l More information at: www.czechtrade.eu l

CZECH TOURISM AUTHORITY – CZECHTOURISM

CZECH CENTRES

The Czech Tourism Authority – CzechTourism is an allowance organisation of the Ministry of 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 markets 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 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.

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 of 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, to 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.

Česká centrála cestovního ruchu – CzechTourism Vinohradská 46, P.O.Box 32, 120 41 Praha 2 Phone: +420 221 580 111 E-mail: Info@czechtourism.cz

Czech Tourism Authority – CzechTourism USA (+Canada), 1109 Madison Avenue, New York, N. Y. 10028, USA Phone: +1 212 288 0830 Fax: +1 212 288 0971 E-mail: newyork@czechtourism.com

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

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INSTITUTIONS

INTERNATIONAL CHAMBER OF COMMERCE / ICC 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 good not only for business, but also for global living standards and 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 to diversify Czech exports to perspective markets and to help to establish useful business contacts. In the period of 2017/ 2018, these workshops were focused on e.g.: Greece, Thailand, Nigeria, Albania, Belarus, Latvia, Ukraine, Iceland, the USA, Cuba, Kuwait and Qatar, Macedonia, Romania, Ireland and many others. Seminars, professional courses Our extensive range of educational programmes is targeted at specific topics associated with conducting international trade. Lecturers include experts and professionals with long-time experience or managers working in the given field – Incoterms 2010, Bank guarantees and experience with URDG 758, Documentary Credits and Standbys – International Standard Banking Practice and Practices in the USA, Terms of international sale contract in foreign trade.

Národní výbor Mezinárodní obchodní komory v České republice Florentinum, Na Florenci 2116/15, 110 00 Praha 1 Phone: +420 257 217 744 E-mail: icc@icc-cr.cz l More information at: www.icc-cr.cz l

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CONFEDERATION OF EMPLOYERS’ AND ENTREPRENEURS’ ASSOCIATIONS OF THE CZECH REPUBLIC 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. l 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, healthcare, culture, and social services; l i t represents 22 000 bodies with over 1 300 000 employees; l i t supports the promotion of specific interests of its members in the legislative field and in other areas; l 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; l 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: lA ssociation of Textile, Leather, and Clothing Industry lU nion of Czech and Moravian Producer Cooperatives l S yndicate of Businesspeople and Tradespeople of the Czech Republic lA ssociation of Entrepreneurs in Building Industries in the Czech Republic lU nion of Employers’ Associations of the Czech Republic l E mployers’ Association of Mining and Oil Industry lA gricultural Association of the Czech Republic lU nion of Czech and Moravian Consumer Co-operatives

Konfederace zaměstnavatelských a podnikatelských svazů ČR Václavské náměstí 21, 113 60 Praha 1 Phone: +420 222 324 985 Fax: +420 224 109 374 E-mail: kzps@kzps.cz l More information at: www.kzps.cz l

CZECH CHAMBER OF COMMERCE

neurs and foreign business delegations

l Involvement in various European Commission’s programmes l Support to foreign companies in finding suitable business

WHO WE ARE l I ndependent public institution of entrepreneurial

partners in the Czech Republic

self-governance l 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 lN etwork – regional (regional and district chambers) and professional (unions, associations, etc.) lP latform for 15 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 lM ember of European and international organisations

WHAT WE DO l S upport of International Trade lO rganisation of business missions targeting particular territory or sector

website

l Czech Business Representation in Brussels (CEBRE) lC onsultancy & advisory services (subsidies, projects, export & foreign trade, legal issues, etc.)

lC ZECHPoints (registers, documents, certificates, services, etc.) over 50 one-stop-shops throughout the country

lP rofessional Education – national certification programmes (recognised occupation), skill competitions

l T hematic courses & seminars, etc. lO bligatory commenting point for new business legislation l L obbying at local, national, European & international level l I ssuing own monthly KOMORA.cz magazine and weekly electronic news distributed directly to members

Hospodářská komora České republiky

lO rganisation of business missions accompanying state and government officials on their visits abroad lO rganisation of business forums, seminars, round tables etc., targeting particular country or territory lO rganisation of bilateral meetings between Czech entrepre-

T-TYPE HORIZONTAL BORING MILL

l Publishing foreign demands, offers or tenders on Chamber

Florentinum, Na Florenci 2116/15, 110 00 Praha1 Phone: +420 266 721 300 E-mail: office@komora.cz l More information at www.komora.cz l

www.retos.cz n new

CNC and conventional machines n retrofitting n accessories n spare parts n expert service

Producer of Horizontal Boring Mills More than 25 years of experience We at RETOS produce table-type, floor-type and T-type horizontal boring mills in traditionally high Czech quality. By offering you spare parts, a large variety of accessories as well as overhauls and modernizations, we prolong the lifecycle of your machines significantly and make it fit your needs. Our latest machine, which has completed the 10XP series, has been very well accepted and sold several times thanks to its utmost variability. The RET10X – a machine with X options – meeting your requirements RETOS VARNSDORF s.r.o. Žitavská 913, 407 47 Varnsdorf, Czech Republic E-mail: sales@retos.cz Sales Manager: Ing. Jaroslav Dvořák Tel.: +420 413 039 105

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CO N TAC TS

Useful Contacts USEFUL CONTACTS IN THE CZECH REPUBLIC Embassy of Canada to the Czech Republic Ve Struhách 95/2 160 00 Praha 6 – Bubeneč Phone: (+420) 272 101 800 Fax: (+420) 272 101 890 Email: canada@canada.cz Web: www.canada.cz Canadian Chamber of Commerce in the Czech Republic Konviktská 291/24 110 00 Prague 1 Phone: +420 777 400 900 Email: mozisova@gocanada.cz Web: www.gocanada.cz

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

Ministry of Agriculture Ministerstvo zemědělství www.mze.cz/eagri.cz Ministry of Transport Ministerstvo dopravy www.mdcr.cz Ministry of Finance Ministerstvo financí www.mfcr.cz Ministry of Regional Development Ministerstvo pro místní rozvoj www.mmr.cz Ministry of the Environment Ministerstvo životního prostředí www.mzp.cz Ministry of Labour and Social Affairs Ministerstvo práce a sociálních věcí www.mpsv.cz

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

Kroměříž – Flower Garden

Ministry of Health Ministerstvo zdravotnictví www.mzcr.cz Ministry of Education, Youth, and Sport Ministerstvo školství, mládeže a tělovýchovy www.msmt.cz Ministry of Culture Ministerstvo kultury www.mkcr.cz Ministry of Justice Ministerstvo spravedlnosti www.justice.cz Ministry of Defence Ministerstvo obrany www.army.cz Ministry of the Interior Ministerstvo vnitra www.mvcr.cz

Photo: CzechTourism (Libor Sváček)

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

USEFUL CONTACTS IN CANADA Embassy of the Czech Republic 251 Cooper Street, Ottawa Phone: (+1) 613 562 3875, linka 11- ústředna, linka 21 – sekretariát Fax: (+1) 613 562 3878 Email: ottawa@embassy.mzv.cz Web: www.mzv.cz/ottawa Consulate General of the Czech Republic 2 Bloor Street West, Suite 1500, Ontario, M4W3E2, Toronto Phone: +1 416 972 1476 Fax: +1 416 972 6991 Email: toronto@embassy.mzv.cz Web: www.mzv.cz/toronto Consular powers: the provinces of Alberta, Manitoba, and Saskatchewan, and part of the province of Ontario (except Prescott and Russell, Stormont, Dundas and Glengarry, Ottawa-Carleton, Leeds and Grenville, Lanark, Renfrew, Nipissing, Lennox and Addington, Frontenac)

For an overview of honorary consulates of the Czech Republic in Canada see: https://www.mzv.cz/jnp/cz/encyklopedie_statu/ severni_amerika/kanada/kontaktni_cesky_urad/index.html CzechTrade Suite 105, 10655 Southport Rd. SW T2W 4Y1, Calgary, AB Phone: +1 403 269 4924 Mobile: +420 606 237 162 Email: jaroslav.jelinek@czechtrade.cz Web: www.czechtrade-canada.ca CzechInvest in Canada 33 Bloor Street East, 5th floor Toronto, ON M4W 3H1 Phone: +1 647 640 2113 Emal: canada@czechinvest.org

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

CO N TAC TS

The Most Important Websites General information on the Czech Republic

www.czech.cz

Official site for the CR

BusinessInfo

www.businessinfo.cz

Doing Business in the Czech Republic

www.doingbusiness.cz

Portal of the Public Administration

www.vlada.cz

Official site for business and exports General information about business climate, structure, and development of the Czech economy The electronic gateway for the public to administration and government services

Company Contact Information ARES

www.info.mfcr.cz/ares/ares.html Access to Registers of Economic Subjects/Entities

Hoppenstedt Bonnier

www.hbi.cz

The most important companies in the CR and the SR

Inform.cz

www.inform.cz

Czech Company Catalogue

Kompass

www.kompass.com

Czech Company Catalogue

European Databank

www.edb.cz http://exporters.czechtrade.cz/ en/

Information operator

Iuridika

http://iuridica.eunet.cz

Directory of legal services and official bodies

Portal of Czech judiciary

www.justice.cz

Course of legal proceedings

Czech National Bank

www.cnb.cz

Monetary, financial, and macroeconomic data

Prague Stock Exchange

www.pse.cz

Prague Stock Exchange data

RM-Systém

www.rmsystem.cz

Czech Stock Exchange

Czech Insurance Association

www.cap.cz

Directory of insurance companies operating in the CR

Czech Statistical Office

www.czso.cz

Official statistical data and information covering different subjects

Fairs and Exhibitions BVV – Brněnské veletrhy a výstavy/Trade Fairs Brno Miscellaneous

www.bvv.cz

List of exhibitions and fairs in the CR and relevant information

The Industrial Property Office

www.upv.cz

The Czech Science Foundation

www.gacr.cz

The Register of Advertising Agencies

www.registrra.cz/rra

Česká pošta (the Czech Post)

www.ceskaposta.cz

Residence of Foreigners in the CR

www.domavcr.cz

Association for Foreign Investment

www.afi.cz

Cadastre of Real Estate

www.cuzk.cz

Road toll in the CR National Register of Vocational Qualifications Portal of the Regional Information Service The Czech Association of Hotels and Restaurants

www.mytocz.eu

Czech exporting companies

Company-Catalogue Czech Exporters Directory

Legislation

Finance

Statistics

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

Patents, trade marks, utility models, and industrial designs Awards grants to the best projects of basic research in all branches of science Expert assistance in choosing and working with advertising and communication agencies in the CR Incl. postcodes of municipalities and its districts (PSC), philately etc. Advice for living in the CR

www.risy.cz

Support for entry of foreign investors Information system, contains data on real estate in the CR Information on toll and charges Survey of professional qualifications recognised in the Czech Republic Information website on the regions

www.ahrcr.cz

Directory of hotels in the CR

www.narodni-kvalifikace.cz

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