Denmark, Finland, Norway, Sweden 2016/2017 by PP AGENCY

CZECH REPUBLIC Your Trade Partner

2016/2017 Denmark – Finland – Norway – Sweden

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, Investment and Business Development Agency

CzechTourism – Czech Tourist Authority

Czech Centres

Centre for Regional Development of the Czech Republic

Deadline: 24th March 2016 ® 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

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

PRODUCT PORTFOLIO Hair care Sun care Insecticide + repellent sprays Shoe care Personal care Household Automotive + technical sprays :LWK PRUH WKDQ <HDUV RI traditional aerosol manufacturing and annual production of around PLOOLRQ XQLWV ² &]HFK $HURVRO is to be the most experienced and the biggest Aerosol manufacturer in the Czech Republic. &]HFK $HURVRO RIIHUV WR DOO LWV customers around Europe, Russia and Middle East co-operation on the base of FULL SERVICE. :LWK LWV RZQ ÅRQ WKH VSRW´ R&D, Czech Aerosol offers its customers maximum flexibility during development of customized and innovative projects. Czech Aerosol product portfolio consists of more than 400 different formulations.

Manufacturer of aerosol products since 1961 www.CzechAerosol.cz info@CzechAerosol.cz +420 417 813 607

Czech Aerosol, osol, a.s. Velvěty 33 415 01 Rtyně yně nad Bílinou Czech Republic ublic info@CzechAerosol.cz hAeroso

Prague – Charles Bridge

Contents Photo: CzechTourism (Dagmar Veselková), www.freeimages.com, Cover photo: the ﬁrms archives (ABX, spol. s r.o.; Blažek Glass s.r.o.; Dr. Müller Pharma s.r.o.; ERILENS s.r.o.; Kv.Řezáč, s.r.o.; Slévárny Třinec, a.s.; ŠKODA AUTO a.s.; Šroubárna Kyjov, spol. s r.o.; TOS VARNSDORF a.s.; TRANSROLL - CZ, a.s.; ŽALUZIE NEVA s.r.o.)

FOREWORD Foreword by Mr Jiří Brodský, Ambassador of the Czech Republic to the Kingdom of Denmark Foreword by Mr Martin Tomčo, Ambassador of the Czech Republic to the Republic of Finland Foreword by Mr Milan Dufek, Ambassador of the Czech Republic to the Kingdom of Norway Foreword by Mr Jiří Šitler, Ambassador of the Czech Republic to the Kingdom of Sweden Czech Exporters Useful Information

6 7 8 9 10 12

Prague – Prague Castle

ECONOMICS Czech Economy in 2015 Trade Relations between the CR and Denmark Trade Relations between the CR and Finland Trade Relations between the CR and Norway Trade Relations between the CR and Sweden

15 16 18 20 23

BUSINESS Examples of Czech Projects in the Nordic Countries Investment is One of the Top Priorities for the Czech Government Trading Companies in the Czech Republic Tax System of the Czech Republic

25 26 28 31

KEY SECTORS IN THE CZECH REPUBLIC Czech Engineering – Tradition and Future Czech Automotive Industry Stepping up Its Dynamics The Czech Republic – a Strong Player in the EU Energy Market Czech Manufacturers of Agricultural Machinery are Doing Well Nanotechnologies Entering Big Business The Czech Republic, an Attractive Tourist Destination

32 35 36 38 41 42

INSTITUTIONS PRESENT THEMSELVES Confederation of Industry of the Czech Republic Czech Chamber of Commerce International Chamber of Commerce in the CR Nordic Chamber of Commerce Czech Trade Promotion Agency/CzechTrade CzechInvest, Business and Investment Development Agency CzechTourism – Czech Tourist Centre Czech Centres Centre for Regional Development of the CR Confederation of Employers’ and Entrepreneurs’ Associations of the Czech Republic

44 44 47 47 48 51 51 52 52 55

CONTACTS Useful Addresses in the Czech Republic Useful Contacts in Denmark Useful Contacts in Finland Useful Contacts in Norway Useful Contacts in Sweden The Most Important Websites

56 56 56 59 59 61

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

FOREWORD

Dear Readers, The economic relations between the Czech Republic and the Kingdom of Denmark benefit from increasing trade volume (the Czech exports have almost doubled since 2010), the long-term presence of more than 90 Danish investors in the Czech Republic, and ties in politics, culture, and science which date back to the 13th century. Denmark is the closest Nordic country to the Czech Republic, well connected by highways and railways, and direct flights operated by Czech Airlines to Copenhagen and Billund. Danish companies like Lego, Marius Pedersen, Bang & Olufsen, Rockwool and others chose the Czech Republic for their investments, due to its position in the very heart of Europe, its convenient infrastructure and access to other countries of Central and Eastern Europe, as well as for its favourable investment climate, strong economic performance (currently the best among the EU member states), highly skilled labour force, industrial base, and top technical university graduates. Danish businessmen also find the Czech Republic attractive for its historical sights, rich culture and natural beauty. Both Czechs and Danes like to relax outdoors and the Czech Republic currently boasts more than 100 golf courses, numerous Alpine and cross-country ski resorts, and great cycling opportunities. Danish tourists increasingly like to explore the Czech Republic through camping, visits to minibreweries or the producers of excellent Moravian wine. Danish companies find Czech partners for important tenders, both in Denmark and abroad, in the energy sector, modernisation of the infrastructure, construction projects, agriculture and the food industry. I am pleased that we have seen such partnerships winning tenders, thanks to the precision and quality of their products or services, and innovative solutions. There are opportunities for Danish firms in the Czech Republic, particularly in the sectors where they are recognised as leaders: e.g. energy, design, architecture, smart cities. It is equally important for the Czech Republic to promote its relations with Greenland and the Faroe Islands, food processing and tourism being the strongest sectors. The Czech Embassy in Copenhagen has economic diplomacy as its key priority and is ready to support your activities. I feel certain that if you are seeking a long-term investment in a stable economic environment, the Czech Republic is where you will be successful. Jiří Brodský Ambassador of the Czech Republic to the Kingdom of Denmark

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

Dear Readers, I am pleased to say that the relations between the Czech Republic and the Republic of Finland are outstanding at all levels, not only in politics and the economy, but also with regard to interpersonal relationships. With some exaggeration, it can be said that, besides ice hockey and Jaromír Jágr, the most famous Czech figure in Finland is The Little Mole, immediately following on the fame of Emil Zátopek, who won himself the nickname of Satu-Pekka, “Fabulous Pete”. The history linking our two countries goes far back into the past. As early as the 14th century, Finns, prompted by their studies at Prague University, joined in the spiritual and political life back home. In the 16th century, Finnish students came to Olomouc, Moravia, to attend the Collegium Nordicum, a seminary established by the University of Olomouc. During the Thirty Years´ War, terrifying legends circulated throughout the Czech Lands about the fiendish Hakkapeliittas, Finnish soldiers in the Swedish army, who took with them treasures from Prague´s Strahov Monastery and the Strahov Library, which were later destroyed in a fire in Turku, Finland. Thanks to Czech linguists, one of the first translations of the Finnish epic, The Kalevala, appeared in Czech in the 19th century. Czechs have always supported cooperation with our Finnish partners; cultural exchange, tourism and mutual trade are on the rise. Despite the fragile recovery of the European economy and the current structural problems in the Finnish economy, mutual trade is increasing; in 2014, Finland occupied 26th position. Over the past ten years, Czech exports to Finland have been rising significantly; 2014 was a record year with Czech exports increasing by 25.5%. The two countries have much in common. However, the potential for further growth exists, especially in the economy. Both Finland and the Czech Republic are among the most stable economies in Europe with respected industrial traditions. We are linked together by a secure investment environment, skilled labour, well developed infrastructure, emphasis placed on research and development, stable social and political systems and a high standard of living. The Czech Republic is one of the most successful Central European countries with regard to attracting investments. Since 1993, according to the Czech National Bank, foreign direct investments worth EUR 85 billion have been located in the Czech Republic. More than 100 000 foreign companies, including Finnish firms, are based in the Czech Republic. Czech enterprises are competitive in all the main sectors of industry, such as engineering, the automotive industry, IT and communications, nanotechnologies, the aviation industry, etc. The major Czech articles of export to Finland are Škoda motorcars – the third best-selling car make in that country. Czech firms are also successful in exporting their services, while their investments, too, are on the rise. For example in 2015, Skoda Transportation Group purchased a majority share in TransTech, the only Finnish manufacturer of railway and city rail vehicles. I am persuaded that the Czech Republic will continue attracting Finnish businessmen and firms, not only because of this country´s macroeconomic stability, well developed industry, skilled and multilingual labour force, but also its high standard of living. Prague is a modern, vibrant metropolis which, in addition to its architectural gems, just as other Czech cities also boasts a rich cultural life, beautiful nature and top-quality gastronomy. The Embassy of the Czech Republic in Helsinki (http://www.mzv. cz/helsinki/en/index.html) is ready and most willing to support your investment activities and wishes you the best of success in your business activities. Martin Tomčo Ambassador of the Czech Republic to the Republic of Finland 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

FOREWORD

Dear Readers, It is with great pleasure that I take this opportunity to greet you on behalf of the Embassy of the Czech Republic in Oslo. In my opinion, people should use every opportunity to learn more about each other and about each other’s countries. This applies to trade similarly as to all other areas. Czech-Norwegian relations, which have a long history, are excellent and free of any problems burdening them. Mutual economic and trade relations form a good basis for such a relationship where, on the one hand, Czech exports to Norway are growing and, on the other hand, Norwegian natural gas is flowing into the Czech Republic. However, developments on the global oil markets have not left Norway unaffected. This is an opportunity and a challenge for the Norwegian economy to become less attached to oil extraction in favour of the overall development of the Norwegian economy. The weaker Norwegian Krone gives a boost to Norwegian exports in a number of the country’s traditional export branches. In this sense, this publication may be the first step for Norwegian firms when considering entry into the Czech market and the Czech Republic. The Czech Republic has an open economy, which has been showing considerable growth in recent years in comparison with other European countries. In addition, it offers political and economic stability. In the past few years, certain Norwegian firms, including large companies engaged, for example, in the food industry, have already taken this step. Such decisions may be followed by small and medium-sized firms. A similar process can also be seen in the opposite direction. For example, large Czech firms operating in the area of construction, have already gained a position for themselves in Norway. In collaboration with Norwegian partners, they successfully participate in tendering for different projects. The automotive industry, too, is doing well. In comparison with the other Nordic states, the Norwegian market is more demanding for Czech firms. This is partly because Norway is not a member of the European Union and its collaboration with the EU is based on participation in the European Economic Area, and partly because of the dominance of certain sectors which are not typical for the Czech economy. However, this new situation in which the Norwegian government is striving for the development of “inland industry” is opening up new opportunities for Czech firms interested in the Norwegian market. Just as good fortune often heralds the beginning of great things, so it is also possible to imagine that this publication may lead to new information and new contacts and possibilities for Norwegian firms to operate on the Czech market, and for Czech firms to find new partners in Norway. The Embassy of the Czech Republic in Oslo offers its assistance and advice in the first steps taken on this pathway. Our aim is to support mutual trade and to contribute towards the strengthening of relations between the two countries and their people. Therefore, do not hesitate to contact us. Milan Dufek Ambassador of the Czech Republic to the Kingdom of Norway

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

Dear Readers, Since my first days in Sweden, I could experience the intensity of Czech-Swedish economic relations in real life. I was received in the Royal Palace wearing a tophat produced by the traditional Czech company TONAK, only to find out that it´s owned by a Swedish firm now. Also horses used during this grand ceremony are raised in the Kladruby stables, founded in the 16th century and located East of Prague. One can see numerous Škoda cars in the streets of Stockholm, and most of the hospital beds sold in Sweden are produced by the Czech company Linet, and their high quality is well known worldwide. 65% of our exports to Sweden is machinery, but also other products are popular. So far, I didn´t see any restaurant or bar that wouldn´t serve Czech beers, and their good reputation is underlined by the fact that some Swedish breweries proudly (and rightly, as far as I could taste) boast that they produce beer in “Czech style”. During my welcoming reception, our Embassy served excellent wines from the Czech Republic´s South Moravian region oﬀered with great success by Systembolaget. Sweden is a highly popular country among Czechs, and Swedish products are also very visible. Our air force pilots fly Gripen, and tractors and trailers imported from Sweden are a common sight in the Czech countryside. Sweden ranks with its 120 companies and appr. 12 000 employees among 15 biggest investors in our country, benefiting from and contributing to our highly competitive, open and knowledge-based economy. I am happy to see that this relationship is not static – statistics prove that the upward trend of our economic relations. Our mutual trade grew by 9.3% in 2015, reaching the volume of almost EUR 3.3 billion. Also the tourism sector, so important for mutual understanding, flourishes – growing numbers of Swedes (over 100 000 last year) visit our country annually. New promising innovative sectors, like e.g. life science, are being explored. The Czech Embassy, in cooperation with the Czech Trade, CzechTourism and Czech Centre, our government agencies based in Stockholm, wants to be a reliable partner and facilitator for any entity interested in development of Czech-Swedish economic relations. Our doors are always open for you. Jiří Šitler Ambassador of the Czech Republic to the Kingdom of Sweden

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

FOREWORD

Czech Exporters Czech enterprises that present their products and services in this publication intend to expand their exports and seek trade partners in Denmark, Finland, Norway or Sweden. The ﬁrms are listed according to the branch codes – NACE. 09.90

10.89 13.93 13.94

13.96

14.31 20.42

20.59 21.00

22.29 23.13 23.19

24.10

24.50 24.51 24.52 25.00

25.11

25.20

25.21

Support activities for other mining and quarrying INCO engineering s.r.o. Manufacture of other food products n.e.c. Dr. Müller Pharma s.r.o. Manufacture of carpets and rugs GRUND a.s. Manufacture of cordage, rope, twine and netting Kv.Řezáč, s.r.o. Manufacture of other technical and industrial textiles TRATEC - CS, s. r. o. Manufacture of knitted and crocheted hosiery BAPON - ŠTEPON, s.r.o. Manufacture of perfumes and toilet preparations Czech Aerosol, a.s. Dr. Müller Pharma s.r.o. Manufacture of other chemical products n.e.c. Czech Aerosol, a.s. Manufacture of basic pharmaceutical products and pharmaceutical preparations Dr. Müller Pharma s.r.o. Manufacture of other plastic products ERILENS s.r.o. Manufacture of hollow glass Blažek Glass s.r.o. Manufacture and processing of other glass, including technical glassware Blažek Glass s.r.o. Manufacture of basic iron and steel and of ferro-alloys Šroubárna Kyjov, spol. s r.o. Casting of metals Slévárny Třinec, a.s. Casting of iron Slévárny Třinec, a.s. Casting of steel Slévárny Třinec, a.s. Manufacture of fabricated metal products, except machinery and equipment ŽALUZIE NEVA s.r.o. Manufacture of metal structures and parts of structures WAREX spol. s r.o. KOMA - Industry s.r.o. Manufacture of tanks, reservoirs and containers of metal ABX, spol. s r.o. Manufacture of central heating radiators and boilers AGROMECHANIKA v.o.s.

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

25.30 60 25.50 43 02

25.60 25.62

59 25.72 49 25.99 55

04 43

26.50

04 27.00 43

27.12

54 27.32 13 27.33 13 27.90 40

28.11

58 28.12 58 28.15 58 28.22 53 28.25 45 50

28.40

28.41 28.91

Manufacture of steam generators, except central heating hot water boilers ABX, spol. s r.o. Forging, pressing, stamping and roll-forming of metal; powder metallurgy Šroubárna Kyjov, spol. s r.o. Treatment and coating of metals; machining TRANSROLL - CZ, a.s. Machining KOMA - Industry s.r.o. Šroubárna Kyjov, spol. s r.o. Manufacture of locks and hinges BLUE RAY a.s. Manufacture of other fabricated metal products n.e.c. ŽALUZIE NEVA s.r.o. ERILENS s.r.o. Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks NEWTE spol. s r. o. Manufacture of electrical equipment SENCO Příbram spol. s r.o. Manufacture of electricity distribution and control apparatus B:TECH, a.s. Manufacture of other electronic and electric wires and cables KABELOVNA Děčín Podmokly, s.r.o. Manufacture of wiring devices KABELOVNA Děčín Podmokly, s.r.o. Manufacture of other electrical equipment T Machinery a.s. Manufacture of engines and turbines, except aircraft, vehicle and cycle engines Doosan Škoda Power s.r.o. Manufacture of ﬂuid power equipment KOMA - Industry s.r.o. Manufacture of bearings, gears, gearing and driving elements OMEGA spol. s r.o. Manufacture of lifting and handling equipment TRANSROLL - CZ, a.s. Manufacture of non-domestic cooling and ventilation equipment ENERGO CHOCEŇ, s.r.o. Manufacture of metal forming machinery and machine tools RETOS VARNSDORF s.r.o. Manufacture of metal forming machinery BLUE RAY a.s. Manufacture of machinery for metallurgy INCO engineering s.r.o.

40 25 50 40 34

53 54

27 62

22 22 39

14 50

11 25

37 34 60

28.92

28.93

28.94

28.99

32.50

32.99 33.00

35.30 41.00 41.20

Manufacture of machinery for mining, quarrying and construction T Machinery a.s. INCO engineering s.r.o. Manufacture of machinery for food, beverage and tobacco processing J 4 s.r.o. Manufacture of machinery for textile, apparel and leather production TRATEC - CS, s. r. o. Manufacture of other special-purpose machinery n.e.c. AGROMECHANIKA v.o.s. J 4 s.r.o. Manufacture of medical and dental instruments and supplies ORTEX , spol. s r.o. ERILENS s.r.o. Other manufacturing n.e.c. ŽALUZIE NEVA s.r.o. Repair and installation of machinery and equipment Doosan Škoda Power s.r.o. Steam and air conditioning supply ENERGO CHOCEŇ, s.r.o. Construction of buildings Metrostav a.s. Construction of residential and non-residential buildings WAREX spol. s r.o.

42.00 39 60

42.99

43.00 19 43.21 49 46.41 62 19

46.45 47.10

57 54

68.20

71.12

14 71.20 30 72.00 63 72.19 45

Civil engineering Metrostav a.s. Construction of other civil engineering projects n.e.c. WAREX spol. s r.o. Specialised construction activities Metrostav a.s. Electrical installation B:TECH, a.s. SENCO Příbram spol. s r.o. Wholesale of textiles BAPON - ŠTEPON, s.r.o. GRUND a.s. Wholesale of perfume and cosmetics Blažek Glass s.r.o. Retail sale in non-specialised stores AGROMECHANIKA v.o.s. Rental and operating of own or leased real estate BLUE RAY a.s. Engineering activities and related technical consultancy B:TECH, a.s. SENCO Příbram spol. s r.o. Technical testing and analysis AV ENGINEERING, a.s. Scientiﬁc research and development AV ENGINEERING, a.s. Other research and experimental development on natural sciences and engineering AV ENGINEERING, a.s.

45 63 46 62 55 02 13 62 34

46 62 60 60

www.omega-zlin.cz Company proﬁle

Quality

Company OMEGA Ltd was established in Zlin in 1991 and is located in its own premises with a total area of 8.600 m2 which include three production halls with a modern-equipped control department and central warehouse.

Company OMEGA Ltd is a holder of an ISO 9001:2009 Quality System Certiﬁcate ( TÜV SÜD Czech Ltd ) and has implemented the ISO 14001:2005 system. The quality of our products is the first priority of our production. Quality control starts with the purchase of material and continues with every subsequent operation, up to the shipping of the finished product to the customer.

The Main Production The main activity of OMEGA is the batch production of wheels and shafts for gearboxes, the production of camshaft gears, hollow shafts, gear rings, and other components. We provide our own material for the production, including heat treatment.

The quality control department is equipped with modern monitoring instruments and it proves the quality of the supplied products to the customer with measuring reports.

High Precision Products Thanks to highly skilled employees, long-term experience in the area, and state-of-the-art technology, we achieve high productivity of production and the highest possible quality of products, such as gear wheels for the aviation industry.

Production programme Production of Gear Transmissions Module range 1,0 - 6,0 Accuracy class from 4, according to the DIN standard • Straight gears • Helical gears • Chain gears • Gear rings • Splinted shafts • Clutch shafts • Hollow shafts

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

FOREWORD

Useful Information State Symbols of the Czech Republic Large State 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

Křivoklát Castle

Population 10 538 275 (December 2014) Area 78 864 sq. km Capital city Praha (Prague) Parliamentary system Parliamentary democracy Language Czech Highest peak Sněžka (Snow Mountain – 1603 metres above sea level) Time zone Central European Time GMT + 1, summer time GMT + 2 Currency Czech crown (Kč/CZK) =100 halers 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

NOTABLE PERSONS

Jindřichův Hradec

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 a 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 Dvořák, and Bohuslav Martinů, the writers Franz Kafka, Karel Čapek, Jaroslav Seifert (holder of the Nobel Prize), Jaroslav Hašek, Bohumil Hrabal, and Milan Kundera. Oscar prizes have been awarded to film directors Miloš Forman (born in the

Other practical information concerning travel conditions to visit or reside in the Czech Republic are to be found at www.czech.cz

Photo: CzechTourism, www.freeimages.com; Map source: Roads and Motorways Headquarters

Mariánské Lázně – the Colonnade

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. More information can be found at www.unesco-czech.cz.

BERLIN HAMBURG HANNOVER

SZCZECIN ZIELONA GÓRA

BERLIN

DORTMUND KASSEL

POZNAŃ

LEIPZIG Legnica

ROTTERDAM KÖLN ERFURT

Görlitz

DRESDEN Jena

WARSZAWA ŁÓDŹ

WROCŁAW Jelenia Góra

Gera

GDAŃSK ŁÓDŹ

Świdnica

CHEMNITZ

Wałbrzych

Zwickau

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 LVOV (UA) RZESZÓW

Bayreuth

Bielsko-Biała

FRANKFURT AM MAIN WÜRZBURG

BANSKÁ BYSTRICA POPRAD

Erlangen Fürth

NÜRNBERG MANNHEIM HEILBRONN

Žilina MÜNCHEN INGOLSTADT

Regensburg

KOŠICE POPRAD

Trenčín

MÜNCHEN

KOŠICE ZVOLEN

Passau Trnava

Linz MÜNCHEN

St. Pölten

Wels

Nitra

WIEN

BANSKÁ BYSTRICA ZVOLEN

BRATISLAVA

SALZBURG

GRAZ SOPRON GRAZ

BUDAPEST Ő

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, Věra Čáslavská, Martina Navrátilová, Jaromír Jágr, Petr Čech, Barbora Špotáková, Petra Kvitová, Martina Sáblíková, and Eva Samková.

PRACTICAL INFORMATION Dialling code: +(420). More detailed information about telephone numbers can be found 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: O2 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.

Blažek Glass, s.r.o. is a glass company owned by the Blažek family. Seven generations of the family have produced and decorated crystal and their tradition dates back to the 18th century. The ﬁrst company was established as early as in 1933 by Josef Blažek, then the youngest member of the glass-working Blažek family, in Nový Bor, later he moved to Poděbrady. There, since 1939, regardless of unfavourable war years, he managed to develop his business until 1948, when his company was nationalized.

www.blazek-glass.cz

New products and décor lines are continuously developed in the range of manually decorated crystal and both manual work and new technologies are now used for their manufacture and decorating. X

In 1997 the company introduced a new product to the domestic and foreign markets – original glass nail ﬁle. This unique product has received several awards both in the Czech Republic and abroad and it is patented in many countries of the world.

In 1992 the glass works were given back to the Blažek family, who succeeded in restarting the company in spite of the long pause. The tradition of manually decorated crystal was re-established and continues up till nowadays under the name Blažek Glass.

Blažek Glass s.r.o. manufactures and supplies all over the world original glass nail ﬁles, traditional decorated crystal, crystal urns, trophies, lamps, glass jewellery and other glass goods. The most successful markets include Germany, the USA, France, the UK, Japan etc.

Blažek Glass, s.r.o. Olbrachtova 600 X 290 01 Poděbrady X Czech Republic Tel.: +420 325 603 206 X e-mail: secretary@blazek-glass.cz

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 13

Czech Economy in 2015 In 2015, after years of recession, the Czech economy showed the best performance since 2008. Evidence of this are both the growth of gross domestic product and gross added value. Both indicators rose throughout all the quarters year-on-year. GROSS DOMESTIC PRODUCT In 2015, GDP was 4.3% up on the 2014 year, according to the latest estimate, with year-on-year growth in 2014 amounting to 2.0%. The growth was assisted especially by household consumption and more intensive investment activity. Gross value added (GVA), measuring economic eﬃciency, grew in all the quarters of 2015. Adding to its growth was in particular the manufacturing industry assisted by several smaller sectors.

INDUSTRY Industrial production in 2015 increased by 4.4% over the previous year. Nearly all branches of the manufacturing industry showed a year-on-year growth, in particular the manufacture of motor vehicles (11.5%), clothing manufacture (10.7%) and the remaining branches of the manufacturing industry (10.5%). In general, the manufacturing industry was 5.6% up year-on-year. Only three sectors were below the 2014 level: Mining and Extraction (98.3%), Basic Metals Production (90.0%), and the Chemical Industry (94.3%).

FOREIGN TRADE* The favourable trend of previous years continued. In comparison with 2014, exports increased by 7.2% and imports by 8.0%. The balance of trade showed a surplus of CZK 433 billion (EUR 15.9 billion). The highest surplus, the same as in 2014, was shown by the group of Machinery and Transport Vehicles and the Industrial Goods group. On the other hand, a deficit was shown by the Mineral Oils and Lubricants group and the Chemicals and related products group.

PRICES In 2015, the inflation rate as measured by the consumer price index was 0.3%, the lowest since 2003. Prices in the Foods and Non-alcoholic Beverages group and the massive reduction in fuel prices were mostly responsible for the year-on-year decrease in the level of consumer prices. The declining trend continued in the Posts and Telecommunications sector. In the Healthcare sector, the decrease was reflected in the abolition of regulatory health fees for doctors’ consultations and for medical prescriptions. The higher tobacco prices had the opposite eﬀect.

WAGES The average gross monthly nominal wage of employees (in terms of the full-time equivalent) in the 1st to 3rd quarters of 2015 was CZK 25 903 (approximately EUR 940). Nominally wages were up by 3.2% and really by 2.8% year-on-year. In the business sphere, real wages increased by 2.7% and in the non-business sphere by 3.2%.

Jana Bondyová Czech Statistical Oﬃce; www.czso.cz *) The average monthly exchange rate ﬁxed by the Czech National Bank was used for CZK/EUR conversion..

Macroeconomic Indicators of the Czech Republic 2009 1)

Gross Domestic Product (current prices) 1)

Gross Domestic Product Industrial Production

2010

2011

2012

2013

2014

2015

CZK, billion

3 924.6

3 950.6

4 019.8

4 041.9

4 077.2

4 261.1

4 477.0

%, real, y/y

-4.8

2.3

2.0

-0.9

-0.5

2.0

4.3

%, y/y

-13.6

8.6

5.9

-0.8

-0.1

5.0

4.4

Registered unemployment by MPSV

9.2

9.6

8.6

9.4

8.2

7.5

6.2

General unemployment rate according to selective labour force examination3)

6.7

7.3

6.7

7.0

6.1

6.4

%, average

0.6

1.2

2.1

3.5

2.7

0.1

0.2

80 992.0

100 319.0

117 057.0

121 982.7 122 185.7

131 806.0

142 567.1

-18.4

23.9

16.7

0.2

7.9

8.2

75 322.0

95 544.0

109 288.0

109 639.4 108 622.6

116 209.0

126 698.3

-22.0

26.8

14.4

0.3

-0.1

7.0

9.0

Inﬂation (HICP)4) Exports5)

EUR, mil.

%, y/y

Imports

EUR, mil.

Imports5)

%, y/y

Exports

Balance of Trade5)

4.2

EUR, mil.

5 670.0

4 774.5

7 769.0

12 343.3

13 564.1

15 597.0

15 868.8

CZK/EUR

average

26.445

25.290

24.586

25.143

25.974

27.533

27.283

CZK/USD6)

average

19.057

19.111

17.688

19.583

19.565

20.746

24.600

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 2010 system of accounts, 2014 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; MPSV = Ministry of Labour and Social Affairs; 3) LFSS = Labour Force Sample Survey; 4) HICP = Harmonised Index of Consumer Prices, inflation rate by EU method; 5) Foreign trade data expressed in EUR 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 15

ECONOMICS

Trade Relations between the CR and Denmark Table 2: The most important Czech export items in 2015 (Standard International Trade Classiﬁcation / SITC) Commodity

Stat. value in EUR thous.

Food and live animals

Share in %

29 838

2.1%

Beverages and tobacco

7 052

0.5%

Crude materials, inedible

6 784

0.5%

Mineral fuels, lubricants, etc.

5 143

0.4%

257

---

Chemicals and related products

334 353

24.2%

Market products

170 791

12.3%

Machinery and transport vehicles

662 567

47.9%

Industrial consumer goods

166 689

12.0%

803

---

Animal and vegetable oils

Commodities and market objects

The most important Czech export items are pharmaceuticals (20%) and motor cars, which in the past accounted for approximately one-quarter of total exports and last year for approximately 18%. On the domestic market, according to De Danske Bilimportoerer Danish

Table 1: Development of trade between the CR and Denmark from 2010 to 2015 (EUR million) 2010

2011

2012

2013

2014

2015

2010–2015 change

Total turnover

1 387.1

1 537.6

1 541.2

1 646.7

2 237.8

2 152.8

+55.2%

Czech exports

794.9

905.0

924.4

999.4

1 511.0

1 384.3

+74.1%

Czech imports

592.1

632.6

616.8

647.4

726.7

768.5

+29.8%

Balance CR-Denmark

202.8

272.4

307.6

352.0

784.3

615.7 Source: Czech Statistical Oﬃce

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

Photo: www.freeimages.com

Denmark has been an important trade partner of the Czech Republic on a long-term basis. In terms of the volume of mutual trade exchange, Denmark ranks within the first 20 states in the statistics of the Czech Statistical Oﬃce, which also show a very progressive growth in the mutual trade turnover over the past few years. Exceptional growth can be seen especially as regards Czech exports, which rose by nearly 75% between 2010 and 2015. A very favourable trend in favour of the Czech Republic is also shown by the mutual trade balance, where the favourable balance trebled in the period under review. The structure of Czech exports to Denmark, the same as the structure of Danish exports to the Czech Republic, is strongly influenced by industrial products, which continue to dominate mutual trade. Their share of Czech exports accounts for approximately 59.9% and that of Czech imports from Denmark for 53.0%. The structure in 2015 of Czech exports to Denmark is shown in Table 2 and that of Czech imports in Table 3.

Table 4: Exports – most important items (in EUR thous.)

automobile association, some 13 300 Škoda cars were sold in 2015, which accounts for a 7.1% share of the Danish market. Czech exports of Toyota, Peugeot and Citroën cars from the TPCA works in Kolín are growing as well. Other Czech export items include ferrous and steel products, electrotechnical and communication products, automatic data processing equipment, recording media, memory units, TV receivers, etc. Tables 4 and 5 give a detailed survey of the best-selling items according to SITC4 classification, which illustrates in detail the structure of the main traded commodities. Within the framework of Sectoral Opportunities Maps, the following opportunities for Czech export have been analysed for Denmark: sectors with good prospects are the energy industry (vast modernisation of energy networks and products – power stations, heating plants, incinerating plants, etc.), railway transport (renovation of the carriage fleet and the infrastructure, construction of city light passenger rail transport systems), construction (Femern, Europe´s largest transport project, construction of bridges and airport terminals, developer and industrial zones, logistic centres, hospitals, etc.) and the agricultural and food industry (supply of agricultural machinery – tractors, sowing machines, ploughs, semitrailers, etc.) The presence of more than 90 companies with Danish capital in the Czech market is very important for the promotion of mutual trade.

Table. 3: The most important Czech import items in 2015 Commodity Food and live animals

Stat. value in EUR thous.

Share in %

Code

Commodity

2015

7812

Passenger transport vehicles

260 730

5429

Pharmaceuticals

187 533

5422

Pharmaceuticals comprising hormones

83 168

7616

Television receivers

50 948

7523

Other automatic data processing equipment

31 296

8984

Disks, tapes, recording media

28 967

8931

Plastic objects

27 946

5416

Glycosides, glands

24 829

7599

Machinery parts, accessories

24 987

7527

Memory units

22 911

6996

Ferrous and steel products

21 748

7642

Microphones, loudspeakers

21 529

Table 5: Imports – most important items (in EUR thous.) Code

Commodity

2015

8942

Children´s toys, indoor games

151 886

6842

Aluminium, aluminium alloys

36 248

5422

Pharmaceuticals comprising hormones and derivatives

34 658

5429

Pharmaceuticals, other than....

33 741

5416

Glycosides, glands

28 370

6732

Flat rollers, ferrous products

18 126

7649

Parts of radios and telecommunication accessories

12 543

7843

Mechanical equipment and motor vehicle accessories

11 759

0122

Pork

9 076

0013

Pigs, boars, piglets, live

6 790

These are manufacturing companies focusing mostly on technologies, where Danish firms are among the world´s best, and firms doing business in the area of trade and services. The largest Danish investors in the Czech Republic are the companies of LEGO (toy manufacture), Bang&Olufsen (audio technology), Marius Pedersen (waste management), Dansk Eternit (roofing), Rockwool (structural insulation), Faerch Plast (packaging), NKT Cables (power cables), Kompan (children´s playgrounds), Fibertex (non-woven textiles), DISA (foundry machines), etc. The production capacity of these firms is responsible for a considerable part of Czech exports to the Danish and Nordic markets.

51 965

6.8%

Beverages and tobacco

1 862

0.2%

Crude materials, inedible

24 380

3.2%

Mineral fuels, lubricants, etc.

10 519

1.4%

716

- - -%

Chemicals and related products

156 734

20.4%

Market products

115 386

15.0%

Machinery and transport vehicles

172 920

22.5%

Industrial consumer goods

234 061

30.5%

Miroslav Čančík

---

Head of the Commercial Section of the Embassy of The Czech Republic

Animal and vegetable oils

Commodities and market objects

---

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

Trade Relations between the CR and Finland One of the common features of the Czech Republic and the Republic of Finland is the low share of their economies in the world economy and their dependence on export. In the history of the independent the Czech Republic, the development of mutual trade relations with Finland can be divided into two stages. Until 2004, the Czech Republic had an unfavourable balance of trade with Finland. This changed in 2005, and from that year on, the Czech Republic´s balance of trade with the Finnish partner has been favourable. Since 1993, the mutual trade turnover of the Czech Republic with Finland has increased nearly nine-fold (in EUR terms). Finland occupies the 25th position among the Czech Republic´s most important trade partners. Its key export commodities in trade with Finland are road vehicles, oﬃce machines and automatic data processing equipment, machines and equipment generally used in industry, electrical equipment, devices and appliances, telecommunications equipment, sound recording and reproduction devices, etc. The Czech Republic is also a successful services exporter.

LEGAL BASIS OF CZECHFINNISH TRADE RELATIONS The following treaties and agreements are currently in force in the area of business and trade: l Treaty of Accession of the Czech Republic to the European Union signed in Athens on 16 April 2003

Table No. 2: The most important commodities of Czech exports in 2015* Nomenclature of the Harmonised System 4 Code

Commodity

8703

Motor cars and other motor vehicles principally designed for the transport of persons

22.57

164 032

8471

Automatic data processing machines; units, readers etc.

5.75

41 819

8708

Parts and accessories of motor vehicles for the transport of persons or goods, tractors etc.

4.74

34 444

8473

Parts of typewriter computers and other automatic data processing machines

3.02

21 964

8523

Discs, tapes, other media for recording of sound and other phenomena

2.96

21 526

9503

Tricycles, scooters, pedal cars etc. dolls’ carriages; dolls; other toys

2.80

20 365

8542

Electronic integrated circuits

8517

Electrical apparatus for line telephony or line telephony or line telegraphy

2.43

17 671

8431

Parts for use solely/primarily with machinery

2.11

15 309

50.97

370 375

100.00

726 799

19 294

Others Total * preliminary data

EUR thous.

Source: Ministry of Industry and Trade of the Czech Republic

l Investment Protection and Support Treaty entered into force on 23 October 1991 l Double Taxation Prevention Treaty entered into force on 12 December 1995

DEVELOPMENT OF MUTUAL TRADE Finland is one of the important trade partners of the Czech Republic. In 2015, the mutual trade turnover of these two countries reached EUR

Table No. 1: Development of trade between the CR and Finland in 2005–2015 (EUR thousand) Turnover

Index

Czech Exports

Index

Czech Imports

Index

Balance

2005

636 760

348 377

288 383

59 994

2006

861 051

135.2

436 492

125.3

424 560

147.2

11 932

2007

972 922

113.0

508 653

116.5

464 269

109.4

44 384

2008

1 034 674

106.3

604 118

118.8

430 556

92.7

173 563

2009

774 229

74.8

460 562

76.2

313 667

72.9

146 895

2010

913 205

118.0

572 144

124.2

341 061

108.7

231 083

2011

1 033 157

113.1

663 724

116.0

369 432

108.3

294 292

2012

933 114

90.3

583 466

87.9

349 648

94.6

233 818

2013

896 864

96.1

587 103

100.6

309 762

88.6

277 341

2014

1 072 466

119.6

694 403

118.3

378 063

122.0

316 339

2015*

1 132 993

105.6

744 938

107.3

388 055

102.6

356 883

* preliminary data

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

Source: Ministry of Industry and Trade of the Czech Republic

Table No. 3: The most important commodities of Czech imports 2015* Nomenclature of the Harmonised System 4 Code

Commodity

4810

Paper and paperboard, coated with kaolin etc., coloured, rolled etc.

9.35

33 264

4703

Chemical wood pulp, soda or sulphate, other than dissolving grades

4.87

17 322

4011

New pneumatic tyres, of rubber

4.84

17 195

7219

Flat-rolled products of stainless steel, of a width of 600 mm or more

4.68

16 654

3004

Dosed medicaments (excl. blood, antiserum etc., cotton, bandages etc.)

4.08

14 504

8532

Electrical capacitors, ﬁxed, variable or adjustable (pre-set)

3.21

11 419

7901

Unwrought zinc

2.62

9 322

4804

Uncoated kraft paper and paperboard, in rolls/sheets

2.33

8 271

64.02

227 684

100.00

355 635

Others Total * preliminary data

more than in 2014. The mutual trade balance in the past decade is shown in Table 1.

EUR thous.

Source: Ministry of Industry and Trade of the Czech Republic

1 133 million, 5.6% more than in 2014, the highest value so far. Czech exports also showed the highest value to date, amounting to EUR 744.9 million. Imports from Finland in 2015 reached EUR 388.1 million, 2.6%

STRUCTURE OF MUTUAL TRADE IN 2015 The basis of Czech exports to the Republic of Finland in 2015 is motor cars and motor vehicles for passenger transport. Following this are oﬃce machines and automated data processing equipment. Finnish imports are dominated by paper and pulp. The most important Czech import and export items in 2015 can be found in Tables 2 and 3. Important Czech firms participating in the promotion of Czech-Finnish trade relations include: * ŠKODA AUTO, a.s. ** MORAVIA STEEL, a.s. * KONE, s.r.o. ** MITAS, a.s. * MITTAL STEEL OSTRAVA, a.s. ** ŠKODA POWER, a.s. * POCLAIN BRNO, s.r.o.* MONTEFERRO HRÁDEK, a.s. * VAFO PRAHA, s.r.o.

PROSPECTS OF MUTUAL TRADE The Czech Republic can oﬀer high added value products, such as public transport vehicles and power engineering machines. Based on materials supplied by the Ministry of Industry and Trade of the Czech Republic

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

ECONOMICS

Trade Relations between the CR and Norway Norway is a traditional trade partner of the Czech Republic. It is a country with an economy marked for its great absorption potential. Since 2013, however, the mutual trade between these two countries has been on the decline. In terms of the mutual trade turnover, in 2015 Norway occupied 33rd position on the list of the Czech Republic´s most important trade partners, accounting for a mere 0.3% of its total foreign trade turnover and for 0.4% of its total exports. The year 2015 saw a 15.7% decline in the mutual trade exchange in comparison with 2014. This is mainly due to lower supplies of Norwegian natural gas, the main Czech import commodity, as a result of the milder winter and a decline in the price of this commodity.

LEGISLATIVE BASIS GOVERNING MUTUAL TRADE RELATIONS: The contractual basis regulating mutual trade relations between the Czech Republic and Norway is the EEA Enlargement Agreement, which entered into force on 6 December 2005. Currently, the following main contractual documents concerning the economic sphere are in force: l Agreement between the Czech and Slovak Federal Republic and the Kingdom of Norway on the mutual support and protection of investments, valid as from 6 August 1992 l Agreement between the government of the CR and the government of the Kingdom of Norway on mutual assistance in customs matters, valid as from 8 November 1999

l Agreement between the government of the Czech Republic and the government of the Kingdom of Norway on the prevention of double taxation and the prevention of tax evasion in the area of income tax, valid as from 9 September 2005 l Memorandum of understanding on the implementation of the EEA 2009-2014 financial mechanism between the Czech Republic and Iceland, the Principality of Liechtenstein and the Kingdom of Norway, valid as from 18 June 2011 l Memorandum of understanding on the implementation of the financial mechanism between the Czech Republic and the Kingdom of Norway, valid as from 18 June 2011

MUTUAL BALANCE OF TRADE The balance of trade between the Czech Republic and the Kingdom of Norway has long been unfavourable for the CR as a result of Czech natural gas imports. Natural gas accounted for more than three-quarters of all Czech imports from Norway. After deducting this item, the trade exchange between the Czech Republic and Norway in traditional commodities remains favourable for the CR. In 2014 the balance of trade between these two countries was favourable for the CR, for the first time since 2007. In 2015, Czech exports rose by 6.7% as against 2014. The development of the balance of trade between the Czech Republic and Norway over the past ten years is shown in Table 1.

STRUCTURE OF MUTUAL TRADE EXCHANGE The most important Czech export items are motor cars and motor vehicles for the transport of passengers (24.83% of total Czech exports to Norway). The main Czech export items in 2015 are shown in Table 2. With regard Czech imports, the main item on the list is natural gas, accounting for 41.37% of total Czech imports from Norway, followed by fish (11.38%), aluminium, and ferroalloys. The most important Czech imports from Norway are shown in Table 3.

Turnover

Index

Czech Exports

Index

2005

612 355

227 671

2006

818 176

133.6

320 307

2007

787 790

96.3

2008

1 003 487

2009

Czech Imports

Index

Balance

384 685

-157 014

140.7

497 869

129.4

-177 562

463 800

144.8

323 991

65.1

139 809

127.4

424 096

91.4

579 391

178.8

-155 295

943 721

94.0

415 223

97.9

528 498

91.2

-113 275

2010

1 310 488

138.9

526 279

126.7

784 208

148.4

-257 929

2011

1 573 565

120.1

616 962

117.2

956 603

122.0

-339 641

2012

1 781 766

113.2

636 291

103.1

1 145 475

119.7

-509 184

2013

1 709 984

96.0

625 618

98.3

1 084 366

94.7

-458 747

2014

1 113 375

65.1

588 405

94.1

524 970

48.4

63 436

2015*

939 081

84.3

628 002

106.7

311 089

59.3

306 914 * preliminary data

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

Photo: www.freeimages.com

Table No. 1: Development of trade between the CR and Norway in 2005–2015 (EUR thousand)

Table No. 2: The most important commodities of Czech exports in 2015* Nomenclature of the Harmonised System 4 Code

Commodity

8703

Motor cars and other motor vehicles principally designed for the transport of persons

24.83

155 962

8471

Automatic data processing machines; units, readers etc.

10.98

68 927

9503

Other toys; reduced-size (scale) models and similar recreational models, working or not; puzzles of all kinds

3.36

21 096

7308

Structures and parts of structures, of iron or steel; plates, rods and the like

8418

Refrigerators, freezers and other refrigerating or freezing equipment

3.03

19,054

7304

Tubes, pippes etc., seamless, hollow iron and steel proﬁles

2.81

17 632

9403

Other furniture and parts thereof

2.69

16 879

MUTUAL EXCHANGE OF SERVICES

8517

Electrical apparatus for line telephony or line telegraphy

2.22

13 941

47.05

333 527

100.00

628 002

Increasing interest is shown in services provided within the framework of incoming tourism to the Czech Republic. In the past few years Prague has been repeatedly declared the destination of the year for weekend trips and it maintains great popularity among foreign visitors. The Czech Republic oﬀers sojourns in its spas, combined with comprehensive services of specialised rehabilitation and healthcare facilities (eye and dental care, cosmetic services). Czech Airlines operate direct flights between the Czech Republic and Norway (seasonal flights from Prague to Oslo, Stavanger, and Kristiansand) and Norwegian Air Shuttle all-yearround flights from Prague to Oslo and Bergen. Good prospects exist for Czech IT services in Norway (customised software solutions, graphic work, architectural designs, etc.). The main Czech exporters to Norway include the firms of Škoda Auto Mladá Boleslav, Sandvik Chomutov, Vitana Byšice, Elfe Krnov, Linde Frigera Beroun, Isola Powertekk, Třídič Šternberk, FAB Rychnov nad Kněžnou, JUTA Dvůr Králové nad Labem, Barum Cont. Otrokovice, VSP Data Tábor, and ABB Praha.

Others Total * preliminary data

EUR thous.

19,056

Source: Ministry of Industry and Trade of the Czech Republic

Table No. 3: The most important commodities of Czech imports 2015* Nomenclature of the Harmonised System 4 Code

Commodity

2711

Petroleum gases and other gaseous hydrocarbons liquiﬁed

41.37

126 116

0302

Aluminium, not alloyed, unwrought

11.38

34 695

7601

Unwrought alumimum

7.76

23 661

7202

Ferro-alloys

6.62

20 171

8708

Parts and accessories of motor vehicles for the transport of persons or goods, tractors etc.

4.58

13 958

0304

Fish ﬁllets & other ﬁsh meat (w/n minced), fresh, chilled or frozen

4.55

13 867

8479

Machines & mech appl having indiv func, nes or included in this chapter

2.55

7 764

2804

Hydrogen, rare gases & other non-metals

2.04

6 204

10.15

58 405

100.00

304 841

Others Total * preliminary data

EUR thous.

Source: Ministry of Industry and Trade of the Czech Republic

Based on materials supplied by the Ministry of Industry and Trade of the Czech Republic C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 21

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Trade Relations between the CR and Sweden Relations between the Czech Republic and Sweden are very good at all levels, and the CR is Sweden´s reliable partner not only as regards trade collaboration. The shared positive approach of the CR and Sweden with respect to the continuation of economic liberalisation, finalisation of the reform of the EU internal market and the drafting of a good text of the Transatlantic Trade and Investment Partnership (TTIP), besides a number of common positions within the framework of the EU, constitute a broad base for the further promotion of mutual collaboration. The CR is a country actively involved in the human rights area and development cooperation. In recent times, growing emphasis has been placed on the fulfilment of Agenda 2030 and the adopted sustainable development goals, to which corporate social responsibility on the part of firms is adding momentum.

TRADE RELATIONS Czech-Swedish economic relations have a long tradition and the development of mutual trade and economic relations in the past five years has been showing an upward trend. Sweden is the Czech Republic´s largest Scandinavian trade partner, accounting for approximately 1.5% of the volume of the CR´s foreign trade. In terms of trade turnover, Sweden occupies 17th position on the list of the Czech Republic´s trade partners with a growing potential. In 2015 their mutual trade turnover was worth CZK 88.7 billion (EUR 3.3 billion), a 9.3% increase year-on-year. Czech exports to Sweden in 2015 rose by 11%, to CZK 59.4 billion (EUR 2.2 billion), and imports showed a 5% growth, to CZK 29.2 billion (EUR 1.1 billion), the balance being CZK 30 billion (EUR 1.1 billion) (see Table). From the Swedish point of view, the Czech Republic occupies 24th position among the largest exporting countries and 15th position among importing states. Škoda motor cars are among the most important Czech export items on a long-term basis, accounting for 5% of the market share, followed by automatic data processing equipment, components and spare parts for transport vehicles, furniture, consumer electronics, computer components and printers. Overall, engineering goods and semi-finished products account for approximately 65% of Czech exports. The main Czech import items are tractors and semi-trailers, steel products (tubes and pipes, hollow, seamless sections made of iron/ steel, etc.), metal wire and rods, pharmaceuticals, transport vehicles and spare parts thereof, chemicals, paper and cardboard. Engineering goods and semi-finished products account for about 40% of total Czech imports.

CZECH FIRMS IN SWEDEN In addition to Czech firms, a number of firms having close trade relations with the Czech Republic which import and distribute Czech products, operate in Sweden. The most important of these are

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Mutual trade balance (EUR billion) 2010

2011

2012

2013

2014

2015 1 072.3

Czech imports

881.2

1 013.9

984.2

1 013.9

1 015.8

Czech exports

1 627.6

1 930.0

1 850.9

1 826.2

1 932.4

2 179.1

746.5

916.1

866.6

812.3

916.7

1 106.8

2 508.8

2 944.0

2 835.1

2 840.0

2 948.2

3 251.4

Balance Turnover Source: Czech Statistical Oﬃce

Škoda Sverige (car import and distribution), Linet Sweden AB (hospital beds), AmphoChem (chemical and ceramic products), Beijer Industri AB (steel and iron products), and Scansigma AB (bearings, valves).

SWEDISH INVESTMENTS IN THE CZECH REPUBLIC Sweden is one of the 15 largest foreign investors in the Czech Republic, where some 120 Swedish firms are based. Their investments go mainly into construction and the manufacturing industry. An important recent Swedish-Czech acquisition is the merger of the Czech rubber company, ČSG Holding a.s., with Trelleborg, a Swedish engineering group, which gave rise to a new world leader in the “heavy-duty” tyre market intended for agriculture and other branches of industry.

CZECH INVESTMENTS IN SWEDEN Czech investments in Sweden are less extensive than Swedish investments in the CR. Even so, the Czech investments are not negligible. For example, the Czech firm LINET, which invested in Sweden in 2007, is now a leader in the Swedish market for the supply of hospital beds. The Czech firms, SUBTERRA a.s., FENESTRA WIEDEN s.r.o., and many others are active in the Swedish construction market. 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

GOOD PROSPECTS FOR MUTUAL ECONOMIC RELATIONS Economic relations between the Czech Republic and Sweden have not only a long tradition, but also, and mainly, good prospects for further growth. More opportunities and new challenges for the promotion of business and collaboration in manufacture are opening up in the area of engineering production, where the Czech Republic, like Sweden, has a long tradition and offers bilaterally advantageous cooperation in the manufacture of engineering products and in the search for new technological solutions. This comprises a great potential for collaboration in the manufacture of whole power stations, subdeliveries for the automotive industry, manufacture of building machines, machines for use in forestry, machines used in ship building and off-shore equipment. A number of Czech subcontractors operating in the area of metallurgical production and welded constructions, precision CNC machining and assembly have already found trade partners in Sweden. Constructions and cast iron and steel products (along with weldments, machined components and castings) are among the products most in demand on the part of Swedish company partners. The export potential of the Czech side is far from exhausted and there is a lot it has to offer. An important element in Czech-Swedish relations is trading and production collaboration on a long-term basis in connection with the use of Sweden´s Jas-39 Gripen supersonic aircraft by the Czech Air Force. The extension of the Gripen lease contract opens up opportunities for the 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

promotion of Czech-Swedish production and trade collaboration in the area of security and defence specifically focused on research and innovation. This is supported by the Memorandum of Understanding between the Ministries of Defence of the two countries and the Memorandum of Cooperation between the associations of the defence industries of the Czech Republic and Sweden. The most visible aspect of the current bilateral defence collaboration is the planned “Gripen Hub” regional programme, aimed at strengthening the capacity of training and maintenance and the transfer of experience in the use of JAS-39 Gripen aircraft to other potential users. Another potential area for the promotion of economic cooperation is the building industry, especially as regards the development of the infrastructure and the construction of housing units and administration centres. A number of Czech firms are interested in manufacturing supplies for construction projects in Sweden. The national plan for the development of the transport infrastructure adopted by the Swedish Parliament for the 2014-2025 years, involving investments of some SEK 500 billion, opens up opportunities for Czech-Swedish collaboration, for example, in the areas of electrification, automation and digitalisation of the railway network and the delivery of transport vehicles, such as tramcars. Experienced Czech suppliers can offer construction work, facade making and wiring, as well as building materials for the project. Another equally important sector that could benefit both sides is research in the area of “Life Science”, which is one of the most progressive and innovative economic sectors in both Sweden and the Czech Republic. This is a very suitable area for collaboration between respected universities, university hospitals, research centres and biotechnology firms. The results achieved are based on the close collaboration between the research and business spheres, both bilaterally and internationally. It provides good opportunities for collaboration with Czech centres of excellence (COE), which can offer a suitable research environment for the creation of advanced innovations and new synergic effects. Embassy of the Czech Republic in Stockholm

Photo: ŠKODA AUTO a.s.; Doosan Škoda Power s.r.o. archive

ECONOMICS

Examples of Czech Projects in the Nordic Countries

One of the Czech firms supplying their products to the Nordic countries is Doosan Škoda Power, an important Czech supplier of steam turbines with outputs of from 10 MW to 1200 MW for all applica-

tions, including auxiliaries and modernisation. Its tradition goes back to 1904, when Škoda made its first steam turbine with an output of 420 kW. In 2009, the firm became part of Doosan Group and has become its global research and development centre. Between 1946 and 2000, Doosan Škoda Power installed in the Nordic countries, where steam turbines ceased to be made, turbines with an aggregate output of nearly 1.5 GW. In the past 15 years it put into operation or started the realisation of projects with Škoda turbines with a total output of nearly 2.8 GW. They include mainly steam turbines for industrial or heating purposes – Lund 39 MW, Växjö 39 MW, Vartan KVV8 131 MW and Värö 64 MW in Sweden, Lisbjerg 38 MW in Denmark – and the modernisation or retrofitting of steam turbines in Finland. The promising Nordic market continues to be a challenge for Doosan Škoda Power.

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

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

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 25

BUSINESS

Investment Is One of the Top Priorities for the Czech Government In the ﬁrst half of 2015, CzechInvest Agency helped to negotiate 49 investment projects worth more than CZK 21 billion with foreign and domestic investors. When completed, the projects will provide work for more than 6 500.

Period

Number Investment Number of of projects amount (CZK mil.) new jobs

1st half 2011

15 259.70

6 738

1st half 2012

1 764.63

2 274

1 half 2013

19 478.86

5 098

1st half 2014

116

78 312.20

14 094

1st half 2015

21 018.48

6 507

The Czech Republic oﬀers investors a stable and friendly environment, which motivates both Czech and foreign entrepreneurs to promote their business activities continuously. Currently, the interest of investors focuses on data centres, the aviation industry and shared services. Most of the investments are high added-value projects requiring experience and skill. Here, the Czech Republic still has a great competitive advantage. Among foreign countries, the most active in this respect is, traditionally, Germany, which in the first half of 2015 decided on realising 12 new projects to the aggregate value of 26 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Investment projects mediated by CzechInvest Agency in the ﬁrst half of 2015 by country of origin Country of origin

Number of projects

Investments (CZK million)

Number of new jobs

Austria

780.00

120

China

408.63

387

Czech Republic

2 471.29

555

Denmark

162.50

100

Finland

139.70

France

1 030.34

227

Germany

6 607.64

1 728

Great Britain and Northern Ireland

25.00

Italy

500.00

Japan

466.00

Korea (Republic of )

3 701.00

770

Switzerland

1 740.06

110

Taiwan

1 983.30

1 500

USA

1 003.02

902

CzechInvest – Investment and Business Promotion Agency; www.czechinvest.org

Photo: PhotoCombo (Photomontage)

Investment projects mediated by CzechInvest Agency in the period of 2011–2015

CZK 6.6 billion. Following this is the United States of America with 8 projects and Korea and France with 3 projects each. Sectors with the largest number of projects are car manufacture with 17 new projects worth nearly CZK 10.5 billion, followed by the metal manufacturing and metal working industries with 7 projects

costing nearly CZK 3.5 billion and information and communication technologies with 4 projects. At the regional level, most investors were attracted by the Ă&#x161;stĂ nad Labem Region, where 10 new projects will be realised for approximately CZK 5 billion, which will create 1 259 jobs. Second in line is

Investment projects mediated by CzechInvest Agency in the ďŹ rst half of 2015 by sector Sector

Number of projects

Advanced materials and nanotechnology

Aviation Electrical equipment

Investments (CZK millions)

Number of new jobs

0.00

244.79

300

2 100.01

600

Electronics

2 480.03

1 860

Engineering

987.50

130

ICT

45.60

133

Manufacture of motor vehicles

8 534.59

2 276

Metal manufacturing and metal working

5 090.16

726

Non-metal mineral products

746.40

Other

180.00

115

Paper and woodworking industry

226.00

Plastic industry

370.00

Services

13.40

260

CzechInvest â&#x20AC;&#x201C; Investment and Business Promotion Agency; www.czechinvest.org

the PlzeĹ&#x2C6; Region with 6 new projects worth CZK 2.5 billion and 859 new jobs. The largest investment project in the first half of 2015 is the expansion of INA LanĹĄkroun, s.r.o., which will invest CZK 2.5 billion to expand its operations that will provide employment to 900 people. The second largest investment project is that by RONAL CR s.r.o., which is planning to invest CZK 1.7 in its expansion, creating 110 new jobs. Investment is one of the top priorities of the Czech Government. That is why it gives special support to economic diplomacy. Czech Government representatives undertake numerous foreign trips and business missions and receive foreign delegations, which could become the basis for future investment. In the autumn of 2015, Bank of China opened its aďŹ&#x192;liation in the Czech Republic. This will greatly facilitate the entry of Chinese investors in the Czech market and at the same time bring interesting investment projects into the country.

CzechInvest Investment and Business Promotion Agency www.czechinvest.org Note: EUR 1 = CZK 27.051 (average exchange rate ďŹ xed by the Czech National Bank in March 2016)

STRIAGRAPH â&#x20AC;&#x201C; STRIATTER 1000TM state-of-the-art appliance for imaging and recording imperfections in glass Striatter 1000 striagraph is a device that automatically provides a striagram of a glass sample. A striagram is a record of streaks, bubbles and other inhomogeneities in the thickness of glass scanned along the sample. It is not necessary to darken the room to evaluate the sample. Striatter 1000 is designed for glass samples with a thickness of 2 to 12 mm and a width of up to 25 mm. The striagram of the whole width of the produced strip of glass (up to 8000 mm) is completed by the gradual measurement of several samples of glass of a maximum length of 1000 mm. The glass sample is inserted in a glass container filled with immersion fluid at the top of the striagraph. The operator enters data about the test and the sample in the computer and then runs the automatic evaluation. The optical system moves along the measured sample and individual shots are recorded. After the scanning has been completed, the data are automatically evaluated, individual images are compiled and the test protocol is created. NEWTE spol. s r. o., -DWHĂžQt 7HSOLFH &]HFK 5HSXEOLF 7HO )D[ ( PDLO QHZWH#QHZWH F] www.newte.eu

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 27

BUSINESS

Trading Companies in the CR

DIFFERENT TYPES OF TRADING COMPANIES The legal regulation of trading companies within the Czech legal system is comprised specifically in the following legislative acts: Trading Corporations Act, Civil Code and Act on Public Registers of Juristic and Natural Persons. The Trading Corporations Act regulates the diﬀerent types of trading companies in the CR, which include the unlimited liability company and the limited partnership company (personal companies), the limited liability company and the joint-stock company (capital companies), plus the European company and the European Economic Association. The most widely used forms of trading companies in the CR are the limited liability company and the joint-stock company. Similar types of trading companies also exist in Sweden, Norway, Denmark, and Finland. In Denmark, as in the CR, the most widely used types of trading companies are the limited liability company and the joint-stock company. In Sweden, the most widely used form is the joint-stock company.

PERSONAL COMPANIES The unlimited liability company is a company of at least two persons, who participate in its business activities or the administration of its assets and are liable for its debts jointly and severally. The limited partnership company is a company in which at least one partner has limited liability for its debts (limited partner) and at least one partner has unlimited liability (general partner).

CAPITAL COMPANIES Limited liability company (specified here below) Joint-stock company (specified here below)

FOUNDING AND ESTABLISHING TRADING COMPANIES In the Czech Republic, trading companies are founded on the basis of a Memorandum of Association. The Memorandum of Association, on the basis of which the limited liability company and the joint-stock company are founded, must have the form of a public instrument, i.e. it must be drafted as a notarial deed. In addition, in the case of the joint-stock company, the adoption of Articles of Association is required. In the case of a sole person establishing a com28 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

pany, that company must be founded on the basis of the foundation deed and must have the form of a public instrument. The actual establishment of a Czech trading company is conditioned by the company´s being entered in the Company Register (constitutive registration). The authority to decide on entry is the locally appropriate Regional Court according to the location of the company´s registered address. In Norway, companies are registered by the Norwegian Registration Centre. To shorten the registration process and to save public funds in the area of justice, a direct entry in the Company Register through a notary is permitted in some cases, provided all the required documents needed for registration have been submitted to the notary. However, only a notary who has himself drafted all the documents needed may make the entry. In any case, this is only a facultative possibility and the founders can always apply to the locally appropriate Commercial Court in charge of the Company Register. The Company Register is one of the public registers regulated by the Act on Public Registers of Juristic and Natural Persons. This is a public administration system operated in electronic form and administered by the appropriate court (the appropriate Regional Court) according to the company´s registered address. The Register comprises the most important information about the trading companies (name of the company, its registered address, names of the members of the company´s statutory bodies and their number, the amount of contributions, registered capital, etc.) and other data stipulated by the Act on Public Registers of Juristic and Natural Persons. Information about trading companies is also available on the websites http://portal.justice.cz/Justice2/Uvod/uvod.aspx (where documents supplied by the companies to the Company Register can be found in electronic form), or at www.obchodnirejstrik.cz. In Denmark, the Company Register is administered by the Danish Agency for Trade and Companies. In the CR, petitions for entry in the Company Register must be filed electronically on special forms available at https://or.justice.cz/ias/ui/podani. The petition for entry must be supported with documents confirming the facts to be entered in the Company Register and documents to be filed in the collection of

Photo: www.sxc.hu (Photomontage)

The purpose of this article is to give an outline of Czech legislation concerning trading companies in context with the corresponding legal regulations in Sweden, Norway, Denmark, and Finland. We mention the diﬀerent forms of trading companies in the Czech Republic, their deﬁnitions and basic features. We also explain the procedure of founding and establishing trading companies in the CR.

documents in connection with this entry (especially the founding documents – Foundation Deed, Articles of Association or company statutes, documents proving the subject of the company´s business, documents on the payment of the investment. e.g. a statement by the investment administrator confirming that the investment was paid down, documents stating the company´s registered address, etc.). The petition for entry in the Company Register must be filed at the latest within six months of the founding of the company. An essential condition for entry in the Company Register is the payment of a court fee to the amount of CZK 12 000 (approximately EUR 444) in the case of a joint-stock company and CZK 6 000 (approx. EUR 222) in the case of all other trading companies. In the case of the company being entered in the Company Register through the intermediary of a notary, after all the above-mentioned terms and conditions have been met, the court fee is lower, for example, in the case of a limited liability company the court fee is CZK 2 700 (approx. EUR 100).

LIMITED LIABILITY COMPANY This form of trading company is the most widely used in the CR. It can be defined as a company whose partners are liable for the company´s debts jointly and severally to the amount to which they failed to meet their contribution obligations to the level stated in the Company Register at the time when they were called upon by the creditor to pay. A limited liability company may be founded by a sole founder, while the maximum number of founders (partners) is not limited by law. The share of a partner in a Czech limited liability company is determined by the ratio of his contribution to his share of the company´s registered capital, unless otherwise provided for by the Memorandum of Association. The Memorandum of Association may admit the existence of different kinds of shares, where the partner may own more shares, even of a diﬀerent kind (provided it is permitted by the Memorandum). The minimum amount of contribution, i.e. the pecuniary expression of the value of the object of contribution to the registered capital is CZK 1 (approximately EUR 0.04), unless the Memorandum provides for a higher amount of the contribution. This means that the registered capital of a Czech limited liability company may be only CZK 1 (approx. EUR 0.04). A partner in a Czech limited liability company must meet his/her obligation to pay down his/her contribution within a time limit determined by the Memorandum, but not later than within five years of the establishment of the company. The partner may not be exempt from their obligation to make the contribution, except in the case of the company reducing its registered capital. The General Meeting may expel a partner who is in delay with the fulfilment of his/her obligation

to pay the contribution. The registered capital of a Danish limited liability company must be paid down at the latest at the moment when the company is founded. The obligatory bodies of Czech limited liability companies are the General Meeting and the Company Secretary or Secretaries. Besides these obligatory bodies, the company may also set up a Supervisory Board.

JOINTSTOCK COMPANY A Czech joint-stock company is defined as a company whose registered capital is divided into a certain number of shares. The registered capital of a Czech joint-stock company is denominated in Czech crowns. In the case of a joint-stock company keeping its accounts in euros under special legislation, it may express its registered capital in euros. Its minimum registered capital must be at least CZK 2 000 000 (approx. EUR 73 978) or EUR 80 000. To found a company, the partners must adopt the company Articles of Association. The founding of the company becomes eﬀective after each founder has paid the share premium, and in sum at least 30% of the nominal or account value of the subscribed shares within a time limit stipulated in the Articles, in the account of the bank stated in the Articles, but not later than the petition for the company´s entry in the Company Register has been filed. In the CR, a joint-stock company may be founded even by a sole founder. A jointstock company is founded without a public oﬀer of shares, which means that it is founded only by the investments of the founders who will subscribe for all shares. Swedish legislation only distinguishes between the private jointstock company with non-negotiable shares and the public joint-stock company with negotiable shares. The Trading Corporations Act makes it possible for the founders of a Czech joint-stock company to choose between the dualistic and monistic structure. In the framework of the dualistic structure, the company sets up the Board of Directors and the Supervisory Board in addition to the General Meeting. In the framework of the monistic structure, the company, instead of those two bodies, sets up only the Board of Directors with a statutory Director; in this case, the Board of Directors may consist of only one member. This means that in practice it may happen that the only member of the Board of Directors will simultaneously be the company´s statutory Director. The bodies of the Russian joint-stock company are the General Meeting of shareholders and the executive body (collegial or monocratic).

Law Office Hartmann, Jelínek, Fráňa a partneři, s.r.o. www.hjf.cz Note: EUR 1 = CZK 27.035 (according to the CNB exchange rate on 23 March 2016-03-30) 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 29

ENERGO CHOCEŇ, s.r.o. is a company with a nearly 100year history — Czech manufacturer and supplier of cooling equipment, as well as specialist in pressure vessels, heat exchangers, reconstruc on of cooling systems, heat pumps.

ACTIVITIES: DESIGN AND CONSTRUCTION PRODUCTION OF COOLING EQUIPMENT PRODUCTION OF COMPRESSOR UNITS PRODUCTION OF PRESSURE EQUIPMENT SUPPLIES OF TECHNOLOGICAL COOLING UNITS INDUSTRIES – FOOD, CHEMICAL, PHARMACEUTICAL ICE RINKS SERVICE AND REPAIR ACTIVITIES Company products are supplied in the form of units sold or in general supplies of the en re technological complex. The ENERGO CHOCEŇ, s.r.o. company is cer ﬁed by Quality Management ISO 9001 and TÜV, DET NORSKE VERITAS, BUREAU VERITAS, LLOYD’S REGISTER EMEA and more. The pressure vessels are designed and manufactured according to ČSN 690010, ASME, TRTS 010/2011, TRTS 032/2013 and more. Due to the highquality produc on of our company and the knowledge of inspec ons by independent cer fying authori es, the share of export has recently steadied at about 75 % of total company produc on on average. The main foreign customers are companies from the EU and CIS countries.

ENERGO CHOCEŇ, s.r.o Nádražní 631, 565 01 Choceň Česká republika T +420 465 796 111 F +420 465 796 444 E info@energochocen.cz www.energochocen.cz

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

Photo: www.sxc.hu

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/EUR 3 697 (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 ac-

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

counts kept according to Czech national accounting 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/EUR 36 967 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.

Zdeněk Hrdlička Ministry of Finance www.mfcr.cz Note: EUR 1 = CZK 27.051 (average exchange rate announced by the Czech National Bank in March 2016) C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 31

KEY SECTORS

Czech Engineering – Tradition and Future Engineering is an industry of key importance to the Czech Republic, especially as regards GDP creation, the balance of trade and employment. Competitive engineering is an object of interest to foreign investors, and the support of research and development is therefore of decisive importance for maintaining and raising its standards. In the Czech Republic, this sector comprises the manufacture of a wide range of machines, including parts and accessories, which find their use in most branches of the manufacturing industry and other sectors, such as agriculture, transport, forestry, metal manufacture, metallurgy, mining, the textile, paper and food industries and construction. In 2014, the export of machinery and transport equipment (SITC 7) amounted to more than EUR 72 billion, which accounts for 55% of the Czech Republic´s total annual exports.

TRADITION

CURRENT SITUATION In the framework of the manufacturing industry and the entire Czech economy, engineering has been growing steadily, with the exception of the year 2009, when, owing to the global economic crisis, exports in the sector declined by nearly 20%. Already in 2010, however, the

Export of machinery and transport equipment (SITC 7) Period

Stat. value EUR (thous.) Stat. value (%)

2010

54 750 070

126.2

2011

64 089 822

117.1

2012

66 173 944

103.3

2013

65 829 454

99.5

2014

72 548 796

110.2

2015

78 998 978

108.9

Source: Czech Statistical Oﬃce

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

market showed a revival and the value of machinery and transport equipment exports rose to EUR 54.8 billion, a 126.2% growth index (year-on-year). This trend continued in the following years. In 2015, exports were worth EUR 79 billion. Engineering, as most of the other branches of the Czech manufacturing industry, is an export-oriented sector, which has been showing a favourable balance of trade for more than 10 years (EUR 21.6 billion in 2015). As regards the territorial structure of foreign trade, the unequivocally largest trade partner of the Czech Republic is Germany, followed by the UK, France, Slovakia, Poland, and Spain. In addition, 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).

FUTURE PROSPECTS A characteristic feature of the engineering industry is its relatively high sensitivity to the economic cycle. The state of the Czech economy, the same as that of our largest foreign trade partners, is a factor that directly aﬀects demand. Although Czech engineering has extricated itself from the consequences of the global crisis relatively quickly, it is continuously striving to orientate its manufacture towards higher added-value products based on new knowledge deriving from engineering research and new patents, often coming into being thanks to foreign investment enabling research and development institutions in the Czech Republic to set up new workplaces.

Photo: PhotoCombo

Engineering in the Czech Republic is continuing the long tradition, when in the period between the two world wars Czechoslovakia belonged among the world´s most advanced engineering countries. Over the more than 150 years, a large number of radical changes has taken place in this area, both as regards the standards of technological safety and the structure of production, and the entrepreneurial base. The essential change took place after 1989, when engineering companies were faced with the loss of their traditional markets, keen competition from foreign firms (with strong capital backing and know-how) entering the Czech market and also changes in the ownership structure.

GDK - Extrusion blow moulding machine producer since 1992 Based in Czech Republic, country with long time tradition in mechanical engineering Exporting worldwide (Europe – UK, Netherlands, Germany, Austria, Italy, Greece, Poland, Russia, Romania; America – Puerto Rico, Chile, Peru, Suriname, Uruguay, Africa – Tunisia) Blow moulded products are used in following industrial areas: cosmetics, chemicals, food packaging, pharmaceutical, automotive and others

GDK machine design highlights: t Custom Made t Compact performance t Low energy consumption t Easy maintanence t Servoelectric drives used t Horizontal shuttle movement t Wide machine range – product sizes from 5 ml up to 30 liters t Top class components used (SMC, Exlar, OMRON, Nord, Sankyo Oilless Industry, Ziehl – Abegg, Wittmann, Jumo, Dynisco, Eaton, Murr etc.)

Come and see us on the plastics industry tradeshow PlasTec on 20–22 September 2016 in Messukeskus, Expo and Convention Centre Helsinki GDK spol. s r.o., Czech Republic, 362 14 Kolová 181, e-mail: gdk@gdk.cz, www.gdk.cz

Czech Automotive Industry Stepping up Its Dynamics The key sector of the economy of the Czech Republic, which has a favourable eﬀect on the country´s balance of exports, is the automotive industry. It builds not only upon a valuable tradition, but also the favour of foreign investors, who have contributed considerable resources to the development of production in recent years. Over 85% of the total motor vehicle production goes to exports from the manufacturing plants in the Czech Republic every year. 2014, when the highest ever production of vehicles was achieved in the Czech Republic, has been noted as a record year to date. This was reflected in the excellent financial results of the manufacturers themselves as well as of their suppliers. For the first time, the level of CZK 850 billion (EUR 31.5 billion) was exceeded in earnings from industrial activity, and in export it was CZK 700 billion (EUR 25.9 billion).

RECORDS AND THE 13TH PLACE IN THE WORLD The automotive industry under Czech conditions is a dynamically developing sector, which is also documented by the results of the first half of 2015, when the manufacture of motor vehicles had a rising tendency as compared with the previous year. In the 1st half of 2015, Czech automotive manufacturers produced 690 302 vehicles, 676 775 of them motor vehicles (6% increase compared with 2014) and 13 527 trailers (9% more as against 2014). These are figures of the Czech Automotive Industry Association. Thus, it can be assumed that the year 2015 will surpass last year´s record output of 1.245 million passenger cars, which ranked the Czech Republic 13th in the world and 2nd in the number of cars manufactured per the number of inhabitants. In the manufacture of buses, the Czech Republic even ranks top in the world in per capita terms.

CARS FROM THREE MANUFACTURERS In the passenger car category, 673 241 vehicles were manufactured in the six months of 2015, which was an increase of 6% compared with the first half of the year before. The relatively highest production growth, compared with the same period of 2014, was recorded in the 1st half of 2015 by the TPCA Czech Company (38% growth). The share of Škoda Auto in the Czech car manufacture of the 1st half of 2015 amounted to 58% (it was 59% in the whole of 2014). The HMMC Nošovice Company recorded 24% (24% in the preceding year) and the share of TPCA Kolín was 17% (16% in 2014). The domestic sale of the manufactured cars increased by 20% and the total export rose by 7%.

Photo: ŠKODA AUTO a.s.

BUSES AND TRUCKS The success of the Czech automotive industry is also documented by other figures. In the 1st half of 2015, a total of 2 196 buses were produced in the Czech Republic, an increase of 33% over the same period of 2014. The main manufacturers are the companies of IVECO Czech Republic (83% share in total production) and SOR Libchavy (15% share). Both companies have recorded growths in their outputs. The domestic sale of the manufactured buses soared by 115% and export rose by 47%.

Truck manufacturing in the Czech Republic is represented by the Tatra Trucks Company, where 406 vehicles rolled off its production line in the first half of 2015. This was an increase of 20% over the same period of 2014. On the other hand, the export of trucks of the Tatra brand decreased slightly compared with the same period of 2014 (by 5%, which amounts to 16 vehicles), but domestic sales rose by 81% (61 vehicles). The above data show that the Czech automotive industry is in an excellent condition and offers numerous business opportunities – e.g. in the related supply sector, where the manufacturers of various parts and components for motor vehicle makers can have a role to play. The second area determining the future competitiveness of the Czech automotive industry is research, development and innovation. Gratifyingly, it is in this area where both the number of research and development centres, as well as the number of specialist staff, have been increasing. Note: EUR 1 = CZK 27.026 (average exchange rate announced by the Czech National Bank in January 2016) 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

The Czech Republic – a Strong Player in the EU Energy Market Thanks to its energy mix, the Czech Republic is one of the EU member states the least dependent on the import of energy raw materials. A large part of its energy production is based on its own solid fuel resources (mainly coal, some of which is exported) and the production of nuclear power stations.

imports energy raw materials, such as natural gas and crude oil, but that it also itself exports a strategic commodity, which, in addition, has a certain added value when compared with the raw materials.

MARKET REGULATION

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

THE LARGEST PLAYERS IN THE MARKET The main electricity-generating company in the Czech Republic is ČEZ, a.s. (approximately 75%). In addition, there are more than 100 independent producers. Besides coal-fired power plants, there are two nuclear power stations in the Czech Republic – Temelín and Dukovany – plus hydroelectric, solar, wind, and biomass incineration power plants.

STATE ENERGY CONCEPT The State Energy Concept approved in 2015 sets out the Czech Republic´s long-term energy vision and the country’s strategic aims in the area of power generation. It describes the current situation and expected trends in the Czech energy sector within the context of the EU and the regions and identifies the mechanisms of ensuring the country’s energy safety and the interest in maintaining its current full independence as regards heat and electricity supplies, but without any significant export of home-generated electricity. This can only be achieved with the further development of nuclear power generation in the Czech Republic. The State Energy Concept has undergone a comprehensive analysis of its potential impacts on the environment, while taking into account all requirements and conditions resulting from the analysis and presumable eﬀects arising from the realisation of the priorities and aims of the Concept.

Photo: PhotoCombo

Thanks to its own solid fuel resources, the Czech Republic only imports crude oil and natural gas, on which, however, it is highly dependent. Therefore, the basis for its electricity supplies is nuclear and coal-burning power plants, heating plants, big hydroelectric power stations, and works power plants. This mix is complemented with renewable sources, mainly wind and photovoltaic power stations and biomass burning sources, plus biogas. The greatest increase in recent years was witnessed in the area of photovoltaic sources. Thanks to the system of support and the price of the technology, sources with an aggregate capacity of nearly 2 GW were installed in 2009 and 2010. The latest figures acknowledge the position of the Czech Republic as one of the largest European and even world electricity exporters. In 2014, for example, the Czech Republic´s net export, i.e. the diﬀerence between export and import, amounted to 16.9 terawatt hours. In financial terms, energy export in 2014 dropped by nearly 80% year-on-year. The largest importers of Czech electricity on a long-term basis are Austria, Germany, and Slovakia. From the macroeconomic point of view, it is an advantage that the Czech Republic has another important export article, in addition to cars, electronics, and engineering goods. From the energy safety point of view, the important thing is that the Czech Republic not only

On the territory of the Czech Republic, the electricity market is operated on the basis of regulated access to the transmission system, the distribution systems, and the possibility of building electricity-generating plants and direct power lines. Electricity transmission and distribution prices and system services prices, electricity prices for protected customers and the electricity suppliers’ prices are regulated by an independent energy market regulator, the Energy Regulatory Oﬃce. One of its competencies is the support of economic competition and the protection of consumer interests in those areas of the power sectors where no competition is possible, with the aim of satisfying all requests for power supply. The Oﬃce decides on awarding, changing, or withdrawing licences and on price regulation under special legal rules.

RETOS – YOUR PARTNER FOR HORIZONTAL BORING MILLS Production, Overhauls, Modernization, Spare Parts

NEWS: Lately, we have expanded our portfolio of new machines. We have already been oﬀering new ﬂoor-type and table-type boring mills. Now, we have developed a horizontal T-type boring mill – the WHX10CNC.

WHX10CNC

BASIC VERSION: Spindle speed range: 3000 rpm Clamping plate surface: 1250 x 1250 mm Table loading capacity: 8000 kg Travel: X = 2000 mm, Y = 2000 mm, Z = 1250 mm, V = 650 mm One boring mill oﬀering so many advantages and options! • Maximum variability of design – unit principle • Rolling guideways for all axes • Choose travel range of basic axes – X, Y, Z • Design with headstock or ram • Choose size and number of clamping plates and mounting tables • Choose from a wide range of technological accessories • Choose level of convenience and safety: from protective control cover to fully enclosed design • Possibility of workpiece measurement directly on the machine using a spindle encoder, or independently on a second mounting table during machining • Possibility of anchoring on smooth surfaces by using adjustable underlays • Small installation space thanks to design optimization

For further details see NEW MACHINES at www.retos.cz RETOS VARNSDORF s.r.o.

Contacts: Address: RETOS VARNSDORF s.r.o. Žitavská 913, 407 47 Varnsdorf, Czech Republic E-mail: info@retos.cz Tel.: +420 413 039 105 (Commercial Director Ing. Irena Rumlenová) Tel.: +420 413 039 103 (Company Director Ing. Jan Müller)

www.retos.cz

Our company covers a complete portfolio of services associated with the operation of horizontal boring mills in machinery production. Our portfolio ranges from the delivery of new (RETOS VARNSDORF s.r.o.) or recycled (TOS VARNSDORF s.r.o.) machine overhauls, partial or medium repairs, to consultancy and customer service, to delivery of spare parts, accessories, and the accompanying manuals. RETOS VARNSDORF s.r.o. is a certified ISO 9001 and ISO 14001 company and focuses especially on domestic, West European, and Russian markets. Additionally, we are also present in Canada, the USA, and Australia.

Management System ISO 9001:2008 ISO 14001:2004 www.tuv.com ID 0910095330

KEY SECTORS

Czech Manufacturers of Agricultural Machinery Are Doing Well In the past, agricultural machines used to be important Czech export articles. Then the times came when Czech manufacturers were pushed out of many markets by keen international competition. In spite of that, however, their sophisticated production has not disappeared from Czech factories and their products are currently gaining ground anew. Firms are coming forward with new models of high quality and their prices are competitive even in international trade.

FOREIGN TRADE Czech firms are becoming increasingly involved in international trade. Until 2008, machinery 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

STRENGTHS OF THE SECTOR, TRENDS AND EXPECTATIONS The relative advantage of Czech agro-engineering is the structure of the manufacturing firms: in most cases, they are small and medium-sized enterprises that are capable of reacting flexibly to demand and are in a position to prepare machines precisely to meet customer needs and requirements even in serial production.

Photo: Zetor archives

There are about 100 manufacturers of agricultural and forestry machines in the Czech Republic. According to the estimates of the Agricultural and Forestry Machinery Association (A.ZeT), they employ some 10 000 people, about the number employed by the sector some 20 years ago. In 2014, the manufacturers sold 2 453 tractors in comparison with 2 304 in the preceding year, a 6.5% increase, according to the Association of Agricultural and Forestry Machinery Exporters and the Agricultural and Forestry Machinery Association; in the same period, they sold 166 combine harvesters in comparison with 175 in the preceding year, a 5.1% decrease year-onyear. The fact is that, in 2009 and 2010, sales in general showed a massive decline, so that the 2014 figures are roughly at the 2006 level.

imports increased at practically the same rate as Czech manufacturers were placing their products on foreign markets. In 2009 and 2010, both domestic and foreign sales dropped by approximately 30% in comparison with the preceding year. Currently, exports and imports are at about the same level, according to the latest A.ZeT figures, amounting to approx. CZK 15 billion (approx. EUR 555 million). In export, an important role is played by Zetor tractors. The firm of Zetor Tractors a.s. exports some 86% of its output, with the rest being sold in the Czech Republic and Slovakia. Other important exporters are Farmet in Česká Skalice near Náchod, which manufactures and exports soil processing machines (cultivators, compactors, harrows), Bednar FMT Praha, OPaLL Agri Dolní Životice, and SMS CZ Rokycany. Among other firms, the most successful are AGRIO Křemže, known for its sprayers, and ZDT Nové Veselí, exporting trailers and semi-trailers. Other export articles include mowing machines, front-end loaders, manure spreaders, and a variety of small agricultural machines and tools. The manufacture of special machinery is also successful, such as stump cutters and oleaginous seed-processing machines. In the stable machinery category, special mention should be made of FARMTEC Jistebnice, Bauer Technics Tábor, and AGE České Meziříčí. An important factor of domestic and foreign trade is the presentation of Czech manufacturers at important European trade fairs. The most important such events in the past two decades have been the combined international TECHAGRO / SILVA REGINA / ANIMAL VETEX / BIOMASS trade fairs in Brno, which have built up exceptional international renown for themselves. Within the European context, they are placed right after the two most important events in the agriculture/forestry sector— the SIMA Paris and AGRITECHNICA Hannover trade fairs. In the past few years, TECHAGRO has been the most successful project of all the trade fairs ever organised in the Czech Republic. For example, in 2014, it hosted 743 exhibitors, who occupied more than 83 000 sq. m of exhibition ground. The turnout was nearly 120 000 visitors.

Foreign Trade – Manufacture of Forestry and Agricultural Machines (in CZK million) 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2014 2015 export

import

ﬁgures in CZK million, EUR 1 = CZK 27 March 2016

Source: Ministry of Industry and Trade of the Czech Republic

It is extremely complicated to make a trustworthy prediction for the future period. The crisis did not only mean fewer orders, but also a crisis in making economic predictions. Naturally, a revival might occur, but a downswing is also a possibility. The Czech economy is small and open and practically dependent on exports. Of course, we would be glad if the development we witnessed in recent years continued and the information proved true from the banking sector that the interest of farmers to invest is growing and that machinery purchases continue to increase steadily. Agriculture, however, is a sector strongly dependent on political decisions at both the national and EU levels. As regards domestic deci-

sions, this concerns, among others, the decision whether or not to cancel preferential cheaper oil prices for farmers or to introduce taxation on still wines. Proper competition is also being upset by the policy of market chains, on which farmers are inappropriately dependent due to current legislation. A controversial issue dividing EU member states is the financing of the common agricultural policy, which upsets free competition by unbalanced and unjust interventions and grants and demotivates hundreds of Czech farmers from cattle and pig rearing and growing cereals, fruit and vegetables — areas in which Czech agriculture is competitive. In view of the diﬀerent approaches, the question is to what extent it will be possible to push through changes to reduce the total volume of funds spent on the common agricultural policy, give greater support to rural development and the improvement of the quality of life in the countryside, while reducing production subsidies, limiting regulation in the sector and eliminating asymmetrical solutions that are putting some member states (including the Czech Republic) at a disadvantage.

Dušan Benža Director of the Agricultural and Forestry Machinery Association A.ZeT Secretariat

The development and production of mining complexes and technological equipment for customers from Russia, Vietnam, Spain, and Ukraine

Non-mining custom production of technological complexes for customers from Germany, Italy, and the Czech Republic

www. tmachinery.cz/en Batovka 1285, 696 02 Ratíškovice, Czech Republic, obchod@tmachinery.cz, tel. +420 518 391 510 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

ŠROUBÁRNA KYJOV

is a traditional manufacturer of fastening material using the hot forming technology. Its production programme comprises products for railway, construction, engineering, and the automotive industry. Its core business is the manufacture of fastening material for the rail superstructure – sleeper screws, hook bolt and nuts, as well as construction screws and customer speciﬁcation parts for special uses. As regards the automotive industry, the company produces bearing ring and cam forgings for combustion engines, with the use of CNC machining.

Šroubárna Kyjov focuses mostly on foreign markets, to which it exports more than 80% of its output in terms of the company´s revenues. It is certified by the Lloyd´s Register Quality Assurance according to the ISO 9001, ISO 14001, and ISO/TS 16949. The firm is a holder of a DB AG (German Railways) product certificate. Many of its products are homologated also by other European railways, such as ÖBB (Austria), SBB (Switzerland), NETWORK RAIL (Great Britain) and RENFE (Spain).

ŠROUBÁRNA KYJOV IS A MEMBER OF THE TŘINECKÉ ŽELEZÁRNY – MORAVIA STEEL GROUP.

Šroubárna Kyjov, spol. s r.o. Jiráskova 987, 697 32 Kyjov, Czech Republic Phone: +420 518 604 471 sales@sroubk.cz

www.sroubk.cz

Nanotechnologies Entering 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.

INVESTORS AND THEIR NEED TO EXPORT 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 the new scientific development. 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.

Photo: www.sxc.hu

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 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.

NANOTECHNOLOGY TRIGGERS OFF A REVOLUTION IN MEDICINE A real breakthrough is the use of nanotechnologies in medicine, where thus far unheard of possibilities have been 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. 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 41

KEY SECTORS

The Czech Republic, an 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.

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 position, favourable climate, various tourist attractions as well as the high quality of services provided in the congress facilities are factors making Prague an attractive destination. The city oﬀers modern hotels with an extensive choice of conference premises, including stateof-the-art facilities. The 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 lowcost air carriers.

SPA SELECTION Another important segment of tourism is the spa industry. The Bohemian and Moravian regions are especially rich in mineral water 42 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

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 territory 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 Prague, in what is known as the West Bohemian Spa Triangle near Karlovy Vary, and in Northern Moravia.

Photo: CzechTourism (David Marvan)

During the first half of 2015, a total of 12.4 million foreign visitors came to the Czech Republic, 9.5% more than in the previous year. The earnings of the Czech economy from tourism amounted to CZK 69.5 billion (EUR 2.6 billion) in the first half of 2015. This, again, was a year-on-year increase – of 5%. The figures are provided by the balance of payment statistics of the Czech National Bank. The main reasons for tourists to visit the Czech Republic are holidays (65%), business meetings (16%), or visits to relatives and friends (12%). In the first half of 2015, the development of tourism was also favourably influenced by other factors, mainly major sporting and cultural events which have an eﬀect on tourism at the venues where they are held. At present, tourism in the Czech Republic accounts for 3% of the gross domestic product and employs over 230 000 people.

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 won world renown and become the country´s important health and economic commodity. The use of natural healing sources, baths, mineral waters and spa treatments 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.

Dr. Müller Pharma, s.r.o. CONTRACT MANUFACTURING OF PHARMACEUTICAL PRODUCTS PRIVATE LABEL PRODUCTION FOR PHARMACY CHAINS OR TRADERS GMP certificate for Human medicinal products • non-sterile semi-solid dosage forms • suppositories and vaginal glubules • medicinal lozenges (hard boiled ) • primary and secondary packaging of tablets, capsules (hard and soft) and packaging of semi-solid forms • chemical and physical quality control testing Medical devices • oral/nasal sprays • vaginal gels • lubricants

Food supplemets • herbal syrups • solutions • sport/nutritional dietary supplements • lozenges (with sugar or sugar free) • granules Cosmetics • oil in water, water in oil (emulsions, creams, ointments, skin tonic) • gels • products based on surfaceactive substances and tonics • liquids/solutions

is the largest manufacturer of medicinal products, medical devices cosmetics and food supplements in the Czech Republic. We are a family firm founded in 1995, currently with 130 employees and affiliated companies in Slovakia, Poland and Great Britain. Its two manifacturing and storing facilities in Hradec Králové occupy an area of 14 000 sq. m. We offer contract manufacture of Medicinal products, medical devices, food supplements and cosmetics, and the private label development of whole product series for pharmacy chains. We are looking for trade partners for the distribution of our products under the Dr. Müller Pharma trademark.

Dr. Müller Pharma s.r.o. U Mostku 182, 503 41 Hradec Králové Czech Republic (EU) e-mail: info@muller-pharma.cz www.muller-pharma.eu

INSTITUTIONS

Institutions Present Themselves

CONFEDERATION OF INDUSTRY OF THE CZECH REPUBLIC The largest alliance of employers in the Czech Republic, which represents the predominant part of industry and transport, groups together 28 sector federations and a total of 1550 member companies having more than 800 000 employees. Its mission is to defend the shared interests of its members and influence the economic and social policy of the government, with the aim of creating optimum conditions for business which, while respecting the ethical principles of enterprise, will help to increase the competitiveness of members and lead to the sustainable prosperity of Czech society. Its priorities include balanced public finances, efficient and cost-effective public administration, motivating and simple taxes, research, development and innovation at a top level, modern technical education, flexible labour market, development of transport and infrastructure, efficient support for export, a safe, reliable and accessible power supply, and sustainable care of the environment. It expresses and promotes its comments on legislative issues. It defends and coordinates the interests of its members especially in the Council for Economic and Social Agreement, which is a platform for negotiations between the government, employers, and trade unions on basic political, economic, and social themes. It organises activities for the establishment of trade and economic relations between Czech and foreign entities, in the form of business missions, conferences, bilateral and multilateral negotiations, and participation of its members in trade fairs, exhibitions, and expert seminars. The Confederation formulates and promotes the interests of employers and entrepreneurs of the Czech Republic in European and international organisations, especially as a member of the Confederation of European Business (BUSINESSEUROPE) and within the framework of the Business and Industry Advisory Committee to the OECD (BIAC). On the basis of agreements, it actively cooperates with partner industrial federations, chambers of commerce, and other economic institutions abroad.

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 about the Confederation of Industry can be found at: www.spcr.cz. l

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

CZECH CHAMBER OF COMMERCE The Czech Chamber of Commerce is empowered by law to pursue and protect the interests of the business community, ensure its needs and support its development. It consists of a regional network of chambers, associations, professional and trade confederations on a national scale. The broadly-based membership platform therefore makes it possible for businessmen and entrepreneurs to use its specific services, including international support undertakings and programmes. Although membership of the Czech Chamber of Commerce is not compulsory, the Chamber provides its services, whose standard is comparable with that of the chambers of commerce in the other EU states, not only to its members, but also to non-members:

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

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

l Visiting missions of businessmen on the occasion of the official participation of the Czech Republic in trade fairs and exhibitions abroad l Missions of foreign investors for small and medium-sized Czech enterprises l Organisation of seminars, workshops, business forums and similar expertly and territorially oriented events l Participation in the programmes and activities of the European Union l Seeking out trade partners in the Czech Republic and abroad, consulting in the area of foreign trade l Active support on entry of foreign markets l Provision of export certificates l Foreign trade analysis l Publication of offers and enquiries at the Chamber´s websites

Hospodářská komora České republiky Florentinum, Na Florenci 2116/15, 110 00 Praha 1 Phone: +420 266 721 300 E-mail: office@komora.cz l More information at www.komora.cz l

INTERNATIONAL CHAMBER OF COMMERCE IN THE CZECH REPUBLIC The International Chamber of Commerce – ICC – was founded in Paris in 1919. Its mission is to support world trade. Today it comprises thousands of companies and associations from more than 130 countries. ICC CR has been providing its services for more than 15 years. Prestige – Through national ICC committees, businessmen transfer their interests, standpoints and views to representatives of supreme bodies, institutions and governments, including the UN, EU, WTO and OECD, in which ICC has the highest status level of consultant. Rules – ICC has incontestable authority to create rules according to which international trade is operated. The rules are used in everyday contact and they have become an indivisible part of international trade throughout the world. Examples are Incoterms (R) 2010, banking rules, and international model agreements. Partnership – ICC provides a wide range of services; for example, it organises arbitration proceedings within the framework of the ICC International Court of Arbitration in Paris and educational events, and it also provides consulting services and arranges meetings with foreign trade partners. Territorial meetings – The aim of these events is to support Czech diplomacy, create business and investment opportunities for Czech exporters, help diversify Czech exports and establish useful trade contacts. Specialised courses – Subjects are linked with international trade, in particular: Incoterms(R) 2010, bank guarantees and URDG 758, documentary letters of credit and standby, and international purchase contracts. ICC CR, in collaboration with the Ministry of Industry and Trade, has created the document: “Competitiveness Strategy for the Czech Republic and Export Strategy for the Czech Republic for the period 2012–2020”.

Národní výbor Mezinárodní obchodní komory v České republice (National Committee of the International Chamber of Commerce in the Czech Republic) 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

NORDIC CHAMBER OF COMMERCE The mission of the Nordic Chamber of Commerce in the CR is not only to serve and promote Nordic businesses, but also to function as a vehicle to develop commercial relations between the Czech Republic and Denmark, Finland, Iceland, Norway, and Sweden. Today, our membership has grown to almost 160 companies, employing 63 000 people all over the Czech Republic. Although the Chamber is a non-profit organisation and has no political aims, we are constantly working to improve the business climate in the Czech Republic, not least by promoting Nordic values such as transparency, diversity and sustainability; we also provide a platform for creating new business opportunities. Several studies conclude that membership in a commercial chamber can significantly boost a company’s image both among consumers as well as among other businesses. By joining the Nordic Chamber of Commerce, your company will become part of an organisation that actively represents and promotes the Scandinavian lifestyle and management style in the Czech Republic. We also put great emphasis in promoting fairness as a principle of doing business. Our main activities can be summarised as follows: l Promoting and presenting our members’ businesses in the local market l Supporting our members’ interests and conveying their points of view to representatives of the Czech Government and state authorities l Building and expanding their business connections l Arranging networking events with other foreign chambers in the country l Increasing our members’ business knowledge l Interacting with other Nordic-connected businesses in the CR l Working on improving the country’s business environment l Providing professional services, business information and market research through member companies with expertise and services in the given field l Promoting Nordic values – transparency, equal opportunities and sustainability – both among the membership and the CR l Arranging Czech business missions to the Nordic countries and Nordic trade visits to Prague and other parts of the country The practical benefits of a membership in the Nordic Chamber of Commerce depend on the individual members’ level of involvement, their desire to utilise our services and their commitment to make a difference in the community. Business referrals, website presence, increased visibility, regional partnership, networking events and workshops, advertising opportunities and business partnership benefits are all included in the Chamber membership.

Nordic Chamber of Commerce Václavské náměstí 51, 110 00 Praha 1 Phone: +420 774 123 370 E-mail: info@nordicchamber.cz l More information at: www.nordicchamber.cz l C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 47

INSTITUTIONS

CZECHTRADE  CZECH TRADE PROMOTION AGENCY DEVELOP YOUR INTERNATIONAL BUSINESS CzechTrade is a government trade promotion agency of the Czech Republic, which was set up by the Ministry of Industry and Trade of the Czech Republic. Its main objective is to develop international trade and cooperation between Czech and foreign entities. Through its services, CzechTrade supports Czech companies in trading on foreign markets. Foreign companies contact CzechTrade when they are looking for interesting, reliable partners and suppliers in the Czech Republic. Our professional team, including employees in our foreign network, offers a wide range of services to assist your company in finding a suitable contractor or trade partner in the Czech Republic. Czech firms have the reputation of being reliable partners and suppliers of high-quality products, technologies and services. Services provided free of charge by the network of CzechTrade offices abroad: l Qualified search of Czech business partners l Initial consultation by phone or in person with the foreign offices representative concerning the potential of Czech suppliers based on your requirements l Provision of basic information on the sector of interest in the CR l Identification and compilation of a list of potential suppliers in the Czech Republic within the specified sector l Publication and targeting of a specific inquiry among Czech suppliers to find out their interest in cooperation l Organisational arrangement of a meeting with potential Czech suppliers in the Czech Republic during so-called Sourcing Days

Online Services Online form on the websites, where you can specify your requirements. A team of CzechTrade specialists will assist you in finding contacts to suppliers of goods and services in the Czech Republic according to your specifications. Czech Exporters Directory The Directory is an official online database of Czech exporters, where you can find potential trade partners in the Czech Republic. The Directory is available in 13 language versions at http://exporters.czechtrade.cz BusinessInfo.cz Portal Official website for foreign businessmen seeking information, assistance or contacts for their business activities in the Czech Republic. Language of the portal: English. Translation into other languages is possible with the Google Translator application.

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

CzechTrade Scandinavia (Sweden, Denmark, Norway, Finland) Villagatan 21, 114 32 Stockholm Phone: +46 8 236 712 E-mail: info@czechtrade.se www.czechtrade.se, www.czechtrade.dk l More information at www.czechtrade.eu l

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

„ Quality you can aīord “ I n d u s t r y s . r. o . KOMA – Industry, s.r.o. focuses on Ňuid systems (hydraulic systems, lubricaƟon systems, pneumaƟc systems, manufacturing of special hydraulic cylinders). We have been performing comprehensive services ranging from design development to implementaƟon of our customers’ projects for many years. We also provide sophisƟcated installaƟon services for primary producers of machines and appliances. Our company has been very acƟve in this sphere of engineering and has become a solid partner to many leading industrial corporaƟons on both Czech and internaƟonal markets. Upon our acquired experience and business opportuniƟes, KOMA – Industry s.r.o. has expanded its scope of acƟviƟes to implemenƟng large investment projects related to Ňuid systems. We are well-suited for delivering large projects – we can build on the knowledge of our professionals who are experienced in all necessary skills needed for all parts of the project implementaƟon process – from the iniƟal phase of oīers and quotaƟons through planning and designing, manufacturing of Ňuid and engineering units, to providing customers with warranty and post-warranty services. Our acƟviƟes are realized at two main levels: 1) KOMA-Industry realizes turn-key projects - enƟre investment projects or overhauls – while using its own workforce and subcontractors. 2) KOMA-Industry becomes a subcontractor to a company delivering the whole project – in such a case we usually deliver the technical soluƟon or services related to Ňuid systems only. We would like to apply our experience, skills and new producƟon capaciƟes in other markets. To our new customers, we are oīering a highly responsible approach to various soluƟons, technical services and capabiliƟes at a very high level, as well as a stable and guaranteed quality of the delivered units or hubs.

Our main strengths: - Technical support of our own design oĸce (consulƟng of clients’ non-standard requirements, own designs and innovaƟons, thorough checking of the documentaƟon prior to handing it over to the purchasing department and producƟon). - Project management knowledge and experience. - Own producƟon capaciƟes appropriate for the heavy industry projects deliveries. - The company is located in an industrial part of the Czech Republic which facilitates the collaboraƟon and cooperaƟon of individual tasks and acƟviƟes. - A highly experienced team (highly skilled and trained professionals). - Our implementaƟon team is well technically equipped. - We do have a lot of experience with large investment project deliveries in both, the Czech Republic and abroad (Europe, Russia, India, and Pakistan). - We also have the experience with project deliveries using the external documentaƟon (with foreign standards or non-standard soluƟons). Services and skills of a supreme quality level: - High-pressure oil hydraulics. - Precision electro-hydraulic systems. - Hydraulic aggregates for various machines. - Large hydraulic systems for presses, cuƩers, bending machines… - Parallel delivery of all other Ňuid media of the machine, lubricaƟon system, pneumaƟc system, natural gas, machine water cooling system. - The ability to produce, assemble and test the enƟre technological units while using the external documentaƟon. - AlternaƟvely, we can produce individual mechanical machine parts only. - The ability to deliver piping systems while possessing the top quality capabiliƟes and experience. - Precision bent piping systems by individual technologies. - Extensive piping systems for rolling mills. - High-pressure large diameter piping systems (e.g. ø 273x40) - Stainless piping systems up to the maximum diameters. - Own producƟon capaciƟes appropriate for the heavy industry projects deliveries. - Experience in assembly and installaƟon of large technological units (rotary casƟng stand, presses, bending machines,…).

KOMA – Industry s.r.o. Ruská 41 706 02 Ostrava-Vítkovice

tel.: +420 595 952 436 fax: +420 595 952 725

tel.: +420 595 954 775 fax: +420 595 955 879

www.komaindustry.cz servis@komaindustry.cz

I : 64617912 DI : CZ64617912

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 acqusition 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 for potential investors current data and information on business climate, investment environment, and investment opportunities in the Czech Republic. All services are provided free of charge.

CZECHTOURISM  CZECH TOURIST CENTRE CzechTourism, the Czech Tourist Centre, publicises the Czech Republic at home and abroad as an attractive tourist destination. Its partners are representatives of regional institutions and tourist regions, destination managements, towns and communities, and firms. With all its activities, the Centre attempts to awaken the interest of foreign tourists in the Czech Republic’s wealth of unique sights and attractions and to inspire them to visit the country. Its policy is to promote incoming tourism, while systematically supporting tourism at home. All its marketing activities place special emphasis on the communication strategy, which presents the Czech Republic as an exciting country where visitors can not only discover thrilling tales of its history, past and present, but also experience and share these with their companions. CzechTourism is assisted in these efforts by a network of foreign representations; it actively collaborates with the media and addresses partners in the Travel Trade sector at trade fairs. The Agency organises study tours to the Czech Republic for representatives of the media and tour operators and mediates tourism news for the local tourist community, acquainting them with the trends and analyses in the sphere of global tourism. It acts as a service organisation for the regions and the B2B segment in the area of tourism, assisting tourist entities to present themselves abroad at a level which they could not easily achieve if acting on their own. CzechTourism Agency is a state-run contributory organisation of the Ministry for Regional Development of the Czech Republic.

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

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

CzechInvest Scandinavia E-mail: scandinavia@czechinvest.org

Czech Tourist Authority – CzechTourism for Scandinavia and Finland

l More information about CzechInvest at www.czechinvest.org l

Villagatan 21, 114 32 Stockholm Phone: +468 44 04 239 E-mail: stockholm@czechtourism.com l More information can be found at www.czechtourism.com l

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

INSTITUTIONS

CZECH CENTRES Czech Centres are an agency of the Czech Ministry of Foreign Affairs for the promotion of the Czech Republic worldwide. They propagate the Czech cultural scene in the international field and advance Czech interests from their offices in 21 foreign capitals on three continents. They are members of EUNIC — the Association of European National Cultural Institutions. Czech Centres promote all sectors of Czech cultural and creative industries, presenting the Czech Republic as a modern country with valuable cultural traditions. They bring together and promote the cooperation of foreign cultural institutions, experts and artists with their Czech counterparts. In the area of education, science, research and innovation, Czech Centres collaborate with universities and other higher learning and specialised institutions, help promote cooperation between them and propagate the achievements of Czech science abroad. They support the tuition and popularisation of the Czech language internationally. In the area of external economic relations, Czech Centres assist in the promotion of Czech trade interests in other countries. In promoting the Czech Republic as an attractive tourist destination, the Centres, in collaboration with their partners, devote themselves especially to the presentation of Czech regions abroad. As regards the provision of information about the Czech Republic, Czech Centres act as communication centres for the lay and expert public, the media, and international entities abroad.

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

Czech Centre Stockholm Villagatan 21, 114 32 Stockholm Phone: +468 4404 218 E-mail: ccstockholm@czech.cz www.stockholm.czechcentres.cz l More information can be found at www.czechcentres.cz l

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

CENTRE FOR REGIONAL DEVELOPMENT OF THE CZECH REPUBLIC  ENTERPRISE EUROPE NETWORK The Centre for Regional Development of the Czech Republic (the Centre) is an intermediary and control body for selected operational programmes financed from the EU Structural Funds. The Centre also administers the Regional Information Service system, where information from the regions and municipalities of the Czech Republic can be found. The system is focused especially on the economic, social, and living environment, administrative division, public administration and local government, grants, etc. The Centre hosts one of the partners of the Enterprise Europe Network (EEN). This network was established by the European Commission in 2008 to support businesses and enterprises. Since then it has spread its activities throughout the world, so, today, it comprises 600 partners with more than 4 000 experts in over 50 countries – for example (apart from all EU countries) it has offices in India, China, Japan, and South Korea. EEN staff offer services to both Czech and foreign enterprises. Foreign firms can benefit from the following services: assistance in seeking partners for business, production and technological cooperation, information about the Czech business environment, setting up firms and information about taxation, Czech and EU legislation concerning business and opportunities of funding from national and EU sources. International B2B trade meetings organised by the EEN during selected important trade fairs are very popular among businesses, e.g. in the Czech Republic, during the International Engineering Fair in Brno and the FOR ARCH building Trade Fair in Prague.

Centrum pro regionální rozvoj ČR – Enterprise Europe Network U Nákladového nádraží 3144/4, 130 00 Praha 3 Phone: +420 234 006 232 E-mail: een@crr.cz l More at www.crr.cz, www.een.cz l

ENJOY

COMFORTABLE LIFE WITH

SUN SHADING PRODUCTS High quality external blinds made by NEVA Czech Republic

all types of external blinds wide range of colour shades of slats covers made to customer’s specifications short delivery terms Sales representative for Scandinavia: HANSEN Enterprise a.s P.O.Box 33 N-2081 Eidsvoll, Norway Mr. Ednar Hansen Phone: +47-905 976 29 E-mail: ednar@online.no Producer: ŽALUZIE NEVA s.r.o. Háj 370, 798 12 Kralice na Hané Czech Republic

www.nevapv.cz

www.erilens.com

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

We produce locomotion aids, such as forearm crutches, underarm crutches, walking sticks and other medical equipment. We pay attention to the quality, functionality and design of our products, with our experienced development and production team following the current trends and user requirements. Our company is the only manufacturer of locomotion aids in the Czech Republic. At present, we are one of the most signiﬁcant distributors on the local market. A considerable percentage of sales is exported.

Locomotion aids • • • • •

forearm crutches underarm crutches crutches for children walking sticks accessories (anti-slip tips, grip covers, straps, holders...)

Other medical equipment • ﬁnger splints • irrigators • anti-decubitus pads

ERILENS s.r.o. Papírenská 114/5 • 160 00 Prague 6 • CZECH REPUBLIC Jana Dupalová • Export Manager • e-mail: jdupalova@erilens.cz • Tel.: +420 777 336 912

CONFEDERATION OF EMPLOYERS’ AND ENTREPRENEURS’ ASSOCIATIONS OF THE CZECH REPUBLIC l associates seven representative employer associations in the area of construction, textile industry, small and medium-sized businesses, cooperative enterprises, agriculture, mining and oil industries, transport, woodworking industry, education, healthcare, culture, and social services; l represents 22 285 member entities with more than 1 322 179 employees; l supports the specific interests of its members in the area of legislation and other spheres; l formulates the common business and employer interests of its members and pursues them in collaboration with the state authorities concerned, other employer organisations and trade unions and especially in various forms of consultation with the government; l cooperates with the Czech Confederation of Industry, the Czech Chamber of Commerce, the Czech Agrarian Chamber, the Czech Confederation of Commerce and Tourism, the Czech Cooperative Association and other organisations;

l is one of the social partners representing the business sector in the Council of Economic and Social Agreement (Tripartite Body). The members of the Confederation include the following associations and unions: l Association of Textile, Clothing, and Leather Industry; l Association of Businessmen and Tradesmen of the Czech Republic; l Association of Czech and Moravian Manufacturing Cooperatives; l Association of Building Entrepreneurs in the Czech Republic; l Union of Employer Associations; l Employer Union of Mining and Oil Industries; l Czech Agricultural Union.

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

Traditional producer of woollen socks We produce men's, ladies' and children's socks and knee-socks. We offer a wide selection of woollen and cotton materials. Our portfolio includes classic, sporty, medical, casual, and professional socks, socks for work, special army socks (antibacterial, sanforized etc.). We have ISO 9008 certification.

Contact the producer on: bapon-stepon s.r.o. Stodolní 510 394 64 Počátky Czech Republic + 420 775 382 356 bapon-stepon@quick.cz

www.bapon.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 55

CO N TAC TS

Useful Contacts USEFUL CONTACTS IN THE CZECH REPUBLIC Embassy of the Kingdom of Denmark Velvyslanectví Dánského království Maltézské náměstí 5, 118 01 Praha 1-Malá Strana Phone: +420 257 531 600 E-mail: prgamb@um.dk www.tjekkiet.um.dk

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

Embassy of the Republic of Finland Velvyslanectví Finské republiky Hellichova 1, 118 00 Praha 1 Phone: +420 251 177 251 E-mail: sanomat.pra@formin.fi www.finland.cz

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

Honorary Consulate of the Republic of Finland Honorární konzulát Finské republiky Botanická 834/56, 602 00 Brno Phone: +420 541 554 265 E-mail: Finsky.Konzulat@poyry.com

Ministry of Health / Ministerstvo zdravotnictví www.mzcr.cz

Embassy of the Kingdom of Norway Velvyslanectví Norského království Hellichova 1/458, 118 00 Praha 1-Malá Strana Phone: +420 257 111 500 E-mail: emb.prague@mfa.no www.noramb.cz Embassy of the Kingdom of Sweden Velvyslanectví Švédska Úvoz 13, 110 00 Praha 1-Hradčany P.O.Box 35, 160 12 Praha 612 Phone: +420 220 313 200 E-mail: ambassaden.prag@gov.se www.swedenabroad.com/prag

Ministry of Labour and Social Aﬀairs Ministerstvo práce a sociálních věcí www.mpsv.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

USEFUL CONTACTS IN DENMARK Nordic Chamber of Commerce in the Czech Republic Severská obchodní komora Václavské náměstí 51, 110 00 Praha 1 Phone: +420 774 123 370 E-mail: info@nordicchamber.cz www.nordicchamber.cz CzechInvest Scandinavia E-mail: scandinavia@czechinvest.org

Embassy of the Czech Republic Ryvangs Allé 14-16, 2100 København Phone: +45 3910 1810 E-mail: copenhagen@embassy.mzv.cz www.mzv.cz/kodan

MINISTRIES

Honorary Consulate of the Czech Republic Søsterhøjvej 35, 8270 Højbjerg - Aarhus Phone: +45 4020 3444 E-mail: aarhus@honorary.mzv.cz www.nb-group.dk

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

USEFUL CONTACTS IN FINLAND

Ministry of Industry and Trade / Ministerstvo průmyslu a obchodu www.mpo.cz Ministry of Agriculture / Ministerstvo zemědělství www.mze.cz 56 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

Embassy of the Czech Republic Armfeltintie 14, 00150 Helsinki Phone: +3589 6120 880 E-mail: helsinki@embassy.mzv.cz www.mzv.cz/helsinki

FOR HEALTH, COMFORT AND MOVEMENT - ORTEX Ltd. is a Czech company established in 1991. - The programme is focused on development, series production and sale of braces for post-op conservative treatment and rehabilitation of damaged joints and ligaments. - Besides its own range of products, ORTEX Ltd. also offers braces that are custom-manufactured based on business partners’ special wishes. - The Company is certified in the Quality Management System in accordance with EN ISO 9001:2008, EN ISO 13485: 2003.

ORTEX Ltd. L. Váchy 173 760 01 Zlín Czech Republic

Теl.: +420 577 011 272-4 Fax: +420 577 011 275 E-mail: ortexzlin@ortexzlin.cz www.ortexzlin.cz

ONE OF THE BIGGEST FOUNDRIES IN THE CZECH REPUBLIC STEEL CASTINGS GREY IRON CASTINGS EN GJL100-EN GJL 350 NODULAR IRON CASTINGS EN GJS 400-EN GJS 700 PATTERN MAKING, CNC MACHINE MACHINING,FINISHING CASTINGS FOR VARIOUS INDUSTRIES

A leading manufacturer of a complete range of foundry products with more than 170-year tradition in casting. Production of steel, grey and nodular cast iron, models, manual and machine forming, a wide range of manufactured materials, heat treatment, roughening, machining, varnishing. We produce manually also machineformed castings of carbon, medium and high alloy steels from 5 kg to 6,000 kg. Manually and machineformed hematite, grey and nodular iron castings from 2 to 50 tons, metallurgical cylinders up to 30 tons. The production process includes services such as production of model equipment, heat treatment, machining, finishing of castings including varnishing, and dispatch of castings to customers. We supply castings for various industrial sectors – castings for the automotive industry, mechanical engineering, agriculture, metallurgical cylinders, spare parts for smelting plants, counterweights for handling trucks, wear parts for stone and coal treatment machines, bearing plates and railway frogs, parts and accessories for building machines, oil sumps, casings, covers for electric motors, ingot moulds and other castings according to the customer’s specifications. We offer about 30 brands of cast irons and approximately 150 brands of cast steels. All according to ČSN ISO 9001 and ČSN ISO 14001 certification. Slévárny Třinec,a.s. is a member of Association of Foundries of the Czech Republic and of Economic Chamber of the Czech Republic

PRAHA TŘINEC BRNO

Address SLÉVÁRNY TŘINEC, a.s. Průmyslová 1001, Stare Mesto 739 61 Třinec, Czech Republic Tel.: +420 558 532 481, +420 558 532 040 Fax: +420 558 532 586 E-mail: foundry@trz.cz www.slevarny.trz.cz

Contact Persons: Šárka Wojnarová, Marketing Manager Tel.: +420 558 532 481, Mobile: +420 724 299 807 E-mail: sarka.wojnarova@trz.cz Miroslav Kajzar, Commercial Manager Tel.: +420 558 533 952, Mobile: +420 602 766 486 E-mail: miroslav.kajzar@trz.cz

Honorary Consulate of the Czech Republic Kuninkaankatu 15 B 26, 33210 Tampere Phone: +35850 5522 680 E-mail: detano@elisanet.fi

USEFUL CONTACTS IN NORWAY Embassy of the Czech Republic Fritzners gate 14, 0244 Oslo Phone: +47 22 12 10 31 E-mail: oslo@embassy.mzv.cz www.mzv.cz/oslo Honorary Consulate of the Czech Republic – Trondheim Tungaveien 38, Trondheim, Postboks 1862 Phone: +47 9323 3100 E-mail: trondheim@honorary.mzv.cz Honorary Consulate of the Czech Republic – Sjøvegan St. Hansveien 36, Sjøvegan Phone: +47 9097 5599 E-mail: sjovegan@honorary.mzv.cz Honorary Consulate of the Czech Republic – Bergen Christian Michelsensgt. 2A, Bergen Phone: +47 5521 5401 E-mail: bergen@honorary.mzv.cz

USEFUL CONTACTS IN SWEDEN Embassy of the Czech Republic Villagatan 21, 114 32 Stockholm Phone: +468 4404 210 E-mail: stockholm@embassy.mzv.cz www.mzv.cz/stockholm Honorary Consulate of the Czech Republic World Trade Center, Jungmansgatan 12, 21121 Malmö Phone: +46 7323 32199 E-mail: malmo@honorary.mzv.cz CzechTrade Scandinavia (Sweden, Denmark, Norway, Finland) Villagatan 21, 114 32 Stockholm Phone: +46 8 236 712 E-mail: info@czechtrade.se www.czechtrade.se, www.czechtrade.dk Czech Centre Stockholm Villagatan 21, 114 32 Stockholm Phone: +468 4404 218 E-mail: ccstockholm@czech.cz http://stockholm.czechcentres.cz Czech Tourist Authority – CzechTourism for Scandinavia and Finland Villagatan 21, 114 32 Stockholm Phone: +468 44 04 239 E-mail: stockholm@czechtourism.com

www.kvrezac.cz MANUFACTURER OF PROTECTIVE NETS FOR A WIDE RANGE OF USE DEPENDING ON INDIVIDUAL DIMENSIONS.

Kv. Řezáč, s.r.o. U Svratky 780, 666 01 Tišnov Czech Republic Tel./Fax: +420 549 410 084 +420 549 410 085 +420 549 410 350 E-mail: kvrezac@kvrezac.cz

MANUFACTURER OF NETS FOR ALL SPORTING ACTIVITIES: goals and protective nets for football, handball, volleyball, basketball, badminton, tennis, ﬂoorball, ice hockey, golf, baseball, skiing. MANUFACTURER AND SUPPLIER OF ROPE PRODUCTS FOR PLAYGROUNDS AND SPORTS GROUNDS: gymnastic skipping ropes and skipping ropes made of jute, climbing ropes, climbing nets, climbing ladders and pyramids, and hammocks. MANUFACTURER AND SUPPLIER OF NETS FOR INDUSTRIAL USE, CONSTRUCTION AND GARDEN: container nets, nets for freight wagons, safety rope ladders, safety nets for falling persons or objects, nets for plant growing, decorative nets, aviaries etc. • Sports nets are manufactured according to international rules and standards. • Products for playgrounds comply with safety standards. • Safety nets comply with the international EN 1263-1 safety standard.

FAST • HIGH-QUALITY MANUFACTURE We supply our products to top international sporting events in volleyball, beach volleyball, tennis, ice hockey (Davis Cup, European Volleyball Championship, World Beach Volleyball Championship, World Ice Hockey Championship, etc.) We export 35% of our production to almost all European countries (Germany, Austria, Switzerland, Finland, Russia, Estonia, Slovakia, Romania...).

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 59

www.aveng.eu

INCO engineering is a private company based in Prague, the Czech Republic . INCO engineering belongs to top world suppliers of vertical transport technology for underground mines. INCO engineering designs and manufactures following equipment: • friction hoists • drum hoists • automatic loading/unloading stations • sheaves and pulleys • mine signaling INCO engineering provides remote consultancy so the customers are never left alone. Sophisticated Rockwell Automation control systems are used, including Rockwell Automation frequency converters. INCO engineering has enormous experience in old hoists modernization. INCO engineering modernizes its own products as well as hoists of other manufactures. It can be complete modernization covering: brakes, control system, hydraulics, electrical part, mechanical part, or partial modernization when only the most troubling difficulties are solved.

60 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

INCO engineering s.r.o. Thamova 13 186 00 Praha 8 Czech Republic

phone: +420 222 780 372 sale@incoengineering.cz www.incoengineering.cz

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 on 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

Business Register

http://portal.justice.cz

Public directory of companies

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.cz

Czech Company Catalogue

European Databank

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

Information operator

Czech exporting companies Zlaté stránky

Company-Catalogue Czech Exporters Directory Telephone and companies directory

Legislation Iuridika

http://iuridica.eunet.cz

Directory of legal services and oﬃcial bodies

Portal of Czech judiciary

www.justice.cz

Course of legal proceedings

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

Patria Finance, a.s.

www.patria.cz

Investment portal

Chamber of Tax Advisers of the CR

www.kdpcr.cz

Database of tax advisers

www.czso.cz

Oﬃcial statistical data and information covering diﬀerent subjects

Finance Czech National Bank

Statistics Czech Statistical Oﬃce Fairs and Exhibitions BVV – Brněnské veletrhy a výstavy/Trade www.bvv.cz Fairs Brno Association of Fair and Exhibition Organisers www.euroexpo.cz of the CR /SOVA ČR/

List of exhibitions and fairs in the CR and relevant information Exhibition centres and companies organising trade fairs in the CR and abroad

Miscellaneous 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

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

Association for Foreign Investment

www.aﬁ.cz

Support for entry of foreign investors

Cadastre of Real Estate

www.cuzk.cz

Information system, contains data on real estate in the CR

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

www.mytocz.eu

www.risy.cz

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

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 61

Agromechanika v.o.s. is a traditional Czech manufacturer of solid fuel hot water boilers with outputs from 15 to 50 kW. The boilers come in the AM Energo series designed for firewood combustion and the AM Licotherm series with an automatic fuel feeding system designed for wood pellet and brown coal nugget 2 combustion.

AUTOMATIC HOT WATER BOILERS: h AM 24 Licotherm BIO h AM Licotherm 26 Carbo2

WOOD COMBUSTION HOT WATER BOILERS: h AM 23 Energo h AM 29 Energo h AM 43 Energo

ADVANTAGES OF AM ENERGO BOILERS: h spacious gasification chamber with a large filling door h high efficiency of the boiler at nominal output h perfect combustion with a very low harmful substance content h special design of the gasification chamber with low tar production h long burning period (up to 22 hours in regulated operation)

AGROMECHANIKA v.o.s. CZ 384 02 LHENICE Phone: +420 388 321 280 E-mail: info@agromechanika.cz

www.agromechanika.cz

EXPERIENCED AND FLEXIBLE SUPPLIER OF ELECTRICAL CABINETS FOR PRODUCTION AND TECHNOLOGICAL LINES

Complex range of services: y construction and production of electrical LV cabinets up to 1000 V AC or 1500 V DC rated voltage and 4000 A rated current y production of electrical switchgear cabinets in compliance with a UL 508A (CSA) standard y custom-made production of electrical enclosures and control panels y powder coated or stainless steel solutions, intended also for pharmaceutical or food industry y projection in ePlan y SW for industrial and control systems

For inquiries and more information, visit our website or contact us on sales@sencopb.cz SENCO Příbram spol. s r.o. Plynárenská 292, 261 01 Příbram, Czech Republic

www.sencopb.cz/en 62 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

Tel.: +420 318 493 685 Fax: +420 318 493 628

E-mail: sales@sencopb.cz VAT: CZ25096087