PROTECTED PRODUCTS OF THE CZECH REPUBLIC ECONOMIC PRIORITIES OF THE CZECH PRESIDENCY EVENTS OF WORLD STANDARD

THE CZECH REPUBLIC TO PRESIDE OVER THE 01-02 COUNCIL OF THE EU IN THE FIRST HALF OF 2009 2009 CZECH BUSINESS AND TRADE

Czech Business and Trade

Economic Bi-monthly Magazine with  a Supplement is Designed for Foreign INTRODUCTION Partners, Interested in Cooperation Questions for the Prime Minister of the Country Presiding with the Czech Republic over the European Union 4

Issued  EU COUNCIL PRESIDENCY by PP AGENCY s.r.o. as an exclusive commission Economic Priorities of the Czech Presidency at the Time of Global Financial Crisis 5 for the Ministry of Industry and Trade of the Czech Republic  ECONOMIC POLICY EDITORIAL BOARD: Support for Small and Medium-sized Enterprises in the Czech Republic 7 Milan Hovorka (Chairman), Ivan Angelis, Zdena Euro Adoption Must Be Advantageous for Both the Citizens and the Economy 9 Balcerová, Růžena Hejná, Josef Jílek, Zdeněk Kočárek, Tomáš Kopečný, Marie Pavlů, Pavla  Podskalská, Josef Postránecký, Libor Rouček, INVESTMENT Jiřina Semanová, Jiří Sochor, Jarmila Škvrnová Experience with Doing Business in the Czech Republic 11

MANAGING EDITOR:  KALEIDOSCOPE Petr Kamenický Finance Minister Wins Award for Reform Eff ort 12 EDITORS: CNB to Publish CZK/EUR Exchange Rate Forecast 12 Jiří Bouzek, Jaroslava Bradová Hyundai Launches Car Production in the Czech Republic 12 The Czech Republic Has the Prize-winning Banknote of the Year 13 REGULAR COLLABORATORS: Eva Tomášková Prominent Czech Entrepreneurs Receive Awards 13 More Funds for Small and Medium-sized Enterprises 13 TRANSLATION: Vlasta Benešová, Alena Kenclová, Robert  BUSINESS AND PRODUCTION Krátký, Lucie Pavlíčková, Dagmar Šímová, Protected Products of the Czech Republic 15 Halka Varhaníková READ:  CZECH TOP Mathew Booth, Pearl Harris, Ivana Kadlecová, The Longest Railway Tunnel Documented by a Czech Software System 19 Zuzana Pavlíčková FIDES Is Expanding to Foreign Markets 19 GRAPHIC DESIGN: Art Director: Nina Nováková  SERVICES Graphic designers: Romana Holíčková, Jiří Hetfl eisch Events of World Standard 21 Production: Tamara Machotová, Anežka Zvěřinová  DEADLINE: 23/11/2008 REGION Liberec Region 24 – 34 © PP Agency Company with the ISO 9001 certifi ed quality  PRESENTATION OF FIRMS management system for publishing services Amest s.r.o.; FAB, s.r.o.; FEBA Trade Services, s.r.o.; ifm electronic, spol. s r.o.; ADDRESS: M.I.P. Advertising, a.s.; MSV SYSTEMS CZ s. r. o.; PRECIOSA, a.s.; Pro - Tex s.r.o. Myslíkova 25, 110 00 Praha 1, Czech Republic Phone: +420 221 406 623, +420 221 406 626 Fax: +420 224 930 016 e-mail: [email protected] www.ppagency.cz, www.mpo.cz/en/minis- CZECH REPUBLIC PRESIDES OVER EU COUNCIL ter-and-ministry/ministry/default.html In January, the Czech Republic became the country Press run: 13.500 copies. The number of printed and presiding over the Council of the European Union sold copies of the journal is verifi ed by auditor, HZ for the fi rst half-year. During the Presidency, some Praha, s.r.o., member of PANNELL KERR FORSTER Worldwide. It is not allowed to reproduce any part 30 000 delegates from the whole EU will come of the contents of this journal without prior consent to the Czech Republic. More than 600 cultural from the editor. Attitudes expressed by the authors fringe events will be held during that period, of articles carried by CBT need not necessarily be 100 of them in the Czech Republic and the rest consistent with the standpoint of the Publisher. MK in other countries. The Czech Presidency was ČR E 6379, ISSN 1211-2208 „Podávání novinových launched with a ceremonial opening at the Na- zásilek povoleno Českou poštou, s. p., odštěpný tional Theatre in Prague on 7 January. The Czech závod Přeprava, č. j. 3468/95, ze dne 24/10/1995“ Republic started preparations for its Presidency in 2006. More information on the Presidency is avail- Cover photo: ČTK able at www.eu2009.cz.

3 | INTRODUCTION Questions for the Prime Minister of the Country Presiding over the EU Council

lation of the world fi nancial system. It The beginning of the Czech Presidency was will be our task to coordinate the eff orts marked not only by the confl ict in Gaza, of the EU and other countries and to evalu- but also by the shutting off of gas supplies ate the impact of anti-crisis packages. Our from the Russian Federation to Europe… concern will be to ensure that all acute ac- As regards Gaza, it is a chronic problem, tions be based on co-operation and the free the solution of which does not rest only market principles. From the medium- and in EU hands, and must be tackled jointly long-term point of view, we shall be pushing with other actors – the USA, Russia, and for structural reforms in the framework of the regional players. We immediately sent an Lisbon strategy. If we manage to take advan- EU mission to the region of conflict, had tage of the crisis for carrying out the long- a number of difficult talks and insist that delayed reforms, Europe can emerge from the EU should play a more active role in the situation stronger and more competitive, this conflict. more resistant to any potential shocks in the The situation around the gas supplies is future. critical. We have achieved a nearly imposs- ible thing; we managed to mediate an agree- What contribution can the Czech Republic ment between Russia and the Ukraine, which Mirek Topolánek make to help settle the fi nancial crisis in facilitated the renewal of deliveries. Regretta- the EU framework? bly, complications arose, and at the time I am First and foremost, we can off er our experi- giving this interview, gas is still not fl owing ence in settling the crisis of the fi nancial sec- and the two sides continue to accuse and tor in the late 1990s. Thanks to its stabilisation blame each other. The talks must go on. Nev- and improved central bank supervision, the ertheless, the reactions of the other EU states Czech Republic was one of very few countries and the European Commission indicate that which had no need to pour money into banks we are coping with the Presidency and that during that crisis. Also, we can serve as an ex- regardless of the complicated situation at ample in managing our economic aff airs. In home we are ready for action and capable to 2008, we saved more than EUR 2 billion, so react promptly to problems. that today we have prompt money available, which, in case of need, can be used to ease What do you think about the reaction the impact of the crisis without our becoming of the Czech public to the country’s excessively indebted. And thirdly, together Presidency? with other countries, we shall push forward I understand that 80% of the Czech popu- our liberal approach, as we are persuaded that lation is informed about the Czech Presi- the crisis was caused primarily by unnecessar- dency and I hope that in six months it will Mr Prime Minister, the Czech Republic is ily massive state interventions and protection- be a full 100%. Knowing that 60% of the taking over EU Presidency at the time of ism, not by their lack. Czech population believe in our success a world crisis. In what direction will your is a challenge for me. Six months of Czech government take its steps? The Government of the Czech Republic Presidency is a great opportunity for Czech Dealing with the consequences of the crisis has established the National Economic people to come to understand the mech- will be the most important task of our Presi- Council, the aim of which will be to pre- anisms of EU functioning, to get an insight dency. The essential thing is to avoid any pare measures that will help face up to the into its background, to see the advantages hasty action, especially action that would in- consequences of the global fi nancial and and disadvantages. At the same time, they terfere with the rules of fair competition. The economic crisis. What mandate will the may fi nd reasons for being proud of being most powerful instrument to overcome the National Economic Council have in rela- Czech. Moreover, our Presidency is taking crisis is the EU common free market. During tion to the Czech Presidency? place not only in the year in which we shall our Presidency, the European Recovery Plan, The Government National Economic Coun- mark fi ve years since the Czech Repub- which the European Council adopted at the cil has no direct competence in relation to lic joined the EU, but also twenty years end of 2008, will be worked out in detail. In the EU. Nevertheless, taking into account its since the fall of the iron curtain and sixty keeping with our ideas, the plan places em- set-up comprising top specialists in the area years since the establishment of NATO. It phasis on the support of small and medium- of business, the academic sphere and the fi - is a good opportunity to recall that after sized enterprises, investment into infrastruc- nancial world, it will be a useful consulting gaining freedom we became members of ture and the elimination of the bureaucratic body not only as regards the Czech econo- Euro-Atlantic institutions and that today burden for companies. In April 2009, the G20 my, but also Euro- we are prepared to lead suc- will meet in London to check the progress in pean and global Latest information about the cessfully the community of 27 tackling the issues of transparency and regu- issues. Czech Presidency can be found proud free nations. at www.eu2009.cz.

| 4 CZECH BUSINESS AND TRADE Economic Priorities of the Czech Presidency at the Time of Global Financial Crisis

The Czech Republic assumed the EU  ECONOMIC PRIORITIES services. A study by the European Commis- Council Presidency for six months on The Czech Presidency is placing the sion in November 2008 clearly demonstrated utmost emphasis on economic priorities. As that the infl ux of workers from “new“ Mem- 1 January. These six months will be a country with the highest share of industrial ber States in no way jeopardised the labour very complicated, as the European production in GDP, the Czech Republic has markets of “old“ Member States. and world economies, plagued by much to off er in this area. Notwithstanding the present fi nancial crisis, the Czech Repub-  FREE MOVEMENT OF SERVICES a fi nancial crisis, require great atten- lic ranks among the fastest growing coun- Services have a high growth potential and are tion. Thus, on 26 November 2008, tries in Europe. The growth of its third-quar- increasingly becoming the object of interna- the European Commission issued the ter 2008 GDP amounted to 4.7%, which is tional trade, and therefore should be further an outstanding performance within the Eu- liberalised. A key instrument in services liber- European Recovery Plan, which espe- ropean Union. Export plays the crucial role, alisation is the Directive on Services in the In- cially includes short-term measures despite its slowdown caused by the fi nancial ternal Market, which was adopted at the end intended to mitigate the impact of crisis on the European and world markets. of 2006 and which Member States have to Thus, it is no surprise that the top priorities implement until the end of 2009. The Directive the fi nancial crisis and prevent it from of the Czech EU Presidency are strengthen- is to eliminate existing barriers and enable the spreading to further industrial sectors. ing the competitiveness of Member States free movement of services within the EU inter- These measures will be implemented and their performance in global competi- nal market. It provides for both the establish- tion, a liberal trade policy and the implemen- ment and temporary cross-border provision of particularly during the Czech Presiden- tation of the four basic freedoms of the EU, services. An important subject for the Czech cy. Besides the fi nancial crisis, the six namely the free movement of persons, ser- Republic is also an improvement in the regula- “Czech months“ will include the end vices, capital, and goods. The present fi nan- tory environment, especially for small and me- cial crisis provides an opportunity of achiev- dium-sized enterprises, which are burdened of the European Parliament mandate ing a still greater liberalisation of economy the most with administrative duties. The high and the approaching conclusion of and trade, and of resisting the growing at- administrative burdens and the extent of regu- the mandate of the present European tempts at greater protectionism. The same lation in the European economy are often re- conclusion, i.e. the prevention of greater pro- garded as some of the main factors negatively Commission. This complicates the tectionism because of the fi nancial crisis and aff ecting the potential and competitiveness of adoption of any legislative measures. endorsement of an open market economy, the business sector. Member States have thus The Czech Presidency of the EU Council was adopted by the participants in the G20 undertaken to reduce administrative burdens meeting in Washington last November. by 25% by the year 2012. During the Czech is thus a great challenge for the Czech Presidency, the European Commission will is- Republic and the whole EU and, at the  EUROPE WITHOUT BARRIERS sue a report reviewing the progress made by same time, an opportunity to em- Intensifi cation of the internal market is the Member States in this eff ort. main interest of the Czech Presidency and, phasise and push through economic at the same time, an important aspect for  EDUCATION, RESEARCH, priorities. achieving EU competitiveness. Harmonis- AND DEVELOPMENT ation of the rules of the internal market of the The Czech Republic ranks innovation and new 27 Member States will bring advantages for technologies, which depend mainly on educa- all of them. The Czech Republic realises the tion, research, and development, among the importance of competition and liberalisation basic economic challenges of the European in the public service sectors (power and gas Union. Development of new technologies is supplies and telecommunication and postal essential to carrying on a strong and sustain- services), both for companies and consu mers. able industrial policy. It can be expected that, The potential profi t from liberalisation in within 10 to 15 years, Echo-technologies will these areas is estimated at least at 1.5% to 2% play a role in the economy similar to that of of EU GDP. The motto of the Czech Presidency Information Technologies at present. is “Europe without Barriers“. This means with- out barriers in the free movement of persons  ENERGY SECURITY and services, without trade and bureaucratic As presiding country, the Czech Republic will barriers, without barriers to entrepreneurs, to pay increased attention and eff ort to the en- citizens. The Czech Republic, reacting in this ergy sector with a view to implementing the way to the present situation in the EU, sees basic long-term goal – that is sustainable, ef- the main barriers as the transitional restrictive fective, and secure energy production. A key measures on the free movement of workers theme for the Czech Presidency is ensuring and the cross-border provision of specifi ed energy supplies’ security. The Czech Presiden-

5 | EU COUNCIL PRESIDENCY

cy will pay attention not only to the foreign also have to pay increased attention and ef- Economic Council and with Canada by con- policy aspect of energy supplies to the EU fort to the co-ordination of research and dev- cluding a Free Trade Agreement. The Czech from third countries, but also to the technical elopment in the energy area. Presidency will continue to support the solution of linking the networks. The theme of strengthening and stabilisation of countries in energy supplies’ security in the contemporary  ROLE OF EUROPE IN THE WORLD the Western Balkans, conduct accession talks unstable global environment is closely linked Besides internal European aff airs, priorities of with Croatia, and foster closer co-operation to raw material prices. The price of oil is a typi- the Czech Presidency include the strengthen- with the countries of Eastern Europe within cal example. At the beginning of 2007, a barrel ing of Europe’s role in the world. The Czech Re- the European Neighbourhood Policy. Impor- of oil sold for USD 50, in the middle of 2008 it public, which belongs to the liberal countries tant themes will include EU–Russia relations exceeded the price of USD 147, and at the end group, will work during its Presidency towards in the area of energy supplies security and of 2008, it returned to USD 50 per barrel. the maximum liberalisation of world trade. economic co-operation. It will be our task during the Czech Presi- A more competitive and more open Europe is China, next to the USA, has been the EU’s dency to complete negotiations on a legisla- the best choice for the globalised and com- largest non-European trade partner since tive package, setting the rules for the internal petitive world. This is why negotiations mainly 2002. The Czech Republic will launch prepar- gas and electricity market that should en- within the WTO should be conducted with ations for an EU–China summit, which will be sure greater liberalisation in the branch and the intention of achieving the result of an EU held in the second half of 2009. The main in- thus enhance the competitive environment. market more open to imports from develop- terests of the Czech Presidency are economic The second basic task in the energy area will ing countries and vice versa. Besides that, the issues and the protection of intellectual prop- be the adoption of an energy-climate pack- Czech Presidency will be greatly interested in erty. The Czech Republic embraces the posi- age, which will include the defi nition of goals the broad implementation of a revised mar- tion that the EU should actively negotiate in the use of renewable energy sources, set ket access strategy. We will support the part- also with Africa, where it has to compete for the rules for emission allowances trading and nership being prepared between EU bodies, markets with China. Regarding EU–Africa rela- geological carbon storage. However, strin- Member States‘ economic diplomacies and tions, the Czech Republic favours the conclu- gent environmental objectives in the area of the business sector in the process of the eff ec- sion of Economic Partnership Agreements. energy-intensive sectors and automobile and tive monitoring and elimination of obstacles air transport must not be established at the in access to third markets. Jan Procházka expense of industry. Europe’s environmental Regarding transatlantic relations, the Czech Director goals not shared by other large non-Euro pean Republic will focus on economic partnership Department of Co-ordination with EU States will decrease our competitiveness on and new mechanisms of co-operation with Ministry of Industry and Trade

the global market. The Czech Republic will the USA in the context of the Transatlantic (e-mail: [email protected]) News Agency archives Czech PhotoCombo, Photo:

| 6 CZECH BUSINESS AND TRADE Support for Small and Medium-sized Enterprises in the Czech Republic

Small and medium-sized enterprises  SUPPORT PROGRAMMES and business, whether by means of additional form an important part of the Czech Programmes of support, adopted in ac- support for science and technology parks, cordance with the above mentioned law by technology transfer centres and business in- Republic’s economy. They account for the Government of the Czech Republic and cubators or clusters which are being set up, 61.4% of employment, 52.6% of book fi nanced from national budget resources or some other way, i.e. founding and support value added, and 44.8% of exports. and EU structural funds, facilitate the access of spin-off fi rms, technology platforms, devel- of small and medium-sized businesses to opment of venture capital and seed capital. They boost competitive dynamics professional consulting, educational, and in- The OPEI, presented at www.mpo.cz, contains in the business sphere. Support for formation services, to fi nancial resources for programmes of support for projects out- small and medium-sized businesses the implementation of development and in- side the territory of the capital city, Prague, novation projects, and assist their entry onto which are fi nanced from the resources of in the Czech Republic is regulated by foreign markets. To aid the implementation the European Regional Development Fund Act No. 47/2002 Coll. on Support for of their business concepts, small and medi- or from the state budget. Calls for submit- Small and Medium-sized Enterprises, um-sized enterprises (SME) can take advan- ting applications for support under the tage in particular of projects that fall within diff erent programmes are published at the as amended by later decrees and the Operational Programme Enterprise and same internet address. relevant regulations of the European Innovations 2007 – 2013 of the Ministry of In- dustry and Trade, approved by the European  OPEI IMPLEMENTATION Commission. Commission and the Czech Government. STRUCTURE Small and medium-sized enterprises can The intermediaries within the OPEI im- also benefi t from other operational pro- plementation structure are CzechInvest grammes which fall under the competence - in the case of 12 grant programmes - and of ministries or regions. These include for Českomoravská záruční a rozvojová ban- example operational programmes Education ka, a.s. – in the case of Start, Progress, and for Competitiveness, Human Resources and Guarantee. Employment, Environment, Regional Oper- Applications for OPEI grants are submit- ational Programmes, Transport, and Research ted and processed in electronic form only by and Development for Innovation. means of an e-account - an electronic system for the registration and processing of appli-  OPERATIONAL PROGRAMME cations for fi nancial support that records and ENTERPRISE AND INNOVATIONS administers all OPEI grants programmes. 2007-2013 Operational Programme Enterprise and In-  OPEI PROGRAMMES DESIGNED novations (OPEI), prepared under the aus- EXCLUSIVELY TO SUPPORT SMALL pices of the Ministry of Industry and Trade, AND MEDIUM-SIZED ENTERPRISES is aimed at boosting competitiveness in the START industry and services sectors, at business The aim of the programme is to enable le- development and at promoting a healthy gal and natural persons entering business for business environment, at support for inno- the fi rst time to carry out their business plans. vation, stimulation of demand for the output Support, in the form of interest-free loans or of research and development, commercial- preferential guarantees with fi nancial contri- isation of the output of research and devel- bution for guaranteed loans, is designed for opment, at support for knowledge-based start-up businesses. economic growth by boosting capacity for the introduction of new technologies and PROGRESS innovated products, including new inform- The aim of the programme is to enable small ation and communication technologies. The and medium-sized enterprises to imple- OPEI objective is to enhance the competi- ment their development business projects tiveness of the Czech economy by the end and thus help increase employment in the of the programme period and to bring the regions. The instruments of support are sub- innovation performance of the industry and ordinated loans or subordinated loans with services sectors level with that of leading in- fi nancial contributions. The programme can dustrial countries of Europe. The OPEI’s chief also be used to support projects for the sup- focus is on directly interlinking the research- ply of power services in the form of prefer- development-innovation-enterprise line, i.e. ential loans or preferential guarantees with on closer cooperation of scientifi c research fi nancial contribution for guaranteed loans.

7 | ECONOMIC POLICY

OTHER OPEI PROGRAMMES WHERE SMALL AND MEDIUM-SIZED ENTERPRISES ARE ELIGIBLE FOR SUPPORT ICT AND STRATEGIC SERVICES technology platforms on the regional and The aim of the programme is to support international level, as a tool to promote GUARANTEE the competitiveness and growth of the ICT competitiveness of the economy and The aim of the programme is to facilitate sector in the Czech Republic, development economic growth. Clusters are territorially the implementation of investment-focused of information knowledge-based society, concentrated sector groups of business SME business projects through preferen- and to improve the availability of inform- entities, research, development, educational tial guarantees and preferential guarantees ation about ICT products. The programme and other institutions whose cooperation with fi nancial contribution for guaranteed also provides support to selected strategic links have the potential to strengthen and loans, thereby increasing their competitive- services closely related to information and enhance their competitiveness. Technology ness. Preferential support can be obtained communication technologies and those platforms are established by linking the pub- with signifi cant international links. lic and private sectors through research and for projects of small entrepreneurs in regions Support is provided in the form of grants development in strategic technological with concentrated state support. to business entities, especially small and areas with the objective of creating a strate- medium-sized enterprises. gy of technological development, increasing DEVELOPMENT competitiveness, and economic growth. The aim of the programme is to increase the ECOENERGY Support is provided in the form of grants for competitiveness of small and medium-sized The aim of the programme is to bring entre- support benefi ciaries. enterprises by providing support to tech- preneurs to reduce the energy intensity of nology-oriented projects in regions with production, consumption of primary energy PROSPERITY high unemployment rates. This support is sources, and make greater use of renewable The aim of the programme is to stimulate in tended for the implementation of projects and secondary energy sources. the founding of business incubators, science with a growth potential and projects helping Support is provided in the form of a grant or and technology parks and technology trans- subordinate loan with fi nancial contribution. fer centres as infrastructure for the founding to bridge regional gaps. Support, in the form and development of small and medium- of grants, is designed for small and medium- INNOVATION sized innovation fi rms. Support is provided sized enterprises. The aim of the programme is to enhance the in the form of grants to business entities innovation potential of the business sector – operators of science and technology parks CONSULTANCY through grants for the implementation of or business innovation centres. The aim of the programme is to improve the business innovation projects, especially quality and availability of information, con- those of SMEs, and to support projects for TRAINING CENTRES sulting and educational services for small and the protection of intellectual property of The aim of the programme is to stimulate medium-sized enterprises. The programme small and medium-sized enterprises and the creation of well-equipped training cen- is focused on support for consulting services universities. tres and thus ensure a broad base for educa- for small and medium-sized enterprises and tion, personnel, and other activities related POTENTIAL to human resources development. Support support for information, consulting, and edu- The aim of the programme is to boost the by means of grants is intended for business cational services in the regions. Support, in development capacities of enterprises, entities, as well as self-governing territorial the form of grants, is designed for small and strengthen cooperation between enterprises units, research institutes, and tertiary educa- medium-sized enterprises. and research and development institutions, tion institutions. increase the number of businesses carrying MARKETING out industrial research and development, REAL ESTATE The aim of the programme is to increase the and improve the quality of R&D. Support is The aim of the programme is to stimulate international competitiveness of compa- provided in the form of grants to business the creation and development of business nies by promoting marketing information, entities, especially small and medium-sized real estate, including related infrastructure, promotional material, individual and joint enterprises. and thus help to promote a functioning real participation at trade fairs and exhibitions estate market and improve the investment COOPERATION and living environment. This project follows abroad. The programme backs intensifi ed The aim of the programme is to provide up a former real estate programme. Support marketing preparation of enterprises and support for establishing and development is provided in the form of grants to business the expansion of their activities on foreign of cooperating groups, i.e. clusters, and entities and self-governing territorial units. markets. Support, in the form of grants, is designed especially for small and medium- sized enterprises. of grants, is designed for small and medium- port must be aware that it is the place of the sized enterprises. project’s implementation which is decisive, not ICT IN ENTERPRISES the place of the applicant’s seat. The OPEI can be The programme supports promotion of The complete wording of the programmes used to support projects implemented outside competitiveness of small and medium-sized is available on the websites of the Minis- the territory of the capital city, Prague. enterprises via a qualitatively higher use of try of Industry and Trade, CzechInvest, and their potential in the acquisition and expan- Českomoravská záruční a rozvojová banka. The Jaroslava Kubů sion of information systems and by improv- current list of calls and deadlines for submission of Ministry of Industry and Trade ing the quality of information systems infra- applications for support from OPEI programmes (e-mail: [email protected])

structure in businesses. Support, in the form is available at www.mpo.cz. Applicants for sup- www.mpo.cz PhotoCombo Photo:

| 8 CZECH BUSINESS AND TRADE Euro Adoption Must Be Advantageous for Both the Citizens and the Economy

The adoption of the euro is one of  THE DATE HAS budgets are below the required 3% limit, NOT BEEN SET this does not signify an improvement of the the commitments resulting from the Presently, there is no fixed date for the structural characteristics of the budget en- Czech Republic’s membership of the adoption of the euro by the Czech Repub- suring the long-term sustainability of pub- European Union. As in the case of any lic. The date will be fixed definitely by the lic finance. The assessment of economic other EU state, the condition for the Government and it will be derived from analyses indicates a gradual improvement the preparedness of the Czech Republic to of the functioning of the Czech economy Czech economy to join the Euro Area becoming a member of the Euro Area. The and a number of factors speak in favour of is attaining a high degree of sustain- Government deals with this issue in the adopting the euro – such as the already able convergence, which is measured autumn of each year. An important docu- high and still broadening openness of the ment for its decision-making is the “Assess- Czech economy, commercial entwining by convergence criteria. These criteria, ment of the Fulfilment of the Maastricht with Euro Area states, the stability of the also known as the Maastricht criteria, Convergence Criteria and the Degree of banking sector, and the advancing process can be divided into budgetary and Economic Alignment of the Czech Repub- of real convergence. Nevertheless there lic with the Euro Area”, prepared by the are still areas where no improvement has monetary. While budgetary criteria Ministry of Finance and the Czech National taken place and which hinder the ability of fi x the ratio of government defi cit and Bank. The document reviews the current the Czech economy to adjust to potential public debt to gross domestic product, state of the country’s meeting the conver- negative economic disorders – the report gence criteria and the prospects of meet- mentions in particular the inadequate role monetary criteria are concerned with ing them in the future, as well as the ability of stabilisation fiscal policy and continuing the infl ation rate, the interest rate, and of the Czech economy to operate within inflexibility of the labour market. exchange rate stability. A necessary the Euro Area, based on the assessment Instead of a rapid adoption of the euro, of the harmonisation of the Czech econ- the current Government, headed by Mirek condition is the sustainability of those omy with the Euro Area. The expectations Topolánek, prefers to first carry out the criteria and their observance over for the year 2008 are that in view of infla- much needed domestic reforms that will a certain period of time. tionary pressures caused by indirect tax facilitate making full use of the advantages changes and other factors, the price stabil- of the common currency. These reforms ity criterion will not be met. Another set- are primarily the reform of the pension back is the non-observance of the public and healthcare systems that will ensure finance criterion, where, although the the long-term sustainability of public fi- nance and a successful stabilisation of the country’s fiscal policy after the power to exercise an autonomous currency policy will be transferred from the Czech National Bank to the European Central Bank.

 EURO ADOPTION SCHEDULE The government decision on the date of joining the single currency system will be followed by three essential steps: the Czech crown will be incorporated in the ERM II exchange rate mechanism for a minimum of two years. This step will be taken as soon as it becomes clear that the Czech Republic is meeting the Maastricht criteria as, in view of the character of the Czech economy – a small, open, and con- verging economy – participation in the ERM II exchange rate mechanism involves certain risks. The optimum strategy for meeting the Maastricht exchange rate cri- terion is to stay within the mechanism for not more than an indispensable period of time. The second phase of joining the single currency system will start with the announcement by the European Council

9 | ECONOMIC POLICY

More information about the of the conversion rate in the form EUR 1 steps to be taken dur- introduction of the euro in the the schedule of tech- = CZK XX.XXXX. Within a month of the an- ing the process. This Czech Republic can be found at nical, organisational, nouncement of the rate at the latest, most will make it possible www.mfcr.cz and legislative steps, economic entities will be obliged to state for all to prepare for which are essential the prices of their goods and services in the adoption of the new currency well in for the smooth transition to the new cur- both the crowns and euros for consumers advance so as to avoid problems and re- rency. Work is currently in progress on to get used to the value of the new cur- duce the costs. For this purpose, the basic documents dealing with more specific rency. The third step is the actual adop- institutional structure has been created, areas. They involve the timetable and the tion of the euro, which will take place in which is headed by the National Coordina- fundamentals for the “umbrella law” on accordance with a scenario approved by tion Group for the Adoption of the Euro in the adoption of the euro, guidelines on the Government. This scenario, also re- the Czech Republic. It is a central co-ordi- rounding and smoothing of prices, meth- ferred to as the Big Bang, envisages the nation and control body consisting of the ods to prepare small and medium-sized simultaneous introduction of the euro National Coordinator, a member of the enterprises for the adoption of the euro, in both cash and non-cash circulation. CNB Bank Council, deputy ministers whose recommended procedures for dual mark- The first fourteen days are referred to as ministries are most concerned with the ing of consumer prices, etc. a dual circulation period. Businessmen adoption of the euro (i.e. Ministry of Indus- will be obliged to accept payments in try and Trade, Ministry of Foreign Affairs, The principles of introducing the euro both crowns and euros, but they will only Ministry of Justice, Ministry of the Interior) in the Czech Republic are well known, in- be allowed to return euro banknotes and and the Deputy Prime Minister for Euro- cluding the two-week period of the dual coins, whereby the original currency will pean Affairs. The National Coordination circulation of both currencies. Other prin- be gradually withdrawn from circulation. Group has six working groups concerned ciple is the continuity of legal instruments, Even after that period, citizens and busi- with specific tasks. They are: which means that the introduction of the nessmen will be able to change Czech  Working Group for Legislation euro cannot be reason for changing or crowns to euros in banks.  Working Group for the Financial Sector terminating any contract. In connection  Working Group for Informatics and with the introduction of the euro it will be  THE CZECH GOVERNMENT Statistics necessary to convert all amounts stated in STAKES ON BEING WELL  Working Group for Public Finance and crowns into euros, which will be done ac- PREPARED Public Administration cording to the rules for the conversion and The adoption of the euro is a demanding  Working Group for the Non-financial rounding-off of amounts of money using process, which, in addition, is rather costly Sector and Protection of Consumers the official conversion coefficient. and requires thorough preparation. The  Working Group for Communication. experience of states which adopted the Vilma Dingova euro before us shows that the preparations Current preparations are taking place Office of the National must start well in advance. That is why the on the basis of the National Plan for the Coordinator for the Introduction Czech Republic, too, has taken measures Adoption of the Euro approved by the of the Euro in the Czech Republic, to acquaint ordinary people, business- Government. The document approved in Ministry of Finance men, and public administration with the April 2007 comprises a description and (e-mail: [email protected])

Entry to euro area Decision "BIG BANG" End to abrogate End of dual of dual display of derogation circulation prices Scriptural payments CZK € € Cash payments CZK CZK € CZK € Display of prices CZK € € CZK € CZK € PRE-PREPARATION PREPARATION POST-CHANGEOVER PHASE PHASE PHASE Dual circulation

Dual display of prices Source: Ministry of Finance of the Czech Republic Photo: editorial archives Photo:

| 10 INVESTMENT

Experience with Doing Business in the Czech Republic

Horizons Language Jobs is Prague‘s Why did you choose the Czech Republic in particular for fi rst company specialising in fi nding doing business? the right job for English and other Having moved to Prague in October foreign language speakers of both 2000, I originally came to stay for a six month- to one-year period. During Czech and non-Czech nationality. this time, I realised the huge potential Their clients are mainly Shared Service both in terms of doing business and Centres, Business Process Outsourcing having a better quality of life and so I decided to stay on long term and Companies, International Customer create a company. So far I can truly Contact Centres, and mid- to large- say that my only regret is not having sized international companies with moved here earlier! The economy in the Czech Repub- centralised departments. lic has historically been booming and even with the current global fi nancial Our questions have been answered crisis still shows a three per cent in- by Sinclair David Crawley, crease, this fact coupled with many ma- CEO of the company. jor internationals choosing Prague as a prime location for centralised offi ces supporting their operations through- out Europe (in many cases, Europe, Middle East, and Africa) infl uenced my decision to do business in this country.

Can you tell me your views on the quality of the employment mar- ket in the Czech Republic? What attracts people and companies to come here? Prague is arguably one of the most Sinclair David Crawley, Prague Castle beautiful cities in Europe and due to the in the background buoyant economy, in relation to other countries currently, still continues to offer This brings multiple benefi ts for new investors a thriving job market with a ready pool of coupled with the Czech Republic’s strategic talented individuals, from fresh graduates location in the heart of Europe and the obvi- to top level managers. ous cost saving benefi ts for new investors. These points amongst many others make it a highly attractive place to live and What special piece of advice would you work for many different nationalities from have for an entrepreneur from your around the world and an excellent hunt- country who plans to start a business on ing ground for companies looking for new the Czech market? experienced and qualified employees. After having lived in Prague for close on 8 years now, my key advice for any entrepre- As a businessman, how do you rate the neur considering starting a business on the business environment in the Czech Re- Czech market is to network extensively. Es- public in general? pecially for small/medium-sized businesses Having gained EU membership on 1 May or those going through the start-up phase, 2004, Prague especially has become an the old saying it is “not what you know but extremely multicultural city with a healthy who you know“ is absolutely true. Prague level of non Czech-speaking expatriates business world and the expat community mixing in with the local community. is extensively networked and the friendly As a result, increasingly so, English is being open environment makes it easily possible used as the common business language to make extensive contacts. Personally, which is helping the working culture and I will never leave my home without my business style to become more westernised. business cards!

11 | KALEIDOSCOPE

2008 Minister of Finance of the Developing European Economies, Miroslav Kalousek

Elmarco – 3rd Millennium Technology

Elmarco, a world leader in the production of machines for the manufacture of nanofi bres, opened a new research, development and pro- duction centre in January 2009. The complex in Liberec, the only one of its kind in the world, oc- cupies two stories with an area of 3000 sq.m. “The task of the centre is to continue in the development of nanofi bre materials and to extend the possibility of applications of our patented technology, NanospiderTM, which is the only one in the world that off ers industrial production of nanofi bres. It will thus be a base for extending these 3rd millennium technolo- gies“, said managing director of the company Finance Minister Wins Award for Reform Eff ort Ivan Konečný. Participants in the research and innovation Czech Finance Minister, Miroslav Kalousek, on and intensify them“, Minister Kalousek activities at the new development centre will has been named the 2008 Finance Minister said. Every year, Emerging Markets evaluates include both Czech and foreign universities. In- of the Year in the area of emerging Euro- the development of public fi nances in coun- volved among domestic academic and scientif- pean economies. The decision was made tries of emerging European economies and ic institutions will be the Technical University of by Emerging Markets, an international pres- developing countries of Asia, Latin America, Liberec, the Academy of Sciences of the Czech tigious journal, on the occasion of a session and Africa. It also assesses a push for reform Republic, the Institute of Chemical Technology of the Finance Ministers and National Bank leading to stability and the sustainability of Prague, and Charles University. Governors of the World Bank and Interna- public budgets. The prizes are bestowed The centre is also open to cooperation with the tional Monetary Fund Member States in on the basis of a vote by analysts, bankers, commercial sphere. It cooperates e.g. with the Washington. “I am immensely delighted by representatives of fi nancial institutions, and leading worldwide producer of fi ltration sys- the nomination. It represents an award not other experts. Miroslav Kalousek won the tems Cummins Filtration, the Israeli leader in only for me but for the whole Government. award mainly for his eff orts aimed at the fi s- nonwoven fabrics Avgol Nonwoven Industries, It is a signal that Czech reforms are perceived cal consolidation of public budgets in the and with the US company HemCon Medical favourably abroad and that we should carry Czech Republic. Technologies producing medical devices.

CNB to Publish CZK/EUR Exchange Rate Forecast The Czech National Bank (CNB) will start has concluded that a numerical forecast publishing its forecast path for the CZK/ can be published for the exchange rate EUR nominal exchange rate in numerical as well. As in the case of the interest rate form from 2009. The CNB will thus be- path, it can be expected that, with the aid come the only central bank in the world of CNB communication, the published ex- to publish a forecast for a nominal ex- change rate path will be correctly under- change rate vis-à-vis a specific currency stood by the public as being conditional (only a few of the most advanced infla- on the assumptions of the forecast and tion-targeting central banks currently on information available at the time it publish effective exchange rate forecasts). was prepared. New information obtained The purpose of the move is to enhance after the preparation of the forecast, along communication openness and monetary with factors not covered by the CNB fore- policy transparency. Thus far, the CNB has cast, may cause the actual exchange rate disclosed its exchange rate forecast only to deviate from the forecast. A fan chart as a verbal description. However, after as- will be used to describe this degree of sessing the CNB’s almost one-year experi- uncertainty, which is generally high for ence of publishing an interest rate path exchange rate.

consistent with forecast, the Bank Board Forecasts can be found at www.cnb.cz PhotoCombo Ministry Czech and CNB archives, Photo: of Finance

| 12 CZECH BUSINESS AND TRADE

Prominent Czech Entrepreneurs Receive Awards Czech President Václav Klaus has con- The Czech Republic Has the Prize-winning ferred high state awards on prominent Banknote of the Year fi gures of the Czech business sector, Jan Petrof and Josef Podzimek. The two The Czech CZK 1000 note has won the inter- of both design and security features“, said men received the Medals of Merit in the national Best New Banknote Award for 2008. Pavel Řežábek, Chief Executive Director and economic area. Both entrepreneurs had This prize-winning note was put into circula- Board Member of the Czech National Bank. been nominated for the award by the tion in April 2008. Its appearance is very similar The CNB received the award at the 2008 Cur- Czech Republic’s Chamber of Deputies to the previous design, but the banknote has rency Conference in Prague, an international for their successful renewal of promi- updated security features which make coun- meeting of central bank representatives, bank- nent domestic fi rms which had been terfeiting more diffi cult. It is the third award note producers and suppliers of materials for founded by their ancestors. conferred on Czech money since the estab- banknote production. The conference is held lishment of the currency in 1993. “I regard this regularly every 18 months in various parts of JAN PETROF award as confi rmation that the quality of our the world. It was attended by more than 500 Jan Petrof has achieved fame in the banknotes is at the highest world level in terms delegates from almost 80 countries. Czech Republic and the world by pro- ducing pianos of the same brand name. Following the company’s nationalis- ation after the Second World War, he has regained its ownership and restored the tradition of the old Czech family fi rm reaching back to 1864. At present, Petrof is the largest producer of grand and up- right pianos in Europe.

JOSEF PODZIMEK Josef Podzimek is a successful Czech building contractor and entrepreneur, who has devoted his professional life to building production. In 1994, fol- The Czech CZK1000 banknote features a portrait of the prominent Czech historian, lowing the restitution of ownership, he politician, and writer, František Palacký assumed control of the family building company, which is the oldest construc- tion fi rm in the Czech Republic. His More Funds for Small and Medium-sized Enterprises company, called Josef Podzimek, now has successful operations in the con- In 2009, the Ministry of Industry and Trade will struction industry, engineering, wood increase allocations from the resources of the production and trade. Josef Podzimek Operational Programme Enterprise and Inno- is an example of a modern entrepre- vation (OPEI) by two-thirds. By accelerating neur whose activities are based on the the use of resources from the EU Structural deep-rooted Czech industrial tradition Funds, the Ministry intends to ease the situ- and who successfully develop it in en- ation for companies which have problems in terprise as well as public service. obtaining bank loans. “Substantial reinforce- ment of fi nances for company projects from the European funds is one of the few meth- which the Ministry of Industry and Trade sup- ods by which the State can give an economic ports the infrastructure. This means more boost to small and medium-sized enterprises money for the purchase of machinery, tech- while maintaining a budget ary discipline“, nological innovation, and guarantee and says Minister Říman about the OPEI 2009 credit programmes for entrepreneurs. “If there budget increase. “Money that would be re- is interest and a suffi cient number of good leased continuously up to 2013 will be avail- projects, we are ready to raise the programme able to companies in larger volumes and budgets,” Minister Říman added. earlier. We will proceed in the same manner in 2010,“ says Minister Říman. For example, more funds will be available to More in the article Support for Small and Me- entrepreneurs in 2009 in programmes from dium-sized Enterprises in the Czech Republic in this magazine or at www.businessinfo.cz

13 | CZECH BUSINESS AND TRADE

Protected Products of the Czech Republic

Widely known products that come to The European Commission distin- Another characteristic feature of the biscuit consumers‘ minds anywhere in the world guishes three types of protection - Pro- is a rim less than two centimetres thick that tected Designation of Origin (PDOT), appli- is available in several versions (nut, almond, in connection with the Czech Republic cable to foodstuff s produced in a particular or peanut fl avour). Large-scale produc- include not only the famed beers from the geographic area with the use of recognised tion of the biscuits started at Lomnice nad Czech Republic but also confectionery and know-how, Protected Geographical Indica- Popelkou (East Bohemia) in 1810 and later tion (PGI), and Traditional Speciality Guar- Lomnice biscuits were distributed all over many other foodstuff s. Compared with anteed (TSG), which ensure that a product Austria-Hungary. The biscuit continued to new EU member states, the Czech Re- is partly or fully produced in a given geo- sell well and in 1927 even won the highest public has more than double the amount graphic area. A product granted this protec- prize for a food product at the World Exhi- tion by the European Commission is marked bition in Paris. of protected agricultural products and with a blue-and-yellow or red-and-yellow foodstuff s. At present, there are 17 Czech label (see picture). Pardubický perník protected products and the protection of (Pardubice Gingerbread)  PROTECTED GEOGRAPHICAL – confectionery – honey pastry made as a dozen others is being prepared. The lat- INDICATION (PGI) decorated gingerbread of various shapes est item to be added to its list of Protected (often heart-shaped), or as sponge ginger- Geographical Indications has been České Hořické trubičky bread of two sandwiched slices coated with (Hořice Tubes) chocolate or custard with a fi lling. The histo- pivo (Czech Beer). A customer who buys – confectionery – hand-rolled thin wafers ry of gingerbread manufacture in Pardubice a beer with this label can be sure that it is sprinkled with sugar and nuts, which can is recorded as far back as the 16th century. beer produced in the Czech territory, by be fi lled with sweet cream. The tubes are The right to produce gingerbread was con- sometimes coated with chocolate. Hořice fi rmed by Maria Theresa in 1759. The 20th traditional methods and with the use of Tubes have been baked at Hořice (East Bo- century brought an upsurge and industrial traditional materials. hemia) since 1812, when the recipe was left production was added to the gingerbread there by a chef and General of Emperor Na- hand-making process. poleon’s army. Chodské pivo Lomnické suchary (Beer from Chodová Planá) (Lomnice Biscuits) – this beer owes its flavour to slightly min- – confectionery – after baking, this biscuit eralised water from the granite massif of is coated in castor sugar and baked again the Oberpfälzerwald Mountains. The malt so that the sugar sticks fi rmly to the biscuit. is prepared from local barley. The beer ma- tures in 800-year-old vaults. The Chodo- var Brewery, which obtained this protec- tive indication status, has been brewing beer for over 500 years. In the past, the The label tells the beer was supplied to the Royal Court in consumer that this is Prague. In 2007, Chodovar’s dark beer won a traditional and excep- the European Beer Star award in a world tional product, typical of a certain area. competition.

Karlovarský suchar (Karlovy Vary Biscuit) – the biscuits are made from Karlovy Vary hot spring water and salt and thus have a unique fl avour. The biscuits are produced in two ver- sions, special and dietary: Karlovarský suchar special and Karlovarský suchar dietní.

Českobudějovické pivo, Budějovické pivo a Budějovický měšťanský var (České Budějovice Beer, Budějovice Beer and Budějovice Burghers’ Brew) – the fi rst three registrations rightfully nego-

Hořice tubes tiated already in the EU accession treaty. The Hovorkovy hořické archives, Commission trubičky European Photo: archives

15 | BUSINESS AND PRODUCTION

Pohořelice carp

tradition of beer brewing in České Budějovice agents. The onion has a green and yellow goes back to the 13th century, when the skin, and white to light green juicy flesh Czech beer town was granted the beer brewing right. with a delightful sweetish taste. Onions have always been grown in the Všestary Štramberské uši area, but massive development came in  PROTECTED DESIGNATION (Štramberk Ears) 1964 with the establishment of an irriga- OF ORIGIN (PDO) – confectionery – a special bakery prod- tion system along the Labe when large- uct made of flour, sugar, eggs, water, bak- scale onion production was launched. Chamomilla Bohemica ing powder, spices, and honey or caramel. – a plant – the Latin name for the blos- The dough is rolled out into small circular České pivo som of wild chamomile from Bohemia. It scones, which are rolled up into the shape (Czech Beer) is exceptional, due to the high proportion of cones after baking. Štramberk Ears have – this indication can be obtained by of chamazulene, the agent due to which been made according to a traditional re- beer brewed in the territory of the Czech chamomile has an anti-infl ammatory eff ect, cipe for more than 800 years. Republic, from traditional raw materials it alleviates coughs, accelerates healing and by traditional technologies that and relieves an upset stomach. Cha mo mile Třeboňský kapr have been abandoned by some brew- growing has a rich tradition in the Czech (Třeboň Carp) eries abroad (malt is brewed in several Republic. It greatly intensified in the 1950s – the Třeboň carp has very good fl esh with phases in several vessels and at various when demand for chamomile increased a low fat content and a specifi c taste. Cereals temperatures; there is a two-phase fer- from abroad. are used in the fattening process. The Třeboň mentation and the main fermentation Carp branding has been used for more than process must be separate from matura- Český kmín a hundred years, but fi sh ponds already tion). The result is beer different from (Czech Caraway Seed) started to be developed in the Třeboň area others due to its full taste, aroma, bitter- – Czech caraway seed achieves a high from the 16th century. ness, and savour. Beer brewing has deep quality and is much in demand on world roots in the Czech Republic. A landmark markets. Its advantage is that, unlike other Všestarská cibule was the year 1842, when a type of beer caraway seeds, it is an evergreen plant thus (Všestary Onions) unknown before and using a different producing higher yields. The protected – thanks to ideal conditions, mainly the fermentation technology started to be designation status has been obtained by quality soil in the environs of Všestary (East brewed in Plzeň (Pilsen). At that time three caraway seed varieties cultivated in Bohemia), these onions are exceptional. Czech beer had already gained popu- the Přibyslav area (Vysočina Region) - Re- Their iron content is 25% higher than usual larity all over the world, which has con- kord, Prochan, and Kepron. They became

and they contain practically no noxious tinued to this day. popular especially due to their typical aro- News Agency PORT archives Czech Photo: agency archives,

| 16 BUSINESS AND PRODUCTION

ma, which is a result of a high content of Pohořelický kapr create very good conditions for hop pro- carvone-rich essential oil. (Pohořelice Carp) duction. Thanks to their unique properties, – the entire production process takes place in Žatec hops are used by breweries all over the Nošovické kysané zelí the fi sh pond area of Pohořelice (South Mora- world. Hops have been cultivated in the area (Nošovice Sauerkraut) via). The fi sh feed on natural food from the for more than a thousand years. – the specifi c properties of this Sauerkraut ponds. Additional food is provided only at cer- are due to the conditions in the locality of tain times of the year. The roots of fi sh farming  APPLICATIONS BEING the Nošovice area (Moravia-Silesia Region) in the area originate from the 12th century, PROCESSED and to the original recipe. The cabbage is the greatest development in fi sh production fi rst sliced, salted and fl avoured and then here having been in the 16th century. Jihočeská niva and Jihočeská zlatá niva placed in vats and trodden. This is fol- (South Bohemian Blue Cheese) lowed by a six-week fermentation period. Žatecký chmel – special cheeses containing mould. The in- The result is golden yellow sauerkraut with (Žatec Hops) side of the cheese is creamy in colour, the a delicate bitter taste and a high Vitamin C – this applies to the semi-early, red, fi ne- mould is blue. The basic substance for the content. The technology of cabbage pro- aroma Žatec hops cultivated in the Žatec production of this cheese is cow’s milk. The duction and preparation has a rich tradition hop-growing area. The climatic conditions, pastures are in ecologically unaff ected areas. in the Nošovice area. together with the ideal soil composition, Jihočeská niva blue cheese has been made by the same method for over 50 years.

Mariánskolázeňské oplatky (Mariánské Lázně Wafers) – confectionery – these consist of two crisp, thin, round wafers, 19 cm in diameter, with a layer of sugar and hazelnut mixture between them. The wafers are held together by hazel- nut or cocoa fi lling. Besides these round, thin wafers, they are also available in wedges that consist of eight layers of the spa wafers held together by a fi lling, then pressed and cut into eight wedges of the same size. The tradition of the wafers goes back to the mid-18th century.

Olomoucké tvarůžky (Olomouc Curd Cheese) – the small, circular-shaped “tvarůžky“ is the only truly original Czech cheese. It is a special cheese with a typical smell, made from fat- free sour curd and salt. The production of Olomoucké tvarůžky started at the turn of the 15th and 16th centuries. Its reputation is documented by a prize won at the First Aus- trian Exhibition in Vienna in 1872.

Valašský frgál (Wallachian Cake) – a cake which has been prepared in the Moravian Wallachia region practically ac- cording to the same recipe for several cen- turies. The fi rst written records of recipes for the Wallachian Cake date back to 1826.

Applications have also been submitted for registration of Znojemské pivo, Chelčicko- Lhenické ovoce, Brněnské pivo, Karlo- varské oplatky, Karlovarské trojhránky,

Žatec hops Březnický ležák, Černá Hora. Union archines Hop Growers Czech Photo:

| 18 In this section, we present and follow interesting success stories of export projects implemented by Czech businesses from a variety CZECH TOP of industry sectors; success that is, for the most part, founded on remarkable feats of research and innovation. We also introduce examples of important foreign investment projects carried out in the Czech Republic.

The Longest Railway Tunnel Documented by a Czech Software System

St Gotthard, the world’s longest The LIDS system will be used to plan tence in geographic information systems,” railway tunnel, will be documented and document approximately 3 200 Radek Levíček, BERIT General Manager, km of electrical cables, 2 600 km of optical said about the project. by LIDS, the Czech software system cables, 200 transformers, and 2 880 elec- of the Berit company, which won the trical and electronic boxes. The longest  ABOUT THE COMPANY November 2008 tender for document- tunnel will connect the towns of Bodio BERIT supplies information technologies in the southern Swiss Ticino Canton and and follow-up services in the area of geo- ing the electricity distribution and Erstfeld in the central Uri Canton. Express graphic information systems, operational- optical networks of the whole tunnel. trains will take 20 minutes to go through technical information systems, and proper- The 57-km railway tunnel between the tunnel, which will reduce travelling ty management systems. Besides the Czech time from Zürich do Milan by one half. Republic, the company operates through Zürich and Milan is to be opened at the “Naturally, we are pleased to participate subsidiaries and partner networks in other end of 2017. in a prestigious project of such extent. European countries – mainly in Germany, We shall boost our positions on the Swiss Switzerland, Liechtenstein, Poland, Rus- market, where we operate through our sia, and Slovakia. The company has been subsidiary, BERIT AG. The decision to use a member of the multinational ASSECO the LIDS system testifies to our compe- group since June 2007.

FIDES Is Expanding to Foreign Markets

In the 13 years of its existence, Trade safety systems for the Army of the ranks among the major exhibition events FIDES, a.s. has gained many orders Czech Republic, the Police of the in South-east Asia, as was proved by the Czech Republic, and bodies of State ad- participation of more than 500 exhibitors in the Czech Republic and attracted ministration. Trade FIDES won a tender from 20 countries. Interest in the compa- attention on world markets. Trade for safeguarding the special purpose ny’s products was shown, for instance, contacts in the United Arab Emir- rooms of the International Civilian Office by a delegation of the Vietnamese Min- representation in Pristina, Kosovo. This istry of Defence, headed by General Cao ates, Kosovo, and Vietnam demon- order was completed in October 2008. Tien Hinh. Other potential clients were strate that the Czech company is developer companies, as construction,  developing technical equipment of SAFETY SYSTEM FOR mainly of administration buildings and THE UNITED ARAB EMIRATES hotel complexes, is experiencing a boom a very high standard, and has much A contract with the Softech Informa- in Vietnam. to offer. tion Technology company on future co- operation in safety system supplies to the  ABOUT THE COMPANY Workers Village projects in the United Arab Trade FIDES, a.s., established in 1995, is Emirates was signed during the official visit a supplier of complete safety techno- of Mr Miroslav Topolánek, Premier of the logies and services for the protection of  MONUMENTS Czech Republic, in March 2008. The project persons and property. The company’s AND OTHER BUILDINGS includes the supply of safety systems for products have resulted from its own re- The first orders placed with the com- the residential complexes, which are be- search, development, and manufacture, pany included the installation of safety ing built by the UAE Government for some and allow the realisation of specific cus- systems in cultural and historic monu- 50 000 inhabitants. Trade FIDES is to safe- tom-made safety projects in the public ments, of which the most important was guard the complexes with its LATIS SQL and private sectors. The company also the vast complex of Český Krumlov Cas- monitoring and integration system and provides consultations, technical support, tle and Chateau, which is on the UNESCO the ASSET integrated access system. and service. Trade FIDES is based in Brno World Heritage List. Other orders were, and has branches in five towns in the for example, for the installation of sys-  EXPANSION Czech Republic. It has more than 200 em- tems in buildings of financial institutions TO SOUTH-EAST ASIA ployees at present. and embassies of the Czech Republic, in- The company presented itself at the 17th cluding the largest of them, the Embassy International Industry Fair in Vietnam, Further information is available at: in Moscow. The company has provided held in Hanoi in October 2008. This fair www.fi des.cz

19 | CZECH BUSINESS AND TRADE

Events of World Standard

The Czech events and experience  EVENTS ATTRACTING Agencies operating on the Czech events FOREIGN CLIENTS market have no competition of their own market is tackling similar problems There are many venues in Prague and such as the EVA in neighbouring Germany, as the market in the developed throughout the Czech Republic where but they are rivals in tenders for different world. The financial crisis has made representative events with catering can events. A golf tournament or an annual it much easier for marketing depart- be arranged. Since this country is very party can be the subject of a tender in attractive for foreign clients, some agen- the Czech Republic, especially if the cli- ments to make cuts in Below the Line cies are focused exclusively on those ent is a state organisation bound by law (BTL) communication budgets, which who want their event arranged at a his- to open a tender for orders exceeding include events, than in Above the toric venue in Prague, or in a chateau EUR 72 000. converted into a hotel, of which the Line (ATL) expenditures, in which en- Czech Republic has many. The Czech  OTHER AGENCIES terprises are bound by pre-arranged events market has made great techni- ALSO EXIST advertising and conditions negoti- cal progress and its services are of world Besides the AKA and APRA members, standard. This applies especially to pic- many firms offer high-quality services ated with their agencies. ture projection. A must in every offer is on the Czech market. These are agen- the visual, which allows a live combi- cies which were formerly focused on the nation of several pictures projected by organisation of events, their technical a special apparatus, for instance on to production and catering, and their suc- buildings. The greatest interest is shown cess was due to a timely response to the at present in the projection on to an ex- needs of clients to represent their firms panse of water – three-dimensional pro- and influence their customers or partners jection on a huge area visible at a great directly and individually. Agencies which distance. went into business with a team of host- esses and promoters gradually expanded  ASSOCIATIONS their activities to the complete produc- Agencies which operate in event market- tion of events. They concurrently con- ing in the Czech Republic are members tinue providing the services in which they of the Association of Public Relations excel, such as renting staff and costumes Agencies (APRA) and the Association of to other full-service or media agencies. Communication Agencies (AKA), which has a section of “integrated BTL commu-  SELECTION nication” (iBTL). Events are only one of OF EVENT AGENCY the activities of both groups – the share The above-mentioned associations can in BTL activities is approximately 11%, as provide valuable information for the selec- seen by customers polled by iBTL in 2008. tion of an agency. Event Man agers working The domain of PR agencies are events ar- for fi rms should choose a suitable agency ranged for VIP target groups, mainly trade and provide the basic idea for the event. partners and journalists – 90% of the top A creative concept is not always supplied 500 firms in the Czech Republic use these by the agency. Moreover, the Event Man- services for the organisation of events ager should be better acquainted with such as conferences and press confer- the culture of the fi rm and make suitable ences (APRA poll in October 2008). suggestions. The event agency and the Manager develop the plan together. Com- panies such as Siemens, Česká spořitelna EXAMPLE OF AN EVENT IN THE CZECH REPUBLIC (Erste Group), Vodafone, and Henkel ar- A recent, purely Czech, example is an event of Pivovary Staropramen, a member range their events in the Czech Republic of the InBev group, with a share of more than 15% on the Czech beer market. The themselves, and use the services of agen- slogan of Staropramen is “When have you done something different?” To show how cies only for major events or, like Vodafone, differently beer can be tasted, Staropramen co-operated with the Lemonade agency use only the production and not the cre- and arranged the SkyBar event. The lucky winners of tickets to the event were seated ative services of agencies. and firmly secured on a platform which a crane lifted to a height of 50 metres. They were served beer in the skies and could enjoy a bird’s eye view of the Prague  International Marathon which was just passing by. The event attracted attention by QUALITY CATERING word of mouth and a video on the Internet, and the SkyBar became a crowd-puller IS IMPORTANT to other Staropramen events. A similar structure has been used in Belgium, Hungary, Almost all events need the services of the South African Republic, and Las Vegas. catering companies, some of which in

21 | SERVICES

ASSOCIATION OF COMMUNICATION AGENCIES The section of integrated Below the Line agencies – iBTL, attached to the Associ- ation of Communication Agencies (Asociace komunikačních agentur – AKA) of the Czech Republic, was established in 2004. Its objective is to protect the interests and develop the scope of activity of agencies traditionally described as “below the line”. with the guests, or at least in front of The section is guided by the AKA Code of Ethics, and agencies compete every year their eyes, or a cooking contest. Cooking for the Effie prize for the most effective advertisement. is moving from the kitchen to the guests, In 2008, AKA organised a signifi cant international conference on “integrated BTL commu- and chefs are becoming showmen who nication – strategic partner of your brand” at which many case studies concerned events. involve the guests in the actual catering. Professionals from agencies associated in the section also serve as lecturers at commercial seminars on event marketing, for example, within the framework of the Ogilvy Institute. An example is the Prague Food Festival, www.aka.cz, www.ogilvyinstitute.com which brings top chefs together.  FIELD KITCHEN ASSOCIATION OF PUBLIC RELATIONS AGENCIES Creative catering companies include The Association of Public Relations Agencies (Asociace Public Relations Agentur the Kampa Group, which runs a chain of – APRA) is a voluntary organisation of PR agencies operating in the Czech Republic. luxury restaurants in the centre of It was established in 1995 and, at present, associates 22 agencies. Its purpose is to Prague and tries to assert itself ever present the PR branch to professionals and clients, cultivate the activity of agen- more in catering and the arrangement cies and create the scope for a broad professional discussion. It awards prizes for of events. For the Sal. Oppenheim Cup the best PR accomplishments in B2B, B2C, and internal communication categories. Polo Tournament, for example, it erected Together with the University of Economics in Prague, it is opening the 9th edition a kitchen directly on the field and served of the free Public Relations Academy 2009 educational programme, which includes a complete menu in a heated tent. The a course in event management (preparation and organisation of special events, such as social events and anniversary celebrations to support the image of firms.) hall of the historic building of the Czech It has its own code of ethics and places orders for special branch research. Museum was the venue for a Chamber www.apra.cz event by the Louis Vuitton company. It was a really exclusive arrangement, as the institution has no background for the Czech Republic arrange very inter- tations for its members. It contends with catering, and can provide its areas for esting events to order. There is a guar- unfair competition and develops joint commercial events only in exceptional antee of the quality of services if offered marketing activities of members. Good circumstances. by the Czech Association of Hotels and modern caterers in the Czech Republic Restaurants. Its members include sev- can offer fashionable elements which eral hotels and firms which offer a high transform a party into a real event. The level of catering. The Association organ- programme may include a school of Jan Patera

ises conferences, workshops, and consul- cookery, preparation of dishes together Marketing&Media KampaPhoto: Group

| 22 REGION

Liberec Region

Liberec is an industrial region known GERMANY Liberec POLAND to the world not only because of its Ústí n/L Karlovy Vary Hradec Králové glass and imitation jewellery products. Praha Pardubice Liberec Ostrava Jablonec Thanks to a diversified economy and Plzeň Olomouc n/Nisou Česká an abundance of qualified workforce, Jihlava Lípa Brno Zlín České Semily the Region has managed to com- Budějovice SLOVAKIA pensate for the decline of traditional AUSTRIA industries and has substituted these with a rapidly growing tertiary sec- tor. Preparations and development  LOCATION, TERRITORIAL through mining and the processing of deco- DIVISION, AND POPULATION rative and building stones. Today‘s quarries of real estate suitable for the inflow The Liberec Region is located in the north of are oriented towards mining sands, gravels, of strategic investors has also played the Czech Republic and its northern border and crushed aggregates. The following in- a role. The industrial zones in Liberec constitutes the border with the Federal Re- dustries have developed: glass and imita- were filled within a few years and public of Germany (20 km) and the Repub- tion jewellery, production and processing lic of Poland (130 km). The Liberec Region of plastics, en gineering and manufacturing have attracted important investors occupies only 4% of the area of the Czech industries with close ties to car production. from Japan, Germany, the USA, and Republic. With an area of 3 163 sq. km, the The traditional textile industry has lost its other countries. The development of Region is, with the exception of the capital of dominant position in recent years. Agricul- Prague, the smallest in the Czech Republic. ture, which is only a complementary indus- new industries has also meant that The entire Region is mainly mountainous. try, is dominated by cereals and fodder crops the Region is now known as a sup- The area includes the north of the Česká kot- in connection to stock rearing. plier for the automotive industry. lina (Czech Basin), the Western Krkonoše with Following the introduction of new mar- the Krkonoše foothills, and the eastern part ket conditions after 1990, there has been The Technical University of Liberec of the Lužické hory Mountains. The Region‘s a signifi cant development of small and me- has achieved significant results in highest point (1 435 m) is Kotel Mountain in dium businesses, mainly oriented towards science and research. One of its the Semily District, the lowest point (208 m manufacturing for the automotive industry, above sea level) is in the District of Liberec, construction, and services. Mainly during greatest successes was the unique in the spot where the Smědá River leaves the the end of the 90s, a perceptible infl ow of discovery of a technology for the territory of the Czech Republic. The Region‘s foreign companies occurred, which have industrial production of nanotextiles. best known peak is Ještěd (1012 m), which started to build upon the traditions and the is the highest peak of the Ještědský hřeben Region‘s qualifi ed workforce. There has been Ridge (www.jested.liberec.cz). a signifi cant growth in the areas of Com- There are four districts in the Region (local merce and Transport in recent years, and the administrative units, LAU 1, according to the tourist trade has become an indispensable unifi ed classifi cation of the EU): Liberec, Jab- part of the Region‘s economy. The Region‘s lonec nad Nisou, Česká Lípa, and Semily. The Gross Domestic Product was EUR 4 265 mil- districts are further divided into 215 munici- lion in 2007, which was 3.4% of the Czech Re- palities, 39 of which are towns. 78.6% of the public‘s Gross Domestic Product and 66.5% Region‘s inhabitants live in the towns. The of the Gross Domestic Product per capita town of Liberec is the centre of the Region, in the European Union as a whole. The Re- with a population of almost 100 000. The gion‘s export is dominated by machinery second biggest town is Jablonec nad Nisou and transportation vehicles (52.5%), semi- Krajský úřad Libereckého kraje with 46 000 inhabitants. The north-eastern fi nished products and materials (27.5%), and (Regional Authority of the area of the Liberec Region is part of the NUTS industrial and consumer goods (14%). Liberec Region) 2 territorial unit – along with the Hradec U Jezu 642/2a Králové and Pardubice Regions.  TRANSPORT 461 80 Liberec 2 The Liberec Region is located in a sector be- Czech Republic  CHARACTER OF THE ECONOMY tween two highways: D8 Prague – Ústí nad phone: +420 485 226 111 The Liberec Region is predominantly indus- Labem – Dresden and D11 Prague – Hradec e-mail: [email protected] trial. The Region‘s raw materials are domin- Králové – Lubowka – Legnica. The main trans- www.kraj-lbc.cz ated by quality glass and foundry sands. In port axis is a major road from Prague that en-

the past, the Region gained importance sures quality connection of the Region with CzechTourism Photo:

| 24 Hotel and television tower on Ještěd Hill in the Jizerské hory Mountains

the centre of the country. Another axis in the north-south direction is the I/9 Svor – Česká Lípa – Mělník road, and for the west-east it is the I/13, 35 Děčín – Nový Bor – Hrádek nad Nisou – Liberec – Turnov – Hradec Králové road.

 EDUCATION There is an abundant quality workforce in the Region, which is a consequence of the pres- ence of a number of specialised secondary schools and training centres. The most impor- tant is, however, the Technical University of Lib- erec, with the following faculties: Mechan ical Engineering, Textile Engineering, Econ omics, Education, Architecture, and Mechatronics (www.tul.cz). More information is to be found in the article “Liberec Region Bets on Education”.

 CULTURE The Liberec Region has a rich cultural and historical tradition refl ected in the numerous architectural and historical monuments and cultural amenities. The following institutions are of supra-regional signifi cance: The North-  EUROREGIONS tion is to improve natural, cultural, and po- Bohemian Museum in Liberec, the Regional A part of the Liberec Region falls within the litical milieu and to develop the Euroregion‘s Art Gallery in Liberec and the Liberec Re- Neisse-Nisa-Nysa Euroregion. This Eurore- economic potential. search Library. Important cultural institutions gion was the fi rst socially accepted form of include F. X. Šalda Theatre with the Little The- cross-border co-operation in Central and  TOURIST TRADE atre, the Naive Theatre in Liberec, the ZOO, East Europe and has become a pioneer of Thanks to its geographical diversity, the and the Liberec Botanical Garden. regional cross-border co-operation. The Eu- Liberec Region is also very attractive from In relation to the tradition of glass and imi- roregion consists of three border areas lo- the tourist trade point of view. Thousands tation jewellery manufacture, one can visit, cated around the intersection of the borders of tourists arrive every year to make use of for example, glass-making museums in Nový of the Czech Republic, the Federal Republic what the Region has to off er in hiking, cyc- Bor, Kamenický Šenov, and Železný Brod, or of Germany, and the Republic of Poland. The ling and winter sports. There are fi ve Pro- the Museum of Glass and Jewellery in Jab- entire Neisse-Nisa-Nysa Euroregion covers tected Landscape Areas in the Region (České lonec nad Nisou. The Museum of the Bohe- 12 805 sq. km, 21.2% of which is the Czech středohoří, Jizerské hory, Lužické hory, Český mian Paradise in Turnov features collections part, 43.7% the Polish part, and 35.1% the ráj, Kokořínsko) and seven National Natural from the fi elds of geology, mineralogy, and German part. The population is 1 660 821, of Preserves. goldsmithy and jewellery-making documen- which 26.8% live on Czech territory, 35.2% on There are two spa centres in the Region tation unique not only in the Czech Republic Polish territory and 38.0% on German terri- (Libverda Spa, Kundratice Spa), which treat but in Europe too. tory. The aim of the cross-border co-opera- disorders of the locomotor system, heart diseases, blood circulation, and rheuma- BRIEF CHARACTERISTICS OF THE REGION tism (www.laznelibverda.cz, www.laznekun- dratice.cz). Frequently visited historically Area Inhabitants NUTS Population Municipalities (in sq. km) /sq. km valuable sites include castles and chateaux (Bezděz, Zákupy, Lemberk, Frýdlant, Sychrov, LAU 1 – Česká Lípa 1 073 103 620 57 97 Hrubý Rohozec, Valdštejn) and a number of LAU 1 – Jablonec nad Nisou 402 89 824 34 223 churches. The landscape is enriched by nu- LAU 1 – Liberec 989 167 654 59 169 merous bodies of water, of which the most LAU 1 – Semily 699 74 657 65 107 famous is the Máchovo jezero (Mácha Lake) NUTS 3 – Liberec Region 3 163 435 755 215 138 (www.machovojezero.cz). The development of the tourist trade is NUTS 1 – Czech Republic 78 867 10 424 926 6 249 132 aided by road and railway border crossings Source: Czech Statistical Offi ce (as of 1 January 2008) as well as a number of pedestrian crossings NUTS – territorial unit according to the unifi ed EU classifi cation, LAU 1 = District for local border traffi c.

25 | REGION

Liberec Region Bets on Education

The structure of employment sug-  THE TECHNICAL UNIVERSITY OF LIBEREC COMPILES COURSES gests that the Liberec Region is the IN CO-OPERATION WITH TECHNICAL most industrial one. Over half of all AND ECONOMIC PRACTICE economically active inhabitants are The Technical University of Liberec (TUL) of- employed mainly in the processing fers accredited Bachelor, Master, and Doctoral study programmes. The study programmes industry, which is the highest fi gure are, to a signifi cant extent, compiled in co-op- in the Czech Republic. Conversely, the eration with technical and economic practice rate of employment in the areas of and on the basis of needs in the fi eld of sci- ence and research. Czech and foreign compa- opment of products with unique qualities which services and information technologies nies submit topics for graduation theses, of- would fi nd use in non-traditional industries. is below the national average (approx. fer company scholarships and, subsequently, More at: www.tul.cz 45%); these areas are, however, expe- employment positions to TUL graduates. Jaroslava Kočárková Most of the graduates choose from a number TUL Spokesperson riencing continual growth, especially of employment off ers, with the possibility of in the case of complex non-manual further professional growth.  CENTRE OF LEARNING IN THE LIBEREC REGION work which includes strategic services Examples of Mutually The Centre of Learning is a project of the Liberec and entrepreneurship. Benefi cial Co-operation: Region in the fi eld of the lifelong education of The rate of unemployment is around The TUL collaborates with Elmarco in the de- adults. Its aim is to broaden the opportunities for 6% (Czech Republic: 5.6%). velopment of machines and equipment for the citizens to acquire know ledge and skills and thus industrial production of nanotubes. There is a li- not only to support learning in the Liberec Region, cence agreement in place between the Univer- but also to decrease the rate of unemployment. sity and the company. The University thus profi ts from the sale of production lines by Elmarco. The project is based The Faculty of Mechatronics, Informatics, on the following basic principles: and Interdisciplinary Studies (FM TUL) closely  fl exible reactions to client requirements The development in this fi eld has been very co-operates with the Nuclear Research Insti- (people interested in learning, the unem- dynamic in the last decade – over half of all tute, plc., in revitalising the Czech energy in- ployed, large employers) people on the labour market had at least dustry. The current focus of the collaboration  connecting diff erent entities within the la- a primary school education, and the number is the complete restoration of operations at bour market of university graduates grew by one-fourth. the Prunéřov power plant.  providing an educational selection and The distribution of secondary schools cor- Other specifi c tasks have been submitted complex services, including informational responds with the structure of the economy. by, among others, Diamo, State Company and consulting services There is a signifi cant share of gastronomical, (sanitation technologies, etc.), RWE Transgas,  systematic analysis of the changing needs engineering, and building specialisations in and the important Prague fi rm, Newton Me- of the labour market and providing infor- the case of secondary schools with vocation- dia (the introduction of modern voice tech- mation regarding the eff ectiveness of the al certifi cates, and economics, engineering, nologies in practice). Region‘s educational system. arts and building specialisations in the case Other faculties are not to be outdone. The Fac- of “A” Level fi nal exam schools. ulty of Mechanical Engineering (FS TUL) co-oper- The system consists of the Region‘s allowance University education is notably repre- ates with Škoda Auto Mladá Boleslav (car seats), organisation, CVLK, p. o., the co-ordinator of the sented by the Technical University in Liberec AGC Flat Glass Czech (robot for cleaning glass main activities, a network of local centres of life- (TUL) with over 9 000 students (4 500 with coating of high-rise buildings), and a number of long learning, educational counselling centres technical, 1 900 with economics, 2 600 with other important companies. The Faculty of Tex- (mostly at secondary schools, colleges, educa- humanistic majors). tile Engineering (FT TUL), being a member of the tional institutions, etc.), and the so-called part- The Region has – as one of the fi rst – bet CLUTEX cluster of technical textiles, co-operates ners of the CVLK (educational agencies, etc.). on the development of further studies and with producers of technical textiles in the devel- The Centre of Lifelong Learning in the Li- created a network of local centres of life- berec Region is one of the fi rst solution models long learning, off ering a broad range of edu- EDUCATION OF THE POPULATION: for the issue of lifelong learning in the Czech cational programmes for the improvement Primary school 20 % Republic and, as such, it serves as evidence of of the population‘s qualifi cations. the enlightenment of the Region‘s represent- Secondary school 40 % Leoš Křeček with vocational certifi cate atives, who are aware of the close relationship Department of Education, of the population‘s educational level with the Secondary school 33 % Youth, PT and Sport with fi nal exam (“A” Levels) economic prosperity of the Region.

of the Liberec Regional Offi ce Jiří Bouzek PhotoCombo Photo: University 7 %

| 26 CZECH BUSINESS AND TRADE

Commercial Real Estate Market in the Liberec Region

The situation of the City of Liberec  RETAIL SPACE main sectors in this zone. Second in im- near the German border is favourable On the contrary, Liberec is a local- portance is the Liberec-North industrial ity sought after by shopping centre and zone which, however, will not be de- for trade and tourism. The nearby ski shop developers. Several facilities are signed only for industrial production. resorts in the Krkonoše (Giant Moun- being constructed or reconstructed. About one-third of the area will go to tains) and picturesque countryside The Liberec Plaza shopping centre of shopping centres (such as Globus). Both the Plaza Centres developer is being zones were constructed by the Invest- in the foothills, as well as the Mácha completed in the centre of the city. ment and Engineering Company and Lake, attract thousands of tourists to Its offer will be 120 shops in an area of rank among the largest private projects the area every year from the Czech 19 000 sq.m. The Nisa Liberec shopping of their kind in the Czech Republic. An- centre of the ING Real Estate developer other industrial complex – Stráž pod Republic and neighbouring countries was enlarged in 2008 to offer 160 shops Ralskem in the Česká Lípa District – still – Poland and Germany. in an area of 50 000 sq.m. Other retail has a vacant area of 15 hectares with complexes include, for example, Géčko complete infrastructure. All industrial Liberec and OC Delta. However, it is areas throughout the Region are leased a question whether so many shopping at EUR 4–4.30 /sq.m/month. centres can be profitable in Liberec with a population of 160 000. “Disregarding  LAND the fact that it will be a problem to find All plots of land in the Liberec industrial so many quality renters, the centres can zones have been purchased by inves- be expected to be gradually diversified tors. The prices of other plots in the Re- – some will be successful and others gion depend on their distance and con- will lack demand. The development will nection to express roads. For example, be similar to that now experienced in plots in Stráž pod Ralskem with com- Prague,” says Martin Indra of Colliers In- plete infrastructure are traded at EUR ternational Retail Department. 25–30 /sq.m.

 INDUSTRIAL REAL ESTATE  OFFICE BUILDINGS The attraction of industrial areas in the The Liberec Region has not yet devel- Region is limited at present by an inad- oped to the full its office space po- equate infrastructure, but this should tential. In contrast to other regional improve by the planned construction capitals (Plzeň, Brno, Ostrava), foreign of the R35 express road from Liberec to companies are not locating their head- Hradec Králové. Dominant in the Region quarters or outsourcing services in the is the Liberec-South industrial zone city and so there is no office building with the VGP Park Liberec complex and boom. Offices of high standard are many buildings of twenty other inves- available in the new trade centres, but tors (including the Japanese air condi- their area is far from large. One of the tioning manufacturer Denso Manufac- Tomáš Oesterreicher few purely office buildings is the 14-sto- turing Czech). The automobile industry Martin Indra, Lenka Oleksiaková rey S Tower, which is being extensively and plastic material processing are the Colliers International Czech Republic refurbished. When this is completed, it will offer more than 6 200 sq. m of of- INDUSTRIAL REAL ESTATE IN THE LIBEREC REGION fice space, part of which will be used Built up by the Syner Group owner. Two office Total to be For imme- Leased Name of park Developer or under buildings are ready to go under con- built up diate lease in 2008 construction struction, but their commencement is dependent on demand, in view of the VGP Park Turnov VGP industriální 10 355 sq.m 10 355 sq.m 4 924 sq. m 5 428 sq. m present turbulence on the markets. All Příšovice stavby in all, the offer of offices is limited. Most VGP Park Turnov VGP industriální 11 000 sq.m 11 000 sq.m 0 sq. m 0 sq. m buildings are constructed to measure Vesecko stavby for future users and owners. No office VGP industriální VGP Park Liberec 66 467 sq.m 33 139 sq. m 0 sq. m 14 684 sq. m building has been constructed in the stavby city for the purpose of speculation. The overwhelming majority of offices are CTPoint Liberec CTP Invest 8 422 sq. m 5 592 sq. m 0 sq. m 2 830 sq. m leased at EUR 6-8/sq.m/month.

27 | REGION

Liberec Region Draws Subsidies from the European Union

The Liberec Region made use of the  EXAMPLES tiveness of firms. For example, a project OF REGIONAL PROJECTS was focused on the professional qualifi- unique opportunity to draw money The Business and Industry programme cation of teachers at vocational schools from the EU structural funds, and the was one of those used for business de- connected with the automobile industry, subsidies it has received have amounted velopment in the last few years. Business to increase the standard of their gradu- to EUR 71.5 million. The subsidies went entities received considerable subsidies ates, thus enabling them to find better for brown fields, i.e. the regeneration of jobs. Due to its success, the companies to the development of business, infra- industrial zones or the reconstruction of ŠKODA AUTO a.s., SCANIA CZECH REPUB- structure, human resources, tourism, unused factories for new production. For LIC s.r.o., and Robert Bosch odbytová, the rural areas, and the environment. example, the Beneš a Lát foundry and s.r.o.want to continue this project. engineering company has reconstructed In the last two years, more than 180 The following are examples of impor- the complex of a former textile factory in employees of small and medium-sized tant regional projects and information Slané u Semil. enterprises became acquainted with about the Liberec Region potential the ISO 9000 and ISO 14000 Man-  CLUSTERS AND agement Systems, and 12 firms were connected with European subsidies. CROSS-BORDER CO-OPERATION awarded certificates. Certificates of Two clusters have been formed in the Management Systems, in accordance Liberec Region – one in textile manu- with these standards, increase the com- facture and one in glass making. The petitiveness of small and medium-sized CLUTEX textile cluster associates about enterprises, and are essential for co- 25 firms operating in the textile industry, operation with foreign firms. the Textile Machinery Research Institute and the Technical University in Liberec.  TOURISM Special mention is deserved by cross- The development of tourism benefi ts border co-operation in different areas from the natural and cultural wealth of of business, such as the preparation of the Region, but relevant projects are also the “Small Triangle” industrial zone clus- designed for the maximum degree of envi- ter Bogatynia – Hrádek nad Nisou – Zit- ronmental protection. The Liberec Region tau, and the pilot project “Cross-border opened a 42-km hiking route on the cen- Cluster of Industrial Zones”. They are to tral ridge of the Jizerské hory Mountains take joint steps to attract investors who Protected Landscape Area. The paths were play an important role in the economic repaired, an information system installed, development on both sides of the bor- and rest areas adapted. ders of the three countries, and to help increase the compatibility of the whole  JOINT REGIONAL locality. OPERATION PROGRAMME The more than 15 programmes from  EDUCATION which entities of the Liberec Region have AND COMPATIBILITY so far received EU fi nancial assistance in- Several projects realised in the Liberec clude the Joint Regional Operation Pro- Region in the area of human resources gramme (SROP), designed exclusively laid emphasis on the improved qualifica- for regional development. The priorities tions of its inhabitants and the competi- include regional support to business, re- gional development of the infrastructure, the development of human resources and SROP – HOW ENTITIES OF THE LIBEREC REGION DREW MONEY IN 2004-2006 the development of tourism. EU Total number Number of Enterprises are continuing to apply Name of priority contribution of submitted successful (EUR) projects projects for support in the programme period of 2007-2013. In the new operation pro- Regional support to business 293 289.71 16 8 gramme, Business and Innovation in the Regional support to infrastructure 9 924 462.97 32 24 Liberec Region, 43 projects had been ap- Development of human resources in regions 4 816 377.17 103 46 proved by 24 November 2008, and other Development of tourism 3 332 784.27 99 54 applications for EUR 72 million had been Technical assistance 33 634.10 5 5 submitted. Source: Regional Offi ce of the Liberec Region, Department of Development Conceptions, Department of Regional Development and European Projects Note: The 2007 average CZK/EUR exchange rate was used for conver-

sion into EUR archives The City of Liberec Photo:

| 28 CZECH BUSINESS AND TRADE Liberec Championships – Open Door to the Whole World

“The Championships are our great The Nordic World Ski Championships  METICULOUS chance – to show that we can PREPARATIONS organise such an event success- will take place in Liberec in February The Championships have been pre- fully, to win new enthusiasts for 2009. Two complexes in the centre ceded by three years of intensive pre- skiing, to lead new sportsmen to it. of the city are the venues for this paration. Finally Liberec is ready for its I would be glad if the whole coun- grand premiere, for its position as capi- try, and not only Liberec, would highlight of the winter season and the support the Championships. We tal of the skiing world. The approach- largest sporting event ever to be held have reason to be proud of it, and ing Championships will be the largest our pride should be seen.” Kateřina in the Czech Republic. The interest in sporting event ever to be held in the Neumannová, President of the 2009 participation in the World Champion- independent Czech Republic. It is an FIS Nordic World Ski Championship appreciation of the past and present Organising Committee ships is enormous, even in countries achievements of Czech contestants in where skiing is an “exotic” sport, such all skiing disciplines. It is noteworthy, as Brazil or Trinidad and Tobago. for instance, that the Czech Ski Associ- serve the 2009 Championships and the ation ranks among the oldest ski unions public throughout the year. of the world. Participants in FIS World Cups early in 2008 and the FIS Summer  MEDAL PRESENTATION Grand Prix in Ski Jumping in October IN LIBEREC SQUARE 2008 could see the success of the recon- The winners of the Championship events struction and modernisation of facili- will be announced, and the medals and ties. New grandstands for some 10 000 World Championship titles awarded in spectators were built, and this capacity the historic centre of Liberec – in Dr. Ed- will be increased for the Championships varda Beneše Square – one of the oldest by mobile stands. The modern complex localities in the city. This square has wit- needed new access roads and flood- nessed all the important events in the lights, as the Liberec Championships Ski city’s history. Jumping events will take place mainly in the evening hours.  RECORD INTEREST The number of preliminary entries for  VESEC: STRATEGIC the 2009 FIS Nordic World Ski Cham- SITUATION AND pionships in Liberec has shown a greater DIFFICULT TERRAIN interest than in the Oberstdorf World The 2009 FIS Nordic World Ski Cham- Championships, and entries are still pionships’ cross-country tracks were coming in to the Organising Committee. built from scratch – on land of the Vesec Noteworthy is the interest of countries quarter on the south-eastern outskirts where skiing is an “exotic” sport. Entries of Liberec. This complex is designed to for the Championships have arrived from countries of South America such as Argentina, Peru, Brazil, Venezuela and its neighbour, Trinidad and Tobago. The latter has ample petroleum, but lacks snow, which is simply non-existent in subtropical areas. Certainly unknown are sportsmen from India, Iran, and Kyrgyzstan. “Antipodes” will come from Australia and New Zealand. Africa will also be represented, by the South Af- rican Republic, which has entered one competitor. We are pleased by their in- terest and they are welcome.

Zdeněk Soudný Press Secretary, FIS Nordic World Ski Championships LIBEREC 2009 (e-mail: [email protected]) The complex in Vesec www.liberec2009.com

29 | CZECH BUSINESS AND TRADE

Liberec Liberec District

Magistrát města Liberec form independent natural preserves. In the West majority of companies are fi nanced by foreign (Municipality of Liberec) there are the Lužické hory Mountains with their capital. From the structural point of view, the Nám. Dr. E. Beneše 1, 460 59 Liberec 1 dominant peak at Ještěd (1 012 m), which is con- companies are small and medium in size. The ma- Czech Republic nected to the City of Liberec by a cableway. The jority of large companies have their headquarters phone: +420 485 243 111, fax: +420 485 243 113 City of Liberec lies in a fold between the Jizerské in the City of Liberec. Due to its geographic loca- e-mail: [email protected] hory Mountains and the Ještědský hřeben Ridge. tion, the Region off ers all year-round recreation. www.liberec.cz It is the seat of the Region and also its economic, The City of Liberec off ers a wide range of tourist Městské informační centrum educational, and cultural centre. Its position is and leisure activities for every season. The city (Municipal Information Centre) strengthened by the nearby town of Jablonec hosts signifi cant international sporting events, Nám. Dr. E. Beneše 1, 460 59 Liberec 1 nad Nisou. Together they form an agglomeration resulting in many new places of accommodation Czech Republic of approximately 150 000 inhabitants, with econ- having been built. phone: +420 485 101 709, fax: +420 485 243 589 omically active persons, human resources, civic e-mail: [email protected] amenities etc. The District is divided into 59 mu- BRIEF STATISTICS www.infolbc.cz nicipalities, 11 of which have the status of towns. Indicator District Region The District is of an industrial character, which is Area (sq. km) 989 3 163 formed by the engineering and metalworking The Liberec District is one of the most northern industries, the manufacturing of components Population 167 654 435 755 districts in the Czech Republic. In the North, it bor- for the automotive industry, the production and Inhabitants / sq. km 169 138 ders Germany and Poland. Its territory has a con- reworking of plastics. The importance of the tex- Unemployment rate (in %) 5.66 5.56 siderably broken morphology – the central part is tile industry is gradually on the decline. Not only Number of economic entities* 48 616 113 585 made up of the Jizerské hory Mountains, which is industry, but also other fi elds are signifi cant, as for Source: Czech Statistical Offi ce (as of 1st half 2008) a protected landscape area of 355 sq. km. This in- example building construction, transport, and *economic entities with a min. of 20 employees (physical entities, business cludes some unique preserved ecosystems that communications and the tertiary sphere. The entities, co-operations)

SELECTED FIRMS Name Based in Sector Contact HPQ-Plast, s.r.o. Český Dub plastics processing www.hpqplast.cz Ferex ŽSO, s. r. o. Liberec metallurgy www.ferex-zso.cz Syner, s.r.o. Liberec building industry www.syner.cz Vulkan, a. s. Hrádek nad Nisou rubber industry www.vulkan.cz Sklopan Liberec, a.s. Liberec engineering www.sklopan.cz Bertero, s.r.o. Liberec textile industry www.interlana.cz Lenam,s.r.o. Liberec development laboratory for the automotive industry www.lenam.cz MSV Systems, s.r.o. Liberec technology centre for the automotive industry www.msv-systems.cz Omar AS, s.r.o. Hrádek nad Nisou machines for the textile industry www.omar.cz Elmarco, s.r.o. Liberec machines for production of nanofi bers www.elmarco.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Denso Corporation Japan Denso Manufacturing Czech, s.r.o. automobile air conditioning www.denso.cz Tarmac International Holding United Kingdom Tarmac CZ , a. s. stone production and processing www.tarmac.cz KNORR - BREMSE Systémy pro Knorr-Bremse Systeme GmbH Germany automotive parts www.knorr-bremse.cz užitková vozidla,CR, s.r.o. ArvinMeritor Holdings USA ArvinMeritor LVS Liberec, a. s. automotive industry www.arvinmeritor.com Benteler Maschinenbau GmbH Germany Benteler Maschinenbau CZ s.r.o automotive parts www.benteler.de Damino Gmbh Germany Damino CZ, s. r. o. textile industry www.damino.de Grupo Antolin-Irausa SA Spain Grupo Antolin Bohemia, a. s. automotive parts www.grupoantolin.es Shimizu Industry Co.,Ltd. Japan Liplastec, s.r.o. plastics processing www.liplastec.com Laird Holdings Limited United Kingdom Laird Technologies, s.r.o. automotive electronics www.lairdtech.com Trumf Group Germany Trumf Liberec, s.r.o. engineering www.trumpf.com Venture Peguform Netherlands B.V Netherlands Cadence Innovation automotive industry www.cadenceinnovation.cz Tenneco Global Holdings Inc. USA Monroe Czechia, s.r.o automotive industry www.monroe.com

31 | REGION

Česká Lípa Česká Lípa District

Město Česká Lípa town and the centre of the District, with (Town of Česká Lípa) a population of 40 200. The age structure Nám. T.G. Masaryka 1 of the population makes it one of the 470 36 Česká Lípa youngest districts in the Czech Republic, Czech Republic with an average age of 38.4 years. phone: +420 487 881 111 The Česká Lípa District is one of the dis- fax: +420 487 521 829 e-mail: [email protected] tricts with a traditionally extensive industry. www.mucl.cz The most important industries in the District include glass-making and the newly devel- oping productions oriented towards parts The Česká Lípa District is located in the and accessories for the automotive industry. northern part of the Czech Republic, in the Some of the District‘s glass-making techno- western part of the Region, and shares its logies are quite unique and have a tradition border with the Federal Republic of Ger- of many years. This industry is mainly centred many. With an area of 1 073 sq. km, it is in Nový Bor and Kamenický Šenov. Sands one of the largest districts of the Liberec and aggregates are the main mineral raw Region. There are 57 municipalities, 11 of materials mined in this area. which are towns. Česká Lípa is the biggest The Česká Lípa area is a popular recrea- tional destination. Three Protected Landscape BRIEF STATISTICS Areas cover over one-third of the District (České Indicator District Region středohoří, Kokořínsko, Lužické hory). There are also several National Nature Preserves. Area (in sq. km) 1 073 3 163 One of the most visited historical monu- Glass manufacture has a long tradition Population 103 620 435 755 ments is Bezděz Castle. There are also the in the Czech Republic - a vase from Kamenický Šenov Inhabitants/sq. km 97 138 chateaux of Lemberk, Zákupy, and Houska. Unemployment rate (in %) 6.06 5.56 Sloup, the biggest rock castle in Bohemia, Number of economic entities* 22 731 113 585 was created in the sandstone massive of Besides summer recreation related to water Source: Czech Statistical Offi ce (as of 1st half 2008); a mesa. The history of glass-making is cap- activities around the Máchovo jezero (Mácha *economic entities with more than 20 employees (natural persons, trading tured in glass-making museums in Nový Bor Lake), cycling and horse-riding are also be- companies, co-operatives) and Kamenický Šenov. coming popular (www.machovojezero.cz).

SELECTED FIRMS Name Based in Sector Contact Polydekor, s.r.o. Česká Lípa textile industry www.polydekor.cz Diamo, s. p. Stráž pod Ralskem uranium mining, chemicals www.diamo.cz Sauer Žandov, a.s. Žandov compressors www.sauerzandov.cz Mitop, a. s. Mimoň textile industry www.mitop.cz Slévárna hliníku, s.r.o. Nový Bor aluminium alloys www.slevarnahliniku.cz Egermann, s. r. o. Nový Bor glass www.egermann.cz MEGA, a.s. Stráž pod Ralskem membrane technologies www.mega.cz Fol-Obal, s.r.o. Doksy package folios www.folobal.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Johnson Controls Int. B. V. USA, Netherlands Johnson Controls Czech, s.r.o. automotive industry www.johnsoncontrols.com TTS Tooltechnic Systems AG & Co. Germany Protool, s.r.o. engineering tools www.protool.cz Agrokomplex C.S. Hungary Provimi Pet Food CZ, s.r.o. animal feed www.propesko.cz F.S.Fehrer International holding, GmbH Germany Fehrer Bohemia, s.r.o. automotive industry www.fehrer.com Delphi Automotive Systems USA Delphi Packard Electric CR, s.r.o. automotive industry www.delphi.com TTS Tooltechnic S.B. GmbH Germany Narex, s.r.o. electrical tools www.narex.cz Bombardier Transportation Czech Bombardier Inc. Canada spare parts for rail stock www.bombardier.com Republic a.s. Photo: CzechTourism Photo:

| 32 CZECH BUSINESS AND TRADE

Jablonec n/Nisou Jablonec nad Nisou District

Městský úřad Jablonec nad Nisou Among other densely populated centres are ing the winter season and are sought out (Jablonec nad Nisou Municipal Offi ce) the towns of Železný Brod and Tanvald. for mountain cycling during the summer. Mírové nám. 19 Machine building, electrical engineer- The Jablonec area is known for its lookout 467 51 Jablonec nad Nisou ing, and processing rank among the Dis- towers, the most famous of which are Černá Czech Republic trict’s most important industries. Many Studnice, Bramberk, Královka, Štěpánka and phone: +420 483 357 111 suppliers for the automobile industry can Tanvaldský Špičák (www.rozhledny.com). fax: +420 483 357 353 e-mail: [email protected] be found here. The traditional glass and jewellery industries employ many of the www.mestojablonec.cz BRIEF STATISTICS inhabitants. The Jablonec area is an at- Indicator District Region tractive tourist destination and the region The Jablonec nad Nisou District is a bor- ranks among those areas with a large visit Area (in sq. km) 402 3 163 der district – one whose northern border rate of foreign tourists. The Jizerské hory Population 89 824 435 755 forms the state border with Poland. The Mountains offer good skiing grounds dur- Inhabitants / sq. km 223 138 District neighbours the Semily District in Unemployment rate (in %) 5.03 5.56 the East and the Liberec District in the Number of economic entities* 23 438 113 585 West. The economic activities of both dis- Source: Czech Statistical Offi ce (as of 1st half 2008); tricts are intertwined, therefore the area *economic entities with a min. of 20 employees (physical entities, business is also known as the Liberec-Jablonec entities, co-operations) agglomeration. Jablonec nad Nisou is, with its 402sq. km, one of the smallest districts in the Czech Republic. However, it has a high population density of 223 persons per sq. km. The District is divided into 34 munici- palities, eight of which have the status of towns. Over 81% of the District’s inhabit- ants live in towns. The District’s cultural and administrative centre is the second largest district town of Waterfalls in the Jizerské hory Mountains Jablonec nad Nisou, with 46 200 inhabitants.

SELECTED FIRMS Name Based in Sector Contact Liglass, a.s. Železný Brod crystal lights www.liglass.cz Desko, a.s. Desná v Jizerských horách glass moulds www.desko.cz Jablonex Group, a.s. Jablonec nad Nisou imitation jewellery manufacture www.jablonecgroup.com BTV plast, s. r. o. Jablonec nad Nisou plastics processing www.btvplast.cz Detoa, s. r. o. Albrechtice v Jizerských Horách toys, jewellery www.detoa.cz Preciosa, a. s. Jablonec nad Nisou glass www.preciosa.com Legnex, s.r.o. Jablonec nad Nisou band saws www.legnex.cz Unitherm, s.r.o. Jablonec nad Nisou heating technology www.unitherm.cz Ornex, s.r.o. Jablonec nad Nisou Christmas decorations www.ornex.cz Jablotron, s.r.o. Jablonec nad Nisou security systems www.jablotron.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact TRW Automotive Holding France Lucas Varity, s. r. o. automobile components www.lucas.cz Hans Riegelein GmbH Germany Riegelein, k. s. food processing www.riegelein.de Schurter Holding AG Switzerland Schurter, s. r. o. electrical engineering www.schurter.com Valeo Electronique France Sylea Tchéquia, s. r. o. automobile cables www.valeo.fr et Systémes de Liaison TI Group Automotive Limited United Kingdom TI Automotive AC, s.r.o. automobile industry www.tiauto.com

33 | REGION

Semily Semily District Dolomite Caves in Bozkov

Město Semily (Town of Semily) Husova 82 513 13 Semily Czech Republic phone: +420 481 629 211 fax: +420 481 622 534 e-mail: [email protected] www.semily.cz BRIEF STATISTICS Indicator District Region The Semily District is in the south-eastern Area (sq. km) 699 3 163 part of the Liberec Region. In the North it Population 74 657 435 755 forms the state border with Poland. The Krkonoše Mountains dominate the Inhabitants/sq. km 107 138 northern part of the District’s rugged topo- Unemployment rate (in %) 5,25 5,56 graphy. The District is one of the less popu- Number of economic entities* 18 800 113 585 lated areas. The towns are mostly smaller and Source: Czech Statistical Offi ce (as of 1st half 2008); the population density is low. The District is The entire District is very attractive for *economic entities with a min. of 20 employees (physical entities, business entities, co-operations) divided into 65 municipalities, 9 of which tourists. The mountainous area of the have the status of towns. The most populous Krkonoše is known for its skiing centres: towns are Turnov with 14 680 inhabitants Harrachov, Benecko, Rokytnice nad Jizerou, (www.trosky.cz), a medieval castle, and and Semily with 9 360 inhabitants. 61% of Vysoké nad Jizerou (www.hory-krkonose. Kozákov, a legendary hilltop with a fi eld of the District’s inhabitants live in towns. cz). The skiing terrains and the sporting fa- semi-precious stones, are of great signifi - The traditionally strong textile industry cilities of these centres are used not only cance. Rock climbers are frequent visitors has registered a signifi cant decline. Cur- for recreational sporting activities, but also to the sandstone rocks – another typical rently predominant are small entities concen- for professional sports and for the hosting feature of Český ráj. Bozkovské jeskyně trated on trade, repairs of motor vehicles and of international competitions. During the (Bozkov caves) (www.caves.cz) are a world- household items, the processing and build- summer months the terrain is used for hik- famous unique natural monument. ing industries, accommodation and catering. ing and cycling. Český ráj (Czech Paradise) The District’s natural conditions allow for The majority of large companies have their was the fi rst protected landscape area in our the practice of new tourist trade entrepre- headquarters in Turnov. country. It was established in 1955. Trosky neurial activities.

SELECTED FIRMS Name Based in Sector Contact Granát Turnov, d. u. v. Turnov jewellery manufacture www.granat.cz Axl,a.s. Semily engineering www.axl.cz Eprona, a.s. Rokytnice nad Jizerou battery chargers www.eprona.cz Sklostroj Turnov CZ, s. r. o. Turnov engineering www.sklostroj.cz Šroubárna Turnov, a. s. Turnov engineering accessories www.sroubtu.cz Dioptra, a. s., Turnov Turnov optics www.dioptra.cz VyvaPlast, s.r.o. Semily industrial packaging www.vyvaplast.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Devro Group United Kingdom Cutisin, a. s. food packaging www.cutisin.cz Mehler AG Germany Technolen technický textil, a.s. textile industry www.mehler-texnologies.de HYGIENE MEDICA S.A. France Ontex CZ, s. r. o. hygienic equipment www.ontex.cz Glanztex, s. r.o., Lomnice nad Schnitzler und Vogel GmbH Germany textile machines www.glanztex.cz Popelkou Linz Textil Holding Aktiengesellschaft Austria R T K, tkalcovna, s.r.o. textile industry www.rtksro.cz Kamax BmbH Germany Kamax, s.r.o. metallurgy www.kamax.cz Photo: CzechTourism Photo:

| 34