Skilled Workers Drive the Economy Labour Law Information and Communication Technologies

The Czech Republic to preside over the Council of the EU in the first half of 2009

09-10 2008 CONTENTS

CZECH BUSINESS AND TRADE

Economic Bi-monthly Magazine with a Supplement is Designed for Foreign Partners, Interested in Cooperation with the Czech Republic INTRODUCTION Questions of the Month Ivan Langer, Minister of the Interior...... 4 Issued by PP AGENCY s.r.o. as an exclusive commission ECONOMIC POLICY for the Ministry of Industry and Trade Skilled Workers Drive the Economy...... 5 of the Czech Republic KALEIDOSCOPE EDITORIAL BOARD: Czechs Want to Go on Working after Reaching Retirement Age ...... 7 Milan Hovorka (Chairman), Ivan Angelis, Czech Beer to Be Registered as a Protected Geographical Indication...... 7 Zdena Balcerová, Jiří Eibel, Růžena Hejná, Technical Norms Will Be Cheaper and Better Accessible ...... 7 Josef Jílek, Zdeněk Kočárek, Tomáš Kopečný, Marie Pavlů, Pavla Podskalská, Josef Postránecký, LEGISLATION Libor Rouček, Jiřina Semanová, Labour Law in the Czech Republic ...... 8 Jiří Sochor, Jarmila Škvrnová BUSINESS AND PRODUCTION MANAGING EDITOR: Changes of Shopping Behaviour in the Czech Republic ...... 10 Petr Kamenický CZECH TOP EDITORS: ALTA – General Contractor for Mine Construction in Russia ...... 12 JTEKT of Japan Expands its Pardubice Plant ...... 12 Jiří Bouzek, Jaroslava Bradová SERVICES REGULAR COLLABORATORS: Information and Communication Technologies in the Czech Republic...... 15 Eva Tomášková REGION TRANSLATION: NUTS 2 – Moravia-Silesia Region ...... 18-34 Vlasta Benešová, Alena Kenclová, Robert Krátký, Lucie Pavlíčková, David Stránský, PRESENTATION OF FIRMS Dagmar Šímová, Halka Varhaníková ROWAN LEGAL s.r.o...... 2 Hybernská Properties s.r.o...... 13 READ: ESA s.r.o...... 14 Mathew Booth, Pearl Harris, Ivana Kadlecová, ATACO spol. s r.o...... 24 Zuzana Pavlíčková MERKO CZ, a.s...... 27 FERRIT s. r. o...... 31 GRAPHIC DESIGN: Vojenský opravárenský podnik 025 Nový Jičín, státní podnik...... 33 Helena Dvořáková, Lobby Česká republika DERUTEX, s.r.o...... 35 AXITECH, s.r.o...... 36 DEADLINE: 23/7/2008

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ADDRESS: Myslíkova 25, 110 00 Praha 1 Czech Republic Phone: +420 221 406 623, +420 221 406 626 Information and Communication Moravia-Silesia Region Fax: +420 224 930 016 Technologies in the Czech Republic e-mail: [email protected] www.ppagency.cz COVER PICTURE: THE CZECH REPUBLIC WINS SIX MEDALS www.mpo.cz/cbt Press run: 13.500 copies. The Czech Republic won three gold and three silver medals at the Beijing Olympic The number of printed and sold copies Games, ranking 24th in the world in the number of gold medals. The cover page of the journal is verified by auditor, HZ Praha, s.r.o., displays the three Olympic gold winners (from left to right: Barbora Špotáková – javelin member of PANNELL KERR FORSTER Worldwide. throw, David Kostelecký – trap shooting, Kateřina Emmons – air rifle). Silver medals It is not allowed to reproduce any part were won by Czech athletes in single sculls rowing (Ondřej Synek), the kayak slalom of the contents of this journal without prior consent from the editor. (Jaroslav Volf and Ondřej Štěpánek), and the three-position rifle event (Kateřina Attitudes expressed by the authors of articles Emmons). The Czech Republic presented itself at the Olympic Games not only through carried by CBT need not necessarily be consistent the performance of its athletes: car manufacturer Škoda Auto, part of the VW group, with the standpoint of the Publisher. was the official automobile partner of the Olympic Games in Beijing. Altogether 650 MK ČR E 6379, ISSN 1211-2208 Škoda Octavia vehicles were put at the disposal of the organising committee of the „Podávání novinových zásilek povoleno Beijing Olympic Games for the transfer of athletes and their entourage. Škoda Octavia Českou poštou, s. p., odštěpný závod Přeprava, vehicles also served the needs of participants to the Paralympic Games, to which Škoda č. j. 3468/95, ze dne 24/10/1995“ Auto is also official automobile partner. Front cover: ČTK archives 3 | INTRODUCTION

Questions of the Month for Ivan Langer, Minister of the Interior

The symbol of e-Government is eGON, in ■ the figurative sense a living organism in In mid-2008, the Government which everything is interdependent as is approved Strategic Projects for the functioning of the different elements. drawing money from the EU The backup of the eGON existence and Structural Funds in the framework function includes: the fingers (Czech of Smart Administration. How will POINT), the circulation system (Communic- these funds be used? ation Infrastructure of Public Plenty of money can easily be spent on Administration), the heart (e-Government various projects. The point is that the Act), and the brain (the basic public projects must give sense, be administration registers). interconnected and as a whole benefit The eGovernment Act places on par citizens and officials alike – simply, quickly electronic and paper documents once and and cheaply. This is our objective. for all. It stipulates the duty of the bodies The places to which money from the EU of state power to communicate with each Structural Funds will flow are many. It will other electronically through data go to the creation, development, and ■ mailboxes, which will be obligatory for all maintenance of the basic registers of bodies of public power and legal entities. public administration including the system One of the objectives of the Biggest progress has been made in the of safe and protected access, the Ministry of the Interior in eGON fingers, which are the Czech POINT construction of the communication 2008 is progress in contact places. Thanks to the almost 2 500 infrastructure of public administration, and e-Government. What has Czech POINTs so far set up throughout the the construction of contact places for been done along this line Czech Republic, people will save the time communication with information systems, so far? For example, have they would otherwise spend going round and, last but not least, to electronic public some austerity measures authorities. administration services. been introduced due to e-Government? ■ You have mentioned electronic data I am deeply convinced that our BASIC REGISTERS mailboxes. Can you explain the OF PUBLIC concept of e-Government in the ADMINISTRATION principle of their function? as the brain form of eGON (see further on) Data mailboxes will enable us to is a fundamental change in the communicate with authorities comfortably Czech public administration. The from our homes by means of our personal relevant laws certainly simplify computers. We shall set up a mailbox for and accelerate Czech public everybody who applies for it, and send administration and make it them a personal identification number cheaper and more efficient. (PIN) which will serve as the password. PIN will be unmistakable for the birth number and will protect personal data better than COMMUNICATION INFRASTRUCTURE the birth number. OF PUBLIC ADMINISTRATION as the circulation e-GOVERNMENT system ■ ACT as the heart How will e-Government benefit foreign entrepreneurs and investors? The e-Government Act should be a great advantage to entrepreneurs, both foreign CZECH POINT and domestic. All that is needed for the UNIVERSAL use of data mailboxes is a computer CONTACT PLACE as the fingers and Internet connection. Electronic communication through data mailboxes will be quicker than going round from place to place, and will thus save money and human resources.

| 4 CZECH BUSINESS AND TRADE

Skilled Workers Drive the Economy

One of the Czech This enumeration, however, is useless Permanent growth of employment Republic’s important competitive for analytical purposes. Education as throughout the entire period from 1995 to the sole criterion disregards the fact 2006 is characteristic of the manufacture of advantages, which helped to there are also highly skilled people in electrical machines and devices, including attract foreign investors to the professions that require special manual communication equipment. While in 1995 country, was its highly skilled skills. The latter played an important role in this sector employed a little over 74 000 certain lines of production which were employees and the remaining branches and inexpensive labour. To what recipients of foreign capital in the 1990s. with highly skilled labour employed a total degree did highly skilled workers 180 000, in 2006 the number of persons help the Czech economy to ■ CHOICE OF SECTORS employed in the manufacture of electrical grow? Obviously a great deal, as The analysis of skilled labour is further machines and devices grew by nearly a half hindered by the absence of detailed in comparison with 1995, to 115 000, in sectors with higher demand statistics on the number of skilled workers while for the remaining branches under for skilled labour, added value employed in different companies. Let us review the increase amounted to less than grew faster. A professional therefore select several branches of the a quarter. The slower growth of the "rest" assessment of average wages, manufacturing industry and services sector was partly due to the drop in the number where demand for higher skills is to be of people working in banking and however, shows that in terms of expected. This selection comprises insurance. remuneration, university degree branches linked to information and This sample shows that changes in the qualifications are not adequately communication technologies and certain Czech economy related to employment services. Beyond the business sphere, strengthened the industrial sector rather valued in the Czech Republic. highly skilled workers also work in the than the services sector. The old EU states Economic theory claims that public sector (education and the health experienced quite the opposite trend. economic performance depends service) where in view of the predominance on the volume of capital and of the public sector, added value is ■ HIGHER EMPLOYMENT generated for the most part by their wages. INCREASES labour which generate value in In 2006, the sectors selected for scrutiny – With the exception of research and the economy. Does added value manufacture of electrical machines and development, employment increases in the in the Czech Republic grow the equipment, including communications, selected sample of branches were fastest in sectors that employ medical devices, banking, insurance, data substantially higher between 1995 and processing, research and development, as 2006 than the average for the economy as a larger number of highly skilled a whole, accounted for 6.6% of total a whole, where employment was more or workers? Is this qualification employment (in 1995 the figure was less stagnant (a negligible decrease of remunerated adequately? The 4.9%). Together with education and the 0.1% a year on average). Branches defined health service, where most employees are as spheres with highly skilled labour answer cannot be accurate – it is university graduates, these sectors employed many more new workers than quite difficult to define the accounted for 17.5% of total employment the manufacturing industry as a whole, meaning of “highly skilled“. In in comparison with 15.4% in 1995 (these where the number of workers grew on general, skill is linked to two branches of the public sector are, average by 0.1% a year between 1995 and however, not included in the following 2006. Lower employment increases and education, flexibility, knowledge analysis). rapid growth of wages in the sector may, of foreign languages, willingness however, be a sign of structural change. to learn new things, and so on. ■ EMPLOYMENT FIGURES Furthermore, if such growth is DISPLAY LESS FLUCTUATION accompanied by increases in added value, it Following marked growth rate changes in is a sign of growth driven by productivity. the latter half of the 1990s, lasting approximately until 2003, employment ■ RAPID GROWTH OF WAGES fluctuation and dynamics became less In each of the selected branches, wages marked in practically all the selected grew at a higher rate between 1996 and branches of the business sphere. After 2006 than in the economy as a whole. This 2003, branches with employment increases would indicate that higher qualifications displayed smaller year-on-year changes; were reflected in the rate of growth of branches with previous decreases (banking, wages. What is somewhat surprising is the insurance) displayed stagnation in the average annual growth of wages in number of employees. The data processing research and development (7.9%) which sector is, however, accelerating. Between was only slightly higher than the growth 2004 and 2006, the number of employees rate for the economy as a whole (7.5%), in the sector grew by 7.7% a year on despite the fact that this very sector clearly average, while the figure for the entire employs a large share of highly skilled Czech economy was only 0.3% (the annual people. A possible explanation is that increase for branches chosen for this research and development are financed analysis was 3% in total). from public – and considering the Czech

5 | ECONOMIC POLICY

budget – limited resources. In 2006, however, half of research and development spending was financed from private sources, of which half was funded by foreign investors. This signifies research and development are not sufficiently valued, despite above-average nominal wages in the sector. In 2005 (the latest reliable annual data made available by the Czech Statistical Office), average monthly wages in research and development, converted to full-time employment, were approximately 20% higher than the national average (in 1995 this surplus was Value added has been rising more rapidly in sectors with higher demand for qualified labour only 15%). insurance sector, added value grew on ■ EDUCATION PAYS LITTLE ■ HIGHEST WAGES IN THE average by 40% per annum, while in the In the Czech Republic, education is not BANKING SECTOR economy as a whole added value grew by reflected adequately in remuneration. This Over the past ten years, the banking sector a mere 7.4% per annum. However, the is evident from figures of the Employment has displayed practically the same average added value of the selected branches is not Classification, especially as regards growth of wages as the Czech economy as influenced exclusively by higher growth of professions in class "Scientific and a whole (7.6 % per annum). As this sector employee numbers and higher wages. intellectual workers", which covers a wide boasts the highest wages, even this Other elements include "non-wage" range of professions, from mathematicians average growth is leading to a greater factors, chiefly the impact of margins, the and project designers to architects, income gap between banking and other level of which is, in certain branches, teachers, and physicians, i.e. specialists in economic sectors in the Czech Republic. influenced by foreign trade prices, their professions, who are not managers, While in 1995 average wages in banking exchange rates, and so on. whose work requires university education. (excl. insurance) were 81% higher than the International comparisons of the share of A comparison of salaries across national average (EUR 514 in comparison wages in added value made by Eurostat professions shows, for instance, in 2006 with EUR 284), in 2005 the figure was 125% divide countries into "cheap" and the average pay of dental surgeons was (EUR 1 419 in comparison with EUR 636). "expensive" states. "The most expensive" EUR 1 117 and nearly identical with that For nearly the entire period between among EU states is the workforce in the earned by explosives experts (EUR 1 104). 1995 and 2006, employment in financial United Kingdom, with wages accounting for Philologists and linguists earned the same services fell, while total wages increased. 56.5% of GDP; on the contrary, the pay as coal and ore miners, i.e. EUR 999 This was the consequence of cost "cheapest" workforce is that of Slovakia, and EUR 994, respectively. Tarmac layers reductions made by banks in the late with a share of 37.2%. In the Czech Republic and pavers (EUR 831) earned more than 1990s, which continued even after the wages account for between 46% and 47% philosophers, historians, and political unfavourable period had passed, caused by of GDP, as is the case in Hungary and scientists (EUR 805). Archivists were the the critical condition of credit portfolios of Norway. In developed European countries lowest paid in the group of scientific and large banks. Cost reductions were a result this share is above the 50% threshold intellectual workers with just EUR 712, less of restructuring carried out by new foreign (53.5% in Denmark and France, 52.9% in than, for instance, concrete workers (EUR bank owners. The considerable growth of the Netherlands, 51.6% in Germany). 717) and just a little more than labourers productivity in the financial services sectors and unskilled road building and resulting from cuts in personnel also led to ■ MANAGERS AND OTHER maintenance workers (EUR 685). These the growth of added value, which was also EMPLOYEES comparisons show that education is not partly spurred on by rapid growth of profit In 2006, the difference in remuneration for adequately remunerated in the Czech from personal and small business credit work among professions in the business Republic. This is true in spite of the fact transactions, where banks attain higher sector in the economy as a whole was nearly that the wages of professions under margins than in trade with businesses. EUR 4 682. While directors and CEO’s of large scrutiny are also influenced by yet more Another reason for higher value added was companies earned EUR 5 095 on average per factors (risk, physical strain, and so on). the growing revenue from charges and month, at the other end of the scales the commissions since the end of the 1990s, wages of, for instance, cleaners totalled EUR Drahomíra Dubská which compensated for the previously high 395 and those of laundresses EUR 380. Analyst interest revenue. Naturally salaries depend on the sector the Economic and Statistical Analyses company operates in – while in the case of Department ■ WAGES AND ADDED VALUE banks and insurance companies the average Czech Statistical Office Besides profit, added value is generated by pay of top management exceeded EUR (e-mail: [email protected]) wages. In branches that employ highly 10 806 in 2006, in the automobile sector, real skilled employees, added value between estate or in private schools the remuneration 1995 and 2006 grew considerably faster on of directors and top management ranged Note: The conversion to EUR was made average than did employment or wages – between EUR 2 160 and 3 250 (in agriculture indicatively using the 2007 average the growth was a two-digit figure. In the the average wage was EUR 1 873). CZK/EUR exchange rate. Photo: Photocombo

| 6 CZECH BUSINESS AND TRADE

Kaleidoscope

■ CZECHS WANT TO GO ON WORKING AFTER REACHING RETIREMENT AGE

Most Czechs want to carry on in their paid 72% of economically active Czechs want to other hand, 78% of the population of 41 to employment when reaching retirement have paid employment even after 50 year-olds disagree with the idea of age. Their share in the population is the registering officially as pensioners. In the retiring at a later age. Voluntary retirement highest not only in Central and Eastern capital city of Prague, in central Bohemia, is very seldom used in the Czech Republic. Europe but almost worldwide. This has and most large towns as many as 34% of Only 39% of Czechs have voluntarily been demonstrated by a research of the pensioners have paid jobs. Most of these terminated their employment before AXA financial group, AXA Retirement employees are people up to 71 years old. reaching official retirement age. In West Scope 2008, which monitored the stands The research also showed that the young Europe over 50% of people retire early, and and views of employed people and generation of the Czech population is not in Canada it is even 84%. The low figure in retirees in 26 countries. Only the opposed to an increase in the official the Czech Republic is due to the proportion of Japanese who wish to be retirement age. People under 40 realise that penalisation of early retirees by employed in retirement age is higher. a higher retirement age is necessary. On the a permanent reduction in old age pension.

■ CZECH BEER TO BE REGISTERED AS A PROTECTED GEOGRAPHICAL INDICATION

Czech beer will join the list of foodstuffs used in most other countries," explained showed that, thanks to the specific protected by the European Union Ivo Hlaváč, First Deputy Minister of qualities of Czech beer, it is possible to indication. "According to experts, Czech Agriculture of the Czech Republic. At the determine whether an unknown sample is beer is unique thanks to the used turn of the millennium the Research or is not a Czech beer with 95% certainty. ingredients – special species of barley Institute of Brewing and Malting in Prague "The criteria that define 'Czech beer' are and hops – and specific production examined a number of world beers in two strict; for instance, the designation can technology, which is different to that separate years. The results of research only be applied to beers containing 2.6- 6% of alcohol and brewed in the Czech Republic. This means breweries that brew ■ SYSTEM OF PROTECTED INDICATIONS their beer abroad based on a licence will not be allowed to use this designation for The purpose of protected geographical indications is to protect the names of high-quality beer brewed outside of the Czech agricultural and food products that have gained repute in the EU and worldwide against Republic," clarified Petr Gandalovič the competition of products that seek to imitate them illegally. The aim is to promote Minister of Agriculture of the Czech a system of EU quality vis-`a-vis third countries. The EU has been trying long-term to Republic. The Czech Republic will be the achieve full recognition of this system within the WTO. first state in the European Union with a protected national technology.

■ TECHNICAL NORMS WILL BE CHEAPER AND BETTER ACCESSIBLE

As of 1 January 2009, Czech technical norms (ČSN) will be drawn up and ■ FULFILLING THE PRIORITIES OF NORM TRANSFORMATION issued by the Czech Office for Standards, Metrology, and Testing. 1. To fulfil the priority concerning better accessibility, all valid ČSN will be published in Norms will be cheaper to purchase for "certified" electronic format (PDF) allowing all interested parties who register companies, better accessible, and easier according to the rules to make individual print-outs. At the same time, to understand. The Ministry of Industry professionally printed ČSN will remain available. As can be assumed on the basis of and Trade of the Czech Republic has set negotiations that have taken place, other entities, such as the Czech Chamber of three basic priorities to be achieved Commerce, will also participate in distributing and making the ČSN accessible. through transformation. The first 2. The priority to lower ČSN rates will mean reducing fees for access to the ČSN, priority is better accessibility of ČSN in especially its electronic form. It is also expected that the price of professionally its electronic form. The second priority printed ČSN will be reduced. This will be made possible by increasing the efficiency is to significantly reduce ČSN rates – cut of the entire system. of up to 50% of current prices. The third priority is to improve the clarity of 3. The priority to increase the clarity of norms entails influencing their content ČSN content and terminology. The through the active participation of Czech experts, whether from the public or Czech Republic will thus likely become private sphere, in the process of drafting. Measures have already been taken on the the first EU country to make its terminology front to improve current conditions, contribute to an unambiguous technical norms accessible in such wording of the ČSN, and also improve the unity of terminology of the ČSN and away. valid legislation.

7 | LEGISLATION

Labour Law in the Czech Republic

The new Labour Code in effect ■ NEW LABOUR CODE since the beginning of 2007 is The new Czech Labour Code came ALTERATIONS OF into force on 1 January 2007. Act No. CONTRACTUAL TERMS characterised by a higher degree 262/2006 Coll., the Labour Code, replaces The Labour Code allows changes to the of contractual freedom and the previous Code which governed labour- content of an employment contract only if flexibility of labour-law relations. law relations for over 40 years. Provisions of there is agreement between the employee The amendment in effect since the Labour Code address all labour-law and the employer. Any alterations to the relations that exist between the employer employment contract must be made in the beginning of 2008 and the and the employee in the private sphere. The writing. finding of the Constitutional new legislation provides contractual parties The Labour Code stipulates certain cases Court also dating from 2008 with a broader freedom to manage their where the employer may transfer an labour-law relations. Employers may also employee to perform work of a type other reaffirm this trend which, it conclude employment contracts that are not than agreed in the employment contract seems, will continue on into the explicitly governed by the law as long as such without the prior consent of the employee. future. contracts are not in violation of the content In cases other than those defined by law, it is and purpose of the law. inadmissible to transfer an employee to perform other work than that agreed in the BINDING REQUIREMENTS employment contract without the prior An employment relationship is based purely consent of that employee. The employer on an employment contract. Employees in may, for instance, send an employee on managerial roles may be appointed to their a business trip defined in the Labour Code as position, however an employment contract a limited period of time for which the must be concluded nonetheless. The non- employer instructs his/her employee to work competition clause is not limited to away from the agreed place of work employees in managerial positions only; it performance. The employer may instruct an may be concluded with any employee. The employee to go on a business trip only for following terms must be agreed by the the necessary period if the trip has been employee and the employer within the agreed with the employee. employment contract: the type of work, the place of work where the employee will CHANGES TO NOTICE perform his/her duties, and the date on The employer may give notice to an which the employee will take up duties. The employee for reasons listed in the Labour Labour Code obliges the employer to notify Code only. The notice period has been the employee in writing of his/her unified to two months. At the same time, an fundamental rights and obligations arising increase has been made to severance payable from the employment relationship if such by the employer to employees who are information is not included in the dismissed on grounds of redundancy. The employment contract. severance pay has been raised from two to If the necessary terms of employment three times the employee's average monthly have not been fixed within an employment earnings. contract, the employee has, however, already begun to perform work for the employer FIXED-TERM CONTRACTS (with the employer's agreement), the A fixed-term employment contract may be employment relationship between the concluded or extended in total for employer and employee is thereby a maximum period of 2 years from the established and, as such, is subject to the beginning of the employment relationship. Labour Code. The employee is thus Where a period of at least six months has guaranteed all rights ensuing from the expired from the end of the previous labour-law relationship (especially the right employment relationship, such previous to remuneration for work performed). employment shall not be taken into account.

EMPLOYMENT CONTRACT FORM MINIMUM WAGE The Labour Code stipulates the employment REQUIREMENTS contract must be concluded in writing. In the Czech Republic remuneration is However, it also states that where an governed by provisions of the Labour Code, employment contract is not concluded in as is the minimum wage, the amount of writing, it is not automatically considered which is also set in accordance with the invalid. The Labour Code makes no mention Labour Code. The minimum wage in the of the language to be used in the Czech Republic is fixed at CZK 7 955 (approx. employment contract. The choice of EUR 339) per month. The minimum hourly language is thus left to the parties to the rate is fixed at CZK 48,10 (approx. EUR 2). contract. However, collective agreements may Photo: Photocombo

| 8 CZECH BUSINESS AND TRADE

stipulate a minimum wage higher than the employees of employers not engaged in in collective agreements over provisions of minimum wage required by law as stated in business activities is set at five weeks. the law. the Labour Code. Pedagogical and academic employees of Social security and health insurance universities are granted an annual leave of b) Decision of the Constitutional Court contributions as well as state employment eight weeks. In the case of employees of Changes in the Labour Code have also been policy contributions are deducted from the employers engaged in business activities, brought about by the finding of the employee's income. Each employer is obliged collective agreements and internal Constitutional Court published in the by law to deduct these contributions as well regulations may stipulate an extension of Collection of Laws under No. 116/2008 Coll. as income tax advance payments. Since annual leave by additional weeks or days on 14 April 2008. The Constitutional Court 1 January 2008, the progressive taxation of without limitation. Employees are entitled to partly satisfied the motion of a group of personal income has been replaced by a flat full compensation of income for the time of Deputies and Senators and repealed 11 income tax rate of 15% (as of 1 January their annual leave. In addition to paid annual provisions (or their parts) of the Labour Code. 2009, this rate will drop to 12.5%) and the leave, employees are entitled to leave from The Constitutional Court primarily repealed so-called "super-gross wage" (gross wage work on the thirteen public holidays unclear sections of the Code and limited the plus health insurance and social security stipulated by a special legal provision. authority of unions (provisions governing the contributions paid by the employer). The supervisory powers of unions and those income tax base of employees is thus ■ CHANGES TO THE LABOUR favouring large union organisations). calculated as the gross wage (without CODE IN 2008 The definition of cogent provisions of the deducting social security and health a) Amendment to the Labour Code Labour Code (those that may not be deviated insurance payments made by the employee) Since the new Code entered into force, from contractually) was found too plus the amount paid in social security and certain technical and legal inaccuracies have complicated and vague and, as such, was health insurance by the employer. At the come to light. The Government has therefore changed. In future, cogent provisions will be same time, a maximum annual employee prepared an amendment, which came into limited to those explicitly defined as such by assessment base has been introduced for force on 1 January 2008. The purpose of this the Labour Code, those whose nature implies paying the premium amounting to 48 times so-called technical amendment is to liberalise it and provisions that implement legislation the average wage. the labour market and eliminate all of the European Communities, given that the obscurities and inaccuracies within the new deviation would not benefit the employee. WORKING HOURS Labour Code. The amendment introduces The relation between the Labour Code The maximum length of working hours as the following new features to Czech labour and the Civil Code was also addressed. In defined by law may not exceed 40 hours per law: future, the Civil Code will always apply in week (with the following exceptions: 37.5 cases where the Labour Code lacks hours in the case of employees who work ❚ It omits the requirement to obtain the provisions applicable to the case at hand underground and those who work a three- agreement of all employees for (instead of only in cases when the Labour shift pattern; 38.75 hours for those working introduction of the working hours account Code itself explicitly states so). a two-shift pattern). Generally speaking, an ❚ It permits the negotiation of higher rewards employee is entitled to rest lasting at least 12 for work at night and at weekends within ■ PLANNED CHANGES TO THE hours between the end of one shift and the the collective agreement as a fixed amount LABOUR CODE beginning of the following shift as well as ❚ A work break for food and rest may be split Another important conceptual amendment one uninterrupted period of rest lasting at into more parts as long as at least one part to the Labour Code is currently being least 35 hours per week (a week is of the break is at least 15 minutes in length prepared by an expert committee of the understood to mean seven consecutive (previously each part of the break had to be Ministry of Labour and Social Affairs. Act No. calendar days). A fine may be imposed on at least 15 minutes in length) 187/2006 Coll., on Sickness Insurance, has employers who fail to observe the rules ❚ It permits employees under the age of 18 already been passed and will come into force governing working hours and periods of rest. to perform work for the standard 40 hours on 1 January 2009. Sickness insurance will If an employee has worked continuously a week 8 hours a day, whereas previously newly be administered exclusively by sickness for six hours at the most (four and a half they were permitted to work for insurance authorities (and no longer by hours in the case of employees under the age a maximum 30 hours a week and 6 hours employers). Legislation governing employee of 16), he/she must be provided a work break a day. accident insurance should come into force on for food and rest lasting at least 30 minutes. ❚ It permits employees who are caring for 1 January 2010. Under the current system, This time is not included in working hours. a child under the age of 1 to work the employer must be insured against liability The employer is obliged to keep a record of overtime. for damage caused as a result of work- working hours, work overtime, standby and ❚ It stipulates cases where employees will not related accidents and occupational disease. night work for each individual employee. be entitled to increased severance pay New legislation will transfer employee Overtime in excess of the 40 hours per upon the termination of their employment accident insurance to the social security working week limit is permitted only under relationship for reasons of health. system. Preparations are also underway for certain conditions and is rewarded at ❚ It permits overtime in the case of an anti-discrimination law which, however, a higher rate. employees in management positions in has not yet been passed. This law should view of the nature of their work (however, come into force by the end of 2008. ANNUAL LEAVE WITH PAY overtime may not exceed 150 hours per Pavel Jakab The standard length of annual leave with pay year). Lawyer is fixed at four weeks per calendar year. The ❚ It gives supremacy to provisions on pay for PETERKA & PARTNERS v.o.s. law firm basic length of annual leave in the case of work performed during weekends settled www.peterkapartners.com

9 | BUSINESS AND PRODUCTION

Changes of Shopping Behaviour in the Czech Republic

The standard of living in the ■ ENTRY OF LARGE RETAIL reflected, not only in a broad range of goods, Czech Republic is steadily CHAINS but also in long-term low prices. The Czechs, The most significant changes in who are well-known for their pragmatic increasing and, according to consumer behaviour were brought about by approach to life, have adapted quickly and Eurostat estimates, the the appearance of large retail chains in the have substantially changed their shopping purchasing power of the Czech Czech market. During the 1990s, at first habits. mostly Czech firms started to operate in the population is expected to reach retail market, to be increasingly followed by ■ THE CZECH REPUBLIC WAS 82% of the average of EU international companies later. The opening A GREAT OPPORTUNITY countries in 2008. In less than of the market in central and eastern Europe While in the early 1990s it was normal to go twenty years of the gradual offered big retailers the chance to enter an shopping every day and 80% of consumers absolutely unsaturated market with a huge bought fast moving goods in small shops transition to a market economy, consumer appetite. The expansion of the owned by Czech retailers, the ratio has been great changes have thus modern forms of sale was unprecedented. reversed and at present consumers buy 78% occurred in lifestyles as well as For example, the first hypermarket was of products for regular consumption in opened in the Czech Republic by the modern retail format locations which are consumer and shopping Carrefour company in 1997, and ten years owned by international companies. The behaviour. later there are 22 hypermarkets per million markets of Central and East Europe have inhabitants, which ranks the Czech Republic become an extraordinary opportunity for among countries with the densest networks international retail firms to expand and in Europe and gives it top position among especially west European firms were keen to the countries of Central Europe. gain as high shares of the markets as Shopping venues of Czech consumers for fast moving goods

% 2000 2007

16 22

38 25

31 36 18 15

Hypermarket Supermarket Discount store Small shop Source: GfK, Shopping Monitor CEE 2008 ■ THE POPULARITY OF possible. These firms took advantage of the situation when there were no major DISCOUNT STORES IS RISING obstacles to their entry and countries of A rapid growth has also been recorded in Central and East Europe had benevolent discount chains. The number of discount laws, in contrast to countries where the stores is close to five hundred and the Czech retailers had their seats, such as France, Republic has the second densest network of where building a new hypermarket is next to discount stores in central Europe, after impossible because of a strict regional Hungary. The keen competition was good for planning regulation, or in Germany with its consumers because it was extensively considerable limitations on opening hours. In Development of the number of hypermarkets in the Czech Republic an effort to gain control of market shares, retail companies were ready to invest in the 250 231 future, without being under pressure for 215 short-term return on investment, unlike 192 200 domestic under-capitalised firms that lacked 161 even the basic commercial know-how. 145 150 127 ■ DEPARTURE OF SOME 106 CHAINS 100 82 The Czech market, with its 10 million people

51 a small one for retail companies, has seen an 50 unusual situation in which renowned firms, 25 such as Carrefour, the second-largest 2 7 0 distribution firm in the world, have failed. 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Concentration processes thus logically Source: GfK, Shopping Centre & Hypermarket 2008 started at the turn of 2005/2006 and

| 10 CZECH BUSINESS AND TRADE

Carrefour, Edeka, Delhaize le Lion (Delvita) households accounts for 41% of total enough, but with regard to demand and to have left the Czech market. The Plus chain of household expenditures and the 30-39 age EU support for ecological farming, the offer discount stores announced its departure in group makes up the largest share of the from Czech producers is likely to grow. May 2008. Czech retail is thus consolidating clients of hypermarkets and shopping Another example of the tendency to healthy and the chains are starting to build up their centres. lifestyles can be seen in the increase in the profiles. sale of non-alcoholic beer. It is well-known ■ NEW GENERATION that the Czech Republic has had the highest ■ HYPERMARKETS TOP OF CONSUMERS consumption of beer per inhabitant in the POPULARITY LIST The new generation of Czech consumers world (about 158 litres annually) for many As the retail market is changing, and cares about healthy lifestyles, is well informed years. Despite that, the production and especially in connection with the growing about market supply, in consumption and consumption of non-alcoholic beer is rising standard of living and the growing social shopping regards the related experience as an fast and it has become the most dynamically differences, consumer and shopping important criterion, increasingly uses the growing beer category at present. Although behaviour is beginning to change as well. At Internet, and is frequently interested in it accounts merely for 1.65% of total sales, the end of the 1990s hypermarkets and environmental issues. The young generation non-alcoholic beer has been rising more than shopping centres were a form of spending is also different as it does not fear the future 30% year on year. So-called Fair Trade leisure time for many Czech households, and is ready to borrow, not only for housing, products imported from developing countries rather than places to do shopping (at that but also for consumption. According to are beginning to appear on the Czech time a number of consumers lacked research conducted by the private Czech market as well. According to estimates of the sufficient financial resources for real research agency STEM, 80% of respondents Czech Fair Trade Association, the sale of this shopping, but welcomed the possibility of up to 30 years old consider it normal to "live type of product has risen by 70% year on using the modern facilities of the shopping on credit". year, which proves the growing social responsibility of Czech consumers. Development of market shares of TOP 10 retailers in the Czech market

% 70 66 63 ■ STRESS ON FRESHNESS 60 53 AND QUALITY 50 51 47 The stress on quality is apparent in the fall of 50 44 41 the volume of the sale of fresh goods in big 40 34 format stores. For example, over a half of 30 24 consumers do not buy meat and fresh bakery 18 20 15 products in these stores nowadays because 12 10 7 8 they prefer small specialised shops. Fears that modern big-size formats of sale will liquidate 0 1993 1994 1995 19961997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 small independent retailers have thus not Source: Incoma and Moderní obchod 1/2008, page 12 been confirmed. However, it is crucial that small shops offer a higher value added, i.e. malls to view the goods). Nowadays ■ ORGANIC FOODS AND FAIR fresh goods, a pleasant shopping hypermarkets are the most frequented TRADE environment and a specialised range of shopping venues for Czech households. With Healthy lifestyles and social responsibility are products. the growing purchasing power, consumers a trend in all developed countries and they begin to differ more and more and require are beginning to gain ground in the Czech that retail meet their specific needs and Republic as well. The consumption of organic wishes. foods increased by 70% last year as compared to 2006 and Czech households Hana Machková ■ COMPETITION LEADS TO spent a total of EUR 46.5 million on buying Head of the International Trade Department SPECIALISATION these foods. More than 60% of bio products University of Economics, Prague Retail chains, which pursued similar are imported to the Czech market because (e-mail: [email protected]) strategies for many years and sought mainly supply from domestic producers is not broad www.vse.cz to maintain low prices, have now started increasingly to build up their specific profiles. Typology of consumers in central European countries by age and purchasing power In October 2007, for example, Tesco, who % 100 introduced to the market a line of natural 22 24 21 19 fresh and non-perishable foods of the Tesco 80 Organic brand and has launched an organic 23 20 20 26 60 fruit and vegetables range called Tesco Bio, is 15 14 18 22 starting to develop its format of more 40 expensive smaller convenience stores called 41 38 44 Tesco Express, which offer bakery products 20 33 from their own bakeries, ready meals, fast 0 foods, and a broad range of wines. These Czech Republic Slovakia Hungary Poland stores target the group of higher-salaried Young rich Young poor young educated consumers. According to Old rich Old poor research, this target group of young rich Source: GfK Group, Consumer Tracking, November 2007

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

ALTA of the Czech Republic has ■ CONSTRUCTION OF THE world’s largest wagon works, OAO NPK become the general contractor for PRIOSKOL COMBINE Uralvagonzavod. The deal is worth EUR 1 Prioskol iron ore deposits in the Belgorod billion at present. Another strategic customer the construction of the Prioskol region are part of an important iron-ore basin and partner of ALTA since 1992 is RUPP iron ore mine, owned by called the Kursk Magnetic Anomaly with an BELAZ of Belarus, a manufacturer of giant Magnitogorsk Metallurgical area of 160 000 sq. km and 30 billion tonnes dump trucks. ALTA also operates in Vietnam, Combine (MMC) – the largest in ore reserves. MMC won the ownership which it supplies with mining equipment. right to these reserves in an auction held in company of its kind in Russia. This November 2006. In January 2008, MMC ■ BRIEF INTRODUCTION is the first construction of an ore founded a branch in Prioskol, called Prioskol OF THE COMPANY combine in Russia in 30 years and GOK, and concluded a contract with the ALTA, a.s. is a supplier of technological CentrGiproRuda project design institute for equipment for the power industry, at the same time the largest the preparation of project documentation. metallurgical works and the engineering and project of its kind in Europe in the This project will provide MMC with a supply mining industries. In 2007, its consolidated past several decades. ALTA will of raw material for over 60 years of revenues amounted to EUR 322.7 million and manage the implementation of production. consolidated company profit totalled EUR 8 The project, which is in its preparatory million after tax. In comparison with 2006, its the entire project, including its phase (the first stage will cost EUR 200 profit showed a 34% increase. In 2005, ALTA financing. The cost is estimated at million and comprises preparatory work and Group expanded by acquiring TOS Kuřim EUR 3 billion. the exposure of deposits), involves the engineering company, the Kuřim Foundry, construction of the entire works, from iron and KSK Kuřim. ore extraction to its processing, including the More information at www.alta.cz preparation of iron concentrate. The greatest opportunities will be available to Czech ■ BRIEF INTRODUCTION heavy engineering, providers of transport OF THE RUSSIAN PARTNER and mining technology. The new combine The OAO Magnitogorsk Metallurgical will begin supplying iron ore in 2012. In 2016 Combine is one of the world’s largest steel its output is expected to reach 25 million manufacturers and a leader on the Russian tonnes. market. It is a vast metallurgical complex with a full production cycle, ranging from iron ore ■ EXPORT ACTIVITIES preparation to steel processing and the Ninety per cent of the company’s turnover is manufacture of products with high added generated by activities in Russia, the Ukraine, value. In 2007 the combine’s output and Belarus. It supplies heavy engineering amounted to 13.3 million tonnes of steel and works, the mining industry, metallurgy, the 12.2 million tonnes of metallurgical A memorandum on strategic co-operation worth EUR 3 billion was signed by Viktor Rashnikov, power industry, and the building materials products. Its sales volume reached USD 8.2 president of the Magnitogorsk Metallurgical industry in particular. In 2007, ALTA billion, while net profit equalled USD 1.8 Combine, and Vladimír Plašil, chairman of the board concluded contracts in Russia worth over of directors at ALTA, a.s. The signing ceremony was billion. attended by Czech Prime Minister Mirek Topolánek EUR 40 million. Its most important project in and Martin Říman, Minister of Industry and Trade. Russia so far is the modernisation of the More information at www.mmk.ru Photo: ALTA archives Photo: ALTA

JTEKT of Japan Expands its Pardubice Plant

In July this year, JTEKT of Japan Until recently, the company supplied Agency, JTEKT has invested over EUR 45.02 launched production of steering its customers, especially the local million in the Czech Republic. This sum also Toyota Peugeot Citroen ¨ Automobile includes the expansion of the Pardubice boosters for cars in its works in works, with precision parts for gearboxes. works," Alexandra Rudyšarová, Acting Pardubice. The steering booster is The Japanese owners invested more than Managing Director of CzechInvest, pointed a useful device, which also EUR 18.01 million in the expansion of the out. "What is important is the trade policy works. The official opening of the of JTEKT, which purchases large quantities reduces fuel consumption and modernised factory took place on 14 July of material and services from Czech thus the environmental burden. 2008. businessmen, whereby it helps to boost "In co-operation with CzechInvest the region’s economic development."

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■ NO NEW GREENFIELD components. JTEKT came to the Czech JTEKT Automotive Czech Pardubice has "I am glad JTEKT has decided to use its Republic five years ago, together with been operating in the Czech Republic since existing plant in Pardubice. In part, the Toyota Peugeot Citroen ¨ (TPCA) car factory 2003. In Pardubice it employs some 400 new production will take advantage of the in Kolín, which it supplies with most of its people, and its sister company in Plzeň has technical facilities and experience of the products. created jobs for 500 more specialists. existing works, without the need for Worldwide, JTEKT Group, which belongs a complete new greenfield investment," ■ THE JAPANESE ARE to the Toyota concern, has over 30 000 says Pavel Háněl, Managing Director of IMPORTANT INVESTORS employees and, in terms of sales volumes, JTEKT Automotive Czech Pardubice s.r.o. "Japanese companies are doing extremely it is the world’s twentieth largest "Moreover, the manufacture of steering well in the Czech Republic. According to contractor in the automotive industry. It booster components will become our most the JETRO Japanese trade promotion ranks top among European producers of important production segment, and we organisation, a total of 226 Japanese power steering boosters. Total company shall keep it in focus also in future. I must companies are operating in the Czech revenue amounts to the equivalent of EUR point out this is a product that helps to Republic, where they employ over 44 000 4.61 billion. reduce exhaust fumes produced by cars, so people and thus constitute an important we are ultimately helping to reduce the part of the Czech economy," Alexandra environmental burden." Rudyšarová adds. "According to In its plant in Pardubice, JTEKT CzechInvest’s statistics, Japanese More at www.jtekt-pa.com manufactures parts for gearboxes using businessmen are the second most active aluminium die casting and CNC machining investors in the Czech Republic, after of steel elements. A similar technology will Germany, with Japanese projects worth Jiří Sochor be used for power steering booster more than EUR 3.64 billion." CzechInvest

13 | CZECH BUSINESS AND TRADE

Information and Communication Technologies in the Czech Republic

The Czech Republic's economy is ■ ICT MARKET third place in the world in terms of profiting from the positive trend According to the EITO 2007 study attractiveness to foreign investors (rating (European Information Technology 7.26), behind India (7.76) and China (7.34). of recent years: low inflation of Observatory), the Czech Republic has one of A Gartner Group study about countries 2.8% (2007), two-digit export the most developed markets from among ideal for offshore IT services ranks the Czech growth (14.6% in 2007), positive the new EU member countries. It maintains Republic in the first place in Europe, the balance of foreign trade, and the highest level of IT spending in terms of Middle East, and Africa, before Hungary, GDP (3.2% in 2006) in the region, followed Ireland, and Israel (source: Martin Noska: continuous GDP growth (6.6% in by Estonia (2.86%). This figure is What Will the IT Market Look Like in 2008). 2007). Labour productivity is comparable to many West European A recent Ernst & Young survey arrived at growing hand in hand with the countries (the EU 15 average is 2.72%). a similar conclusion, stating the Czech Overall ICT spending increased to EUR Republic has maintained its 9th place growth of the economy. The 6 914 million in 2006, which represents an among ten of the most attractive countries Czech market of information and increase of 9.2% against 2005. According in the world for foreign direct investment. communication technologies to IDC, further growth of approx. 8.4% is ■ (ICT) has also experienced expected in 2007. SUCCESS OF CZECH ICT The share of costs for software and COMPANIES ABROAD turbulent growth during recent services related to the maintenance of Many Czech ICT companies have made years. According to OECD and hardware in total expenditure is generally a breakthrough abroad. The quality of IDC data, the Czech considered a reliable indicator of the Czech IT professionals abroad has been Republic’s investments in maturity of a given IT market. According to demonstrated by many successful IDC reports, IT hardware costs amounted to companies, such as LANGMaster information and communication "just" EUR 1 034 million in 2006, i.e. about International, CN Resources International, technologies are comparable 35.5% of the overall IT expenses. The IT 2N TELEKOMUNIKACE, and many others. with the EU average (measured services market in the Czech Republic The success of Czech IT companies displays two-digit growth each year (10.0% abroad was started off by Software 602 at in % of GDP). to EUR 1 017 million in 2006). the beginning of the nineties. The fame of The Czech Republic has recently become the "timeless" T602 text editor is now an important centre for the provision of emulated by other Czech companies. high value added services (see the box One of the greatest exporters of anti- entitled Foreign Investment on p. 17). This virus software AVG is Grisoft, a Brno-based fact is further underlined by the CEO company with international success (a 65% Briefing — Corporate priorities for 2005 company share was acquired by Intel study which ranks the Czech Republic in the Capital and Enterprise for EUR 43.23 million in 2005). Prague's OKsystem has extended the not so numerous ranks of successful Czech solution providers for European research projects. The company has been developing a solution for EU identification cards during the three-year Onom@topic+ project (European Smart Card Platform for Citizenship and Mobile Multimedia Applications). A consortium of 17 organisations from 7 countries worked together on this project. The result is a chip card operating system design and the design and implementation of middleware. OKsystem shall also participate in the subsequent BioP@ss project that will engage the use of biometric methods. An increasing number of Czech companies are establishing branches abroad. For instance, Cleverlance has established a branch in Slovakia. Other companies are heading for more distant countries. Zoner supplies graphics and digital photography software via its offices in the USA, Slovakia, and Hungary. It recently opened a new branch in Japan. The example of Bohemia Interactive IBM Brno Integrated Delivery Center in Brno has more than 2 400 employees

Studio shows there remains room for Photo: IBM archives

15 | SERVICES

innovative solutions. Based on the world- famous game Operation Flashpoint and its newer engine, the Australian branch, Bohemia Interactive Australia, created Virtual Battlespace Systems 1, a tactical simulator for the military in the USA, Australia, and other countries. It is a three- dimensional training system for teaching tactics to small units. Czech companies have also had considerable success in developing mobile phone games, as displayed by Multiplayer Reversi, a multi-player logic game developed by Geewa, a Czech company. In June 2008 it was the most popular application for the iPhone smartphone introduced by Apple, Inc. At the same time, Apple employees chose the game as "Staff Pick", i.e. worthy of attention.

■ MOBILE PHONE NETWORKS At present the business environment is highly competitive as there are three mobile phone networks in the Czech Republic operated by Telefónica O2, T-Mobile, and Vodafone. These established companies have been joined by one other operator: Mobilkom with its U:fon network. The number of active mobile phone users increased year-on-year by 6.7% to 12.56 million in the first half of 2007. There were 123 mobile phone numbers per 100 persons, eight more than last year. 13 million active numbers are indicated for 2008.

■ E-GOVERNMENT IN THE CZECH REPUBLIC The government of the Czech Republic pays In the Czech Republic, 40% of households have personal computers and 32% of households have Internet a lot of attention to making the public connection administration services provided to companies and citizens more effective by modifying processes with the help of facilities will prevent data duplication and ❚ Public administration, particularly legal available information and communication will uphold required security standards. proceedings, administration and tax technologies. At present, the government is 2. Universal contact point (Czech POINT – procedures, management of electronic discussing a document entitled "Strategy for assisted or self-service communication records allowing for an easy transfer of the Development of Services for the with the public administration, public agendas between different public Information Society in the Czech Republic for administration portal and individual administration bodies. 2008 – 2012". Its main purpose is to allow agenda portals, system of data accounts). ❚ Administration of state and municipal citizens and businesses to communicate 3. Guaranteed and secure electronic assets, especially records of assets, budget comfortably, securely, and reliably with the communication between authorities and procedures, the state treasury, disposal of public administration on all levels and between citizens and authorities, assets and finances, public tenders, regarding as many life situations as possible. including independent oversight of subsidies. conformance to security and operational The strategy will be implemented through rules. The introduction of the aforementioned a series of mutually interconnected projects; 4. Digitalisation of data funds and archiving services is also an opportunity to initiate the projects will be divided into five thereof. deep reforms of the public administration – programme areas: 5. Services for "information society", chiefly its organisational and procedural 1. Basic registers and identification (land mainly in the following areas: aspects. Therefore, e-Government is not an identification and real estate register; ❚ Healthcare, care for the retired, schools; end, but a tool for achieving a more citizens register; persons register; register especially as concerns electronic user cards effective public administration. of rights and duties) together with (insurance policy-holders, school children, Upon the dissolving of the Ministry of students). organisational architecture and technical Informatics, a number of competences were Photo: Photocombo

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passed to the Ministry of the Interior, which Intellectual Property Rights): Bern and Rome Republic ranked 10th. All the other post- is now responsible for e-Government. The Conventions on International Copyright and communist countries are lagging behind as Chamber of Deputies passed a law on Neighbouring Rights, Paris Convention, well as many West and South-European electronic actions and authorised the Madrid Agreement, Nice Agreement, Lisbon countries, such as France (45%), Italy conversion of documents on 25 June 2008. Agreement, Protocol Relating to the Madrid (51%), and Spain (46%). Laws concerning basic registers are now Agreement, the Trademark Law Treaty, being prepared. Czech POINTs have become Patent Cooperation Treaty and Convention ■ IT IN THE CZECH REPUBLIC operational, allowing citizens to settle on Awarding European Patents for ON A PAR WITH THE a number of tasks in a single place, Industrial Rights, Budapest Treaty on DEVELOPED WORLD including obtaining an extract from criminal Biotechnology, and Treaty on Intellectual In conclusion, it is possible to say most records, an extract from the real estate Property in Respect of Integrated Circuits. Czech entities, be it in the public or private register and, as of 1 July 2008, applications After the conclusion of the TRIPS sector, have already implemented to the Trade Licensing Office. A number of Agreement, the WIPO (World Intellectual information systems comparable to similar other projects are in the pipeline. Property Organisation) Internet Treaties systems used in other countries of the EU. were signed - they improve the protection The Czech Republic has a highly competitive ■ INTERNET AVAILABILITY of copyright and related rights. market with discerning customers and As concerns the Internet and its accessibility According to BSA (Business Software competent local business entities with in the Czech Republic, it is very difficult to Alliance) statistics, the rate of software business culture comparable to that of determine total Internet penetration. The piracy in the Czech Republic was 39% in similar entities in EU or OECD countries. record growth of customers was spurred 2007, one percentage point less than in on, especially by offers of new services, 2005. The Czech Republic has managed to price reductions, expansion of coverage, lower the rate of piracy by 27 percentage Miloslav Marčan and the continuing development of data points from 66% in 1994. In comparison to CIO, Ministry of Industry and Trade technologies. other EU member states, the Czech www.mpo.cz According to a survey by the Czech Statistical Office from the summer of 2007, almost 40% of households own a personal computer – PC (1.7 million households). ■ FOREIGN INVESTMENT 32% of households have an Internet The performance of the IT industry is expected to be spurred on by foreign direct connection (1.35 million households) most investment which has been flowing into this branch in recent years. IBM became the of whom use a broadband connection (1.1 investor of the year 2006, when it officially opened an information technologies million). Almost a quarter of all connections outsourcing centre in Brno in April 2006. Today, the centre services over 600 clients use wireless technology. The figures on the worldwide. IBM Brno Integrated Delivery Center employs over 2 400 persons of more overall number of WiFi connections rank the than 70 different nationalities. Czech Republic in the position of European In June 2006, Hewlett-Packard opened regional headquarters for production wireless superpower (source: www.czso.cz). management and distribution of personal computers, printing and image processing Internet access among Czech businesses products in Europe, the Middle-East, and Africa. Honeywell of USA also chose Prague is also very high. According to the Czech for its global centre for support of its aviation manufacture in the same region. Statistical Office, 95% of Czech businesses Microsoft software giant has built a European centre for support of mobile with ten or more employees had Internet technologies, which became operational in January 2007. In February of the following access in 2006 (approx. 38 000 businesses year, Microsoft opened the so-called Microsoft Innovation Center in Brno in in total). When compared to the end of cooperation with the South Moravian Innovation Centre. The aim of the centre is to 2001, there is almost 18% growth. support promising start-up companies, mainly from the IT field, and thus help the development of innovation and innovative business in the Czech Republic. ■ LOW RATE OF SOFTWARE Computer Sciences Corporation opened a new service centre in 2007. The centre PIRACY will provide a wide range of IT services. The progress the Czech Republic has made Another American company – Red Hat – one of the world's leading suppliers of in relation to protection, adherence to, and software based on open source code, opened a new development centre in Brno in enforcement of intellectual property rights 2007. With 207 professionals, the centre ranks among the company's most important ranks it among the most developed branches. countries of the world. Through intensive ICT investments are not limited to foreign companies. This is clearly illustrated by work during the past few years, the Czech the fact that a genuinely Czech company (Logos) was named most important investor Republic has built a very solid foundation of the year in 2007 in the area of strategic services for the expansion of its Prague IT for effective protection of intellectual development centre. property rights, a foundation that all The list is concluded by Novell, which opened its Suse Linux global support centre domestic and foreign investors may rely on. in Prague in 2008, and eBay, with 276 million users worldwide, the largest Internet The Czech Republic is a party to the auction house. It plans to create a marketing and analytical centre in Prague to following most significant international support business activities in Europe and Asia, online advertising campaigns, and treaties on intellectual property rights that testing of new applications. The centre should employ 20 persons by the end of 2008 preceded the conclusion of the WTO TRIPS who will use the infrastructure of the Czech branch of its Skype subsidiary. Agreement (Trade-Related Aspects of Source: CzechInvest

17 | REGION

NUTS 2 – Moravia-Silesia Region

The Moravia-Silesia Region has GERMANY been an important industrial area POLAND of Central Europe since the 19th century. It is the Czech Bruntál Republic’s centre of metallurgy Karviná Opava Ostrava-City and hard coal mining and Nov˘ accounts for 10.5% of the Jiãín Fr˘dek- country’s GDP, which is the SLOVAKIA Místek second largest share after AUSTRIA Prague. The second largest airport in the Czech Republic LOCATION, TERRITORIAL DIVISION, Opava (www.opava-city.cz), and Frýdek- is located here. POPULATION Místek (www.frydekmistek.cz). The Region is situated in the north-east of the Czech Republic and borders on Poland ECONOMIC CHARACTERISTIC (Voivodeships of Silesia and Opole) in the The Region has been an important industrial north and east, and on Slovakia (Žilina area of Central Europe since the 19th Region) in the south-east. The Moravia- century. Its centre is the Ostrava-Karviná Silesia Region has six Local Administrative industrial and mining basin. Industrialisation Units (LAU 1) – Bruntál, Frýdek-Místek, has been closely connected with the use of Karviná, Nový Jičín, Opava, and Ostrava-City local mineral resources (especially high- (město). quality coking coal) and the related With an area of 5 427 sq. km it takes up development of the heavy industry and 6.9% of the area of the Czech Republic and metallurgy. The Region is the country’s is 6th in size among regions. The Region is centre of metallurgy and hard coal mining. divided into 22 administrative areas of Engineering comprises the automobile municipalities with expanded competence industry and metal processing. The chemical that comprise a total of 299 municipalities industry is represented mainly by bulk including 41 towns. chemicals - primary products or semi-finished With a population of 1 249 897 it is the products determined for processing - and the most densely populated region of the Czech manufacture of rubber and plastic materials. Republic, although its 299 municipalities In addition to these traditional sectors, there Moravskoslezský kraj rank it among regions with the lowest is the food industry (beer brewing and meat (Moravia-Silesia Region) number of settlements. Most of the processing in particular), woodworking, the Krajský úřad (Regional Office) Region’s population (62%) live in towns manufacture of electronic and optical 28. října 117 with more than 20 000 inhabitants, which is apparatus, and the production and 702 18 Ostrava exceptional in the Czech Republic. Almost distribution of electricity and gas. Czech Republic a quarter of the Region’s inhabitants live The Region accounts for 10.5% of the phone: +420 595 622 222 in the regional capital of Ostrava (www. Czech Republic’s total exports (of which fax: +420 595 622 126 ostrava.cz). Towns with over 50 000 84.9% go to EU countries). Exports are e-mail: [email protected] inhabitants include Havířov (www. dominated by semi-finished products and www.kr-moravskoslezsky.cz havirov.cz), Karviná (www.karvina.cz), materials (41.2% of regional exports), and machinery and transport equipment (33.2%). Export of mineral fuels and related materials accounts for 31% of total exports. The Moravia-Silesia Region accounts for 10.5% of the GDP of the Czech Republic, which is the second largest share after Prague. The structure of sectors, however, poses a serious problem in terms of restructuring. Receding coal mining and heavy industry has led to unemployment, especially in the Karviná (13.3%) and Bruntál (10.6%) districts. The highest employment is affecting the manufacturing industry and foundries, with mineral mining and transport equipment manufacture in the third place in this respect. With Prague and Ostrava is the second largest town in the Czech Republic in terms of area and the third largest in terms of the the Central Bohemia Region, the Moravia- number of inhabitants Photo: Ostrava City Hall archives

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Silesia Region has the highest average gross EDUCATION, CULTURE, is based in Ostrava. Towns and villages offer wage (EUR 772) among regions. Wages in TOURISM many sports facilities – 136 stadiums, 25 the mineral mining sector are 24.5% higher The Moravia-Silesia Region has a high- winter stadiums, and hundreds of fields, than the regional average. quality system of education, comprising gymnasiums, and swimming pools. There The Region’s location in the border area many elementary schools, secondary are plentiful possibilities in North Moravia offers opportunities for effective co- schools, vocational schools, 12 higher and Silesia for recreation and tourism, operation in manufacture, development of vocational schools, and 4 universities – VŠB therapeutic stays, and visits to cultural infrastructure, environmental protection, -Technical University Ostrava (www.vsb.cz), monuments. In the summer, the Region cultural and educational activities, and University of Ostrava (www.osu.cz), Silesian offers a large network of tourist routes and tourism. For this purpose, the Region has University in Opava (www.slu.cz), and good conditions for both hiking and cycling. established four Euroregions – Beskydy Business School Ostrava (www.vsp.cz), In winter, the Hrubý Jeseník and Beskydy (www.euroregion-beskydy.cz), Praděd which have a combined capacity of 35 000 mountain ranges are the location of popular (www.europraded.cz), Silesia (www. students. centres for cross-country and downhill skiing. The Moravia Silesia Region boasts many cultural monuments, urban BRIEF CHARACTERISTICS OF THE REGION monument reserves, chateaus and castles, NUTS Area (sq. km) Population Municipalities Population density the most important ones including Sovinec (persons/sq. km) in the Rýmařov area (www.sovinec.cz), Starý NUTS 1 – Czech Republic 78 867 10 381 130 6 249 132 Jičín (www.stary-jicin.cz), and Hukvaldy in NUTS 2 – Moravia-Silesia Region 5 427 1 249 897 299 230 Pobeskydí (www.janackovy-hukvaldy.cz). LAU 1 – Bruntál 1 536 98 148 67 64 Industrial sights are specific to this region. LAU 1 – Frýdek-Místek 1 208 210 369 72 174 They include the Technical Museum of LAU 1 – Karviná 356 275 397 17 774 Automobiles in Kopřivnice (www. LAU 1 – Nový Jičín 882 152 352 53 173 tatramuseum.cz), the Railway Wagon LAU 1 – Opava 1 113 176 820 77 159 Museum in Studénka, the Mining Museum LAU 1 – Ostrava-city 332 336 811 13 1 014 (www.muzeumokd.cz), the Dolní Vítkovice Source: Czech Statistical Office (as of 31 December 2007) NUTS = territorial unit according to the unified classification of the EU, LAU 1 = district complex, and the Michal Mine National Cultural Monument. The local spa industry is based on the use euroregion-silesia.cz), and Těšín Silesia The traditional cultural centres of the of iodine-bromine water in the spa of (http://euroregion.inforeg.cz). Region are Ostrava, Opava, and Český Těšín Darkov (www.darkov.cz) and the new (www.tesin.cz) in the Těšín Silesia area with sanatorium at Klimkovice (www.sanatoria- TRANSPORT its significant Polish minority. The Region klimkovice.cz) opened in the early 1990s. In 2003, construction of the D47 motorway has 23 theatres, 78 museums, 129 galleries, The ferric-carbon springs in the Karlova was begun as part of the 6th pan-European and 62 cinemas. The internationally Studánka spa (www.k.studanka.cz) have multimodal corridor. The 80.2-km renowned Janáček Philharmonic Orchestra been used since the 17th century. motorway between Lipník nad Bečvou and the Polish border near Bohumín is to facilitate transport, benefit the economy, Average gross monthly wages 2001-2007 linking the Region to the main European Moravia-Silesia Region Czech Republic transport network.

The main segments of the present road EUR system are the international I/11 road Opava – Ostrava – Český Těšín – Mosty u Jablunkova, and the R48 express road Nový Jičín – Frýdek-Místek – Český Těšín, which cross the east of the Region. The Region is crossed by two international railways, which are a part of the high-speed corridors: the Břeclav – Bohumín – Dětmarovice – Poland section of Unemployment rate 2001-2007 the 2nd transit railway corridor, and the Moravia-Silesia Region Czech Republic Dětmarovice – Slovakia section of the 3rd transit railway corridor. It allows for example % a swift train connection along the entire modernised Prague – Bohumín line. Flights to the Region are served by the Leoš Janáček international airport in Mošnov, the second largest airport in the Czech Republic. Aircraft of all categories can land without limitation on its 3 600 m runway. EUR exchange rate as of 31 December 2007 (CZK 26.6).

19 | REGION

Moravia-Silesia Region Draws Investors from the World Over

This excellent strategic location offers The Region boasts unique wooden large sub-regions and a population buildings, beautiful castles, historical with a well-sized purchasing power. towns, and remarkable technical Traditionally, our people have always had monuments. It is also the location of one excellent technical expertise and displayed of the most beautiful and best preserved great flexibility. We are especially proud of natural habitats in the Czech Republic - our four universities. It is for these reasons and this surprisingly in close proximity to we have seen a great restructuring of the large towns. Our region has three local economy in recent years – many protected landscape areas - Beskydy, subcontractors are making their presence Jeseníky and Poodří. Beskydy offer felt in the automotive industry, information breathtakingly picturesque forests and and communication technologies industry, typical highland architecture with timbering and other new industries. The numerous wooden churches. The wild green landscape around Ostrava, Karviná, countryside of the Jeseníky Mountains and Havířov is constantly expanding into offers various sports, activities as well as former mining areas. Landscape opportunities for pleasant repose. The recultivation is underway at full speed and Poodří countryside, which extends along grey cities are beginning to be a thing of the Odra River, is very well preserved, The Moravia-Silesia Region is the past. Thanks to the high technical skill passing through the Moravian Gateway viewed as the land of contrasts of the workforce, a vast amount of towards Ostrava. investment is flowing in from around the and opportunities. One of the world. The Moravia-Silesia Region is most important industrial regions considered one of the most dynamic of Central Europe, it is situated regions in the Czech Republic. on the borderland of the Czech Moravia-Silesia boasts many natural resources, age-old traditions and crafts, Republic, Poland, and Slovakia. historic and cultural monuments, spas, Evžen Tošenovský sports facilities, and excellent restaurants. Governor of the Moravia-Silesia Region

Comprehensive Services for Investors

The Regional Development SERVICES FOR they search for suitable business locations - Agency (RDA) carries out INCOMING INVESTORS industrial zones, greenfields, brownfields Services for investors are a key activity of and other business properties, they development objectives of the the Agency. They are offered on the organise meetings with the owners, Moravia-Silesia Region and principle of a One-Stop Shop, so incoming provide assistance and accompaniment, assists with the economic and investors receive guaranteed information search for reference businesses and infrastructure development of and comprehensive services in a single organise visits. Furthermore, they search for place. RDA is the entry point for investors suppliers of construction equipment for the Region. The main activities of considering investing in the Moravia-Silesia plants/factories, conduct surveys of the Agency include: services for Region. With cooperation from its partners, suppliers in the Region, organise visits to investors, improving the the RDA assists investors throughout all their sites and, last but no least, they offer stages of their decision-making process. selected outsourcing services in the Region. absorption capacity of the These highly professional services are the RDA assistance obviously does not cease Region to draw EU funds, Region’s added value. In 2007, the RDA upon the completion of the investment. For marketing and tourism, strategic provided services to over 40 investors. the successful assimilation of investors into advice and planning for cities Basic information on the Moravia-Silesia the Region, the Agency offers aftercare. RDA Region is published on the regional portal also offers a new service entitled "RELIO" - and municipalities and the www.dynamicregion.cz. assistance to families of foreign managers in development of real estate, A "tailor-made" presentation is their adaptation to life in the Region. including issues related to prepared for each potential investor. It brownfields. takes into account the strengths, SERVICES FOR ESTABLISHED opportunities, and competitive advantages INVESTORS - AFTERCARE of the Region. Specialists of the RDA The RDA has created a communication provide information for feasibility studies, platform for investors in the Region and

| 20 CZECH BUSINESS AND TRADE

representatives of the public sector. according to specific investor to key customers in the Region at Regular events include "Breakfast of requirements. To this end, the RDA has organised bilateral negotiations. investors with the Deputy Governor" and built up the KREDO database – a register Although the Agency values investor "Breakfast with the Minister", which is of suppliers containing details of over 500 interest in the manufacturing sector, given used to obtain feedback and improve the regional companies. Suppliers are divided that industrial zones are relatively highly quality of services provided. The major into four categories, with a focus on the occupied, it is a challenge for the Agency themes of the past year, inter alia, included automotive industry, construction, to attract to a greater extent providers of the network services sector with the technology suppliers, and suppliers of services as well as research and participation of the Deputy Minister of other products and services. development companies, i.e. companies Industry and Trade Tomáš Hüner, who gave The supply potential was fully reaped in that generate the highest added value. a presentation on energy policy in the December 2007 at the match-making Czech Republic. KREDO Meeting Day. The first of its kind in As a premium service, the RDA offers the Region, it enabled companies from More information available at: investors information on regional suppliers KREDO to offer their products and services www.arr.cz

Support for Innovative Business Activities

The official opening of the new SUPPORT FOR Regional Centre for Transfer of technology centre – Business INNOVATIVE START-UP Technologies or mediated by external COMPANIES consultants. The structure of potential Incubator at VŠB-TUO (Technical In 2005, Vysoká škola báňská – Technical clients is very broad. Generally, they are University of Ostrava) took place University of Ostrava (VŠB-TUO) began to businessmen from the ranks of academic in June 2008. VŠB-TUO is the build an important innovation and research workers, students, graduates, or existing investor, founder, and operator & development infrastructure via the companies with innovative ideas or plans of the business incubator. Centre of Advanced Innovation and close ties with research and Technologies. Since then the development activities of universities and Centre has prepared successful research institutes in the Moravia-Silesia projects financed from EU Region. structural funds to build the The overall costs of setting up the facilities and launch the activities technology centre amounted to EUR 9.3 of the Business Incubator at VŠB- million. The project for the construction of TUO and the Regional Centre for the technology centre was carried out Transfer of Technologies. The under the Operational Programme Industry aim was to build a complex and Enterprise - the Prosperity Programme. infrastructure in support of Co-financing by the European Fund for innovative business in the Regional Development and the Ministry of Moravia-Silesia Region and to Industry and Trade amounted to approx. become the leading provider of EUR 6 million. support for innovative start-up Over 40 innovative companies will be companies in the Czech based in the centre, along with almost 300 Republic. company employees. The technology The Business Incubator at centre conforms to the highest standards VŠB-TUO offers potential clients for modern offices and semi-industrial quality space for offices, semi- space and is situated at the centre of the industrial space, and other use, University campus in Ostrava-Poruba. providing them with all the necessities for doing successful business under favourable conditions and at a good address. The offer includes consulting services provided by professional consultants of the More at: www.cpit.vsb.cz/inkubator/

Interior of the business incubator building of VŠB-TUO Photo: VŠB-TUO archives

21 | REGION

Development in Třinec Area

PUBLIC PRIVATE A concrete example of support for building the STEEL IT incubator originated at PARTNERSHIPS businesses is its cooperation with the the Třinec Economic Development Agency in The Třinec area is part of the town of Třinec on building the Baliny Industrial cooperation with the Euroschola Institute. The Zone that ranked in the first place in a rating of STEEL IT incubator serves start-up enterprises Moravia-Silesia Region. At industrial zones in 2007. The zone is a 100% operating in the field of information and present it is undergoing dynamic utilised brownfield 20 ha in size, which communication technologies. It also aims to development supported by investors have used and are using to create over curb the exodus of young graduates of 800 jobs. The industrial zone was conceived as technical professions and help with the advanced projects in the area. a joint project of the town of Třinec and development of a new information and The Třinec Economic Třinecké železárny, a. s. (Třinec Ironworks) with communication technology sector in the Development Agency (HRAT), has the help of state financial support – the PPP region. More than 13 partners are partaking in been operating here for the past principle (Public Private Partnership). the project. They are a guarantee of the quality of the services the incubator will offer. 12 years and has been the INVESTMENTS IN THE Assistance includes preferential rent, the latest catalyst behind many of these INDUSTRIAL ZONE equipment, consulting, education, active projects. The largest investor in the industrial zone is marketing, and help with obtaining contracts. Besides preparing and Matador–Dongwon, a sub-supplier for the Another interesting project which is being Hyundai car manufacturer. The investment, prepared in the Třinec area is the establishing implementing development begun in September 2007, will amount to of the Třinec Technology Centre for projects for municipalities and approx. EUR 17.4 million, and will offer jobs to Engineering and Tool-making. Its aim is to non-governmental organisations, 200 persons. At the same time, work on create an environment for research and HRAT also supports businesses a highway grade separation leading to the development in this field and to promote Baliny Industrial Zone has been initiated. This effective cooperation among local companies and cooperates with new will have a major impact on the planned through partnership. investors arriving in the region. diversion of heavy transport from the centre of The purpose of the afore-mentioned the town. The overall investment volume projects is to create conditions for the exceeds EUR 13 million and is expected to be development of businesses with added value completed in October 2008. for the region.

BUSINESS INCUBATOR A new business incubator was opened in Lucie Ligocká Třinec at the end of 2006. The idea for www.hrat.org

Important Coordinator of Region's Economic Development

IMPORTANCE OF Further activities of the organisation Český Těšín. The Ostrava Airport in Mošnov PARTNERSHIP WITHIN followed on from there. The Union is experiencing a boom. A large warehouse THE REGION currently comprises 135 direct facility for the storage of oil products was The Union for the Development of members, including industrial companies, built in its vicinity to supply the Region in universities, and other institutions, as well times of crisis. These are just a handful of the Moravia-Silesia Region was as municipalities and towns. Its main projects the Union has helped to established in the early 1990's as activities include infrastructure and implement. a non-profit organisation which revitalisation projects, support of science, The Union also organises international research, and education, as well as conferences (e.g. the 8th annual works towards creating the right developing the business environment and Investment & Business Forum and the 11th conditions for economic coordination activities. annual TRANSPORT conference). The Union prosperity and overall participated in establishing the Regional development of the Region. PROJECTS Development Agency Ostrava and the Free Fast trains connecting Ostrava to Prague Zone Ostrava, and founded Specialist Its first aim was to identify and run along the modernised railway corridor. Service, s. r. o. (the first personnel agency) enforce steps for ways out of the The construction of the D 47 motorway is and five profession clusters (engineering, extensive industrial under way and its first segment linking woodworking, automotive, hydrogen, and transformation of the Region and Ostrava and Bohumín has been in IT), with financial participation. Members of operation since December 2007. The same the Union consider these activities an has succeeded in doing so. applies to the R 48 road in the direction of expression of their support for the Region's

| 22 CZECH BUSINESS AND TRADE

development. NÁSKOK (Headstart) is yet At present, the Moravia-Silesia Region is undergoing significant economic another project in support of the drawing development which is in need of coordination. Preparations for enhancing of EU financial resources. The Union's cooperation with the Regional Chamber of transport connections to Slovakia and improving overall logistics are, for instance, Commerce focuses on the provision of currently under way. consulting services for Korean and other investors, particularly for brownfield 1990's. In the automotive sector, these BEHR CZECH, s. r. o., PLAKOR CZECH, s. r. o., solutions, and on identifying the Region's include, for example, Visteon–Autopal, s. r. o. SUNGWOO HITECH, s. r. o., and Dura development priorities. of Nový Jičín, Siemens – automobilové Automotive Systems CZ, s. r. o. systémy, s. r. o. of Frenštát pod Radhoštěm, COORDINATION IN FOLLOW- or Brano, a. s., based in Hradec nad UP OF INVOLVEMENT OF Moravicí. This process has been Miroslav Fabian FOREIGN INVESTORS accelerated by extensive construction of General Manager The interest of foreign investors in the necessary transport infrastructure and the Union for the Development of the Moravia-Silesia Region is strong at present. involvement of Hyundai as investor. Other Moravia-Silesia Region Investors have been arriving since the investors in this field include, for example, www.msunion.cz

The Development of Properties in the Region

One of the main requirements The RDA is also a Brownfields zones, monitoring current projects of potential investors is to find Regeneration Unit, providing managed by municipalities and cities and assistance to municipalities and obtaining information about tenders from suitable properties for the building processing applications for grants for private owners and developers. In the case of their factories. The Regional brownfield regeneration. of specific demands of investors, RDA Development Agency (RDA) is fully The RDA serves investors by providing cooperates with major players in the real up-to-date information on currently estate market via the RealData network. In prepared to satisfy the demands available real estate. This is done by this way all available offers are immediately of investors in this field. monitoring the occupancy of industrial tailored to the investors needs. The Agency conducts long-term research of the real estate market OPEN SPACE AVAILABLE IN THE INDUSTRIAL ZONES OF THE REGION in the Region, supplementing Industrial Zone Municipality District Area in ha Available Owner obtained information with further Bolatice Bolatice Opava 16 6 municipality details on upcoming town and Martinská čtvrť, Frenštát Frenštát p. R. Nový Jičín 2.4 2.4 town p. Radhoštěm municipality projects at a stage Frýdek-Místek-Chlebovice Frýdek-Místek Frýdek-Místek 12.4 1.5-2 town before they are marked in Karviná-Nové Pole II Karviná Karviná 9 9 town documents regarding land-use. Kopřivnice Business Park Kopřivnice Nový Jičín 80 8.25 town Krnov II Krnov Bruntál 17 17 town Part of this effort is also based on Nový Jičín–Dolní Nový Jičín Nový Jičín 43 43 CTP Invest, town the motivation of municipalities to Předměstí Industrial Park Orlovská Industrial Orlovská Industrial develop their land, which can then & Business Zone s.r.o. Orlová Karviná 21.3 21.3 Zone, s.r.o. be used and offered to investors/ Ostrava–Hrabová: Ostrava Ostrava 40 40 CTP Invest developers for further CTP Invest Ostrava-Mošnov Mošnov, Sedlnice Nový Jičín 200 90 town development. Paskov – Previous Paskov Frýdek-Místek 30.3 16 Reality Paskov Greenhouse Area s.r.o. Rýmařov Rýmařov Bruntál 6.4 3 town Třanovice Rural Industrial Zone Třanovice Frýdek-Místek 29 0 municipality Tošanovice-Třanovice Horní Tošanovice Frýdek-Místek 67 67 KB KRÁL, s.r.o. Industrial & Logistics Zone Hnojník – Třanovice Frýdek-Místek 47 47 Source: Regional Development Agency

23 | CZECH BUSINESS AND TRADE

Ostrava Undergoes Revolutionary Times

Only few places are undergoing In the first phase of the Axis Office down one of the well-known buildings in such transformation as is project, the GE Money Multiservice the centre of the city, the giant Jindřich customer service centre has been Hotel, which will make room for a new Ostrava, the third largest city in built, GDX Automotive of the USA has administration and hotel complex, the the Czech Republic. begun to move in, Ringier Print is building Jindřich Plaza, with new shops and While in the 1990s Ostrava was a new printing works, and SUNG WOO restaurants. The most important project, HITECH as well as Briggs&Stratton of the however, is Karolina, on the site of the strongly affected by the phasing USA have arrived. This is to name but former coking plant. It is the most out of mining and metallurgy in a few companies that have begun extensive city-centre regeneration project the region, with unemployment operating in the park or are preparing to in the Czech Republic and one of the rising above 10%, after the year open their business in one of its facilities. largest property development projects in A great share of responsibility for rapidly the country. The competition for its 2000 the city caught a new growing interest on the part of foreign construction was won by Multi breath, and the results are most investors in doing business in the industrial Development of the Netherlands. The striking. parks is the construction of the Hyundai project to construct a shopping and On arrival to the city, the car factory in nearby Nošovice. Naturally, entertainment centre, offices, and two manufacturers of car parts also want to be hundred apartments will cost EUR 625 development of the industrial located close by, and, moreover, Ostrava is million. The area will be dominated by park in Hrabová is apparent at not far from Žilina, where other car a shopping and leisure centre on an area of first glance. ASUS of Taiwan was factories are based. approximately 50 000 sq. m, designed by Good news for investors is that Ostrava, the Office for Metropolitan Architecture the first to set foot on the and the entire Moravia-Silesia Region, has (OMA). Its chief designer is the renowned Hrabová grounds in 2004. It is finally completed the first kilometres of the architect Rem Koolhaas. Another project in engaged in the assembly and new motorway. Regrettably it is not yet the pipeline is the reconstruction of the repair of computer equipment fully linked to the D1 motorway, but the historical buildings of the central exchange seventeen-kilometre segment leading from office and power centre, the so-called and employs more than 1 500 Ostrava to Bohumín has been serving dvojhalí (Double Hall), which will be people at present. Next to arrive drivers since 1 December 2007. preserved in their original shape as cultural was CTP Invest, a Dutch property Economists claim the arrival of foreign monuments. Inside the buildings, originally developer. Under a contract with investors has turned North Moravia into designed halls will host concerts and the fastest-growing region in the Czech sporting events, and smaller areas will be the Ostrava municipality, it Republic. In addition, money is brought available for exhibitions for instance. The undertook to prepare the into the region not only by factories, but first stage is to be completed by mid-2010, construction of an industrial park also by property developers, whose main and the completion of the entire project is interest is now focused on Ostrava. expected in 2016. on an area of 23 hectares. The RPG Real Estate is planning to pull Another dominant structure is rising from the ground in Karolina’s vicinity. Once completed, the high office building will stand 90 metres tall alongside its slightly smaller twin. The project, located on the Republic Square and designed by CTP Invest, will comprise two parts. The twenty-four-storey Alpha building and the eleven-storey Beta building. The two buildings will be interconnected by a third – the Gama structure. The complex will serve office purposes, with smaller shops and a restaurant on the ground floor. There will be underground garages and the complex will be set in a park, with decorative trees and water areas. The expected investment is estimated at EUR 40 million.

Pavla Bittnerová Press Secretary of the Ostrava Municipal Office The Jindřich complex in Ostrava will be replaced by new buildings; the head frame will be preserved. Photo: Ostrava City Hall archives

25 | REGION

Ostrava-City Ostrava-City District

transport junction with a rich network of BRIEF STATISTICS public transport, five railway stations, and Magistrát města Ostravy Indicator District Region the Mošnov international airport. (Ostrava City Hall) Area (in sq. km) 332 5 427 Prokešovo nám.8 The District saw a surge in development Population 336 811 1 249 897 729 30 Ostrava in the 18th century after the discovery of Inhabitants/sq. km 1 014 230 Czech Republic quality hard coal. The greatest industrial Unemployment rate (in %) 9.37 9.62 phone: +420 599 444 444 and population boom came at the Source: Czech Statistical Office (as of e-mail: [email protected] beginning of the 20th century, when other 31 December 2007) www.ostrava.cz industries related to the mining of hard coal developed. The District became the foundation of the country’s heavy industry. The fuel industry employed over half and The District of Ostrava-City (město) is the metallurgy 70% of all workers from these metropolis and residential town of the industries in the entire country. After 1989, Moravia-Silesia Region. The origins of the the structure of the industry and the face city date back to the 13th century when it of Ostrava underwent turbulent changes, was established on the so-called Amber coal mining is on the decline and heavy Path that stretched from the Baltic across industries are receding. Central Europe towards the Mediterranean The District’s economic structure is still Sea. characterised by a dominant share of With its 336 811 inhabitants, it is the ferrous metallurgy, chemical industry, largest city in the Region; 27% of the heavy engineering, production of region's inhabitants live there. Area-wise, electricity, and construction. Heavy the District ranks among the smaller ones industries are still concentrated around in the Czech Republic. It is an important metallurgy in two large metallurgy

SELECTED FIRMS The Ostrava City Hall is the largest town-hall Name Based in Sector Contact complex in the Czech Republic ArcelorMittal Ostrava a.s. Ostrava metallurgy www.arcelormittal.cz combines. The food-processing, textile, OKD Bastro,a.s. Ostrava engineering www.bastro.cz and chemical industries also share a place Hutní projekt Ostrava, a.s. Ostrava metallurgy and machine www.hutniprojekt.cz in the local economy. With the arrival of engineering foreign investors, production of electronic VOKD, a.s. Ostrava mining constructions www.vokd.cz and optical devices, automotive parts, and Vítkovice Holding Ostrava metallurgy, engineering www.vitkovice.cz Hutní montáže, a.s. Ostrava construction of building units www.hutni-montaze.cz wood-processing is beginning to grow in Metasport, a.s. Ostrava sports accessories www.metasport.cz importance. Tchas, s.r.o. Ostrava engineering constructions www.tchas.cz The District's good location close to Hasil, a.s. Ostrava fire seals www.hasil.cz borders with Poland and Slovakia, its Semi Service, a.s. Ostrava mining engineering www.se-mi.cz unique technical monuments and Mobal, s.r.o. Ostrava plastic packaging www.mobal.cz urbanism, great historical and cultural Fite, a.s. Ostrava mining technologies www.fite.cz heritage in the surrounding areas, and the Keravit, s.r.o. Ostrava heat-resistant ceramics www.keravit.cz sports and recreation possibilities in many Forecast Int., s.r.o. Ostrava metal working www.forecast.cz resorts in the nearby mountains render Elcom Automation, s.r.o. Ostrava industry automations www.elcomgroup.cz Ostrava-City a developing centre of Škoda Vagonka, s.r.o. Ostrava rail vehicles www.vagonka.cz tourism.

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Asus Holland Holding, B.V. Netherlands Asus Czech, s.r.o. electronics www.asus.cz Hayes Lemmerz Inc. USA Hayes Lemmerz Alukola, a.s. car wheels www.hayes-lemmerz.cz Kächele Cama Latex GmbH Germany KCL CZ, s.r.o. protective work gear www.kcl.cz Alpine Mayreder Bau Austria Alpine CZ, a.s. engineering construction www.alpine-as.cz SABMiller plc. South Africa Plzeňský prazdroj, a.s. (Pivovar Radegast,a.s.) beer brewery www.radegast.cz Borsod Chem Rt. Hungary BorsodChem-MCHZ, s.r.o. chemical production www.bc-mchz.cz Ingelectric Spain Ingelectric Czech Republic, a.s. automated systems www.ingelectric.cz Danzas Holding Switzerland DHL Expres,s.r.o. forwarding, logistics www.dhl.com Dalkia France Dalkia Ostrava, a.s. power industry www.dalkia.cz CTS Corporation USA CTS Czech Republic electronics www.ctscorp.com Harsco Corporation USA Czech Slag-Nová Huť, s.r.o. engineering www.harsco.com Kronospan Chemical Holdings Cyprus Dukol Ostrava, s.r.o. chemical industry www.dukol.cz CzechTourism CzechTourism Hyundai Motor Company South Korea Hyundai automobiles www.hyundai.cz Minova Carbo Tech GmbH Germany Minova Bohemia, s.r.o. mining constructions www.minova.cz Photo:

| 26 REGION

Opava Opava District

The Opava District lies at the centre of the BRIEF STATISTICS north of the Moravia-Silesia Region. It Magistrát města Opava Indicator District Region shares its northern border with Poland. Its (Opava City Hall) Area (in sq. km) 1 113 5 427 Horní Náměstí 69 population of 176 820 inhabitants occupy Population 176 820 1 249 897 746 26 Opava an area of 1 113 sq.km in 77 Inhabitants / sq. km 159 230 Czech Republic municipalities, 7 of which have the status Unemployment rate (%) 8.51 9.62 phone: +420 553 756 111 of towns. The largest of these and also the Source: Czech Statistical Office (as of e-mail: [email protected] economic and cultural centre of the region 31 December 2007) www.opava-city.cz is the town of Opava with its 62 468 inhabitants. The Opava District remains a predo- minantly agricultural area and forms the core of agricultural production in the region. Today, produce is supplied by small companies, which over time have detached themselves from large cooperatives and state-run farms, as well as by many independent farmers. The District has a smaller industry share and greater diversification than in Ostrava. The share of employment in agriculture and services is also larger. Engineering, electrical engineering, the textile, food, pharmaceutical, paper, and building industries form part of the District’s economy. Cultural institutions enjoy a long-standing tradition in Opava. The first mention of theatre performances dates back to 1522, the seat of the Silesian Theatre (www.divadlo-opava.cz) was built in 1805, the Silesian Museum (www. szmo.cz), the oldest in the Czech Republic, was founded in 1814. The Silesian University (www. slu.cz) has had its seat in Hradec nad Moravicí Chateau won the poll on the Most Fairy-tale-like Castle or Chateau in the Czech Republic, which was opened by the National Monument Preservation Institute in 2008 Opava since 1990.

SELECTED FIRMS Name Based in Sector Contact Balakom, a. s. Opava production of paints and varnishes www.balakom.cz Femont, s. r. o. Opava production of steel constructions www.femont.cz AVHB Hydraulika,s.r.o. Opava hydraulics www.avhb.cz Ferram, a. s. Opava engineering production www.ferram.cz Arako, s. r. o. Opava manufacture of valves for nuclear power industry www.arako.cz MSA, a. s. Dolní Benešov valves www.msa.cz Brano, a.s. Hradec nad Moravicí car-parts www.brano.eu Trido Silesia, s.r.o. Opava automatic door systems www.trido.cz Profily, s.r.o. Opava rubber insulations www.profily.cz Slezská tvorba, v.d. Opava Christmas decorations www.slezska-tvorba.cz PF Plasty, s.r.o. Chuchelná plastics www.pfplasty.cz Ostroj , a.s. Opava engineering www.ostroj.cz Optys, s.r.o. Opava printing products www.optys.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact IVAX International B. V. Netherlands Ivax Pharmaceuticals,s.r.o. pharmaceuticals www.ivax.cz KAPPA Packaging Netherlands Smurfit Kappa Czech s.r.o. paper industry www.smurfitkappa.cz NOWACO Group Denmark Nowaco Mrazírny, a.s. food industry www.nowaco.cz Model Holding Switzerland Model Obaly, a.s. packaging www.modelgroup.com Sewing-Maschmier Germany Prestar, s.r.o. engineering www.prestar.cz Danone Groupe France Opavia-LU, a.s. food industry www.opavia-lu.com

Hansen+Reinders Germany Ostroj-Hansen+Rieders, s.r.o. electronics www.ohr.cz CzechTourism Flanders Poder N.V. Belgium Ekopowder, s.r.o. organic coating www.ekopowder.cz Model Holdings AG Switzerland Model Obaly, a.s. packaging www.modelgroup.com Photo:

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Bruntál District Bruntál

district spreads across 45% of the total BRIEF STATISTICS area of the region. Agriculture has Městský úřad Bruntál Indicator District Region undergone significant transformation in (Bruntál Municipal Office) Area (in sq. km) 1 536 5 427 Nádražní 20 terms of ownership and structure. The Population 98 148 1 249 897 792 01 Bruntál share of employees in agriculture has Inhabitants/sq. km 64 230 Czech Republic dropped approximately to 7.5%. In the Unemployment rate (in %) 10.68 9.62 phone: +420 554 706 111 past, the Bruntál area was famous for the Source: Czech Statistical Office (as of fax: +420 554 712 193 mining of gold, silver, and non-ferrous 31 December 2007) e-mail: [email protected] metal ores. At present, the District is www.mubruntal.cz an industrial-agricultural area and employment is concentrated in arrival of foreign investors and engineering, the textile industry, and development of the chemical, engineering, woodworking. Recent years have seen the and metal-working sectors. The District is situated in the north-east of the Czech Republic on the border with Poland. It ranks among large districts in terms of area, but is the least populated in the country. Administratively it is divided into 67 municipalities of which 9 are towns. The centre of the District is the town of Bruntál with 17 680 inhabitants. Bruntál became the main settlement of the Czech part of Silesia in the 19th century. At present, it is the seat of the Czech part of the Praděd Euroregion (www. europraded.cz). The Bruntál District is a mountainous area – the Hrubý and Nízký Jeseník mountain ranges form a major part. Altitude differs greatly and ranges between 201 m above sea level in the Osoblaha area and 1 492 m on Mount Praděd, the highest mountain in Moravia. Forests are highly important both in terms of timber production and their function in water management, protection View of Praděd – the highest mountain in Moravia and recreation. The forest area in the

SELECTED FIRMS Name Based in Sector Contact Agroforest , a.s. Bruntál timber production and woodworking www.agroforest.cz Pega, a. s. Krnov textile accessories www.pega.cz Krnovské opravny a strojírny Krnov engineering www.kos.cz Odetka, a.s. Vrbno p. Pradědem textile production www.odetka.cz Rodinné domky Rýmařov, s.r.o. Rýmařov building industry www.rdrymarov.cz Pila Krnov, s.r.o. Krnov woodworking www.pilakrnov.cz AlfaPlastik, a.s. Bruntál chemical production www.alfaplastik.cz PM-kovo, s.r.o. Jindřichov metal working www.pmkovo.cz IR-Group, s.r.o. Bruntál metal working www.sweb.cz/ir.group/

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Gardena GmbH Germany Lisovny plastických hmot, s.r.o. plastic products www.advplast.cz Osram, GmbH Germany Osram Bruntál, s.r.o. chemical production www.osram-bruntal.cz Korsnäs Packaging Aktiebolag Sweden Korsnäs Czech,s.r.o Úvalno paper packaging www.korsnas.com Den Braven Sealants Netherlands Den Braven Czech, s.r.o. glue www.denbraven.cz BBT Thermotechnik GmbH Germany BBT Thermotechnology CZ, s.r.o. boilers www.dakon.cz IVG Holding Colbachini Italy IVG Colbachini CZ,s.r.o. rubber hoses www.ivgspa.it Copreci S.COOP. Spain Copreci CZ, s.r.o. engineering www.copreci.es Erdrich-Umformtechnik GmbH & Co. KG Germany Erdrich Umformtechnik s.r.o. automobile components www.erdrich.cz INDUSTRIE FERRARO S.R.L Italy RAME CZ s.r.o metal working www.rame.cz Photo: CzechTourism Photo: CzechTourism

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Frýdek-Místek District Fr˘dek- Místek

concept changed suddenly. As a result, the BRIEF STATISTICS Městský úřad Frýdek-Místek heavy industry was scaled down rapidly. Indicator District Region Reduced mining and metallurgical (Frýdek-Místek Municipal Office) Area (in sq. km) 1 208 5 427 production led to high unemployment. The Radniční 1148 Population 210 369 1 249 897 number of state enterprises dropped 738 22 Frýdek-Místek Inhabitants/sq. km 174 230 sharply, while a great many new private Czech Republic Unemployment rate (in %) 7.87 9.62 enterprises were established. Foreign phone: +420 558 609 111 Source: Czech Statistical Office (as of fax: +420 558 609 166 capital gradually began to flow into 31 December 2007) e-mail: [email protected] woodworking, metallurgy, and the www.frydekmistek.cz pharmaceutical and food industries. environmental protection. Forty-nine per In the last decade, investment has cent of the district area is covered by focused on building infrastructure, forests which also makes it highly suitable The District is located in the Moravia-Silesia construction of new industrial zones, and for tourism. Region in the easternmost part of the Czech Republic. Its north-eastern and eastern boundary form part of the state border with Poland, while from the south- east the district boundary is delimited by the state border with Slovakia. The administration is divided into 72 municipalities, of which 5 are towns. The administrative centre of the District is Frýdek-Místek (www.frydekmistek.cz) with a population of 66 407. The District’s economy, level of employment, its economic potential and present structure are strongly influenced by long-term development in the past. The district has always had an agricultural- industrial character with a predominant share of industry. Metallurgy and mining were key economic sectors. Demand for new labour in the 1960s and 1970s and above-average remuneration for work in mines and foundries attracted employees from other parts of the country. In the early 1990s, the national economic policy Moravia-Silesia Region has a rich offer of golf courses. The photo shows Prosper Golf Resort Čeladná

SELECTED FIRMS Name Based in Sector Contact Třinecké železárny,a.s. Třinec metallurgy www.trz.cz Slezan,a.s. Frýdek-Místek textile industry www.slezanfm.cz VÚHŽ,a.s. Frýdek-Místek automation equipment for the automobile industry www.vuhz.cz ArcelorMittal Frýdek Místek, a.s. Frýdek-Místek metallurgy www.vpfm.cz Walmark, a.s. Třinec pharmaceuticals www.walmark.cz Autel, a.s. Třinec electrical technology www.autel.cz Beskyd, a.s. Fryčovice food industry www.beskyd.cz Steeltec CZ, s.r.o. Třinec engineering www.steeltec.cz Transcon Electronic Systems,s.r.o. Frýdek- Místek control systems www.transcon.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Messer Group GmbH Germany MG Odra Gas,s.r.o. technical gases www.mgog.cz Heinzel Group Austria Heinzel Paskov, a.s. cellulose production www.biocel.cz Saint Gobain Group France Veha, s.r.o. insulating glass www.veha.cz Saft Finance S.a.r.l. Luxembourg Saft Ferak, a.s. NiCadmium batteries www.saft-ferak.cz Mayr-Melnhof Holz Gruppe Austria Mayr-Melnhof Holz Paskov, s.r.o. woodworking www.mm-karton.com Vesuvius Solar Crucible Belgium Vesuvius ČR,s.r.o. metallurgy www.vesuvius.com BLANCO, GmbH + Co.KG Germany BLANCO CZ, spol. s r.o. foundries www.blanco.cz CzechTourism CzechTourism KANLUX S.A. Poland Kanlux s.r.o. lighting fixtures www.kanlux.cz HUMBEL Zahnrader AG Switzerland NOVOGEAR, spol. s r.o metal working www.novogear.cz Photo:

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Karviná Karviná District

the highest long-term unemployment rate BRIEF STATISTICS in the region. Magistrát města Karviná Indicator District Region Owing to the District’s industrial (Karviná City Hall) Area (in sq. km) 356 5 427 Fryštácká 72/1 character, the Nové Pole industrial zone Population 275 397 1 249 897 733 24 Karviná offers opportunities for large investments, Inhabitants/sq. km 774 230 Czech Republic especially in the production of machinery, Unemployment rate (%) 13.35 9.62 phone:+420 596 387 111 instruments, and components for the Source: Czech Statistical Office (as of fax:+420 596 387 264 automobile industry, plastics processing and 31 December 2007) e-mail: [email protected] moulding, and for investment in the building www.karvina.org and electrical industries. The School of Business Administration of Vast water areas are characteristic of the the Silesian University in Karviná areas surrounding Karviná and Orlová. Some The industrial District of Karviná lies in the (www.slu.cz) offers study programmes in were built for fish farming, most, however, north-eastern of the Moravia-Silesia Region economics, management, and marketing. appeared after the flooding of gravel-pits, alongside the border with Poland. A large number of technical secondary sand-pits, and especially due to the sinking Although it is one of the smallest districts schools and vocational schools help to train of the land as a result of two centuries worth in the Czech Republic, with a population of qualified labour force. of hard-coal mining. Salty mineral water 275 397, it is the most densely populated. The District administration is divided into 17 municipalities, 7 of which have town status. The town of Karviná lies in the very heart of the District. With a population of 64 658, it is the third largest town in the Region. Together with the north-eastern part of the Czech Republic, the south of Poland and north-western Slovakia, this territorial unit forms a significant Central European industrial agglomeration. Companies engaged in engineering, the chemical, electrical, and building industries operate branches in this region. Manufacturers of cars and automobile components operate on both the Czech and Polish side of the border, often with foreign participation. The scaling back of hard coal mining in the District has led to Darkov spa has a long tradition and is popular among Czech and foreign visitors springs rising from the mines are also typical SELECTED FIRMS of the area. The so-called Darkov water from Name Based in Sector Contact the Darkov Spa (www.darkov.cz), one of the Jäkl - PRO, s.r.o. Karviná metallurgy www.jakl.cz strongest Iodine-Bromine salt waters in Lázně Darkov, a.s. Karviná spa industry www.darkov.cz Europe, is used for medicinal purposes. The Kovona Karviná, a.s. Karviná metal products www.kovona.cz area surrounding Karviná is part of the Těšín Stavokomp,a.s. Karviná building industry www.stavokomp.cz Silesia Euro-region (http://euroregion. Rosh, a.s. Orlová textile production www.rosh.cz inforeg.cz), where cycling lovers have 800 Bochemie, a.s. Nový Bohumín chemical production www.bochemie.cz kilometres of cycling routes at their disposal. Repax, s.r.o. Orlová pumping devices, alarm systems www.repax.cz Karviná also offers a tandem cycling route Dexon Czech, s.r.o. Karviná sound technology www.dexon.cz for the visually impaired. FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Bebro Electronic GmbH Germany Befra Electronic, s.r.o. electronics www.befra.cz KKCG Industry B.V. Netherlands ŽDB Group, a.s. metallurgy www.zdb.cz Lichtgitter GmbH Germany Lichtgitter CZ, s.r.o. production of steel grates www.lichtgitter.cz Shimano P.L. Japan Shimano Czech Republic, s.r.o. bicycles www.shimano.cz Papier Mettler International GmbH Germany Czech Plastic Production, s.r.o. plastic products www.czechplastic.cz Mölnlycke Health Care Sweden Mölnlycke Health Care Klinipro s.r.o. surgical instruments www.molnlycke.com Grupo Bimbo S.A. Germany Park Lane Confectionery, s.r.o. sweets www.parklane.cz Rockwool International Denmark Rockwool, a.s. building isolation www.rockwool.cz TOMKINS OVERSEAS INVESTMENTS LIMITED Great Britain Stant Manufacturing, s.r.o. automotive fuel systems www.stant.cz

Gates Holding Limited Great Britain Gates Hydraulics s.r.o. engineering www.gateshydraulics.cz CzechTourism PCC SE Duisburg + Petro Carbo Chem GmbH Germany PCC MORAVA - CHEM s.r.o. chemical products www.pccmorava-chem.cz Photo:

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Clusters in the Moravia-Silesia Region

The Moravia-Silesia Region is the In 2002, a pilot study on industrial initiative is to provide clusters in the Czech Republic’s cluster initiative groupings was carried out under the Moravia-Silesia Region with information, PHARE Programme, proving that advice, education and training, leader. The cluster concept is clustering can help to overcome regional internationalisation services and marketing a vital pillar of the industry restructuring problems. In 2003, as well as other services to strengthen their Region’s economy, industry, and the first Czech cluster organisation - the development. It is for this reason the Moravia-Silesia Engineering Cluster - was Regional Development Agency Ostrava is innovation strategy. Furthermore, established in Ostrava. also participating in two European the Moravia-Silesia Regional The Czech Republic was the first from projects: CLOE (Clusters Linked Over Authority co-funds cluster among the new EU countries to include Europe) and NICE, which aims to organisations from its own the Cluster Programme in its Operational strengthen interregional cooperation in the Programme Industry and Enterprise – OPIE, field of cluster policies. Both projects focus budget. co-financed from EU Structural Funds on intensifying cooperation among (2004-2006). The OPIE intermediary body, clusters. CzechInvest, provided clusters with a broad awareness building campaign in 2004. For the current programming period which runs from 2007 to 2013, the Cluster Programme has once again been included in the new Operational Programme David Pawera Enterprise and Innovation (OPEI). On [email protected] a regional level, the Regional Development Agency Ostrava manages and runs the For the list of clusters, see: www.arr.cz ClusterNet initiative. The aim of this

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Nový Jičín District Nov˘ Jiãín

found in the surrounding area. Significant Městský úřad Nový Jičín stone reserves around Jakubčovice nad (Nový Jičín Municipal Office) Odrou and limestone reservoirs near the Masarykovo náměstí 1 town of Štramberk are also important. 741 01 Nový Jičín Over the past couple of years investments Czech Republic have focused on the construction of an phone: +420 556 768 222 industrial zone in Nový Jičín; fax: +420 556 701 188 infrastructure has rapidly improved thanks e-mail:[email protected] to the building of new petrol stations and www.novy-jicin.cz a retail network. The industrial zone’s favourable location enables good transport accessibility for all types of transport. The Nový Jičín District is situated in the The surroundings of Nový Jičín offer northern part of the Moravia Silesia a vast number of architectural sites and Region, closely neighbouring the good conditions for tourism. Many region’s industrial metropolis – the renowned personalities that became Ostrava-City District. engraved upon national consciousness The population of 152 352 inhabits an and left their mark on world culture came area of 882 sq. km with 53 municipalities, from this region or worked here, as for 9 of which have town status. With its example František Palacký, J.A.Komenský, population of 27 700, the town of Nový J.G. Mendel, and Sigmund Freud. Their Jičín is the region’s administrative, works are on display at long-term cultural, and social centre. expositions in a number of museums. Engineering, electrotechnnology, BRIEF STATISTICS textile manufacturing, and agriculture are Indicator District Region traditional for the district. Area (in sq. km) 882 5 427 Relatively large sources of raw Population 152 352 1 249 897 materials for the production of building Inhabitants / sq. km 173 230 materials (e.g. limestone, gravel-stone, Unemployment rate (%) 6.22 9.62 brick-clay, building rock, clay loam, stone Source: Czech Statistical Office (as of for cement manufacturing etc.) can be 31 December 2007) Žerotín Chateau in Nový Jíčín

SELECTED FIRMS Name Based in Sector Contact Tonak, a.s. Nový Jičín textile industry www.tonak.cz Vojenský opravárenský podnik, s.p. Nový Jičín engineering www.vop025.cz Mlékárna Kunín, a.s. Kunín food industry www.mlekarnakunin.cz AlmaPneu, s.r.o. Šenov u Nového Jičína tyre retreading www.almapneu.cz Phobos, s.r.o. Frenštát p.Radhoštěm optical instruments www.phobos.cz Massag, a.s. Bílovec engineering www.massag.com Lari CZ, s.r.o. Šenov u Nového Jičína hygienic systems www.lari.cz Dec-Plast,s.r.o. Příbor plastic windows www.dec-plast.cz Pamet, s.r.o. Suchdol n.Odrou metal manufacturing www.pamet.cz Seimex, s.r.o. Nový Jičín military equipment www.seimex.cz Tatra, a.s. Kopřivnice heavy-duty on- and off-road vehicles www.tatra.cz Hein & spol.-keramické závody, Odry stove tiles www.hein.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Dura Automotive H/B GmbH Germany Dura Automotive Systems CZ, s.r.o. car-parts www.duraauto.com Visteon Holdings Spain, USA Visteon- Autopal, s.r.o. automobile industry www.visteon.cz Erich Jaeger GmbH & Co. KG Germany Erich Jaeger, s.r.o electro-installations www.erich-jaeger.com Siemens AG Germany Siemens Elektromotory,s.r.o. electromotors www.siemens.cz Semperit A.G. Austria Semperflex Optimit, a.s. plastic and rubber products www.semperit.com Connex Transport AB Sweden Connex Morava, a.s. transport www.connex.cz Muller Weingarten GmbH Germany Muller Weingarten ČR, s.r.o. metal forming www.mwcorp.com Bang &Olufsen S/A Denmark Bang & Olufsen,s.r.o. electronics www.bang-olufsen.com Brose Group Germany Brose CZ, s.r.o. automobile industry www.brose.de Cirex Holding B.V. Netherlands Cirex CZ, s.r.o. processing of metals www.cirex.cz INTERPARES BVBA Belgium Primus International, s.r.o. engineering www.primusint.com/ CzechTourism Bike Fun Nederland Netherlands Bike Fun International, s.r.o. bicycles www.bikefunint.com/ Photo:

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