Czech Economy Has Strong Foundations

CZECH ECONOMY HAS STRONG FOUNDATIONS

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US PRESIDENT BARACK OBAMA HAS ACCEPTED AN INVITATION FROM THE PRIME MINISTER OF THE COUNTRY PRESIDING OVER THE EU COUNCIL, MIREK TOPOLÁNEK, TO VISIT PRAGUE

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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 Council of the European Union 4

Issued ECONOMIC POLICY by PP AGENCY s.r.o. as an exclusive commis- Czech Economy Has Strong Foundations 5 sion for the Ministry of Industry and Trade of the Czech Republic KALEIDOSCOPE EDITORIAL BOARD: The Czech Republic Faces Up to Crisis 8 Milan Hovorka (Chairman), Ivan Angelis, Zdena Czech Economy Is Approximating EU 10 Balcerová, Růžena Hejná, Josef Jílek, Zdeněk First Biotechnology Cluster Established 10 Kočárek, Tomáš Kopečný, Marie Pavlů, Pavla Podskalská, Josef Postránecký, Libor Rouček, Prague: Place Suitable for Business 10 Jiřina Semanová, Jiří Sochor, Jarmila Škvrnová INVESTMENT MANAGING EDITOR: Experience with Business in the Czech Republic 11 Ivana Šmejdová Free Enterprise for Europe in the 21st Century 11 EDITORS: Effective Protection of Investment in the Czech Republic 12 Jiří Bouzek, Jaroslava Bradová REGULAR COLLABORATORS: CZECH TOP Eva Tomášková Innovation for the Automobile Industry 13 Honeywell Expands Production in the Czech Republic 13 TRANSLATION: Vlasta Benešová, Alena Kenclová, Robert YOUNG STARS Krátký, Lucie Pavlíčková, Dagmar Šímová, Radiography: International Acclaim for Czech Scientists 14 Halka Varhaníková READ: SERVICES Mathew Booth, Pearl Harris, Ivana Kadlecová, Personnel Agencies Provide Valuable Services 16 Zuzana Pavlíčková

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ADDRESS: Myslíkova 25, 110 00 Praha 1, Czech Republic PRAGUE GETTING READY FOR THE VISIT OF THE PRESIDENT OF THE UNITED STATES Phone: +420 221 406 623, +420 221 406 626 Fax: +420 224 930 016 e-mail: [email protected] The Prime Minister of the Czech Republic, Mirek www.ppagency.cz, www.mpo.cz/en/minister- Topolánek, has confirmed, after the March emergency and-ministry/ministry/default.html summit in Brussels, that the President of the United States, Barack Obama, will visit Prague on 4 April, 2009. Press run: 13.500 copies. The number of printed and The reason for President Obama’s visit is a summit of sold copies of the journal is verifi ed by auditor, HZ the European Union and the United States, which was Praha, s.r.o., member of PANNELL KERR FORSTER originally scheduled for June in Washington. As the Worldwide. It is not allowed to reproduce any part EU Council presiding country, the Czech Republic has of the contents of this journal without prior consent been striving to organise the EU – USA summit. Barack from the editor. Attitudes expressed by the authors Obama has also been invited to the Czech Republic of articles carried by CBT need not necessarily be by President Václav Klaus. It is expected that the US consistent with the standpoint of the Publisher. MK President will be accompanied by his wife, Michelle. ČR E 6379, ISSN 1211-2208 „Podávání novinových zásilek povoleno Českou poštou, s. p., odštěpný Prague will not host the most powerful man of the závod Přeprava, č. j. 3468/95, ze dne 24/10/1995“ United States for the first time. The previous visit by a US President to Prague was that of Barack Obama’s Cover photo: ČTK, EU2009.CZ predecessor, George W. Bush, in 2007.

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

of other points in the document. to Russian gas supplied to Europe creat- Basically, our objective is job protec- ed psychological pressure and had hard tion – we want to bring people nearer to economic impacts in some countries. work, and not to labour exchange offi ces. A joint energy policy and limitation of And so, our priority is the side of off er; we energy dependence is an absolute must support enterprises to preserve jobs even of the European Union. at the cost of sending their people to training fi nanced by the state. Strong sup- The EU describes this year as a year port to consumption would be a mistake of creativity and innovation. What in our conditions. We have a small open do these terms mean to you in the EU economy and support to consumption context? would only increase imports and worsen When you say Europe, one of the fi rst our balance of trade, and would not help words that cross my mind – immediately to maintain jobs. It is important that most after the word freedom – is innovation. of the measures are already functioning, Capability to discover, to invent, to come because they did not have to go through with new, more eff ective and cheaper the process of legislation. manufacturing procedures, this is what Mirek Topolánek Europe means. For more than a millen- How do you rate the Czech Govern- nium, this capability has been the main ment’s activity at the head of the comparative advantage of the continent European Council to date? which does not abound in size, wealth, Our activity at the head of the European material resources, and cheap labour. And Council has clearly shown that we can so it is no wonder that we tend to return cope with the management of the agenda to these values, which helped us to attain connected with the Presidency. Our work success, at the time of the economic crisis. at the time of the gas crisis was appreciat- Support to innovation is also one of my ed by everybody. The priorities we chose personal premiership priorities. The motto for our Presidency have already proved to “sustainable growth through innovation” is be very topical in some respects. I recall not a mere empty ideological phrase, but that our 3E priorities are Energy, Economy, an urgent need. Only innovation will en- and the European Union in the world. able us to respond to the future changes in I shall make the fi nal judgment in June global demand, to seek new markets, and 2009 at the end of our Presidency. The off er products which we can sell at both most important task is, of course, counter- good and bad times – irrespective of the ing the impacts of the world crisis. This will disadvantage of more expensive labour. As you mentioned in the previous issue, be dominant in the regular sessions of the the Czech Government had established European Council and the two extraordi- Can you give examples of important the National Economic Council (NERV). nary summit meetings which I have con- events awaiting the Czech Republic in What have been the results of the NERV vened for this purpose. the role of the presiding country? activities to date? The date of the Eastern Partnership NERV has made more than 250 sugges- The discontinued gas supplies from Rus- Summit has been set for 7 May. Held tions of possible measures to counter the sia opened the question of the energy on its background will be the Southern crisis. Following talks with the ministers dependence of the EU... Corridor Troika Summit* to discuss the concerned with the economy, we framed For a long time, we have been advocates Nabucco pipeline project. Besides top- the Government’s anti-crisis plan, which of a strong joint energy policy. It is natu- ical summits, such as the informal meet- I introduced on 18 February 2009. The ral that if the European Union fails to ac- ing of the heads of state on the financial document includes twelve principles, by quire energy raw materials from diff erent crisis held early in March, we are prepar- which we were guided, and seven basic sources, its freedom and independence ing, on request of the Commission, the areas of measures. The Government then will be threatened. This is why we sup- European Union–China Troika Summit, approved a lower rate of social insurance, port the Nabucco gas pipeline project. which was postponed during the pre- reduced tax burden of enterprises, sup- It is an economic as well as a political vious French Presidency. port to business and private investment, project. I also regard it as a kind of test of regional transport service, and a number European integration. The two-week halt More information about the * The "Troika Summit" - the three negotiators are the Prime Minister or President of the presiding country, the President of the Czech Presidency is available

European Commission, and the High Representative for the Common Foreign and Security Policy at www.eu2009.cz National Bank Archives Office Czech Republic, Photo: of the Czech of the Government

| 4 ECONOMIC POLICY

Czech Economy Has Strong Foundations

There is no doubt now that the STABLE BANKING SYSTEM their foreign parent banks may of course be Czech economy will not be spared by The current fi nancial crisis is in fact refl ected in the results of the Czech subsidi- a crisis of the banking system. Certain banks aries to some degree. the crisis. This is only logical, as the in the United States and in Europe are in Czech economy is fully integrated trouble as a result of bad risk management. INDEPENDENT CURRENCY They are unable to resolve these problems AND MONETARY POLICY within the highly globalised world without the costly help on the part of gov- Through its accession to the European economy. It is a small and open ernments. So far, not a single Czech bank Union in 2004, the Czech Republic commit- economy and, as such, is eminently has displayed serious problems. Large Czech ted itself to the adoption of the euro. It has dependent on its exports, which are banks encountered similar problems in the not done so yet and will not do so in the fore- latter half of the 1990’s. At that time the state seeable future. According to Oldřich Dědek, directed particularly to the Euro- was a majority share owner. In order for the national coordinator for the introduction of pean Union, the largest countries of Government to privatise the banks at that the euro in the Czech Republic, in techni- which are at present affected by the time, it had to rid them of risk loans. The cal terms the closest possible date for the credit portfolios of these banks were cleaned introduction of the euro is 2013. The Czech crisis. However, the Czech economy thoroughly. Czech banks have thus had the economy may thus mitigate the impacts of displays certain specific traits that opportunity to learn from their mistakes. the fi nancial crisis on the real sector by weak- could in fact somewhat mitigate Since the Czech economy has been doing ening the Czech crown against the euro and well in recent years, these now mostly Czech the dollar. However, problems could occur the impacts of the financial crisis. subsidiaries of foreign banks have also been if the Czech crown were to strengthen in- These traits include a stable banking doing well. The Central-European banking stead. Since the beginning of the breakout system, independent currency and market was among those with the highest of the crisis, the Czech currency has weak- dynamics of growth. Domestic banks ac- ened markedly against both the euro and monetary policy, low government complished record profi ts at this time. It is the dollar (see Graph 1). Another possible debt, and high GDP growth in recent thus possible to expect the share of unset- advantage is the independence of monetary years. tled loans in the Czech Republic will grow policy, which allows the Czech National Bank at a slower rate than in other countries. As to respond to a certain degree directly to the it is known, the stability of the banking sys- needs of the Czech economy. If the Czech tem is crucial to every economy. However, Republic were a member of the Eurozone, we must not forget the aforementioned it would merely be a passive recipient of the fact, namely that Czech banks are a part of common monetary policy. the world banking system. The problems of LOW GOVERNMENT DEBT The Czech economy is among those with the smallest debt from among countries of the EU. This is true of both the government and households. According to Eurostat data (see Graph 2), the share of government debt in GDP in the Czech Republic reached just under 29% in 2007. The Czech Republic is thus well below the 60% limit set as one of the preconditions for the introduction of the euro. It is also very well positioned even in comparison with other member states: this same indicator for the entire EU–27 equalled 57%. If we only take into account so-called old EU–15 member states, the result is even worse: 60.4%. As a paradox, the worst result of all was displayed by the Eurozone itself: 66.6%. In a situation where governments of all countries are subject to pressures to increase government expenditure or to reduce taxes, this indicator becomes all the more important. As a result of the fi nancial crisis, we may expect the government debt of most countries to grow. In countries where this in-

5 | ECONOMIC POLICY

dicator is already high at present (the worst situation is in Italy, Belgium, and Greece), the crisis may lead to further considerable increases in expenditure on interest payments with a nega tive impact on economic growth. Since the Czech Republic has no cases of bank rescues by the state, nor any cases of bank national isation as in the United States and elsewhere in Europe, the fi nancial crisis should not lead to any sharp increase of this indicator.

HIGH GROWTH AND LOW UNEMPLOYMENT IN RECENT YEARS In the last 5 years, the Czech Republic has experienced high GDP growth and a drop in unemployment. The massive infl ux of foreign direct investment has considerably contributed towards kick-starting long-term economic growth. Foreign investors have signifi cantly increased the competitive strength of Czech businesses. The balance of trade had displayed large long-term defi cits until 2005, when it swapped to a surplus. This fact is especially noteworthy, considering the result was accomplished while the Czech crown strengthened sharply against both the euro and the dollar. In May 2000, for instance, the exchange rate of the Czech crown reached CZK/EUR 37 and CZK/USD 41, while in 2008 it reached as much as CZK/EUR 23 and CZK/USD 15! The current account of the balance of payments as the main indicator of the external balance of an economy has resulted each year in a slight defi cit,

GRAPH 1: CZK/EUR EXCHANGE RATE IN 2008 28

27 26

24 23

22 CZK/EUR 21

20 02/01/2008 16/01/2008 30/01/2008 13/02/2008 27/02/2008 12/03/2008 27/03/2008 10/04/2008 24/04/2008 12/05/2008 26/05/2008 09/06/2008 23/06/2008 07/07/2008 21/07/2008 04/08/2008 18/08/2008 01/09/2008 15/09/2008 29/09/2008 13/10/2008 27/10/2008 11/11/2008 26/11/2008 10/12/2008 29/12/2008 Source: Czech National Bank Photo: PhotoCombo Photo:

| 6 CZECH BUSINESS AND TRADE

of 10 million). At present, there are three major GRAPH 2: SHARE OF GOVERNMENT DEBT manufacturers of passenger vehicles operating IN GDP IN EU MEMBER STATES IN 2007 120 in the Czech Republic – Škoda Auto in Mladá Boleslav, the TPCA consortium (Toyota, Peuge- 100 ot, Citroën) in Kolín, and Hyundai in Nošovice. The fi rst two afore-mentioned companies have 80 been an important driving force behind the growth of the Czech economy in recent years. 60 In addition to passenger vehicles, the Czech Re- public also manufactures Karosa buses as well 40 as Tatra and Avia trucks. The share of commod- ity group Machinery and Transport Equipment 20 of the international SITC (Standard Internation- al Trade Classifi cation) on total Czech exports is 0 close to 60%. During crises, it is unfortunately typical for households and companies to sig- Italy EU15 Spain Malta Latvia EU-27 nifi cantly reduce the purchase of new vehicles. France Ireland Austria Cyprus Poland Greece Estonia Finland Bulgaria Slovakia Sweden Belgium Slovenia Portugal Hungary Rumania Germany Lithuania Denmark This eff ect has already manifested itself fully. Netherlands Luxembourg All our manufacturers have begun to cut back Czech Republic Czech

Source: Eurostat KingdomUnited production. Automobile manufacturers may thus become a “ball and chain” around the feet which is, however, entirely due to the in- these negative impacts, the Czech econ omy of the Czech economy. come balance, a logical consequence of the displayed year-on-year real GDP growth of massive infl ux of investment in recent years. 4.2% in the third quarter last year. CZECH ECONOMY Foreign investors in the Czech Republic have Besides these so-called positive specifi cs, HAS STRONG FOUNDATIONS naturally invested for the purpose of gener- there are naturally also certain negative spe- Although it is not possible for the Czech Re- ating profi t and a part of this profi t is subse- cifi cs necessary to mention for the sake of public to become an island of growth amidst quently transferred abroad. If the current ac- objectivity. These include in particular the an ocean of recession, there are still many count balance does not surpass 5% of GDP, high degree of openness of the Czech econ- reasons to believe the impacts of the fi nan- generally economists consider such a result omy and the high share of the automobile cial crisis will be more moderate here than sustainable in the long run. In 2007, this industry in both exports and GDP. in other countries. As mentioned above, cer- fi gure reached 1.8% in the Czech Republic, tain eff ects can in fact be positive. The Czech whilst in 2004 it still equalled 5.2%. HIGH DEGREE OF OPENNESS economy has strong foundations and should OF THE CZECH ECONOMY be able to withstand negative external SLOWDOWN WAS DESIRABLE The Czech economy is a typical small open forces. In 2009, the Czech Republic will evi- In the fi rst half of last year, the Czech econ- economy. The share of exports of goods and dently and inevitably experience stagnation, omy began to display certain signs of over- services in GDP reached 80% in 2007. This however, if the world economy does not heating. The labour market began to fully dependence on exports is the main channel encounter any further unforeseen problems, display a lack of available labour. Unemploy- via which recession is imported to the Czech the Czech Republic could avoid recession. ment dropped to 5% and many companies Republic from the countries of our business For the present, Czech households continue experienced problems in hiring new em- partners. Since our main partner in trade is the to trust in the economy. The fall in consump- ployees. Furthermore, infl ation pressures EU, where some of the so-called old member tion has thus only been slight. In view of grew stronger, partly as a consequence of countries (EU-15) are in recession, it is clear the above facts, the Czech Republic could the growth of salaries and partly due to the our exports to these countries will drop. This emerge from the crisis relatively stronger record increase in prices of raw materials will inevitably be refl ected in a lower rate of and could improve its position in the world in the world economy. If this trend were to GDP growth. It is therefore possible the Czech economy. What remains unclear, is to what continue, the Czech Republic would indeed Republic will also near recession in 2009. For degree we will be aff ected by the crisis of the face the risk of overheating with a negative the present, even the most pessimistic of sce- automobile industry. Nonetheless, foreign impact on the real economy. The increase narios speak at most of stagnation. investors will certainly fi nd interesting op- in salaries and other costs was so rapid that portunities at favourable prices at this time. certain foreign investors began to openly HIGH SHARE OF AUTOMOBILE express their intentions to transfer to less INDUSTRY IN BOTH EXPORTS Pavel Žamberský expensive countries. As a paradox, the fi nan- AND GDP Department of World Economy cial crisis thus aff ected the Czech Republic The Czech Republic is a country with an unusu- University of Economics, Prague at a time when a certain slowing of the ally high number of automobile manufacturers (e-mail: [email protected]) economy was in fact desirable. In spite of considering the size of the country (population www.vse.cz

7 | KALEIDOSCOPE

The Czech Republic Faces Up to Crisis

The current financial and economic THE CZECH REPUBLIC: STATEMENT OF THE CZECH SPECTACULAR PROGRESS IN NATIONAL BANK crisis has caught most countries TRANSPOSING EU DIRECTIVES On 9 February 2009, the Financial Times and businesses completely un- Another positive fact, besides economic published an article called “Scare warns of prepared. Although the Czech indicators, is that the Czech Republic has potential quake ahead“, with tables showing Republic, too, has been affected by made remarkable progress in transposing fi gures for selected countries. A table titled EU legislation. In February, the European “Foreign banks’ lending to Czech Rep” states the development of the economic Commission, in its document, Internal that foreign banks’ loans to the Czech Repub- situation, especially because of Market Scoreboard, monitoring the im- lic amounted to USD 192 billion (around CZK the great openness of its economy plementation of European directives by 4 trillion) as at 30 September 2008. CNB re- member states, described the Czech Re- gards this table and also the accompanying and its export dependence on public’s progress in transposing EU direc- text as grossly misleading. According to CNB surrounding countries, accord- tives as spectacular in comparison with statistics, which are in line with international ing to the February report by the the previous period (only 1.4% of the standards, the Czech Republic’s debt vis-à-vis directives are yet to be implemented). foreign banks is USD 38 billion. The diff er- Standard & Poors rating agency, The Czech Republic now ranks ahead of ence between the real situation and the data titled “Market Dislocation Exposes Cyprus, Greece, Portugal, Poland, Luxem- in the article seems to have been caused by Vulnerability Of Eastern European bourg, and Belgium. misinterpretation of the source statistics. The source was the Bank for International Settle- Economies”, the Czech Republic MISLEADING INFORMATION ments (BIS), which consolidates the balance has a good chance of surviving IN FOREIGN PRESS sheets of international banking groups. These the current global crisis better Financial turbulence need not be the only balance sheets consist of the balance sheets accompanying phenomenon of the existing of local banks owned by such groups in diff er- than most of the countries in the crisis and may be exacerbated by the failure ent countries. The USD 192 billion in question region, thanks to resilient private of the human factor or by mistakes. thus corresponds roughly to the sum of the consumption and relatively strong An example is the repeated false informa- balance sheets of Czech banks owned by for- tion about the Czech Republic in the foreign eign banks at the date under review. As most economic foundations. press – for example in The Financial Times domestic banks are foreign-owned, this fi gure and The Economist, which reported particu- in fact represents almost the sum of the bal- larly on this country’s high foreign debt and ance sheets of the Czech banking sector. At claimed that the Government was encour- the end of 2008 H1, the aggregated balance aging households to foreign currency bor- sheet was EUR 164.4 billion (CZK 4.1 trillion), rowing. We therefore publish the statement which roughly corresponds to the amount of the Czech National Bank (CNB) on those mentioned by the Financial Times. Naturally, distorted articles. the volume of loans provided is smaller than

CREDIT-TO-DEPOSIT RATIOS IN SELECTED EU STATES (%) 180

150 2005 2006 120 2007

0 MALTA LATVIA CYPRUS POLAND ESTONIA SLOVAKIA ROMANIA SLOVENIA BULGARIA HUNGARY LITHUANIA EU AVERAGE EU CZECH REPUBLIC CZECH

Source: European Central Bank Photo: PhotoCombo Photo:

| 8 CZECH BUSINESS AND TRADE

the banks’ balance sheet. According to CNB data, total borrowing of households and corporations from banks was around EUR 64.15 billion (CZK 1.6 trillion) at the same date, and the overwhelming part of the loans, in addition, was drawn in Czech crowns. Although the borrowers are foreign-owned banks, they operate under the Czech Act on Banks and are supervised by the Czech banking supervi- sor. Contrary to what the FT article suggests, therefore, not even this substantially lower fi gure can be interpreted as an indicator of the Czech fi nancial sector’s foreign liabilities. It represents the volume of loans provided by Czech banks to Czech economic agents, mostly denominated in the Czech crown and fi nanced by deposits in the same currency. All conclusions regarding the exchange rate or other cross-border risks drawn on the basis of these misinterpreted fi gures are therefore completely groundless and misleading. The Leader published by the Economist on 21 February 2009 and titled “Argentina on the Danube?” mentions the Czech Republic as one of the countries whose “tumbling currency“ is causing “an agony of households that have mortgages in Swiss francs or euros”. We would like to stress that there is no such problem in the Czech Republic and that the foreign borrowing of Czech households is a negligible 0.1% of total household borrowing. This con- servative behaviour of Czech households is a direct consequence of the fact that interest rates in the Czech Republic have mostly been lower than the Eurozone interest rates for the last few years and thus Czech crown-denominated loans have been cheaper. In the context of the article, which focuses on the dangers of foreign credit being “gobbled up” by banks in Central and Eastern Europe, we would like to draw attention to the fact that Czech banks, REAL GDP ANNUAL PERCENTAGE INCREASES IN THE CZECH REPUBLIC which are mostly owned by European groups, have never needed credit from other coun- 2000 2001 2002 2003 2004 2005 2006 2007 2008 tries, since they have fi nanced their loans 3.6 2.5 1.9 3.6 4.5 6.3 6.8 6.0 3.2 from the deposits of Czech savers. The loan- to-deposit ratio in the Czech banking sector, Source: Czech Statistical Office which currently stands at 77%, is among the lowest in the EU. In the overwhelming major- One of those alleged errors was encouraging rates on domestic currency loans. As markets ity of cases, Czech banks are net creditors and households to borrow in foreign currency. We are sensitive to inaccurate data at the time of not net debtors of the European groups they dare to point out that neither Czech politi- fi nancial crisis, this misleading interpretation belong to. cians nor Czech central bankers have ever en- could confuse investors and the general pub- On 23 February 2009, the Financial Times couraged Czech citizens to do any such thing. lic. Therefore, CNB deems it necessary to cor- published a commentary called “Eastern cri- As mentioned above, Czech citizens have not rect the aforementioned inaccuracies. sis that could wreck the Eurozone”, whose borrowed in foreign currency, as they have author singles out two policy errors made by had no motivation to do so, thanks to the Note:The average 2008 CZK/EUR exchange rate was used for ori- governments in Central and Eastern Europe. long-standing environment of low interest entation conversions.

9 | KALEIDOSCOPE

Prague: Place Suitable for Business Prague has been rated as the 19th most suitable European city for opening a business in a study of the Cities Monitor 2008 published by Cushman & Wakefield. London was placed first, followed by Paris and Frankfurt. The study recognised in particular the progress Prague had made in the improvement of the business environment. Together with Barcelona and Madrid, Prague is regarded as a city which has done much to improve its business envi- Czech Economy Is Approximating EU ronment, according to the study. Its poll included 500 European com- The Government of the Czech Repub- and partial improvement is apparent in panies. The Top City Destinations lic will not determine the euro adoption some other fi elds of the Czech economy. in the 2007 study, which compared target date for the time being. This deci- According to Eurostat data, the per capita the attraction (number of tourists) sion has been made on the basis of the Purchasing Power Standard (PPS) in the of cities, said that Prague was the analysis of the Maastricht Convergence Czech Republic is 80% of the EU average. seventh most visited city in Europe. Criteria fulfi lment, and the degree of the The economic level of the Czech Repub- Worldwide, Prague was placed 23rd economic harmonisation of the Czech lic (per capita GDP according to PPS) is among the 200 monitored cities. Republic. The report showed progress in higher than that of Portugal, a member of the fulfi lment of the criteria in 2008 and the original EU-15, which is 76% of the EU partly also in economic harmonisation, average. but the current world fi nancial crisis is a temporarily unfavourable factor in view Assessment of the fulfi lment deal – funding of course, but also back- of the future euro adoption. Among oth- of the Maastricht Convergence ing for research and access to the most er eff ects, it increases the volatility of the Criteria and the degree of the proficient people. Due to the cluster, CZK exchange rate, and fulfi lment of the economic harmonisation of the dozens of these small enterprises will exchange rate criteria could be very dif- Czech Republic with the euro area commence more intensive co-opera- fi cult after accession to the ERM II. Com- The Ministry of Finance of the Czech tion, and have a much better chance pared with the previous annual reports, Republic and the Czech National Bank of doing well on the world market,” a change for the better came about in issue an annual report on progress Rudyšarová continued. the assessment of public fi nance. The in the creation of conditions for euro First of all, the cluster will offer all en- outlook for the future of public fi nance adoption. The report monitors, inter alia, terprises and researchers regular meet- price stability, the sustainability of pub- predicts defi cits to be maintained well ings to exchange experience. The man- lic finance, the exchange rate stability, below three per cent. As to the economic and long-term interest rates. The report agers of the new association take this as harmonisation, the gap between the is available at the end of every calendar a mere beginning. Czech and the average economic level year at www.cnb.cz or www.mfcr.cz. For example, the companies associ- of the euro area is gradually narrowing, ated in the cluster will have the opportunity to present joint projects to many programmes of the European Union. The most ambitious target is the estab- First Biotechnology Cluster Established lishment of a National Biomanufactur- ing Centre in the Czech Republic. The Czech Republic established its first Clusters of biotechnological firms are This will require a huge investment biotechnology cluster in December 2008. customary in countries such as Germa- of time, funds, and experience. The CzechBio will associate about thirty suc- ny and the United Kingdom, and a bio- manufacture of any biotechnological cessful firms of the sector plus a dozen technology cluster exists in Poland,” says substance must be certified by such academic and research institutions. The Ms Alexandra Rudyšarová, Managing Di- a centre. However, there are only a few objective of the cluster is improvement rector of the CzechInvest agency. of them in Europe, and the establish- of the research, development, and sale “A number of very promising small ment of this facility will be a boon to of Czech biotechnological products. biotechnological enterprises are oper- Czech and Central European enterpris- “The Czech Republic had noticeably ating in the Czech Republic, but accom- es, as it will help and accelerate the de-

been missing such an organisation. plishment in the sector needs a great velopment of new curative substances. CzechTourism Photo:

| 10 INVESTMENT

Experience with Business in the Czech Republic

Hill International provides complete there is a demand for innovative tion of a client approach. Support to personnel consulting in 20 countries products. business in the Czech Republic has already reached a good standard on the of Europe and ranks among the Are there some specific features of whole. As in other developed countries, largest personnel consulting groups trade negotiations which a foreign things can always be improved. But it is on the continent. Mr David Petrů, visitor should expect during talks with important that the Government is striv- Czech partners? ing for a change to, and gradual reforms Managing Director of the company, In general, West European standards are of, some systems that do not operate has experience in Hill International observed in the Czech Republic. Trade effectively. operations in several countries. We talks are held at the personal level to a greater extent, and I see this as specific What advice would you give to some- spoke to him about the business en- to Czech culture. Personal and profes- body who intends to open a business vironment in the Czech Republic and sional roles are often intermingled in the or to work in the Czech Republic? its comparison with other countries. Czech Republic. I recommend that they pay greater at- The Czechs differentiate their working tention to the drafting of contracts and life from their private life to a lesser ex- not rely on practices in their own coun- tent than other nations. tries. For example, in contrast to Anglo- Saxon cultures, it is not a custom in the Has any recent event facilitated busi- Czech Republic to proceed in negoti- ness in the Czech Republic? ations with a new partner from a verbal The business environment is improv- arrangement, but rather to have a writ- What are, in your opinion, the advan- ing gradually. The Government’s en- ten agreement. In general, I would say tages of the business environment in deavour to simplify administration has that entrepreneurs find orientation in the Czech Republic? been reflected positively in many areas. Czech law difficult, and I would certain- Competition in some branches is less Also apparent are improved contacts ly recommend foreign entrepreneurs to keen than in Western countries, and with state bodies, and the introduc- contact a solicitor in all legal matters.

Free Enterprise for Europe in the 21st Century

An International European Conference on SOCIAL ECONOMY public (social) and private sectors, discussion AND ENTERPRISE on the possibilities of social economy to allevi- Social Economy and Social Enterprise takes The European Commission supports the de- ate the impacts of the global economic crisis, place from 16 to 18 April 2009 as part of the velopment of social enterprise. The impulse on public procurement, the participation of so- offi cial programme of events under the Czech for the 2009 conference in Prague came out cial enterprises, infrastructure for their support Republic’s Presidency of the EU Council. “Europe of discussions between representatives of the and possibilities of their preferential treatment. Czech Republic, France, and Sweden in the The list of all workshops and their themes, and without Barriers” has been the symbolic motto European Economic and Social Committee. detailed information about this European con- of the Czech Republic since the beginning of An important conference on the social econ- ference are available at www.seconference.cz. preparations for its Presidency. In the spirit of omy was therefore held under the French The conference is open to the public and regis- Presidency of the EU Council in 2008 in Stras- tration forms are on these websites. this motto, the objective of the conference is bourg. The Swedish Presidency also plans to the contribution to the elimination of cultural hold a similar conference in October 2009. ORGANISERS and value barriers for citizens, entrepreneurs, The theme of the conference is very topical, The organisers of the conference are the as the current global economic crisis can be Union of Czech Production Co-operatives, the and economic entities. The main theme of a threat and opportunity for social solidarity Co-operative Association of the Czech Repub- the conference is “Social Economy and Social and social enterprise. lic, the Confederation of Employers' and Entre- Enterprise for Europe in the 21st Century”. The preneurs’ Associations of the Czech Republic, WORKSHOPS and the Ministry of Labour and Social Aff airs theme is also winning deserved attention in The objectives of several workshops arranged of the Czech Republic. The event is held under the Czech Republic. in the framework of the conference include the aegis of European Commissioner Vladimír a boost to the debate on partnership of the Špidla and Prime Minister Mirek Topolánek.

11 | INVESTMENT

Effective Protection of Investment in the Czech Republic

In the period of almost 20 years Since foreign investment is pos- easier than it is at present. The free since the change in its political sible in the Czech Republic either movement of persons, goods, services, indirectly, i.e. by involvement in Czech and capital has been complemented system, the Czech Republic has corporations, or directly by the estab- with free movement of the rulings developed into a modern European lishment of an enterprise or organising of courts and official documents. Di- country. The state of its economic unit, foreign investment must be given rect communication of judicial bodies, due protection. the possibility of submitting requests and legal environment has been It is a matter of course that, in addition and other paperwork in several Euro- fully stabilised, and is now com- to the creation of favourable conditions, pean languages and, in particular, the parable to the standards in other the Czech Republic gives investors regular, simplified legal adjustment of the en- equitable, and just treatment and full legal forcement of claims and exercising of countries of the European Union, safety, and protects them from interference rights have brought the European na- of which it is a member. with and limitation of their ownership. tional judicature nearer the creditors These valid and enforceable commitments – investors. of the Czech Republic to foreign investors The Czech Republic has thus joined primarily ensue from bilateral agreements the countries which long ago elimi- on the protection and support of invest- nated barriers to the ”transferability” of ment, which the Czech Republic has con- the rulings of their judicial bodies. In cluded with almost 80 countries. the future, the Czech Republic will regard court rulings issued in Italy, France, ENFORCEABILITY Germany, and other EU countries as its OF RIGHTS IMPROVED own and vice versa. Czech ruling will The enforceability of the rights and be equivalent to any ruling issued by claims of foreign investors greatly im- a court of another member country. proved when the Czech Republic ac- ceded to the European Union and EASIER ORIENTATION European legislation could be used IN LEGAL REGULATIONS in this country and was obligatory for The fact that rulings issued in one mem- state bodies as well as private entities. ber country are recognised and eff ect- The Czech legal environment was thus ed in other member countries without opened and especially unified with the need for further lengthy proceed- the legal environment of the other EU ings, and that bankruptcy proceedings countries. Investors can rely on uniform involving other member countries are legal institutes and identical legislation guided by the same rules, makes it much previously known to them in their home easier for creditors to orientate them- The Czech Republic is aware that the countries or other EU countries. selves in a jungle of legal regulations, and sources of values and wealth of society The legal regulations of investment allows legal specialists to practise their include business. And so it exerts con- protection and support in the form of profession irrespective of state borders. stant endeavours to create and improve international agreements are now com- Last but not least, the aforementioned a suitable, simple, transparent, and non- plemented with the uniform legal ad- unification contributes to cross-border discriminating business environment, justment of the enforcement of claims, business and ultimately to the creation including conditions for foreign invest- uniform rules for the determination of of a single European area. As a member ment, which is an indispensable part of jurisdiction, simplified procedures in of the European Union, the Czech Re- the globally connected economy. the delivery of official documents and public is actively involved in the pro- evidence proceedings, and a uniform cess, is its part and co-creator. FOREIGN INVESTMENT adjustment of European bankruptcy PROTECTION proceedings. This legal ”dualism” stem- Support to foreign investment is refl ected ming from international and European in the legal adjustment of investment in- law is being rapidly eliminated by the centives, which is based on European leg- harmonisation of Czech and European Robert Němec islation and allows support to specifi ed legislation. Zuzana Tučková types of investment by measures such as Ondřej Čech reduced Income Tax, transfer of technically CLAIM ENFORCEMENT Karel Jandus equipped areas and sites at lower prices, IS EASIER Law firm and material support to job creation or the Claim enforcement between countries PRK Procházka Randl Kubr, Prague

requalifi cation of employees. of the European Union has never been (e-mail: [email protected]) PhotoCombo archives, FACEA Photo:

| 12 In this section, we present and follow interesting success stories of export projects implemented by Czech businesses from CZECH TOP a variety of industry sectors; success that is, for the most part, founded on remarkable feats of research and innovation. We also introduce examples of important foreign investment projects carried out in the Czech Republic.

Innovation for the Automobile Industry

PATENTS FOR THE EXPANSION AUTOMOBILE INDUSTRY TO THE CHINESE MARKET FACEA is a signifi cant innovator of lock In accordance with the company’s strat- cylinders. It has developed one of the egy, a branch was opened in China last most widespread locking systems in the year. ”Zhejiang Facea Vehicle Locks Co., automobile industry. This patented sys- Ltd.” manufactures, in the neighbour- tem of split cylinder door lock and axial hood of the sister company Baodean, freewheeling clutch is highly resistant lock systems for the Chinese market. to all kinds of intrusive attempts. For this reason, this technical arrangement of the FACEA COMPANY system of lock cylinders has been inte- FACEA is a part of the ASSA ABLOY Group, grated into the locking systems of many which associates more than 150 com- automobiles manufactured in the Czech panies of 40 countries of the world. FA- Republic, as well as in Germany, Spain, CEA has been the trademark of the newly and the United Kingdom. formed ASSA ABLOY Car Lock Group since 2006. The company is drawing upon and MORE THAN LOCK developing the long experience of FAB, FACEA is a market leader in locking CYLINDERS s.r.o. in the Czech Republic and CE Mar- systems for safeguarding and con- The endeavour to reduce costs in the shall Ltd. in the United Kingdom. FAB has trol in the automobile industry. Dur- automobile industry has dictated the been making locks throughout its exist- need to manufacture unifi ed standard ence and, in 1958, increased the range ing the period of its existence, the keys, which in most cases do not refl ect of its products with lock systems for the company has become a supplier to the image of a specifi c make of auto- automobile industry. It gradually became Volkswagen, Ford Motor Company, mobile. FACEA is not only focused on the exclusive supplier of cylinder locks these low-cost products, but also off ers for the entire automobile industry in the and other prestigious makes. unique solutions for diff erent automobile then-Czechoslovakia. CE Marshall Ltd. models. For example, FACEA supplies was established in 1942 and gradually a key of a special design for Bentley au- consolidated its position as the leading tomobiles. The FACEA team is designing supplier of lock systems for the automo- new keys in co-operation with the design bile industry on the UK market. studios of clients and external independent design studios. More at www.facea.eu

Honeywell Expands Production in the Czech Republic

Honeywell, the US engineering giant, gines with turbochargers since May 2008. will move a part of its aircraft engine “The local engineers are exceptionally well component manufacture from Arizona to educated,” Katherine Adams, the compa- the Czech Republic and Mexico. The trans- ny’s chief lawyer, explained why Honeywell fer involves a total of some 700 jobs. In the was considering the Czech Republic. Czech Republic, Honeywell will expand manufacture in Hlubočky in the Olomouc HONEYWELL area. One of the reasons for the transfer of IN THE CZECH REPUBLIC a part of the production to the Czech Re- Honeywell has been operating in the Czech public is lower costs. Republic since 1993, when it opened a development centre in Prague, the fi rst of its kind DEVELOPMENT CENTRE outside the US territory. In 2003, the company EXPANSION opened a development centre in Brno. Hon- The company is considering the expansion eywell has invested approximately EUR 100 of its development centre in Brno, which million in the Czech Republic since 2002 and has been testing diff erent kinds of large en- has about 2 700 employees in this country.

13 | YOUNG STARS

Radiography: International Acclaim for Czech Scientists

Czech scientists are a part of Medipix, Roentgen Radiography is a technique lae of various colours appear in the picture an international collaborative effort, for viewing the inner structure of along with the stars. If there are any similar objects, and it has spread to a number of fl aws present in images of an examined ob- administered by CERN to develop industries. Its applications for diagnostic ject, they can be erroneously identifi ed as image sensors for Radiography. purposes in health care are among the best part of its inner structure. These devices can visualise the inner known. The industrial sector primarily applies Radiography to quality control (casts, NEW TECHNOLOGY: structure of objects with quality not welds, electronic components, printed cir- SEMICONDUCTOR PIXEL reachable by currect techniques. cuit boards, materiology, and many others). DETECTORS Application of this technology will Security systems are a relatively new appli- Ongoing development in the area of semi- cation for radiographic techniques (search- conductor technologies allows for the be mainly in health care, science, ing for explosives, weapons, and radio active construction of brand new image sensors. and industry. Research results of the materials). Even though the principle of These are known as semiconductor pixel Czech team from the Institute of Ex- Radiography has been known for over 100 detectors. The image information they pro- years, the industry is experiencing enor- vide is fully digital and images do not con- perimental and Applied Physics were mous growth today, thanks to the onset of tain any additional noise or fl aws. A pixel recognised with two awards at the new technologies. detector also allows for upfront selection prestigious worldwide conference, of radiation energy to be registered, which CONTEMPORARY makes it possible to perform the so-called IEEE Nuclear Science Symposium (Jan RADIOGRAPHIC IMAGE SENSORS Colour Radiography very easily. By Colour Jakůbek: Portland, USA, 2003, Michal Contemporary modern digital radiographic Radiography, diff erent materials are shown Platkevič: Dresden, Germany, 2008). systems mainly use detectors based on the in diff erent colours (it is thus possible to dif- CCD (Charge Coupled Device), or the so- ferentiate, for example, between fat tissue The Prague team‘s contribution was called Flat-Panel. These devices are very and muscle tissue, or individual metals from rewarded for the best presenta- similar to the sensors used in digital cam- plastics when viewing the images). tion at the Imaging Technologies in eras. Their great advantage is their simplic- ity, which allows for the construction of MEDIPIX PIXEL DETECTORS Biomedical Sciences conference in inexpensive sensors with a large number Sensors of the Medipix family are an example Greece. The team members are often of pixels. However, the device has certain of semiconductor pixel detectors. The sen- invited by scientific committees of limitations. It does provide digital output, sors are developed through an international but the recording is basically analogue. This collaborative eff ort, Medipix (www.cern.ch/ international conferences to present shortcoming is exhibited by the presence medipix), managed by CERN in Switzerland, their results (the USA, New Zealand, of fl aws and noise which decrease image and twenty associated research institutions Germany, Italy). contrast. We all know the result of photo- and universities from Europe and overseas. graphing night sky with a digital camera: Two Czech institutions are members. One A number of false constellations and nebu- of them is the Institute of Experimental and Applied Physics at the CTU in Prague (IEAP). The IEAP uses Medipix detectors to develop new imaging methods working with diff erent types of radiation (such as Roentgen, electrons, neutrons, alpha particles). The Roentgen radiographic system developed at this institution supports, thanks to its high sensitivity and the absence of noise, extremely high contrast, and a very high resolution. This opens the door to imaging structures of objects that could not be viewed previously by Radiography. For example, in Biology this could be the imaging of soft tissue structures down to the level of individual cells. In industry, it could be, for example, the imaging of light mate- Roentgen image of the pelvis of a live mouse taken by the Medipix detector. There is good vision of bone, as well as soft tissue struc- rial structures inside heavier materials, such tures. The extreme contrast is demonstrated by the image in the small circular cut-out. It shows an uninteresting part in the vicinity as glued joints or composites. Imaging may of the pelvic bone. The structure which can be seen in the cut-out is the projection of fur from the surface of the mouse. This means the pixel detector can see a thread of fur through the entire body of a mouse. Such quality is absolutely unique. be very fast, which allows for the viewing

of dynamic processes (such as the spread Institute archives and Experimental Physics Technical Photo:

| 14 CZECH BUSINESS AND TRADE

CERN, the European Organization for Nuclear Research, is the world’s largest research centre for Particle Physics. It was founded in 1954 and, since that time, this laboratory, which was the fi rst of such a common European under- of material damage while applying a load). flight. This method of measurement has taking, has been a shining example of A radiographic system also makes it pos- great application potential in Dosimetry successful international co-operation. sible to perform a 3D tomographic recon- (a discipline concerned with measuring The laboratory is located on the French- struction (CT) in high resolution. radiation doses). Every workplace with Swiss border to the west of Geneva. Owing to the device‘s small dimensions ionising radiation must be equipped with CERN equipment is used by about 6 500 and thanks to its ease of use (it can be con- dosimeters to monitor the level of radia- scientists - which is half of all particle physicists in the world. The scientists nected to any computer through a minia- tion. Therefore, it can be encountered in represent 500 universities and other re- ture USB interface developed within IEAP), company production lines or at airport search facilities and over 80 nationalities. it is possible to perform measurements security baggage checks. The dosimeter The Czech Republic has participated in truly everywhere. For example, cosmic ra- developed in IEAP is capable of discern- its activities since 1993. diation was measured while travelling in ing not only the number, but also the type More at www.cern.ch Economy Class of a commercial jet, or in of particles, and provides much more ac- the vicinity of fuel cells inside a nuclear re- curate information than the existing sys- actor. There are also many possibilities for tems. Even NASA has expressed interest in tiations in Prague and in CERN concerning the utilisation of pixel detectors in school these dosimeters. the use of this technology. We can expect Physics classes. the described detectors to be used more PUTTING IT INTO PRACTICE and more in industry. NASA ALSO The first to use Medipix detectors in its INTERESTED IN DOSIMETERS products was Panalytical, to construct Jan Jakůbek Pixel detectors also allow for the monitor- Roentgen diffractometers. “MARS Bioim- Project Leader ing of tracks left by individual particles in aging” started to develop a CT system for Institute of Experimental the detector and, based on their shape, viewing small animals with the Medipix and Applied Physics, determining the type of particle, its en- detectors. “Philips Healthcare”, the medici- Czech Technical University ergy, and often even the direction of its nal technology giant, has started nego- www.utef.cvut.cz

15 | SERVICES

Personnel Agencies Provide Valuable Services

Personnel agencies in the Czech The standards of personnel agencies Republic – what are their standards operating in the Czech Republic and the way they work are basically the same as and how do they work? … These in West European countries. Global players are questions often asked by po- have been present on the Czech market for tential clients coming to the Czech more than 15 years and the procedures and standards of their services are the same as Republic from neighbouring, as well those provided by their parent companies. as more remote, countries. The main The diff erence a foreigner may notice is tasks of these agencies are to help their excessive number. There are 2 200 personnel agencies registered in the Czech Re- job seekers find their bearings on public and up to 25 licence applications for the labour market and those compa- new agencies are fi led every week. Accord- nies looking for a suitable candidate ing to the Association of Personnel Service Providers (APPS), which brings together for a certain position to choose an the largest agencies in the Czech Repub- agency offering good services to lic, APPS members mediate employment find the right person. for more than 100 000 job seekers annually and their turnover is EUR 100 million a year. capital power and fi nancial stability is rec- As a result of the large number of personnel ommended – some agencies are in arrears agencies, their work is not under such strict with the payment of wages to workers, state control as is usual in West European which aff ects their work morale. It pays to countries, and therefore caution is recom- co-operate with members of associations mended when seeking their help. bringing together diff erent agencies, as being a member of an association guarantees HIGH-STANDARD ethical behaviour on the labour market. PERSONNEL AGENCIES An advantage is co-operation with a stable Personnel agencies providing high-stand- international agency, where correctness ard services have certain characteristic fea- and the existence of control mechanisms tures and they can be classifi ed according and a quality control system are to be ex- to type. Most of them supply would-be em- pected, although the costs may be a little ployees for both permanent and temporary higher. On the other hand, a low price employment, for all types of working posi- may mean a not too particular choice of tions. There are also agencies specialising in employees. executive search or in narrowly specialised branches (IT specialists), and agencies ori- OUTSOURCING ented exclusively to temporary workers. While, in the area of core activities, companies give priority to permanent employees, CHOICE OF AGENCIES subsidiary work is often delegated. Compe- How to proceed to fi nd the right agency? tition and eff orts to reduce costs to a mini- First and foremost, it is necessary to look for mum urge companies to cut down on their references, that is to ask questions and fi nd staff and only to retain specialists directly out whether clients in the particular region infl uencing their core business, i.e. top man- are satisfi ed with the agency’s services. At agers and key employees. Basically, it does the same time, verifi cation of the agency’s not pay to employ hundreds of people in service functions, keep a large administra- ASSOCIATION OF PERSONNEL SERVICE PROVIDERS tive staff , people working in production or seasonal workers in times of peak demand. The Association of Personnel Service Providers (APPS) was established in 2002. It is an independent voluntary special-interest organisation. Its imme- You would hardly fi nd a fi rm, even in the diate aim is to create conditions for the successful development of a stable Czech Republic, where, for example, the labour market in the Czech Republic. APPS supports the professional gate-keeper would be a regular employee. growth of its members; it propagates consulting activities in the area of per- The same applies to catering and a number sonnel management, provides its members with information and consult- of other service departments. A mere glance ing services and materials, and organises joint events and conferences. at companies in industrialised European More at www.apps.cz countries will reveal that human resource

outsourcing is becoming widespread, with PhotoCombo Photo:

| 16 CZECH BUSINESS AND TRADE

come just to get a rubber stamp on their companies may pick, at a relatively low cost application form, knowing in advance that in comparison with West European states, they will not take the job, and the company from among those fi nding themselves at will waste two weeks without fi lling a single a loose end. Gaining and maintaining loyal position. employees has great value, both in a time of crisis and, especially, after it. A good person- CURRENT TRENDS ON THE nel agency may help start a good business. CZECH LABOUR MARKET In the past five years, a large number of Jaroslava Rezlerová investors have come to the Czech Repub- Vice-President, Association of Personnel lic, where they have built their production Service Providers plants. All these firms, whether they op- erated in the car industry or in electrical engineering, or whatever, were looking WHAT YOU SHOULD KNOW for the same kind of people, so that the ABOUT EMPLOYMENT IN labour market soon became exhausted. THE CZECH REPUBLIC There is a shortage of technically edu- Besides personnel agencies, foreign A list of personnel agencies can businessmen may fi nd it helpful to use yet cated people, both university graduates be found at http://portal.mpsv. other worker recruitment possibilities. Re- cz/sz/obcane/zpr_prace (pro cess engineers, quality engineers…) cruitment by advertising on Internet serv- and apprenticed workers (welders, tool- ers is widely used in the Czech Republic. makers, machinists, locksmiths…). There agency employment accounting for up to has been a situation where companies Price of advertising positions on work 6% of the total number of employees. Ac- were unable to fill even unskilled worker portals for a period of 2 weeks cording to APPS estimates, about 100 000 positions. This is when agencies came in Name of portal Price in EUR people, or 2% of the productive population, and began importing workers from Slo- www.prace.cz from 92 are employed through agencies. vakia, Poland, and the Ukraine. In the last www.topjobs.cz from 44 quarter of 2008, the situation changed www.idnes.cz 40 TERMS AND CONDITIONS slightly in connection with the financial www.profesia.cz 54 www.jobs.cz 197 APPLYING TO AGENCY crisis and the slowing down of the car in- EMPLOYEES dustry, the leader of the Czech economy. The Employment Act lays down the obli- Tens of thousands of people lost their WHAT CZECHS VALUE gation for agency employees to be grant- jobs, with foreign agency workers being MOST ABOUT WORK ed “comparable remuneration conditions”. hit first. In consequence, worker positions Stability is one of the priorities for Czech The agency employee must have the same could be filled more easily and, as a result employees – money is not the most wages, benefits, and conditions as any of the movement on the labour market, it important thing for them when changing permanent employee in the same posi- is also easier to find specialists. jobs. They place emphasis on an agreeable tion. It is in the companies’ interest not to working environment with the prospect of circumvent the act and, at the same time, DEMAND FOR IT SPECIALISTS long-term employment security. Very often to check whether the agency does not cut Czech technological centres and the they give preference to non-monetary down the wages of the agency employees country’s university system have attracted benefi ts, such as the possibility of training working for the company. This is a way of a number of IT companies, which have abroad, rather than a pay rise. According to a survey conducted by Factum Invenio ensuring satisfaction on the part of both found the situation favourable for starting Agency, the most sought-after benefi t the companies and employees, which at service and technological centres there. The among employees in the Czech Republic is the same time leads to high efficiency. great demand for IT specialists has resulted luncheon vouchers (tax-privileged tickets, in their shortage on the labour market. The which employees may use in restaurants PERSONNEL situation is even worse if, in addition, the and selected shops); 89% of companies AGENCIES SAVE TIME demand is combined with the foreign lan- operating on the domestic market provide Although the services of the Labour Offi ces guage requirement. Fortunately, the prob- this benefi t. The most valued aspects of in the Czech Republic have improved, the lem is being solved by foreign specialists employment among the Czechs are secu- fact is that if companies apply to the Labour recruited in Slovakia, the Ukraine, the Baltic rity of employment (93% of respondents) Offi ce with a specifi c demand for employ- states, and even India. and enjoyable work (91%). Only 35% of ees, the Labour Offi ce sends them a host respondents said they considered fi nancial evaluation very important. According to of people, who, however, do not meet the IT PAYS TO ENTER THE MARKET the same survey, only 12% of people in the requirements. It happens that job seekers Despite the current situation, it is advanta- Czech Republic are willing to change their stream into the personnel clerk’s offi ce, but geous to enter the Czech market, as this is place of residence because of employment. they either do not have the right profi le or just the time to fi nd top specialists whom

17 | REGION

Ústí nad Labem Region

The Ústí nad Labem Region may be GERMANY Liberec POLAND Ústí n/L Děčín called the region of opportunities, Ústí n./L. Karlovy Vary Hradec Králové with a potential still waiting for Praha Teplice Pardubice Ostrava full development. After a decade of Plzeň Olomouc Most one-sided orientation towards min- Jihlava Litoměřice Brno Zlín Chomutov České ing and the power industry, which Budějovice Louny SLOVAKIA dominated the Region from the early AUSTRIA 1990s, and a later slowdown of industrial activities, the Region is now working systematically on the im- LOCATION, TERRITORIAL oped industrial production is concentrated DIVISION, AND POPULATION in the foothills of the Krušné hory Mountains provement of the environment, the The Ústí nad Labem Region is situated in the (Districts of Chomutov, Most, Teplice and, revitalisation of vast areas and also south-western part of the Czech Republic partly, Ústí nad Labem). Among the sectors, on the transformation of the educa- and its northern border is simultaneously the the most important position is held by the tional structure of the population. country’s boundary with the Federal Republic power industry, coal mining, engineering, of Germany. Along the border with Germany, and the chemical and glass industries. The the Region is enclosed by a mountain range Litoměřice and Louny Districts are areas formed by the Krušné hory ( Ore) Mountains, known for hops production and vegetable the Labe Sandstone Ridge, and the Lužické growing. The Labe and Ohře basins are re- hory Mountains. Most of the Ústí nad Labem nowned fruit-growing areas, called the Bo- Region falls into the Labe River basin. It covers hemian Garden. Much reputed are vines an area of 5 335 sq. km and accounts for 6.8% grown in the Litoměřice District. The Most of the total surface area of the Czech Republic. area, too, where vineyards have been set up 30% of the surface is forest and 2% is water on land re-cultivated after brown coal quar- surface. The Ústí nad Labem Region is divided rying was suspended there, is now becoming into seven districts – LAU 1 (Děčín, Chomutov, known for its wines. The environment in the Litoměřice, Louny, Most, Teplice, and Ústí nad border districts of the present-day Ústí nad Labem), with 354 communities, 57 of which Labem Region has improved signifi cantly. have the status of town. The regional centre is The coal-fi red power stations have been de- the city of Ústí nad Labem with a population sulphurised and, thanks to the new sewage of 97 000. In terms of the number of inhabit- plants, the Labe has become a relatively pure ants, the Region ranks fi fth in the Czech Re- river, while chemical plants, which in the past public. The density of population in the Re- polluted the environment, are being phased gion is higher than the national average and out. Environmental criteria, which meet EU diff ers from district to district. Most densely standards, are determining factors for further populated is the area of the brown coal basin industrial production. in the foothills of the Krušné hory Mountains. Less populated are areas in the Krušné hory ECONOMIC CHARACTERISTICS Mountains and the Louny and Litoměřice Dis- AND EMPLOYMENT tricts, with scattered villages and settlements. In 2007, the Region accounted for 6.5% of the Czech Republic’s gross domestic prod- POWER INDUSTRY, ENGINEERING, uct. In terms of the per capita ratio, this is AND CHEMICAL INDUSTRY 80.7% of the national average, placing the Krajský úřad The economic signifi cance of the Region is Region in twelfth position among the coun- (Regional Authority) historically given by its considerable mineral try’s fourteen regions. At the end of 2007, Velká Hradební 3118/48 resources, especially vast brown coal depos- there were 362 000 people employed in 400 02 Ústí nad Labem its lying at a shallow depth under the surface. the Region, most of whom worked in the Czech Republic The brown coal basin lies below the slopes of manufacturing industry (28.3%). Average phone : +420 475 657 111 the Krušné hory Mountains, extending from monthly wages in the Region amounted to fax:: +420 475 200 245 Ústí nad Labem to Kadaň. Other important CZK 19 583 (EUR 736). Nearly 172 000 com- e-mail: [email protected] raw materials extracted in the Region are panies, organisations, and businesses were www.kr-ustecky.cz high quality glass and foundry sands and registered in the Region. The largest group

building stone. The area with a highly devel- are businessmen – individual persons not CzechTourism Photo:

| 18 CZECH BUSINESS AND TRADE

entered in the Company Register (nearly economic and cultural cooperation for fu- documents depicting the history of the Labe 71%). According to the branch classifi cation ture generations of the two regions. River navigation. of economic activities, most entities were engaged in trading and the repair of motor CULTURE, TOURISM NATURAL RESOURCES vehicles and consumer goods. As a result of Visitors to the Region have an opportunity The Ústí nad Labem Region has an immense the decline in coal production, enterprise re- of seeing interesting exhibitions arranged wealth of scenic beauty. It has the Krušné hory structuring and cutting down industrial and by its museums and galleries, often dis- Mountains, the Central Bohemian Uplands, the agricultural production, the unemployment playing unique objects, such as the skull of Lužické Hory Mountains, the interesting Tisá rate in the Ústí nad Labem Region (10.96%) is Queen Judith of Bohemia (12th century) in Walls rock formations, České Švýcarsko - Bohe- the highest in comparison with the national the Regional Museum in Teplice, an impor- mian Switzerland (www.ceskehory.cz), and the average on a long-term basis. Current eff orts tant collection of Gothic Art in the District charming Labe waterway. It has an abundance are to create conditions for investors to be Museum in Chomutov, a large collection of curative springs (Teplice, Bílina spas) and able to help enrich the production structure of historical herbariums in the District Mu- historical sights, castles, and chateaux in its in North Bohemia and signifi cantly reduce seum in Litoměřice, and a unique collec- territory. The best-known are, for example, the unemployment with their business plans tion of paintings by Antonín Slavíček in the Baroque chateau in Duchcov (www.duchcov. and environmentally friendly production. Modern Arts Gallery in Roudnice nad Labem. cz/zamek), the Roman rotunda on Říp Moun- The Museum in Děčín outlines the Region’s tain, the Gothic church in Most, monasteries in LINK BETWEEN THE NORTH history, its art history, archaeology, and art Osek and Doksany, and chateaux in Ploskovice AND SOUTH OF EUROPE photography and specialises in collecting and Libochovice (www.zamky-hrady.cz). The Region’s geographical position, with its affi nity with the EU, plays an important role BRIEF CHARACTERISTICS OF THE REGION in transport. An international highway, the Population Area E 55, which passes through the Teplice and NUTS Population Municipalities density (sq. km) Litoměřice Districts and links up with the (persons/sq. km) D 8 motorway at Lovosice, forms a connec- LAU 1 – Děčín 909 135 767 52 149 tion between the North and South of Eu- LAU 1 – Chomutov 935 126 311 44 135 rope. A new section of the D 8 motorway, LAU 1 – Litoměřice 1 032 118 313 105 115 passing through the Krušné hory Mountains LAU 1 – Louny 1 118 87 083 70 78 and linking up with the German A 17 motorway, was put into operation at the end of LAU 1 – Most 467 116 770 26 250 2006. Another important roadway runs from LAU 1 – Teplice 469 129 873 34 277 the Karlovy Vary Region, past the Krušné LAU 1 – Ústí nad Labem 404 120 919 23 299 hory Mountains, to the northern part of the NUTS 3 – Ústí Region 5 335 835 036 354 156 Liberec Region (I/13). Road I/7, running from NUTS 1 – Czech Republic 78 867 10 381 130 6 249 132 the Federal Republic of Germany to Prague via Chomutov and Louny, is also important. Source: Czech Statistical Office (3rd quarter 2008) NUTS – EU nomenclature of units for territorial statistics, LAU 1 = district The main railway line passing through the Region is the international railway running from the Federal Republic of Germany via Ústí nad Labem to Prague. The Labe is the most important waterway in the Czech Re- public, being used to carry cargo to the port of Hamburg in the North Sea.

EDUCATION The need for industrial and service restruc- turing has called for new skills and specialis- ations of the population. This is the task for the Region’s 122 secondary schools and universities: Jan Evangelista Purkyně University (www.ujep.cz) in Ústí nad Labem, a faculty of the Czech Technical University in Děčín, and the newly established Institute of Finance and Administration in Most (www.vsfs.cz). Their contacts with partners in neighbouring Saxony may open up new means of České Švýcarsko National Park

19 | REGION

The Potential of the Ústí nad Labem Region is Tremendous

it is doing everything in its power to bring them here. ÚSTÍ NAD LABEM The Ústí nad Labem Region is attractive REGION ATTRACTS to investors, not only for its industrial tradition and the skills of its labour force linked INVESTORS with industry. In addition, it has an ideal Last year, 11 new foreign and domestic geographical position. investment projects worth more than EUR Another important factor raising the 79 million were located in the Ústí nad Region’s attractiveness and its economic Labem Region. Thanks to the projects, success is the funds it can draw from the mediated by the CzechInvest Agency, at least 865 new jobs will be created there, Regional Operating Programme. For exam- 167 of which for university graduates. ple, EUR 745.9 million have been allocated The best year for the Region in attracting to the Ústí nad Labem and Karlovy Vary investors was 2007, when investments Regions, forming the NUTS 2 North-West amounted to nearly EUR 800 million. In European Cohesion Region, under the EU that year, the Ústí nad Labem Region Regional Development Programme. When was the most successful in all the Czech choosing projects for this programme, the Republic. Altogether 31 foreign and Ústí nad Labem Region takes into account domestic investors chose the Region for their influence on employment, and now, their business activities, which helped in its third term in office, it is focusing on considerably reduce the unemployment projects that will help promote tourism. rate there. Most investors who opted for the north of Despite its considerable tourist attrac- Bohemia come from Germany. CzechIn- tions, its interesting historical sights and vest mediated contracts for six of them, scenic beauties, the Ústí nad Labem Re- under which they will invest EUR 67.4 mil- gion has for some time suffered from low lion in the Region. Czech companies have tourist traffic. The Region’s authorities see come forward with fi ve projects to the a great potential in tourism and want to total value of more than EUR 83.5 million. support this segment not only with its The Region has also attracted investors own resources, but also by intending to from the United Kingdom and the United attract investors engaged in tourism and States. In 2007, four new investors came the tourist trade. to the Region from each country. Education is another area which the re- The Ústí nad Labem Region still has great potential for placing new investment gional government would like to develop projects on its territory. Especially ad- as a way of developing the Region itself. The vantageous is its logistic position, which Ústí nad Labem Region has a relatively high may be attractive even for smaller and unemployment rate and therefore it co-op- medium-sized companies. In addition, the erates closely with enterprises and second- Region boasts one of the best-prepared ary schools coming under its competence industrial parks in Central Europe, called Dear Reader, on harmonising their courses of study with the Žatec Triangle, where the Japanese For about two centuries, industry has been the labour market requirements. The Re- companies IPS Alpha and Hitachi have the factor determining the characteristics gion also supports tertiary education. It is already started production. and development of the Ústí nad Labem one of the initiators and supporters of the Since 1993, CzechInvest has mediated Region. The Region has retained its indus- construction of a university campus in Ústí 173 investment projects for the Region worth EUR 4 523.6 million. Their realisation trial character, even after the structural nad Labem. Its other achievement is the has given work to some 28 983 people. changes which have taken place in our establishment of faculties and institutes of In terms of the number of projects, the economy, and the Region’s government, prestigious Czech universities in Most, Cho- Region ranks second in the whole of the too, considers industry one of the key areas mutov, and Děčín. It also pays special atten- Czech Republic, after the South Moravia of its development. The current situation tion to technical university education. Region with 190 projects. and the specifics of the global economy, The potential of the Ústí nad Labem as well as the changes which occurred in Region is tremendous indeed. It has its the 1990s, however, show that the tradi- roots in a long industrial tradition, natural tional power, glass, and chemical indus- resources, transport infrastructure and, in tries alone and those companies linked particular, in its people. with them, cannot by themselves ensure the Region’s stability. The Ústí nad Labem Jana Vaňhová

Region needs to attract new investors, and Governor of the Ústí Region PhotoCombo Authority of the Ústí Region, Regional Photo:

| 20 CZECH BUSINESS AND TRADE The Ústí nad Labem Region Is Drawing Money from the European Union

The Ústí nad Labem Region has Grants made available under the innovations is focused on health care (devel- a high absorption capacity in look- North-West ROP have been divided opment of simple devices proposed by gen- into fi ve priority areas focused on the regen- eral practitioners), thin-layer optics in elec- ing for and especially using EU eration and development of towns, integrat- tronics and IT systems (development of HW subsidies. In the 2004-2006 plan- ed support of local development, availability elements based on the building-block prin- ning period, projects worth EUR of transport services, sustainable develop- ciple) to be assembled by the client, includ- ment of tourism and technical assistance. ing the development of SW for diff erent pro- 27 million were approved for the The priority areas cover projects for the production technologies and optomechanics. Region. In the current 2007-2013 motion of business, transport infrastructure Its construction will cost nearly EUR 4 mil- planning period, too, the Region construction, human resources, promotion lion. Almost EUR 3 million will be provided of tourism, rural development, and improve- by the European Union through the Industry is using the unique opportunity ment of the environment. The Region’s au- and Business Operating Programme and by to draw money from EU structural thorities also draw fi nancial resources from the Czech state (state budget). The Park will funds. At the end of 2008, subsidies other funds made available by the EU. cover an area of 4 889 sq. m. It will be provided with facilities and technologies meet- worth EUR 40 million were accorded SUCCESSFUL BUSINESS ing the requirements of a scientifi c and tech- to more than 100 projects in the Re- PROJECTS BENEFITING FROM nical park, as laid out in the project. STRUCTURAL FUNDS gion from the total amount of EUR Statistics on subsidies and privileged credits CATALYSTS WITH MINIMUM 745.9 million made available under made available under the Industry and Busi- IMPACT ON THE ENVIRONMENT the North-West Regional Operating ness Operating Programme show that, as at The aim of the project is supplementing and Programme (ROP). 22 January 2009, subsidies and privileged modifying existing production lines to facili- credits were granted to 146 applicants out tate the effi cient manufacture of special type of the total number of 262 applicants from catalysts for the chemical industry having the Ústí nad Labem Region who applied for a minimum impact on the environment. The grants to the EU. innovation rests both in the manufacture of a new type of product and the innovation of RUMBURK SCIENTIFIC key equipment and technology nodes. Thanks AND TECHNICAL PARK to a grant of EUR 271 000, Euro Support Manu- The Scientifi c and Technical Park in Rumburk facturing Czechia was able to introduce six in- is the fi rst project in the Region which really novated products and four new technologies. conforms to the basic idea of such a facility. The new technologies helped the com- The Park will comprise a business incubator, pany not only to enlarge its product range, an innovation centre and a technology trans- but also to improve working conditions and fer centre. At the same time, it will participate reduce the environmental impact. After in eff orts to raise the qualifi cation standards putting the new technologies into use, Euro of the local population and reduce unem- Support raised its competitiveness in the ployment. For example, the Programme for manufacture of heterogeneous catalysts not the development of new technologies and only on the European scale.

Historic centre of Žatec RENEWABLE ENERGY SOURCES Also worth mentioning is the approval of six projects under the Renewable Energy Sources Programme, which were accorded subsidies to the total value of nearly EUR 4 million. One of the successful applicants is SVEP, a.s., which is building a wind farm in Petrovice. The project will cost EUR 3 million. The object of the business plan is the construction and operation by SVEP, a.s. of a wind farm in the Petrovice cadas- tral area. The company has the capacity to gen- erate 4 833 MWh of electricity annually from renewable sources. Currently, preparations are in progress to build three wind power stations with a total installed output of 6 MW in Petro- vice in the north of the Czech Republic.

21 | REGION

The Care of Human Resources Is a Priority

The Ústí nad Labem Regional author- ”CAREER” CAMPUS TO HELP YOUTH – UNIVERSITY FUTURE ities put great emphasis on the devel- A system of career consultations for The intention of increasing the number opment and care of human resources. pupils in elementary education in the of people with university background in Support from the regional budget Ústí nad Labem Region was launched the Ústí nad Labem Region has dictated goes, for example, to the project ”Edu- as the ”Career” project in August 2008. the need to create material and techni- The sponsor of the project is the Sec- cal backing for students, academicians cation and Training Centre of Highly ondary Technical School in Most- and scientists, comparable to the Euro- Specialised Engineering Technologies” Velebudice, together with 11 more pean average. The Ministry of Education attached to the Secondary Technical primary and secondary schools in the of the Czech Republic, the city of Ústí Ústí nad Labem Region. The ”Career” nad Labem, and the Ústí nad Labem School in Most-Velebudice. For several project is included in the Operational Region jointly launched a project en- years, the Ústí nad Labem Region has Programme ”Education for Competi- titled ”University Campus – Ústí nad been fi nancing a programme of schol- tiveness”, and is focused on pupils in Labem” to accommodate more than the last years of primary and second- 10 000 students. The largest university arships for students who achieve good ary schools. Emphasis will also be laid in the Region – Jan Evangelista Purkyně results. The recipients commit them- on singling out pupils who are in dan- University, has commenced the recon- selves to professional service in the ger of an incorrect choice of vocational struction of the former Masaryk Hos- education or an untimely departure pital in the centre of Ústí nad Labem. Region. The authorities take credit for from the system and on the guidance The project counts with multi-source the establishment of many faculties of of pupils and parents in the choice of funding to a total of EUR 64 million. Czech universities in Most, Chomutov, further education. The reconstruction is proceeding and a part of the new complex was opened and Děčín. Participation in the ”Educa- SIMULATOR in 2008. The campus will allow the ex- tion for Competitiveness” operational OF OCCUPATIONS pansion of university education and in- programme, for which funds are avail- The project will include a complete crease the intellectual potential in the analysis of existent instruments to help Ústí nad Labem Region. This will con- able in the European Social Fund (ESF), pupils in elementary education in the tribute to the achievement of the main is important for the development of Ústí nad Labem Region decide on their objective of the Ústí nad Labem Region human resources. Almost EUR 51 mil- careers. Innovations from abroad will Development Programme: to halt the be transferred to the system. A special influence of the adverse impacts of lion are allocated to the Region for the training facility, equipped with simula- structural changes on the economy and 2007-2013 period. tors of different occupations in prac- employment. tice, will be established on the premises of the Secondary Technical School in Most-Velebudice.

Complex Care for Investors, even in the Choice of Locations

Both the Ústí nad Labem Region Off ers to investors also include other of the Ústí nad Labem Region. One of the serv- and individual towns are striving to services, such as consulting in the area ices off ered to businesses by the Ústí nad Labem of investment incentives and assistance in ne- Region is the up-to-date database of Industrial create the best possible conditions gotiations with local municipal authorities. The Zones with a well-arranged search function and for the inflow of investors and the construction of industrial zones is initiated both easily accessible basic information (www2.kr- development of the economy. One by the public administration and private enti- ustecky.cz/investor/prum_zony/index.php). ties. Owing to the variability of locations, areas, particular result of these efforts is and focus, the Ústí nad Labem Region manages BROWNFIELDS the construction of industrial and to satisfy even the most demanding investors. WAITING FOR INVESTORS developmental zones. Many companies from the Czech Republic and For example, in past years, the Ústí nad Labem abroad have already made use of the opportuni- Region has used the Industry and Enterprise pro- ty of conducting business in the industrial zones gramme within the structural funds of the EU. The

| 22 CZECH BUSINESS AND TRADE IMPORTANT INDUSTRIAL ZONES IN THE REGION (OVER 50 HA) AND SELECTED INVESTORS: Country Name Area Investors in the zone of origin Triangle 363 ha IPS Alpha Technology Europe s.r.o. Japan Hitachi Home Electronics (Czech), s.r.o. Japan Kadaň 81 ha Pierburg s.r.o. Germany Region, in close co-operation with the CzechInvest Oiles Czech Manufacturing s.r.o. Japan governmental agency and the Moravia-Silesia Re- Lovosice 120 ha TRCZ, s.r.o. Japan gion, prepared the PHARE 2001 pilot project, “Da- Aoyama Automotive Fasteners Czech, s.r.o. Japan tabase of Brownfi elds”, i.e. a database of industrial, Havran-Joseph 190 ha Nemak Czech Republic s.r.o. Mexico agricultural, and other sites in disrepair that were RAI Most s.r.o. Netherlands ready for rejuvenation. One successful realisation Krupka 74 ha Auto-Kabel Krupka s.r.o. Germany was the reconstruction of a former military airport Knauf Insulation, spol. s r.o. Belgium in Žatec, which the Ústí nad Labem Region, acting as the investor, transformed into the Triangle Stra- Ústí n. L. – Severní Předlice 61 ha KONE Industrial - koncern s.r.o. Finland tegic Industrial Zone. Other successful examples of Materialise, s.r.o. Belgium brownfi eld regeneration include the sugar refi nery Matthey s.r.o. Switzerland in Lovosice and the reconstruction of a former re- Klášterec nad Ohří - Verne 142 ha ARIAN Naturdärme Tschechien s.r.o. Germany gional hospital in Ústí nad Labem into the campus Pittsburgh Corning CR s.r.o. Netherlands of Jan Evangelista Purkyně University. Together with the CzechInvest Agency, the Region has pre- TRIANGLE STRATEGIC 2005 (http://www.triangle-city.cz). The Zone is ideal- pared maps and operates an electronic version of INDUSTRIAL ZONE ly accessible to transport, connected to international these maps, which can be easily used to obtain in- The most important industrial zone in the region transport routes and, most importantly, located in an formation about a location and its possible future is the Triangle Strategic Industrial Zone. This zone is area where there are thousands of people waiting use. The regional database includes over 700 lo- primarily concerned with accommodating invest- for employment opportunities. The Triangle Zone is calities (http://rozvojkraje.kr-ustecky.cz). Important ment projects that require large areas of land, with suitable for both big and smaller investment projects. brownfi elds in the Ústí nad Labem Region were the following industries being most commonly rep- For example, it has already attracted two companies mapped and submitted to the National Database, resented: the processing industry, strategic services, with Japanese capital: IPS Alpha Technology Europe which off ers localities ready for domestic and for- and technology centres. The Triangle was awarded and Hitachi Home Electronics, who have realised in- eign investors (www.brownfi eldy.cz). as The Zone with the Greatest Social Contribution in vestments worth milliards of crowns.

23 | REGION

Louny Louny District

Městský úřad Louny Krásný Dvůr Chateau (Louny Municipal Authority) Mírové nám. 35 440 23 Louny Czech Republic phone: +420 415 621 111 fax: +420 415 621 100 e-mail: [email protected] www.mulouny.cz

The Louny District is located in the southern part of the Ústí nad Labem Region and with its 1 118 sq. km is the Region‘s largest district. The settlement structure is rather fragmented, as the population lives in 70 municipalities, 4 of which are towns. The biggest towns are Louny and Žatec (each with 20 000 people). The last ten years have seen some signifi - cant changes in the area of the economy. Agriculture is very important in the District, specialising in the production of cereals, oil- In relation to the transformation pro- evidence regarding the important past bearing plants (rape, mustard, and sunfl ow- cess, all branches of the economy have of this territory. Archaeological findings er), meat, and eggs. Also important are hop gone through changes of ownership. show settlements from the early Stone and fruit growing. The following branches of Out of the 17 530 business entities, Age. Many historical buildings have industry are most signifi cantly represented 75% are private natural persons, 6.9% been preserved in the District, such as in the District and employ over one quarter are independent smallholders. Private the Nový Hrad in Jimlín, the chateau in of all economically active population: food ownership dominates almost all areas of Krásný Dvůr with an extensive English processing, machine building, power engi- activity. park, and Líčkov Castle. The mediaeval neering, and construction. The multitude of cultural and histori- archive in Louny is one of the most valu- cal monuments in the District provides able in the country. BRIEF STATISTICS Indicator District Region SELECTED FIRMS Area (in sq. km) 1 118 5 335 Name Based in Sector Contact Population 87 083 835 036 Pivovar Louny,a.s. Louny beer production www.pivovarlouny.cz Inhabitants/sq. km 78 156 Ekostavby Louny, s.r.o. Louny construction www.ekostavbylouny.cz Number of economic entities * 17 530 174 688 Elektroporcelán Louny, a. s. Louny electrical porcelain www.epl.cz Unemployment rate (in %) 7.62 9.38 TBG Louny, s.r.o. Louny concrete production www.betonserver.cz/tbg-louny Source: Czech Statistical Office (as of 3rd quarter of 2008) Lostr, a.s. Louny machine building www.lostr.cz *economic entities with more than 20 employees (natural persons, trading companies, co-operatives) Vodest, s.r.o. Vroutek metalworking www.vodest.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact AISAN Industry Corporation Japan Aisan Industry Czech, s.r.o. gas pumps www.aisan.cz Fujikoki Corporation Japan Fujikoki Czech, s.r.o. automotive industry www.fujikoki.cz plastic components Takada Industries Corp. Japan Takada Industries CR, s.r.o. www.takada.com for automotive industry Nachi-Fujikoshi Corp. Japan NACHI Czech s.r.o. car air-conditioning www.nachi-czech.cz HP-Pelzer International GmbH Germany HP-Pelzer, k.s., závod Žatec car interiors www.pelzer.de electrical components Koito Manufacturing CO, LTD Japan Koito Czech s.r.o. www.koito-czech.cz for automotive industry CIE BERRIZ, S.L. Spain CIE Praga Louny, a.s. machine building www.pragalouny.cz Photo: CzechTourism, Regional Authority of the Ústí Region Regional CzechTourism, Photo:

| 24 CZECH BUSINESS AND TRADE

BRIEF STATISTICS Indicator District Region Most Most District Area (sq. km) 467 5 335 Population 116 770 835 036 Inhabitants/sq. km 250 156 Městský úřad Most tion lives in towns, which ranks the District Number of economic entities* 21 711 174 688 (Most Municipal Authority) fi rst among the seven of the Region’s dis- Unemployment rate (%) 7.1 9.38 Radniční 1 tricts. The District’s largest town and also 434 69 Most Source: Czech Statistical Office (as of 3rd quarter of 2008) the cultural and administrative centre is *economic entities with more than 20 employees (physical entities, Czech Republic the town of Most with 67 600 inhabitants. business entities, co-operations) phone: +420 476 448 111 Most is a relatively new town, as the origi- fax: +420 476 703 162 e-mail:[email protected] nal historical town had to make way for the improve the situation. A new educational and www.mesto-most.cz vast surface brown-coal extraction. Only training centre has been set up in co-opera- the deanery church, a pinnacle of Gothic tion with the Regional Offi ce, the CzechInvest architecture, has been preserved. Its repo- Agency, and local secondary schools and uni- The Most District is bordered by the Krušné sitioning on special hydraulic carriages in versities. With the use of simulators for training hory Mountains in the north, where it bor- 1975 was a world rarity. in special production processes, new employ- ders on the Federal Republic of Germany. In The immense wealth of mineral raw mate- ees are prepared for the requirements of new its centre lies the Most brown-coal basin, with rial completely predetermined the character investors or local employers. a farming zone forming its southern part. and economic importance of the District. Eff orts to eliminate the traces of the With its area of 467 sq. km, the Most Dis- Much of the District’s territory is oc- former mining activities are unique. For ex- trict is the smallest in the Ústí nad Labem cupied by industrial structures. Its main ample, re-cultivation work on the surface Region. The District’s inhabitants live in 26 industries are mining, the petrochemical of the largest waste dump, Velebudice, in municipalities, four of which have the sta- industry, the power industry, and engi- the former North Bohemian Brown-Coal tus of town. A total of 89% of the popula- neering. The econ omic changes also al- District, gave rise to a hippodrome with tered the District’s industrial orientation, a racecourse of world distinction (www. switching to light industry and services. hipodrom.cz). In most cases, the conver- This is attested by the new investment sion of devastated areas to agricultural land projects in the District. has been successful, which is proven by the The damping down of the coal extraction has vineyards in Chrámice and, in the vicinity of caused an increase in unemployment. Industri- Most, the orchards, woods, meadows, and al zones prepared for new investors are helping water recreational areas.

SELECTED FIRMS Name Based in Sector Contact Česká rafi nérská, a.s. Litvínov refi nery www.crc.cz UNIPETROL RPA, s.r.o. Litvínov chemical industry www.unipetrolrpa.cz ELSVO- MOST, s.r.o. Most electronics www.elsvo.cz Humeco, a.s. Most gravel, aggregates www.humeco.cz Keramost, a.s. Most refractory ceramics www.keramost.cz SupportIT, a.s. Most information technology www.rwagrp.cz VVV Most, s.r.o. Most belt conveyors www.vvvmost.cz Výzkumný ústav pro hnědé uhlí, a.s. Most brown coal mining research www.vuhu.cz AQUALUX CZ v.o.s. Litvínov aquarium stones www.aqualux.cz

Dominant feature of Most, Euromont Group, a.s. Most engineering structures www.euromont.cz replica of Hněvín Castle Litvínovská uhelná, a.s. Most mining industry www.czechcoal.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Grammer Aktiengesellschaft Germany Grammer CZ , s.r.o. car accessories www.grammer.de Nemak Europe GmbH Germany Nemak Czech Republic, s.r.o. aluminium castings www.nemak.cz Primed-Halberstadt Germany Primed-Halberstadt-CZ s.r.o. plastics www.primed-halberstadt.de Magnesium Elektron Limited United Kingdom Magnesium Elektron CZ, s.r.o. non-ferrous metal production www.magnesiumelektron.com Greiner Packaging GmbH Austria, Switzerland Greiner packaging s.r.o. plastics www.greiner-gpi.com Ros GmbH & Co KG Germany Ros Czech, s.r.o. plastics www.ros-coburg.de

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| 26 CZECH BUSINESS AND TRADE

Ústí nad Labem Ústí nad Labem District

Větruše Chateau Magistrát města Ústí nad Labem prominent branches here are the (Ústí nad Labem Municipality) engineering and mining indus- Velká Hradební 8 tries, energy production, and the 401 00 Ústí nad Labem foundry industry. Czech Republic The District is part of a brown coal phone: +420 475 241 111 basin. Its regenerated area is be- fax: +420 475 211 503 e-mail:[email protected] coming the core of revitalisation of www.usti-nad-labem.cz the entire Ústí-Teplice conurbation. Ústí nad Labem has an important transport position within the The District is situated in the north-west Czech Republic as well as Europe. of the Czech Republic, where it shares 250 It is a junction of major national km of the state border with the Federal Re- and international roads, railway public of Germany. lines, and waterways. The Ústí nad Labem District has the Protected Landscape Areas in the smallest area of the seven districts of the District include the České středohoří Ústí nad Labem Region, but the highest Highlands, the Labské pískovce Sandstones, BRIEF STATISTICS population density. Most of its inhabitants and the Krušné hory Mountains (www. (80%) live in the town of Ústí nad Labem, ceskehory.cz). The Ústí nad Labem District Indicator District Region the largest of the District’s 23 municipali- is rich in historical and cultural monuments Area (sq. km) 404 5 335 ties and the cultural and administrative which help promote tourism. The chateaux, Population 120 919 835 036 centre of the Region. for example in Krásné Březno, Velké Březno, Inhabitants/sq. km 299 156 The District’s development is closely and in Trmice are certainly worth a visit. The Number of economic entities * 27 596 174 688 linked with industrial production, especial- Městské Divadlo Theatre in Ústí nad Labem is ly in Ústí nad Labem and its vicinity. The an interesting example of Art Nouveau archi- Unemployment rate (%) 7.3 9.38 key sector which takes advantage of the tecture with neo-classical elements. Masaryk Source: Czech Statistical Office (as of 3rd quarter of 2008), town’s location and good access to trans- fl ood-gate on the River Labe is a noteworthy *economic entities with more than 20 employees (physical entities, business entities, co-operations) port routes is the chemical industry. Other technical monument.

SELECTED FIRMS Name Based in Sector Contact Enaspol, a.s. Ústí nad Labem chemical production www.enaspol.cz Severočeská armaturka, a.s. Ústí nad Labem valves www.sca.cz EVROmat, a.s. Ústí nad Labem foundry, metal production www.evromat.cz Spolchemie, a. s. Ústí nad Labem chemical industry www.spolchemie.cz Drinks Union, a. s. Ústí nad Labem beverages www.drinksunion.cz Viamont, a. s. Ústí nad Labem transport, engineering www.viamont.cz Chabařovické strojírny, a.s Chabařovice automotive seating systems www.intier.com Biotech progress, a.s. Ústí nad Labem biofuel from biomass www.biotech-pro.com Labar, s.r.o. Ústí nad Labem paints and varnishes www.labar.cz Lancil, s.r.o. Velké Březno chemical production www.lancil.com Vinyl-Flex, s.r.o. Ústí nad Labem plastics production www.vinylfl ex.cz Epispol, a.s. Ústí nad Labem chemical production www.epispol.cz Měď Povrly, a.s. Povrly metallurgy www.medpovrly.cz

FOREIGN INVESTORS Investor Country of Origin Czech Partner Sector Contact Materialise NV Belgium Materialise, s.r.o. plastics production www.materialise.cz KS Kolbenschmidt, GmbH Germany KS Kolbenschmidt Czech Republic, a.s. motor plungers www.metal.cz Black & Decker Overseas Netherlands Black & Decker Czech s.r.o electrical equipment www.blackanddecker.cz Holdings B.V Pierburg GmbH Germany Pierburg, s.r.o. motor vehicle components www.kspg-ag.de REICHHOLD-Holdings Netherlands, Norway Reichhold CZ a.s. chemical production www.reichhold.com Photo: Regional Authority of the Ústí Region Regional Photo:

27 | inzerce 185 x 128 english.ai 26.2.2009 18:46:04

Lázně Teplice v Čechách a.s. is a spa with the longest tradition in central Europe; it will officially launch its 855th season this May.

The spa’s unique healing thermal water and experienced staff are the reasons why guests from the Czech Republic and abroad come here repeatedly. The delightful atmosphere of the parks, historical buildings, and all services under one roof attract not only patients in need of treatment, but also healthy active people who are keen to maintain their fitness and vitality. The spais a specialist in the prevention and treatment of locomotor apparatus complaints, vascular diseases, and nervous system disorders. It offers relaxation and stress relief programmes as well as popular weekend stays. Teplice Spa services are certified by EuropeSPA med - the European Spas Association, and by ISO 9001:2000 certification issued by TÜV for the area of spa care.

Lázně Teplice v Čechách a.s., Mlýnská 253, 415 38 Teplice, Czech Republic, Phone.: +420 417 977 444, E-mail: [email protected], www.lazneteplice.cz

| 28 CZECH BUSINESS AND TRADE

Teplice Teplice District

Statutární město Teplice, (Statutory Town of Teplice) Náměstí Svobody 2 415 95 Teplice Czech Republic phone: +420 417 510 111 fax: +420 417 570 629 e-mail: [email protected] www.teplice.cz

This territory lies in the heart of the Ústí nad Labem Region, forming part of the border with Germany. In size, the Teplice District is one of the smallest within the Region, but the density of its Kamenné lázně Spa House population is very high. The District is strongly di- versifi ed, one-fourth of its surface being formed centres of the Czech Republic. During the 90s, their delegations. In 1860, for example, Emperor by the Krušné hory Mountains. numerous secondary schools and hundreds František Josef I met King William of Prussia here. 129 873 inhabitants live in an area of 469 sq. of small private entrepreneurial entities, with The presence of Heads of State and their delega- km in the District’s 34 municipalities, eight of a large range of manufacturing and business ac- tions greatly enhanced the spa’s popularity and which have the status of town. The town of tivities, were established in the urban area. These the development of the town. Visiting fi gures Teplice is the District’s largest town and also the altered the town’s long-standing concentration in cultural life also added to Teplice’s fame. It is cultural and administrative centre, with a popu- on the ceramic and glass industries, although the here, in 1812, that Goethe and Beethoven fi rst lation of 52 800. The town of Teplice traditionally glass industry still plays a signifi cant role. A large met. In Teplice, Beethoven wrote his legendary ranks among the industrial and manufacturing role in the town’s development was played not “Immortal Beloved” love letters. Today, the spa only by investments into the infrastructure in the is a non-state health institution. Apart from the BRIEF STATISTICS industrial zone, but also, for example, dynamic spa facilities, plastic surgery and aesthetic medi- Indicator District Region procedures during the sales of land and prop- cine clinics are to be found in Teplice, as well as erty to businesses. The spa industry is of great a number of specialised out-patient wards. Area (sq. km) 469 5 335 importance to the District’s economy, in addi- The Teplice District is rich in historical Population 129 873 835 036 tion to the engineering industry, rich mineral and cultural sights. The oldest among them Inhabitants/sq. km 277 156 resources and glass and porcelain manufacture. are sights in the towns of Teplice, Duchcov Number of economic entities * 27 033 174 688 The Teplice curative mineral springs are among (www.duchcov.cz), Bílina (www.bilina.cz) Unemployment rate (%) 10.08 9.38 the best known and intensively used waters and Dubí (www.dubi.cz). Most attractive to Source: Czech Statistical Office (as of 3rd quarter of 2008) with a long history in Central Europe. Teplice visitors is Duchcov Chateau (www.duchcov. * economic entities with more than 20 employees (physical entities, used to be referred to as the “Salon of Europe”. It cz/zamek), where the renowned adventurer, business entities, co-operations) was the meeting place of many monarchs and G. Casanova, lived.

SELECTED FIRMS Name Based in Sector Contact Báňské projekty Teplice, a.s. Teplice project designing and engineering www.bpt.cz Český porcelán, a.s. Dubí porcelain manufacture www.cesky.porcelan.cz Lázně Teplice v Čechách, a.s. Teplice spa industry www.lazne.teplice.cz AGC Automotive Czech a.s. Bílina plastics www.agcautomotive.com Severočeské doly, a.s., Doly Bílina Bílina coal mining www.sdas.cz Teplotechna-Prima, s.r.o. Teplice glass manufacture www.teplotechna-prima.com Kovosreal, s.r.o. Duchcov metalworking www.kovosreal.cz Nertech, s.r.o. Teplice chimney systems www.schiedel.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Ideal Standard International B.V. Belgium Ideal Standard, s.r.o. sanitary ceramics www.idealstandard.cz AGC Nederland Holding, B.V. Netherlands AGC Flat Glass, a.s. glassmaking www.agc-fl atglass.eu SEVES S.p.A. Ireland VITRABLOK, s.r.o. glassmaking www.vitrablok.com Photo: CzechTourism Photo:

29 | 15-Year History of SD Chomutov 1994 – 2009

Over 15 years we have mined 333 million tonnes of coal recultivated 33 sq. km – an area larger in size than two Nechranice dams helped the local neighbourhood by donating CZK 770 million spent almost CZK 5 billion on nature conservation

WE MINE COAL OF HIGH QUALITY

OUR RECULTIVATION EFFORTS ARE EXEMPLARY

WE HELP THE LOCAL NEIGHBOURHOOD

WE PROTECT NATURE CZECH BUSINESS AND TRADE

Chomutov Chomutov District

Magistrát města Chomutov Most of the population lives in the three (Chomutov Municipality) most important towns. The largest cul- Zborovská 4602 tural and economic centre of the District 430 28 Chomutov is the town of Chomutov with 52 100 in- Czech Republic habitants, while other large towns include phone: +420 474 637 111 Jirkov (21 900 ppl.), Kadaň (17 900 ppl.), fax: +420 474 652 777 e-mail: [email protected] and Klášterec with 16 100 people. www.chomutov-mesto.cz For decades, the Chomutov District was known primarily as a region of heavy industry, power engineering, metallurgy, and The Chomutov District is located in north- brown coal mining. In recent years, how- western Bohemia under the slopes of the ever, the economic performance of all of Krušné hory Mountains, which practically the companies in the District refl ects the form the border with the Federal Republic consequences of the transformation process of Germany. Mining for raw materials, en- of the 90‘s, when state companies were pri- ergy production, and a significant part of vatised and many subsequently terminated the social and technical infrastructure is all of their activities. This aff ected the growth centred in the foothill part of the District. of unemployment, which climbed to 17%. There is a lowland zone in the southern Recently, the situation has been improving, Windmill in the Stará Ves open-air museum and south-western parts of the territory with unemployment now at 8.77%. Foreign with conditions suitable for agriculture. partners are arriving, who are either continu- The population of 126 311 live in an ing with traditional industries or founding gents and hygienic instruments, who built area of 935 sq. km in 44 municipalities, new ones, such as Britain‘s Jeyes Holdings, a new production plant in Kadaň and pro- 5 of which are towns. a leading provider and distributor of deter- vided not only hundreds of jobs, but also other possibilities for co-operation to local SELECTED FIRMS sub-suppliers (www.jeyes.co.uk). Name Based in Sector Contact Severočeské doly, a. s. Chomutov coal mining www.sdas.cz BRIEF STATISTICS Indicator District Region Datasoft, s.r.o. Chomutov electrical engineering www.datasoft.cz Area (in sq. km) 935 5 335 Reframo, s.r.o. Kadaň construction materials www.reframo.cz Population 126 311 835 036 NOEL –PLUS, s.r.o. Chomutov machine building www.noel-plus.cz Inhabitants/sq. km 135 156 První Elektro, a.s. Chomutov electrical engineering www.prvnielektro.cz Number of economic entities* 23 697 174 688 Severočeské elektrotechnické Chomutov electrical engineering www.sez.cz Unemployment rate (in %) 8.77 9.38 závody a.s. Reme, spol. s r.o. Kadaň electrical engineering www.reme.cz Source: Czech Statistical Office (as of 3rd quarter of 2008) *economic entities with more than 20 employees (natural persons, Hamana, s.r.o. Údlice metalworking www.hamana.cz trading companies, co-operatives)

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact BAXCOL LIMITED United Kingdom JJS Electronics s.r.o. electronics www.jjselectronics.cz Sandvik Chomutov Precision Sandvik Precision Tubes Sweden metallurgy www.sandvik.cz Tubes, spol. s r. o. Cherry GmbH Germany Cherry, spol. s r. o. electronics www.cherry.cz Eaton Holding I. B.V. Netherlands Eaton Industries s.r.o. plastics production www.eaton.com Arla Plast AB Sweden Arla Plast, s.r.o., Kadaň plastics production www.arlaplast.cz Donaldson Torit, B.V. Netherlands Donaldson Czech Republic, s.r.o. fi ltration systems www.donaldson.com Parker Hannifi n Holding Germany Parker Hannifi n Industrial, s. r. o. machine building http://parker-hannifi n.trade.cz Pittsburgh Corning Europe, N.V. Belgium Pittsburgh Corning ČR, s.r.o. construction materials www.pitsburghcorning.com R.B.FARQUHAR (MANUFACTURING) United Kingdom R. B. Farquhar, s.r.o. metal constructions www.rbfarquhar.co.uk LIMITED CARRE & COROMINA GRUP, S.L. Spain Inteplast CZ, s.r.o. plastics production www.inteplast.cz Jeyes Group Limited United Kingdom Jeyes, s.r.o. chemical production www.jeyes.cz Photo: František Snížek František Photo:

31 | REGION

Litoměřice BRIEF STATISTICS Litoměřice District Indicator District Region Area (in sq. km) 1 032 5 335 Population 118 313 835 036 Městský úřad Litoměřice The following industries are represented in (Litoměřice Municipal Authority) the District: chemical, building material, glass- Inhabitants/sq. km 115 156 Mírové náměstí 15/7 making, machine building, food processing, and Number of economic entities* 27 739 174 688 412 01 Litoměřice textile. From the point of view of broader territo- Unemployment rate (in %) 7.34 9.38 Czech Republic rial transport ties, the Litoměřice District is an im- Source: Czech Statistical Office (as of 3rd quarter of 2008) phone: +420 416 916 111 portant transport corridor for both international * economic entities with more than 20 employees (natural persons, trading fax: +420 416 916 211 companies, co-operatives) e-mail: [email protected] and domestic long-haul transport, especially in www.litomerice.cz the very high profi le transport direction of Ham- burg – Berlin – Dresden – Prague – Brno – Vienna Ploskovice, and the castle of Házmburk. Other – Budapest. The conditions in the District are well frequently visited national cultural heritage sites The Litoměřice District is located in the suited to recreation and further development include Malá pevnost Terezín (Small fortress of southern part of the Ústí nad Labem Re- of the tourist trade. Visitors often wish to see the Terezín), the Rotunda of St. George on Říp, and gion, along the junction of the Labe and urban monument preserves in Litoměřice, Úštěk, also the Litoměřice and Roudnice nad Labem gal- Ohře Rivers. With an area of 1 032 sq. km, it and Terezín, the chateaux in Libochovice and leries, the Museum of Czech Garnet, and others. is the second largest district in the Region. A population of 118 313 lives in 105 munici- Helfenburk u Úštěku Castle palities, 9 of which are towns. The centre of the District is the town of Litoměřice with 25 700 inhabitants, the second biggest town is Roudnice nad Labem with 13 500 people. The landscape character of the District is determined by the lowlands in the river basins of the Labe and Ohře on the one side, and the broken terrain of the České středohoří (Czech Central Mountains) on the other. Since there is a lot of agricultural land (72%), there predominates market gar- dening and fruit cultivation, hop growing and wine growing. The importance of these activities is also refl ected in the nickname of the Litoměřice District – The Garden of Bohe- mia, and in the annual exhibition of the same name (www.zahrada.cech.cz) that attract not only local visitors.

SELECTED FIRMS Name Based in Sector Contact Keratech Group, a.s. Litoměřice machine building www.keratech.cz Antinari, s.r.o. Roudnice nad Labem door systems www.antinari.cz Meva, a. s. Roudnice nad Labem metalworking www.meva.cz Lovochemie, a. s. Lovosice chemical industry www.lovochemie.cz KBO, s.r.o. Litoměřice construction www.kbo.cz PUR –IZOLACE, s.r.o. Litoměřice insulation www.pur.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Tokai Rika Co., Ltd. Japan TRCZ s.r.o. electrical components www.trcz.cz Kos Wire LTD Korea Kos Wire Europe, s.r.o. stainless wire www.koswire.com Alberts Gruppe Switzerland Schoeller Křešice, s. r. o. textile industry www.schoeller-wool.de Lafarge Group France Lafarge Cement, a. s. construction materials www.lafarge.cz Aoyama Automotive Aoyama Nakatsugawa Co., Ltd. Japan metalworking www.aoyama.com Fasteners Czech, s.r.o. TORRECID, S.A. Spain Glazura, s. r. o. glazing www.glazura.cz Photo: CzechTourism Photo:

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Děčín Děčín District

Magistrát města Děčína Švýcarsko (Bohemian Switzerland) National (Děčín Municipality) Park and the Labské pískovce Protected Mírové nám.1175/5 Landscape Area (www.ceskehory.cz). 405 38 Děčín 4 A population of 135 767 lives in an area Czech Republic of 909 sq. km in 52 municipalities, 11 of phone: + 420 412 593 111 which are towns. The centre of the District fax: + 420 412 530 051 e-mail: [email protected] is the town of Děčín (www.mudecin.cz) www.mmdecin.cz with 54 000 inhabitants. There are two faculties of the Czech Technical University in the town (Faculty of Transportation Sciences The Děčín District is located in the northern and Faculty of Nuclear Sciences and Physical part of the Czech Republic. It is a typical bor- Engineering), which help to raise the level der region, sharing borders with the Federal of education of the District‘s and Region‘s Republic of Germany and the Republic of populations (www.cvut.cz). Poland. Děčín‘s location within the Czech Even though the territory of the District Republic is unique because it combines ranks among the most interesting from the economi cally advantageous conditions tourism point of view, there is also industry: that follow from the border signifi cance of textile, machine building, electrical, chemi- a transport hub and the vicinity and good cal, and paper with the connected printing accessibility of big centres on both sides of production. Transport is the District‘s tradi- the border with natural beauty unrivalled tional and economically important industry. in its scope and character in central Europe. Besides air transport, all types of transport A considerable part of the District lies with- routes can be found in the District, in many in the boundaries of protected landscape cases their signifi cance extends well beyond areas: Labské pískovce (Labe Sandstones), the state borders, thanks to the geographi- “Pastýřská Wall“ above the Labe River České Středohoří (Czech Central Mountains), cal location. The existence of the Labe wa- and the Lužické hory Mountains. Labské terway is an important feature. It connects sea ports. The Labe waterway is a part of pískovce are among the most massive sand- to a network of West European waterways, what is known as the 4th Trans-European stone areas with the biggest rock formations providing access to Germany, Benelux Multimodal Corridor and off ers an alterna- in Europe. This area is protected by the České countries, northern France, and important tive to the ever growing surface transport.

BRIEF STATISTICS SELECTED FIRMS Indicator District Region Name Based in Sector Contact Area (in sq. km) 909 5 335 VELVETA, a.s. Varnsdorf textile modifi cations www.velveta.cz Population 135 767 835 036 Tos Varnsdorf, a.s. Varnsdorf shaping machines www.tosvarnsdorf.cz Inhabitants/sq. km 149 156 Selectra, s.r.o. Děčín delivery services www.selectra.cz Number of economic entities* 29 382 174 688 Silike C.S., s.r.o. Děčín heat resistant materials www.silike.cz Unemployment rate (in %) 9.82 9.38 STAP, a.s. Vilémov textile production www.stap.cz Kartonobaly, s.r.o. Jílové u Děčína cartons, packaging www.kartonobaly.cz Source: Czech Statistical Office (as of 3rd quarter of 2008) *economic entities with more than 20 employees (natural persons, RYKO a.s. Děčín modernisation of railway carriages www.ryko.cz trading companies, co-operatives) Belet, a.s. Vejprty manipulation equipment www.belet.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Prodair Corporation USA Air Products s.r.o. industrial gases www.airproducts.cz Chart Xerox Group USA Chart Xerox, a.s. pressure containers www.ferox.cz Haas Group Germany Hoco Bauelemente, s.r.o., Děčín plastics www.hoco.cz Wilms, GmbH Sweden Kabelovna Děčín-Podmokly, s.r.o. electronics www.kabelovna.cz SCA Packaging Int.B.V. Netherlands SCA Packaging ČR, s.r.o. packaging, printing www.sca.com Alcan Holdings Switzerland Alcan Děčín Extrusions, s.r.o. aluminium alloying www.alcan.cz “Habrinol“ Chemische Fabrik GmbH Germany Habrinol Děčín, s.r.o. chemical production www.habrinol.cz Brunner + Siegener, GmbH Germany, Austria PROMPTUS, spol. s r. o. metal treatment www.zinkovna.cz Photo: Regional Authority of the Ústí Region Regional Photo:

| 34 www.chemotex.cz phone: +420 412 547 461, phone/fax: +420 412 547 200, e-mail: [email protected] phone: +420 412547 461,phone/fax: +420 412547 200,e-mail: Tovární 63,40711Děčín XXXII -Boletice nadLabem, Czech Republic CHEMOTEX Děčín a.s. – DOINGBUSINESSINCHEMISTRY RESPONSIBLY programmegoals ofvoluntary RESPONSIBLECARE accomplished by and meetingtheobjectives and ofanattestation awarded for results the ISO9001:2001,14001:2005certificates CHEMOTEX Děčína.s. isaholderof

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