United Kingdom of Great Britain and Northern Ireland 2019/2021 by PP AGENCY

CZECH REPUBLIC Your Trade Partner

2019/2021 United Kingdom of Great Britain and Northern Ireland

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

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

YOUR PARTNER

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

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

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

www.glentor.cz

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

Ministry of Foreign Affairs of the Czech Republic

Ministry of Industry and Trade of the Czech Republic

Ministry of Regional Development of the Czech Republic

Confederation of Industry of the Czech Republic

Czech Chamber of Commerce

International Chamber of Commerce in the Czech Republic

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

CzechTrade – Czech Trade Promotion Agency

CzechInvest – Business and Investment Development Agency

CzechTourism – Czech Tourism Authority

Czech Centres

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

Deadline: 3 May 2019 ® Teritoriální publikace Česká republika – Váš obchodní partner Published by the PP Agency s.r.o. Myslíkova 25, 110 00 Praha 1, Czech Republic E-mail: journal@ppagency.cz, www.ppagency.cz

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

FOREWORD

Ladies and Gentlemen, Dear business partners and friends of the Czech Republic, It is my pleasure to have this opportunity to share with you a few words on Czech-British economic affairs, which have been flourishing over the last 30 years. So what makes businesses from both our countries forge partnerships and trade with each other? Obviously, cooperation is mutually convenient for both parties. But besides that, there are many “soft” factors, that make the Czech Republic such a popular country to deal with, including being the number one destination for British citizens who have decided to settle and work in Central and Eastern Europe; the 7th safest country globally; the world’s best country for women to work in; the 3rd country globally in the Working Abroad Index; the 1st country in the National Cyber Security Index and, very importantly, a land with a high quality of life. From the business perspective, the factors that take many foreign investors to the Czech Republic include the safe investment environment, the skilled and well-educated workforce, favourable labour costs and price stability, the central location in Europe, a dense and high-quality infrastructure, transparent system of investment incentives, the strong focus on R&D, EU membership and a mentality, culture and political system similar to Western countries. The current trade cooperation is indeed massive: the UK is the Czech Republic’s 5th largest export partner, with the amount of exported goods reaching £5 billion annually. Viewed from the perspective of the UK, the imports from the Czech Republic represent some 1% of total UK imports, thus placing the Czech Republic amongst the UKs top 20 importers. This means that the Czech Republic, in this respect, scores far higher than many large countries such as South Korea, Russia, Australia and South Africa. Automotive is the single most important Czech export sector with Škoda cars already having a well-deserved reputation throughout Britain. More importantly, Czech partners supply many UK based car and aerospace manufacturers as well as energy and telecommunication companies with a range of high quality components and services at reasonable prices, thus making British products more competitive globally. Besides trade, the Czech Republic and the UK are also mutually important investing partners: hundreds of factories and businesses are owned and operated by British capital in the Czech Republic, from Tesco and Marks & Spencer, GlaxoSmithKline, to Vodafone and HSBC, to name just the biggest ones. It is estimated that British capital creates some 65 000 jobs in the Czech Republic. And in the other direction, Czech companies are investing in various UK sectors such as energy and banking. The Czech energy groups “Energetický průmyslový holding” and Sev.en Energy acquired a number of power plants in the UK. A leading Czech financial group, PPF, co-founded “Clear Bank” in the UK, the first new clearing bank to be established in the City of London in over 200 years. The Czech Republic is also a well established partner for British companies in terms of research, development and testing of new products, including for instance in the area of clinical testing. The Czech Republic is gradually becoming a skills hub in Central Europe, where a number of large scientific infrastructure projects have been established. It is obvious that the cooperation between Czech and British businesses is making both sides more competitive and thus it is important that the level and barrier free nature of trade is preserved and further developed in the future. With this goal in mind, the Czech Embassy in London remains your partner in facilitating your business to business contacts and building new trade and investment partnerships. Let me wish you much success in your activities!

Aleš Opatrný Head of the Economic Section Embassy of the Czech Republic in the UK

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

Photo: CzechTourism (Martin Rak), Cover photo: the firms’ archives (ECOTEX s.r.o.; GLENTOR s.r.o.; Kosmetika CAPRI spol. s r.o.; NOVÉ VINAŘSTVÍ, a.s.; RETOS VARNSDORF s.r.o.; TOS VARNSDORF a.s.; Válcovny trub Chomutov, a.s.)

Prague – Hradčany

Contents FOREWORD

Foreword by Aleš Opatrný, Head of the Economic Section, Embassy of the Czech Republic in the UK Czech Exporters Useful Information

Conquering the World The Czech Republic, Attractive Tourist Destination

04 06 10

ECONOMICS

The Czech Republic – Trade Partner of the United Kingdom Czech Economy in 2018

12 17

BUSINESS IN THE CZECH REPUBLIC Business Companies in the Czech Republic Tax System of the Czech Republic

18 22

KEY SECTORS IN THE CZECH REPUBLIC Czech Engineering – Tradition and Future Power Industry in the CR – Stable and Prospering Sector Czech Food Industry – Hidden Potential Nanotechnologies Entering into Big Business Medical Equipment Made by Czech Companies is

24 31 34 38

INSTITUTIONS PRESENT THEMSELVES

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

CONTACTS

Useful Contacts in the Czech Republic Useful Contacts in the United Kingdom The Most Important Websites

40 44

46 47 47 48 49 49 50 50 51 51

52 52 54

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

FOREWORD

Mariánské Lázně

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

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

TEREZIA COMPANY s.r.o.

24.20 Manufacture of tubes, pipes, hollow profiles and related fittings, of steel Válcovny trub Chomutov, a.s. 30 25.00 Manufacture of fabricated metal products, except machinery and equipment Works L & W group s.r.o. 13 25.21 Manufacture of central heating radiators and boilers KLIMA s.r.o. 26 25.60 Treatment and coating of metals; machining Works L & W group s.r.o. 13 25.61 Treatment and coating of metals 4 U Color, s.r.o. 29 25.62 Machining V-NASS, a.s. 15 25.62 Machining KLIMA s.r.o. 26 26.10 Manufacture of electronic components and boards ELITRONIC s.r.o. 39 26.12 Manufacture of loaded electronic boards ILV s.r.o. 23 26.20 Manufacture of computers and peripheral

Photo: CzechTourism

10.89 Manufacture of other food products n.e.c. TEREZIA COMPANY s.r.o. 36 11.02 Manufacture of wine from grape NOVÉ VINAŘSTVÍ, a.s. 55 11.02 Manufacture of wine from grape Templářské sklepy Čejkovice, vinařské družstvo 33 11.02 Manufacture of wine from grape Vinařství Petr Skoupil 37 11.05 Manufacture of beer Tradiční pivovar v Rakovníku, a.s. 07 13.20 Weaving of textiles LA LINEA s.r.o. 20 13.30 Finishing of textiles LA LINEA s.r.o. 20 13.92 Manufacture of carpets and rugs E T E X Hořice s.r.o. 39 13.96 Manufacture of other technical and industrial textiles ECOTEX s.r.o. 32 20.42 Manufacture of perfumes and toilet preparations Kosmetika CAPRI spol. s r.o. 43 21.10 Manufacture of basic pharmaceutical products

Good beer from Rakovník

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

one of few independent industrial breweries in the Czech Republic; brews all its beers by the classic double mashing process, where the beer ferments in open vats and is let stand in horizontal lagering tanks for 40-60 days;

• •

uses Czech, top-quality raw materials, i.e. Czech malts, Saaz hops and water from its own deep wells; is the holder of a number of awards obtained in prestigious Czech and international competitions; is entitled to use the Czech Beer protected geographical indication. The Czech Beer PGI is a label guaranteeing consumers that the beer has the unique and specific properties of a product made in the particular geographical area from domestic raw materials, differentiating it from similar products manufactured in other regions, made from other raw materials or using a different production technology.

BAKALÁŘ PALE BEER

Photo: CzechTourism

BAKALÁŘ DRY HOPPED LAGER

BAKALÁŘ

DARK BEER

SEMIDARK BEER

PREMIUM LAGER

ÁŘ BAKALÁŘ HONEY SPECIAL

ČERNOVAR LIGHT LAGER

ČERNOVAR DARK LAGER

BAKALÁŘ NON-ALCOHOLIC DRY HOPPED LAGER

PRAŽAČK Ž Č PRAŽAČKA PALE BEER

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

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

FOREWORD

Prague

08 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

46.90 Non-specialised wholesale trade GLENTOR s.r.o. 46.90 Non-specialised wholesale trade Válcovny trub Chomutov, a.s. 47.78 Other retail sale of new goods in specialised stores Tradiční pivovar v Rakovníku, a.s. 63.00 Information service activities Bisnode Česká republika, a.s. 63.11 Data processing, hosting and related activities Bisnode Česká republika, a.s. 64.20 Activities of holding companies SAZKA Group a.s. 70.22 Business and other management consultancy activities SAZKA Group a.s. 70.22 Business and other management consultancy activities Bisnode Česká republika, a.s. 71.20 Technical testing and analysis Český metrologický institut 72.19 Other research and experimental development on natural sciences and engineering GF Machinery s.r.o. 72.20 Research and experimental development on social sciences and humanities ILV s.r.o. 74.00 Other professional, scientific and technical activities Kolektiv Ateliers a.s.

02 30

07 19 19 56

19 16

Photo: CzechTourism, Ladislav Renner

equipment ELITRONIC s.r.o. 39 26.40 Manufacture of consumer electronics ILV s.r.o. 23 27.20 Manufacture of batteries and accumulators Válcovny trub Chomutov, a.s. 30 28.10 Manufacture of general-purpose machinery GLENTOR s.r.o. 02 28.20 Manufacture of other general-purpose machinery ECOTEX s.r.o. 32 28.25 Manufacture of non-domestic cooling and ventilation equipment ECOTEX s.r.o. 32 28.40 Manufacture of metal forming machinery and machine tools RETOS VARNSDORF s.r.o. 25 28.90 Manufacture of other special-purpose machinery GF Machinery s.r.o. 27 28.99 Manufacture of other special-purpose machinery n.e.c. KLIMA s.r.o. 26 33.12 Repair of machinery GLENTOR s.r.o. 02 46.10 Wholesale on a fee or contract basis GF Machinery s.r.o. 27 46.41 Wholesale of textiles E T E X Hořice s.r.o. 39 46.90 Non-specialised wholesale trade Pivovar Clock s.r.o. 35 46.90 Non-specialised wholesale trade Tradiční pivovar v Rakovníku, a.s. 07

FOREWORD

Useful Information State Symbols of the Czech Republic Coat of Arms

National Flag

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

BASIC DATA

Prague

Population 10 649 800 (May 2019) Area 78 864 sq. km Capital city Praha (Prague) Parliamentary system Parliamentary democracy Language Czech Highest peak Sněžka (1603 m.a.s.l.) Time zone Central European Time GMT + 1, summer time GMT + 2 Currency Czech crown (Kč/CZK) = 100 hellers For the most recent exchange rates please see https://www.xe.com/currencyconverter Internet domain .cz The President of the Czech Republic is Miloš Zeman

MEMBERSHIP

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

UNESCO WORLD HERITAGE

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

NOTABLE PERSONS

Český Krumlov

Czechs are considered a very cultured nation, which has given the world a number of significant persons. The most important rulers and heads of state are Emperor Charles IV and the Presidents T.G. Masaryk and Václav Havel. World renowned personalities include the scientists Jaroslav Heyrovský (holder of the Nobel Prize for Chemistry), Otto Wichterle, Czech chemist who invented contact lenses, and Antonín Holý, who helped to create a drug used in the treatment of AIDS. Other world renowned persons are Tomáš Baťa, creator of 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 Other practical information concerning travel conditions to visit or reside in the Czech Republic are to be found at www.czech.cz

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

Mariánské Lázně – the Colonnade

BERLIN HAMBURG HANNOVER

SZCZECIN ZIELONA GÓRA

BERLIN

DORTMUND KASSEL

LEIPZIG

POZNAŃ

Legnica ROTTERDAM KÖLN ERFURT

Görlitz

DRESDEN Jena

WARSZAWA ŁÓDŹ

WROCŁAW Jelenia Góra

Gera Zwickau

Świdnica

CHEMNITZ

Wałbrzych

GDAŃSK ŁÓDŹ

Opole

Plauen

Tarnowskie Góry Kędzierzyn-K.

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

BAMBERG

Bayreuth

Bielsko-Biała

FRANKFURT AM MAIN WÜRZBURG

Erlangen

WARSZAWA RADOM

KRAKÓW LVOV (UA) RZESZÓW

BANSKÁ BYSTRICA POPRAD

Fürth

NÜRNBERG MANNHEIM HEILBRONN

Žilina MÜNCHEN INGOLSTADT

Regensburg

KOŠICE POPRAD

Trenčín

MÜNCHEN

KOŠICE ZVOLEN

Passau Trnava

Linz MÜNCHEN

St. Pölten

Wels

WIEN

Nitra

BANSKÁ BYSTRICA ZVOLEN

BRATISLAVA

SALZBURG

GRAZ SOPRON GRAZ

types of equipment (skis and snowboard) and the first woman to do so in single Winter Olympics.

BUDAPEST GYŐR

TRIESTE

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

PRACTICAL INFORMATION

Dialling code: +(420). More detailed information about telephone numbers can be found on the www.zlatestranky.cz website. Licences for operating mobile networks on the territory of the Czech Republic have been awarded to the following companies: 02 Czech Republic a.s., T-Mobile Czech Republic a.s., Vodafone Czech Republic a.s., and Air Telecom a.s. The most popular credit cards in the Czech Republic are Eurocard/Mastercard and Visa. Other practical information concerning travel conditions to visit or reside in the Czech Republic is to be found at www.czech.cz *ČNB = 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 11

ECONOMICS

The Czech Republic – Trade Partner of the United Kingdom The United Kingdom of Great Britain and Northern Ireland is one of the Czech Republic´s key trade partners; in 2017 it was its 5th largest export market, after Germany, Slovakia, Poland, and France, and its 10th largest import market. In terms of the size of the mutual trade turnover, the UK occupies 7th position. The high level of these two countries´ bilateral trade and economic relations is shown by the fact that the United Kingdom has for years been among the first ten largest trade partners of the Czech Republic, accounting for 3.8 per cent (in 2017) of the total Czech foreign trade turnover and for 5.0 per cent of total Czech exports. Since 2009, the mutual Czech-British trade turnover has increased more than twofold (see Table 1). In 2017, the mutual trade turnover increased by 2.8 per cent to a record CZK 309.7 billion, with Czech exports being up by 1.3 per cent – a new historical maximum of CZK 210.8 billion, and imports by 6.1 per cent. In the said period, the mutual balance of trade showed a surplus of CZK 111.8 billion on the Czech side. The greatest portion of the balance of trade surplus is generated by machinery and transport equipment, while the highest deficit is shown by chemicals. In 2016, the Czech surplus in trade with the UK ceased to grow, but the United Kingdom still remains the third most efficient trade partner, after Germany and Slovakia. For the time being, the bilateral trade relations between the two countries are showing no problems. The Czech surplus in trade with the United Kingdom is so substantial that it covers the Czech deficit in trade with Russia by more than threefold and by more than 25 per cent the gigantic Czech deficit in trade with China. Between January and November 2018, the volume of trade between the CR and the UK declined by 6.5 per cent in comparison with the same period in the preceding year, when Czech exports dropped by 2.7 per cent and imports by 14.9 per cent.

STRUCTURE OF MUTUAL TRADE

Czech exports to the United Kingdom are traditionally dominated by machinery and transport equipment (which in 2017 accounted for 68.4 per cent of total exports), followed by miscellaneous industrial products (14.2 per cent) and marketable products classified by material (11.2 per cent) (see Table 2). In Czech imports from the UK, the core items are also machines and transport vehicles (56.9 per cent), followed by chemicals (16.0 per cent) and marketable products classified by material (12 per cent) (see Table 3). 12 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

DIRECT BRITISH INVESTMENTS IN THE CZECH ECONOMY

The importance of Czech-British economic cooperation is underscored by the interest of British investors to invest in this country. With regard to foreign direct investments, the United Kingdom is the 10th largest foreign investor in the CR, according to the Czech National Bank (CNB). Many British companies probably invest in the CR through their affiliations registered in other countries. At the end of 2016, the cumulated amount of direct British investments made since 1993 amounted to CZK 92.1 billion, which is 2.9 per cent of total

Table 1 Mutual trade between 2009 – 1-11/2018 (in CZK thous.) Period

Exports

Imports

Turnover

Balance

2009

105 875

42 936

148 811

62 939

2010

124 923

49 151

174 074

75 771

2011

130 175

50 796

180 972

79 379

2012

147 084

52 185

199 269

94 898

2013

153 359

53 408

206 767

99 951

2014

184 039

68 124

252 164

115 914

2015

206 151

74 491

280 643

131 659

2016

208 166

93 238

301 405

114 927

2017

210 774

98 937

309 711

111 837

1-11/2017

197 600

90 727

288 327

106 872

1-11/2018*

192 260

77 251

269 511

115 008

* Estimate Source: Ministry of Industry and Trade of the Czech Republic

Table 2 Most important Czech export items in 2017 (in %): Number

Commodity group

Percentage share

Road vehicles

31.1

Office machines and equipment for automated data processing.

9.7

Electrical equipment, devices and appliances

8.0

Miscellaneous products

7.6

Equipment for telecommunication, sound recording and reproduction

7.3

Machinery and equipment generally used in industry

5.7

Machinery and equipment for energy production

4.0

Metal products

3.6

Rubber products.

2,1

Iron and steel

2.0

ASSEMBLY – EXPERTISE, QUALITY, SAFETY Works L & W Group s.r.o. (Works Locksmith & Welding – WLW) is a successfully developing company based in Hradec Králové, specialising in the delivery and assembly of whole plants, i.e. turnkey projects comprising disassembly, production, delivery and assembly of steel structures, piping, technological equipment, including all the required related activities at home and abroad for the energy sector and the food, pharmaceutical, chemical and petrochemical industries. The company has filled contracts in Hungary, France, Norway, the UK, the Faroe Islands and Spain, besides the Czech and Slovak Republics.

The company was founded in 2011, after the collapse of one of the largest assembly firms in the Czech Republic, which had been in the market for more than 20 years. The firm´s complete disintegration confronted its employees with the dilemma: either to seek employment, as before, or to set up their own assembly company. Despite initial difficulties, the second option proved a good choice. The company began with three employees in a single office. Today, seven years later, it occupies 2 000 sq. metres of production space and employs 60 people.

“We do work we like, work that has a clearly visible results and work which demands thinking. That’s what we like about it.” The company´s other activities comprise technical and engineering services within the framework of quality control, coordination activities, the provision and control of documentation, service repairs and work in the case of shutdowns in refineries, such as UNIPETROL – RPA.

www.wlwgroup.cz

The firm provides high quality services, using its wide-ranging technical equipment operating on the basis of a number of certifications, e.g. the WPQR welding performance qualification record for different welding methods. It also holds certificates issued by TÜV and TIČR for the manufacture and repair of specified gas and pressure equipment and the production of steel structures, and authorisation to supervise the final assessment according to the EU Directive PED 2014/68/EU Module B.

“Our emphasis is on quality projects” There is no need to emphasise that the strict observance of the safety and protection of health at work, fire protection and the protection of environmental regulations is superior to all other regulations. This is a generally positive trend, which cultivates the assembly workplace environment and is proof of the fact that Czech companies are fully on a level with their western counterparts. Our clients are, for example Saint-Gobain Construction Products, Cabot Corp., Unipetrol RPA, Nestlé, Stock Pilsen, ASC Process Systems Ltd, Great Britain, and Donaldson Filtration Solutions.

ECONOMICS

foreign investments landed in this country. The total amount of direct British investments in the CR made in 2017 is CZK 9.8 billion, according to the CNB estimate. British investments go mainly into the ICT sectors, shared services centres (finance, accounting, human resources), chain stores and the automotive industry. The main British investors include, for example, ArcelorMittal/Liberty Steel, Tesco, Marks & Spencer, BAE Systems, Rolls-Royce Engineering, Glaxo Smith Kline, Vodafone, HSBC, Avon Rubber, John Crane, SABMiller, Arriva and Provident Financial. Czech investments in the United Kingdom at the end of 2017 amounted to CZK 9.0 billion, according to CNB. The investments go mainly into the energy sector – acquisitions of the Energy Industry holding. PPF group also invests in the United Kingdom, specifically in the real estate market through PPF Real Estate; in 2016, PPF entered into the British “The Culture Trip” start-up, engaged in the area of digital book publication and sale. In 2016, PPF co-founded a new clearing bank, the Clear Bank, in London, in which it owns a 35-per cent share. In 2018, PPF bought an office building in London´s Canary Wharf financial centre for ₤115 million. Other firms which bought property in Britain are Škoda Auto, Linet, Budvar, Prazdroj, Jablonex Group, Precioza, Lighting, Lasvit, Techo, Sipral, and Moravské naftové doly.

AREAS WITH GOOD PROSPECTS FOR INCREASING CZECH EXPORTS TO THE UNITED KINGDOM

l Automotive industry l Energy industry l Electrical engineering l Chemical industry l Healthcare and pharmaceutical industry l Engineering – mainly transport system infrastructures l Furniture industry 14 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

Table 3 Most important Czech import items in 2017 (in %) Number

Percentage share

Commodity structure

Electrical equipment, devices and appliances

26.5

Office machines and equipment for automated data processing

10.3

Road vehicles

8.8

Medicines and pharmaceuticals

5.8

Miscellaneous products

5.5

Machinery and equipment generally used in industry

5.4

Metal products

3.9

Machinery and equipment for particular sectors of industry

2.9

Chemical detergents and products

2.6

Essential oils and perfume materials, polishing and cleaning materials

2.6

lG lass and ceramics industry lB uilding industry l Agricultural and food industry l I CT lC ivil aviation industry lD efence industry lS ub-delivery of goods and services for British firms, including joint deliveries to third countries (Commonwealth with a population of 2 billion) lD evelopment of economic cooperation between Czech and British regions lD evelopment of scientific and technical cooperation (Brits have strongly supported the candidacy of the Czech Republic for the location of one of three (besides Hungary and Romania) EU laser workplaces (ELI Project – Extreme Light Infrastructure) in the Czech Republic lO ffer of R & D facilities of Czech universities to British firms

Ing. Jan Vosmanský, CSc Ministry of Industry and Trade CNB – Czech National Bank

V-NASS, a.s. traditional supplier of precision machined components for oil&gas and nuclear industry Member of Anacot Capital Group Services: Precision CNC machining Heat treatment CMM dimensional verification Weld cladding with corrosion resistant alloys Assembly Pressure testing Non-destructive testing

Industrial branches: Oil&Gas Nuclear energy Nuclear safety systems Aviation Healthcare Renewable energy NDT

Partner companies within group: Elfe, www.elfe.cz Triangolo, www.triangolo.cz Norasota, www.norasota.eu

www.v-nass.cz www.anacot.cz

V-NASS, a.s. Halasova 2938/1a | 703 00 Ostrava-VĂtkovice Czech Republic

mobile: +420 606 728 871

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 15

ECONOMICS

www.cmi.cz

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

info@cmi.cz

CMI SERVICES  Calibration  Measuring with the most accurate 3D measuring instrument Zeiss XENOS  Verification of established measuring instruments  Outsourcing – comprehensive care of measuring instruments, especially in the automotive industry  Metrological safeguarding of readily packed goods  Approval of types of measuring instruments  Compliance assessment of non-automatic weighing instruments (Directive EU NAWI), measuring instruments (Directive EU MID) and radio and telecommunication end equipment (Directive EU RED)

 Production of reference materials in the field of physical chemistry and gas mixtures (accreditation) and other services for chemical measuring  Education and training of metrologists in the private sector  Personnel certification  Accredited provider of inter-laboratory comparisons (organisation, function of pilot laboratory, evaluation)  Consultancy, measuring audits and metrological consulting  Research, development and production of etalon radionuclide sources 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

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

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

INDUSTRY

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

FOREIGN TRADE

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

ership of goods between domestic and foreign entities – exports rose by 3.5 per cent and imports by 4.6 per cent. In terms of the national concept, the balance of trade surplus amounted to CZK 132.7 billion, CZK 30.8 billion less than in 2017.

PRICES

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

WAGES (1ST TO 3RD QUARTER 2018)

In the Q1 to Q3 period of 2018, the average gross monthly wages of employees (full-time equivalent) amounted to CZK 31 225, a CZK 2 463 (8.6 per cent) increase year on year. Real wages rose by 6.3 per cent (consumer prices in the period under review were 2.2 per cent higher). The highest absolute wage increase was shown by the public administration sector (CZK 3 715); in terms of percentage growth, the highest increase was in the education sector (12.7 per cent).

Macroeconomic Indicators of the Czech Republic 2013

2014

2015

2016

2017

2018

Gross Domestic Product (current prices)1)

CZK, billion

4 059.00

4 097.10

4 312.60

4 597.80

4 765.80

5 053.80

5 200.00

Gross Domestic Product1)

%, real, y/y

-0.7

-0.5

2.7

5.4

2.4

4.5

%, y/y

-0.8

-0.1

4.3

3.4

6.5

Registered Unemployment2)

7.4

8.2

7.5

6.2

5.2

3.8

3.1

General Unemployment Rate According to Selective Labour Force Examination3)

6,1

4.0

2.9

2.2

%, y/y

3.3

1.4

0.4

0.3

0.7

2.5

2.1

%, average

3.5

1.4

0.4

0.3

0.6

2.4

1.5

122 244

122 186

131 806

142 369

147 004

161 284

171 210

4.4

-0.1

7.9

3.2

9.7

6.1

110 078

108 622

116 209

127 486

129 272

144 491

155 632

0.7

-1.3

9.7

1.4

11.2

7.7

Industrial Production

Inflation Rate Inflation (HICP)4)

Photo: www.bigstockphoto.com

2012

Exports5)

EUR, mil.

Exports

%, y/y

Imports

EUR, mil. %, y/y EUR, mil.

12 166

13 564

15 597

14 883

17 732

16 793

15 579

CZK/EUR

average

25.143

25.974

27.533

27.033

25.643

26.33

CZK/USD

average

19.583

19.565

20.746

24.600

24.432

23.382

21.735

Balance of Trade

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

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

BUSINESS

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

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

ESTABLISHING AND INCORPORATING BUSINESS COMPANIES

Business companies in the Czech Republic are established on the basis of a Memorandum of Association. A Memorandum of Association establishing a capital company (a Limited Liability Company and a Joint Stock Company) requires the form of a public deed, i.e. it must be written in the form of a notarial record. In establishing a Joint Stock Company, the adoption of the Articles of Association is required. Where the law permits the establishment of a company by a single founder, the company is established by the founder´s deed having the form of a public deed. A Czech business company is then incorporated by entry in the Companies Register (known as a constitutive entry), which is decided by the Regional Court relevant with regard to the company’s registered office. With a view to shortening the time of registration and entry of a business company in the Companies Register, and also to saving public finances in the judicial sector, it is possible for a Notary to carry out a direct entry in the Companies Register under certain situations, namely in cases where the data being entered are based on the notarial record and when the Notary has been 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

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

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www.lalinea.cz

printed and dyed fabrics

LA LINEA s.r.o. is a textile printing, dyeing and finishing mill based in the Czech Republic. Our mill in Dvur Kralove nad Labem, 120 km north-east of the Czech capital city of Prague, was founded by Julius Löwenbach back in 1928 as a bleaching and finishing mill for cotton fabrics. With the years the production was growing into a fully equipped printing and finishing mill. Immediately after the “velvet revolution” and at the end of the socialist era our mill became part of the Swiss Textile Group of Mr. Eli Maron, at the time owner of several full scale factories, such as Mileta, Erba, Lautex and others, all factories with focus on yarn dyed cotton fabrics for men‘s shirts and ladies’ blouses. At the beginning of the 21st century, while closing the Swiss printing mills of HEBERLEIN AG in Wattwil, the Maron Group transferred the entire Heberlein technology and its know-how in high-end men‘s shirt fabrics from Switzerland to the Czech Republic, bringing LA LINEA to the highest technical level. Consequently today La Linea’s full scale production facilities guarantee to the customers shortest lead-times and permanently reliable Swiss quality standard. Only our creative department, directed from our experienced Italian designer team, remains in Italy and guarantees to LA LINEA from season to season competence in fashion and wide recognition of the clients around the world.

Production - printed and dyed fabrics Rotary printing

Digital printing

Piece dyeing

Finishing

Repeat 641 mm Reactive and pigment dyes up to 8 colours Wide design collection Cotton and linen fabrics Width up to 180 cm Production from 500 m

Reactive dyes Photographic designs Cotton and linen fabrics Width up to 160 cm Production from 120 m

Vat and reactive dyes Thousands of colour shades 100 % cotton fabrics Width up to 180 cm Production from 500 m

Bleaching Easy Care Easy to Iron Flannel brushing Tumbling Calendering

GENERAL COMMERCIAL PARTNERSHIP, LIMITED PARTNERSHIP

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

Photo: www.bigstockphoto.com

LIMITED LIABILITY COMPANY

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

JOINT STOCK COMPANY

In the Czech legal order, the Joint Stock Company is defined as a company whose registered capital is divided into a certain

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

Law Office of Hartmann, Jelínek, Fráňa and Partners www.hjf.cz Member of Czech Service International www.czech-service-international.com Note: USD 1 = CZK 21.735 (average exchange rate for 2018 announced by the Czech National Bank in January 2019) C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 21

BUSINESS

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.

Payers of personal income tax are all natural persons domiciled on the territory of the Czech Republic or those habitually resident here. The tax period is the calendar year. The tax base is the sum of all income, which the law divides into income from employment, income from business, income from lease, capital income, and other income. The basic rate is 15 %, and at the same time an additional increase of 7 % solidarity tax is payable on above-limit income, i.e. monthly income of natural persons exceeding approx. CZK 100 000 (four times the average monthly wage). Payers of corporate income tax are all types of juristic persons depending on the address of their registered office or place from which they conduct their business. The tax period is the calendar year or another twelve-month period. The tax base is the amount of profit, i.e. the difference between income and expenditure relating to the relevant tax period. Income and expenditure are ascertained from the books of accounts kept according to Czech national accounting standards. Only tax allowable expenses, i.e. those incurred to generate, secure and maintain income, can be deducted. Asset 22 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

depreciation is carried out individually. The rate is 19 %. Other taxes include Road Tax, Real Estate Tax, and Tax on the Acquisition of Real Estate.

2. INDIRECT TAXES

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

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

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

Photo: www.bigstockphoto.com

1. DIRECT TAXES

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KEY SECTORS

Czech Engineering – Tradition and Future

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

HISTORY

Industry in the Czech Lands has a very long and diversified history. Its beginnings can be traced back to the 16th century, to the time of the rule of Rudolf II, Holy Roman Emperor and Czech King. A lover of Science and the Arts, the King invited to the country masters of different arts and crafts, such as chemists, glassmakers, jewellers and builders. During his rule, the first blast furnace was built and used in the Czech Lands already in 1595. Partly due to its continuous operation, iron production could be significantly increased in the country. Real industrial development, however, started only in the 18th and the first half of the 19th century, and soon after that the Industrial and Technical Revolution broke out in full. 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

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

CURRENT SITUATION

The engineering industry in the Czech Republic can boast not only a rich history, but also, thanks to its strong representation across the whole country, the position of one of the pillars of Czech industry.

Photo: www.shutterstock.com

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

T-TYPE HORIZONTAL BORING MILL

www.retos.cz n new

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

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

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

2017 Stat. value USD (thous.)

2018 Stat. value USD (thous.)

Machinery and power generating equipment

4 436 811

4 598 905

Machinery for certain sectors of industry

4 867 689

5 348 826

Metalworking machines

1 233 903

1 313 151

General purpose machinery used in industry, not elsewhere classified

12 626 080

13 177 281

Office machines and equipment for automatic data processing

12 244 591

14 037 758

Equipment for telecommunications and sound recording and reproduction

10 911 003

13 028 859

Electric equipment, devices and household appliances, not elsewhere classified

17 963 671

18 135 593

Road vehicles

38 129 883

38 338 212

1 451 942

1 347 291

Other transport equipment Source: Czech Statistical Office

General engineering – the manufacture of machinery and equipment – employs nearly 11 000 highly skilled workers, who are the most valuable asset of the entire sector. Within the framework of

Czech industry, general engineering is one of the most important employers. Its production base, which is a guarantee of continuous improvement and enlargement of the product portfolio, is formed by more than 6 700 companies whose production comprises a very wide range of engineering products The engineering industry is spread nationwide. It is often linked with the metallurgical industry, for example, in Ostrava and environments where heavy engineering predominates. Heavy engineering is particularly concerned with the production of large-size and extra-heavy products, such as parts of ships, large aircraft and mining and metallurgical machinery. On the other hand, light engineering focuses on the manufacture of machine tools, transport equipment, e.g. cars and smaller vessels, as well as a number of other smaller machines used e.g. in the textile industry. The Czech Republic has always been one of the leading manufacturers of transport vehicles, and, due to its car-making tradition and favourable geographic position, it has become an attractive country for investment. In addition, it is showing a steady growth of revenue 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

KEY SECTORS

Klima, s.r.o. – Manufacturer of welded structures and supplier of air conditioning systems The present-day company of Klima, s.r.o., a member of AML holding, an investment company acting as an umbrella organisation for firms doing business in the area of engineering and transport services, started its manufacturing activities at the end of 1967. Today it is an important player in the field of Czech engineering. Currently the firm is mainly concerned with the manufacture of welded structures for industrial purposes, especially power engineering, metallurgical production, petrochemistry, engineering, the organic industry, agriculture and, last but not least, the manufacture of ventilators. The company intensively promotes its collaboration with foreign partners in Germany, Austria, Norway, Sweden, Belgium and Switzerland. Seventy per cent of its contracts are with European firms, currently mainly those in the Nordic states, Belgium and Great Britain. Although large ventilators only account for 15 % of its production programme, the firm is considering the expansion of this section of its production programme, together with a renowned foreign company concerned with the manufacture and development of ventilators. Klima, s.r.o. also invests in the area of engineering equipment. Recently it purchased the highly productive type WRD 150 CNC horizontal boring and milling machine, which enables large-size and heavy welded pieces to be machined.

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

REFERENCES Ventilators: Nuclear power stations: Temelín, Dukovany (Czech Republic), Jaslovské Bohunice (Slovakia), Iranshar (Iran), Neuritis (Cuba), Talkha (Egypt). Cement works: Manaus, Itabira, Itapicura (Brazil). Other: Coal mills (Alstom Power), equipment for thermal metal processing (EBNER, IUT, LOI), filtering stations, heat exchangers, radial ventilators (VENTEC, Nicotra Gebhardt), welded structures (Hertwich, Scheuch, KraussMaffei, Engel, MFL Liezen, Autefa Solution), aircraft undercarriages (MCE-Airbus).

KLIMA s.r.o. Krumlovská 38, Prachatice II, 383 01 Prachatice, Czech Republic

www.klimacz.cz

and labour productivity in this sector. Car production, followed by the production of buses and lorries, holds an unequivocally dominant position in the manufacture of vehicles. An important engineering sector is the production of rail vehicles, their repair and modernisation. All kinds of rail vehicles, underground railway trains, tramcars and trolley buses are made in the Czech Republic. Aircraft production is one of the top engineering production sectors using new materials and it has initiated technical progress in a number of other sectors. An important position is held by the production of training jet aircraft and light combat aeroplanes, regional aircraft, training and sports aeroplanes, gliders, aircraft components and, last but not least, the production of ultralight planes. Another engineering sector faring well in the Czech Republic is the manufacture of river and river-seagoing cargo vessels, sports boats, yachts, motorcycles, and bicycles. Hot air balloons are also made in the Czech Republic, and mention should also be made of the Czech Space Programme. A very important part of the engineering sector is the manufacture of equipment for industry and construction, the production and repair of steam and water turbines, pumps and compressors. The Czech Republic is also a manufacturer of machine tools and forming machines and electric hand tools, whose quality competes well with the top world standards.

EXPORT

Czech engineering is a traditionally important export-oriented sector. Up to 80 to 90 per cent of its output is exported. In export,

engineering products are the source of the highest proportion of value added and its products are among the best-selling in foreign markets. As regards the territorial structure of Czech foreign trade, its traditionally largest trade partner is Germany, followed by the UK, France, Slovakia, Poland, and Spain. In 2017, the export of machinery and transport vehicles (SITC 7) amounted to USD 103 865 574 billion. The Czech Republic is the only state in Central and Eastern Europe (CEE) which is a member of the prestigious European Committee for Cooperation in the Machine Tool Industry (CECIMO).

THE FUTURE

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

GF MACHINERY s.r.o. MACHINES AND EQUIPMENT FOR TECHNICAL FIBER AND FABRIC PROCESSING SPECIAL LINES AND EQUIPMENT FOR AUTOMOTIVE INDUSTRY

Our main program is: A) machines and lines for technical yarn and fabric processing (mainly for fiberglass) n Online/Offline Choppers n Roving lines (Braking tension system, Creels, Driers) n Printing lines for logo printing onto glass mesh n Finishing equipment: Slitting& Formatting lines, Chemical Treatment lines n Laminating lines n Special individual lines per customer request

B) special machines and lines for automotive industry n Headliners production lines (Fiberglass chopping line for adding of chopped yarn to car roofs-headliners production) n Coating lines for car interior foils processing (coated by “hotmelt” method) n Electric presses (up to 200kN)

www.gfm.cz

GF Machinery_A_185x128_VB2018.indd 1

Contact:

Jan Janota, Sales Director GF Machinery s.r.o. n Kastanova 141d n 617 00 Brno n Czech Republic Cell: +420 603 235 977 n Tel.: +420 53 0555 100 n Fax: +420 530 555 155 19. 9. 2018 14:15:22

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

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

Stat. value USD (thous.)

2009

60 635 649

2010

72 606 952

2011

89 163 034

2012

85 099 298

2013

87 467 453

2014

96 291 953

2015

87 542 996

2016

91 585 417

2017

103 865 574

2018

117 709 110

Source: Czech Statistical Office

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

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

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

Photo: pixabay.com

KEY SECTORS

Contact: 4 U Color, s.r.o. Dělnická 469/98 | 405 02 Děčín | Czech Republic tel.: +420 412 523 585 | +420 602 145 343 e-mail: color4u@volny.cz

4U Color, s.r.o. was founded in 1996 and since its inception it has been engaged in metal working and colour powder coating. Its regular customers are firms in Germany, Belgium and the Netherlands, in addition to domestic clients. We meet all their requirements and work according to their drawing documentation

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

for lighting fixtures including assembly

w w w. 4 u co l o r. c z

C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 29

KEY SECTORS

www.vtchomutov.cz Válcovny trub Chomutov a.s. is a traditional manufacturer of hot rolled seamless carbon and alloy steel pipes since 1890. We focus on large diameter pipes from 273 up to 660 mm (10“-26“). Having an own steel mill, we can control our product quality from the very beginning and are able to satisfy customers´ individual steel quality requirements. Our quality, experience and flexibility keep us among top suppliers serving our customers in more than 47 countries worldwide. Our pipes can be used in many various applications, eg. oil & gas, power engineering, petrochemical and mining industry, constructions etc. Our mill has been approved and products accepted by many well-known companies.

Address: Válcovny trub Chomutov, a.s. Tovární 629 | 430 01 Chomutov | Czech Republic 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

Contact: Lukáš Jansa Telephone: +420 733 733 189 | E-mail: jansa.lukas@steel-holding.cz

Power Industry in the CR – Stable and Prospering Sector AMONG THE FIRST TEN LARGEST ELECTRICITY EXPORTERS IN THE WORLD The power industry is one of the most important sectors in the Czech Republic. Its strength is based not only on the long years of its continuous development, ingenious use of resources and the manufacture of power generating equipment, but also on the self-sufficiency of the Czech Republic in electricity and heat production. This self-sufficiency is secured mainly by domestic brown coal deposits and also the use of nuclear fuel. As a member of the European Union, the Czech Republic is bound by common standards and commitments. This means reducing negative impacts of electricity production on the environment, supporting alternative and renewable energy sources and also the development of new energy-saving technologies. The Czech Republic is one of the few EU member states which comply with these commitments.

VISION FOR THE NEXT 25 YEARS

The actual situation and the evaluation and vision of this sector for the future are summed up in a document called Updated State Energy Concept (ASEK), dating from 2015 and encompassing the next 25 years. The primary targets are the maintenance and development of the diversity of power production, which means a balanced mix of primary energy sources, development of the web infrastructure of the Czech Republic within the framework of Central European countries, strengthening of international cooperation, and electricity and gas market integration in the region, including the creation of an efficient and operational common energy policy of the European Union, support of research, development and innovation, support of education and, last but not least, raising the country´s energy safety and resistance. Development and structure of gross electricity production 100 000 90 000

Renewable and secondary energy sources

80 000 70 000

Other fuels

60 000

Nuclear power

GWh

50 000 Other gases

40 000 30 000

Natural gas

20 000

Brown coal

10 000 Black coal

0 2010

2015

2020

2025

2030

2035

2040

Photo: Škoda Auto a.s.

Source: Ministry of Industry and Trade, www.oenergetice.cz, www.usinessinfo.cz

ELECTRICITY PRODUCTION AND EXPORT

Steam thermal power plants account for the largest share of electricity production in the Czech Republic (53.6 per cent of electricity produced and supplied to the grid), followed by nuclear power plants (29.4 per cent), steam-and-gas power plants (5.2 per cent),

gas and combustion plants (4.4 per cent), photovoltaic plants (2.7 per cent), hydroelectric power plants (2.6 per cent), pumped storage plants (1.5 per cent), and wind power plants (0.6 per cent). Heat is produced mainly in co-generation power plants as a side product in electricity production or in city heating plants; co-generation is a very widely used and highly developed system in the Czech Republic. Nuclear energy is produced in the Temelín and Dukovany power plants, to which the addition of new energy blocks is planned. Since its launch in the year 2000, the Temelín nuclear power plant has figured continuously among the first ten largest electricity exporters worldwide. Considerable amounts of electricity cross the border to neighbouring Austria and Slovakia. Most of the exported electricity is generated by the Temelín and Dukovany power plants.

CZECH POWER INDUSTRY AND THE WORLD

The Czech power industry has an outstanding reputation and its products rank among the best in the world. It offers excellent quality at a friendly price. Rival firms in Asia combine their power plants with American and European technologies. Therefore a good possibility exists for Czech sub-deliveries to become included in the supplier chain. Czech manufacturers can successfully compete with rival firms, also offering lower prices combined with new products and consulting in the energy sector. Czech firms participate in the construction of power plants and the supply of products in practically all parts of the world, whether this concerns nuclear, thermal, hydroelectric or solar power plants. The participation of Czech firms in the construction of nuclear power plants abroad is essential, one reason being that currently no nuclear reactor is being built in the Czech Republic. The following are a few examples of projects which Czech firms have realised abroad or participated in their realisation: Czech manufacturers participate, for example, in the modernisation and reconstruction of 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

w w w.ecotex.cz Ecotex s.r.o.  we have been involved in the field of dry and liquid industrial filtration for almost 40 years.  The strategy behind our active approach to repairing environmental damage has made us the long-term leader in our field. We try to understand the needs of equipment manufacturers and operators by maintaining continuous contact with them, we try to fulfil their requirements and exceed their expectations.

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

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

Russian and Ukrainian nuclear blocks, and a Czech company will participate in supplying equipment for the control of protection systems for the Metsamor power plant in Armenia. A turbine built in Plzeň will serve on the Indonesian island of Java. The turbine is a part of a wider project – overall enlargement of the Grati power plant, in which a number of firms from different countries are participating. Another Czech company has realised dozens of projects in the area of photovoltaic plants with a 30 megawatt aggregate installed output. They include projects in Slovakia, Romania, and now in Chile. In addition to a project in Cuz-Cuz near the city of Illapel, situated about 300 kilometres north of the capital of Santiago, the company is preparing another two projects of the same output – La Fortuna and Ampare del Sol solar parks in Chile. In future, the firm is also planning to focus on Iran, Mexico, and Argentina. There are several companies on the Czech hydro-energy scene, building hydroelectric power plants not only in Europe, but also in Africa, Asia and South America. They are both green field projects and the reconstruction and development of hydroelectric power plants.

CZECH KNOW-HOW

The Czech Republic, together with the USA and China, are three countries which can boast of mastering extensive know-how in the use of salt technologies in the nuclear power industry. Less known, for example, is the fact that a new product of the future is coming to life, thanks to Czech-American collaboration. The onset of small nuclear reactors is

expected in about ten years. In this connection, mention should be made of small salt reactors, which offer many advantages when compared with current nuclear blocks – greater safety, efficiency and flexibility.

ATTRACTIVENESS FOR FOREIGN INVESTORS

From the foreign investors´ point of view, the Czech Republic is very attractive in the area of power engineering, both as regards legislation and future development. Investment is expected in production facilities, raising the capacity of cross-border facilities and protection against overflows from renewable sources, especially from Germany. Equally, more investment is to be expected in the critical infrastructure in the area of distribution and the completion of the North-South backbone gas infrastructure. The parameters of ASEK and the proposed method of net sector regulation create favourable conditions for a good return of invested capital. Source: Ministry of Industry and Trade, www. oenergetice.cz, www.usinessinfo.cz

Templar Wine Cellars Čejkovice If you love wine and traditions... The history of the winery Templar Wine Cellars Čejkovice is connected to the arrival of the mysterious Templar Knights Order in Čejkovice in 1248. Together with planting vineyards, the Templars built extensive wine cellars, in which the company still operates today. In 1936, a wine cooperative was established in Čejkovice, followed by Čejkovice Templar Cellars (Templářské sklepy Čejkovice) since 1992. The cooperative currently comprises 360 grape growers. Our vineyards are located in three Moravian wine-growing areas. The area of vineyards cultivated by our grape suppliers is approximately 1,500 hectares. Thanks to the varied subsoils, different locations and weather conditions, the customer gets a wide portfolio of top-quality wines that are regularly awarded with medals at both national and international competitions. The company operates in the historical cellars where more than 350 000 litres of wine in oak and barrique barrels are stored; the extensive bottle ripe wine archive is very attractive as well. Sparkling wines mature naturally in the cellars, too, their quality ranking them among the best in the Czech Republic, with a number of awards won. There is an additional capacity of 6 000 000 litres in the technological buildings in Čejkovice, where a modern bottling line with a capacity of up to 2 000 bottles per hour is located. We offer a wide portfolio of quality wines to our customers – quality varietal wines, barrique, attributive, archive, ice, and straw wines. For more information about the cooperative and the wines, visit www.templarske-sklepy.cz/en/

Templářské sklepy Čejkovice, vinařské družstvo, 696 15 Čejkovice 945, Czech Republic Ing. Tomáš Kubík, phone: +420 518 309 011, e-mail: kubik@templarske-sklepy.cz C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 33

KEY SECTORS

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

EXPORT ARTICLES

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

FOOD INDUSTRY AND AGRICULTURAL MACHINERY

Manufacturers of food industry and agricultural technologies and machines, too, have been doing well in recent years. These technologies and machines are exported to Belarus, the Russian Federation and Georgia, as well as to Albania, Bulgaria, Kazakhstan, Mexico, Uruguay, and Ethiopia. Foreign companies are showing interest in bakery and brewery equipment, mini breweries, dairies, and cheese-making equipment. Other export articles of Czech firms include vegetable oil presses, smokehouse equipment, vegetable packing lines, beverage processing and packing lines, meat processing equipment, and 34 C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r

CZECH PRODUCERS

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

Photo: pixabay.com

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

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

Export of selected kinds of goods from 2016 to 2018 Code

Kind of goods

2016

2017

2018

1001

Wheat

11 589

2874.2

10 729

2540.7

8 359

1 874.70

1514

Rape oil

11 127

525.9

6 872

313.9

4 996

263.6

2309

Animal feed preparations

9 003

434.6

10 537

491.2

11 237

511.9

1905

Baked goods 9 634

167.6

9 545

173

9 902

178.4

401

Milk and cream

6 791

822.1

8 487

845

8 813

900

2106

Food preparations

7 288

55.6

7 969

65.7

8 509

66.6

2203

Beer

6 246

448

6 149

465

6 727

521

1701

Sugar

4 147

330.6

3 705

309.1

3 240

318.1

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

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

its unique properties. It is also intended to prevent beer brewed in the Czech Republic from using non-traditional methods or beer made with the use of traditional methods, but in a country other than the Czech Republic, from being labelled as Czech beer. There are different brands of Czech beer, which differ in taste and the method according to which they were made. For example, light beer alone can be made by a number of different methods. Each brewery has its own recipe; the breweries may use different fermentation methods, let the brew ferment for a longer or shorter time at a lower or higher

Clock_inzerĂĄt_185x128mm_AJ.indd 1

temperature, and they may use different kinds and types of vessel for fermentation. Besides the renowned big breweries, there are some 400 mini breweries in the Czech Republic, and their number is growing continuously. Most beer is exported to Slovakia, Germany, and Poland. Out of the non-European countries, the largest importers are Russia, South Korea, and the USA. Wines from the Czech Republic, too, are increasing their export potential. They have a good reputation in Europe and are often winners of international competitions, defeating traditional champions. Winegrowers are also striving to enter non-traditional markets, where the Czech Republic is known rather for its beer and sportsmen. Most Czech wines are exported to Slovakia, Poland, and other EU countries.

EXPECTATIONS AND OBJECTIVES

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

13:04:28 C z e c h R e p u b l i c â&#x20AC;&#x201C; Yo u08.11.2018 r Tr a d e Pa r t n e r 35

KEY SECTORS

178 YEARS OF LUMP SUGAR, AN INVENTION BORN IN DAČICE

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

Photo: pixabay.com

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

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 Skoupil Family Winery was founded in 1992 by its current owner, Petr Skoupil, winemaker and grape grower in one person. The winery is known for the quality of its wines. We are regular winners in competitions and at wine exhibitions at home and abroad. The recognitions we value most are our victories and awards in the Winemaker of the Year Competition in 2008, the Silver Winemaker of the Year 2010 competition, the Absolute Champion Prague Wine Trophy 2013, the Vinum Juvenale 2012 Champion, four fold Best of Nation in San Francisco and the ranking of our Red Tramin among the world´s 1000 best wines according to the Vinalies Paris competition.

Together with Design Studio Pergamen we won the Reddot Design Award for our new Terroir label. At the label change we divided our wines into four sections – Ceramics, Terroir, Reserve and Limited.

Our wines owe their high quality to tradition based on respect to nature and the soil combined with modern processes. We treat the grapes with utmost care using the unique grape berry sorting method. The result is variety pure and extremely interesting attributive wines. Their typical features are the wide range of primary aromatic substances and especially their strong fruit character with minimum bitters content.

The winery operates an e-shop, www. skoupil.com, where you can purchase the full range of the Skoupil winery wines, gifts, vouchers, etc..

WWW.SKOUPIL.COM ESHOP WITH UNIQUE WINES

RODINNÉ VINAŘSTVÍ SKOUPIL, SADOVÁ 1399, 691 02 VELKÉ BÍLOVICE, +420 776 700 783., INFO@SKOUPIL.COM

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

KEY SECTORS

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

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

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 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

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

CZECH NANOTECHNOLOGIES IMPROVE QUALITY OF LIFE IN LONDON On 23 October 2018, Czech Nanotechnology Day took place at the Embassy of the Czech Republic in London. Czech Nano Day in London, a project of the Embassy’s economic diplomacy, introduced innovative products from 12 Czech companies in the area of nanotechnology. Czech nanofilters produced drinkable water from the River Thames, Czech nanobatteries demonstrated their potential to develop renewable resource strategies, and a Czech photocatalytic nano-coated wall cleared vehicle fuel emissions from the atmosphere in surrounding areas. The personal attendance and address by the Rt Hon Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, confirmed that Czech Nanotechnologies have an excellent reputation globally, as well as having an open door for acquiring business and scientific partnerships. Czech Nano Day showed that Czech expertise in the field of nanotechnology is already well known. For example, many UK universities use electron microscopes and nanofibers manufactured in the Czech Republic. Currently, the size of the UK economy and advances in research provide the opportunity for Czech companies to increase their market share and for universities to increase their collaboration in research and development.

+420 483 313 032, 033 +420 483 311 360

sales@elitronic.cz www.elitronic.cz

U Šamotky 1642 46311 Liberec 30 Czech Republic

Development and Production of Industrial Electronics Production • Three fully automated SMT lines • Automatic optical inspection, selective soldering, painting and coating, automatic testing • Production according to IPC-A-610 • Medium and large serial production • Prototype and functional model production

Development • Rich experience in industrial electronics development • Full-range SW + HW designing (control, measuring, monitoring systems) • Prototype testing (climate, vibrations, aggressive environment, EMC, etc)

Quality management system • ISO 9001: 2015 • Development and production according to NATO – AQAP 2110 standard

Elitronic _AJ_185x128.indd 1

8. 10. 2018 10:50:58

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

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

www.kapesniky-horice.cz C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 39

KEY SECTORS

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

40 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

ALL-ROUND EQUIPMENT

A number of Czech suppliers of medical equipment have entrenched themselves in highly competitive foreign markets in recent years. These companies put emphasis primarily on three key factors: Research, leading to reaching high technical parameters; Design, aiding in selling the product; and Quality, resulting in the productsâ&#x20AC;&#x2DC; reliability. A combination of all these criteria can be found, for instance, in medical instruments and traumatological implants, rehabilitation and transport equipment, medicinal and technical gas distribution systems, stabilisers, cobalt radiators, anaesthesiological equipment, and adjustable hospital beds. The value of the export of medical equipment abroad is estimated at 25 billion crowns (approximately USD 1.3 bil.). The majority of this is equipment for operating theatres and inpatient wards. The world leader in this segment is the Linet Group, supplier of medical and nursing beds, furniture, anti-pressure-sore mattresses and more.

Photo: www.bigstockphoto.com

On the territory of the Czech Republic, healthcare offers a wide range of outpatient facilities, hospitals and medical institutions under the patronage of not just the state, but various private entities as well. Czech companies rank among the best in the field of the manufacture and supply of medical materials, devices and equipment for hospitals. Every year, their products travel to a number of countries worldwide. Outside of European Union countries, they find their way to the Russian Federation, the Commonwealth of Independent States, territories in south-eastern Asia, the USA, and recently also to Africa, among others. Czech companies are finding an increasingly solid foothold by supplying products and devices with added value, meaning with a high contribution from research, electronics, and information technologies. Czech exporters focusing on medical supplies of all kinds have experienced rapid growth in the last ten years. They are successful in acquir-

ing lucrative contracts for providing not just individual goods and services, but for equipping entire hospitals, health centres and healthcare chains, including the construction of such facilities. Examples of these can be found in Ghana, Gabon, Laos, Algeria, Trinidad and Tobago, Papua-New Guinea, Columbia, and even Russia and Kazakhstan. For instance, they had a hand in building three hospitals in Gabon and ten health centres in Ghana alone.

Czech Business and Trade

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

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

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

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 41

KEY SECTORS

The company has expanded its range of products with birthing, gynaecological, and dialysis chairs. Of course, Linet is not the only Czech company to find success on foreign markets. The majority of such companies believe strongly in running their own development, indicating that this is the way to beating the competition.

EMPHASIS ON QUALITY

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

THE LARGEST PRESENTATION OF CZECH MEDICAL TECHNOLOGY IN THE UK IN RECENT YEARS On 25 October 2018, as a part of ‘Czech Week’, the Embassy of the Czech Republic in London hosted probably historically the largest presentation in the UK of the Health Industry of the Czech Republic. The morning „Czech Heart Day“ Conference brought together more than 70 Czech, British and international cardiologists, medical professionals, company representatives, and journalists. Twelve top cardiologists (including one each from the Czech Republic and the UK) collaborated in presenting their specialisms in selected areas of care for the human heart. During the Conference, awards were also presented to eminent professors and doctors who have contributed most to the development of Czech-British relations in the field of Cardiology. The Cardiology Conference was followed by „Czech Medical Devices Day“, organised by the Czech Embassy in London in cooperation with the Association of Manufacturers and Suppliers of Medical Devices (AVDZP). The occasion was used to present outstanding results of Czech medical care, especially in areas such as heart care, paediatrics and neonatology, and the expertise of Czech manufacturers of medical devices. The panel titled “Cardiology and the Gastrointestinal Tract” presented innovative stents, external cardio stimulators, revolutionary technology suitable for the manufacture of tubular systems, such as venous stents and urinary catheters, marked for their low infection risk and greater patient comfort, and research facilities of the International Clinical Research Centre attached to St. Anne’s University Hospital in Brno, which also provides collaboration in the clinical testing of new medical devices to its British partners. The “Medical Technologies” panel presented a wide range of surgical, orthopaedic, and traumatological instruments and comprehensive services provided in the area of healthcare gases, which already has a number of successful installations in the UK, as well as preventive diagnostic and telemedical programmes for the cardiovascular system. The panel named “General Healthcare” presented innovative preparations for wound coverage with a nanoscale layer, disposable surgical sets and conventional and innovative clothing and textiles for healthcare firms. During the networking programme which followed, representatives of Czech firms discussed the possibilities of collaboration with their British partners. On the British side, participants included representatives of the British public healthcare system, private hospitals, pharmacies, British associations of medical device manufacturers and distributors, medical practitioners and medical material distributors seeking new business opportunities.

www.mzv.cz/london Association of Producers and Suppliers of Medical Devices (AVDZP), Businessinfo.cz 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

KOSMETIKA CAPRI

Manufacturer of Original Czech Goat´s Milk Cosmetics Brands Some might seek a French manufacturer behind the La Chèvre and Le Chaton cosmetics brands. Far from it! Those products are made by the purely Czech company Kosmetika CAPRI according to its own original recipes, which are currently absolutely unique worldwide. The basis of those recipes is rare goat´s milk components suitably complemented with raw materials of marine origin and plant extracts. No other cosmetic firm in the world offers preparations conceived in this way. In addition, demanding clinical testing confirmed their suitability also for sensitive skins and for allergics and people suffering from psoriatis and atopic disease. A feature of both these brands is that they contain a considerably high percentage of active natural substances and a minimum amount of chemical (preservative) substances. They comprise a complex of rare, vitally important elements, which have a favourable effect on all types of complexion. This complex is formed by whey, fat or goat´s milk cheese and a unique biological system rich in natural antioxidants, which hydrates the skin, protects it from harmful environmental effects and slows down its aging.

Kosmetika CAPRI s.r.o.

Čím 97 | 262 03 Nový Knín | Czech Republic

| Phone: +420 800 191 999 | E-mail: lachevre@kosmetikacapri.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 43

KEY SECTORS

Karlovy Vary

The Czech Republic, Attractive Tourist Destination The Czech Republic is one of the countries with a 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.

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

the rise year on year. Currently, tourism accounts for about 3 per cent of the Czech gross domestic product and employs more than 230 000 people.

CONGRESS CAPITAL

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

Photo: CzechTourism (Ladislav Renner, Libor Sváček)

The number of guests accommodated in collective accommodation facilities in 2017 for the first time exceeded 20 million, which is 1.7 million more than in 2016. Estimates for 2018 show that in that year, too, the number of guests will be above that limit. The total number of foreign visitors, including those who in the first three quarters of 2018 did not stay in collective accommodation facilities or who came to the Czech Republic only for one day, was 27.8 million, a 4.8 per cent increase year on year. Since 2012, the number of visitors accommodated in hotels, guesthouses and other accommodation facilities has risen by more than 30 per cent. Most people visiting the Czech Republic come from Germany, followed by Slovakia, Poland, Russia, and the USA. The number of visitors coming to the CR from those countries has been steadily increasing over the past six years.

A great increase is shown in the number of tourists coming to the CR from China and South Korea. The number of visitors coming from Japan and Taiwan is growing as well. In contrast to the situation in 2015 and 2016, the number of Russian tourists is also on

Guests accommodated in collective accommodation facilities (hotels, guesthouses, camps, etc.) in 2017 Total number of guests

20 000 561

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

Non-residents

10 160 468

IN PURSUIT OF HEALTH AND RELAXATION

SPA SELECTION

With the change of lifestyle in recent years, Czech spas have extended their standard offer of curative treatments with new forms of relaxation, regeneration and anti-stress programmes suitable for overworked entrepreneurs and managers. These special extended programmes, combined with a range of accompanying recreational activities (golf, tennis, fitness, cycling, etc.), are offered by about 40 spa localities in the Czech Republic. Notably, the aforementioned golf is increasingly reflected in the favourable tourism statistics. So much so that numerous quality courses are situated close to natural beauty and heritage sites. More than 130 golf clubs operate in the Czech Republic and lovers of this game can use more than 70 golf courses. Those of the best quality, with the highest standard of services, have been set up around the capital city of Prague, in what is known as the West Bohemian Spa Triangle near Karlovy Vary, and in Northern Moravia.

Residents

9 840 093

Germany

1 962 582

Slovakia

681 917

Poland

575 643

Russia

548 318

United States of America

540 572

China

489 845

United Kingdom

470 106

South Korea

415 555

Italy

389 578

Austria

291 126

France

289 583

Other Asian countries

261 141

Netherlands

248 265

Spain

247 663

Israel

183 948

Hungary

164 513

Taiwan (Chinese province)

164 249

Ukraine

147 570

Sweden

143 027

Other European countries

130 729

PRAGUE Prague is ranked among the world´s ten greenest cities, according to a study by the Dutch TravelBird Company. In terms of square metres of greenery per head of the population, Prague ranks 6th, but in the percentage of the total surface area of the city, it is placed 1st. Ranking 1st In terms of square metres of greenery per head is Reykjavik with 410.84 sq. metres. In next place is Auckland in New Zeeland with 357.2 sq. metres, followed by Bratislava with 332.99 sq. metres and Prague with 220.54 sq. metres of greenery per capita. Greenery occupies 56.74 per cent of Prague´s total surface area, ranking it 1st, with Hamburg coming 2nd with 45.42 per cent and Madrid 3rd with 44.85 per cent. Prague C z e c h R e p u b l i c – Yo u r Tr a d e Pa r t n e r 45

INSTITUTIONS

Institutions Present Themselves

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

INTERNATIONAL TRADE PROMOTION

WE ARE

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

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

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

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

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

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

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

lO ver 135 significant individual member companies

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

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

lC reating a business friendly environment for entrepreneurs and international investors

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

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

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

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

CENTRE FOR REGIONAL DEVELOPMENT OF THE CZECH REPUBLIC – ENTERPRISE EUROPE NETWORK Centre for Regional Development of the Czech Republic (the Centre) was founded by the Ministry for Regional Development of the Czech Republic and is the implementing agency for European funding programmes. The Centre hosts one of the offices of the Enterprise Europe Network (EEN), a largest international network (with more than 600 partners worldwide) set up and run by the European Commission with the purpose of supporting businesses. Its consortium based in the Czech Republic (CR) consists of six partners in four cities – Praha, Brno, Plzeň, and Ostrava. The mission of the EEN is to help especially small and medium-sized enterprises (SME) with entering the EU and foreign markets and doing business there. Its experts provide comprehensive advisory services to businesses with the aim of broadening the international cooperation of companies, raising the innovative potential of enterprises in the EU and helping SMEs to become integrated more widely in the EU framework programmes. To foreign clients the Centre – EEN Praha office offers: information about the CR, about the business environment in the CR, Czech legislation, about how to find Czech partners for cooperation, information about starting a business in the CR, sources of financing from Structural Funds and other information. Services of the Enterprise Europe Network are funded from the European Union’s COSME Programme (2014-2020) under the grant agreement No. 831241 and by the Ministry of Industry and Trade of the Czech Republic.

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

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

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

CZECH BUSINESS PARTNER SEARCH If you are looking for a partner to assist you with production, you can approach our specialised team with your specific request. CzechTrade will gladly help you to get in touch with the relevant Czech companies. lP ersonal consultation & fillable on-line form at http://www. czechtradeoffices.com/en/services/ czech-business-partner-search l L ist of relevant Czech companies and facilitation of access to selected ones SOURCING DAYS Tailored event according to your needs Specify your product/services requirements, define qualifications for a potential supplier, and we will organise one-to-one meetings followed by arrangement of company visits in the Czech Republic. This service saves you time: lP recise knowledge of Czech manufacturers and their production potential lB espoke market screening – we identify potential suppliers as per your requirements l S uppliers shortlist – after reviewing each applicant’s profile, we select companies you wish to meet lA ll-inclusive package – from providing meeting rooms to accompanying you to companies premises, we cover it all

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

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

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

CZECH TOURISM AUTHORITY – CZECHTOURISM

CZECH CENTRES

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

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

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

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

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

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

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INSTITUTIONS

CZECH BRITISH CHAMBER OF COMMERCE

CZECH CHAMBER OF COMMERCE

The objectives of the CBCC

WHO WE ARE l I ndependent public institution of entrepreneurial

The primary objectives of the CBCC are to: lp romote the development of Czech and UK economic relations; lp rovide a platform for the Czech and British business communities to network and develop their business and common interests; lp romote awareness of the business, commercial, industrial, and professional expertise of its members; lp rovide business and professional guidance or support, where applicable, to its members or Czech companies considering doing business in the UK/British companies looking to invest in the Czech Republic. Proposed CBCC activities and initiatives It is anticipated that a wide range of activities will be initiated in order to meet the above objectives. These will include the following activities: lh olding meetings, seminars, conferences and networking events; lb uilding a network of individuals and companies, that facilitates and encourages advice, support, and the sharing of knowledge; l c ollecting and distributing relevant business information; l a ffiliation with or representation on other bodies that would further the interests of the Chamber and its members, both at national and international levels; ld iscussions with relevant UK and Czech authorities on any issues affecting the development of trading and investment between the two countries; l r eferral of enquiries to Czech and British official bodies, businesses and professionals, as appropriate; ld evelopment of a website that supports communication and networking for all members.

self-governance

l L argest and most representative business association in the Czech Republic including small, medium, and large companies, self-employed entrepreneurs, associations, unions, and craftsmen organisations lN etwork – regional (regional and district chambers) and professional (unions, associations, etc.) lP latform for 15 thousand members representing more than 60 % of GDP of the country and 66 % of employable population in the Czech Republic in non-compulsory membership scheme lM ember of European and international organisations

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

lO rganisation of business missions accompanying state and government officials on their visits abroad

lO rganisation of business forums, seminars, round tables etc., targeting particular country or territory

lO rganisation of bilateral meetings between Czech entrepreneurs and foreign business delegations

l I nvolvement in various European Commission’s programmes l S upport to foreign companies in finding suitable business partners in the Czech Republic

lP ublishing foreign demands, offers or tenders on Chamber website

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

lC ZECHPoints (registers, documents, certificates, services, etc.) Česko britská obchodní komora UHY Offices Quadrant House 4 Thomas More Square London, E1W 1YW Phone: +44 (0)2072164623 Fax: +44 (0)2077672601 l More information at www.cbcc.org.uk l

over 50 one-stop-shops throughout the country

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

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

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

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INTERNATIONAL CHAMBER OF COMMERCE / ICC ICC is – and has been throughout its long existence – a steadfast rallying point for those who believe, like our founders, that strengthening commercial ties among nations is not only good for business but also for global living standards and for peace. ICC was founded in 1919 in Paris. Today, ICC represents 6.5 million companies and associations in more than 130 countries and transmits their interests to high official representatives including the UN, EU, WTO, OECD, and G20, where ICC has been granted the highest level consultative status. Prestige Being an ICC member is a question of prestige. Principles ICC creates rules and principles that are fully respected and used in everyday business and have become one of the most important pillars of international trade. Partnership ICC provides a large portfolio of services fundamental for foreign trade, such as educational and advisory services, as well as creating opportunities for establishing partnership with foreign business partners. ICC Czech Republic was founded in 1999. The main aim of ICC Czech Republic is to assist Czech companies and other businesses to integrate into world events through this prestigious world organisation. Territorial workshops Main aim of these workshops is to support the efficiency of Czech economic diplomacy under the presence of Czech ambassadors to introduce trade and investment opportunities to Czech exporters, to help to diversify Czech exports to perspective markets and to help to establish useful business contacts. In the period of 2017/ 2018, these workshops were focused on e.g.: Greece, Thailand, Nigeria, Albania, Belarus, Latvia, Ukraine, Iceland, the USA, Cuba, Kuwait and Qatar, Macedonia, Romania, Ireland and many others. Seminars, professional courses Our extensive range of educational programmes is targeted at specific topics associated with conducting international trade. Lecturers include experts and professionals with long-time experience or managers working in the given field – Incoterms 2010, Bank guarantees and experience with URDG 758, Documentary Credits and Standbys – International Standard Banking Practice and Practices in the USA, Terms of international sale contract in foreign trade.

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

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

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

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CO N TAC TS

Useful Contacts USEFUL CONTACTS IN THE CZECH REPUBLIC Embassy of the United Kingdom of Great Britain And Northern Ireland Thunovská 180/14 118 00 Praha 1 Phone: +420 257 402 111 Fax: +420 257 402 296 Email: ukinczechrepublic@fco.gov.uk web: www.ukinczechrepublic.fco.gov.uk

MINISTRIES Ministry of Foreign Affairs Ministerstvo zahraničních věcí www.mzv.cz Ministry of Industry and Trade Ministerstvo průmyslu a obchodu www.mpo.cz Ministry of Agriculture Ministerstvo zemědělství www.mze.cz Ministry of Transport Ministerstvo dopravy www.mdcr.cz Ministry of Finance Ministerstvo financí www.mfcr.cz Ministry of Regional Development Ministerstvo pro místní rozvoj www.mmr.cz Ministry of the Environment Ministerstvo životního prostředí www.mzp.cz Ministry of Labour and Social Affairs Ministerstvo práce a sociálních věcí www.mpsv.cz

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Kroměříž – Flower Garden

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

USEFUL CONTACTS IN THE UNITED KINGDOM Embassy of the Czech Republic 26-30 Kensington Palace Gardens London W8 4QY Phone.: +44 20 7243 1115 Fax: +44 20 7727 9654 E-mail: london@embassy.mzv.cz web: www.mzv.cz/london

Photo: CzechTourism (Libor Sváček)

British Chamber of Commerce Florentinum, 2nd Floor Na Florenci 15 110 00 Praha 1 Phone: +420 277 009 937 Email: info@britcham.cz web: www.britishchamber.cz

Honorary Consulate of the Czech Republic Belfast PO Box 8, 20 Comber Road Newtownards BT 23 4RX Phone: +44 28 91812424 Fax: +44 28 91818844 E-mail: belfast@honorary.mzv.cz

26-30 Kensington Palace Gardens London W8 4QY Phone.: +44 20 8748 3695 +44 77 8523 1520 E-mail: london@czechinvest.org web: www.czechinvest.org

Honorary Consulate General of the Czech Republic Edinburgh 12a Riselaw Crescent Edinburgh EH10 6HL Phone/Fax: +44 131 447 9509 E-mail: edinburgh@honorary.mzv.cz

CzechTourism (Great Britain + Ireland) Embassy of the Czech Republic 26-30 Kensington Palace Gardens London W8 4QY Phone.: +44 203 220 0184 E-mail: london@czechtourism.com web: www.czechtourism.com

Honorary Consulate General of the Czech Republic Gibraltar Bland Group International, Cloister Building, Irish Town, GX11 1AA Gibraltar Phone: +350 5401 6747 Fax: +350 2007 6189 E-mail: gibraltar@honorary.mzv.cz CzechTrade 26-30 Kensington Palace Gardens London W8 4QY Phone.: +44 207 7925 951 (Phone) +44 774 6364 109 (Mobile) Fax: +44 20 7221 5537 E-mail: london@czechtrade.cz web: www.czechtrade.co.uk CzechInvest Embassy of the Czech Republic

České centrum (Czech Centre) Embassy of the Czech Republic 26-30 Kensington Palace Gardens London W8 4QY Phone.: +44 20 7836 3669 E-mail: info@czechcentre.org.uk web: www.czechcentre.org.uk Czech British Chamber of Commerce UHY Offices Quadrant House 4 Thomas More Square London, E1W 1YW Phone: +44 (0)20 7216 4623 Fax: +44 (0)20 7767 2601 web: www.cbcc.org.uk

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

CO N TAC TS

The Most Important Websites General information on the Czech Republic

www.czech.cz

Official site for the CR

BusinessInfo

www.businessinfo.cz

Doing Business in the Czech Republic

www.doingbusiness.cz

Portal of the Public Administration

www.vlada.cz

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

Company Contact Information ARES

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

Hoppenstedt Bonnier

www.hbi.cz

The most important companies in the CR and the SR

Inform.cz

www.inform.cz

Czech Company Catalogue

Kompass

www.kompass.com

Czech Company Catalogue

European Databank

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

Information operator

Iuridika

http://iuridica.eunet.cz

Directory of legal services and official bodies

Portal of Czech judiciary

www.justice.cz

Course of legal proceedings

Czech National Bank

www.cnb.cz

Monetary, financial, and macroeconomic data

Prague Stock Exchange

www.pse.cz

Prague Stock Exchange data

RM-Systém

www.rmsystem.cz

Czech Stock Exchange

Czech Insurance Association

www.cap.cz

Directory of insurance companies operating in the CR

Czech Statistical Office

www.czso.cz

Official statistical data and information covering different subjects

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

www.bvv.cz

List of exhibitions and fairs in the CR and relevant information

The Industrial Property Office

www.upv.cz

The Czech Science Foundation

www.gacr.cz

The Register of Advertising Agencies

www.registrra.cz/rra

Česká pošta (the Czech Post)

www.ceskaposta.cz

Residence of Foreigners in the CR

www.domavcr.cz

Association for Foreign Investment

www.afi.cz

Cadastre of Real Estate

www.cuzk.cz

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

www.mytocz.eu

Czech exporting companies

Company-Catalogue Czech Exporters Directory

Legislation

Finance

Statistics

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

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

www.risy.cz

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

www.ahrcr.cz

Directory of hotels in the CR

www.narodni-kvalifikace.cz

BETWEEN THE VINEYARD AND THE STARS

There’s now an emphasis on terroir vineyards, quality work with grapevines and modern technology, all of which qualifies us to produce wines of the highest quality. NOVÉ VINAŘSTVÍ is a promoter of high-quality modern stoppers VINOLOK and DIAM that ensure the optimum maturation of wines and keep them in shape for several years. The wines are divided into three product lines. The basic wine series “Village” is light and elegant. The predicate wine series “Cépage” contains a typical type of wine, the taste is in harmony with a modern vignette and sealed with the VINOLOK glass stopper. The terroir series “Petanque” shows off the best of the vineyards of NOVÉ VINAŘSTVÍ. The wines are expressive, harmonious with a long aftertaste which contains the inherent characteristics of the vineyards. The winery has won numerous local and international awards. The most recent success is the big gold medal and the Best Wine of the Czech Republic in the international competition Mundus vini 2018.

The Director´s Word “There are several reasons why I make wines the way they are. I want everyone to be able to enjoy quality, good, pure and harmonious wine in different price categories with a different residual sugar content and different taste intensity.”

NOVÉ VINAŘSTVÍ, a.s. | Výsluní 613 | 691 83 Drnholec | Czech Republic | e-mail: obchod@novevinarstvi.cz

83 million+ players*

7 thousand+ employees of SAZKA Group companies**

â&#x201A;Ź18 billion+ wagers in 2018***

*Note: Total addressable market in Austria, Croatia, Cyprus, Czech Republic, Greece and Italy. Adult population only. Source H2 Gambling Capital. **Note: Total headcount in companies in which SAZKA Group holds an ownership interest ***Note: Amounts staked placed with companies in which the SAZKA Group holds an ownership interest

64 thousand points of sale in Austria, Croatia, Cyprus, Czech Republic, Greece and Italy

United Kingdom of Great Britain and Northern Ireland 2019/2021

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