Czech Republic: Research and Development Surpasses Manufacturing Investment in the Czech Economy Security Services in the Czech Republic

The Czech Republic to preside over the 11-12 Council of the EU in the first half of 2009 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 for the Prime Minister of the Country Presiding over the European Union ...... 4 Issued by PP AGENCY s.r.o. as an exclusive commission ECONOMIC POLICY for the Ministry of Industry and Trade Czech Republic: Research and Development Surpasses Manufacturing ...... 5 of the Czech Republic CZK/EUR Exchange Rate and Its Impact on the Czech Economy...... 7

EDITORIAL BOARD: KALEIDOSCOPE Milan Hovorka (Chairman), Ivan Angelis, 16th Eurochambres Congress 2009 and Business Forum ...... 9 Zdena Balcerová, Jiří Eibel, Růžena Hejná, The Czech Republic – One of the Most Attractive Locations in Europe for Industrial and Logistics Facilities...... 10 Josef Jílek, Zdeněk Kočárek, Tomáš Kopečný, Czech Firms among 500 Largest Companies in Central Europe...... 10 Marie Pavlů, Pavla Podskalská, Josef Postránecký, Employment of Foreigners Will Be Easier ...... 10 Libor Rouček, Jiřina Semanová, Jiří Sochor, Jarmila Škvrnová INVESTMENT Investment in the Czech Economy ...... 11 MANAGING EDITOR: Petr Kamenický CZECH TOP Czech Glass Celebrates Success ...... 13 Expansion of SolarWinds Brno Development Centre ...... 13 EDITORS: Near East Opens Up to Czech Industry...... 14 Jiří Bouzek, Jaroslava Bradová Good Prospects for Filtration Technology ...... 14

REGULAR COLLABORATORS: SERVICES Eva Tomášková Security Services in the Czech Republic...... 16 REGION TRANSLATION: NUTS 3 – South Moravia Region...... 18 – 34 Vlasta Benešová, Alena Kenclová, Robert Krátký, Lucie Pavlíčková, David Stránský, PRESENTATION OF FIRMS Dagmar Šímová, Halka Varhaníková GOLF BRNO a.s...... 2 Trade FIDES, a.s...... 15 READ: Veletrhy Brno, a.s...... 26 Mathew Booth, Pearl Harris, Ivana Kadlecová, UCB TECHNOMETAL, s.r.o...... 27 Karel Kaňák, s.r.o...... 30 Zuzana Pavlíčková KORONA Lochovice, spol. s r.o...... 32 Böttcher ČR, k.s...... 35 GRAPHIC DESIGN: REKONIX, spol. 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 Security Services in the Czech Republic South Moravia Region Fax: +420 224 930 016 e-mail: [email protected] www.ppagency.cz CZECH REPUBLIC PRESIDES OVER THE COUNCIL OF THE EU www.mpo.cz/cbt Press run: 13.500 copies. The Czech Republic will preside over the Council of the EU in the first half of 2009. The number of printed and sold copies The Presidency of the Council of the EU is one of the most important and most of the journal is verified by auditor, HZ Praha, s.r.o., prestigious tasks ensuing from membership of the EU. The task of the presiding member of PANNELL KERR FORSTER Worldwide. country is, for instance, to summon and chair meetings of the Council of the EU, act It is not allowed to reproduce any part as the mouthpiece of the EU, and to represent the Community abroad. The main motto of the contents of this journal without prior consent from the editor. of the Presidency is "Europe without Barriers". One of the topics of the Presidency will Attitudes expressed by the authors of articles be, for example, completing the liberalisation of the labour market. The Czech carried by CBT need not necessarily be consistent Republic will present the programme of chief Presidency objectives to the European with the standpoint of the Publisher. Parliament at the beginning of the Presidency. Further information on the Czech EU MK ČR E 6379, ISSN 1211-2208 Presidency will be available during the Czech Presidency in the first section of the „Podávání novinových zásilek povoleno magazine under the title Questions for the Prime Minister of the Country Presiding Českou poštou, s. p., odštěpný závod Přeprava, over the European Union. č. j. 3468/95, ze dne 24/10/1995“

Front cover: Photocombo 3 | INTRODUCTION

Questions for the Prime Minister of the Country Presiding over the European Union

The third priority contains primarily further and innovation. We are working with EU enlargement and the continuation of Sweden for the debate to open on a full negotiations on a common asylum policy, scale at the beginning of 2009 at the solution to the problem of migration and latest, which means during our Presidency. integration of foreigners. As I have said, we consider a reform of the We cooperate on our priorities within Common Agricultural Policy (CAP) as a the presidential trio with France and very important item in the EU budget Sweden, i.e. the country which precedes reform. In the CAP reform debate the us and the country which succeeds us. We Czech Republic will primarily strive for cuts have drafted a joint programme of the in CAP expenditures after 2013, and only presidential trio, which is essential for then for a reduction in expenditures on continuity in addressing problems. Work is direct payments in support of rural still continuing on the details of our development. The Czech Republic supports priorities and, as usual in the EU, their final the removal of all historically developed form will be made public just before our inequalities in CAP subsidies among the Mirek Topolánek Presidency, which means in the second half member states and is pushing for equal of December. conditions. Mr Prime Minister, could you describe the Czech Republic’s priorities for the Presidency of Can you give concrete examples of What contribution will the Czech the Council of the European the proposals for change that the Republic make to the process of Union in the first half of 2009? Czech Republic will make during its European integration? Can we Presidency? expect any significant changes in Our priorities currently have the For example, we are proposing that once European integration? form of "three E’s": Economy, the Lisbon Treaty comes into force, I do not think we need anything like that. Energy, External Relations, or summits with third countries on EU soil be Let us adhere to the values on which the Competitive Europe, Energy and hosted by the presiding country. We also original community was established. Our Climate Change, and Open and Safe favour the role of the permanent president first president, T.G.Masaryk, said that Europe. The first priority includes full of the European Council to be that of a states are maintained by the ideals which moderator of debate rather than a policy they were founded upon. The original application of the four fundamental maker of the whole EU. We also want to goals of European integration are so freedoms of the EU - the free work for new member states to be powerful, so viable, and so universal that movement of persons, goods, represented in appointments to high posts they have survived for fifty years and will capital, and services. We particularly in the EU institutional structure. With a easily survive for centuries to come. All seek the lifting of the transitional view to effective functioning of the EU also that may be added (artificially) will be measures on the free movement of after the Lisbon Treaty comes into force it weaker, less inspiring, and worse to share is necessary to involve the highest political universally. workers from the new countries, and representatives of the member states in The original goals contain the complete implementation of the the performance of the EU Council fundamental values without which human services directive. It also includes Presidency. We will propose the life loses its crucial quality. Today we support for small and medium-sized establishment of an informal consultative consider these goals a matter of course, enterprises, a revision of the EU mechanism between the prime minister of but this should not certainly lead us to budget - especially the Common the presiding country and the president of forget what stones form the true the European Council at the beginning of foundations of European integration: Agricultural Policy, assessment of the the presidency and before European peaceful cooperation between former impact of bureaucratic burden on Council meetings. enemies, and emphasis on the role of free entrepreneurs, and implementation market as the most efficient tool of of a revised Lisbon Strategy. As far general prosperity. Not a single one of the as energy is concerned we will You have indicated that the Czech fundamental values was automatic after particularly work for energy safety Republic will promote debate on a the Second World War. Trust among the revision of the EU budget, what nations of Europe was strongly shaken. and for the accommodation of should the outcome of this debate Free market had tough opponents in the climate protection with the needs of be? rising socialism as well as in the surviving the economy. We will also prepare We want primarily to support steps which mercantilist protectionism. Despite that, for the climate summit that will be will promote the competitiveness of the the founding fathers succeeded in giving held in Copenhagen. European economy and European the European community a dynamism enterprises, such as modern technologies which continues until the present day.

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Czech Republic: Research and Development Surpasses Manufacturing

Two-thirds of new incoming IT INVESTMENT expansion of companies already doing companies to the Czech PREVAILS business in the Czech Republic. "This The Czech Republic has become means that they are doing so well in this Republic invest in research and especially popular with software country they have no reason to leave but, development or services. This developers. Sixteen of them came to settle on the contrary, they are expanding their trend is evident from the in the heart of Europe with activities here. This is obviously the most statistics of CzechInvest, the CzechInvest’s assistance in the first half of significant indicator of the quality of our 2008, accounting thus for the majority of business environment", Ms Rudyšarová government agency entrusted new companies. For the first time their explains. with attracting new investment. number exceeded that of traditional Many foreign companies have launched For the first time research and champions - manufacturers of car parts and their Czech activities by setting up engineering. "In the past the largest manufacturing plants. Now they are development makes up the number of projects were traditionally those operating research centres and training majority of new projects, while of investors from the motor industry, while their key employees here. One such firm is, manufacturing prevailed up to nowadays companies specialising in for example, Panasonic, and similar cases the first half of this year. "The information technologies are on an equal are those of Ingersoll-Rand or Honeywell. footing", Ms Rudyšarová says. "The region "CzechInvest has thus proved to be right core of new investment is most successful in attracting IT investment in its decision to focus attention on existing constituted rather by relatively is South Moravia, which attracted the investors and intensify aftercare aimed at small sophisticated projects largest number of software developers, six creating an ideal environment for further which do not require extensive companies to be precise, in the first half of expansion in the Czech Republic", Ms this year thanks to the concentration of Rudyšarová notes. funding but rely primarily on technical schools and talented specialists." the capabilities and knowledge BIO, NANO, IT, AND OTHER of employees", says Alexandra CZECHS ARE MOST ACTIVE PRIORITIES The majority of new investment projects CzechInvest works to attract exceptional Rudyšarová, Chief Executive which CzechInvest dealt with in the first foreign investment to the Czech Republic. Officer of CzechInvest. half of this year had been prepared by The Agency has identified eight priority Figures confirm this trend. In companies based in the Czech Republic. sectors where the Czech Republic has the the first half of this year, There were 78 such projects worth almost most to offer. EUR 200 million. Companies from Germany Besides traditionally strong sectors such CzechInvest mediated 124 new are the second most numerous, at quite as the motor industry and engineering, the investments, 80 of which are in a distance with 12 projects. list for example includes the aircraft research and development or Despite this, for German companies the industry, electronics, medical equipment, IT services. Altogether they are Czech Republic remains the most attractive and software development, biotechnology, country for foreign investment from among and nanotechnology. worth more than EUR 720 the new members of the European Union. Especially the last two mentioned million. "Compared to last year, This is the conclusion of a recent survey of sectors – biotechnology and the overall value of new the German-Hungarian Chamber of nanotechnology – promise very interesting Commerce. According to far more results in the near future. Companies able investments fell, but their extensive worldwide research conducted by to pride themselves on their results are for number has increased and what Ernst & Young, the Czech Republic is the example Optaglio, whose original Czech increased particularly is their 9th most sought-after country for new hologram technology is used by Calvin technological level", Ms investment on a global scale. It also ranks Klein for anti-pirate protection of its among the ten most suitable countries for clothing, or by the United Arab Emirates for Rudyšarová adds. In the first investment in new shared service centres. the protection of driving licenses against half of last year, CzechInvest counterfeiting. mediated 83 projects for the INVESTORS DOING WELL IN Czech Republic worth EUR 1.8 THE CZECH REPUBLIC EUROPE’S BIOTECHNOLOGY The statistics of projects mediated by CENTRE billion. However, 90% of these CzechInvest demonstrate that almost 65% Brno, the second largest city in the Czech involved investments in of new investment is accounted for by the Republic, is also the setting for a unique manufacturing. INVESTMENT PROJECTS OF CZECHINVEST – 1ST HALF OF 2008 Type of investment Jobs created Investment (EUR million) Manufacturing 4 542 613.9 Shared services 4 587 46.6 Technology centres 540 51.3 Total 9 669 711.8 These statistics reflect the projects of domestic and foreign companies that invested in the Czech Republic with CzechInvest’s assistance between 1 January 2008 and 30 June 2008. Source: CzechInvest

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International Clinical Research Centre, which is being established here. The local St. Anne's University Hospital, a teaching facility, cooperates with the US-based Mayo Clinic, one of the world’s three most respected institutions in biotechnology, to set up and operate the centre. Thanks to the future project, the Czech Republic is able to send large numbers of students and specialists for training to the Mayo Clinic. For comparison – the list of all applicants for the highly prestigious training at the Mayo Clinic contains the names of 50 000 physicians from the world over. The International Clinical Research Centre is expected to greatly accelerate the development of new technologies and procedures in medicine. Companies doing business in the Czech Republic will naturally have the best chance to use the potential of these findings. Current originating particles, and, most importantly, sensors, 50 by 400 microns in size, must be investors in this area for example include a detector to measure the paths of new resistant to extreme radiation, which is Baxter and Lonza pharmaceutical particles close to collision. generated in the accelerator during manufacturers, as well as Olympus, which The detector is the part of the apparatus experiments. The miniature sensors have operates a service centre in the Czech with the most complex technology. Its been produced by the Czech-based ON Semiconductor. This technology can be applied in Number of projects by type of investment, 1st half 2008 everyday use for example in medicine for diagnosis of malignant tumours. It allows quality images to be obtained at far lower Shared services 20% energy levels. The device will thus expose patients to far lower radiation than equipment in use at present. Other opportunities for its use include quality control of critical parts of structures in aviation for instance. Czechs are great fans of cutting-edge technology. This is evident for example from the interest Czechs have shown in the SETI@home project – a legendary Technology centres 45% programme for analysing radio images of Manufacture 35% the sky in order to scan them for extra- terrestrial intelligence through a volunteer Source: CzechInvest

Republic as well as a development TOP-10 LARGEST INVESTMENTS IN THE FIRST HALF OF 2008 laboratory and prototype workshop for the Investor Sector Country Investment Jobs manufacture of endoscopes. of origin (USD million) Synthos S.A. chemicals and Poland 149.80 101 CERN MADE IN THE CZECH pharmaceuticals REPUBLIC apt Hiller engineering Germany 99.22 85 Original Czech technologies are also being VTK CYLINDERS engineering Czech Republic 77.56 86 used within the most complex device ever Brück AM 2 engineering Germany 64.56 110 KOVOSVIT MAS, a.s. engineering Cyprus 58.11 29 created on Earth. Czechs are partaking in 1) PANASONIC AUTOMOTIVE electronic and Japan 43.59 274 three experiments conducted on the LHC SYSTEMS CZECH, s.r.o. electrical particle accelerator at the CERN in the Tafonco a.s. metalworking Czech Republic 25.39 176 Alpine foothills: ATLAS, ALICE, and TOTEM. Taforge a.s. manufacture of Czech Republic 24.04 44 The most extensive participation of Czech transport equipment scientists and technicians is in the ATLAS Frýdlantské strojírny engineering Czech Republic 20.60 329 experiment. They have produced for it DART other Belgium 21.16 36 a calorimeter for measuring the energy of Source: CzechInvest Photo: Photocombo

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grid comprising thousands of computers. intensely targeted by the Czech Republic. technology parks. Over 9 000 students Czechs rank sixth in the world in terms of The positive news is that such projects can graduate from universities each year. All the volume of processed data, i.e. in the receive co-financing both from national this means that the Czech Republic’s number of involved volunteers. resources and from European Union funds research and development potential has at least up to the year 2013. reached the critical mass for the founding TARGET? HIGH-TECH! EU funds support investment by of new clusters and spin-offs. An ideal The Czech Republic is home to a number of individual companies – the establishing of environment for new high-tech investment. revolutionary scientific discoveries and a research centre or, for instance, the technologies. Polarography, soft contact launch of a shared service centre, as well as Jiří Sochor lenses, the most efficient drugs against software development. Indeed, EU grants PR Executive, CzechInvest AIDS or the original electron microscope also help to create an extensive research www.czechinvest.org technology - all these originated in the and development base. (e-mail: [email protected]) Czech Republic. The map of the Czech Republic is thus This is precisely the type of investment studded with some fifty science and 1) LHC Large Hadron Collider

CZK/EUR Exchange Rate and Its Impact on the Czech Economy

A year ago, no one expected What, then, influenced the exchange a recession, companies could no longer the euro to exchange for 24 rate the most? About 80% of compensate their exchange rate losses by movements in the Czech exchange rate growing revenues. What’s important for the Czech crowns in the 2008 third this year can be explained by changes in the Czech economy now is how Czech companies quarter. It was a 13% increase trends on the euro-dollar market. In the first will succeed in changing their focus from year on year. Steven Levitt, half of the year the euro was improving Western markets to Eastern ones. Emerging against the dollar, but then the situation markets are recording great increases in sales at a professor from Chicago, and turned around. In the first half investors were present. If Czech companies succeed in re- Stephen Dubner of the New withdrawing money from the USA and putting directing at least part of their production and if Yorker magazine have written them in Central European currencies. They the crown behaves reasonably well, I consider a brilliant book, headed back to the dollar mainly in the third the return of the Czech economy to 6% GDP quarter, thus causing a correction of the growth in several years a realistic prediction. "Freaconomics". Its title is an exchange rate to the Czech crown. Ten, fifteen What is apparent in the Czech economy at apt word to describe the per cent of Czech currency movements can be present is not a dramatic slow-down, but rather monetary conditions in the explained by the monetary and fiscal policies a "sobering return to reality". Recently, of our region. Model examples include the a number of companies received orders Czech Republic. To rephrase it: change in the Czech National Bank’s monetary exceeding their capacity. Orders have now a freaky economy, meant from policy from the raising of interest rates to their dropped to values of the production potential. my side in all respect and lowering, Poland’s politically proclaimed effort Companies will be cancelling extra shift work decency. You may have read all to quickly introduce the euro, or the problems and returning to normal operation. However, arising from the risks associated with the policy of severe cost saving will once again classical macroeconomic Hungary’s national debt. Naturally, there is be the order of the day. textbooks day and night. You always a small "remainder" of exchange rate may have drawn up on paper developments for which a rational explanation SECTOR ANALYSIS OF THE is hard to find. CZECH ECONOMY a good model of the monetary What impact has the triple combination of conditions from statistical data. STRENGTHENING CROWN NOW a financial crisis, the eurozone slow-down, plus But you have had no chance of A TREND the pressure of the strengthening EUR/CZK predicting the exchange rate of The crown has strengthened in the past. This during the last 12 months had on Czech has become a tradition - a trend. However, the enterprises, or what impact will it have? One the Czech crown this year. situation has changed somewhat recently. In possible approach is to analyse new orders the last three years, the increase in the earnings and revenues from sales abroad across the of Czech companies abroad has been higher sectors. The idea is as follows: where than the strengthening of the exchange rate. In revenues from exports have been falling for 2008, this trend reversed and because of several months, while new orders do not

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indicate an improvement, there is a big problem, or there will soon be one.

Textiles, clothing, glass Practically throughout this year, both revenues from exports and new orders have been lower in these segments by year-on- year comparison, both on average by 20%. Large-scale production in these segments will soon come to an end. Only companies that will slim down and will have up to about 100 employees will survive. At the same time they must quit mass machine production, stake their future on quality and handwork, build a luxury brand and win loyal customers. Car makers, machine manufacture and repairs, computers, pulp and paper, chemical and pharmaceutical industries Orders in these sectors have been dropping for most months of this year, but it was no drama. Revenues from the sale of products abroad have still been mostly rising. A case accepted as standard and trouble-free just as than double – 1.8%. Members of the eurozone study: one effect of the financial crisis is that those in the American currency. Over the last had managed to attain the same productivity people in West Europe will put off new car ten years the European currency has, on growth in their own history – in the years 1980 purchases. The lower demand may impact a technical level, been a brilliant success. to 1990. However, patents, innovation and on Czech car makers in the West. Many will Average inflation in the euro area over the model examples of cooperation between start cutting production and adopt a wait last ten years has been 2.1%, with 1.6% in the schools and companies are still to be found and see approach. United Kingdom, and 2.7% in the USA. GDP rather on the other side of the Atlantic than on Metals and metallurgy growth was higher in both America and the UK our continent. The list of the most competitive Surprise winners? This dimension of the in the 1999-2007 period. The difference, countries compiled by the World Economic analysis has shown fair increases in sales in however, does not exceed 0.6 percentage Forum is topped again by the USA. these sectors hand in hand with rising orders points on average. from abroad. Indeed, from this angle the Thus, we are witnessing no drama. The The Euro has most benefited those who manufacture of basic and other non-ferrous general macroeconomic evaluation is different were prepared. metals and fabricated metal products is from the technical perception. Looking at Let us compare textbook examples: Italy on the currently the most dynamic sector of the figures, the euro does not appear to guarantee verge of recession on the one hand, and Czech economy. higher or lower economic growth. Similarly, it Ireland’s dynamics on the other hand. Let us does not guarantee faster or slower inflation. look at the real estate crisis in Spain and EURO INTRODUCTION However, due to the short timelines and the compare it with the stability of the sector in In terms of the exchange rate of the crown, it is low number of economic cycles, there is no way Austria. Where a country itself experiences often said the Czech Republic’s entry into the of verifying this accurately by applying an a specific slump, the club will not help with eurozone may be a solution to the unstable economic model. However, with deeper a monetary policy change - by lowering interest exchange rate of the Czech currency. This is macroeconomic insight, we arrive at two rates in this case. Either the countries have rules why the analysis also deals with this issue. principal conclusions: in place allowing the market enough freedom When the leaders of the European Union and motivation to adapt, or they trust the approved the launch of the eurozone at the The euro did not help members of the club abilities of the fiscal policy of the state. Brussels summit in May precisely ten years ago, with structural problems of their economy. This is also my reasoning in relation to euro no one expected the euro to be 50% stronger The eurozone’s average annual growth of adoption by Slovakia and the Czech Republic. If than the dollar today compared to its starting labour productivity over the last ten years has we take a look at the last ten years, we can position. It has won the confidence of the been 0.8%. The figure in the USA and the state: the euro will not implement reforms on financial market. Contracts in euros are United Kingdom for the same period was more our behalf. It is necessary to persevere with the started reform efforts. If our vision is a knowledge-based society, – "I think it’s a big gamble and I’m not optimistic…there’s a lot of and if our strategic goals are secured pensions, uncertainty in prospect." Milton Friedman, Winner of the Nobel Prize for competitiveness of Czech products, productivity Economic Sciences, on the founding of the eurozone, interviewed by of our companies and corresponding wage Radio Australia on 17 July 1998. growth, then the Czech Republic cannot rely on – "I am both proud and happy to be able to say today that reality has the euro. proven his (Friedman’s) pessimism wrong!" Gertrude Tumpel-Gugerell, Aleš Michl Member of the Executive Board of the European Central Bank, at Analyst a conference in Austria on 6 May 2008. Raiffeisenbank (e-mail: [email protected]) Photo: Photocombo

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Kaleidoscope

16TH EUROCHAMBRES CONGRESS 2009 AND BUSINESS FORUM

The Czech Chamber of Commerce has been entrusted with organising the 16th Congress of European Chambers of Commerce, the Eurochambres 2009. The Congress, which will take place in Prague from 14 to 15 May 2009, will bring together the representatives of all major chambers of commerce in Europe. It will be one of the most important events to accompany the Czech presidency of the Council of the European Union. An integral part of the 16th Eurochambres Congress will be the Business Forum, to be held for the very first time. This meeting of leading businessmen and managers will focus on promoting co-operation among companies of the European Economic Area, countries of the Commonwealth of Independent States (CIS) and Mediterranean and Persion Gulf countries. The Eurochambres Congress and the Business Forum will be preceded by a number of accompanying and supporting events in various regions of the Czech Republic.

BUSINESS FORUM The Bussines Forum is being prepared as a friendly meeting of representatives of of the 16th Eurochambres Congress 2009 – Doing business on the domestic market the most important companies operating and the Business Forum. The key topics will – Supporting role of the chambers in in the European Economic Area, in CIS be "Barriers to International Trade" and business countries and Mediterranean and Persian "Internationalisation of Business". – Business and sources Gulf countries. The objective of the During the entire duration of the Business Forum is to offer participants Business Forum, bilateral trade talks – Five hundred delegates from 46 Prague’s attractive spring-time setting for matchmaking – will be arranged for the member chambers are expected to attend a discussion on opportunities for participants. the event. intensifying foreign trade, expanding investment activities as well as finding 16TH EUROCHAMBRES Further information available at: ways of eliminating barriers to mutual CONGRESS 2009 www.eurochambres2009.eu trade. The 16th Eurochambres Congress 2009, www.komora.cz The first day of the Business Forum, to which runs in parallel with the Business be opened by the Czech Prime Minister Forum, will focus on the sharing of know- REPRESENTATIVES OF Mirek Topolánek, will be devoted to how and experience in business support 200 COMPANIES ENGAGED panel discussions covering four topics. among economic chambers and chambers IN BRANCHES SUCH AS The day will close with an evening of commerce. reception at Žofín Palace. In line with the main theme of the – power industry and mining The second day will be opened by Czech presidency, which is "Europe – metallurgy Martin Říman, Minister of Industry and without Barriers", the main theme of the – chemical industry Trade of the Czech Republic. The main Congress will be "Business without – engineering and automotive industry feature of the day will be a joint session Barriers", with a special focus on: – construction, building, and revitalisation of infrastructure and line construction – information and communication TOPICS OF PANEL DISCUSSIONS: technologies – food industry – Trade and economic relations with CIS countries: The role of chambers and companies (the panel will be organised by the Chamber for Commercial Relations with CIS). are expected to participate in the Business – Trade and economic relations with Mediterranean countries and Persian Gulf countries Forum. Photo: Photocombo

9 | KALEIDOSCOPE

THE CZECH REPUBLIC – ONE CZECH FIRMS AMONG 500 LARGEST COMPANIES IN CENTRAL OF THE MOST ATTRACTIVE EUROPE LOCATIONS IN EUROPE FOR INDUSTRIAL AND LOGISTICS Czech firms have asserted their strong European companies, and were only second FACILITIES representation among the five hundred to Poland. In terms of market capitalisation, largest companies in Central Europe. the largest company in the region is CEZ, According to the European Distribution According to the Central Europe Top 500 mentioned above. In September 2008, CEZ Report 2008 prepared by Cushman & study prepared by Deloitte consulting achieved yet another success when the Wakefield global real-estate company, company, the Škoda Auto car company’s managing director, Martin three out of the five most attractive manufacturer placed highest among Roman, was presented the title "Company markets for locating industrial and Czech businesses in a survey compiled of Central and Eastern Europe" by Polish logistics facilities are to be found in according to 2007 revenues, ranking Vice Prime Minister and Minister of Central and East Europe. The report immediately behind Poland’s PKN Orlen oil Economy, Waldemar Pawlak, at the 18th reviews 25 countries on the basis of concern and the Hungarian group MOL. Economic Forum in Krynica, Poland. The the costs of rent and labour, The Czech power company CEZ, which prize is awarded for success accomplished smoothness of transport, the share of placed fifth, was, in addition, most under the difficult conditions of different kinds of freight transport, successful of all the monitored companies a transforming economy. The Deloitte population density, and proximity to in terms of capital appreciation. Overall 70 study further points out that if states in key markets. The best-placed country Czech companies appeared in the survey, Central Europe continue in their economic in the survey is Belgium, followed by ranking the Czech Republic third in line reform (privatisation in particular), they may the Netherlands, Hungary, and the after Poland (176 companies) and the well achieve economic growth of Czech Republic. Ukraine (75). In terms of income, approximately 5%. companies in the Czech Republic Further information is available at accounted for a 15% share of total More at www.deloitte.com www.cushmanwakefield.com income of the five hundred largest Central

EMPLOYMENT OF FOREIGNERS WILL BE EASIER

From 1 January 2009 it will be easier to employ foreigners in the Czech Republic from countries outside the European Union. The respective provisions are contained in an Amendment to the Employment Act, which was approved in October 2008 by Václav Klaus, President of the Czech Republic. Employment of foreigners will be made easier by the so-called Green Card, actually a residence visa and work permit in one document. The Card will be granted for jobs which employers fail to fill within 30 days with applicants from the Czech Republic or European Union countries. The list of these positions will be publicly available. Only foreigners coming from countries that will be on a list drawn up by the Ministry of the Interior will be eligible for this employment. Applicants will have to apply for the Cards at the Czech diplomatic missions in their own countries. The Card will be valid for three years, and two years for unskilled jobs. Photo: Photocombo

| 10 CZECH BUSINESS AND TRADE

Investment in the Czech Economy

Investment is considered the INFLUENCE OF included trade, accommodation and most efficient factor of future INVESTMENT ON CZECH catering services, and transport, adding GDP GROWTH a total 14 p.p. to Czech economic growth growth due to the multiplication While in 2001-2007 the gross domestic between 2001 and 2007. Banking and effect it brings. Between 2001 product grew by 36.7% in real terms, business services contributed roughly 14% and 2007, investment accounted investment (defined as gross fixed capital (5 p.p.) to the increase of gross added value. for approximately 25% of the formation) accounted for 9.5 percentage If we take a closer look at the supply side points of this growth (after inventory of the economy and the contributions of Czech Republic’s GDP increase. changes were reflected, the increase was different sectors to its growth at present, it is The greatest increases occurred 12.9 percentage points). Household possible to say there was a clear dominance in the first years of the current consumption added 15.8 percentage points of industry in the second quarter of 2008, to real GDP growth in 2001-2007. With its which accounted for 4.6% (3.3 p.p.) of year- decade, when approximately nearly 30% annual share of investment in on-year growth of gross added value. Trade, 75% of the GDP increase was GDP creation, the Czech Republic ranks accommodation and catering services, and accounted for by gross fixed alongside countries with the highest transport industry contributed 1.3 p.p., capital formation. In 2003 and investment rate. while the remaining branches influenced the According to the latest figures for the growth of gross added value only negligibly 2005, investment was second quarter of 2008, investment (positively or negatively) offsetting each responsible for less than one- accounted for 1 p.p. (+4.6%) of year-on- other. The manufacturing industry tenth of GDP growth, and in year GDP growth. The largest contribution contributed 3.2 percentage points to the 2006 and 2007 it contributed to towards the growth of the economy, a full 4 growth of gross added value in the second p.p., was that of foreign trade in goods and quarter of 2008 and influenced its growth approximately a quarter of GDP services. The contribution of household by more than 50%, as was the case in 2002, growth in the Czech Republic. consumption (+1.5 p.p.) was also positive, 2004, 2006, and 2007. Which sectors and segments of while inventory changes had a strong negative effect, reducing economic growth INVESTMENT IN NEW FIXED the Czech economy are most by 2.2 p.p. ASSETS active in terms of investment? Is According to the latest figures of annual it those dominated by foreign SECTOR CONTRIBUTION national accounts (in current prices), in 2006 capital? In what way do they TO GDP companies invested EUR 16.8 billion in the The contribution of individual sectors to the Czech Republic, thus accounting for 59% of influence the growth of the country’s economic growth can be expressed the country’s total investment volume of Czech economy? as their percentage share in the growth of EUR 28.5 billion. Companies invested gross added value. From this point of view, especially in new tangible fixed assets (61%, in 2001-2007 the manufacturing industry in comparison with 65% in 1995), while accounted for practically a half (50.9%) of investment in used tangible fixed assets the increase, adding 19.5 percentage points amounted to 20% (in comparison with 43% (+37.5%) in comparison with the year 2000. in 1995). Households were responsible for Industry as a whole added +17.3 p.p. Other the largest acquisition of used tangible fixed sectors of industry, with the exclusion of assets in 2006 (73% of the total volume of manufacturers (i.e. primarily the mining used assets acquired in the Czech Republic). industry), played a negative role in terms of This was due to the mass privatisation of the gross added value increase – i.e. they apartments and apartment trading in reduced its growth. Other driving forces general, whereby households triggered a boom on the real estate market, which culminated in 2007. It is only logical that companies account for the highest share of Graph 1: Investment in the Czech economy (gross fixed capital formation, y/y in current investment in machinery (85%), with the prices, in %) exception of transport equipment. In 2006, 45% Entire sector companies accounted for 74.5% of total 35% Share of the manufacturing industry acquisition of transport means. 25% INVESTMENT OF COMPANIES

15% UNDER FOREIGN CONTROL While in 1995 companies under foreign 5% control accounted for 11% of total investment (gross fixed capital formation) in -5%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 the company sector in the Czech Republic, -15% in 2006 their share rose to 41.4%. This increase clearly reflects the volume of -25% foreign direct investment, which was Source: Czech Statistical Office, own calculations relatively low in the mid-1990s, and only

11 | INVESTMENT

grew stronger in the late 1990s. Owing Graph 2: Reinvested profit and dividends of foreign direct investors in the Czech Republic mainly to the bulk sale of state-owned (in EUR billion) shares in large Czech companies at the beginning of the new decade, the Czech 140 000 Dividends Republic became the country with the 120 000 Reinvested profit highest per capita influx of foreign direct 100 000 investment in the world (with impacts on the appreciation of the exchange rate of the 80 000 Czech crown in relation to the main foreign 60 000 currencies). 40 000

APPEAL OF INVESTMENT IN 20 000

MACHINERY… 0 In 2006, the volume of investment by companies under foreign control in 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 machinery and equipment (with the Source: Czech National Bank exception of transport equipment) equalled activity measured as a share of invested between 1995 and 2006 (EUR 1.4 billion) or nearly half of that spent by the entire Czech volume in total volume of investment in in electricity, water and gas production and company sector. Companies under foreign different years has changed considerably. distribution (EUR 1.4 billion), which occupy control spent EUR 3.5 billion of the total EUR Although comparisons of the final years of second and third place, respectively, in 7 billion invested by the entire company the 1995-2006 period have their pitfalls in average annual investment volumes. sector in machinery and equipment (with that they are influenced only by the value of the exception of transport equipment, investment in that particular year, interesting REINVESTED PROFIT where the ratio was EUR 0.8 billion as facts can be revealed from the shares. In Profit reinvested by foreign direct investors in opposed to EUR 3.2 billion). 1995, economic sectors with the highest the Czech economy is included in another In a long-term comparison, these ratios share in total volume of investment in the category of indicators, other than were far smaller in the mid-1990s: in 1995 economy were the utilities sector (electricity, investment in fixed assets. Graph 2 shows companies under foreign control purchased gas manufacture, and distribution) with the net profits of companies divided in this machinery and equipment (with the a share of 11.3%, the real estate sector way into repatriated profit in the form of exception of transport equipment) worth with a share of 9.8% and the public dividends and profit retained in the Czech EUR 0.7 billion, which amounted to just administration, defence and social security Republic. Beginning in 1998, when the 14% of the total amount invested in these sector with a share of 6.6%. Czech National Bank began to monitor the assets by the entire company sector. In the 2006 saw a differentiation of these amount of reinvested profit, reinvestment case of transport equipment, the share was shares. Investment in electricity and gas has been showing significant growth, 10.8%. production and distribution amounted to especially up until 2002, when it reached 4.2% of total investment, ranking the sector EUR 2.3 billion. The well-known "lifecycle" … AND THE CZECH in 5th place among the branches in that of direct investment suggests that after the ECONOMIC BOOM year. The highest investment was in the real volume of reinvested profit roughly equalises The considerably high – approximately estate sector (16.5% of all investment in the with the volume of paid-out dividends, fourfold – growth of the share of foreign economy), supporting and auxiliary a third phase should follow where profits investors in machinery investment in the transport activities, and activities of travel repatriated to foreign investors’ countries Czech Republic must be put into context agencies (10%) and in wholesale (5.2%). predominate. However, the year 2007 with massive investment imports in 2000- The automotive industry is a long-standing presented a different picture, when the 2002. Direct foreign investors used imported leader of the Czech economy. While in 1995 Czech Republic displayed by far the highest machinery in green field production it ranked 17th with a 2.1% share in total volume of reinvested profit of EUR 4.7 operations or as equipment for their existing investment in the Czech Republic, in 2006 it billion. In comparison with the year 2000, facilities. At that time, investment imports occupied 6th place with a share of 3.3%. reinvestment doubled and was up 50% had a considerably negative impact on the against 2006. This fact and long-term Czech Republic’s balance of trade (trade LONG-TERM AVERAGES comparisons are an expression of the deficits were tremendous). However, their Average values in absolute terms (current confidence of foreign direct investors in the beneficial effect appeared relatively soon, prices) reveal a more accurate view of the Czech economy. when they were transformed into export strength of investment in different sectors. volumes. Therefore it is possible to conclude According to these figures, the average sum that the success of the Czech economy, i.e. invested in real estate activities – thanks Drahomíra Dubská the 2005-2007 boom, was to a large extent especially to development projects in the Analyst based on machinery investments made strong years of 2002-2006 – amounted to Economic and Statistical Analyses during the "import-boom" period. EUR 3.5 billion per annum. Starting with Department, Czech Statistical Office 2002, investment exceeded CZK 100 billion (e-mail: [email protected]) SECTORS – INVESTMENT (EUR 3.6 billion) each year, and even EUR 5.4 ACTIVITY billion in 2006. This was nearly 2.5 fold more Note: The average 2007 CZK/EUR exchange In the course of time, the position of than the average annual investment in rate was used for reference conversions of individual sectors in terms of investment supporting and auxiliary transport activities CZK into EUR.

| 12 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.

Czech Glass Celebrates Success

The František Halama family Following a catalogue presentation room in Moscow, featuring business has, despite many by CzechTrade at the INDEX fair in a comprehensive collection. Dubai held in November 2007, the The František Halama Company was difficulties, reclaimed its position company received specific data on founded in 1932 and over the years the at the forefront of the Czech potential business partners. On the basis of company fought many battles to survive. glass industry. The company this information, the first consignment of The most difficult period the company goods was carried out. The first endured, but overcame, was the owners have managed to consignment worth tens of thousands of nationalisation of businesses under penetrate markets worldwide. In USD was a major achievement. It attracted communism. The company’s success is 2008 František Halama acquired the interest of traders on a market that founded on the principle of strictly contracts for the Russian and concentrates most leading manufacturers maintaining originality throughout all of luxury goods and which is, as a result, stages of production. Another matter-of- Moroccan markets. Entry into the a highly competitive business environment. course principle is complexity of artistic Arabian market is also Among other things, successful design as well as meticulous refining. The considered a success. negotiations were established with company occupies a special position in the a number of major companies from the glass industry - its products are impossible Gulf countries, namely Kuwait, Oman, to imitate owing to production process Bahrain, Saudi Arabia, and Iran. Director of secrets handed down to the current CzechTrade Dubai, Jiří owners by their predecessors. Zavadil, was a great help Ninety per cent of the company’s to the company in products are exported abroad. Non- significantly contributing European Union exports go to Asia, Africa, to achieving major and North America. Major Asian partners results in this territory. include China and Japan and in Africa it is A specialised Czech glass South Africa. A large potential for exports store was opened at the can be seen in Russia. Traditional business beginning of July 2008 partners include dealers in the United in the Moroccan city of States. Customers of František Halama Rabat. František Halama include the Chinese Minister of Trade and goods occupy approx. the Jordanian princess. 25% of the store’s sales area. Mid-2008 the firm

opened, in cooperation Halama company archives More information at with their Russian www.halama-glass.cz "Mirror" set of liqueur glasses with Art Nouveau ornaments designed representative, a display Photo: in 1944.

Expansion of SolarWinds Brno Development Centre

The Czech Republic is an SolarWinds is a global developer of Another example of investment in IT is attractive place for investment programmes for computer network IBM, which moved its European head administration. Owing to its creation office from Vienna to Prague. Top-ranking by IT companies. This is of new highly specialised jobs and its specialists, excellent infrastructure, confirmed by SolarWinds IT investment in the training of new employees government support and primarily a long company, which expanded its in the Czech Republic, it placed third in the history of remarkable achievements by Investor of the Year 2007 competition in the Czech IBM employees were among the Brno development centre in "Most Important Investor of the Year – main reasons that inspired IBM to take this August 2008. Strategic Services" category. "We have been decision. Companies with development tremendously pleased with the calibre of centres in the Czech Republic include, for talent and the enthusiasm we have example, Red Hat, Sun Microsystems, eBay, encountered here in Brno," said Doug Skype, and Microsoft. Hibberd, Vice President for Product Development, SolarWinds. "The employees of this office will play a critical role in the More at www.solarwinds.com future success of the company," he added.

13 | CZECH TOP

Near East Opens Up to Czech Industry

Czech Mining Technology (CZMT) PRESENTATION OF THE will have to withstand storms and will supply technology for an PROJECT earthquakes and its pillars will be grounded in the seabed, which is up to ironworks and a cement factory The contract is part of the Al Noor project, which involves the building of new towns 330 m below sea level in some places. As in Yemen and Djibouti, on the shores of the Bab al-Mandab straits part of the project, CZMT will also work as respectively, for approximately between Yemen and Djibouti, with coordinator for Czech and European EUR 700 million. It is a bridge to link the two sides across companies. "Czech companies can take CZMT’s largest order so far. the straits. On the Yemeni side, the advantage of their participation in the Al land earmarked for the new town Noor project by diversifying their exports at covers an area of a time when economic growth in the approximately 1500 European Union and the United States is sq. km. Its Djibouti slowing down. Czech industry is already counterpart will strong on EU and East European markets. occupy another 1000 Now we are re-opening the markets of the sq. km. A unique Near East, where we were successful in the technical feature of latter half of the 20th century," Petr the project is Zeman, co-owner of CZMT, pointed out. a cable-stayed bridge: with its 28.5 ABOUT CZMT km, it will be the CZMT was founded in 1999 by longest bridge of its representatives of Czech mining kind in the world. It technology manufacturers to represent will be the first them on foreign markets. Besides mining bridge across the and raw material processing equipment, Red Sea and will CZMT is also a supplier of technologies carry a six-lane for other branches of industry (heavy motorway and engineering, petrochemical industry, a railway. The bridge power engineering). ČTK Representatives of CZMT, Václav Světlík and Petr Zeman, and Sheik Bandar

Tarik bin Ladin from Middle East Development signing a contract worth Photo: EUR 700 million.

Good Prospects for Filtration Technology

Water is increasingly becoming AQUEL BOHEMIA to eliminate all undesirable substances in a strategic raw material. Its Aquel Bohemia is a dynamically the water. developing company founded in the Czech quality directly influences human Republic at the beginning of the year 2000 ACHIEVEMENTS OF AQUEL health. Natural water sources are and inspired by the idea to provide people BOHEMIA diminishing and sufficient supply with top-quality water filtration Aquel Bohemia’s sales figures and its rapid of good-quality drinking water is technology and thus relieve them of the expansion to foreign markets serve as need to buy packed water. Aquel Bohemia evidence of the high quality of its filters. becoming a serious global focuses mainly on filtration technology. Since its founding in the year 2000, the problem. One of the solutions is The technology in use by the company was company has entered the markets of filtration technology, which developed primarily for the US army and Slovakia, Hungary, and Russia. In NASA. It is based on the repeated recycling September 2008 it opened a new branch removes undesirable substances of raw water into drinking water. This in the Ukraine. However, its expansion from impotable water, turning it technology can be used to filter both does not end here. Aquel is planning to into drinking water. saltwater and fresh water, as well as urine enter the market of Romania and other for instance. At present, these filters are markets in Eastern and South-Eastern used primarily for the desalination of Europe. Aquel Bohemia now has more water, turning it into drinking water, or for than 40 000 business partners and medical purposes. Unlike similar products, customers. which, as a rule, remove only certain elements by filtration, Aquel filters are able More at www.aquel.eu

| 14 SERVICES

Security Services in the Czech Republic

The need for protection from LEGAL FRAMEWORK FOR ways in which an employee may acquire danger and the logically related DOING BUSINESS IN necessary qualifications. An employee SECURITY SERVICES need not take only the traditional route – need to signal danger have This year the Chamber of Deputies of the by means of a formal school education. accompanied mankind since Parliament of the Czech Republic and Qualifications may now also be acquired ancient times. The threat of subsequently the Senate passed the new through lifelong learning programmes danger comes from the natural Police Act. In addition, due to the and/or through proficiency resulting from modification of other laws, an amendment work experience. The key issue is to satisfy elements in the form of various was also made to the Trade Licensing Act. the requirements of the system of natural catastrophes. It is also This brings important changes to doing acknowledgment and especially the related to the development of business in security services. The new relevant standards characteristic of the amendment defines two licensed trades: profession. This facilitates a flexible civilisation, to the large the protection of property and persons and response to the needs of the labour concentration of people on small the services of private detectives. The market. Another advantage of the system or delimited areas and appears importance of this rectification lies in is that it guarantees employees who pass in the form of those who particular in its legal definition of licensed an exam in accordance with the NSQ (the trades and in that it defines clear rules and system that is to be a follow-up to the NSP encroach upon the fundamental terms for service operators. The proficiency in future; it is being prepared within rights of others in their pursuit and integrity of businessmen and their a national project of the Ministry of of money or other values. Both employees has become equally important. Education) that their acquired qualification material and immaterial damage, The amendment requires new applicants is in demand on the labour market. for licenses to demonstrate their integrity loss and other unpleasant by means of a declaration of honour. CHANGES IN THE consequences exceed multiple- CONDITIONS OF DOING fold the money necessary to EDUCATION AND BUSINESS IN SECURITY PROFESSIONALISATION SERVICES invest at the beginning as The amendment clearly makes room for Notable in this context is the new Act on a precautionary measure. the professionalisation of those employed the Police of the Czech Republic and the Security today is influenced by in the security systems and security services related law which amends certain acts in the rapid development of new sector in the Czech Republic. This comes connection with the adoption of the Police hand in hand with the preparation of Act (274/2008 Coll.). The change in the security technologies. a system of professional education. conditions of entrepreneurship concerns Society endeavours to prevent Recently, Grémium Alarm – the Association trades licensed for providing technical individual threats and to of Technical Security Services has been services for the protection of property and involved in the implementation of a public persons, work of detectives as well as eliminate criminal offences in so contract within an extensive national providers of services for the protection of far as possible. We are project of the Ministry of Labour and Social property and persons. In the latter two, the constantly searching for new and Affairs, which is related to the entire changed requirements also concern the more efficient means of doing system and corresponds to the lifelong professional qualifications of both learning strategy. (This concerns the responsible persons and ordinary security so. In its entirety, the security implementation of Act No. 179/2006 Coll., staff. The application of Act No. 179/2006 technology market today on the verification and acknowledgment Coll. for certification of the qualifications comprises a wide array of of results of further education). As a part of several tens of thousands of people companies: those that focus on of this project, a register of available job working in security services can be vacancies – National System of Professions considered a landmark in proving the security technology, on the (NSP) - will be established. This database qualifications of both employees and distribution of security will serve the labour market – both entrepreneurs. Clients can rightly expect components, on the transport of employers and employees - as a source of an improvement in the level of all security information on available current services. valuables, physical security, professions. As a follow-up to the NSP, operational commercial security, a National System of Qualifications (NSQ) CZECH TECHNICAL education in the branch, is being prepared in a similar manner, and STANDARDS guidance and consultancy. is to contain requirements for the Another security instrument is the individual qualifications and evaluation implementation of technical standards into standards with procedures of certification practice. Before 1990, the state of the listed qualifications. regulations in force at that time in Czechoslovakia were binding. Today they THE IMPORTANCE OF are divided into harmonised and non- LIFELONG LEARNING AND harmonised regulations. Only harmonised WORK EXPERIENCE regulations are binding. Other regulations, The basis for the acknowledgment of although not binding, form the basis for qualifications has been an expansion of the technically plausible solutions. And this is

| 16 CZECH BUSINESS AND TRADE

where we come to another change introduced this year, which is in itself a step in the right direction: the introduction of electronic access to technical standards, a reduction in the price of standards and an increase in their clarity. The introduction of electronic access and distribution of standards will involve the participation of professional associations which are expected to found so-called Centres of Technical Standardisation. At present, technical standards are increasingly used as a means of support for the implementation of legal provisions while the matching principle is applied. Consequently, the uttermost efforts are being made to launch the operation of these centres and to open access to technical standards under the most favourable conditions.

SELECTING A SECURITY AGENCY Since the beginning of the nineties, the demand in the Czech Republic for security devices has increased enormously. A problem has logically arisen: sophisticated electronic security systems in particular are often supplied and fitted by companies and individuals who lack the necessary prerequisites for this. This state TRADE FAIRS OF EUROPEAN electronic fire alarms, fixed fire of affairs persists. Our basic advice to the STANDARD extinguishers, salvage technology, fire- customer is to check first whether the Two large international trade fairs fighting technology, anti flood barriers, company fitting a security device is in dominate the field of security systems, and so on. The sixteenth year of the trade possession of a licence for the installation services and technology in the Czech fair took place this year on 13-16 May of security technology, which it is obliged Republic. These are the Pragoalarm / 2008 at the Brno Exhibition Centre. This to possess by law. The supplier must be Pragosec Praha and Pyros / Iset Brno. These year saw the participation of 253 able to provide servicing - one of the main trade fairs have a two-year cycle. Although exhibitors, 12 companies, and 26 000 factors for the selection of a security at first sight they appear to be of identical visitors. device. The length of the company’s nature, this is in fact not so. Since the very beginning, Grémium existence and its stability on the market are Pragoalarm / Pragosec focuses Alarm – the Association of Technical thus another important factor. The quality predominantly on alarm systems such as Security Services has been the professional of a company is reflected to a large degree electronic security alarms, camera systems, sponsor of both trade fairs as well as the by the type of certification it possesses, municipal camera surveillance systems, co-organiser of the accompanying whether this is a certificate of the alarm and transmission communications programme. Both trade fairs take place inspection body of Grémium Alarm – the systems, storage containers, mechanical under the auspices of the Ministry of the Association of Technical Security Services security appliances, access control systems Interior, the Police Presidium, and the which certifies assembly quality, proof of and so on. The next Pragoalarm / Pragosec General Directorate of the Fire Rescue quality management, or a permit of the trade fair will take place on 24-26 February Service. National Security Authority for work with 2009 at the Prague Exhibition Grounds in These two trade fairs are the largest classified documents. We also encounter Holešovice, now a traditional venue for display of the security industry in the new cases where the general investment this trade fair. It is the most important European Union member countries in any supplier – most often a construction event of this type to take place in 2009 in given year. company – earmarks a small sum for the the Czech Republic. When it last took sub-delivery of a security device. This sum place in 2007 on a net exhibition area of does not fully correspond to the 2 212 sq. m, more than 113 exhibitors requirement of the investor for quality of took part and a total 199 companies were technology. This then leads to a situation represented at the event. where credible security companies refuse In contrast, the Pyros / Iset trade fair Grémium Alarm – the Association to carry out such construction because, for focuses on fire prevention. Pyros / Iset is Photocombo economical reasons, they would be forced a display of security technology and of Technical Security Services to go below their usual standard of quality. especially fire prevention devices, www.gremiumalarm.cz Photo:

17 | REGION

NUTS 3 – South Moravia Region

The South Moravia Region is GERMANY one with a great economic POLAND Blansko potential. Its gross domestic product accounts for one-tenth Brno-City Vy‰kov of the Czech Republic’s national Brno-Country GDP and its per capita gross Hodonín Znojmo domestic product in terms of Bfieclav purchasing power parity SLOVAKIA amounts to 72% of the EU AUSTRIA average. The heart of the Region and a traditional centre GEOGRAPHICAL POSITION, EUR 7.5 billion margin, which is 25.8% of international trade and TERRITORIAL DIVISION, AND more than in the previous year. services is the city of Brno. POPULATION Among the sectors, the highest South Moravia’s conditions for From the geographical point of view, the increase in revenues was shown by Region has a relatively advantageous enterprises concerned with the the development of science and position. This ensues from its location on manufacture of electrical and optical research are exceptionally the historical junction between the south devices, whose revenues grew by 80.7%, good. Last year, with the and the north of Europe. Within the followed by enterprises making other assistance of CzechInvest European Union, its neighbours are non-metallic mineral products, where Austria and Slovakia. The South Moravia revenues were up by 69.0%. Agency, Brno attracted 15 new Region, together with the Vysočina The highest share (53.6%) of the investors, ten of whom are Region, forms a territorial unit known as Region’s total exports in 2007 was planning to set up development NUTS 2 - South-east. accounted for by the export of machines or service centres in the city. In With its surface of 7 196 sq. km and and transport equipment, followed by the a population of 1 142 013, it ranks fourth export of semi-finished products and 2007, some 40 companies in size among the Czech Republic’s materials (21.1%). In 2007, the South invested in the Region, where regions. Moravia Region had a 7% share of the they will spend an estimated The South Moravia Region is defined Czech Republic’s total exports and ranked EUR 500 million on their by the districts (according to the EU single 5th among the country’s 14 regions. hierarchical classification by local projects in the next few years. administrative units LAU 1) of Blansko, THE MANUFACTURING The future enterprises will Brno-City, Brno-Country, Břeclav, INDUSTRY DOMINATES employ some 3 900 people. Hodonín, Vyškov, and Znojmo and is For many years, the structure of industry in divided into 21 administrative districts the Region was characterised by the with enlarged competence comprising dominance of mechanical and electrical 673 communities, 49 of which are towns. engineering and electronics, with centres in Brno, the Region’s capital, is Moravia’s Brno and Blansko. Currently, the dominant largest city and the second largest city in position in the Region’s economy is held by the Czech Republic. One-third of the the manufacturing industry, which Region’s population live in Brno, which accounted for 24.1% of the Region’s gross unequivocally surpasses all other cities of added value, with agriculture and other the Region in terms of economic traditional sectors, especially in the importance, and its significance goes far Region’s southern areas, accounting for beyond the Region’s boundaries. a mere 3%. Construction, a developing (www.brno.cz). sector in the Region, had a 7.8-per cent share and trade, and the repair of ECONOMIC consumer goods a share of 14.3%, with CHARACTERISTICS commercial services accounting for 15.3%. Altogether 275 industrial enterprises with Of the total number of 269 366 Krajský úřad Jihomoravského kraje over 100 employees were based in the registered economically active entities, (Regional Office of the South Moravia South Moravia Region in 2007. This figure 13.8% operated in industry, 11.5% in Region) places the South Moravia Region at the construction, while 25.7% were involved Žerotínovo nám. 3/5 top of all the country’s regions. Nearly in trading and the repair of motor 601 82 Brno, Czech Republic 95% of the enterprises operated in the vehicles, and 21% in the real estate phone: +420 541 651 111 manufacturing industry. business. Only 6.3% of economic entities fax: +420 541 651 209 In 2007, the revenues of industrial operated in agriculture and forestry. In e-mail: [email protected] enterprises derived from the sale of their spite of this, farming in the Region is www.kr-jihomoravsky.cz own products and services exceeded the a highly productive economic activity.

| 18 CZECH BUSINESS AND TRADE

AGRICULTURE The intensifying linkage of those A favourable feature is the Very favourable conditions for intensive regions creates prerequisites for the Region’s adequate network of pre-school farming exist in the southern parts of the establishment of regional facilities and schools. The aim of the Region. manufacturing networks. Good co- secondary-level and apprentice training Farmland accounts for more than operation exists mainly in the area of school system is to link the supply of 60% of the Region’s total area, 83% of metalworking and woodworking, secondary-school graduates with the which is arable land. The highest supplies for the car industry, and demand of the labour market. Institutions proportions of arable land are to be environmental facilities. Increasingly of higher learning add to the high found in the Districts of Znojmo and noteworthy is the co-operation in standard of education in the Region. Brno-Country. The main crops in the farming with the associated agro- 11.7% of university students in the Czech Region are cereals, rape, and sugar beet. industry and food industry sectors. Republic study at the Region’s universities. An important institute is the Military Academy with departments in Brno and Vyškov, which have the use of BRIEF CHARACTERISTICS OF THE REGION large training grounds and a modern NUTS Area (sq. km) Population Municipalities Population density infrastructure (www.unob.cz). (persons/sq. km) LAU 1 – Blansko 863 105 885 116 123 CULTURE LAU 1 – Brno-City 230 368 864 1 1 604 Brno is an important cultural centre of the LAU 1 – Brno-Country 1 499 196 411 187 131 entire South Moravia Region, with 14 LAU 1 – Břeclav 1 038 113 214 63 109 theatres, 6 cinemas, 17 museums, and 41 LAU 1 – Hodonín 1 099 157 110 82 143 art galleries. Besides the Museum of the LAU 1 – Vyškov 876 87 640 80 100 City of Brno, which is housed in Špilberk LAU 1 – Znojmo 1 590 112 889 144 71 NUTS 3 – South Moravia Region 7 196 1 142 013 673 159 Castle, there is the Moravia Land Museum, NUTS 1 – Czech Republic 78 867 1 0381 130 6 249 132 the Technical Museum, the Museum of Romani Culture, the Arts and Crafts Source: Czech Statistical Office (as of 31 December 2007) Museum, and other museums. The centre NUTS = territorial unit according to the unified classification of the EU, LAU 1 = district of the Region’s musical life is Besední dům, the seat of the Brno State Philharmonic Orchestra, with the most beautiful neo- The extremely good natural conditions TRANSPORT Renaissance hall in Brno. Brno’s new make it possible for farmers to carry on As regards transport, the South Moravia Musical Theatre, part of the Brno City the long tradition of specialised farming Region plays an important transit role. Theatre, attracts audiences from far and production linked to the The skeleton of the transport system is wide, not only from the Region itself. Region’s specific features, mainly vine- formed by the D-1 and D-2 motorways growing and fruit and vegetable and the R-43 and R-52 fast highways. The TOURISM growing. 90% of the country’s vineyards city of Brno is an important transport From the international tourism point of are to be found in the Region. Vine- junction for road, motorway, and railway view, the Region boasts exquisite growing is especially flourishing in the transport and the South Moravia landscape and historical areas, such as Břeclav District, which accounts for 48% Integrated Transport System. The Brno- the Lednice-Valtice complex, one of the of the vine-growing surface in the Czech Tuřany civilian airport can receive all types Czech Republic’s monuments entered in Republic, followed by the districts of of aircraft all the year round (www. the UNESCO world heritage list Hodonín, Znojmo, and partly also Brno- airport-brno.cz). Two main railway (www.zamky-hrady.cz), the Moravia Karst Country. In animal production, the corridors connecting EU states pass and the Austerlitz battlefield South Moravia Region holds a leading through the Region, and Brno is (www.slapanice.cz). Brno, with its cultural position in pig rearing and poultry a member of the Association of European monuments, holds a similar position. production. Cities interested in the construction of A natural attraction is the Dyje Valley a fast railway. National Park (www.nppodyji.cz). Visitors MICRO-REGIONS have the opportunity of attending various To meet the requirements and interests of EDUCATION cultural events, which fact is very the Region’s communities, co-operation is The South Moravia Region has extremely important for the development of continuing in the micro-regions, voluntary good conditions for the development of tourism. From this point of view, an groupings of districts, which help to realise science and research thanks to the large attraction of the Region is wine tourism the Region’s development programmes. number of university students and the highlighted by the Region’s folk culture In recent years, cross-border co- very good rating of its universities. This and its folklore traditions. Visitors to operation has been developing in the fact has been confirmed by companies South Moravia can explore the framework of the Pomoraví Euroregion, (e.g. Bio Vendor, Honeywell, FEI, IMI countryside by bike, using the cycle trails which associates the regions of Norgren, MMM Group, Pliva, Tescan, in the Region, even in the international Weinviertel (Lower Austria), South Grisoft, NESS Technologies, Siemens) context (Moravia-Silesian long-distance Moravia, and West Slovakia (www. which have set up their Research and cycle trail, Greenways, the Amber Trail, euregio-weinviertel.org). Development centres in Brno. the Brno-Vienna cycle trail).

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South Moravia Region – Crossroads of Europe

One links the north-west of Europe The airport is the motivating force of all with its south-eastern regions, efforts to attract investments and leading from Scandinavia to promote the tourist traffic in Brno and the Istanbul. The other connects the Baltic entire region, as we know that a well- Republics with the south of Europe. functioning airport is an essential In addition, in future the South prerequisite for foreign investors seeking Moravia metropolis, Brno, will become the best location for their investments. a junction for the high-speed railway From this point of view, I am pleased to network. An important role is played by say that Brno has strengthened its the Brno-Tuřany International Airport position as the second most intensively operating regular flights to Prague, used airport in the Czech Republic. London, and Moscow. In sum, it can be The development of the South Moravia said that the South Moravia Region is one Region takes into account its specific of the most important transport junctions conditions. It is the only one in the Czech in the framework of both the Czech Republic which is a genuine vine-growing Republic and Europe. region. That is why we attach great The Region’s closest neighbour is the importance to this fact. From experience, The Region has a favourable Slovak Republic, with which the Czech we know that South Moravia vine- Republic is linked by common history, growers can produce wines of a quality geographical position, in the traditions, customs, and mentality. allowing them to compete with popular framework of both the Czech Therefore, from the beginning of the wines of other world regions. We realise Republic and Central Europe. establishment of the South Moravia the importance of foreign investments for Brno, Moravia’s largest city, is Region within its current boundaries, our the development of our region, and we emphasis has been on the establishment therefore publicise the opportunities a notable Central European trade of the closest possible contacts with existing in this area at trade fairs and fair city and the seat of Slovakia’s Trnava and Bratislava self- during trade missions. On the domestic important national, mainly governing regions. Naturally, we also co- level, we co-operate closely with judicial, institutions.Two operate with other European regions. We Chambers of Commerce and have a partnership with the Lower Austria organisations catering for different areas transport corridors pass through federal state, with North Italy’s Bergamo, of business (guilds, associations of the Region. Serbia’s Šumadija district and the Dutch businessmen, etc.). On the international province of Utrecht. We co-operate with level, we organise trade missions the the Lodz voivodeship, and our relations purpose of which is to establish business with Russian regions are also developing contacts and co-operation between very dynamically. regions. We also support meetings of Our contacts, however, are not limited businessmen during the visits of foreign to Europe. In the past few years, round- businessmen arriving in South Moravia, table conferences have been organised in especially in connection with the the Region’s capital, bringing together participation of foreign firms in trade fairs local trading companies with taking place in the Brno exhibition representatives of ASEAN states, with ground. representatives of countries associated The Czech Republic’s joining the in the New Partnership of Africa’s European Union has opened up new Development (NEPAD), and possibilities of co-operation with other representatives of the South American European states and has brought about association MERCOSUR and the Andes new opportunities and prospects for our Association. The presentation by the region. I hope we shall make good use of South Moravia Region at the EXPO 2005 them. World Exhibition in Japan’s Aichi was also a success. We continue to support the construction of a network of information sites for businessmen. One of the objectives of the South Moravia Region is promoting the development of the transport infrastructure aimed at making business localities easily available to investors and future employees. The most important project we support is the development of Stanislav Juránek the international airport in Brno-Tuřany. Governor of the South Moravia Region

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After-care – Programme for Foreign Investors

The Regional Development It is important to communicate with a broader scale. It widened not only the those who have settled in the Region subjects discussed, but also the number of Agency of South Moravia (RDA in the past years, to ensure their closer firms included in the research. Also SM, RRA JM in Czech) is taking interaction with the local economy and open addressed besides foreign investors were advantage of its many years‘ communication with the local government. Czech companies which are important experience in providing services The purpose is to strengthen confidence employers in the Region or have a great in the Region as a place offering favourable prospect of further development. to foreign investors coming to conditions for the further expansion of The debated themes include human the South Moravia Region and is companies, as well as to increase the volume resources (present and future requirements currently focusing its activity on of re-investment, especially in activities with for employee numbers and structure), a higher value added and in Research and education (co-operation with schools, after-care for investors. Development. requirements regarding branches of This activity is connected with Last but not least, after-care is to reduce training), transport (requirements the preparation of the Regional the risk of investors‘ departure for other concerning public transport, highways, use territories. of airport) and co-operation with the Innovation Strategy of the South In order to create a systematic after-care authorities (Foreign Police, employment Moravia Region (RIS III).The aim structure in the Region, it was necessary to offices). is no longer only to attract know the needs and problems of local So far the team has addressed companies, and thus a pilot survey was 42 companies, which together employ investors who would open new carried out on a representative sample of about 14 000 people. Most of those manufacturing plants in the foreign investors in the region in 2007. This questioned are preparing further expansion Region. pilot survey helped to provide an idea of the of their capacities to be able to create up to needs of firms and made it possible to 10 800 new jobs within five years. In most identify their key problems. cases - about 85% - these will be technical The RDA SM inspired the establishment positions, be it skilled workers in of an "After-care working group" manufacturing or management. comprised of representatives of the South The RDA SM has been providing all- Moravia Region, the City of Brno, round services to foreign investors since CzechInvest, employment offices and 2000. Over the years, it has been involved in universities. Its primary task was to set the successful implementation of many priorities for the research and subsequently investment projects, since 2003 a total of to address the problems found. 49 have been brought to successful The RDA SM is carrying out the research completion. in the form of personal discussions with representatives of the companies. In 2008 it More at: www.rrajm.cz has followed up the pilot survey, but on

Innovative Environment Developing in the South Moravia Region

Support for the founding and The ambition of the JIC is to build The projects, funded from national budget development of innovative firms an all-round infrastructure for resources and the Structural Funds of the the promotion of innovative European Union, are based on the in the Region is the objective of entrepreneurship in the South Moravia Regional Innovation Strategy of Southern the South Moravia Innovation Region and to become a leading provider Moravia (RIS) and the City of Brno Centre (Jihomoravské inovační of support to innovative start-up Strategy companies in Europe. The JIC supports New grounds are being established centrum - JIC) established by the innovative firms, science and research, and for start-up innovative firms thanks to South Moravia Region with the students with ideas. It provides them with projects of the biotechnological Statutory City of Brno, Masaryk money, consultancy, contacts and incubator, INBIT, and other premises are University, Brno University of premises. offered by the Technology Incubator II, which was inaugurated in the spring of Technology (BUT), Mendel PROJECTS AND ACTIVITIES 2008. Soon after the opening, the first University of Agriculture and TO FOSTER INNOVATION Microsoft Innovation Centre in the Forestry, and the Veterinary and The South Moravia Innovation Centre is Czech Republic settled in the TI II space. Pharmaceutical University in one of the main players in the drafting Its mission is to co-operate with the of projects promoting innovative South Moravia Innovation Centre in Brno as its members. entrepreneurship in the Czech Republic. assisting start-up ICT firms in their

21 | REGION

development by providing specialised international research centre, after the integrate biological and material sciences. consultancy and other services. International Space Station – ISS 2 and the The core will be the establishment and European Organisation for Nuclear equipment of central laboratories that will TARGETING Research (CERN), and the first international be used by teams of scientists in various BIOTECHNOLOGIES centre in the area of medical research. branches. Their collaboration will bring The JIC is also involved in other activities in Thanks to close co-operation with decisive progress, for example in the support of innovation in the Region, such leading academic institutions abroad, led research of methods of cancer treatment, as the International Clinical Research by the Mayo Clinic in the USA, it will be new materials, improvements in wireless Centre (ICRC) and the project of the easier for the Czech Republic to participate communication, etc. The research will be Central European Institute of Technology. in international research and education concentrated in four centres focused on The International Clinical Research projects, to gain experience in latest biological research, biomedical research, Centre in Brno is a strategic project of the methods of treatment and diagnosis, as health protection of animals and people, Czech Government in the area of applied well as to obtain grants from the EU and and development of advanced materials research, education, public medical care, the USA and thus gain the vitally needed and technologies. Dozens of companies and knowledge-based economy. The ICRC resources for Czech science and health will participate in the project’s activities in represents a new-generation concept of care. the creation and use of the outcomes of a clinical research and education centre, The Central European Institute of the research. Also important is co- which reflects primarily the expected needs Technology (CEITEC) is a project for operation with the largest hospitals in the of the 21st century. The concept has been a modern scientific centre of excellence in Region, and long-term collaboration in developed jointly by Czech and US experts Brno, which will significantly enhance the scientific research projects within the over a period of more than four years. The research and innovation potential of the CEITEC is also expected to be widened to main lines in the research and Czech Republic and will have a major leading foreign institutions. development will be cardiology and cardio impact on the NUTS 2 South-east Region surgery, internal medicine, neurosciences, (South Moravia and Vysočina Regions). The emergency medicine, and oncology. project is aimed at building a modern The ICRC will thus become the third scientific centre of excellence which will More at: www.jic.cz CzechTourism CzechTourism

Mahen Theatre in Brno was the first theatre with electric lighting in Europe Photo:

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Commercial Real Estate Market in South Moravia Region

The most attractive region in the OFFICE BUILDINGS with the situation in South Moravia, Czech Republic, in the eyes of The centre of the Region – Brno – is ranging around 40 EUR/sq. m. Shops in the second largest market for office space Brno’s most sought-after localities, companies and investors, is in the Czech Republic after Prague. At the Masarykova Street, Česká Street and clearly Prague.However, because end of the second quarter of 2008, Náměstí Svobody (Freedom Square) are of its high rental for office, available office space totalled about rented for 60-90 EUR/sq. m/month. In retail, and industrial space, an 210 000 sq. m, with almost 75% of terms of retail, the region has one other buildings in the highest "A Class" quality phenomenon – Freeport at the Hatě ever growing number of standard. The most important new border crossing, the first designer outlet investors are searching for complexes include the International in the Czech Republic. "Freeport has alternative localities.And this is Business Centre, the AXIS Office Park, become one of the fastest growing outlet and especially two huge office and centres in Europe, also thanks to the where the South Moravia commercial centres, the Spielberk Office opening of the border, as over a half of Region, and Brno especially, is Centre and Brno Business Park. Due to customers arrive regularly from winning the imaginary second the great acceleration of developer neighbouring Austria, where shops are place.Its growing popularity is projects in 2005 and 2006, about 25% of closed at weekends", says Martin Indra office space remains unoccupied. In from Colliers International Czech due especially to its strategic contrast to Prague, this is thus a market Republic, a retail market specialist. position in the Czech Republic as dominated by tenants and, as a result, well as Central Europe (proximity prices are about half those compared with INDUSTRIAL REAL ESTATE of the Slovak and Austrian identical standard levels in the capital city. The strategic location and excellent access Rental ranges between just 10–16 to transport routes is best reflected on the borders), excellent access to EUR/sq. m per month, including under- industrial space market. This is why transport routes, lower priced – ground parking. Despite that, further companies most often choose the region but equally qualified – labour large projects are already under to locate their distribution centres and construction or in the planning phase, for warehouses there which are able to serve force, and lower unit costs instance Vienna Point, Titanium, the Central, East and West Europe. The most overall for the lease of space Campus, the architecturally interesting AZ sought-after locality is the Brno area, and related services. Tower, or another two buildings of the although areas close to the border with Brno Business Park complex. New office Slovakia, namely the District of Břeclav, are space is expected to increase by about 80 becoming attractive, too, due to the 000 sq. m by the year 2009. The great available labour force. Up to now, the interest of developers proves that Brno dominant developer in the area was CTP will in future continue to be an ever more Invest. Recently, however, other players lucrative locality. have entered the market, such as the American developer ProLogis with Park RETAIL SPACE Břeclav and Park Brno projects, and The South Moravia Region is second in AIG/Lincoln with the D2 Logistics Park. importance after Prague also in terms of Available industrial space now totals close retail space. There are several much to 500 000 sq. m. Thanks to the high sought-after shopping galleries and malls demand which exceeds supply, rental is in the very centre of Brno. The most higher there than for example in Prague, attractive of them is Vaňkovka, a unique where competition is much tougher and complex built on the site of a former developers are more engaged in dilapidated factory. The rental rate for speculative construction. Rental rates a medium-sized retail unit (100–150 sq. range between 4.25 and 4.50 EUR/sq. m) in the complex ranges between 50–65 m/month in Brno and its vicinity, and EUR/sq. m per month, which is a price between 4–4.30 EUR/sq. m in border comparable to that of Prague shopping areas. centres. Another sought-after area is the second largest retail complex in the LAND country – Olympia Brno, where the fourth The Region is very attractive also for land stage of construction is underway at purchases, although potential investors present. Rental at Olympia is more in line must be prepared to meet the high price expectations of current owners. Few locations with good transport access are RENTAL RATES AND PRICES OF LAND IN THE SOUTH MORAVIA REGION left and thus prices reach 70–80 EUR/sq. Locality Indicative rental (EUR/sq. m/month) Price of land (EUR/sq. m) m and 5 EUR/sq. m more in Brno and its Brno 4.25–4.50* 75–85 vicinity. Within 25 km of Brno 4.25–4.50* 70–80 Simona Černá, Filip Rerko, Area at the Czech-Slovak border 4.00–4.30* 70–80 Martin Indra *) Note: Rental depends on many factors, mainly size of space, duration of lease, and quality of user. Colliers International Czech Republic

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Brno-City Brno-City District

Brno is one of the oldest industrial The Region is home to several protected BRIEF STATISTICS territories that are either natural centres in Central Europe.The Indicator District Region monuments or reserves. The Brno-City Area (in sq. km) 230 7 196 quality industrial base in the city District is located at the very centre of the and its immediate surroundings Region of South Moravia taking up 230 sq. Population 368 864 1 142 013 Inhabitants/sq. km 1 604 159 offers a wide range of km. It is flanked by the municipalities of the Brno-Country (Brno-venkov) District. The Unemployment rate (in %) 5.54 6.43 opportunities for co-operation.The Source: Czech Statistical Office City of Brno consists of 29 Districts with (as of 1st quarter 2008) developed scientific and research over 368 000 inhabitants (www.brno.cz). and development base, along with a broad educational base, make UNIVERSITY CENTRE and strategic services, making use of the Almost one-third of the inhabitants of the qualified workforce and relatively low the city the second largest City of Brno have graduated from production costs that Brno offers. The city educational centre in the Czech secondary school and one-fifth have is becoming the centre for investors Republic.It is home to 11 a university degree; over 50% of all interested in investments in technological universities and features an above- inhabitants have at least graduated from parks, development centres, shared secondary school. These values greatly services and voice service centres. Logistics average educational structure. exceed the average in the Czech Republic and administrative centres are also The Brno-City (Brno-město) and are almost identical to the capital experiencing significant development. District, the focal point of the Prague. There are 11 universities in Brno with a complete range of fields of study. DEVELOPED SERVICE Region of South Moravia, is The broad range of available education SECTOR located centrally in Europe, at the goes hand in hand with a developed The city features a highly developed service edge of the Moravian Gate, research and development base. Brno is sector. It is a place of business for through which routes connecting a strong player in the field of science, a number of financial institutions, real research, and innovation. The city supports estate agencies, and call centres. The entry the northern and southern the creation of new business incubators of foreign investors currently promotes civilisations have passed for that help to expedite the launch of new a significant development of the so-called centuries.Geographically, it is companies doing business in the area of strategic services. The city offers a broad a part of the Podunajský Region, advanced technologies. Brno builds its and quality range of opportunities for development strategy around a highly spending free time in many of its cultural with historical ties to Vienna, qualified workforce. and sports facilities. which is only 110 km away.Owing to its location on the borders of TRADITIONAL CENTRE OF CENTRE OF CZECH JUSTICE INDUSTRY AND COMMERCE The city is home to top judicial bodies: the the Českomoravská vysočina The world-renowned trade and exhibition Constitutional Court of the Czech (Czech-Moravian Highlands) and centre in Brno is host to more than 50 Republic, the Supreme Court, the Supreme the lowlands of South Moravia, it international fairs, exhibitions, and Administrative Court, the Office of the has a broad and varied natural congresses every year (more at Public Defender of Rights (Ombudsman) www.bvv.cz). Brno has a strong position in and the Supreme Public Prosecutor's environment and pleasant climatic electrical engineering and engineering Office. conditions for both residence and and specialises in high-tech business. recreation.The Svratka River Production of components for the CULTURE creates an important recreational automotive industry is one of the fields The city hosts a number of cultural and with a high growth potential. Important theatrical festivals, the most famous of dam, the Brno Water Reservoir, in foreign investor and developer companies which is the festival of fun, Brno-City in the north-western part of the city. have a presence in the high-tech industry the Centre of Europe, with its fireworks

SELECTED FIRMS Name Based in Sector Contact Statutární město Brno ZKL Brno, a.s. Brno metal-working www.zkl.cz Tescan, s.r.o. Brno electron microscopes www.tescan.cz Magistrát města Brna Královopolská , a.s. Brno steel structures www.kralovopolska.cz (Statutory City of Brno, Brno-City GiTy, a.s. Brno system integration www.gity.cz Municipality) Unis, s.r.o. Brno management of technological processes www.unis.cz Malinovského nám. 3 META Brno, a.s. Brno handicap aids www.metabrno.cz 601 67 Brno Karoseria, a.s. Brno car bodies www.aviabrno.cz Czech Republic ZPA Brno, s.r.o. Brno security systems www.zpabrno.cz phone: +420 542 171 111 Chepos, a.s. Brno engineering units www.chepos.cz fax: +420 542 173 530 Starobrno, a.s. Brno beer production www.starobrno.cz e-mail: [email protected] Bomar,s.r.o. Brno saws and cutting machines www.bomar.cz www.brno.cz VUES Brno, a.s. Brno electrical development www.vues.cz

| 24 CZECH BUSINESS AND TRADE

competition, Ignis Brunensis. Brno's St. Jacob, and the Old Town Hall are the architect Mies van der Rohe and his Villa historical downtown prides itself on many most famous. Brno is also characterised by Tugendhat, which is a part of the UNESCO monuments of which the Špilberk Fortress, its avant-garde functionalistic architecture, World Cultural Heritage. Cathedral of St. Peter and Paul, Church of represented mainly by the unique work of

BRNO'S DEVELOPMENT PROJECTS Europoint Brno (www.europointbrno.cz) The Europoint Brno project is chiefly concerned with the transport accessibility and interoperability of Brno. Its realisation includes building new passenger and storage railway stations as well as modernising the railway route through the city, including the realisation of an urban infrastructure with the aim of ensuring a quality rail connection to priority European multimodal corridors. The Europoint Brno project will also contribute to the development of the entire central part of the city: a modern district will be created with new opportunities for living, accommodation, shopping and services, relaxation and recreation and, last but no least, new employment opportunities. The first important investment in this developmental area has been the successful conversion of factory premises into the business and cultural centre, Galerie Vaňkovka.

Brno Industrial Zone – Černovice Terrace (www.brno.cz) This greenfield-type development zone of 200 ha is specialised in investments related to the processing industry, strategic services, and technology centres. Current investors in the zone include European, Japanese, and American firms, mainly representing the engineering industry. The south-eastern part of the industrial zone has seen the realisation by the CTP developer company of rental industrial buildings, where a number of other foreign companies now conduct their activities. The companies in the industrial zone in Brno currently employ 4 540 persons.

Czech Technology Park Brno (www. technologypark.cz) This is a prestigious greenfield-type development zone of 60 ha intended for light high-tech industry and strategic services, that make use of the synergy of research, development and business. The present development, of the technology park is concentrated in two zones of 10.5 ha where the Technologický Park Brno, a. s., company builds and leases production and administrative space. The most important clients include IBM Global Services Delivery Center Czech Republic, FEI Czech Republic, Siemens, Motorola, and others. The companies in the Czech Technology Park currently employ 3 500 persons.

University Campus of Masaryk University in Brno-Bohunice (www.muni.cz) The university campus comprising approx. 90 000 sq.m of useful area for tuition and research will become, after its completion, a base for the Faculty of Medicine, for the chemical and biological fields of the Faculty of Science, and for the Faculty of Sports Studies. The capacity of the grounds of the new Campus is designed for 5 000 students and for approximately 800 university lecturers, researchers, and other employees. Tuition as well as the biomedical research will be supported through the connection of the Campus with the Brno Faculty Hospital. It is also anticipated that a tight link will be established between the Campus activities and commercial developmental and innovative activities.

Ponava (www.ponava.cz) The Ponava area lies within the larger centre of Brno and is historically and ecologically associated with the Lužánky City Park. It is a traditional centre of sports and recreation. The aim of the project is to regenerate this urban area comprising of about 30 ha and convert it to a modern sports-recreational centre. Currently, a variant solution is being considered that would include a football stadium, a multifunctional structure of metropolitan character, an aquapark and other sports facilities, with space for commercial use.

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Marzotto Textile N.V. Netherlands Nová Mosilana, a.s. textile industry www.mosilana.cz Asea Brown Boveri Ltd. Switzerland ABB, s.r.o. electrical engineering www.abb.cz Honeywell USA Honeywell Controls, s.r.o. electronics www.honeywell.com Alstom N.V. Netherlands Alstom Power, s.r.o. energy systems www.alstom.cz Pöyry Oyj Finland Pöyry Environment a.s. water service buildings www.aquatis.cz Beghelli, S.p.A. Italy Elplast, a.s. industrial lamps www.beghelli.cz Munchen Medizin Mechanik GmbH Germany BMT, a.s. healthcare technology www.bmt.cz Messe Düsseldorf Germany BVV – Veletrhy Brno, a.s. organisation and realisation www.bvv.cz of exhibitions Dera Belgium N.V. Belgium Dera Food Technology CZ, s.r.o. food ingredients www.dera.cz FEI Company USA, Netherlands FEI, s.r.o. electron microscopes www.fei.cz Frencken Netherlands Netherlands Frencken Brno, s.r.o. cybernetic production systems www.frencken.cz Pliva Group Croatia Pliva Lachema, a.s. chemical production www.lachema.cz SMC Corporation Austria, Japan SMC Industrial Automation CZ, s.r.o. industrial automation www.smc.cz Cendrion Company Netherlands Vink-Plasty, s.r.o. semi-finished products from plastic www.vink.cz IBM USA IBM GS Delivery Center, s.r.o. Brno computers www.ibm.com Flextronics International Cork B.V. Netherlands Flextronics International, s.r.o. electrical engineering www.flextronics.com Infosys BPO Limited India Infosys BPO, s.r.o. network and database www.progeon.com administration CarClo Plc Great Britain CarClo Plastics-Brno, s.r.o. plastics www.carclo-plc.com LISI Automotive Former SAS France LISI AUTOMOTIVE FORM a.s. car components www.lisi-automotive.com

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Brno-Country District Brno-Country

climatic conditions, there is a rich BRIEF STATISTICS Město Ivančice agricultural tradition in the District, which Indicator District Region (Town of Ivančice) specialises in the production of cereals, Palackého nám. 6 root-crops, fruit, vegetables, and Area (in sq. km) 1 499 7 196 664 91 Ivančice grapevine. Agricultural land takes up more Population 195 644 1 142 013 Czech Republic than a half of the overall district area and Inhabitants/sq. km 130 159 phone: +420 546 419 411 it is tended by 4.8% of economically Unemployment rate (in %) 4.31 6.43 fax: +420 546 451 844 active inhabitants. Source: Czech Statistical Office (as of e-mail: [email protected] There are over 400 important cultural 1st quarter of 2008) www.muiv.cz and artistic monuments in the District. The most famous and most visited European uTišnova, the Benedictine monastery monuments include the Cistercian in Rajhrad uBrna, and the chateau in monastery, Porta coeli in Předklášteří Židlochovice (www.jizni-morava.info). The Brno-Country (Brno-venkov) District forms a ring surrounding the Brno-City District from all sides. There are 195 644 inhabitants in 187 municipalities, 13 of SELECTED FIRMS which are towns, on 1 499 sq. km. The Name Based in Sector Contact town of Brno is the natural centre of the Kovolit, a.s. Modřice metal casts www.kovolit.cz region. The Brno-venkov District Gemax, s.r.o. Javůrek industrial armatures www.interfluid.cz remained, despite structural changes in Kampos, s.r.o. Kuřim electrical cables www.kampos.cz the economy in the last decade, TOS Kuřim-OS, a.s Kuřim engineering www.tos-kurim.cz Ekotex, s.r.o. Ivančice non-woven fabrics www.ekotex.cz a primarily industrial-agricultural district. Lanatex, a.s. Ivančice textile manufacture www.lanatex.cz More than 31.6% of economically active Brněnské papírny, s.p. Předklášteří-Tišnov paper, cardboard production www.papirny-tisnov.cz inhabitants are employed in the Logis průmyslové processing industry and in energy obaly, a.s. Ivančice industrial packaging www.lpo.cz production. Owing to favourable soil and

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Blansko Blansko District

The Blansko District is located in the BRIEF STATISTICS Městský úřad Blansko northern part of the South Moravia Indicator District Region Region. Comprising 863 sq. km, it is one (Blansko Municipal Office) Area (in sq. km) 863 7196 of the smaller districts. The Náměstí Svobody 3 Population 105885 1142013 District's rugged terrain is mainly 678 24 Blansko, Czech Republic Inhabitants/sq. km 123 159 characterised by highlands. The Svitava phone/fax: +420 516 775 111 Unemployment rate (in %) 5,28 6,43 River flows through its centre. The e-mail: [email protected] Source: Czech Statistical Office (as of www.blansko.cz Blansko District is administratively 1st quarter of 2008) divided into 116 municipalities, 8 of which are towns. The District's economy is dominated by industry and the From the point of view of the tourist tourist trade. There trade, the District represents an is a tradition of attractive area for both domestic and engineering, other foreign visitors as there are countless industries include cultural monuments and natural electrical, textile, wonders. The 5-km-long band of Devon construction, and limestone, the Moravian Karst, is located stoneware. There is in the District. This protected landscape an area of 16 ha area is one of the most significant karst suitable for areas in Central Europe. Both surface investment in the and underground karst features have town of Boskovice. developed in an area of almost 100 sq. Agriculture is less km, which have made the Moravian developed, with Karst the most visited tourist location of the main products the entire District. To date, there are over being potatoes, 1000 known stalactiform caves, some of corn, sugar beet, which are open to the public maize, fodder (www.moravskykras.net). The most crops, milk, and important architectural monuments meat. include the Renaissance chateau, which The Blansko is the dominating feature of the town of District is one of the Blansko, as well as the Empire chateau in ecologically Boskovice and the chateau in Kunštát cleanest districts in and Lysice. The castle in Rájec nad the Czech Republic. Svitavou is the most spectacular This is partly due to structure of early Classicism in Moravia the large wooded (www.pruvodce.com/rajec). areas in the District. The famous Macocha Abyss in the Moravian Karst is the deepest abyss of its kind in Central Europe

SELECTED FIRMS Name Based in Sector Contact Blata, s.r.o. Blansko scooter manufacture www.blata.cz Metra Blansko, a.s. Blansko engineering www.metra.cz Steko, s.r.o. Blansko security doors and systems www.steko.cz Gumami-Print, s.r.o. Doubravice n S. printing www.gummiprint.cz Tylex Letovice, a.s. Letovice textile production www.tylex.cz Atona, s.r.o. Blansko machine-building technologies www.atona.cz ČeMeBo, s.r.o. Blansko electrical engineering www.cemebo.cz Letovické strojírny, s.r.o. Letovice engineering www.lsletovice.cz Sklárny Moravia, a.s. Úsobrno packaging glass www.sklomoravia.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Dürkopp Adler Germany Minerva Boskovice,a.s. sewing machines www.minerva-boskovice.com Temkom AG Switzerland Novibra Boskovice, s.r.o. parts for textile machines www.novibra.cz

Alps Japan Japan Alps Electric Czech, s.r.o. computer components www.alps.cz CzechTourism Celestica Canada Canada Celestica Czech Republic, s.r.o. electronics www.celestica.com P-D Group Germany P-D Refractories CZ, a.s.. heat-resistant ceramics www.mslz.cz Photo:

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Břeclav District Bfieclav

communications network both in road and BRIEF STATISTICS rail transport, which has a positive Městský úřad Břeclav Indicator District Region influence on the development of (Břeclav Municipal Office) Area (in sq. km) 1 038 7 196 Náměstí T.G.Masaryka 3 entrepreneurial activity. Population 113 214 1 142 013 690 81 Břeclav The area is an attractive tourist Inhabitants / sq. km 109 159 Czech Republic destination due to the well known Unemployment rate (%) 6.54 6.43 phone: +420 519 311 384 archaeological site at Dolní Věstonice, Source: Czech Statistical Office (as of fax: +420 519 311 238 which is famous for the discovery of the 1st quarter of 2008) e-mail: [email protected] statue of the Věstonice Venus, also due to www.breclav.org the Stolová hora (Table Mountain) observation point and due to the Nové valtice.html). The construction of this vast Mlýny system of waterworks. Another landscaped park was begun in the late unique complex in the District is the 18th century by the House of Lichtenstein The Břeclav District lies in the southern Lednice-Valtice Area, which is on the as a unique man-made tract of part of the South Moravia Region and UNESCO list of World Heritage Sites countryside, which has been known, since shares its southern border with Austria and (www.unesco-czech.cz/mesta/lednice_ the 19th century, as the Garden of Europe. in the south-east with Slovakia. The District is administratively divided into 63 municipalities, 9 of which have the status of towns. The Břeclav District has an industrial and agricultural character. Over 27% of the District’s economically active inhabitants work in industry, which is represented by the rubber and plastics, chemical, engineering, polygraphic, and food industries. Raw materials are supplied by sand and limestone reserves and, in the boundary areas of the District, reservoirs of oil and gas can be found. Due to the very favourable soil and climatic conditions, agriculture has an important tradition in the District and concentrates on the growth of cereals, root-crops and warmth- requiring vegetables, fruits, and grapevine. Agricultural land covers 68% of the total area of the District. The Region around Břeclav is linked with vine-growing, which has a long-standing tradition. The Břeclav District is significant in its connection to the international Lednice Chateau in Moravia is on the UNESCO List of World Heritage

SELECTED FIRMS Name Based in Sector Contact Agrotec Holding Hustopeče agricultural engineering www.agrotec.cz Alca Plast, s.r.o. Břeclav sanitary appliances www.alcaplast.cz Bottling, s.r.o. Mikulov automatic doors www.bottling.cz Mont Group, s.r.o. Kostice advertising items www.montgroup.cz Gumotex, a.s. Břeclav polyurethane products www.gumotex.cz Racio, s.r.o. Břeclav food industry www.racio.cz Metal Plast Produkt, s.r.o. Nový Přerov plastic mouldings www.mpp.breclavsko.com Tranza, a.s. Břeclav industrial conveyors www.tranza.cz Vinium, a.s. Velké Pavlovice wine manufacture www.vinium.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Medipharm AB Sweden Medipharm CZ, s.r.o. biotechnological probiotics www.medipharm.cz Westfalia M.V. GmbH Germany Westfalia Metal, s.r.o. metal constructions, containers www.westfalia-group.com Catis Montagetechnik GmbH Austria Catis, s.r.o. ski fastenings www.catis.at United Technologies Holding SA USA Otis, a.s. elevators, moving walkways www.otis.com QUAPROTEK IPS GmbH Germany Quaprotek Manufacturing k.s. metal-working www.quaprotek.com Photo: CzechTourism Photo: CzechTourism

29 | CZECH BUSINESS AND TRADE

Hodonín District Hodonín

The District is divided into 82 BRIEF STATISTICS municipalities, 8 of which have the status Město Hodonín Indicator District Region of towns. (Town of Hodonín) Area (in sq. km) 1 099 7 196 Masarykovo nám. 1 The Hodnín area (www.hodonin.com) Population 157 110 1 142 013 695 35 Hodonín is, together with the neighbouring Břeclav Inhabitants / sq. km 143 159 Czech Republic area, the most significant producing area. Unemployment rate (%) 10.08 6.43 phone: +420 518 316 111 Due to favourable natural conditions, Source: Czech Statistical Office (as of e-mail: [email protected] the long-term development of the District 1st quarter of 2008) www.hodonin.eu has mainly concentrated on agriculture. Land used for agriculture covers 63% of the surface of the District. Vine growing, production of maize, cereals, fruit, and The District lies in the south-eastern part of vegetables are well developed in the the South Moravia Region. Its natural District. borders are formed by the Ždánice Forest, Industry is concentrated in the south Chřiby Mountains and the White and south-east of the District – Carpathians, which were promoted to engineering, power and textile industries. a protected landscape area (www. In the District, deposits of crude-oil and bilekarpaty.cz). Its southern border is brick clays can be found in the shared with Slovakia. surroundings of Hodonín, Kyjov, and Velké

Example of folk culture: Easter celebrations in the town of Strážnice nad Veličkou and gravel-sands in the surroundings of Vracov, Bzenec, and Strážnice. An increase in the utilisation of resources of chloride-iodine mineral waters shows great potential for the future. Strážnice Chateau houses an exposition of folk music instruments, the only one of its kind in Central Europe

SELECTED FIRMS Name Based in Sector Contact Kordárna, a.s. Velká nad Veličkoutextile production www.kordarna.cz/cs/kordarna 2G –přikrývky a polštáře, s.r.o. Lipov textile production www.2glipov.cz Jiří Šašinka-Hors Hodonín confectionery www.hors.cz Železárny Veselí, a.s. Veselí nad Moravousteel pipes and profiles www.zeves.cz KM Beta, a.s. Hodonín roofing, building products www.kmbeta.cz Moravské naftové doly, a.s. Hodonín crude-oil production www.mnd.cz Šroubárna Kyjov,s.r.o. Kyjov screws www.sroubk.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Vetropack Austria Holding Austria Vetropack Moravia Glass, a.s. glass manufacturing www.vetropack.cz VAG Armaturen GmbH Germany Jihomoravská armaturka, s.r.o. iron and cast-iron armatures www.jmahod.cz Photo: CzechTourism Photo: CzechTourism

31 | CZECH BUSINESS AND TRADE

Znojmo District Znojmo

production, the ceramics, industry, and BRIEF STATISTICS Městský úřad Znojmo engineering. (Znojmo Municipal Office) The well-preserved natural environment Indicator District Region Obroková 1/12 and a pleasant climate are good Area (sq. km) 1 590 7 196 669 02 Znojmo prerequisites for the development of Population 112 889 1 142 013 Czech Republic tourism in the region. A choice of Inhabitants / sq. km 71 159 phone: +420 515 216 111 recreational and tourist opportunities is Unemployment rate (%) 10.7 6.43 fax: +420 515 216 362 provided especially by the Dyje National Source: Czech Statistical Office (as of e-mail: [email protected] Park and the adjoining countryside. The 1st quarter of 2008) www.znojmocity.cz entire region is interlaced with marked hiking and cycle paths, linking up with neighbouring districts and Austria. Other the course of the year. Some of them, such forms of tourism being promoted in the as the Znojmo Grape – a film and radio With an area of 1590 sq. km, the Znojmo region include wine tourism, drawing on festival focusing on gastronomy - and the District is one of the largest in the Czech old local traditions and prompted by new Znojmo Historical Vintage, held each year in Republic. In the south it borders on Austria endeavours. A number of cultural, social, September (www.znojemsky-hrozen.cz), along a line of 105 km. More than 57% of and sporting events are held in the region in attract visitors from far and wide. its population of 112 889 live in the country, settled in 144 communities (five of which have town status). It is one of the districts with the lowest population density. The entire area of the District is situated in the Dyje basin. The Dyje is the most important river in the District, with a dam built in its upper reaches. The Vranov Dam serves not only as a water reservoir supplying the power station built on its one side, but also as the region’s main summer resort. From the economic point of view, the Znojmo District combines farming and industry. Farming in the District is well developed, thanks to the high quality of the vast tracts of arable land and good climatic conditions. The main crops are maize, grain, vegetables, and fruit. The area is known for its vine-growing and wine production. The main industries are the food industry, clay, kaolin, and nickel Church of St. Nicholas in Znojmo

SELECTED FIRMS Name Based in Sector Contact Elektrokov, a.s. Znojmo transformers www.elektrokov.cz TOS Znojmo, a.s. Znojmo engineering www.tos-znojmo.cz Retex, a.s. Moravský Krumlov non-woven textiles www.retex.cz Dřevotvar v.d. Znojmo Znojmo furniture manufacture www.drevotvarznojmo.cz Znojemské strojírny, s.r.o. Znojmo engineering www.strojirny.cz Metal pres, s.r.o. Zastávka u Brna forming machines www.metalpres.cz VHS plus, s.r.o. Znojmo civil engineering www.vhsplus.cz Proimpex,s.r.o. Moravský Krumlov electronic equipment for the automobile industry. www.proimpex.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Impress SA France Impress Znojmo, a.s. metal packing www.impressgroup.com Colas S.A. France Colas CZ, a.s.,závod Jihconstruction www.colas.cz Laufen, Rocco Switzerland, Spain Laufen CZ, s.r.o. ceramics www.laufen.cz Koller Holz Austria Rudolf Koller, s.r.o. wooden structures www.rkoller.cz Ernst Schmircher Austria Znora nábytek, s.r.o. kitchen furniture www.znora.cz CzechTourism Pegas Nonwovens Luxembourg Pegas NW, a.s. non-woven textiles www.pegas.cz Photo:

33 | REGION

Vyškov District Vy‰kov

The Vyškov District is situated in the BRIEF STATISTICS Městský úřad Vyškov eastern part of the South Moravia Region, Indicator District Region on the dividing line between two (Vyškov Municipal Office) Area (sq. km) 876 7 196 mountain systems – the Bohemian Masarykovo nám.1 Population 87 640 1 142 013 Massive and the Carpathians. 682 00 Vyškov Inhabitants / sq. km 100 159 The population of the District, which Czech Republic Unemployment rate (%) 4.45 6.43 covers an area of 876 sq. km, resides in phone: +420 517 301 111 Source: Czech Statistical Office (as of fax: +420 517 368 048 80 communities, five of which have town 1st quarter of 2008) e-mail: [email protected] status. www.vyskov-mesto.cz/su.asp The District’s economic character has always been one combining industry and agriculture. The main industry, which boasts a long tradition, especially in Vyškov, is engineering, followed by woodworking, based in Rousínov. Also represented in the District are the textile and food industries. Half of the District’s area is fertile land, the main crops being sugar beet, grain, and maize. Thanks to its new and well-functioning Sochorova Industrial Park, Vyškov Municipality has managed to cope with growing unemployment in the District, caused by the closing down of large, originally state-owned enterprises, such as the Zbrojovka factory and the sugar refinery. Now, the Sochorova industrial zone employs hundreds of local people and, after its enlargement, this number will further increase. The Vyškov District is one of the regions in the Czech Republic with a well-preserved environment and a large surface area of forestland. Visitors have the opportunity to spend free time hiking in an attractive natural The Mound of Peace is a memorial of the Battle of Slavkov (Austerlitz) environment, with a number of architectural and cultural sights scattered all over the countryside. Especially SELECTED FIRMS popular are the Rakovecké Údolí Valley and Říčky Nature Parks and the Ždánice Name Based in Sector Contact Forest. A great attraction are the Magnum Parket, a.s. Vyškov parquet manufacture www.magnumparket.cz District’s chateaux in Vyškov, Račice, and Staeg, s.r.o. Vyškov construction www.staeg.cz Dřevostyl Vyškov, s.r.o. Vyškov furniture manufacture www.drevostylvyskov.cz Ivanovice na Hané, rebuilt in their present Rostex Vyškov, s.r.o. Vyškov metalworking www.rostex.cz form from Gothic castles. Baroque E-Com Systems, s.r.o. Slavkov u Brna military equipment www.e-comsystems.cz architecture is represented by the chateau Bioveta, a.s. Ivanovice u Brna chemical production www.bioveta.cz in Slavkov u Brna, with a Napoleonic Antreg, a.s. Vyškov electronics www.antreg.cz exhibition recalling the "Battle of Three Rami CZ,s.r.o. Vyškov electrical engineering www.rami.cz Emperors" and a famous picture gallery.

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact FB Industrie GmbH Germany Böttcher ČR, k.s. printing rollers www.bottcher.cz Velux A/S Denmark BKR-ČR, s.r.o. sun-blinds, terrace blinds www.velux.cz Voest Alpine Krems GmbH Austria Voest Alpine Profiform, s.r.o. iron and steel production www.voestalpine.cz and metallurgical processing VPK Packaging Group N.V Belgium COREX CZECH s.r.o paper tube and barrel production www.corexgroup.com/cz/ Fritzmeier GmbH Germany Fritzmeier, s.r.o. metalworking www.fritzmeier.cz

EMS-CHEMIE HOLDING AG Switzerland EMS-PATVAG s.r.o. airbag initiators www.emspatvag.cz/ CzechTourism Pegas Nonwovens Luxembourg Pegas NW, a.s. textile production www.pegas.cz Photo:

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