Mortgage Boom in the Czech Republic

The Czech Economy Is Experiencing an Exceptional Period

Design, Image, Quality

South Bohemia Region

11-12 2006 CONTENTS

Ministry of Industry and Trade

INTRODUCTION CZECH BUSINESS Question of the Month for Martin Tlapa, Deputy Minister of Industry AND TRADE and Trade...... 4

Economic Bi-monthly Magazine with ECONOMIC POLICY a Supplement is Designed for Foreign The Czech Economy Is Experiencing an Exceptional Period...... 5 Partners, Interested in Cooperation with Mortgage Boom in the Czech Republic...... 7 the Czech Republic Issued by: INVESTMENT Czech Republic – On its Way to Becoming and Ideal Location PP AGENCY s.r.o. for Sophisticated Investment ...... 8 Myslíkova 25, 110 00 Praha 1, Czech Republic PP Agency BUSINESS AND PRODUCTION Company with the ISO 9001 certified quality management system for publishing services Zetor Successful with Smaller Tractors on Russian Market ...... 10 Candy Ovens Lit by Czech Light Bulbs...... 10 EDITORIAL BOARD: Martin Tlapa (Chairman), Ivan Angelis, HOW TO DO BUSINESS IN THE CZECH REPUBLIC Zdena Balcerová, Jiří Eibel, Zbyněk Frolík, Companies from EU Able to Found Cooperatives in the Czech Republic ...... 12 Růžena Hejná, Alžběta Honsová, Josef Jílek, Ivan Jukl, Marie Košťálová, Marie Pavlů, Consumer Rights When Buying Goods in the Czech Republic ...... 13 Pavla Podskalská, Josef Postránecký, Libor Rouček, Jiřina Semanová, Jarmila Škvrnová, Ivan Voleš REGION NUTS 3 – South Bohemia Region ...... 14 – 29 MANAGING EDITOR: Jana Vápeníková SERVICES EDITORS: High Level of Czech Interior Design ...... 30 Jaroslava Bradová, Naďa Vávrová Design, Image, Quality ...... 33

REGULAR COLLABORATORS: PRESENTATION OF FIRMS Eva Tomášková ZAT, a.s...... 2 TRANSLATION: Bohemia Properties a.s...... 25 Vlasta Benešová, Alena Kenclová, BRISK Tábor a.s...... 29 Robert Krátky, Dagmar Šímová, Bőttcher ČR, k.s...... 31 Halka Varhaníková ČKD NOVÉ ENERGO, a.s...... 35 READ: RODOKOV 91 s.r.o...... 36 Mathew Booth, Ivana Kadlecová, Katherine McCloghry, Zuzana Pavlíčková Minerva Česká republika, a.s., Hotel Concertino – Zlatá Husa, Armor s.r.o., Asociace mezinárodní spolupráce firem, s.p.o. GRAPHIC DESIGN: Miloslav Bucvan, Helena Dvořáková Cover: www.orangedisc.cz

DEADLINE: 31/09/2006

ADDRESS: Myslíkova 25, 110 00 Praha 1 Czech Republic Phone: +420 221 406 623, +420 221 406 626 Fax: +420 224 934 383 e-mail: [email protected] www.ppagency.cz www.mpo.cz/cbt Press run: 13.500 copies. The number of printed and sold copies České Budějovice of the journal is verified by auditor, HZ Praha, s.r.o., member of PANNELL KERR FORSTER Worldwide. It is not allowed to reproduce any part of the contents of this journal without prior consent from the editor. Attitudes expressed by the authors of articles carried by CBT need not necessarily be consistent with the standpoint of the Publisher. MK ČR E 6379, ISSN 1211-2208 „Podávání novinových zásilek povoleno Českou poštou, s. p., odštěpný závod Přeprava, č. j. 3468/95, ze dne 24/10/1995“

The Czech Economy Is Experiencing an Exceptional High Level of Czech Interior Design Period

3 | INTRODUCTION

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

Programme comprise and what will How in your opinion is the new it focus on in particular? Operational Programme Enterprise We plan to announce a total of 15 support and Innovation for the period 2007- programmes that will focus on six priority 2013 different from the Operational axes of the new operational programme. Programme Industry and Enterprise, We would also like to continue to allocate which is due to end this year? Its certain means of support to beginning very title clearly suggests that entrepreneurs, who generally have good money from EU structural funds business plans; however, they lack the shall be used above all for the necessary financial resources. By means of modernisation and application of financial instruments and in part also new technologies. Will more money subsidies, we also wish to help support the also go to research and further development of such companies. development of new technologies? On the other hand, the most popular The newly prepared operational programme so far, which bears the apt programme for the period 2007–2013 title "Development", shall no longer be does not merely carry a different title; it applied everywhere in future. Instead it really represents a specific qualitative will be limited to the structurally most shift. We will promote to a far greater depressed regions. Considerable support extent than in the past a direct is also planned for the development of connection along the research- business information and communication development-innovation-enterprise axis. technologies. A large portion of subsidies This will mean a greater intensity of will go to the advancement of innovations cooperation of the research and and to the development of consulting and development base with entrepreneurs. It marketing services. Furthermore, we will not only involve scientific and expect to reduce the energy demands of technical parks, business incubators, production and to increase the use of centres for the transfer of technology or renewable sources of energy. Over a half clusters, which are today already among of all funds will, however, go towards the initiatives that receive support, but will modernisation and building of also apply to new forms of cooperation. infrastructure. Money invested in The programme shall focus for instance infrastructure will not only benefit on the promotion of the founding and individual companies, it will also help to development of spin-off type companies, create a more favourable business and i.e. new companies founded by students innovation environment for the majority and young scientists on university of companies in a given region. grounds, and regional associations that focus on research in a particular branch and are able to attract young research Are you able to say at this point and development experts – so-called how much money has been ear- poles of excellence, on direct subsidies in marked for Czech businesses? MORE AT: support of innovation, and so on. In According to present results of principle, this will not involve drawing EU negotiations, the Operational www.mpo.cz funds for basic research and Programme Enterprise and Innovation development, but instead for the swift should receive an 11.75 % share in www.czechtrade.cz application of the results of research and structural funds earmarked for the Czech www.ceb.cz development in production – i.e. for so- Republic by the European Union. called industrial research - commonly Together with national co-financing of www.egap.cz referred to abroad as applied research. a 15 % share from the budget of the Ministry of Industry and Trade, we www.export.cz should arrive at an equivalent of How many individual programmes approximately CZK 100 billion (ca EUR will the new Operational 3.4 billion).

| 4 CZECH BUSINESS AND TRADE

The Czech Economy Is Experiencing an Exceptional Period

The year 2005 was an The growing willingness and capacity of highly significant impact of foreign trade on exceptional one for the Czech people to buy is becoming the decisive the real growth of the Czech economy in factor of Czech economic growth. 2005 was goods trading, which accounted for economy in terms of nearly all Investment and especially foreign trade, the 4.1 percentage points of the said 4.4 % parameters relating to the driving factors of the acceleration of economic contribution. The export and import of country’s macroeconomic growth in the CR in 2005, ranked second in services was substantially smaller than that of terms of year-on-year growth in the first half goods - with only about one-tenth of the development. In addition to the of this year, behind household consumption, volume. In the first half of 2006, however, the highest real increase in GDP in another important GDP component. These influence of trade in goods and services on the last decade, 2005 displayed three basic components boosted the growth year-on-year real GDP growth (+6.6 %) a significant decrease in the of the country’s GDP by 6.6 % in the first half dropped to 0.7 %., while net goods exports of 2006. This year’s second quarter showed contributed 1.5 percentage points to GDP imbalance of various indicators, a slight drop in growth, with GDP rising year- growth. when the unemployment rate on-year by 6.2 %, while in the first quarter dropped and the massive flow of GDP had skyrocketed to the highest quarterly ...HOUSEHOLD CONSUMPTION foreign direct investment was growth figure recorded among the EU25 (with IS REVIVING... the exception of the Baltic states), totalling Household consumption in the Czech renewed. Credit expansion 7.4 % (following a recent review by the Czech Republic accounts for approximately half of continued and the Czech Statistical Office, this estimate was reduced to the total spending on GDP in the Czech Republic fulfilled the Maastricht 7.1 %, still very high in comparison with the economy. This is less than, for example, in the same period of 2005). USA, where household spending amounts to convergence criteria. The 6.1 % approximately two-thirds of GDP. real growth in 2005 was STRUCTURE OF ECONOMIC Nevertheless, even this ratio demonstrates followed by a further growth of GROWTH the great influence of changes in this GDP GDP, increasing by 6.6 % in the As a result of the great openness of the Czech component on the country’s resulting economy (the CR ranks among the economic growth. Since 2000, household first half of 2006. Economic world’s most open economies in terms of the consumption reached its highest year-on-year prosperity continues, although share of exports or imports in the volume of growth in 2003, when consumers spent 6 % economic growth is no longer gross domestic product) the growth of foreign more than in the previous year. This was fuelled by foreign trade – its role trade naturally influences the level of the followed by a relatively marked drop in the country’s economic growth. This, among rate to 2.4 % last year, with real wages is being taken over by other things, explains the significant growing by 3.4 %, resulting in an impact of households with their growing acceleration in 2005, when foreign trade just 1.2 percentage point on growth. The first fancy for spending. The greatest benefited from the opening up of the half of 2006 has shown a further acceleration European market in the second year of the of the growth of household consumption, to propeller of growth in the first Czech Republic’s membership of the EU. In +3.8 % year-on-year, which has intensified half of this year was a shift in 2005, net exports of goods and services the effect of this spending on resulting the change of inventory as the accounted for a full 4.4 percentage points of economic growth in the period concerned most volatile GDP component the 6.1 % real GDP increase. In short, this can (+1.9 percentage points). Growing household be interpreted to mean that the growth of expenditure this year is thus fuelling with difficult predictability. foreign trade was responsible for nearly three- economic growth to a greater degree than quarters of the growth of the Czech economy. investment.

THE INFLUENCE OF FOREIGN ...AND INVENTORY IS TRADE IS DIMINISHING THIS GROWING YEAR… If it were not for the increase in inventory, the One of the greatest factors responsible for the growth of the Czech economy in the first quarter this year would only be about half of GDP growth rate in the Czech Republic (year-on-year %, constant prices) the actual figure. This surprising conclusion was made by an analysis of the contribution of individual components to the real growth of GDP, constant prices, year-on-year % the Czech economy in the first half of 2006. GDP, current prices, year-on-year % The shift in the change of inventory, which amounted to CZK 37.4 billion (approx. EUR 1.256 billion) in real figures in the first six months contributed +2.9 percentage points to the growth of the Czech economy in the period under review (in comparison with 2005, when the movement of inventory pushed economic growth down by 0.17 percentage point). The rapid change in Source: Czech Statistical Office inventory can be attributed, to a great extent,

5 | ECONOMIC POLICY

that the difference between transferred and reinvested profits further increased slightly - in 2004 the volume of dividends of foreign direct investors amounted to CZK 73.5 billion (EUR 2.468 billion) and nearly equalled the volume of profits reinvested by their companies in the Czech Republic (CZK 75.8 billion, that is EUR 2.55 billion). The rate of return on their investment was as much as 12 %. Although Czech firms are strengthening significantly, thereby increasing their chance of making acquisitions in other countries, the ratio of Czech investment abroad to the volume of foreign direct investment in the Czech economy is naturally much to the disadvantage of domestic companies. In 2005 (when, however, the flow of direct investments to the CR was the second highest in history after 2002) the ratio was CZK 20.5 billion (EUR 0.688 billion), to CZK 263 billion (EUR 8.83 billion), and in the first quarter of 2006 it was CZK 20 billion (EUR 0.672 billion) to CZK 62.5 billion (EUR 2.098 billion), showing a massive growth of direct investment by Czech firms this year in other countries (amounting to the same level as investment for the whole of the preceding year) by a broader range of entities, not just the energy company ČEZ and its Balkan acquisitions.

The boom of the Czech economy is evidently at its peak this year ECONOMIC PROSPERITY AND CREDIT EXPANSION to the large number of buildings under balance of payments, however, reveals that the At a time of economic growth, accompanied construction. current account deficit in the period under by the willingness of banks to partake in it by review is not offset by a surplus in the financial financing the Czech business sector with RESTORING THE BALANCE account, not a typical occurrence in the Czech greater intensity, the effect of the rapidly The year 2005 was also marked for very economy even at the time of high external growing economy is augmented by favourable trends towards "redeeming" deficits. As regards the structure of economic a stabilisation of the banking sector, which economic imbalances by faster economic relations with foreign countries, the expected followed the privatisation of large commercial growth. Surprisingly, for two years running, foreign trade surplus will reduce the current banks. Between 2000 and 2003, the volume the country has met the Maastricht criteria in account deficit, while the continuing of credit which banks were willing to grant the budgetary area, with the share of repatriation of profits by foreign direct investors businesses gradually decreased from year to budgetary deficit in GDP at 2.6 % - lower than will continue (increasingly) to affect the flow of year. A change in this trend could only be the 3 % limit required by the Growth and capital out of the country, thus worsening the observed somewhat later. Between 2000 and Stability Pact for convergence to the European situation on the current account. 2005, the volume of bank credits granted to Economic and Monetary Union (in 2004 the This factor can be weakened to a certain firms rose year-on-year by an average of deficit of the CR amounted to 2.9 %). Despite extent, although only very little for the time 4.5 %, while GDP grew by 6.2 % (current the problems which are likely to arise in the being, by capital flowing in the opposite prices). In mid-2006, the relatively high year- near future in adhering to the convergence direction, which Czech firms invest abroad. on-year growth of bank credits (+15.2 %) was criteria in this area, the reduction of internal Last year, such investment amounted to CZK stagnant year-on-year, while, in terms of GDP imbalance, which occurred in 2004 and 2005, 20.5 billion (approx. EUR 0.668 billion) and figures, the economy continued to grow can be considered a success. CZK 26.5 billion in 2004 (EUR 0.890 billion). (+7.8 %). The booming Czech economy The external imbalance also improved, with seems to have reached its climax this year. a drop in the current account deficit to 2.1 % PROFITS OF FOREIGN of GDP. As in the case of internal imbalance, the INVESTORS Drahomíra Dubská favourable trend will obviously not be In 2005 foreign direct investors transferred an Macro-analysis Department, sustained, as in the first half the said ratio estimated CZK 63.1 billion (EUR 2.119 billion), Czech Statistical Office increased to 3.1 % of GDP. At first sight this is in dividends back to their home countries, (e-mail: [email protected]) a relatively trouble-free figure, signalling to which corresponded to a 10 % rate of return www.czso.cz financial markets that monetary development is on their investment. Profits allowed to remain not endangered by external imbalance. A closer in the Czech Republic amounted to CZK 78.5 Note: Conversions to EUR made using the 2005 examination of the six-month figures in the billion (EUR 2.636 billion). The estimate shows average exchange rate of CZK/EUR 29.784. Photo: www.orangedisc.cz

| 6 CZECH BUSINESS AND TRADE

Mortgage Boom in the Czech Republic

The rapid development of Long-term rates gradually decreased for clients to save up the initial housing banking services for small clients together with short-term rates, and investment in advance, allowing them to dropped below the level in the EUR comfortably finance the entire purchase. In is characteristic of those Central zone last year. The declining trend in interest addition to Czech citizens, mortgages are European countries that joined rates was reflected in client interest rates, available to EU citizens and persons the European Union in 2004. This which also dropped to a record minimum. permanently residing in the Czech Republic. Low interest rates and the offer and also applies to the Czech availability of bank credits were thus the MORTGAGES AVAILABLE TO Republic, which has been main factors, although hardly the only ones, ENTREPRENEURS experiencing a massive behind the rapid development of retail In addition to retail clients, mortgages are expansion of retail banking credits in the Czech Republic. The also available to entrepreneurs and Government, for instance, allows interest municipalities. Data supplied by the Ministry accompanied on the one hand by paid on housing credits to be deducted from for Regional Development show that the fast growth in the volume of the payer’s tax base, thus reducing the costs share of businesses in mortgages is by no credits, and on the other hand by of credits for clients. means negligible, although individuals are a rapid development of and will remain the chief clients. Of the total BOOM IN MORTGAGES CZK 389 billion (ca EUR 13 bil.) which have alternative forms of saving The largest boom has been recorded in retail been granted since mortgages were designed for small clients. The mortgages, which have been rising by introduced in the Czech Republic, 70% (CZK Czech Republic is thus slowly but approximately 50% each year. The volume 272.4 billion/ca EUR 9.1 mil.) were retail of private mortgages increased from just mortgages, 28% (CZK 108.7 billion/ca EUR surely approaching the practice below CZK 4 billion (ca EUR 135 mil./0.2% 3.6 bil.) were drawn by businesses, and only typical of advanced market of GDP) at the beginning of 1997 to more about 2% (CZK 7.8 billion/ca EUR 260 mil.) economies, where individuals than CZK 200 billion (ca EUR 6.7 bil./6.5% by municipalities. Whilst individuals use finance a part of their of GDP) in mid-2006. In spite of this rapid mortgages to finance their personal housing growth, the use of credits for the financing needs rather than their business needs consumption, housing in of housing does not by far match the (construction, purchase, and reconstruction particular, by means of bank credits, while continuing to save Mortgages granted since mortgage banks went into operation money in pension funds, Municipalities – 2% domestic and foreign unit trusts, Entrepreneurs – 28% life insurance, building societies, etc. A major upswing of retail banking in the Czech Republic has occurred in the last seven years following the privatisation of the country’s largest banks. Individuals – 70% New foreign owners seized the Source: Ministry for Regional Development opportunity offered by the volume customary in countries west of the of real estate), the situation in the case of undeveloped retail market and Czech Republic. However, the demand for entrepreneurs is just the opposite. It comes gradually expanded their offer of housing credits is far from satisfied and as no surprise that more than 50% of a similar mortgage boom can be expected to mortgages have been granted in Prague and primarily credit products, at the continue at least this year and throughout the surrounding Central Bohemian Region, same time increasing the next year. At present, the market offers as this area has the highest living standard in availability of these services to standard mortgages repayable in up to 30 Central and Eastern Europe in terms of per years with different possibilities of interest capita GDP. clients. A boost to the rate fixing (duration ranging from one year The mortgage boom in the Czech development of these loans also up to the entire period), as well as Republic is expected to last at least for the came from the central bank, "American style" credits which offer the next two years – the demand for housing is which reduced its main interest benefits of a mortgage without the need to not yet fully satisfied and VAT on housing determine its purpose. In the latter case, construction will most probably rise in 2008, rates from 15% in March 1998 however, individuals are not entitled to when the EU exception expires. The lower to a record minimum of 1.75% in deduct interest from their income tax base. rate (5%) will then only apply to "social 2005 due to decreasing inflation Competition has been a boon to the housing". As a result of this, the largest and the strengthening crown. flexibility of standard mortgages – in the number of flats in the modern history of the initial period it was customary to mortgage Czech Republic is expected to be completed only a part of the real estate price (up to this year and the next. Last year’s record 70%), but over time this has increased to 32 900 flats will no doubt soon be bettered. 100% of the price. This eliminates the need Mortgages are a supporting factor of

7 | INVESTMENT

Mortgages are used both by households and entrepreneurs in the Czech Republic economic growth and help people manage increased rates will remain interesting to MORTGAGES GRANTED SINCE their housing situation by allowing them to clients in comparison with those available in MORTGAGE BANKS WENT INTO invest in their own real estate. The expected other EU countries. OPERATION (IN THOUSAND CZK) growth in interest rates, which some Individuals 272 382 268 mortgages are beginning to display, will Petr Dufek Entrepreneurs 108 695 040 obviously end the period of highly ČSOB Municipalities 7 837 598 advantageous loans. However, even these (e-mail: [email protected])

Czech Republic – On its Way to Becoming an Ideal Location for Sophisticated Investment

The Czech Republic has attracted Examples include a recent investment world, and number one in Europe in many foreign investors over the last by Behr of Germany (www.behr.de), investment into the automobile industry. a leading direct supplier of automobile A positive feature of this sector is that it decade. The development and air conditioning and engine cooling encompasses many different branches – "maturing" of its economy is technology that lays great emphasis on the from plastics and electronics to textiles – as naturally reflected in the structure top technological quality of its products, as well as sophisticated technologies. The well as the massive expansion of Automotive concentration of this industry forms a base of incoming investment. In contrast Lighting (www.al-lighting.de), a supplier of for other projects which may be smaller but to the 1990s, when most investment lamps to prominent automobile technologically significant. went into manufacture, a trend manufacturers. Investment in a development towards more sophisticated and technology centre is expected by Bang EMPHASIS ON & Olufsen in Kopřivnice (www.bang- BIOTECHNOLOGIES activities is recently becoming olufsen.com) which will employ 70 highly The most progressive fields of research and increasingly evident. In the first half qualified Czech engineers. development include biotechnology, the of 2006, one-quarter of investment According to an Ernst & Young poll of study of the use of living organisms for projects had a high value added. June 2006, the Czech Republic is the 7th industrial purposes. Biotechnological

most attractive country for investors in the branches are on the upswing in the Czech Photo: www.orangedisc.cz

| 8 CZECH BUSINESS AND TRADE

Republic. Several dozen firms are working industrial and academic entities in Brno, The Economist Intelligence Unit awarded the to develop biotechnologies. Recently, the Prague and other towns. Czech Republic an imaginary bronze medal. first Czech biotechnological cluster, the Other proof is the increasing number of Water Treatment Aliance (www. BRONZE MEDAL FOR SHARED firms which are choosing to locate their wateralliance.cz/) was established in Brno. SERVICES centres of shared services, client support, The rising importance of biotechnologies Besides research and development, foreign and software development in this country. and sophisticated research in general is investment with high value added is directed Their projects in the Czech Republic usually endorsed by a plan to establish an at strategic services. These primarily include expand significantly over time. This applies International Clinical Research Centre - shared services (the financial, HR and IT to DHL, whose base in Prague provides IT ICRC in Brno (www.fnusa.cz/icrc.php), operations of many branches are provided support for one-third of the world, and a clinical, research, and educational centre by a single centre, thus reducing costs and Accenture, which provides financial, specialising in cardiovascular and increasing efficiency), multi-language client accounting, HR, and shared services to neurovascular diseases, internal organ centres, high-tech repair centres, software clients in some 18 languages from this very diseases, neurology, and partly also in development centres, and expert solution city. It is also worthwhile to mention oncology. It will be the only one of its kind centres. ExxonMobil, whose shared services centre in in Europe. Valuable know-how will be The Czech Republic seems to be well Prague caters for its European groups, and provided by the prestigious Mayo clinic in prepared for high-quality service projects. Symbol Technologies, whose combined the USA. This is indicated by a number of centre of shared services, client support, and The International Clinical Research Centre independent international studies. high-tech repairs is experiencing a highly will involve the Czech Republic in major A.T.Kearney’s Offshore Location successful period in Brno. projects of applied research, and facilitate Attractiveness Index placed the Czech Alžběta Honsová the entry of global investors into the medical Republic 7th in the world and 1st in Europe CzechInvest and pharmaceutical industries, helping them in attractiveness to foreign investors (e-mail: [email protected]) to establish subsequent ties with Czech operating on the strategic services market. www.czechinvest.org

LARGEST INVESTMENTS IN TECHNOLOGY CENTRES Investor Sector Country Investment (mil. USD) Jobs Year Region Location VOLKSWAGEN automotive Germany 47.04 370 2004 Central Bohemia Mladá Boleslav Lonza Group biotechnology Switzerland 18.35 50 2005 Central Bohemia Kouřim Ingersoll Rand engineering USA 15.55 70 2004 Central Bohemia Rudná u Prahy SIEMENS AKTIEN GESELLSCHAFT electronics Germany 10.34 18 2005 Hradec Králové Trutnov-Volanov LATECOERE aerospace France 8.90 150 2005 Prague Prague-East Inter Informatics aerospace Czech Republic 8.47 196 2005 Prague Prague Matsushita Television Central Europe electronics Japan 7.19 158 2002 Plzeň Plzeň Bosch automotive Germany 5.52 200 2004 South Bohemia České Budějovice Siemens Kolejová Prague, Prague, vozidla other Germany 5.11 155 2003 Moravia-Silesia Ostrava TESCOMA other Czech Republic 4.43 20 2003 Zlín Zlín Value Engineering electronics Czech Republic 4.29 150 2003 Plzeň Plzeň TRW Deutschland parts for motor Germany 4.22 26 2005 South Bohemia Dačice vehicles Source: CzechInvest

LARGEST INVESTMENTS IN SHARED SERVICES Investor Sector Country Investment (mil. USD) Jobs Year Region Location DHL IT UK 190.25 866 2003 Prague Prague České aerolinie aerospace Czech Republic 52.34 400 2005 Prague Prague ExxonMobil financial & accounting operations USA 33.75 300 2003 Prague Prague Sun Microsystems International IT USA 22.81 300 2005 Prague Prague ON Semiconductor electrical engineering USA 13.29 40 2004 Zlin Rožnov pod Radhoštěm SAP other Germany 7.12 287 2004 Prague Prague Accenture financial & accounting operations Netherlands 5.59 800 2003 Prague Prague Siemens VDO Automotive automotive Germany 5.01 64 2004 Moravia-Silesia Frenštát pod Radhoštěm Symbol Technologies electronics UK 4.39 542 2003 South Moravia Hodonín. Brno Bank Austria financial & Creditanstalt accounting operations Austria 4.36 120 2005 Prague Prague IBM other USA 4.10 200 2000 South Moravia Brno Source: CzechInvest

9 | BUSINESS AND PRODUCTION

Zetor Successful with Smaller Tractors on Russian Market

The cooperation of CzechTrade Zetor has been trying to representatives in Petrograd search for business partners for long-term cooperation on and Yekaterinburg with Czech the Russian market for many years. agricultural machinery The company was successful producers has brought fruit thanks to high-quality products at comparatively favourable prices. in the form of a contract with The power range of Zetor a Russian partner for the tractors falls into the segment smaller Zetor Proxima tractors the Russian distributor worth CZK 18 million (EUR needs to fill. They already sell tractors 600 000) in total. Zetor, of high power the largest tractor producer range, they in the new EU member states, distribute the was given the information of American make John Deere, but the possibility to cooperate with they lack smaller the Petrograd company, which tractors, thus showed interest in distribution Zetor is ideal for them. and service of tractors Zetor holds long- of medium power range. term success on the Zetor is commemorating its 60th anniversary this year After approximately one year Polish market, too, where it of negotiations between the is the tractor make with the highest sales. anniversary of the entry of the registered "Last year the company reached the trademark at the Industrial Property Office. representatives of both historically highest sale since 1989 and in Since the start of the production over 1.1 companies, a contract of Poland 2200 Zetor tractors were sold to million Zetor tractors have been made and distribution was signed for the clients," said the director of the Polish most of them were exported to 90 supply of 70 tractors; the Zetor representation Jaroslav Viktora. countries on five continents of the world. Thanks to this fact, the producer from Brno Zetor celebrates an anniversary in Britain individual tractors were to be gained a 32 % share of the Polish market too – 40 years, and also in Greece, where supplied during the following and was the first on the market for the Czech tractors have been ploughing the period. fourth time in a row. Makes such as John soil for half a century. Deere, New Holland, Same, or Deutz were behind Zetor. During the last ten years, Zetor sold over 11 000 tractors in Russia. For more information, go to This year, Zetor will celebrate its 60th www.zetor.cz

Candy Ovens Lit by Czech Light Bulbs

At the start of the successful Desko and CzechTrade chose a firm development of the preparation for these business cooperation was belonging to the Candy business deals. Nevertheless, CzechTrade Elettrodomestici group as the most continued to help Desko with the CzechTrade foreign office in suitable partner. An offer was made and organisation and preparation of Paris. It shaped a simple CzechTrade started preliminary business negotiation programmes in France. The marketing study for Desko Desná talks with this potential partner, related to period of 2000 – 2003 represented the realisation of possible supplies of a rather long phase of trade preparation. PLC consisting of an overview compact lighting for ovens. Desko had to offer and guarantee better of household equipment Business relations gradually started to supplies than their current German producers, especially producers take place directly between the two supplier had provided. of ovens in France. companies and CzechTrade was only The following year Desko was able to informed of important decisions and the conduct intensive negotiations with other Photo: Zetor

| 10 CZECH BUSINESS AND TRADE

members of the Candy Group. The main talks were carried out at the end of last year and Desko obtained a contract from the Candy Group for the year 2007 worth CZK 12 million, representing a supply of 0.4 million compact lights. As Vladimír Balda from Desko says: "Finding a partner for long-term cooperation is a very difficult thing. Much more difficult and demanding, though, is to keep this partner and develop mutual cooperation. Today’s competitive environment in Europe and in the world is uncompromising and requires constant scrutiny of the market and the competition."

For more information, go to www.desko.cz Photo: Desko Desná Desko has signed a contract with the Candy group on the supply of 400 000 compact lighting fixtures in 2007

11 | HOW TO DO BUSINESS IN THE CZECH REPUBLIC

Companies from EU Able to Found Cooperatives in the Czech Republic

Individuals and companies from All the main principles of new society may also have as its object the the European Union will be able legislation governing European satisfaction of its members' needs by cooperative societies are defined in promoting, in the manner set forth above, to found cooperatives in the detail by the Regulation. At the same time their participation in economic activities, Czech Republic – this has been as and in conjunction with this Regulation, in one or more European cooperative made possible by the Act on Council Directive No. 2003/72/EC was societies and/or national cooperatives. adopted, the implementation of which is A European cooperative society may European Cooperative Societies, the obligation of each member state of the conduct its activities through which came into effect on EU. The Czech Republic has processed this a subsidiary.“ 18 August 2006. A European Regulation by means of Act No. 307/2006 cooperative society is Coll. on European Cooperative Societies. A EUROPEAN COOPERATIVE The Regulation states that the principal SOCIETY MAY BE FORMED AS a commercial company and has object of a cooperative society (Societas FOLLOWS: been incorporated as such in our Cooperativa Europea – SCE) is „the • by five or more natural persons resident legal system on the basis of satisfaction of its members' needs and/or in at least two Member States, a directly applicable regulation the development of their economic and • by five or more natural persons and social activities, in particular through the companies and firms within the meaning of the Council – Council conclusion of agreements with them to of the second paragraph of Article 48 of Regulation (EC) No. 1435/2003 supply goods or services or to execute the Treaty and other legal bodies on the Statute for a European work of the kind that the European governed by public or private law, cooperative society carries out or formed under the law of a Member Cooperative Society. commissions. A European cooperative State, resident in, or governed by the law of, at least two different Member States, • by companies and firms within the meaning of the second paragraph of Article 48 of the Treaty and other legal bodies governed by public or private law formed under the law of a Member State which are governed by the law of at least two different Member States, • by a merger between cooperatives formed under the law of a Member State with registered offices and head offices within the Community, provided that at least two of them are governed by the law of different Member States, • by conversion of a cooperative formed under the law of a Member State, which has its registered office and head office within the Community if for at least two years it has had an establishment or subsidiary governed by the law of another Member State.

CAPITAL, DOCUMENTS, STRUCTURE The Regulation stipulates that the minimum subscribed capital of a European cooperative society shall not be less than EUR 30 000. This capital is made up of members’ shares. These shares must be composed of assets capable of economic assessment. Members' shares may not be issued for an undertaking to perform work or supply services. The statutes are the founding document of the European cooperative society. These shall be drawn up in accordance with the provisions for the formation of cooperative societies laid down by the law of the Member State in which the European cooperative society People and firms from the European Union will be establishing cooperatives in the Czech Republic has its registered office. The statutes shall Photo: www.orangedisc.cz

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be in writing and signed by the founder organ and a management organ. Act No. employees of a European cooperative members. The Regulation lays down the 307/2006 Coll. on European Cooperative society in decisions on matters that minimum essentials of the statutes. The Societies stipulates further detailed concern them. The right to involvement Regulation goes on to define the requirements on the one-tier system and includes the right to information and to procedure by which the registered office of on the board of administration. a hearing, as well as the so-called right to a European cooperative society is influence. This right is understood to mean transferred, the various alternatives of the REGISTRATION IN THE the right to vote and to be elected, to founding of a European cooperative BUSINESS REGISTER name, recommend, or agree/disagree with society, the structure of its bodies, A European cooperative society must be the election or naming of members of the methods of decision-making, members’ registered in the business register, if it is to board of administration or of the rights and obligations, allocation of profits, have its registered seat in the Czech supervisory commission. winding-up, liquidation, and bankruptcy of Republic. Details that need to be registered The full wording of the Act is available a European cooperative society. in the business register include information at http://web.mvcr.cz/sbirka/2006/sb096- The structure of a European cooperative stipulated by the special legal provisions 06.pdf. society can be based either on a one-tier or governing cooperatives, as well as specific two-tier system. This structure is defined details depending on the internal structure by the statutes of the society. In a one-tier of the cooperative society (one-tier/two- system, the society has an administrative tier system). organ in addition to a general meeting. In Part two of the Act on European a two-tier system, the administrative organ Cooperative Societies also stipulates the Daniel Kubát, Economist is replaced by two organs – a supervisory conditions governing the involvement of (e-mail: [email protected])

CONSUMER RIGHTS WHEN BUYING GOODS IN THE CZECH REPUBLIC Do you know what rights a consumer has when buying goods in the Czech Republic? How long is the period during which goods can be returned and what you should demand if it is defective? We will try to answer these and many other questions. Selling goods in a shop is regulated by the Civil Code (Law No. 40/1964 Coll.) and the Act on Consumer Protection (Law No. 634/1992 Coll.) Rules mentioned below are valid for contracts of sale concluded between an entrepreneur, i.e. a person who, when concluding a contract, is acting in his commercial or entrepreneurial capacity, and a consumer, i.e. a person who is acting for purposes which are outside his trade or other business activities. If consumers buy goods in a shop, they can return them without stating the reason only where the seller permits so. The law does not mention the possibility to return goods without reason. The situation is different when the goods are defective. Art. 619 to 623 of the Civil Code regulate the so-called responsibility for defects, conditions of its exercise and consumer’s rights. If the defect is reparable, the consumer can demand that the seller (or guarantee repair service mentioned in the warranty certificate) repair the defect or replace the product. If the defect is irreparable, the consumer can choose between having the product replaced or withdrawing from the agreement (money returned).

WARRANTY PROCEEDINGS Warranty period for consumer goods according to Act. No. 620 of the Civil Code is 24 months from the date of purchase. For the selling of animals the warranty period is six weeks, for fodder three weeks, and for food products it is eight days. If the food, in conformity with special legal regulations, is marked with the "Best before" indicator, the warranty period ends on this date. The place for the enforcement of the liability for defects (warranty claim) and the period for its settlement are regulated by the Act on Consumer Protection in Art. 19. The seller must accept a warranty claim in any of his shops or business premises. A third party, for example a guarantee repair service, may be authorised to perform the repair. The seller is obligated to settle the claim without unnecessary delay; the maximum period for the settlement is thirty days from the claim. If this condition is not fulfilled, the consumer may claim a violation of the purchase agreement (see below) and the seller can be disciplined by the surveillance authority, the Czech Trade Inspection. If the product is not faulty, yet it lacks qualities which the consumer stipulated, he may in accordance with Art. 612 of the Civil Code claim a violation of the purchase agreement. The seller is responsible for the violation that existed at the moment of purchase. The seller is obliged to remove the reason for the violation by repair or by replacement according to the demand of the buyer. If such proceeding is not possible, the consumer has the right to withdraw from the purchase agreement. Violation of the purchase agreement that appears within six months of the purchase is considered a violation existing at the moment of purchase, unless the opposite case is proved or unless this contradicts the nature of the product. The legislature of the Czech Republic delegates the protection of consumer rights to several subjects. In the area of sales of goods in shops it is mainly the above mentioned Czech Trade Inspection, the Czech Agriculture and Food Inspection Authority oversees the quality of sold food, the State Veterinary Administration monitors the sale of meat products. These authorities have the right to fine the seller; they cannot, however, enter the dispute between the consumer and the seller. These disputes are decided by the relevant court. Jana Luhanová Consumers Defence Association of the Czech Republic www.spotrebitele.info

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NUTS 3 – South Bohemia Region

TERRITORIAL DIVISION, LOCATION, INHABITANTS

The Region is a southern border Písek Tábor area of the Czech Republic and Strakonice JindfiichÛv its neighbours are two EU Hradec âeské countries – Austria and Germany. Budûjovice The frontier is formed by the Prachatice Šumava and Novohradské Mountains. It covers 12.8% âesk˘ Krumlov of the area of the Czech Republic and is its second largest region. The Region has more than 627 000 beverages, and also engineering (transport Together with the Plzeň Region inhabitants in 7 districts with a total of 623 equipment, machinery, and equipment), it forms NUTS 2 – Southwest. municipalities, 45 of which are towns. The the textile industry, and woodworking. The Region is situated in the largest town and the centre of the Region New construction, modernisation and is České Budějovice with 95 000 reconstruction are continuing in the South basin of the Vltava River among inhabitants. The other big towns are Tábor, Bohemia Region. The Region has the tributaries of the Otava, Písek, Strakonice, and Jindřichův Hradec. accounted for 5.5% of GDP for some time. Lužnice, Malše, Blanice, and One-third of the South Bohemian The South Bohemia Region is not rich in many other rivers. A total of inhabitants live in these five towns and raw materials and raw material resources only 4.3% live in municipalities with up to for energy are negligible. Its main raw more than 7 000 ponds built in 200 inhabitants. material are sands, gravel sands, clay, the past now exceeds 30 000 gravel, and glass sands. The most hectares (300 million square ECONOMIC important of the other resources is peat, CHARACTERISTICS and in some localities also limestone, metres). The largest of them are The character of the Region has always diatomaceous earth, gneiss, granite, and Rožmberk with an area of 490 been more recreational than industrial. It is graphite. The important natural resources ha, Bezdrev with 450 ha, and traditionally regarded as agricultural include the vast coniferous, spruce, and Horusický with 415 ha, which are predominantly with fish farming and pine forests, especially in the Šumava and forestry. Due to the development of Novohradské Mountains. Agriculture is also the largest ponds in the industry in recent times, the Region can be focused on plant production, mainly Czech Republic. Besides these, described as agricultural-industrial. The cereals, oleipherous plants, and potatoes. the Region has large dam manufacturing industry is the major sector Cattle and pig breeding are dominant in reservoirs – Lipno (4 870 ha, the and within it, the production of food and livestock production. The Region accounts for some 11% of the agricultural largest water surface in the production of the Czech Republic and has Czech Republic), Orlík with large a long tradition in fish farming. The total recreation areas, and Římov, area of its ponds comprises around 25 000 hectares. One half of the country’s fish which is the source of drinking production comes from these ponds where water for most of the Region. there is also located significant amounts of The Hněvkovice water reservoir water fowl breeding (ducks and geese). was built in connection with TRANSPORT the construction of the Temelín The South Bohemia Region holds nuclear power plant. a strategic position in international transport located on the north-south axis. It is crossed by important international roads and the north-south railway corridor.

Road Transport Krajský úřad Jihočeského kraje The E 55 (Rostock – Berlin – Prague – Linz). (South Bohemia Regional Office) road communication system is of U Zimního stadionu 1952/2 international importance. Also important is 370 76 České Budějovice the north-south road I/4: Prague – Příbram Czech Republic – Písek – Strakonice – Strážný (Germany) Phone: +420 386 720 111 and the west-east roads E 49 and E 551 fax:+420 386 354 967 which cross the Region in the direction of e-mail: [email protected] Rozvadov – Plzeň – České Budějovice – www.kraj-jihocesky.cz Třeboň – Halámky – Austria, and Třeboň –

Samson Fountain in České Budějovice Photo: South Bohemia Regional Office

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Jindřichův Hradec – Pelhřimov – Humpolec BRIEF CHARACTERISTICS OF THE REGION and is connected to the D1 motorway. NUTS Area (sq. km) Population Municipalities Population density (persons/sq. km) Railway Transport NUTS 4 – České Budějovice 1 626 180 723 107 111 The most important railway lines go, as with the roads, in the north-south NUTS 4 – Český Krumlov 1 615 60 708 46 38 direction – line No. 220: Prague – Tábor – NUTS 4 – Jindřichův Hradec 1 944 92 752 106 48 České Budějovice – Horní Dvořiště – Linz NUTS 4 – Písek 1 138 70 357 76 62 and line No. 226: Veselí nad Lužnicí – NUTS 4 – Prachatice 1 375 51 470 65 37 České Velenice – Vienna, and in the west- NUTS 4 – Strakonice 1 032 69 539 112 67 east direction Nos. 204 and 190: Germany NUTS 4 – Tábor 1 327 102 217 111 77 – Plzeň – České Budějovice – Veselí nad NUTS 3 – Region 10 057 627 766 623 62 Lužnicí – Jihlava – Havlíčkův Brod – Brno. NUTS 1 – Czech Republic 78 867 10 259 017 6 248 130 Source: Czech Statistical Office (as of 31 December 2005) Air Transport The possible commercial use of the military airfields in České Budějovice and Bechyně 16 345 sq. km with 1.3 million inhabitants. more than 263 000 inhabitants in the could be a boon to the Region. The civilian It associates with 109 Upper Austrian, 83 Districts of Jindřichův Hradec, České airfield at Hosín has international status Bavarian, and 90 Czech municipalities (56 Budějovice, Písek, and Tábor, and in Lower for middle-class aircraft only (www.hosin. of the latter are in the South Bohemia Austria the Districts of Zwettl, Krems, info/). Region). The advantages held by this Gmünd, Waidhofen an der Thaya, and Euroregion are the joint projects, especially Horn. This Euroregion has an area of EDUCATION, CULTURE, in transport, services, and tourism, and the 10 639 sq. km and almost 0.7 million TOURISM exchange of experience. Another inhabitants. The objectives of cross-border The Region has a qualified labour force Euroregion, founded in May 2002, is the co-operation include joint representation due to its many vocational schools and "Silva Nortica" (www.ersn.cz), which of the region, exchange of information, trainee centres, but of greatest includes 42 municipalities with a total of and the development of tourism. importantance are the University of South Bohemia in České Budějovice (www.jcu.cz) and the Faculty of Management of the Average gross monthly wages 2001–2005 (EUR) Unemployment rate 2001–2005 (%) University of Economics in Jindřichův South Bohemia Region CR South Bohemia Region CR Hradec (www.vse.cz). Scientific development mainly takes % place at institutes of the Academy of EUR Sciences of the Czech Republic, which are focused in this region on biology and ecology. Scientific work is included in the activities of the University of South Bohemia. Inhabitants and visitors also have many opportunities for participation in cultural EUR exchange rate as of 31 December 2005 (EUR 1 = CZK 29) activities. These include the South Bohemian Theatre in České Budějovice, which gives summer performances at the REGIONAL DISTINCTIONS revolving auditorium in Český Krumlov. South Bohemia belongs to an area In terms of which is of no major burden to the • Geography: water surfaces (ponds, dams – Lipno), Nature Parks, and the Protected environment. The share of tourism in Landscape Areas of Šumava, Blanský les, and Třeboňsko regional business has been soaring in • Industry: recent years. The South Bohemia Region is – at present – pencil manufacture, beer brewing, fish farming becoming an important area for tourism – historically – Schwarzenberg watercourse, a horse-drawn railway, the world’s first and recreation. The accommodation lump of sugar facilities are ample for recreation, tourism, • Culture: folklore and spa treatment holidays. Spas in the Region are located at Třeboň (www.lazenskepobyty.cz/lazne-trebon), AN IMPORTANT INVESTMENT INTO TOURISM Bechyně (www.laznebechyne.cz) and Vráž The most important project which has had a major influence on tourism in the South u Písku (www.lazne-vraz.cz). Bohemia Region is the Lipno Marina recreation facility close to the Lipno reservoir in one There are many forms of cross-border of the most attractive South Bohemian localities. Its luxury accommodation and broad co-operation included the Euroregion range of services and recreation possibilities, which are constantly being developed and Šumava /Bayerischer Wald/Mühlviertel, improved, have been attracting domestic and foreign clients for several years. (www.euregio.cz) which has a total area of More at www.lipno.info/

15 | REGION

We Fulfil Our Resolutions

Due to a limited allocation of the provided Prague, České Budějovice, and Linz (and in means, just below 600 project applications a larger context the whole connection were fulfilled with a total volume of between the ports in the Baltic and the approvable costs of CZK 3.9 billion (approx. Adriatic Seas, as a whole called Eurocorridor EUR 130 million). North-South) is truly a route of European The Permanent Office of South Bohemia importance. The suppositions of the South in Brussels has been functioning for over two Bohemia Region, with which it has been years. Its central role is to fulfil the tasks developing this project since 2001, have assigned by the Regional Council targeted been confirmed. mainly at its priority projects and interests. It In 2004 the railway branch Prague – Linz is also responsible for collecting offers for the was included among thirty priority projects of South Bohemia Region and for other subjects the trans-European transport network. from the Region participating in projects Regarding the motorway branch, the South subsided by the EU, regular reports from Bohemia Region has been promised the Brussels for the Regional Council and South support of the European Commission and It has been two years since the Bohemian subjects and also establishing the European Investment Bank for its contacts. Our office is currently listed among construction with the use of the PPP (Public South Bohemia Region was the most important Brussels Region Private Partnership) model. The South presented in the Czech Business databases and with the Committee of the Bohemian Region has also started to and Trade magazine.Looking Regions and the awareness of its activities in participate in the EU funded AB-Landbridge Brussels is constantly growing. It is obvious international project thanks to which we will back, I can say that the time that that its establishment was a correct decision. receive data on the expected future transport has passed has been well spent in Thanks to it, the regional government flow on the North-South Eurocorridor. The making our region even more receives information on the development of importance of this transport connection attractive for its visitors and European policy and legislature and the should thus be further proven as well as an Region has also acquired a tool for enforcing urgent investment that needs to be realised investors as well as its its interests in Brussels. Since its foundation, for its modernisation to European standards. inhabitants. the Office has contributed when South We have never been under the illusion Two years ago, after our EU Bohemia Region applicants have received that the EU will give us something free of interesting projects of over CZK ten million in charge. That would have been a crucial accession, we asked ourselves if total. mistake. We now stand before the next we would be able to propose We lay emphasis on the cooperation with programming period 2007 – 2013 and our successful projects and to draw our neighbours, especially the nearest – results so far can hopefully convince us that European funds.We had to work Upper and Lower Austria and Lower Bavaria. with further common effort, we will be able In this area we have established such to meaningfully use a significantly larger towards being able to successfully relationships on the level of regional volume of financial resources which will apply for EU funds and we can say cooperation that promise the possibility of travel in the direction of the Region during that the South Bohemia Region creating an economically and politically the following programming period. strong Central European region. has become an exemplary region Our EU membership has proven that the Jan Zahradník in the Czech Republic in the use motorway and railway connection between President of the South Bohemia Region of EU structural funds. Credit belongs to both the VACANT AREAS FOR INVESTORS Name District Area(ha)/sq.m Contact individual applicants from our České Velenice Jindřichův Hradec 50/ 500 000 Hospodářský park,a.s., [email protected] region, that is the municipalities, Český Krumlov Český Krumlov 25/250 000 Town of Český Krumlov, [email protected] entrepreneurs, non-profit Písek Písek 22.5/225 000 Town of Písek,[email protected] organisations and others, and to Prachatice - Krumlovská Prachatice 2.4/24 000 Town of Prachatice, [email protected] Strakonice Strakonice 20/200 000 Town of Strakonice, [email protected] the representatives of the Region Tábor-Vožická Tábor 25/250 000 Town of Tábor, [email protected] and employees of the regional infrastructure on all the estates council for their efforts in supporting the applicants’ EXPORTS OF THE SOUTH BOHEMIA REGION The overall value of Czech exports or more precisely, their 8.8 % rate of growth in 2005 activities.The result of this mutual in comparison to 2004 was a manifestation of the great disparity in export dynamics effort is over a thousand project among different regions. The South Bohemian Region recorded a drop in exports by plans submitted by South 6.8 % (by CZK 6.2 billion) as did three other regions of the Czech Republic. Per capita exports in the South Bohemia Region amounted to CZK 135.2 thousand in Bohemian applicants who have 2005 (the total value of exports reached CZK 84 714 million). The commodity structure requested project funding of over was dominated by exports of machines and transport equipment (SITC 7), accounting for 51.1 % of total exports in the Region. The export of semi-finished products and materials CZK 15 billion (approx. (SITC 6) ranked in second place with 16.7 % of total exports and industrial consumer EUR 0.5 billion) in total. goods (SITC 8) ranked in third place with 15.2 %.

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The Chamber Provides a Variety of Services to Entrepreneurs

The priority of the South Apart from offering its members and The South Bohemian Economic Chamber Bohemian Economic Chamber is other entrepreneurs various services, the also participates in the creation of South Bohemian Economic Chamber joined programmes for the support of small and support for the development of the project of the Economic Chamber of the medium businesses, both through the the business environment and Czech Republic called "Information Places for Economic Chamber of the Czech Republic on the promotion of the interests of Entrepreneurs" which are a "one-stop-shop" the national and regional level, e.g. the for the business public, a first contact place for formation of the Regional Operational entrepreneurs to whom it offers obtaining information not only from the legal Programme for the period 2007–2013 or the advisory and consulting services, sphere or the area of the EU legislative formation of the Action Plan of the organises various educational conditions, but also for everyday needs. Development Programme of the South courses, central and local Bohemian Region by submitting project and INTERNATIONAL AND LOCAL programme proposals. It also realises many government cooperation, and COOPERATION projects financed by EU funds, the state coordination of the flow of In 2005 the South Bohemian Economic budget or the regional budget. For example, information on the business Chamber founded two public utility in 2006 it completed several successfully activities of its members.Within establishments. The first, the South Bohemian realised projects. Society for the Development of Human The AFTERCARE educational programme the framework of its field of Resources focuses on the development of for entrepreneurs starting out was met with activity, it establishes facilities human resources, the second, the South great interest, over 100 people participated in and institutions for the Bohemian Agency for the Support of it, the budget was CZK 3.3 million (approx. Innovative Business, concentrates on the EUR 110 000) and the project was co-financed development of business and support of innovations in the South Bohemian by the European Union and the Czech education. Region. Republic. Over 200 people participated in the The South Bohemian Economic Chamber Centre for Cross-border Development of Jihočeská Hospodářská komora also cooperates with foreign economic Human Resources project, with a budget that (South Bohemian Economic Chamber) chambers, especially from Upper and Lower reached CZK 5.8 million (approx. EUR 193 Husova 9 Austria and Lower Bavaria and with other 000), and the project was co-financed by the 370 01 České Budějovice partners mainly in the border areas. The European Union from the CBC Phare 2003 Phone: +420 387 318 433 Chamber is also a member of Silva Nortica programme and the INTERREG project, Czech Fax: +420 387 318 431 Euroregion (www.ersn.cz/) and cooperates Republic–Austria: With a Border in Europe, and e-mail: [email protected] with the Šumava Euroregion (www. had a budget of CZK 1.4 million (approx. EUR www.jhk.cz euroregio.cz). 47 000).

We Advise on Business and Investments

The Regional Development The sphere of activities of the Agency problems. The Agency has rich experience Agency of South Bohemia, RERA consists mainly of the administration with entrepreneurial projects aimed at the of European and state funding purchase of new technology or staff a.s. has been providing its programmes, the creation of strategic plans education. In one of the latest projects, the services to business people, non- and development concepts, the preparation Agency helped the traditional Platan profit making organisations, and of applications for financial resources and brewery (www.pivo-platan.cz) to receive the subsequent realisation of projects, the funding for the purchase of new technology towns and municipalities for processing of project plans or the formation worth over CZK 3 million (approx. EUR seven years. of feasibility studies. 100 000) and the funding of CZK 1.3 million (approx. EUR 44 000) for staff education. FOCUS ON LOCAL AND The Agency is also able to assist foreign entrepreneurs who decide to do business in Regionální rozvojová agentura FOREIGN ENTREPRENEURS The Agency offers an individual portfolio to South Bohemia. It arranges, for example, to jižních Čech, RERA a.s. entrepreneurs. It consists of the complete find a suitable location for business or (The Regional Development Agency preparation of projects and the possibility to business partners. The last such project was of South Bohemia, RERA a.s.) administratively manage the project after setting up collaboration between a South Husova 5, 370 01 České Budějovice the entrepreneur receives the funding. Bohemian and an Austrian company, Czech Republic Cooperation with the Agency enables the creating 40 new jobs in production and 5 Phone: +420 387 014 111 entrepreneur to request financial resources jobs in research. As it is active throughout www.rera.cz and to realise the whole project without any the Region, the Agency is also able to

17 | REGION

recommend interesting projects for goal is to bring South Bohemian 16 million (approx. EUR 534 000) will be investment for foreign investors, for entrepreneurs and schools or research allotted. The Agency is also involved in the example in the area of tourism, institutions of the South Bohemia Region preparations of the South Bohemia Region infrastructure and other areas. the maximum possible finances from for the new programming period national or European resources to 2007–2013. It compiles the ground USE OF EUROPEAN strengthen competitiveness and support analyses and co-authors the Regional RESOURCES regional development. The last of these is Operational Programme for South One element of growing importance in the MATEO project (based on the Bohemia and the Plzeň Regions on the the activities of The Regional Development development of innovation processes basis of which it will be possible to draw Agency is the preparation and realisation between smaller firms and research financial resources of hundreds of millions of larger, international projects. Here the organisations), in which more than CZK of crowns every year.

České Velenice–Gmünd Commercial Park Offers Business Without Borders

The international cross-border In addition to the industrial lots for 3.44 mil. These costs were equally shared by project České Velenice-Gmünd investors, there is also the so-called Austria and the state of Lower Austria, Founding and Consulting Centre for where the contribution by Austrian Federal Commercial Park is based upon beginning or newly established businesses, Ministry of Transport, Innovation, and a 1990 bilateral Czech-Austrian and temporarily also for investors from the Technology was jointly financed by the treaty in which both countries Commercial Park. Besides consulting European Union's European Regional services, the Centre also provides office and Development Fund. agreed to a joint project to production space leases as well as other create a cross-border industrial services at favourable prices. The cross- zone that would serve industry border concept allows for the realisation of For more, see: www.access.co.at and services development and cross-border projects on both sides of the state border while utilising production restructuring in the northern part processes on a split-shift basis. of Waldviertl and the Czech border region – the southern FIRST PROJECTS IN 1999 part of South Bohemia. The first cross-border, green-field project of the Strojírenský podnik MARS České The ACCESS Commercial Park is Velenice and Mars Greiftechnik Gmünd Europe's first industrial zone companies has been in operation since 1999 which covers both sides of and serves as an example of the optimal utilisation of all the benefits provided by this a state border both location on both sides of the state border. geographically and in its The plants are only 50 m apart and they organisation.This concept allows function as one. Based on all the possibilities for the first sharing of specific offered by their location, region, and Czech and Austrian legislature, the production advantages for different processes are organised as "without economic regions in the one borders" or "cross-border". A border location.The Commercial Park checkpoint on company premises makes it offers 83 ha (830 000 square possible to move material and wares any time it is needed. The border may be crossed metres) of quality land with by registered employees provided that both complete engineering networks Czech and Austrian legal regulations are with 50 ha on the Czech side adhered to. 17 investors concluded contracts of either and 33 ha on the Austrian side. purchase or lease for establishing 18 premises in the commercial park up to now. The total cost of building of the 1st and 2nd The first projects of international co-operation in phases amounted to CZK 103.1 mil. / EUR

České Velenice were launched in 1999 Photo: ACCESS archives

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Hundred-Year Tradition of Engineering in South Bohemia

The Motor Jikov Group is a Czech Their products find use conglomerate of industrial in a broad range of machines, be it General companies formed by: Motor Electric locomotives, Jikov Slévárna litiny, Motor Jikov Mercedes-Benz cars, Tlaková slévárna (die cast), E-Z-GO golf carts, Electrolux washing Motor Jikov Strojírenská, and machines, or riveting Fostron. tools sold as Avdel. The The Group's dominating lines of Group's current annual business are subdeliveries of turnover amounts to EUR 48 million and the components for passenger cars number of employees and commercial vehicles, exceeds 1100. aluminium and zinc alloy die Motor Jikov Group castings, and gray iron castings. builds on a more than century-old tradition of The companies also manufacture machinery production; Motor Jikov Group manufactures components of cars and utility vehicles special-purpose machine tools, the original company riveting tools, mowing machines, began to manufacture mill technology in exports, followed by Germany with 1899. During the communist era, the 17 per cent, Italy, and the UK. and cleaning machines. company was assigned the role of The company strives to make the best component supplier for the fuel systems use of its convenient location and be of Škoda cars. The breakdown of better than its competitors from the the planned economy along with region. We believe that low production a demand for fuel systems sent costs along with the excellent quality and the company on a path of long long-term reliability will prove to be and trying transformation. highly competitive and will attract new Following privatisation, sale of customers who will in turn guarantee the various parts of the company, and company's future growth. The fact that acquisition of some production the company is serious about quality was plants, Motor Jikov Group settled confirmed by a number of certificates, in its present form with clearly including ISO 9001, ISO/TS 16949, and defined responsibilities of its partly ISO 14000. companies and stable customer The company offers the possibility of relationships. building strategic partnerships. The USA remains an important market for Motor Jikov Group, despite a decrease in exports to Motor Jikov Group is following up its more than a century-old the United States. The USA tradition in engineering production accounts for 18 per cent of For more, see: www.motorjikov.cz

Linde AG Expansion

Owing to its excellent results, It will produce control axletrees for primarily intended for expansion of the the controlling company of Linde forklift stackers and fuel systems for Český Krumlov production plant where warehouse machinery. a new and modern production hall of AG decided to build a new plant Because of a decision by the Ministry 6 300 sq. m was built at the end of the year. in Bohemia and move a new of Industry and Trade, LINDE POHONY A complete serial production of control production programme to it. s.r.o. received an investment incentive in axletrees for highlift stackers has been the amount of almost 700 million CZK ensured since 1 September 2006 (after

(approx. 23.3 mil. EUR). The investment is the installation of new machine tools). Photo: Motor Jikov Group

| 20 CZECH BUSINESS AND TRADE

A MODERN FACTORY ximately 190 million CZK (EUR 6.3 mil.) the UK, Italy, France, the USA, and SUPPLYING MANY of the investment incentives, and China) with its products. COUNTRIES increased the number of employees to Production technology also includes 231. LINDE POHONY, s.r.o. currently a modern varnishing line and several supplies many comglomerate plants For more, see: www.linde.com assembly lines taken from the parent for a number of countries (Germany, plant and modernised before installation in Krumlov. By the end of 2006, the company's manufacturing programme Linde Pohony, s.r.o. is a part of the German conglomerate Linde AG, which bought the will have been extended to supply fuel Jihostroj company premises in Český Krumlov in 1997. It specialises in the production of systems for warehouse machinery. The fuel units for electric highlift stackers, components used in CNC machine tools, and the company expects that by the end of machining of rotary and box components. Most of the production is intended for export. 2005, it will have invested appro-

Incubators for New Technologies

The business incubator in České The business Budějovice, the incubator at the incubator in České Budějovice will Centre of Biological Technologies receive a contribution of CZK in Nové Hrady, and the Třeboň 30 million (approx EUR Innovation Centre are three 1 million) from the EU. It will provide assistance to South Bohemian projects which beginning entrepreneurs and applied for subsidies from EU small and medium-sized firms structural funds (Prosperity operating in biotechnologies, programme) in 2005. ecological farming, landscaping, the food industry, and in the use of alternative sources of energy. www.jcu.cz

GLOBAL IMPACT OF ALGAE "Our idea is to cultivate selected autotrophic microorganisms in a solar photobioreactor with the Algae biomass is cultivated at the Centre of Biological Technologies in help of concentrating Nové Hrady rasters," Petr Kohout says with reference to the project in Nové Třeboň Innovation Centre for the second Hrady. New technologies, solar energy phase of its development. The Centre is and specific conditions allow the Centre working to develop solar technologies and to cultivate algae biomass, which is then technologies for the use of biogas – for thickened, disintegrated, and subse- instance technologies for the processing quently dried. Biomass products are used and use of biomass such as mown grass or in the food, pharmaceutical, and feed sludge from water treatment plants. It is industries. developing, for instance, special dredges www.greentech.cz for the extraction of pond sediments. The Centre also operates in precision USE OF SOLAR ENERGY mechanics and optics.

Money from the EU is also going to the www.tic.trebon.cz/ Photo: Centre of Biological Technologies

21 | REGION

âeské Budûjovice České Budějovice District

The České Budějovice District is the natural BRIEF STATISTICS Magistrát města České Budějovice centre of the South Bohemia Region. The Indicator District Region District has 107 municipalities, 9 of which (České Budějovice City Council) Area (in sq. km) 1 626 10 057 Nám. Přemysla Otakara II. are towns. The largest town is České Population 180 723 627 766 370 92 České Budějovice Budějovice (www.c-budejovice.cz) Inhabitants (sq. km) 111 62 Czech Republic inhabited by 55% of the district phone: +420 386 801 111 population, followed by Týn nad Vltavou Average monthly fax: +420 386 801 850 (www.tnv.cz) with 8 000 inhabitants. The wage (in EUR) 653 592 e-mail: [email protected] other towns have up to 5 000 inhabitants. Unemployment rate (in %)4.55 6.69 www.c-budejovice.cz The District has an industrial-agricultural Source: Czech Statistical Office (as of 31 December 2005) character. Besides engineering, which is Note: EUR 1 = CZK 29 concentrated primarily in České Budějovice, (as of 31 December 2005) the important sectors are the food industry, woodworking, plastics moulding, the construction in the early 1980s. In 2003, it construction industry, and electrical had an installed capacity of 2000 MW and engineering. Well known products at home became the largest source of energy in the and abroad include Budvar beer and the Czech Republic. Predominant in agriculture Koh-i-noor Hardtmuth pencils. The Temelín is cereal production and cattle and pig nuclear power plant went under breeding.

SELECTED FIRMS Name Based in Sector Contact Budějovický Budvar, n.p. České Budějovice beer brewing www.budvar.cz Gama Group, a.s. České Budějovice medical materials www.gama.cz KOH-I-NOOR, a.s. Mladá Vožice plastic and rubber www.kohinoor.cz products Fostron, a.s. České Budějovice machine manufacture www.fostron.cz Centes, s.r.o. České Budějovice plastic products www.centes.cz Alfa Print-Polyflex, s.r.o. České Budějovice office equipment www.alfaprint.cz Jihokov, v.d. České Budějovice metal production www.jihokov.cz Temelín nuclear power plant generates electricity in Madeta, a.s.. České Budějovice dairy products www.madeta.cz two units FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Royal Philips Electronics Netherlands Philips Česká republika electronics www.philips.cz Wienerberger Austria Wienerberger cihlářský průmysl, a.s. building materials www.wienerberger.cz Silhouette Int.Schmied, AG Austria A.Schmied, s.r.o. spectacle rims www.silhouette.at Duropack Austria Duropack Bupak Obaly, a.s. paper, packaging www.duropack.cz Heraklith AG Austria DCD Ideal, s.r.o. plastics www.heraklith.at Viscofan INDC Spain Viscofan CZ, s.r.o. plastics www.viscofan.com Freudenberg Mektec Europa GmbH Germany Freudenberg Mektec CZ, s.r.o. electronics www.freudenberg.de

Bold City Development Plans with the Help of EU Funds

For the next 2007-2013 accelerated the transport of goods in the České Budějovice is continuously programming period, the city is region. preparing a number of projects to be One of the projects is the revitalisation developing its potential so as realised with assistance from EU funds. In of this railway in the centre of the city and to make the city a pleasant place 1832, a horse-drawn railway began to it will become its new tourist attraction. to live and also a magnet operate, after seven years of construction. This will involve renewing the operation of for tourists. It was the first to be built on the European a part of the railway and building the continent and connected České Budějovice necessary facilities in the city park. with Linz, Upper Austria. The railway, Another intention is the use of the

together with the Vltava River shipping, latent potential resting in the geographical Photo: ČEZ

| 22 CZECH BUSINESS AND TRADE

position of České Budějovice lying on the drawn railway promises to be very complicated situation caused by the confluence of two rivers, the Vltava and attractive. growing traffic in České Budějovice. The the Malše. A great opportunity for the city A reaction to current trends in leisure construction of the road is seen as both to re-discover the Vltava is being prepared time activities prompted the idea of urgent and strategically important and is in a project by the state, which, after many building a sports centre focusing on so- part of the project to link up the road from years, will allow uninterrupted movement called street sports – the Stromovka Jindřichův Hradec (and later from Prague) of boats along the course of the river from Freetime Park. The centre will offer with the city bypass in the direction of Linz. Prague to České Budějovice. The plan of a comprehensive solution for those The completion of the city bypass will the České Budějovice municipality is to join enjoying street and adrenaline sports and facilitate and accelerate the the state project and extend the will become a place for people of a similar city’s connection with neighbours across navigability of the river up to the city walls life-style to meet. the border and emphasise its strategic in the centre of the regional capital. One of the city’s high-priority plans is position. The possibility of a connection by ship the construction of a road behind the between České Budějovice and the railway station and an underground traditional historical place of Hluboká nad passage for pedestrians to cross below the More at www.c-budejovice.cz Vltavou and its linking up with the horse- rails, which would help solve the

University of South Bohemia Has an Efficient Scientific and Research Base

The University of South Bohemia The study can have a regular or prestigious research projects throughout in České Budějovice has 10 000 combined form. Lectures and the world. These include the Study of seminars within sixteen branches are Ecosystems at a research station on the students in six faculties – also offered in English, and in three island of Papua-New Guinea, the biology, philosophy, pedagogy, branches, also in German. construction of a Czech polar station on theology, health and social care, Of great importantance in the science, James Ross Island in Antarctica, the research, and teaching of the University of discovery of a new type of bacteria during and agriculture. The University South Bohemia is its close co-operation studies of the flow of energy in world also has two scientific institutes with the institutes of the Academy of oceans, a project to protect the – the Research Institute of Fish Sciences of the Czech Republic. This gives endangered "prehistoric" fish (paddlefish Breeding and Hydrobiology České Budějovice an extraordinarily Psephurus gladius) in China, and efficient scientific base of research in the archaeological research in Abu Sir in Egypt. based in Vodňany and the natural sciences and partly also social Institute of Physical Biology in sciences and yields many theoretic and Nové Hrady. applied results for entrepreneurs in the region. The University of South Bohemia More at: www.jcu.cz The University’s Centre of Biological Photo: University of South Bohemia offers accredited bachelor, Technologies of the master, and doctoral study Institute of Physical programmes which form a broad Biology in Nové Hrady was established in 2005 scientific base of 170 study with a contribution branches with a number of from the European specialisations. Union programme of Cross-border Co- operation PHARE CBC 2001. Its bioincubator with top parameters supports innovation in small and medium- sized enterprises in the Czech-Austrian- Bavarian border area. The University The University of South Bohemia has an efficient scientific base focused on participates in natural science

23 | REGION

Český Krumlov District âesk˘ Krumlov

many cultural and historical monuments, BRIEF STATISTICS Městský úřad Český Krumlov and excellent recreational opportunities. Indicator District Region (Český Krumlov Municipal Office) The District has 46 municipalities, 5 of Nám. Svornosti 1 which are towns. The natural centre and Area (in sq. km) 1 615 10 057 381 18 Český Krumlov the biggest town is Český Krumlov Population 60 708 627 766 Czech Republic (www.ceskykrumlov.cz) inhabited by 23% Inhabitants (sq. km) 38 62 phone: +420 380 766 306 of the District’s population. The District has Average monthly fax: +420 380 766 811 an industrially-agricultural character. wage (in EUR) 578 592 e-mail: [email protected] Industry is concentrated in the industrial Unemployment rate (in %) 10.3 6.9 www.mu.ckrumlov.cz zones of Český Krumlov and Kaplice Source: Czech Statistical Office (as of 31 December 2005) (www.mestokaplice.cz). Note: EUR 1 = CZK 29 (as of 31 December 2005) The major sectors are woodworking, Český Krumlov District, the southernmost engineering, and electrical engineering. district of the Czech Republic, borders on The mined minerals are graphite and on cattle breeding. Forestry is important as Austria. The advantages of the District are granulite. Farming is focused on cereals 47% of the District area is forested. its situation and transport accessibility, its and fodder crops and livestock production The District has many monuments. The jewel of the whole region is the architectural entity – the town of Český Krumlov, which is on the UNESCO (www.unesco.cz) List of World Natural and Cultural Heritage. Český Krumlov Castle from the mid-13th century is the second largest in Bohemia and the revolving auditorium in its garden is unique. The town is a centre of tourism and cultural and social events. Rožmberk nad Vltavou Castle (www.hrad-rozmberk.cz) also attracts many visitors.

The historic centre of Český Krumlov – UNESCO-listed monuments

SELECTED FIRMS Name Based in Sector Contact JIP-Papírny Větřní, a.s. Větřní paper production www.jip.cz Jihostroj, a.s. Velešín engineering www.jihostroj.cz Lira, a.s. Český Krumlov picture frames www.lira.cz Boxit, s.r.o. Kájov building materials www.boxit.cz production BK Parket, s.r.o. Sedlice parquet production www.bkparket.cz P.M.H. Invest Trade, s.r.o. Český Krumlov radiators, sanitary www.pmh-co.cz fittings Navel, s.r.o. Velešín engineering www.navel.cz Pivovar Eggenberg, a.s. Český Krumlov beer brewing www.eggenberg.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Fronius Int. GmbH Austria Fronius ČR, s. r. o. welding equipment www.fronius.cz J.Sarfert Germany Sarfert, spol. s r. o. electrical engineering www.sarfert.de Schwan-Stabilo GmbH Germany Schwan-Stabilo ČR, s. r. o. office equipment www.schwan-stabilo.cz Linde Aktien Gesellschaft Germany Linde Pohony, s. r. o. engineering www.linde-mh.cz/ Kopp GmbH Austria Kopp Elektrotechnika, s.r.o. electrical engineering www.kopp-czech.cz Herbert Brandl Germany Brawe, s.r.o. metalworking www.brandl-hb.com Franz Zambelli Sopalú Germany Zambelli-technik, s.r.o. metalworking www.zambelli.cz Photo: Český Krumlov Municipal Office

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JindfiichÛv Hradec Jindřichův Hradec District

22 900. The town is known for its rich BRIEF STATISTICS Městský úřad Jindřichův Hradec cultural and social life and the traditional Indicator District Region (Jindřichův Hradec Municipal Office) international competition of young Klášterská 135 musicians known as Concertino Praga. Area (sq. km) 1 944 10 057 377 22 Jindřichův Hradec Jindřichův Hradec is the smallest university Population 92 752 627 766 Czech Republic town in the CR, with the Faculty of Inhabitants/sq. km 48 62 Phone: +420 384 351 111 Management of the University of Average gross monthly Fax: +420 384 361 503 Economics, Prague (www.vse.cz). wage (in EUR) 525 592 e-mail: [email protected] The Jindřichův Hradec District is Unemployment rate (in %) 7.45 6.69 www.jh.cz a district with both industry and Source: Czech Statistical Office (as of 31 December 2005) agriculture. Manufacturing has an Note: EUR 1 = CZK 29 (as of 31 December 2005) especially long tradition there. Also With its area of 1 944 sq. km, the represented, however, are the food Jindřichův Hradec District is the largest of industry, the textile industry, cattle breeding are the main lines in animal all districts in the Czech Republic. It is woodworking, engineering and the production. An important raw material formed by 106 communities, 9 of which manufacture of office requisites. Farmland source for the Jindřichův Hradec District is have the statute of town. The largest town accounts for 47.5 % of the District’s total its forests, which occupy 38 % of its total and the centre of the District is Jindřichův area. Crop production includes cereals, area. A specific feature of the District is the Hradec (www.jh.cz), with a population of potatoes, and forage. Pig rearing and extensive water surfaces in the system of fish ponds. There are more than 2 500 fish ponds in the District,which are traditionally SELECTED FIRMS used for fish farming and which occupy Name Based in Sector Contact about 6 % of the District’s area. Alma, a. s. Nová Bystřice textile industry www.alma-ltd.cz Centropen, a. s. Dačice office requisites www.centropen.cz There are seven border crossings with Jitka, a. s. Jindřichův Hradec textile industry www.jitka.cz Austria in the District, four of which are Otavan, a. s. Třeboň textile industry www.otavan.cz road crossings (České Velenice, Halámky, ŽOS České České Velenice repair of railway www.zos-cv.cz Nová Bystřice, Slavonice), one railway Velenice, a. s. engines crossing (České Velenice), and two are only Seto, s.r.o. Dačice electrical engineering www.seto.cz open for pedestrians and cyclists (České Obal Rozkoš, s.r.o. Jindřichův Hradec metallic packing www.obal-jh.cz Velenice-Lávka, Chlum u Třeboně) Tebo, a.s. Jindřichův Hradec textile industry www.tebo.cz (www.ckrumlov.info/docs/cz/doprava_hran Fire-Com, s.r.o. Jindřichův Hradec fireplaces, stoves www.firecom.cz icni prechody.xml).

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Edscha AG Germany Edscha Tools, a.s. engineering www.edscha.cz Magna Presstec AG Austria Magna Cartech, spol. s r. o. metalworking www.magna.at TRW GmbH Germany TRW-DAS, a. s. components for www.trwauto.cz the automobile industry Moeller G.KG Austria Moeller Elektrotechnika, s.r.o. electrical engineering www.moeller.cz

Písek Písek District

The industrial and agricultural district of BRIEF STATISTICS Písek is formed by 76 communities, five Městský úřad Písek Indicator District Region of which are towns. The most important (Písek Municipal Office) Area (sq. km) 1 138 10 057 of them is the district town of Písek, Velké náměstí 114 Population 70 357 627 766 where 42% of the District’s population 397 19 Písek Inhabitants /sq. km 62 62 live. The centre of the town of Písek was Czech Republic Average gross monthly declared an urban historical zone. The Phone: +420 382 330 111 wage (in EUR) 533 592 attraction of the whole region is Fax: +420 382 214 431 Unemployment rate (in %) 8.48 6.69 highlighted by the Orlík Dam Lake with e-mail: [email protected] Source: Czech Statistical Office (as of 31 December 2005) www.mesto-pisek.cz Orlík Chateau and Zvíkov Castle Note: EUR 1 = CZK 29 (as of 31 December 2005) (www.hrady.cz).

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The main industries are engineering, engineering, and the metal- and wood- in the District’s three largest towns – the textile industry, electrical working industry, which is concentrated Písek, Milevsko, and Protivín (www.obce.cz). Opportunities for SELECTED FIRMS investment are provided by the Písek- Name Based in Sector Contact Čížovská industrial zone (www.mesto- Jitex, a. s. Písek textile industry www.jitex.cz pisek.cz/zona). The District’s mineral ZVVZ, a. s. Milevsko air conditioning www.zvvz.cz resources are limited and include black KMB nábytek, s.r.o. Písek furniture making www.kmbnabytek.cz clay, brick clay, limestone, and granite, Casta, a.s. Písek industrial structures www.castainvest.cz which is used in brick production, Rivetec,s.r.o. Písek tool making www.rivetec.cz quarrying, and sand digging. In Kovosvit, a.s. Písek machine tools www.kovosvit.cz agriculture, the decisive crops are Brotex, s.r.o. Písek textile production www.brotex.cz cereals, forage, and potatoes.

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Aisin Europe S.A. Belgium Aisin Europe automobile components www.aisin.co.cz Manufacturing Czech, s.r.o. Bramac Dachsysteme Austria Bramac, s.r.o.,záv.Protivín construction www.bramac.cz International GmbH Schneider Electric Industries SA France Schneider Electric CZ, s.r.o. engineering www.schneider-electric.cz Heyko Werk Heynen GmbH Germany Heyko Werk ČR, s.r.o. car accessories www.heyco.cz SNOP -Dunois France S.N.O.P. CZ, a. s. car accessories www.snop.fr

Prachatice Prachatice District

Netolice. In the past ten years, the BRIEF STATISTICS Městský úřad Prachatice District’s industrial production has Indicator District Region (Prachatice Municipal Office) undergone a massive restructuring, with the Area (sq. km) 1 375 10 057 closure of inefficient plants. Currently there Husova 103 Population 51 470 627 766 are 58 enterprises in the District, each 383 01 Prachatice Inhabitants/sq. km 3762 Czech Republic employing 20 and more workers. These Average gross monthly Phone: +420 388 607 217 enterprises account for a mere 3.1 % of the wage (in EUR) 534 592 Fax: +420 388 313 567 region’s industrial production. Investment e-mail: [email protected] and business opportunities are provided by Unemployment rate (in %) 6.4 6.69 the Krumlovská zone in Prachatice. The Source: Czech Statistical Office (as of 31 December 2005) www.prachatice.cz Note: EUR 1 = CZK 29 (as of 31 December 2005) traditional industries are wood-working, glassmaking, and textile manufacture. Also Part of this boundary district borders on represented is the chemical industry and of cereals, oleaginous crops, and potatoes. Austria in the south and in the south-west electrical and mechanical engineering. The District’s great natural wealth, however, the ridges of the Šumava Mountains form Agriculture concentrates on livestock is its vast forests, which cover 51.5 % of its the natural frontier of the District and the production, fish farming, and the production surface. The District has rich peat deposits. whole country with Bavaria, Germany. A major part of the District is covered by SELECTED FIRMS highlands, which near the border rise to Name Based in Sector Contact form the Šumava mountain zone. There are Klima, a.s. Prachatice air conditioning www.prachatice.cz/klima 65 communities in the District, four of which STS Prachatice, a.s. Husinec engineering www.stsprachatice.cz have the statute of town. More than a half Larm, a.s. Prachatice engineering www.larm.cz of the total population is concentrated in the Elim, s.r.o. Prachatice engineering www.elim.cz towns of Prachatice, Vimperk, Volary, and Beton, s.r.o. Těšovice concrete products www.beton-t.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Asam GmbH Germany Repuli Bohemia plastics [email protected] OGK Media Germany OV Media, s.r.o. pulp and paper www.ovmedia.nl Hatz Holding GmbH Germany Hatz CZ, s.r.o. car industry www.hatz.com

27 | REGION

Strakonice District Strakonice

In terms of area, the Strakonice District is one of BRIEF STATISTICS Městský úřad Strakonice the Region’s smallest. It is formed by 112 Indicator District Region (Strakonice Municipal Office) communities, five of which are towns. The Area (in sq. km) 1 032 10 057 largest of them is Strakonice (www.mu-st.cz), Velké Náměstí 2 Population 69 539 627 766 which is the home of 35 % of the 386 21 Strakonice Inhabitants/sq. km 67 62 Czech Republic District’s population. It is an industrial and Average monthly Phone: +420 383 700 111 agricultural district, with the district town of wage (in EUR) 567 592 fax: +420 324 535 Strakonice as its industrial centre. Industrial Unemployment rate (in %) 7.34 6.69 e-mail: [email protected] facilities can also be found in the towns of Source: Czech Statistical Office (as of 31 December 2005) www.mu-st.cz Blatná (www.blatna.cz) and Volyně Note: EUR 1 = CZK 29 (as of 31 December 2005) (www.volyne.info.cz). The main industries are engineering, the textile industry, and the food SELECTED FIRMS industry. An important position is held by Name Based in Sector Contact ČZ Strakonice, a. s. Strakonice engineering www.czas.cz agriculture, with potatoes as its principal crop. Jihospol, a. s. Strakonice construction www.jihospol.cz A characteristic feature in the District is fish Tesla Blatná, a. s. Blatná electrical engineering www.tesla-blatna.cz farming specialising in the production of South Alva Strakonice, s.r.o. Strakonice electrical engineering www.alva.cz Bohemian carp.

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Dura Automotive Portugal Dura Automotive CZ, s. r. o. cmponents for the www.duraauto.com Portuguesa Lda automobile industry Leifheit AG Germany BTF Blatná, s.r.o. textile industry www.leifheit.de Stark B.V. Netherlands Fezko Strakonice, a.s. textile industry www.fezko.cz Flofence et Peillon France Metal Progres, s.r.o. light alloy products www.metalprogres.cz Meyster S.P.A. Italy Meyster CZ, s.r.o. plastics www.meyster.it

Tábor Tábor District

Tábor District is situated on the E 55 BRIEF STATISTICS Městský úřad Tábor international road. The main sectors are Indicator District Region (Tábor Municipal Office) engineering, the chemical industry, Area (in sq. km) 1 327 10 057 Žižkovo nám. 2 electrical engineering, and the food, Population 102 217 627 766 390 15 Tábor textile, and building material industries. Inhabitants (sq. km) 77 62 Czech Republic The biggest town is Tábor (www.tabor.cz), Average monthly which is inhabited by 36% of the phone: +420 381 486 111 wage (in EUR) 570 592 District’s population. Tábor is the second fax: +420 381 486 101 Unemployment rate (in %) 6.7 6.9 largest town of the Region after České e-mail: [email protected] Source: Czech Statistical Office (as of 31 December 2005) www.tabor.cz Budějovice in terms of the number of Note: EUR 1 = CZK 29 (as of 31 December 2005) inhabitants.

SELECTED FIRMS Name Based in Sector Contact Jihočeské dřevařské závody, a.s. Soběslav woodworking www.jdzsob.cz INTEM, s.r.o. Tábor electronics www.intem.cz Jitona, a. s. Soběslav furniture www.jitona.cz Fert, a.s. Soběslav metal production www.fert.cz Atal, s.r.o. Tábor electronics www.atal.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact ELK Fertighaus Austria ELK, a. s. log structures www.elk.cz Intersnack GmbH Germany Chi-Bohemia, a. s. food industry www.intersnack.cz Fincogest SA Switzerland Kovosvit, a.s. machine tools www.kovosvit.cz

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High Level of Czech Interior Design

The work of contemporary Czech CURRENT TRENDS functional interior (or exterior) for designers continues on from the AND THE FUTURE a particular user or user group or The quick pace of the modern lifestyle, the a particular company must be preceded by work of world-renowned masters necessity to stay alert at all times, to take a phase of rigorous study of the activities of the 19th and 20th centuries, in information quickly, to master new that are to be carried out in the given such as Adolf Loos, born in Brno, technology at work and to operate space, of the users themselves and their and Josef František, born in the a whole number of domestic appliances needs, wishes, lifestyle, habits, and lays great demands on each and every expectations. Consideration must also be small town of Brtnice near individual, regardless of generation. For given to the aspect of health and age. The Jihlava, as well as the interior this reason it is necessary that each interior latest know-how related to medicine, design of the famous Brno villas, is designed in a functional and clear hygiene, new materials and technologies fashion, in order to avoid having to spend is employed in the process of furnishing the style of which ranges from much energy on maintenance. The basic public interiors, shops, offices, banks, art nouveau to the functionalism requirement is that one's living quarters savings banks, hotels, restaurants, of the 1920’s and 1930’s. should help to quickly replenish children’s homes and rest homes for the Contemporary designers find one’s mental and physical strength. Almost elderly, and other buildings. The first and 80 years onwards, the purism of Le foremost aspect also applicable in the case inspiration in significant Corbusier and Gropius’ New Objectivity of individual design of living quarters is to functionalistic buildings and remain a trend and inspiration. For achieve the highest possible satisfaction of interiors, such as that of psychological reasons, another trend is each and every need of the future Zemanova kavárna (Zeman’s based on the nostalgic return to the use of inhabitant. natural materials, to the design of In addition to world renowned Café), (www.zemanka.cz) evergreen furniture, items, and interiors. contemporary Czech designers such as designed by Bohuslav Fuks (Brno The requirement for adaptation of professor Bořek Šípek, professor and 1925), the style of the Brno furniture and interiors to the individual and academic architect Jiří Pelcl, bearer of the momentary needs of users, for a perfection 2006 National Design Prize, architect Bára houses built in connection with of both the whole and the details, and for Škorpilová, who received awards of the the Exhibition of Contemporary conformity to health and safety design centre of the Czech Republic Culture (1928), the Tugendhat requirements leads to the creation of well already as a student, we could also Villa designed by Ludvig Mies thought-through products, to the mention a whole number of designers and furnishing of interiors with fewer fixtures Czech furniture and interior design van der Rohe (Brno 1930), and and fittings and to a higher overall quality. companies. the Müller Villa, designed by Adolf Loos (Prague 1930). AESTHETICS, BEAUTY, A HANDFUL OF EXAMPLES FUNCTIONALITY, AND THAT SPEAK FOR ALL INDIVIDUALITY – The way to a man’s heart is through his The design of a beautiful and yet perfectly stomach, the kitchen is the heart of the family (NADOP is an example of significant Czech manufacturer - www.nadop.cz). The kitchen is fitted with a family table and comfortable chairs. To allow for the future expansion of the family, architect Hynek Maňák (studio MANIAC - www.maniac.cz) has designed an interior fitted with an EPULUM extendible table that allows the comfortable dining of up to 14 persons. – I Czechs are rediscovering the need for a high quality of rest and sleep, the charm of falling asleep in a beautiful bedroom, in a comfortable bed designed for healthy sleeping (ASON interiér, s.r.o. (Aspena bedroom) - www.ason-int.cz/). – Upholstered seating is the centre point of every interior (ASON interiér, another manufacturer is, for instance, POLSTRIN design spol. s r.o. - www.polstrin.cz/). This upholstered furniture is well designed and well manufactured at first glance. The beauty of its shape, upholstery fabric, level of workmanship of details and of the Upholstered suites (ASON interier) whole are all very impressive. Once seated Photo: the archives author’s

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of knowledge through study at a number of specialised schools. The Design Centre of the Czech Republic helps regularly to discover new talents by organising competitions such as the Student Design competition or Czech Chair competition. Moreover, in association with the manufacturers of materials, intermediates and furniture, the Design Centre organises ad hoc ABSINT 40 table from the MANIAC atelier theme competitions aimed at creating a particular product, piece of furniture, or, for – given that upholstery fabrics are chosen instance, a set of ceramic tiles wisely – this seating will act as a soft and (Chlumčanské keramické závody ceramic secure lap, a place one chooses to read, to works - www.chkz.cz), chairs (TON – watch television, and to spend leisure time www.ton.cz) or kitchens (Koryna- in conversation with friends. www.korany.cz).

THE FOUNDATION OF STUDENT DESIGN Koxy armchair by Jan Čtvrtník SUCCESS = TALENT + HARD For several years now, the Design Centre WORK + PROFESSIONAL of the Czech Republic has been organising QUALIFICATIONS a competition in Student Design, the Luhačovice – www.mminterier.cz/). The To make good furniture and to create purpose of which is to award prizes for jury was impressed by its skeleton frame, a comfortable functional interior is designs created by secondary school and the subtle tectonics of which only further a demanding task that requires ideas as university students with no division by accent the high quality of craftsmanship, well as knowledge. Talent rarely wins category. In 2006, the main prize was allowing a multicolour combination of recognition in the absence of special awarded to Jan Čtvrtník for his materials suitable for both public and know-how. In the Czech Republic, future upholstered furniture set entitled KOXY residential interiors. designers can acquire a solid foundation (manufactured by MM interiér of An excellent conclusion to studies and excellent way to enter into the profession is to submit a diploma or graduate work elaborated theoretically and subsequently manufactured by the submitter. In 2006, the Higher Professional School in Volyně, which focuses on the study of furniture manufacture and the design of interiors, commended the graduate work of Dušan Vondráček on the following topic: Design of living quarters for a blind person and his/her guide dog. In addition to an ideal design (computer animation using illustrations), the work was also of practical significance for the visually impaired. The student designed and manufactured (with the help of a furniture company) furniture and fittings for a one- room flat intended for a married couple - a healthy man and a visually impaired young woman who works actively using a personal computer.

Helena Prokopová Guild of Upholsterers and Decorators Bedroom interior by ASON interier, s.r.o. www.volny.cz/cech_cal/ Photo: the archives author’s

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Design, Image, Quality

The Excellent Product of the Year 15 of these 2006 national design projects received the Good Design competition is among the oldest Award, 11 projects craft competitions to be held in received the Excellent the Czech Republic in the area of Design Award, and one project was awarded the design. Its origins date back to National Design Prize the year 1964. Since 1991, it is 2006. This top prize organised by the Czech went to Jiří Pelcl for his design of the VICENZA Republic’s Design Centre. This beverage glass set. year, the jury assessed a total of 130 projects – 27 of which were BEAUTY LIES selected for an award in one of IN SIMPLICITY VICENZA is manu- the three categories. factured by Crystalex Nový Bor. It was awarded the main prize Universal hospital bed manufactured by Linet thanks to the simple, clear and consistent a distinctive contemporary style of approach of its designer. This beverage beverage glass. The designer’s work is glass set is an example of a successful characterised by a sensitive approach to concept applicable in automated the use of simple shapes, which work very well when applied to the laws of glass- production, at the same time representing Photo: Design Centre

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making technology and are a necessary prerequisite of automatic mass production. The other prize-winning products were, generally speaking, highly diverse, ranging from porcelain sets to objects intended for sportsmen, the admirers of interior design, and even included products with a technological focus. Of these, Image, a universal hospital bed designed by Jiří Španihel, and Stretcher Sprint, a transport bed designed by Ivan Dlabač were among those products that captured the attention of the jury. In addition to the high quality of design of both these products manufactured by Linet of Slaný, the jury also "praised" the concept of a design that would allow the development of a harmonious mutual relationship between the user and the attending medical staff. BARBAR, a professional set of utensils for bartenders designed by Ladislav Škoda and manufactured by Tescoma Zlín in turn VICENZA drinking set represents a comprehensive system of elements of a high functional and aesthetic standard. The designer uses burnished and interior lighting control designed by Milan matted stainless steel, which lends the Knížák (produced by Manufacturer) is a set product an air of precision, at the same of considerably different elements, the time conforming to strict hygiene criteria. vocabularies of which were interconnected The entire product including the holder is by the designer to create a unified deposited in an elegant portable etui that expression. Dynamics is a strong feature crowns the manufacturer’s overall concept here not only in relation to the individual of presenting its products at a global level. elements of the entire set, but also in relation to the company, which is AWARD FOR ECO-FRIENDLY experiencing a dynamic development. DESIGN Target customers may choose from six The system of new generation electronic variants of design, which offer a wide

System of the new generation of electronic control of lighting

variety of shapes and finishes of handles and electronic controls, preserving at the same time all the original features of the design as a whole.

For more information, see The BARBAR tools for barmen www.designcentrum.cz Photo: Design Centre

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