Inflation and Wages Cross-Border Mergers Finally Introduced to Czech Company Law The State of the Environment in the Vysočina Region

05-06 2008 CONTENTS

CZECH BUSINESS AND TRADE

Economic Bi-monthly Magazine with a Supplement is Designed for Foreign Partners, Interested in Cooperation with the Czech Republic INTRODUCTION Questions of the Month for Martin Tlapa, Deputy Minister of Industry and Trade .....4 Issued by PP AGENCY s.r.o. as an exclusive commission ECONOMIC POLICY for the Ministry of Industry and Trade Inflation and Wages...... 5 of the Czech Republic KALEIDOSCOPE Czech Economy–the World’s Top Performer ...... 7 EDITORIAL BOARD: Prime Minister's Visit to Vietnam Means Success ...... 7 Milan Hovorka (Chairman), Ivan Angelis, Czech Republic to Draw Nearly EUR 36 Million This Year Zdena Balcerová, Jiří Eibel, Zbyněk Frolík, from Operational Programme Enterprise and Innovation...... 8 Růžena Hejná, Josef Jílek, Zdeněk Kočárek, Competes for the Seat of the Galileo System...... 8 Tomáš Kopečný, Marie Pavlů, Pavla Podskalská, Czech-Asian Trade Forum ...... 9 Josef Postránecký, Libor Rouček, Jiřina Semanová, Jiří Sochor, Jarmila Škvrnová LEGISLATION Cross-Border Mergers Finally Introduced to Czech Company Law...... 11 MANAGING EDITOR: Jakub Havel CZECH TOP INEKON Penetrates into Asian Markets...... 12 Delivery of Czech Cement Works to Kazakhstan...... 12 EDITORS: Largest Investment Project in North ...... 12 Jaroslava Bradová, Naďa Vávrová TOPIC REGULAR COLLABORATORS: The State of the Environment in the Czech Republic...... 14 Eva Tomášková REGION TRANSLATION: NUTS 3 – Vysočina Region ...... 20-34 Vlasta Benešová, Alena Kenclová, PRESENTATION OF FIRMS Robert Krátký, Lucie Pavlíčková, Dagmar Šímová, GEOtest , a.s...... 2 Halka Varhaníková VOD-KA a.s...... 13 2H Plast s.r.o...... 15 READ: Arrow line, a.s...... 19 Mathew Booth, Pearl Harris, Ivana Kadlecová, Družstvo ENVICRACK ...... 19 Zuzana Pavlíčková Strojírny Podzimek, s.r.o...... 27 TKZ Polná, spol. s r.o...... 33 AGADOS, spol. s r.o...... 35 GRAPHIC DESIGN: PP Agency s.r.o...... 36 Helena Dvořáková, Lobby Česká republika

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ADDRESS: Myslíkova 25, 110 00 Praha 1 Czech Republic Phone: +420 221 406 623, +420 221 406 626 Prague Competes for the Seat of the Galileo Vysočina Region Fax: +420 224 930 016 System e-mail: [email protected] COVER PICTURE: CZECH REPUBLIC, A NUCLEAR FUSION HUB www.ppagency.cz www.mpo.cz/cbt IN CENTRAL EUROPE Press run: 13.500 copies. Nuclear fusion, which does not produce radioactive waste, is considered by experts the greatest The number of printed and sold copies hope for the solution of the energy problem in the future. The Czech Republic has a rich of the journal is verified by auditor, HZ Praha, s.r.o., tradition and a very good name in research in this area. In April, the Institute of Plasma Physics member of PANNELL KERR FORSTER Worldwide. It is not allowed to reproduce any part of the Czech Academy of Sciences, a coordinator of thermonuclear fusion research in the of the contents of this journal without prior Czech Republic within the EURATOM agreement, received a COMPASS tokamak from Great consent from the editor. Britain. Although this is not a full-scale thermonuclear reactor and thermonuclear energy Attitudes expressed by the authors of articles cannot be released in it, COMPASS tokamak processes can model processes in larger reactors carried by CBT need not necessarily be consistent - and it is thus of great importance for research. Its installation and operation will put the Czech with the standpoint of the Publisher. MK ČR E 6379, ISSN 1211-2208 Republic at the top level of European and world research in hot plasma and thermonuclear „Podávání novinových zásilek povoleno fusion. "I believe that COMPASS tokamak will become the centre of nuclear fusion research in Českou poštou, s. p., odštěpný závod Přeprava, Central Europe", said Chris Llewellyn Smith, Chairman of EURATOM, the Consultative č. j. 3468/95, ze dne 24/10/1995“ Committee for Atomic Energy of the European Community.

Front cover: Illustration photo 3 | INTRODUCTION

Questions of the Month for Martin Tlapa, Deputy Minister of Industry and Trade

In case negotiations on the DDA are "put on Venezuela, and Peru) and with countries of ice" during the course of 2008, the Czech Central America. In this case it will be Republic will make every effort to reopen necessary to evaluate the current state of talks and to define key ambitions for affairs and choose a suitable negotiation multilateral negotiations. In this respect, and strategy for the speedy conclusion of under the framework of the Council of the negotiations either with the regions as European Union, the Czech Republic will a whole or with individual countries. also consider raising the issue of reforming The Czech Republic intends to introduce the functioning of the World Trade certain new and active elements into the Organisation (WTO) and of defining transatlantic dialogue – such as the launch parameters for a potential transformation of of talks with the USA and Canada on a new this important international organisation. contractual platform for economic cooperation, protection of investment, and trade in services. The growing number of bilateral free trade agreements is new to common trade policy. How does the Czech The Czech Republic is a liberal Republic view this area? country. Will it give its fundamental Immediately following the expected backing to efforts for removal of imminent accession of Russia and the trade barriers? Ukraine to the WTO, the Czech Republic will At the beginning of 2009, the Czech WHAT ARE THE strive to initiate bilateral talks with these Republic plans to evaluate the new Global PRIORITIES OF THE traditional trade partners on a greater Europe trade strategy, to determine whether MINISTRY AND THE CZECH REPUBLIC FOR liberalisation of trade terms, in particular on it is doing enough to spur on the THE PRESIDENCY IN the conclusion of free trade agreements. EU’s economy and global competitiveness. TERMS OF TRADE? The European Commission has launched The objective of the Czech Republic is to NEGOTIATIONS ON negotiations on free trade agreements with steer the EU towards greater openness, non- TRADE LIBERALISATION India, South Korea, and with countries of discrimination, and further liberalisation of ARE NOT LOOKING TOO the Association of Southeast Asian Nations economic relations. In order to prepare PROMISING AT THE (ASEAN – Indonesia, Malaysia, the relevant arguments to this end, evaluation MOMENT! Philippines, Singapore, Thailand, Brunei, reports will be drawn up and later presented The Czech Republic is a long- Vietnam, Laos, Myanmar, and Cambodia). If at meetings of ministers of trade of EU term advocate of maximum negotiations go ahead with India and South member states. The Czech Republic’s liberalisation of world trade. In Korea, it will be in the interest of the Czech priorities also include wrapping up the Republic to achieve maximum progress in debate on the revision of Trade Defence line with this approach, we are negotiations. In the case of ASEAN, the aim Instruments, which must lead to further making efforts for the conclusion of the Czech Republic will be to carry out liberalisation and respect for the of a multilateral agreement on a thorough stocktake of the state of EU’s economic interests. liberalisation of trade (Doha negotiations and to decide the next Moreover, the Czech Republic will Development Agenda - DDA). negotiation strategy. strongly advocate a broad implementation Negotiations are ongoing. In ongoing negotiations with China on of the revised Market Access Strategy. We a partnership and cooperation agreement will back ongoing preparations for Depending on the future state of and on the revision of a trade agreement a partnership among bodies of the European negotiations, the key priority will dating from 1985, the priority aim of the Commission, the economic diplomacy of be to conclude the multilateral Czech Republic will be to achieve maximum member states, and the business sphere for round of negotiations and concessions on the part of the the efficient monitoring and effective possibly to begin immediate People’s Republic of China, especially in removal of barriers to trade. implementation. areas of fundamental importance to the In accordance with a complex strategy Czech Republic (non-tariff trade barriers, currently under preparation by the European protection of intellectual property rights, Commission, the Czech Republic will use all observance of provisions on the status of available means to improve the protection a market economy). and exaction of intellectual property rights During the Czech presidency, a stocktake of EU entities on third markets as well as will be made of the state of negotiations on within the EU. This will involve the association agreements with countries implementation of relevant provisions in all belonging to the Andean Community of newly concluded bilateral agreements or the Nations (Bolivia, Columbia, Ecuador, use of alternative initiatives.

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Inflation and Wages

At the beginning of the year, the The intensity of the inflation increase by the administrative nature of inflation, as Czech Republic lost its at the beginning of the year, well as by the strengthening crown, which however, surpassed all expectations. considerably tightens monetary conditions reputation of a low-inflation The close of last year suggested a rapid in the economy. Over the past year, the economy, which it had boasted increase in inflation, when year-on-year crown has strengthened by almost 12% for several past years. Moderate growth in prices gradually reached 5.5%, against the euro and 30% against the i.e. 2.5 percentage points above the target American dollar. The strengthening crown inflation had been mainly of the central bank. This result was in part has thus reinforced its role as an important attributable to the strengthening attributable to administrative measures, anti-inflation instrument, protecting the Czech crown (rendering imports which considerably deflected inflation economy against the harsh impact of less expensive), the moderate upwards. Such measures include in record-high prices of crude oil and natural particular increases in excise taxes on gas. growth of wages (which did not cigarettes and the rise in regulated housing As indicated earlier, the present sharp lead to increased consumption in prices, although on this occasion prices are inflation impulse is, essentially, temporary. excess of the economy’s also increasingly reflecting higher food It will vanish from year-on-year figures capacity), appropriate monetary prices. “Food inflation", which has been within a matter of 12 months and inflation plaguing much of Europe, is now too will then return below the 3% target level and fiscal policy and favourable affecting the Czech Republic. In addition, set by the Czech National Bank. What’s far development of prices abroad. inflation has been further fuelled by more interesting is whether inflation may The close of last year already anticipated increases of the reduced VAT be deflected upwards in the coming rate from the previous 5% to 9%. Prices months by other factors warranting indicated the Czech Republic partly began to reflect this change (advised a response by the central bank. In the first would, for some time to come, in advance) before it actually came into place, such factors could include rank alongside countries with an effect. foodstuffs, which account for a quarter of inflation rate well above the EU Inflation at the beginning of the year the year-on-year 7.5% inflation rate. This then continued to further grow. Year-on- is to a small degree the result of higher average. year prices increased by 7.5% in January VAT, although the main reason for the rise and February, the highest increase the in food prices is the general increase in Czech Republic has experienced in over prices of agricultural commodities on nine years. Although these inflation figures world markets. This year’s harvest remains may be alarming, it is necessary to keep in a great unknown - it should increase mind they are mainly the result of supply, which is struggling to meet the temporary administrative factors, which increasing demand of Asian countries and cannot be dealt with in any way. These higher demand for raw materials for the factors mainly include changes in tax rates production of bio fuels. Another high-risk (an increase of the reduced VAT rate, factor is the price of energy raw materials, higher excise taxes and the recently which the Czech Republic is managing to introduced environmental tax), increases in withstand for the time being thanks to its regulated prices of energy and rent, newly strong currency. introduced fees and higher payments for health care and so on. In addition, the INFLATION TO STUNT REAL growth of non-regulated commercial WAGE GROWTH prices is also on the rise, although it Whereas foodstuff and energy prices remains well below the overall inflation reflect, for the most part, developments on rate in spite of growing prices of foreign markets and are therefore marked agricultural and energy commodities. Net by a high degree of risk, domestic inflation inflation, which disregards regulated prices factors are somewhat easier to predict. The and taxes, was therefore only 3.8% in expected slowing of the growth of February this year. domestic demand, especially consumption, should significantly reduce the risk of STRONG CROWN SHIELDS demand-pull inflation. This year's high rate AGAINST HIGH PRICES OF of inflation will considerably slow the RAW MATERIALS growth of real wages – their rate of The Czech National Bank (CNB) responded growth may thus be the lowest in over to the risk of growing inflation in advance. nine years (approximately 1%). The risk of In the past 12 months it has increased its excessive growth of wages therefore main interest rate five times by a total 1.25 appears small in spite of record inflation percentage points to 3.25%, the highest and the sharp fall in unemployment, the level in over five and a half years. Even so, rate of which is in fact accelerating at its main rate remains one of the lowest present. Most wage contracts did not take throughout the EU. The central bank is into account this year's high inflation rate, inhibited from taking a tougher approach or alternatively, they are indexed

5 | ECONOMIC POLICY

retroactively at the previous rate of inflation. This should maintain growth of real wages at an acceptable rate commensurate to changes in labour productivity. The first quarter may bring higher growth of average wages. Such growth will not be attributable to tension on the labour market but rather to the transfer of bonus payments into the current year from the close of last year, allowing employees to profit from more favourable tax conditions. Even so, it is possible to foresee higher growth of wages owing to the lack of qualified labour, which is beginning to take its toll on the labour market. Possibly the best indicator of this trend is the rate of unemployment, which has fallen year- on-year by 1.8 percentage points and has reached its ten-year low (5.4% in 2007). This rapid fall in unemployment is in particular a result of strong economic growth, which in turn is based on the influx of foreign direct investment. In certain regions and sectors, businesses have begun to encounter a lack of qualified job applicants. Increasingly, this situation is being dealt with by employing foreigners, the number of which has exceeded 250 000, totalling approximately 5% of the overall work force in the Czech Republic.

WAGE GROWTH – NO THREAT TO COMPETITIVENESS Foreign workers are successfully helping to mitigate the present lack of employees. This is true especially of Prague and the Central Region (in general, these regions may be considered areas with the The growth of inflation has been caused in greater part by temporary administrative factors highest rate of growth in the country). They also cover increased demand in certain sectors such as the building doubled but even so, they did not even impact of which is marginal to the industry, retail, and partly also the reach 26% of the level in Germany (2006). economy and will fade away within a year. manufacturing industry. The wages of Nominal wage dynamics remain Moreover, this inflation will with all these foreign workers often end up in their considerably higher than in the case of probability not lead to a wage spiral similar home countries and therefore do not West European countries. Nonetheless, the to that in Hungary, undermining the increase demand in the economy. Such an growth rate of labour productivity and country’s economic growth. The present increase in demand would create present wage levels ensure the economy inflation is rather a passing spell evoked by a dangerous imbalance, whether in the will maintain its comparative advantage an accumulation of negative factors such form of inflation or as a negative balance (although to a smaller extent) in the near as unfavourable price developments of trade. The Czech Republic can therefore future. abroad, price deregulation on the domestic most probably rule out any sharp increases The Czech economy is currently scene, and tax amendments. Towards the in wages in weeks to come leading to experiencing a relatively short period of end of this year, year-on-year inflation disproportionate inflation pressure or higher inflation. While at the close of should fall back to 5% and by the markedly undermining the competitiveness 2006, our country ranked among six states beginning of next year it should return to of domestic companies. At the same time, with the lowest inflation in the whole of its usual level below 3%. we should not overlook the fact that the EU, today it is unfortunately, by Petr Dufek domestic wages are gradually closing the contrast, one of six countries with the Analyst gap with the most developed countries of highest rate of inflation. More than a half Československá obchodní banka, a. s. Europe. As an example, over the last of all inflation is generated by (e-mail: [email protected]) decade costs per hour worked more than administrative measures, the secondary Photo: PhotoCombo Photo: Index Open

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Kaleidoscope

CZECH ECONOMY–THE WORLD’S TOP PERFORMER

A study carried out by Germany’s Bertelsmann Foundation ranks the THE BERTELSMANN FOUNDATION Czech Republic first among 125 Germany’s Bertelsmann Foundation operates in areas concerned with international surveyed states in terms of the development of market economy and understanding, education, economy, social affairs and public health, and supports democracy. the peaceful coexistence of cultures. The institution was founded in 1977 by the According to latest transformation German publisher Reinhard Mohn, majority owner of Bertelsmann AG. index figures, the Czech Republic has improved its position by two places, ABOUT THE TRANSFORMATION INDEX overtaking Slovenia and Estonia. The Bertelsmann Foundation’s Transformation Index analyses and evaluates the quality of democracy, market economy, and political management in 125 TOP 11 TRANSFORMING developing and transforming countries. It measures the achievements and setbacks COUNTRIES of states in their efforts to build democracy, to establish a state with respect for the rule of law, and to accomplish a socio-politically oriented market economy. State 2008 2006 Czech Republic 1 3 Slovenia 2 1 Estonia 3 2 According to the report, the Czech party system has become less fragmented economy is fully integrated in and the country has no serious ethnic, Taiwan 4 4 international structures and is growing religious, or social conflicts. Hungary 5 5 steadily. Wages and salaries, too, are "The good results, however, should not Lithuania 6 7 rising. The health and pension systems, lead to the erroneous conclusion that no Slovakia 7 6 however, are in need of comprehensive further major reforms are needed, Chile 8 10 reform, especially in view of the rapidly especially in combating organised crime, Uruguay 9 13 aging population. revising the electoral system, and South Korea 10 8 According to the Foundation, the improving environmental protection," Poland 11 9 democratic system in the Czech Republic said Josef Janning from Bertelsmann Source: Bertelsmann Foundation is practically consolidated, the political Foundation.

PRIME MINISTER'S VISIT TO VIETNAM MEANS SUCCESS

A number of important new trade contracts and cooperation agreements were signed during the visit of Czech Prime Minister Mirek Topolánek to Vietnam in March, organised by the Confederation of Industry of the Czech Republic. Concluded contracts mainly concerned the power industry, food industry, and construction projects. ZVU Potez Hradec Králové has won a contract for the construction of two breweries, Alta Brno will design a shaft in Nui Beo. PSJ building company will partake in the construction of a cement works in Central Vietnam and in the construction of the Hanoi-Haiphong motorway. Other contracts yet to be signed involve the financing of projects for the power and transport industries. Welcoming ceremony for the Prime Minister of the Czech Republic in Hanoi Photo: Office of the Governement of the Czech Republic

7 | KALEIDOSCOPE

CZECH REPUBLIC TO DRAW NEARLY EUR 36 MILLION THIS YEAR FROM OPERATIONAL PROGRAMME ENTERPRISE AND INNOVATION

Last December, the European draw nearly EUR 36 million from this support rules will be agreed upon. "The Commission approved the Czech programme by the end of the year. In the Operational Programme Enterprise and Republic’s Operational Programme period between 2007 and 2013, as much Innovation is considered a key programme Enterprise and Innovation (OPEI). as EUR 3.6 billion (including national co- for business promotion in the Czech According to the Ministry of Industry financing) will be made available to Czech Republic," Jaromír Drábek, President of and Trade, the Czech Republic could businessmen and companies. Miroslav the Chamber of Commerce, pointed out. Elfmark, Director of the EU He expects OPEI to open the way to Structural Fund Section at building a knowledge economy in the CR. the Ministry of Industry and Resources available from various Trade, says the interest of programmes should be used primarily for businessmen and companies the promotion of innovative business in OPEI subsidy programmes activities, he said. Firms should seek funds has surpassed all for the launch of new technologies, for expectations. industrial research, for the introduction of According to Tomáš more efficient organisational methods Bartovský, spokesman of and the creation of new marketing the Ministry of Industry methods in order to boost sales. "In this and Trade, more OPEI country, business innovation projects are programmes will gradually be financed largely by means of companies’ announced. According to Mr own resources. Only a tenth of money Bartovský, financial support comes from public support funds. With for projects, mainly intended the help of OPEI financing, this share for development of should increase considerably," Mr Drábek infrastructure and old added. Between 2007 and 2013, the industrial compounds, Czech Republic may obtain up to EUR depends on when public 25.2 billion from EU funds. In the 2007-2013 period the Czech Republic can receive up to EUR 25.2 billion from EU funds

PRAGUE COMPETES FOR THE SEAT OF THE GALILEO SYSTEM

The capital of Prague is one of the hottest candidates for the seat of the GSA, an agency for the future control of the European Galileo satellite system, said Czech Deputy Prime Minister Alexandr Vondra after talks with Mr Jacques Barrot, Vice-President of the European Commission, in charge of transport. All contracts necessary for launching the system are to be concluded before the end of this year, so the system may start operating in 2012. Only then will the decision be taken as to the location of Galileo’s seat. The decision will most likely be announced next year. Other candidates for hosting the Galileo agency include Germany and Slovenia. "I would like to thank the Czech Republic for its great support in promoting the Galileo project," Mr Barrot said. The Galileo positioning system is to replace the GPS, a military system developed by the United States Department of Defence. Galileo’s most widely used services will be navigation services for drivers. The use of its satellites for collection of electronic tolls on motorways is also being considered. Drawing of one of the satellites in the Galileo system in orbit around the earth Photo: Index Open, ČTK

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CZECH-ASIAN TRADE FORUM a contract for investment in the Mongolian gold mining industry worth EUR 875 600. At the same time, Primossa has entered the Mongolian property development market, where it is working on a project worth nearly EUR 1 million and preparing another worth EUR 18.2 million. Further contracts have been signed by Mott and MacDonald (airport in Indonesia) and KPM Consult (surface transport in Indonesia). A contract of broader significance for Czech companies is the planned co- operation of ČSOB and TBC investment bank in Georgia, which is expected to simplify and speed up the financing of export and investment projects of Czech companies in Asia. Ivan Jukl, Managing Director of CzechTrade Agency voiced interest in supporting trade relations with Asia during his presentation. A number of Czech companies The forum opening – speaker is Martin Tlapa, Deputy Minister of Industry and Trade of the Czech Republic presented their current projects in Asia: ŠKODA Auto (India), Moravian Oilfields/ The second Czech-Asian Trade Forum available information on the registration of Moravské naftové doly (Pakistan, took place in Prague at the beginning of their companies in Mongolia, on access to Spolchemie (Malaysia), Mott and March. The main subject of the event state contracts, information on tenders and MacDonald (Indonesia), Safina/ were growing commercial and economic contacts of other state authorities. Chemoprojekt (China), and Inekon Group relations between the Czech Republic Mongolia is a territory where investment (Vietnam, Azerbaijan, Georgia). and Asian states. Asia, Australia, and the activities of Czech businesses are Pacific are the Czech Republic’s second developing very rapidly. For instance, 1. More information at most important trade partners, after the Primossa Corporation a.s. has signed www.ceskoasijskeforum.cz European Union. Last year, Czech goods exports to this area of the world amounted to almost EUR 2.5 billion. In 2007, Czech exports to Asian countries increased by 50% in comparison with the previous year. This unprecedented growth rate has significantly reduced the Czech Republic’s traditionally unfavourable balance of trade, attributable in particular to imports from China and Vietnam. The capital of Czech companies is growing significantly and they have a lot to offer. Asia, too, has become a market with great potential, where a number of countries display very high economic growth. The Forum was opened by Martin Tlapa, Deputy Minister of Industry and Trade of the Czech Republic, and by Jaromír Drábek, President of the Czech Chamber of Commerce. A Memorandum of Understanding was signed at the Forum between the Foreign Investment and Foreign Trade Agency of Mongolia (FIFTA) and the Czech-Mongolian Chamber of Commerce. The Memorandum will help Czech The great potential of mutual trade was proved by numerous discussions between Czech and Asian businessmen and entrepreneurs obtain all business partners Photo: Image Conference & Consulting Ltd.

9 | LEGISLATION

Cross-Border Mergers Finally Introduced to Czech Company Law

The Czech Parliament has COMPLEX HANDBOOK cross-border mergers are subject to relevant recently passed a new Act on ON COMPANY provisions governing domestic mergers, TRANSFORMATIONS unless specific provisions on cross-border Transformations of Companies. In The primary objective of the new law is to mergers stipulate otherwise. Therefore, addition to extracting all create general legislation on mergers of standard provisions applicable to domestic provisions on corporate limited liability companies and cooperatives, mergers regarding elaboration of merger reorganisations from the which was largely absent from the existing projects, merger reports by statutory bodies Commercial Code. Moreover, the new law of participating entities, valuation of assets Commercial Code, it also should remedy legislative shortcomings that of the dissolving entity by court-appointed introduces (in accordance with arose through faulty transposition of the experts, approval of the merger project by the 10th Directive of EU Third Directive on domestic mergers of joint general meetings of all participating stock companies and the Sixth Directive on companies and so on, also apply to Czech company law and the recent de-mergers of joint stock companies. The company(ies) participating in cross-border SEVIC judgment of the ECJ) the most problematic area was the system of mergers. possibility of cross-border references to the regulation of joint stock Where domestic legislation clashes with mergers of Czech companies companies, which was secondarily the legislative elements of other member applicable to other types of companies and states, the Act on Transformations contains with companies based in other cooperatives. Other companies were thus relevant collision provisions. For instance, EU member states. The main burdened with requirements designed transfers of liens on shares and ownership implications of this important specifically for joint stock companies, not interests of dissolving entities to the piece of legislation for company for other types of companies or surviving entity are governed by the law cooperatives. Moreover, such legislation applicable in the place of the registered seat law are briefly described below. was often impossible to understand and of the surviving entity. Similarly, the difficult to interpret. appointing of experts for valuation of assets of dissolving entity(ies) and for reviews of COMPANY FORMS ELIGIBLE merger reports will be governed by the law FOR CROSS-BORDER MERGERS applicable in the country of the registered The newly introduced possibility of cross- seat of the entity whose assets are the border mergers, the most eagerly awaited subject of valuation or whose report is feature of the new Act on Transformations, under review. If participating entities decide applies to all forms of commercial to use one joint expert for all entities, the companies - joint stock companies (a.s.), appointing of the expert will be governed limited liability companies (s.r.o.), limited by the law of the state where the partnerships (k.s.), unlimited partnerships application for appointment of the expert is (v.o.s.), as well as cooperatives (družstvo). filed. As a condition, both Czech and foreign merging entities must have the same legal EMPLOYEES’ "RIGHT OF form, i.e. as in the case of domestic INFLUENCE" mergers, cross-border mergers between One of the specifics of cross-border mergers different types of commercial companies are which differentiate them from domestic generally not permitted. Exceptions include corporate reorganisations is the increased mergers of limited liability and joint stock involvement of employees of participating companies, as well as mergers of limited companies in the merger process. Firstly, and unlimited partnerships, all are, information on employee involvement in however, subject to whether relevant matters of the surviving corporation and on legislation of the given EU member state the likely impacts of the cross-border allows such cross-mergers. merger on employees, including planned dismissals, must appear in the merger MULTI-JURISDICTIONAL project and in the merger report. APPROACH Furthermore, employees must be The Act on Transformations (similarly to the informed of their right to voice their views Tenth Directive) allows Czech companies to on the merger project and on merger merge with entities with registered seats in reports. They must be provided with the various EU member states, i.e. so-called draft project, reports, and with the above multi-jurisdictional mergers. In such cases, information prior to the publication of the the registered seat of the surviving entity merger project. All views voiced by may be based either in one of the employees and/or trade unions must be participating jurisdictions, or even (on communicated to shareholders at the certain conditions) in another member general meeting which approves the state, different from the home state of any merger. of the participating companies. Most importantly, the new Act on Under the Czech Act on Transformations, Transformations gives the employees the so-

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called "right of influence". In general, this includes the right to vote and to be elected to the Supervisory Board of the surviving entity. Although the new Act on Transformations generally follows existing limits for employee membership in the Supervisory Board (employees of Czech joint stock companies are entitled to elect one- third of the Supervisory Board members, provided the company has at least 50 employees), it far surpasses these limits in the case of successor limited liability companies and cooperatives. Should any of the dissolving corporations in a cross-border merger have more than 500 employees (and the right of influence already existed in such a corporation prior to the merger), the right of influence is automatically re-established in the successor corporation (also in the case of limited liability companies and cooperatives). Employees of participating corporations Cross-border mergers are allowed for all types of business companies will be represented by a negotiating committee of employees. It is the merger is filed for registration in the Czech foreign elements. responsibility of the statutory bodies of Republic, the notary will further be obliged A new change to previous legislation is participating entities to establish this to issue a certificate of legality of the entire the abolishing of the concept of contracts committee. The main task of the operation. Details will be stipulated in the among participating entities (applicable to negotiating committee is to agree the scope implementing regulation to the Act on mergers and transfers of assets to of the right of influence with statutory Transformations on the necessary shareholders) and, instead, the return to the bodies of participating entities. The scope of documents to be supplied to the notary by concept of transformation projects. Projects this right will be laid down in a so-called participating companies for the issue of the will be elaborated for all forms of "contract on scope of the right of above certificates. transformation by the statutory bodies of influence". This procedure may be avoided participating entities (i.e. projects for if the general meetings of all participating SIMPLIFIED CROSS-BORDER mergers, de-mergers, transfers of assets to corporations decide that employees of the MERGER OF PARENT AND shareholders and for changes of the legal successor company will have right of SUBSIDIARY COMPANIES form). The prescribed content of such influence in the scope stipulated by the Act If a corporation intending to merge cross- projects is very similar to the content laid on Transformations. border into another EU member state down previously in the Commercial Code corporation is a 100% subsidiary of this for individual forms of transformation. ROLE OF EXPERTS AND corporation, the Act on Transformations Another change to previous legislation is NOTARIES slackens certain formal requirements on this the increase in the interval between the As in the case of domestic mergers, cross- type of upstream merger. In particular, the decisive date of the merger, de-merger, or border mergers, too, require the statutory bodies of merging entities are not transfer of assets to shareholders (i.e. is the involvement of a court-appointed expert, required to draw up reports on cross-border date from which actions performed by the both for valuation of assets of the dissolving mergers, expert(s) are not required to issue dissolving companies are treated, from an entity (if applicable) and for the review of merger reports, and, most importantly, accounting perspective, as actions the merger report. Participating companies mergers need not be subject to approval by performed by the surviving company) and may agree one single expert will serve as the general meeting (sole shareholder). the date the application for registration in merger expert for all participating entities. If Instead, it is sufficient if the merger is the Commercial Register is filed. The the shareholders of all participating approved by the statutory or other interval set under previous legislation was 9 companies agree so, the expert merger management bodies of the participating months. The new Act on Transformations report is not necessary. corporations. has extended the period to 12 months. This The role of notaries from individual allows companies a greater flexibility to set participating member states is greater, to CHANGES IN DOMESTIC the decisive date according to their needs. a certain extent, than in the case of MERGERS AND OTHER FORMS The new Act on Transformations will come domestic mergers. Czech notaries will OF TRANSFORMATION into effect on 1 July 2008. newly be obliged to issue a certificate on Other forms of corporate transformation cross-border merger. The certificate will governed by the Act on Transformations contain (amongst other information) (including de-mergers, changes of legal a confirmation of the compliance of cross- form and transfers of assets to Ivan Sagál border merger procedure with the Czech shareholders) remain limited to domestic Attorney at Law Act on Transformations. If a cross-border

companies only and are free from any WEINHOLD LEGAL, v.o.s. Photo: Photocombo

11 | CZECH TOP In this section, we present and follow interesting success stories of export projects implemented by Czech businesses from a variety of industry sectors; success that is, for the most part, founded on remarkable feats of research and innovation. We also introduce examples of important foreign investment projects carried out in the Czech Republic.

INEKON PENETRATES INTO ASIAN MARKETS INEKON GROUP, a.s. has signed seven Historically, INEKON’S most extended As a follow-up of previous co-operation, important contracts in several countries of contract on the Asian continent is the the Czech company is preparing a project for the Asian continent. The total volume of modernisation of direct-current locomotives the repair and modernisation of electric and orders, the realisation of which the INEKON in Georgia. Its order signed in 2001 was Diesel locomotives in Azerbaijan. In past GROUP is currently preparing in Asia, extended with the addition of several more years, it has supplied spare parts to Syria for amounts to nearly EUR 700 million. contracts to be signed later this year. ČKD locomotives, where, just as in Iraq, it is A considerable gain for the Czech Together with Elektrovozostroyitelnyi zavod, looking for opportunities of further co- Republic’s foreign trade is the construction INEKON is working on the project of a new operation. of a cement works in Vietnam. The signing two-system electric locomotive. of the contract worth EUR 115 million signifies a breakthrough in the stagnant IMPORTANT CONTRACTS IN VIETNAM, TAJIKISTAN, GEORGIA, trade relations in the whole plant area with SAUDI ARABIA, AND IRAQ the Socialist Republic of Vietnam. INEKON has also signed an agreement for the "The rapid economic growth of Asian countries provides excellent opportunities for construction of a cement works with establishing trade relations in construction, transport, and the infrastructure in general. Tajikistan, worth EUR 197 million. Talks are Today, we have a number of partners in Asia and, as for the future, my opinion is that currently underway on the mode of its Asia will be one of the key territories for new orders," says Josef Hušek, Chairman of the financing. Preparations are in progress for Board and Managing Director of INEKON GROUP. INEKON GROUP, a.s. is a private Czech the modernisation of cement works in Saudi company which was established in 1990. From its initial trading activities – mainly the Arabia and especially in Iraq, where export of rail vehicles and the import of crude oil and other chemical materials for the a contract worth EUR 328 million has been chemical industry - it has grown into a commercial and manufacturing group focusing on signed. Its realisation, however, is being three areas of business: the manufacture and sale of rail vehicles, the chemical industry, complicated by the protracted war in Iraq and the export of whole plant. and, recently, by the Turkish offensive on More at www.inekon-systems.com Kurdistan territory.

LARGEST INVESTMENT PROJECT IN NORTH MORAVIA DELIVERY OF CZECH CEMENT WORKS TO KAZAKHSTAN A joint project of the Czech branch of Fortis Bank, EGAP (Export Guarantee and Insurance Corporation) and PSP Engineering a.s., a traditional Czech supplier of whole plant, was singled out independently by two international specialised magazines concerned with international trade financing, Global Trade Review Magazine and Trade Finance Magazine, for the award of the prestigious title, "Deal of the Year 2007". The financial transaction was worth more than EUR 97.6 million.

CZECH PROJECT AWARDED THE PRESTIGIOUS "DEAL OF THE YEAR 2007" TITLE. The cement works to be delivered by the Czech company, PSP Engineering, will be operated by the Kazakh company, BI Production building at the IVAX Pharmaceuticals headquarters in Opava Cement. Its annual output will be One of this year’s largest foreign Director of CzechInvest agency, pointed 500 000 tonnes of cement. The ability of investments in the Czech Republic will be out. Czech firms to conclude important export concluded in North Moravia by TEVA, the "By raising the factory’s capacity, IVAX contracts has been continuously growing Israeli pharmaceutical company. It is will create three hundred new jobs for in recent years. Hans Broucke, Director of planning to invest EUR 73 million to highly specialised experts. In its search for the Czech branch of Fortis Bank, said: enlarge the Opava factory of IVAX new workers, IVAX intends to co-operate "There are still great opportunities for Pharmaceuticals s.r.o., formerly Galena. directly with local schools," Ms Rudyšarová important international banks in Czech "This investment is even more important added. for its quality and advanced technology," export financing." More at www.pspengineering.cz

Alexandra Rudyšarová, nominee Managing More at www.ivax-cz.com Photo: Pharmaceuticals IVAX archives

| 12 TOPIC

The State of the Environment in the Czech Republic

After a substantial improvement Positive aspects include the declining AIR PROTECTION of the environment in the 1990s, energy and in part also material Following the successful reduction of air intensiveness of the economy and pollution in the 1990s caused by and thanks to new legislation, the broader use of cleaner energies. conventional pollutants such as sulphur investment and programmes, the Together with technical progress and the dioxide, a new trend can be observed in elimination or at least a partial use of technical instruments for recent years. Gradually, new problems reduction of obsolete production environmental protection throughout the have arisen, caused by other pollutants. economy, this has resulted in a partial Emissions discharged by small sources, and restructuring of industry has reduction in the burden on the especially households (heating) and been accomplished, although environment. Consequently, waste mobile sources (transport means), are increased efforts and financial production has declined (since 2004) and growing as are solid pollutant emissions. waste recycling and re-use are on the rise. The worst affected areas are the resources will be needed to On the other hand, the report points out and Karviná regions. A warning signal in continue mitigating harmful that air continues to be polluted with this respect is the growing number of impacts on the environment. The dust particles, polycyclic aromatic persons affected by allergies. For instance, Report on the State of the carbohydrates, and ground-level ozone. in 2001, the number of allergic children Environment in the Czech Republic in 2006 indicates that The Czech Republic will meet emission ceilings laid down by the although a moderate year-on- European Parliament Directive for 2010 year improvement was achieved in certain areas, new negative Furthermore, it notes the negative effect was 50% higher than in 1996 and by trends were observed which of increasing road traffic on greenhouse 2006 the number rose by another 50%. have been plaguing the country gas emissions, the amount of air On the other hand, nitrogen oxide, pollutants, and increasing noise pollution. sulphur dioxide, and volatile organic since the year 2000. Ongoing trends in selected areas of the compound emissions are showing environment and certain sectors of the a continuous decline. The Czech Republic economy are, nevertheless, evidence of is practically certain to meet its national the fact that the measures taken are emission ceiling laid down by Directive leading to improvements. 2001/81/EC of the European Parliament and of the Council on national emission ceilings for 2010 (NECD). The greatest Trends in emissions of solid pollutants in 1996-2006 by source category problems are expected in connection with the nitrogen oxide emission ceiling. 140 Areas with worsened air quality (ozone not included) account for 29% of the 120 country's territory (35% in 2005) with 100 over 60% of the country’s population. The 80 most seriously affected areas are the Moravia-Silesia Region and Prague. 60 40 ENERGY 20 The energy intensiveness of the Czech thousand tonnes/year 0 Republic remains high in international 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 comparisons, almost double the EU15 and REZZO 1 + REZZO 2 REZZO 3 REZZO 4 EU25 average. Source: Czech Hydrometeorological Institute (ČHMÚ) Note: REZZO 1 – stationary fuel incineration facility with a thermal output of more than 5 MW (large and Energy intensiveness has been falling very large sources) slightly since the 1990s, and more REZZO 2 – ditto, output 0.2-5 MW (medium sources) REZZO 3 – ditto, output under 0.2 MW (small sources) markedly in recent years of greater REZZO 4 – mobile air pollutants economic growth. Estimates for 2006 show a record drop in energy intensiveness per gross domestic product Pollutant Emissions Ceiling WAM 1) Emissions Emissions unit, i.e. by 6.5%. The reduction in energy level Scenario Scenario A Scenario B intensiveness in 2006 was, for the first kt/year 2006 2010 2015 2020 2020 time since the year 2000, helped along by SO2 211 265 197 178 82 NOX 282 286 257 175 116 a moderate decrease in consumption of PM2,5 22 not given 16 15 12 primary energy sources. VOC 179 220 159 134124 In 2006, renewable energy sources rose NH3 63 80 65 6457 by 0.9% year-on-year in comparison to Source: Czech Hydrometeorological Institute, International Institute for Applied Systems Analysis, National 2005, to 4.3% of total consumption. Programme for Emission Reduction; 1) with additional measures Electricity output is growing, especially

| 14 CZECH BUSINESS AND TRADE

have to be given to the installation of MEASURES ADOPTED TO REVERSE AIR QUALITY TRENDS new facilities for use of renewable energy – Draft national programme for improvement of air quality to be supported financially by sources. To improve the situation, the the State Environmental Fund of the Czech Republic state will provide financial means for this purpose from the State Environmental – The sources of the national programme to be supplemented with money from the Fund under the framework of the State Operational Programme "Environment" programme in support of energy savings – Amendment of the Road Tax Act and the use of renewable sources of – Revision of the system of air pollution charges energy. Significant support will be – Fulfilment of targets set by the National Programme for Emission Reduction provided from the Operational Programme Environment – its priorities electricity generated by wind and solar Energy intensiveness of the economy (1995-2006) power stations. Wind power stations have 140 doubled their electricity output on a year- on-year basis, although their share in total 130 renewable electricity production is 120 negligible and does not exceed 1.5%. The growth in 2006 of electricity production 110 from renewable energy sources strongly 100 reflected the energy output of

index 100 = 1995 90 hydroelectric power stations. In accordance with the decision of the 80 European Commission, the Czech 70 19951996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Republic is required to generate 13.5% gross domestic product in overall consumption overall energy intensiveness of its electricity output from renewable prices valid for 2000 of primary energy sources (PES) sources. This means greater support will Source: Ministry of Industry and Trade

15 | TOPIC

include the sustainable use of energy sources, the construction of new facilities and reconstruction of existing ones, all aimed at raising the share of renewable

Electricity output of wind and solar power stations is growing

sources of energy for heat, electricity, and combined heat and electricity production.

CLIMATE CHANGE Preventing and mitigating climate change is among the EU’s top priorities, and the same applies to the Ministry of the Environment of the Czech Republic. One of the fundamental problems today are greenhouse gas emissions. Since the year 2000, the production of greenhouse gas emissions in the Czech Republic has been stagnant although, at the same time, the structure of sources is changing. While emissions from stationary sources continue to drop slightly, emissions generated by transport have been growing considerably, especially in the past five years. Their share in total greenhouse gas emissions rose from 4.6% in 1990 to 12.8% in 2005.

TRANSPORT Long-term trends in transport clearly Preventing and abating climate change is a top priority for the Czech Republic confirm the growing dominance of road transport to the detriment of transport by Gross electricity production by type of renewable energy source (2003-2006) rail, especially in terms of freight transport. In 2006, individual passenger

4000 transport accounted for 64.1% of total 3500 passenger transport, while road haulage 3000 accounted for 71.9% of total freight 2500 transport. In 2006, the share of municipal GWh 2000 transport decreased significantly (by 1500 17%) while road haulage increased (by 1000 15.9%). 500 0 2003 2004 2005 2006* BASIC MEASURES TO hydroelectric total total other REDUCE GREENHOUSE GAS power stations biomass biogas *) estimate EMISSIONS Source: Ministry of Industry and Trade – Production of electricity from renewable sources GREATER USE OF RENEWABLE ENERGY SOURCES – Modification of electricity purchase Year 2006 2015 2020 prices by the Energy Regulatory Office Primary energy sources (PJ) 1 850 1 720 1 665 – Promotion of alternative fuels Renewable energy sources (PJ) 821) 1872) 2172) – Amendment to the law on technical Renewable energy sources as a percentage standards for motor vehicles of primary energy sources 4. 4% 10.9% 13.0% – European Commission regulation – Photocombo Source: 2nd stage of the environmental tax reform (ETR) limit of CO2 emissions/kilometre to 1) Renewable energy sources in 2006, Ministry of Industry and Trade 2007 2) Ministry of the Environment – figures fixed for the purposes of the ETR 130g/km Photo:

| 16 CZECH BUSINESS AND TRADE

Greenhouse gas emissions in 1990-2006 by source category: THE MOST IMPORTANT 225% MEASURES FOR REDUCING 200% THE HARMFUL EFFECTS 175% OF TRANSPORT – Promotion of alternative fuels 150% – Amendment to the law on technical 125% standards for motor vehicles.

index 100 = 1990 100% – Support for modernisation of public

70% transport and subsidies for buses running on condensed natural gas 50% 1990 19911992 1993 1994 19951996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 power industry – stationary sources mobile sources power industry – fugitive emissions industrial processes and use of solvents agriculture waste Source: Czech Hydrometeorological Institute The dying-out of plant and animal species is accelerating, natural and close-to- The share of alternative fuel preventing reductions in bio-diversity is, nature biotopes continue to vanish. consumption (liquid petrol gas (LPG), however, not yet being met. The diversity Ecological stability is being upset due to condensed natural gas (CNG), and bio- of original species continues to dwindle. landscape fragmentation and the growing number of invasive, i.e. introduced, Total greenhouse gas emission index species which are having a negative effect 160 on local species. The process of defoliation, which took 140 1995 2005 Kyoto target 2008-2012 place between 1986 and 2006 and 120 affected coniferous growths over 60 years 100 old, comes as a warning. This trend has 80 continued since the year 2000 in spite of

60 significant reductions of the emissions burden on forest growths at this time. This 40 may be the consequence of the long-term index (basic year = 100) 20 effect of abiotic factors (solar radiation, 0 water, soil, atmosphere) and forest pests on vegetation and forest soil affected by EU15 EU25 Czech Slovak Poland Belgium Slovenia Portugal Republic Republic Hungary the pollution burden in the past. Germany Source: EEA Note : Figures for EU25 have been taken from Eurostat (for 2005 the value for 2004 was used, without any set target) WASTE MANAGEMENT A favourable trend begun in 2006 has led Emissions from stationary sources continue to fall to a reduction in waste production and to increased volumes of recycled waste as fuels) in total fuel consumption is growing Output of selected means of freight transport (1990-2006) only very slightly. In 2006, this share 350 increased to 3.4%, of which bio-fuels accounted for 1.2% of total fuel 300 consumption. 250 Increasing growth of road transport 200 goes hand in hand with emissions of greenhouse gases, fine solid particles, 150

polyaromatic hydrocarbons, and ground- index 100 = 1990 100 level ozone, which are also increasing. 50

0 NATURE, LANDSCAPE, AND 1990 19911992 1993 1994 19951996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 BIO-DIVERSITY PROTECTION railways road haulage The surface area of protected areas was Source: Transport Research Centre, Ministry of Transport expanded in 2006 to newly include eight small specially protected areas. At that SHARE OF BIO-FUELS IN TOTAL PETROL AND CRUDE OIL CONSUMPTION time, the Natura System, which defines IN EU TRANSPORT areas of European importance, comprised year 20061) 2010 2) 2015 3) 2020 4) 38 bird areas. The National List of Share of bio-fuels 1.2% (CR) 5.75 % 7.8% 10% localities of European significance 1) Report on the Environment in the Czech Republic in 2006 2) Directive 2003/30/EC featured 863 areas, with more proposals 3) Expert estimate of the Ministry of the Environment in the pipeline. The national 4) Action Plan of the European Council (2007 – 2009) – Energy Policy for Europe approved at the spring environmental policy target aimed at session of the European Council in March 2007

17 | TOPIC

well as a greater share of sorted municipal comparison with 2005, proving that the has gradually decreased (from 778 million waste. The drop in municipal waste positive trend begun in 2005 is cu. m in 2000 to 699 million cu. m in production, has, however, been negated continuing, despite growing economic by a higher share of municipal waste efficiency and industrial production. In WASTE MANAGEMENT TARGETS Volume of discharged sewage water in 2000-2006 – Reduce material intensiveness

100 of production and increase waste 90 recycling and the use of waste 80 for energy production 70 – Reduce the weight ratio of waste 60 50 disposed of in rubbish dumps 40 – Handle hazardous waste 30

thousand tonnes in a responsible way 20 10 0 2000 2001 2002 2003 2004 2005 2006 biological oxygen chemical oxygen non-dissolved substances 2006, i.e. down 10.2%) as has the consumption consumption consumption of drinking water per Source: Czech Statistical Office, Report on the Environment in the CR 2006 supplied inhabitant (in 2006 consumption disposed of in rubbish dumps. The share addition, the production of hazardous dropped to 153 l/head/day). An important of municipal waste disposed of in rubbish waste has been falling continuously since factor resulting in the drop in water dumps increased from 69.3% in 2005 to 2001. consumption is the growing water price 81% in 2006. For a number of years now, the Czech rate and increasing sewage charges. In the period under review, domestic Republic meets recycling criteria and The share of the population living in material consumption fell from 300.4 houses connected to the public sewage million tonnes in 1990 to 192.2 million The total surface area system is increasing. Since 2004, the rate tonnes in 2004. There was a sharp drop in of protected localities is has increased in response to EU the early 1990s (which continued until increasing requirements. In 2006, over 8.2 million 1994). A moderately downward trend was people, i.e. nearly 80%, were maintained for the rest of the period requirements for re-use of packaging connected. under review. In 2003 and 2004, however, waste laid down by the EC Directive on The construction and reconstruction of domestic material consumption increased Packaging and the Czech Act on sewage treatment plants and sewage sharply, reaching its highest value since Packaging. With its 46% rate of recycling systems is being carried out primarily in 1997. and re-use of plastic packaging waste, the urban areas with over 2 000 inhabitants. Czech Republic ranks among top Of the total of 531 such areas in the European performers. Trends confirm growing dominance of road transport WATER MANAGEMENT PLANNED MEASURES The quality of water in the Czech Republic – Amendment of the Act on Waste In 2006, waste production dropped by has been improving for a number of years – Revision of waste disposal and 5.7% to 28.1 million tonnes in now. The total output of drinking water incineration charges – Improvement of waste handling and Localities of European significance in the CR elimination of old environmental burdens (cutting down waste production independently of the level localities of European significance of economic growth, maximum use of regional borders waste to substitute primary natural sources).

Czech Republic, only 267 conformed to EU sewage treatment standards in 2006. Investment from the EU co-financed by the Czech Government will be of vital importance for improving the water management situation.

Pavel Šremer and Světlana Svitáková Department of Environmental Policies Ministry of the Environment of the Czech Republic Source: Agency for Nature Conservation and Landscape Protection of the Czech Republic www.env.cz

| 18 REGION

NUTS 3 – Vysočina Region

TERRITORIAL DIVISION, GERMANY LOCATION, POPULATION POLAND HavlíãkÛv Brod The Vysočina Region is located at the centre of the Czech Republic. Îìár nad Jihlava Its location is also determined by Pelhfiimov Sázavou neighbouring regions – Central Bohemia, , South Tfiebíã Bohemia. Together with the SLOVAKIA South Moravia Region, it forms AUSTRIA the so-called NUTS 2 – South- East territorial unit. With an area of 6 796 sq. km, ECONOMIC rape are all traditional sectors. Forest and Vysočina takes up 8.6% of the CHARACTERISTICS pond management as well as fish and area of the Czech Republic. The The economy of the eastern part of the water poultry production are also Region's 513 195 inhabitants live Region is influenced by the neighbouring important. Brno agglomeration, while the north-west The Region accounts for 4.2% of the in five districts: Jihlava, of the Region is a catchment area of the country's GDP. The overall export of the Pelhřimov, Havlíčkův Brod, Třebíč, capital of Prague. The Vysočina Region Region is dominated in particular by and Žďár nad Sázavou. The can be characterised as both industrial machinery and transport equipment central town of the Region is the and agricultural. Light engineering, (56.7%), semi-finished products and raw electrotechnical industry, the food materials (22.3%), and industrial and statutory town of Jihlava with industry, and wood processing are consumer goods (10.4%). In 2006 the 50 900 inhabitants. It serves as predominant. The chemical industry, glass earnings of industrial companies for the administrative, commercial, production, the textile industry, power products and services exceeded EUR 4.48 industry, construction and production for billion, up 22% against 2005. industrial, and cultural centre of the automobile industry are the next the Region. Its ragged landscape, strongest sectors. TRANSPORT higher altitude, and low Meat and milk processing companies The road and railway network of the population density set it apart are among those that thrive, while the Vysočina Region is strategic from both the cultivation of potatoes, flax, cereals, and national as well as European perspective. from neighbouring regions.

Krajský úřad kraje Vysočina (Regional Office of the Vysočina Region) Žižkova 57 587 33 Jihlava Czech Republic phone: +420 564 602 141 fax: +420 564 602 153 e-mail: [email protected] www.kr-vysocina.cz Beauty of nature in the Vysočina Highlands - the Radostín peat-bog National Nature Reserve. This protected area will soon be declared a site of European importance. Photo: Agency for Nature Conservation and Landscape Protection of the Czech Republic

| 20 CZECH BUSINESS AND TRADE

The Region is a part of the main central European axis: Berlin-Prague-Vienna/ Bratislava-Budapest. The most important road is the D1 motorway, a link between Prague and Brno to which the Region is advantageously connected. Second in line of importance are the first category roads: the I/38 (Jihlava-Znojmo-Vienna) and the I/23 (running through the southern part of the Region from east to west, linking Třebíč-Telč-Jindřichův Hradec). Two railway lines with large transport capacities intersect the Region. These are the 204 line (Jihlava – České Budějovice) and the 240 line (Havlíčkův Brod – Jihlava – Brno). Both provide passenger and freight transport. Important connecting lines run along the Berlin – Prague – Havlíčkův Brod – Brno – Vienna route and the Jihlava – Veselí nad Lužnicí route, which offer connections to other lines of View of the square in the town of Telč, a UNESCO-listed site.

124 protected areas and 9 natural parks BRIEF CHARACTERISTICS OF THE REGION located throughout the Region NUTS Area (sq. km) Population Municipalities Population density (www.csop-jihlava.euweb.cz/Uzemi.htm). (persons/sq. km) Local information centres offer a variety of tourist attractions. For hikers and LAU 1 – Havlíčkův Brod 1 265 95 397 120 75 cyclists there are signposted tourist paths. LAU 1 – Jihlava 1 199 11 1178 123 93 The main tourist destinations are: the LAU 1 – Pelhřimov 1 290 72 861 120 56 ZOO in Jihlava, The Museum of Records and Curiosities in Pelhřimov, the Western LAU 1 – Třebíč 1 463 114 122 167 78 Prairie Town in Šiklův Mlýn near Zvol nad LAU 1 – Žďár nad Sázavou 1 579 119 637 174 76 Pernštejnem, and municipal cultural NUTS 3 – Vysočina Region 6 796 513 195 704 75 reserves in Telč and Jihlava, which have NUTS 1 – Czech Republic 78 867 10 349 372 6 249 131 been classed as UNESCO sites and form part of the cultural heritage of the Source: Czech Statistical Office (as of 30 September 2007); (LAU 1 = district) country (www.unesco.cz).

Average gross monthly wages 2001–2006 (EUR) local importance. A container terminal is located in Jihlava-Pávov. Vysočina Region CR The only airport, Jihlava-Henčov, is 800

EUR 700 intended for recreational use only 600 www.aeroklub.ji.cz). 500 400 EDUCATION, CULTURE, 300 TOURISM 200 There are 519 primary schools and school 100 0 institutions, 18 grammar schools, and 14 2001 2002 2003 2004 2005 2006 higher professional schools. The broad range of professional secondary schools is Unemployment rate 2001–2006 (%) represented by 43 industrial secondary schools and 36 trainee centres. University Vysočina Region CR education is offered at two universities: % 12 the College of Polytechnics in Jihlava 10 (www.vspji.cz) and the West Moravian 8 College in Třebíč (www. zmvs.cz). 6 The Vysočina Region fulfils many 4 prerequisites for the development of 2 tourism. It boasts a beautiful countryside 0 and clean air, it is one of the cleanest 2001 2002 2003 2004 2005 2006 regions in the Czech Republic. There are EUR exchange rate as of 29 December 2006 (27.49 CZK). Photo: Regional Office of the Vysočina Region

21 | REGION

Vysočina – A Good Place to Live, Work, and Do Business

Consequently, our Region is easily Region, is also on a good level. Developments accessible from large cities along in recent years prove Vysočina has become motorways and it is possible to say no a highly attractive location for business and matter where in the Czech Republic you are investment. Companies from the Region heading to, you will find your destination engage with growing success in the relatively close. domestic, European, and global economy. In recent years Vysočina has undergone The beauty of Vysočina charms both its many positive changes which have stabilised inhabitants and tourists alike. Its exceptional the business environment. The backbone of cultural heritage is admired by a growing regional economic prosperity is formed by number of visitors from both the Czech small and medium-sized companies. Republic and abroad. Three monuments Nonetheless, large foreign companies have entered in the UNESCO world cultural and also entered the Region. Their satisfaction, natural heritage list rank Vysočina in first lasting several years now, confirms the place among regions of the Czech Republic. Vysočina business environment is favourable These sites include the historical centre of and provides investors with suitable Telč, one of the most beautiful towns in conditions for successful growth and for the country, St. John Nepomuk Church by establishing new firms. Santini at Zelená Hora in Žďár nad Sázavou, The Vysočina Region lies at the A broad educational network, which is and the Jewish Quarter with the Basilica of very heart of both the Czech being further developed, is in place to St. Procopius in Třebíč. Famous personalities improve the skills and abilities of both future from Vysočina include the world-famous Republic and Europe. and adult employees. The inhabitants of composer . Vysočina are mostly flexible, eager to learn Vysočina is simply a place where one can and conscientious people who value their live a good life, work, and do business and work and display a high degree of reliability where one can come on a business trip or and loyalty to their employer. seek culture and leisure. Cooperation with local government, Miloš Vystrčil which strives to support business in the Governor of the Vysočina Region

Goods from Domestic Raw Materials to the Entire Europe

Kronospan Jihlava, built on the In 1978 the largest chipboard manufacturers). Boards made primarily from grounds of an original saw-mill, manufacturing assembly line in the domestic raw materials are of the highest former was established quality and are exported to the whole of which was founded as early as in Jihlava. By 1994, at the time when the Europe and the succession CIS States. These 1883, continues in the tradition Kronospan group began to co-operate with boards provide business partners with of wood manufacture in Jihlava. the former wood manufacturing company, a perfect foundation which ensures their this production had formed the genesis of competitiveness. The new plant is a member of the company. From that moment on, the vital Kronospan plays an important role in the the international Kronospan development of the Jihlava plant, Kronospan, development of the region and helps Group, which is currently one of began and continues to this day. maintain the employment rate. The Jihlava Europe’s largest and most Currently Kronospan in Jihlava produces plant employs over 300 people. Wood raw raw chipboards, which are further processed material is taken from more than 600 modern manufacturers of large- into melamine-faced chipboards and suppliers across the Czech Republic and, due scale wood-based products. worktops. In 2005 a new production line was to this, the plant significantly participates in In 1957 the production of put into operation, which expanded the the recycling of wood waste. The export of particle boards started in this range of products by SUPERFINISH, the OSB products and the import of wood raw building boards. Due to this investment, the materials, together with the company’s plant and the plant became one Jihlava plant has currently become one of the permanent investment activity (construction of the first manufacturers of this largest and most modern manufacturers in of new halls, long-term investments into new material in Europe. its field in Europe. technologies etc.), contribute to the creation Wood-based products from the sister of hundreds of job opportunities. companies expand the product range (by, for example, melamine-faced boards and other materials used not only by furniture More at www.kronospan.cz

| 22 CZECH BUSINESS AND TRADE

Bystřice nad Pernštejnem – a Suitable Location for Your Investment

The town of Bystřice nad MAIN PRIORITIES technical infrastructure and is ready for Pernštejnem is the centre of the In recent years, the unemployment rate in immediate investments. Bystřice nad Pernštejnem and its surroundings Bystřicko microregion, which lies has been showing a continuously growing SUITABLE FOR ALL TYPES OF in the south-east of the trend, and in the long term is higher than the INVESTMENTS Českomoravská vrchovina average of the Czech Republic and of the The town of Bystřice nad Pernštejnem is Highlands, approximately 50 km Žďár nad Sázavou District (10–15%). a suitable area for the implementation of Especially due to this, the Municipal investment projects by foreign and even from Brno. Council has, for the third electoral period in domestic investors. In comparison with other The town enjoys a long-standing a row, set as its main target, aside from the industrial zones in the Czech Republic and in industrial tradition, especially in construction of new apartments, the the countries of Central Europe, it offers creation of new employment opportunities. a number of comparative advantages: the area of electrotechnics The fundamental source of new job – a fully prepared area of the industrial zone, (production of electromotors), opportunities is undoubtedly the new – unmatched low prices of land, metal cutting, the foundry industry placed in the prepared industrial – resolved property rights, industry, and processing of zone. – attainable and low-cost labour, – the possibility of enhancement of the products from local agriculture. THE FIRST INVESTMENTS current capacity of the technical The town’s strategic plan aims to AND ENLARGEMENT infrastructure, develop a modern industry, while As early as the beginning of the 1990s, the – proximity to the motorway D1 (Praha – at the same time preserving the town’s first industrial zone was constructed Brno), with an area of almost 10 ha. It was soon fully – all-round support and aid to the investor beauties of nature and the occupied by two investments with German granted by the town in carrying out all the features of the landscape. capital interest (the companies WERA Werk necessary administrative steps related to the and Rathgeber). implementation of the investment. Between 2003 and 2004, the first two investments by Czech production firms were SUPPORT FROM THE TOWN made and, in 2006, the execution of the The town’s interest in gaining new investors is investment by the Finnish company most visible in the price of the land on offer, K.Hartwall began on a 10-hectare area. which does not exceed EUR 3.6/sq. m. The After the first industrial zone had been town also offers maximum support for occupied, the town prepared a new 60- carrying out the necessary administrative steps hectare development area. which are connected with the preparation and

THE MOST SIGNIFICANT FOREIGN INVESTORS IN BYSTŘICE AND ITS SURROUNDINGS Name of firm No. of employees Sector Hettich Žďár nad Sázavou 500 furniture hardware Cooper Automotive Žďár nad Sázavou 450 automobile components WERA Werk Bystřice nad Pernštejnem 350 metallurgy Arrow International Žďár nad Sázavou 200 sanitary appliances ITV Pronovia Velká Bíteš 100 automobile components WIEGEL Velké Meziříčí 80 metal reworking RATHGEBER Bystřice nad Pernštejnem 50 product labelling ITALFLEXO Velké Meziříčí 50 assembly of pumping devices JOPP Automotive Velké Meziříčí 30 automobile components

Out of this area, 40 ha are are owned by implementation of the investment. If the the town, 8 ha in the ownership of the Land investor is interested, the town is further Fund of the Czech Republic, 1 ha is in private capable of offering land for long-term rental ownership, and the remainder is occupied by or any other service resulting from the specific investors. The zone has all the necessary needs and wishes of the investor. Město Bystřice nad Pernštejnem (Town of Bystřice nad Pernštejnem) THE MOST SIGNIFICANT INDUSTRIAL FIRMS IN THE TOWN Masarykovo nám. 57 AND ITS SURROUNDINGS 593 15 Bystřice nad Pernštejnem Name of firm No. of employees Sector Phone: +420 566 590 311 ŽĎAS Žďár nad Sázavou 3 500 engineering Fax: +420 566 590 347 DIAMO Dolní Rožínka 1 000 mining and processing of uranium Email: [email protected] PKS INPOS Žďár nad Sázavou 400 construction industry www.bystricenp.cz WERA Werk Bystřice nad Pernštejnem 350 metallurgy Železárny Štěpánov 150 foundry industry Photo: Index Open

23 | REGION

The Vysočina Region has its Permanent Representation in Brussels

The Office of the Vysočina The chief reason for establishing and regions both on a partner and project Region in Brussels was officially opening a permanent representation basis), logistics services (the Office provides of Vysočina in Brussels was the will facilities for meetings in Brussels of opened during the prestigious and need for the Region to access directly politicians and representatives of the Open Days in October 2007 with sources of information on goings-on at the Vysočina Region as well as various non- the participation of a delegation heart of the European Union and on commercial and commercial entities from opportunities the EU offers to regions and Vysočina). from Vysočina, Members of the its entities, thus facilitating the use of such During the first months of its operation, European Parliament, and other opportunities. the Office devoted much of its work to important guests. The Office of the Vysočina Region in promoting the Vysočina Region as such Brussels is located on the first, regional and to increasing its own visibility vis-`a-vis floor of the Czech House at 60 Rue du entities of the Vysočina Region, i.e. those Trône, in the Ixelles quarter. Its location is whom the Office services are chiefly aimed highly strategic, as it facilitates at, as well as potential partners and cooperation with the representations of institutions operating in Brussels (i.e. other Czech regions, the Permanent colleagues, Brussels representatives of Representation of the Czech Republic to Czech and other regions, Czech Members the European Union and other entities of the European Parliament and key seated in the Czech House officials, especially those from the Czech (CEBRE, CzechInvest, Republic working within the European CzechTrade, CzechTourism, institutions) and to establishing ties with Czech Centre, and others) them. The Office is also working to The Czech House is a strong intensify cooperation with partner regions and visible Czech venue of Vysočina – with the Italian Region of where joint activities are Friuli Venezia Giulia, Lower Austria, the thus more effective. Nitra Self-governing Region and the French Moreover, the majority of Champagne-Ardenne. In addition to these key European institutions initial promotion and presentation are located in the vicinity of activities, the Office is also mapping other the office. possible sources of financial aid for the Vysočina Region besides structural funds, ACTIVITIES i.e. in particular so-called community In general, the activities of programmes. the Office of the Vysočina Region in Brussels focus PROJECTS chiefly on the following The subject matter and priority focus of areas: information the Office’s activities is chiefly on (collecting information in promoting education, tourism, Brussels on activities of EU development of information technology institutions and other and regional development in the Vysočina regions represented in Region in general. Brussels, especially Examples of specific activities by the information on current Office in support of education include its projects, open calls and cooperation with regional universities, other programmes offering especially in seeking out partner financial support, and the universities for an approved project of the dissemination of such West-Moravian College in Třebíč under the information to regional Erasmus Programme, the preparation of target groups), the project of the College of Polytechnics presentations (the Jihlava and the Vysočina Region, or, for Representation co-organises instance, the mapping of opportunities for presentation events in internships abroad for students and Brussels and elsewhere with teachers from the Vysočina Region. the aim of presenting As a part of its efforts to promote Vysočina as both an information technology, the Office of the attractive region for tourism Vysočina Region in Brussels has helped to and a dynamic region with seek our foreign partners for a brand new innovation potential), project organised by the Region entitled cooperation (the Office acts ERNIES. The aim of the project is to design as an instrument for a new model of electronic reservations for fostering cooperation of the the entire regional healthcare system. The Czech House in Brussels, where the Office of the Vysočina Region Region with other European introduction of modern information is located Photo: Regional Office of the Vysočina Region

| 24 CZECH BUSINESS AND TRADE

technology should increase the efficiency Region, entitled e-Participate. Thanks to a group of entrepreneurs from Vysočina. of communication among doctors and this project, the Vysočina Region has Last but not least, the Brussels Office patients and adapt the internal processes managed to carry out video broadcasts of the Vysočina Region is helping to of functioning of hospital networks in (unique in the Czech Republic) from prepare and organise a number of social a way that would enable monitoring and meetings of regional assembly of the and cultural events in Brussels (the First regulation of the movement of patients Vysočina Region as well as the municipal Czech Ball in Brussels, a Czech Street depending on waiting times for assemblies of the city of Jihlava and the Party in Brussels and more). Furthermore, examinations in emergency rooms. The town of Nové Město na Moravě. In the IT the Office also prepares independent Office of the Vysočina Region in Brussels sphere, the Office also cooperates with Vysočina theme events in Brussels (an is also helping to mediate cooperation the EPMA agency, co-founded by the exhibition of photographs of beauties of with Members of the European Vysočina Region. In February 2008, the the Vysočina Region in Brussels, echoes of Parliament on a project of the Vysočina Office and EPMA co-organised the first the International Documentary Film Region, entitled Legese. The project ever gathering on the premises of the Festival Jihlava in Brussels, and other focuses on the use of modern internet Czech House of local, regional, and events). technologies for the monitoring and national experts on e-Participate from evaluation of implementation of EU a number of European countries who met legislation in various regions of the EU in to discuss the European DEMOnet project. specific areas of the environmental In terms of support for the business agenda. The Office of the Vysočina sector, the Office cooperates with the Markéta Heřmanová Region also provides representations of Regional Chamber of Commerce, with Representative of the Vysočina Region other regions in Brussels with information MEP Ivo Strejček, and is currently in Brussels on another IT project of the Vysočina preparing a business trip to Brussels for (e-mail: [email protected])

The chateau and St Prokopius‘ Basilica in Třebíč, the latter a UNESCO-listed monument Photo: CzechTourism

25 | REGION

Free Areas for Investors in the Region

The Regional Development One of the activities within the scope of suitable properties for business activities, Agency of Vysočina operates in these services is the creation and regular offering not only industrial land/zones but update of the industrial properties’ also industrial properties suitable for sale or the area of support of direct database. The database includes all the rent. domestic and foreign investments. This service Locality District Total (ha) Free (ha) especially consists of the Golčův Jeníkov – Riegrova Havlíčkův Brod 8 6 assistance to small towns, Golčův Jeníkov – Ráj Havlíčkův Brod 2.5 2.5 municipalities, and regions Golčův Jeníkov – Obora Havlíčkův Brod 7 4.0 creating new business Chotěboř Havlíčkův Brod 9.7 9.7 investments. It offers complex Havlíčkův Brod 10.5 10.0 services to investors and gives Přibyslav – North Havlíčkův Brod 8 4.0 advice on opportunities for Světlá nad Sázavou Havlíčkův Brod 3.2 3.2 business and regional activities, Ždírec nad Doubravou – South Havlíčkův Brod 16 2.0 especially regarding the future Ždírec nad Doubravou – North Havlíčkův Brod 27 13 placement of investment Dolní Cerekev Jihlava 2.8 2.8 activities and their financial Jihlava – D1 Industrial Park Jihlava 28.0 28.0 security. The Regional Telč – Rovná pole Jihlava 8.8 8.8 Development Agency of Vysočina Třešť – Štajferna Jihlava 8.5 8.5 is the contractual partner of the Humpolec – CTP D1 Pelhřimov 10.0 4.0 CzechInvest Investment and Jiřice Pelhřimov 7.0 5.0 Business Development Agency, Kamenice n. Lipou - Gabrielka Pelhřimov 11.7 3.0 which implements investment Pacov Pelhřimov 6.0 6.0 incentives. Pelhřimov Pelhřimov 30.0 3.0 – K Hubertu Třebíč 4.0 4.0 Jaroměřice nad Rokytnou – locality A Třebíč 2.2 2.2 Jaroměřice nad Rokytnou – locality B Třebíč 3.0 2.5 Jaroměřice nad Rokytnou – locality C Třebíč 1.2 1.2 Jemnice Třebíč 5.6 5.6 Moravské Budějovice – U sila Třebíč 11.4 11.4 Moravské Budějovice – U TS Třebíč 8.0 8.0 Náměšť nad Oslavou – Bítýšská Třebíč 4.0 4.0 Náměšť nad Oslavou– Na Koretinách Třebíč 5.0 5.0 Třebíč – Hrotovická Třebíč 11.4 11.4 Bystřice nad Pernštejnem Žďár nad Sázavou 60.0 57.0 Nové Město nad Metují – Geam Žďár nad Sázavou 2.0 1.0 Nové Město nad Metují – Pohledecká Žďár nad Sázavou 5.5 5.5 Stránecká Zhoř Žďár nad Sázavou 18.2 0.8 Velká Bíteš – Košíkov Žďár nad Sázavou 13.5 7.9 Velká Losenice Žďár nad Sázavou 4.0 4.0 Velké Meziříčí – Jidášky Žďár nad Sázavou 15.0 4.0 Velké Meziříčí – Třebíčská Žďár nad Sázavou 15.0 2.0 Ždár nad Sázavou – Jamská Žďár nad Sázavou 22.0 19.0

The Regional Development Agency of Vysočina offers more detailed information regarding the above-mentioned industrial zones (for example the available technical infrastructure, the owner’s contact information, price etc.).

Contact: [email protected] www.rda-vysocina.cz

| 26 REGION

Jihlava – Centre of the Vysočina Region

The history of the town goes PRESENT back to the , when Today Jihlava is the administrative, commercial, the town became wealthy due to industrial, and cultural centre silver mining and later from of the Vysočina Region. It is trade and crafts. The historical also the statutory town and centre was declared an urban the seat of the Vysočina Region. There is one college heritage reserve in 1982. There of non-university type in the are 582 buildings containing 214 town – the College of cultural monuments, of which 70 Polytechnics, which has been transformed from a Higher are first-class. Many sites are Professional School. open to the public today and Jihlava ranks among the represent the pride of the former industrial and agricultural royal mining town. towns. During the 1990s, the structure of employment according to sectors changed and the number of employees in the primary The fountain and square in the town of Jihlava sector is still decreasing. In the future we park offers land with a complete expect a further release of the labour force infrastructure and it is directly connected from agriculture. There is a high to a slip road to the motorway. concentration of industrial production During this year the long-awaited by- here, which provides approx. 65% of the pass around the town will be finished. It jobs in the District. Jihlava has a large will redirect traffic from the motorway to qualified labour force due to the fact that Znojmo from the centre of the town and it its industry is very diverse (mechanical will speed up and simplify travel in the engineering, metalworking, woodworking, direction of Vienna. textile industry, leather manufacturing, furniture making, food industry, glass PARTNERSHIP manufacture, and electrical industry). The The town of Jihlava has two sister towns – largest employers include Bosch Diesel, in the Netherlands and Automotive Lighting, Tesla, Moravské Heidenheim in Germany - with which it is kovárny, Kronospan, Jipocar, and many developing co-operation mainly in the others. areas of education, culture, and town development. OPPORTUNITIES FOR INVESTMENT OPPORTUNITIES FOR Statutární město Jihlava In the northern part of the town, in the A VISIT (Statutory Town of Jihlava) direct vicinity of the D1 motorway, there is It is possible to visit the Jihlava Town Hall, Masarykovo nám.1 an industrial zone. It connects to the which was created by connecting three 586 28 Jihlava existing industrial areas – Moravské originally separate houses, as well as the Czech Republic kovárny, Swotes, Tesla, Kronospan, and cellars, whose passageways are 25 e-mail: [email protected] other smaller companies. The industrial kilometres long and lie beneath the whole www.jihlava.cz historical centre. It is possible to see a panoramic view of the town from the look-out tower of St James’ Church or from the Holy Mother Gate. Each year the town livens up during its traditional festivals: every other year in June there is the Jihlava Miners’ Parade, while in autumn, the town hosts two international festivals – the Mahler Jihlava Music Festival and the International Documentary Film Festival. This year, a Centre for Documentary Film will be opened in the Dukla Cinema. An increasing number of visitors come to appreciate the unique historical and poetic beauty of Jihlava. We cordially invite you too.

The building of the Regional Office in Jihlava Photo: Regional Office of the Vysočina Region, CzechTourism

| 28 CZECH BUSINESS AND TRADE

Jihlava District Jihlava

a broader context, part of the main BRIEF STATISTICS Statutární město Jihlava communication link from northern Europe Indicator District and Scandinavia to the south-east of (Statutory Town of Jihlava) Area (in sq. km) 1 199 Europe and western Asia. Masarykovo nám. 1 Population 111 178 The District’s key branch of industry is 586 28 Jihlava Inhabitants/sq. km 93 engineering, with food and wood Czech Republic Unemployment rate (in %) 4.99 processing and the textile industries all phone: +420 567 167 111 Source: Czech Statistical Office fax: +420 567 310 044 sharing an important role. Another source (as of 30 September 2007) e-mail: [email protected], of employment is the building industry www.jihlava.cz and commerce. Agriculture and forestry average. Cereals, potatoes, rape, and employ 6.5% of the economically active maize are grown here. population, which exceeds the country’s

The District of Jihlava is located in the central part of the Českomoravská vrchovina Highlands. 111 178 inhabitants live within its 1 199 sq. km. Administratively, it comprises 123 municipalities, five of which are towns. The largest industrial town and administrative centre of the District is the town of Jihlava with 50 136 inhabitants. Jihlava's historical centre is an urban heritage reserve with over 200 listed monuments on an area of 30 hectares. The main square is the pride of the town and ranks among squares of historical importance in the Czech Republic and Central Europe. Another urban heritage reserve is the historical square in the town of Telč, which has been included in the list of monuments protected by UNESCO since 1992 (www.telc.cz). The District is a part of the central European urbanised axis of Berlin-Prague- Bratislava-Vienna-Budapest which is, in Telč Golf Club is a much sought-after course. The Czech Republic is called the golf tiger of Central and East Europe.

SELECTED FIRMS Name Based in Sector Contact Jihlavan, a. s. Jihlava aviation hydraulics www.jihlavan.cz Motorpal, a. s. Jihlava parts for the automotive industry www.motorpal.cz Tesla Jihlava, a. s. Jihlava electronics www.teslaji.cz Kostelecké uzeniny, a. s. Jihlava production of smoked meats www.ku.cz Biona Jersín, s. r. o. Jersín chemicals, fodder www.biona.cz Krahulík-Masozávod Krahulčí, a. s. Telč production of smoked meats www.krahulik.cz Moravské kovárny, a. s. Jihlava metal working www.mokov.cz Terco CB, a. s. Telč production of furniture www.terco.cz Swotes, s. r. o. Jihlava electrocomponents www.swotes.cz Jipocar, s. r. o. Jihlava logistics www.jipocar.cz Aneta Style, s. r. o. Jihlava production of textiles www.anetastyle.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Robert Bosch Investment Nederland B.V. Netherlands Bosch Diesel, s. r. o. vehicle and packaging machine parts www.bosch.cz Tchibo Coffee Nederland B.V. Netherlands Tchibo Praha, spol.s r.o. coffee roasting and packaging www.tchibo.cz Automotive Lighting Germany Automotive production of lighting Holding GmbH Lighting, s. r. o. devices for automobiles www.al-lighting.cz Kronospan Holdings Limited Republic of Cyprus Kronospan CR, s. r. o. wood processing www.kronospan.cz Methode Electronics Inc. USA Optokon, s. r. o. electronics www.optokon.cz echTourism PMA Techniek Netherlands Pezag, a. s. engineering www.pezag.cz Gebr. Swoboda GmbH Germany Jipocar, s. r. o. logistics www.jipocar.cz VETROFOND s.r.l. Italy Sklárna Janštejn, s. r. o. production of glass http://janstejn-sklarna.trade.cz/ Photo: Cz

29 | REGION

HavlíãkÛv Brod Havlíčkův Brod District

The Havlíčkův Brod District is situated in BRIEF STATISTICS Městský úřad Havlíčkův Brod the north of the Vysočina Region. It lies Indicator District (Havlíčkův Brod Municipal Office) within the Českomoravská vrchovina Area (in sq. km) 1 265 Havlíčkovo nám. 57 Highlands and includes parts of the Population 95 397 580 61 Havlíčkův Brod Protected Landscape Areas of Žďárské Czech Republic vrchy Hills, and Železné hory Mountains Inhabitants/sq. km 75 phone: +420 569 497 111 (www.chko.cz). Unemployment rate (in %) 4.58 The District includes 18 small Source: Czech Statistical Office fax: +420 569 497 197 (as of 30 September 2007) e-mail: [email protected] protected areas, the most important of www.muhb.cz which is the Ransko National Natural Reserve, and the valuable landscapes of

Malinská skála Rock, a natural protected site in the Žďárské vrchy Protected Landscape Area the Melechov and Doubrava Natural Parks. The District is divided into 120 municipalities, eight of which are towns. The largest industrial town and the administrative centre is Havlíčkův Brod with 24 572 inhabitants. Industry and agriculture play an important role in the District's economy. The main fields of industrial production are engineering, the textile industry, glass-making, and woodworking. Agriculture focuses on potatoes and cereals, while livestock production is Lipnice nad Sázavou Castle is a favoured tourist site. In its vicinity there is a house where the writer of world fame, Jaroslav Hašek, lived. focused on cattle and milk.

SELECTED FIRMS Name Based in Sector Contact Sklo Bohemia, a. s. Světlá nad Sázavou glass manufacture www.sklobohemia.cz CAMONA, s. r. o. Chotěboř electronics www.camona.cz Tenez, a. s. Chotěboř machines and devices for the food and chemical industries www.tenez.cz Galatek, a. s. Ledeč nad Sázavou manufacture of machines and technology lines www.galatek.cz Naturamyl, a. s. Havlíčkův Brod food processing www.naturamyl.cz Ross Holding, s.r.o. Havlíčkův Brod electronic infra-systems www.ross.cz BMB kovovýroba spol. s. r. o. Havlíčkův Brod metal production www.bmbkovovyroba.cz ELASTA - VESTIL spol. s r. o. Krucemburk production of elastic woven fabrics www.elasta-vestil.cz CAESAR CRYSTAL BOHEMIAE, a. s. Světlá nad Sázavou glass manufacture www.caesar-crystal.cz/

SELECTED FIRMS Name Based in Sector Contact BONGRAIN EUROPE S.a. s. France PRIBINA, spol. s. r. o. food processing www.pribina.cz DIRICKX GROUPE S. A. France DIRICKX BOHEMIA spol. s. r. o. manufacture of fences www.dirickx.cz Schiesser Group AG Germany Pleas, a. s. textile production www.pleas.cz Paul Hartmann AG Germany HARTMANN - RICO a. s. articles of hygiene www.hartmann.cz Holzwerke Wimmer GmbH Germany Stora Enso Timber HV s.r.o wood processing www.wimmer.com Futaba Industrial Co., Ltd. Japan Futaba Czech, s.r.o. car body manufacture www.fcz.cz Stora Enso Timber AG Austria Stora Enso Timber Ždírec, s.r.o. wood processing www.storaenso.cz Extruform Kunst. GmbH Germany Extruindustrie, s.r.o. plastics processing www.extruindustrie.cz Photo: Regional Office of the Vysočina Region, Agency for Nature Conservation and Landscape Protection of the Czech Republic

| 30 CZECH BUSINESS AND TRADE

Pelhřimov District Pelhfiimov

natural resources and natural soil fertility. BRIEF STATISTICS The District's main industries are light Městský úřad Pelhřimov Indicator District engineering, electronics, food-processing, (Pelhřimov Municipal Office) Area (in sq. km) 1 290 Masarykovo nám.1 and the wood processing industry. Population 72 861 393 01 Pelhřimov Agriculture is dominated by the production Inhabitants/sq. km 56 Czech Republic of potatoes, cereals, and technical crops. Unemployment rate (in %) 3.02 phone: +420 565 351 111 The District's unemployment rate is the Source: Czech Statistical Office (as of 30 fax: +420 565 323 601 lowest in the entire Region (3.02%). September 2007) e-mail: [email protected] www.mestopelhrimov.cz

The Pelhřimov District is located in the west of the Vysočina Region. It forms part of the Českomoravská vrchovina Highlands, and is often referred to as the “Gate to Vysočina". The entire area of the District is distinctly hilly in nature. An important watershed is located on the dividing ridge between two of Europe's large rivers: the Danube and the Elbe, that carry water to the Black and the North Sea, respectively. The District is attractive mainly due to its diverse natural environment (www.pelhrimovsko.cz). The District is located close to the main Central European urbanised axis of Berlin- Prague-Bratislava-Vienna-Budapest. The D1 motorway, a traffic artery of European importance, passes through the north-east of the District. There are 120 municipalities, here, nine of which are towns. The largest town, and the centre of services and industry, is the town of Pelhřimov with its 16 674 inhabitants. The economy is marked by a lack of Pelhřimov square during the composition of the largest mosaic of the Czech national flag, 29.44 by 16.66 metres. Pelhřimov is known as a town of records. Its Museum of Records and Curiosities documents numerous Czech and world records and displays many unique exhibits.

SELECTED FIRMS Name Based in Sector Contact Agrostroj Pelhřimov, a. s. Pelhřimov farm machinery www.agrostroj.cz Dřevozpracující družstvo Lukavec Lukavec wood processing www.ddl.cz Knoflíkářský průmysl Žirovnice, a. s. Žirovnice manufacture of buttons www.kpzas.cz Spojené kartáčovny a. s. Pelhřimov production of paper and man-made fibres www.spokar.com Rodinný pivovar BERNARD a. s. Humpolec beer production www.bernard.cz Busch Pelhřimov, spol. s r.o. Pelhřimov special furniture systems www.busch.cz Český nábytek, a. s. Pelhřimov production of furniture www.ceskynabytek.cz Reflect, a. s. Humpolec metal working www.reflect.cz BAUER - AGROMILK, a. s. Pelhřimov animal husbandry machinery www.bauer-agromilk.com Cerepa, a. s. Červená Řečice paper production www.cerepa.cz Smip, s. r. o. Humpolec staircases www.smip.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact SUMITOMO CORPORATION Japan Steel Center Europe, s. r. o. metal working www.steelcentereurope.com VALEO SYSTEMES THERMIQUES France Valeo Compressor Europe s. r. o. vehicle parts www.valeo.jobs.cz Moser Holzindustrie Gesellschaft m.b.H. Austria Moser Legno, s. r. o. joinery www.moser-legno.cz Hoza Holding B.V. Netherlands Hoza spol. s r.o. metal containers www.hoza.com Lenze AG m.b.H. Austria Lenze, s. r. o. drive technology www.lenze.cz IMI Overseas Investments Limited United Kingdom IMI International, s. r. o. metal production www.imi.plc.uk

Ed. Scharwächter GmbH Germany Edscha Bohemia, s. r. o. vehicle parts www.edscha.cz Museum of Records and Curiosities in Pelhřimov Connaught Electronics Limited Ireland CONNAUGHT ELECTRONICS / electronics www.celczech.cz CZ/ spol. s r.o. Photo:

31 | REGION

Tfiebíã Třebíč District

District. The District's strategic importance BRIEF STATISTICS Městský úřad Třebíč has been boosted by the presence of the Indicator District (Třebíč Municipal Office) nuclear power plant. Apart from Area (in sq. km) 1 463 Karlovo náměstí 55 the power industry, the following industries Population 114 122 674 01 Třebíč are also represented: engineering, production Czech Republic of parts for the automotive industry, Inhabitants/sq. km 78 phone: +420 568 896 111 production of chemicals, and wood Unemployment rate (in %) 8.53 processing. The "Hrotovická" industrial zone Source: Czech Statistical Office fax: +420 568 847 155 (as of 30 September 2007) e-mail: [email protected] (11.4 hectares) designated for industrial www.trebic.cz production is offered for investment by Třebíč

FOREIGN INVESTORS The Třebíč District is located in the south- Investor Country Czech partner Sector Contact eastern part of the Vysočina Region. The of origin District's northern part is heavily wooded, FROMAGERIES France BEL Sýry food processing www.zeletava.cz and thus sparsely populated. The south- BEL,a. s. Česko a. s. industry western part of the District reaches all the Mann+Hummel Germany MANN + HUMMEL automobile www.mann-hummel.cz way to the Austrian borders. AmbH (CZ) s. r. o. filters There are 167 municipalities, six of which Huhtamaki Finance Huhtamaki packaging, www.huhtamaki.cz are towns. The town of Třebíč with its Comp. I.B.V. Netherlands ČR, a. s. paper 39 700 inhabitants is the natural centre of the

(www.trebic.cz). The location is directly linked to existing parts of the town. The Radostín district to the east of the town is an industrial district where the majority of the town's industrial companies are concentrated. Agriculture in the southern part of the District produces potatoes, cereals, fodder crops, meat, and milk.

The Jewish cemetery in Třebíč, a UNESCO-listed View of Třebíč Jewish town, a site on the UNESCO list monument

SELECTED FIRMS Name Based in Sector Contact Agrimex, spol. s r.o. Třebíč Production of chemicals www.agrimex.cz Budest, s. r. o. Moravské Budějovice metal-working www.budest.cz Tedom, s. r. o. Třebíč electromotors www.tedom.cz Artglass Center, s. r. o. Třebíč glass objects of art www.artglass.cz Dřevozpracující výrobní družstvo Jaroměřice nad Rokytnou production of furniture www.dvdjaromerice.cz PBS Industry,a. s. Třebíč engineering www.pbstre.cz Helpon Třebíč, s. r. o. Třebíč textile production www.edb.cz/helpon ČEZ, a. s. Dukovany Dukovany nuclear power plant www.cez.cz ADW Bio, a. s. production of biodiesel www.adwbio.cz Tirad, s. r. o. Želetava engineering www.tirad.cz UNIPLET Třebíč,a. s. Třebíč knitting machines www.uniplet.cz KEVOS, spol. s r.o. Třebíč electrical systems www.kevos.cz ALFA IN, a.s Okříšky welding machines www.alfain.eu/cz/onas.html Photo: CzechTourism

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Žďár nad Sázavou District Îìár nad Sázavou

inhabitants. There are 174 municipalities, BRIEF STATISTICS Městský úřad Žďár nad Sázavou six of which are towns. The centre of the Indicator District District - Žďár nad Sázavou - is the largest (Žďár nad Sázavou Municipal Office) Area (sq. km) 1 159 of them with 24 249 inhabitants. Žižkova 227/1 Population 119 637 The economic sectors of the District 591 31 Žďár nad Sázavou Inhabitants (per sq. km) 76 include engineering, the electrical industry, Czech Republic Unemployment rate (in %) 6.32 metal production, agriculture (potatoes, phone: +420 566 688 111 Source: Czech Statistical Office (as of 30 fax: +420 566 621 012 cereals, beef, and milk), and September 2007) e-mail: [email protected] woodworking. An industrial zone on an www.zdarns.cz area of 22 hectares at the south-east The District has important natural and outskirts of the town is connected with the cultural potential for the development of old industrial area (www.zdarns.cz). tourism (www.unesco.cz).

The traditional National Folk Costume Ball in Žďár nad Sázavou

The Žďár nad Sázavou District lies in the north-east of the Vysočina Region. With an area of 1 579 sq. km, it is the third largest district in the Czech Republic, although the density of its population is low in view of its size. The District has a high share of population living in villages with less than 2 000 inhabitants and a low share of urban Church of St John of Nepomuk in Žďár nad Sázavou, entered in the UNESCO list of monuments

SELECTED FIRMS Name Based in Sector Contact PKS Holding, a.s. Žďár nad Sázavou construction industry www.pks.cz Del, a.s. Žďár nad Sázavou engineering www.del.cz Tokoz, a.s. Žďár nad Sázavou metal production www.tokoz.cz Lisovna plastů, s.r.o. Velké Meziříčí plastic material articles www.lisovnavm.cz Obaly Vysočina,s.r.o. Nové Město na Moravě packaging www.obalyvysocina.cz Troma-Mach, s.r.o. Žďár nad Sázavou engineering www.troma-mach.cz ENPEKA a.s. Žďár nad Sázavou food processing www.enpeka.cz Mars Svratka, a.s. Svratka metal working www.mars-svratka.cz Poex Velké Meziříčí, a.s. Velké Meziříčí cereal food www.poex.cz Medin, a.s. Nové Město na Moravě surgical instruments www.medin.cz Delta Svratka, s.r.o. Svratka wooden buildings www.deltasvratka.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Draka Holding N.V. Netherlands Draka Kabely, s.r.o. electrical industry www.draka.cz Anton Hettich Auslandsbeteiligungs- Verwaltungs-GmbH Germany Hettich ČR, k.s. furniture fittings www.hettich.cz Železiarne Podbrezová, a.s. Slovakia Žďas, a.s. rolling mill equipment www.zdas.cz CSA Holding GmbH Germany Cooper-Standard Automotive vehicle parts www.cooperstandard.com Česká republika s.r.o. ČTK CzechTourism, Wiegel Tschechia Beteiligungen GmbH Germany Wiegel CZ žárové zinkování s.r.o. zinc dipping www.wiegelcz.cz Photo:

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