Two Years of Massive Economic Growth Year 2006: Record Balance of Trade Surplus Czech Companies Invest Millions in Research and Development

Ústí nad Labem Region

05-06 2007 CONTENTS

Ministry of Industry and Trade

INTRODUCTION CZECH BUSINESS Question of the Month for Martin Říman, Minister of Industry and Trade ...... 4 AND TRADE ECONOMIC POLICY Economic Bi-monthly Magazine with Two Years of Massive Economic Growth ...... 5 a Supplement is Designed for Foreign Czech "Autoland": Is Car Manufacture the Only Segment Driving Partners, Interested in Cooperation the Economy Forward?...... 7 with the Year 2006: Record Balance of Trade Surplus...... 9 Rapid Salary Growth Continues...... 11 Issued by:

PP AGENCY s.r.o. CZECH TOP Myslíkova 25, 110 00 Praha 1, Czech Republic Kunín Dairy Send Yoghurt to the Italians...... 12 PP Agency Škoda Electric has Secured Significant Orders...... 12 Company with the ISO 9001 certified quality Hydroprojekt CZ Triumphs in the Russian Federation and Beyond...... 13 management system for publishing services

EDITORIAL BOARD: REGION Martin Tlapa (Chairman), Ivan Angelis, NUTS 3 – Ústí nad Labem Region ...... 14 – 31 Zdena Balcerová, Jiří Eibel, Zbyněk Frolík, Růžena Hejná, Alžběta Honsová, Josef Jílek, INVESTMENT Ivan Jukl, Zdeněk Kočárek, Marie Košťálová, Marie Pavlů, Pavla Podskalská, Josef Postránecký, Czech Companies Invest Millions in Research and Development...... 32 Libor Rouček, Jiřina Semanová, Jarmila Škvrnová 300 Schools Participating in a Unique Project...... 33

MANAGING EDITOR: SERVICES Jana Vápeníková Moravian Golf Pearl ...... 34 EDITORS: Jaroslava Bradová, Naďa Vávrová PRESENTATION OF FIRMS Český porcelán, akciová společnost, REGULAR COLLABORATORS: Porcelánová manufaktura Royal Dux Bohemia, a.s...... 2 Eva Tomášková České filtry, s.r.o...... 21 TRANSLATION: LUTOS a.s...... 29 Vlasta Benešová, Alena Kenclová, BETONSTAV a.s...... 31 Robert Krátky, Dagmar Šímová, GOLF BRNO a.s...... 34 Halka Varhaníková Severočeské doly a.s...... 35 PROSPER TRADING a.s...... 36 READ: Mathew Booth, Ivana Kadlecová, Tiskárna Horák s.r.o.; STAP a.s.; HOCO BAUELEMENTE, spol. s r.o.; KERAMOST, a.s. Katherine McCloghry, Zuzana Pavlíčková

GRAPHIC DESIGN: Miloslav Bucvan, Helena Dvořáková, Lobby Česká republika

DEADLINE: 23/3/2007

ADDRESS: Myslíkova 25, 110 00 Praha 1 Czech Republic Phone: +420 221 406 623, +420 221 406 626 Fax: +420 224 934 383 e-mail: [email protected] www.ppagency.cz www.mpo.cz/cbt Czech "Autoland": Is Car Manufacture the Only Ústí nad Labem Press run: 13.500 copies. Segment Driving the Economy Forward? The number of printed and sold copies of the journal is verified by auditor, HZ Praha, s.r.o., member of PANNELL KERR FORSTER Worldwide. It is not allowed to reproduce any part of the contents of this journal without prior COVER PICTURE consent from the editor. Attitudes expressed by the authors of articles carried by CBT need not necessarily be consistent Did you know that the current holder of the Miss World title is a certain Miss Taťána with the standpoint of the Publisher. Kuchařová from the Czech Republic? This 19-year-old lady is the very first Czech to win the MK ČR E 6379, ISSN 1211-2208 „Podávání novinových zásilek povoleno title. Taťána Kuchařová was crowned the beautiful woman in the world last year in Českou poštou, s. p., odštěpný závod Přeprava, Warsaw, Poland. The young Czech entered the competition with a clear goal. "I have č. j. 3468/95, ze dne 24/10/1995“ nothing to lose, I can but gain. I promise to put up a fight", the beauty declared before the Miss World competition. During the contest, Taťána Kuchařová told the jury she would like to become a model after concluding her university studies and that her life motto was "Always be an optimist!".

3 | INTRODUCTION

Question of the Month for Martin Říman, Minister of Industry and Trade

parameters are very stringent. This very As akin as in a number of other system is to be replaced by the green card countries, the Czech labour market project next year. faces an acute lack of skilled workers in certain professions. How will the Czech Republic tackle this relatively Which changes does the green card serious problem? Are you planning to proposal introduce? apply an instrument similar to that common in the majority of European The proposal foresees a division of the countries, i.e. the introduction of so- project into two main phases. The first called "green cards"? That is, the phase will involve the preferential granting of permanent residence treatment of highly qualified university- permits earlier than is usually the educated applicants. The second phase norm to foreigners whose profession will involve attracting skilled workmen, is in "short supply" on the domestic whom there is a lack of on the domestic labour market? market. These include for instance tool- makers, locksmiths, welders, workmen I am certainly an advocate of green cards. skilled in metal machining and machine The Ministry of Industry and Trade has setters. We have discovered that an already drafted a preliminary proposal on absence of these trades is felt both by how to administer the granting of green foreign investors and small and medium cards. This proposal has been the subject Czech enterprises. These worker of recent discussions among ministers with professions will be dealt with during the economic portfolios and I would welcome second phase of the project. First we must if the first green cards were granted at the open the door to university graduates – beginning of 2008. At present, we are e.g. IT experts, designers, doctors, working intensively to implement the university teachers, and scientists. project together with the Ministry of Labour and Social Affairs, the Ministry of Foreign Affairs, and the Ministry of the Will the introduction of green cards Interior. The project also has the support of for foreigners mean any changes to the business sphere headed by the Czech legislation? Economic Chamber and the Confederation of Industry of the Czech Republic. It certainly will. Changes to the Act on Foreigners’ Stay and Residence in the Czech Republic will need to be adopted as The Ministry of Labour and Social will further modifications to the Affairs announced one such trial Employment Act. Such changes will in project entitled "Selection of particular include a faster processing of MORE AT: Qualified Foreign Workers" back in applications for work permits and long- 2003. How did this pilot project run? term residence permits as well as the www.mpo.cz possibility to apply for permanent During the last four years up until today residence earlies than is the norm at www.czechtrade.cz fewer than 600 persons have been present. We also plan to reduce the selected to take part in this programme. administrative burden on employers and www.ceb.cz That is indeed very few. A mere 30 persons foreigners applying for jobs. Although the adoption of such changes to legislation is www.egap.cz joined the programme via the representative offices of the Czech not a straightforward matter, I do not www.export.cz Republic abroad, the rest were already consider it unrealistic for changes resident in the Czech Republic upon concerning university-educated workers to joining. The system lacks flexibility and its come into force as early as 1 January 2008.

| 4 CZECH BUSINESS AND TRADE

Two Years of Massive Economic Growth

The Czech economy boasts two ECONOMIC GROWTH CONSUMPTION AND years of massive economic PULLED BY THE INVESTMENT ARE PICKING UP AUTOMOBILE INDUSTRY SPEED growth (+6.1 %), which even Most responsible for the fast growth of the Demand indicators markedly reflect the surmounted the 1995 record. Czech economy in recent years has been acceleration of household consumption. With more than six-percent the manufacturing industry, which benefits Last year, household consumption grew by growth of GDP it ranks the from the rapid and successful development 4.6 % in comparison with 2005, which is of manufacturing, mainly export-oriented the fastest growth for the past three years. Czech Republic among the activities. The manufacturing industry The reason for greater spending seems to fastest-growing economies alone accounted for approximately two- be the excellent economic situation, which in the framework of the entire thirds of last year’s economic growth, the raises the confidence of consumers and same as in 2005. The rest was attributed to influences their positive expectations. EU. Its growth was twice faster services, especially in the trade sector. Another important fact is declining than that of the old part of the Closer examination of the structure of unemployment linked with the rapid EU and the whole European the manufacturing industry shows that its creation of employment opportunities and Union. This means that last year boom is based primarily on the the growth of real wages in the whole development of the automobile industry, economy. According to selected the Czech Republic made which engages a vast field of manpower research, the unemployment another step on its way towards subcontractors. This is attested by last rate last year dropped to an eight-year reducing the lead of the most year’s record growth of the entire industrial minimum, while the growth of real advanced countries of the branch, which showed a record growth of earnings was maintained on the 9.7 %, two-fifths of which go to the credit acceptable level of +3.9 % in relation to European integration and of the automobile industry. The success of the productivity of labour. Although reaching the envisaged 76 % car manufacturing is directly responsible unemployment, especially long-term level of the EU average. for the trend of Czech exports and the joblessness, continues to be a serious country’s balance of trade. In the past problem for certain regions, domestic firms The Czech Republic’s strong three years, the export of road vehicles has are forced to employ foreign workers on economic growth is built been growing by 20 % a year on an a larger scale. The reason is mainly the on sound foundations, without average (25 % in terms of the euro unsuitably structured social benefit system, creating visible inflationary equivalent), and plays an important role in inadequately motivating people to work, the improvement of the Czech and the low mobility of the workforce or wage pressures, and on the Republic’s balance of trade, which has connected with the problematic contrary having a favourable been moving into black figures since 2005. functioning of the housing and labour influence on the development The greatest credit for this development markets. In spite of all this, the of the domestic labour market. goes to road vehicles, where last year unemployment rate is steadily declining, alone the Czech Republic showed a surplus while household consumption is rising. For A positive feature is the fact that of CZK 186 billion (EUR 6.6 billion). In the example, last year alone, domestic the Czech economy maintained next two years, the favourable influence of consumption was responsible for as much its strong growth during the the two car manufacturers currently as 50 % of the growth of GDP. operating on the Czech market will be Another factor of the favourable whole year. augmented by a third car maker (Hyundai), economic trend, in addition to so that it can be assumed that the consumption, is investment, specifically automobile industry in the Czech Republic the creation of gross fixed capital. After will boost the favourable trend of the the 2005 relative stagnation, last year saw Czech economy even further. a significant increase in investment in buildings, machinery, and means of transport. This is the result of the Growth of GDP (%) favourable development of firms, which,

% Year-on-year Quarter-on-quarter thanks to their growing profits, can continue expanding. This trend is supported by the continuing interest of foreign investors, whose direct investments (FDI) to date have exceeded the EUR 55 billion mark. In terms per capita FDI, the Czech Republic holds second place, after Hungary, on a long-term basis, in the Central European region. A positive feature is the fact that although the great privatisation deals have ended, for the time being, the flow of FDI into the country continues to be relatively strong. Also interesting is the fact that an Source: Československá obchodní banka

5 | ECONOMIC POLICY

The Czech Republic has been experiencing strong economic growth in the last two years

important part of FDI is accounted for by considerably subdued. Last year, the Republic, while on the other hand, it may the reinvested profits of companies under harmonised inflation rate amounted to the complicate the life of some Czech foreign control, which operate successfully average level of 2.1 %, one-tenth less than exporters, who must cope with it with the on the Czech market. Besides company in the Euro-zone. Such low inflation can be help of security instruments and higher investments, however, growing investment considered a great success considering productivity of labour. Considering the is also due to the public sector, which how much the changes of the tax system markedly lower labour costs in the Czech invests significantly in the development of and the raising of regulated prices add to Republic in comparison with countries to the infrastructure. the growth of prices in the Czech Republic, the west of Bohemia’s borders and the very unlike the most advanced parts of Europe. moderate growth of wages in the THE BOOMING ECONOMY The low inflation rate is incontestably the economy (or the decline in real unit labour DOES NOT GENERATE consequence of the strengthening crown, costs), it can be said that the conditions for INFLATION which makes imported goods, raw firms operating in the Czech Republic will Although the Czech economy is materials, and semi-finished products continue to be very favourable for their undergoing a period of its most massive cheaper. On the one hand, the crown further development, despite the growth, inflationary pressures are boosts the purchasing power in the Czech strengthening of the Czech crown. Therefore, our expectations are that the Czech Republic is headed for a prolonged period of massive economic growth, which Contribution to GDP growth (percentage points) may not be so pronounced as in 2006 and 2005, but even so it will be one of the most rapidly growing, low-inflationary Net exports economies in the framework of the entire Provisions EU.

Investments

Government consumption Household consumption GDP

Petr Dufek Československá obchodní banka (e-mail : [email protected])

Source: Československá obchodní banka Photo: www.orangedisc.cz

| 6 CZECH BUSINESS AND TRADE

Czech "Autoland": Is Car Manufacture the Only Segment Driving the Economy Forward?

The Czech economy has Between 1998 and 2005, revenue in value in automobile production therefore undergone several important the Czech automobile industry grew somewhat influences the performance of by more than 150 % rising from CZK these sectors. Over the past decade, gross changes in structure since the 160.2 billion (EUR 5.7 billion) to CZK 422.0 added value in metallurgy (NACE 28 – 1990s – it has completely re- billion (EUR 14.9 billion) - a growth of 163 %. Manufacture of structural and fabricated oriented the focus of its foreign If the first 11 months of 2006 are also taken metal products) increased from CZK 43.3 into account, revenue in fact nearly trebled billion in 1995 (EUR 1.5 billion) to CZK 54.9 trade and production has (in total, up until the end of November billion (EUR 1.9 billion) in 2005. In 2005, become less demanding on the 2006, the annual revenue of the automobile gross added value in the rubber industry environment and on power- industry amounted to CZK 456.7 billion (NACE 26 – Manufacture of other non- consumption. Productivity is (EUR 16.1 billion), up 185 % in comparison metallic minerals) increased from CZK 8.3 with 1998). billion (EUR 0.3 billion) to CZK 52.8 billion growing faster than resources, (EUR 1.9 million) and from CZK 14.9 billion thus strengthening the intensity REVENUE FROM DIRECT (EUR 0.5 billion) to CZK 19.3 billion (EUR 0.7 of Czech economic growth. EXPORTS billion) in the textile industry. However, the Foreign capital and the change The growth of exports has led to a situation increase in gross added value in the given where total revenue from direct exports is period was most distinct in the automobile of ownership have utterly higher than domestic revenue on a long- industry (+529 %) as was the increase in the changed the division of income term basis. Whereas in 2001 total revenue rubber industry (+539 %), while the increase in individual sectors. The share of from industrial activity in the automobile of gross added value in metallurgy industry in the Czech Republic amounted to (+26.9 %) and the textile industry (+29.8 %) individual branches in GDP is CZK 268.2 billion (EUR 9.5 billion) and was considerably lower. In the latter two changing with shifts most revenue from direct exports equalled CZK cases, however, the figures reflect the evident in the manufacturing 208.2 billion (EUR 7.3 billion), in 2005 performance of the branch as a whole, not industry. At the same time, revenue from industrial activity totalled CZK just production linked to supplies for 422.0 billion (EUR 14.9 billion), rising 1.6 automobile manufacture. Nevertheless, however, the Czech economy fold, whilst revenue from direct exports a distinct change of structure could be presents itself increasingly as equalled CZK 323.0 billion (EUR 11.4 billion), observed in the textile industry – an a producer with a growing share also rising 1.6 fold. This shows that between inclination towards manufacture for the of the automobile industry. In 2001 and 2005 revenue from industrial automobile industry accompanied by activity (in current prices) grew at an annual a decline in conventional production (e.g. general, it is possible to say that average rate of 13.1 % - mainly due to weak woollen cloth), also evident from the despite its output, profits, paid growth in 2002 (+1.2 %). The year-on-year changing production portfolio of textile wages, number of employees, growth rate in all the remaining years was companies. higher. Revenue from direct automobile The manufacturing industry as a whole share in revenue from industrial exports increased by an annual average of accounts for approximately a quarter of activity, and share in direct 11.2 % in the period under review, and was gross added value of the Czech economy exports, the mono-productive also unfavourably affected by the year 2002 (i.e. the sum of employee wages, net profit character of this sector of the (+6.2 %), but not as severely as the total and capital asset write-offs, and it is lower revenue of the automobile industry. than GDP, as it does not comprise value economy is becoming According to figures for the first 11 months added tax and similar taxes on products). increasingly evident, especially of 2006, the massive growth of revenue Viewed in real terms (constant prices in when sub-deliveries for the continued both in real and nominal terms – 2000) this share, which expresses the weight automobile industry are taken revenue from industrial activity in current of the manufacturing industry in overall prices grew by 17.7 % on a year-on-year GDP, has not changed substantially in the into consideration. Can figures basis, while in real terms it grew by more course of time: in 1995 it amounted to prove that this is really so? than a fifth (+21.6%). In the case of revenue 24.3 % and increased to 25.6 % in 2000. from direct exports, however, growth was The manufacturing industry boasted the slightly lower, as revenue in current prices largest share in 1997 and 2000 (27.3 % and grew by 9.5 % and 13.9 % in real terms. For 26.8 %, respectively). While in 1995, the the entire 1998-2006 period, total revenue automobile industry accounted for merely in the automobile industry grew by an 3.6 % of the manufacturing industry’s gross annual average of 15.2 % in nominal terms added value; in 2005 this share was already and 14.1 % in real terms. as much as 13.2 %, an increase of 9.6 p.p. Its share in the country’s economic output LINKS TO OTHER rose by 3.1 p.p. PRODUCTION SEGMENTS The services sector, too, contributes The automobile industry is the last link of towards the growth of the automobile a chain formed by other segments such as industry in the CR, especially due to transport the suppliers of tin and other metal output (in the sense of supplier-customer components, as well as the rubber and deliveries for the automobile industry, not the textile industry. The growth of gross added transport of cargo and persons in general).

7 | ECONOMIC POLICY

Between 1995 and 2005, the gross added value of surface transportation as a whole (NACE 60) rose from CZK 82.0 billion (EUR 2.9 billion) to CZK 110.6 billion (EUR 3.9 billion) - an increase of 34.9 %. It is thus also true of the Czech economy that – as OECD analyses of selected countries point out – increases in output (gross added value) in the services sector and their growing share in the country’s economy need not automatically lead to the creation of an "information society", as such growth may be a reflection of increases in output in the services sector linked to industrial production.

GROWTH DOMINANCE Between 1995 and 2005, the Czech automobile industry grew at an average annual rate of 20.2 % (in terms of generated gross added value), while the annual growth rate of the entire Czech economy was only 2.5 % (5.5 % in the Automobile manufacture in the Czech Republic is connected with many other productions (in the picture: manufacturing industry). Despite the Škoda Superb from the Škoda Auto factory) extremely sharp rise in automobile production in the ten years under review, a whole. The average annual rate of growth 31.9 % (29.4 % in the manufacturing this segment is not the only force driving the in the automobile industry reached 13.4 % industry). In 2005, investments in the economy forward: especially since mid- during the decade under review, while the automobile industry dropped to 40.3 %, obviously in consequence of the fact that large investment projects carried out by new Revenue in the automobile industry (current prices, CZK million, year-on-year change entities operating on the market had been in %) completed. Despite sharp increases in wages, investment, and profits (the attributes of future development), car manufacture itself accounts for less than 4 % of the Czech economy in terms of gross added value. As for GDP increases based on gross added value, in 2005 the automobile industry contributed 0.5 p.p. to the economic growth in the Czech Republic. Revenue from industrial activity in CZK million, current Revenue from direct exports in CZK million, current prices prices Due to huge profits, capital investment in y/y revenue from direct exports in % of figures in current y/y revenue from industrial activity in %, current prices prices the Czech automobile industry has become Source: Czech Statistical Office extremely profitable for its foreign owners: while in 1997 investors could expect an 2003, businesses under foreign control investments of foreign companies grew by investment return within 12 years, in 2004 operating in the Czech Republic have also a considerably higher margin, of 21.3% the recovery of invested capital took merely played a decisive role – their product (total investments in the Czech economy 3 years and 8 months. In 2004, the growing annually on average by as much as grew at an annual rate of 2.2 %, while registered capital of businesses under 27 % in the 1995-2005 period. investments in the manufacturing industry foreign control operating as automobile From this point of view it is evident that increased by 3.6 %). manufacturers in the Czech Republic the driving force of the economy is in fact One in every twenty crowns invested in amounted to more than CZK 49.5 billion the entire segment of businesses under the Czech economy in 2005 was in fact (EUR 1.7 billion). foreign control, rather than just the invested in the automobile industry (its share automobile industry, as is further attested by in gross fixed capital creation accounted for Drahomíra Dubská data showing the growth of investment 5.1 % in comparison to 1.8 % in 1995). The Analyst (gross fixed capital). Although automobile annual average rate of investment for the Macro-analysis Department, manufacturers invested on average more entire decade equalled 57.7 % (automobile Czech Statistical Office (ČSÚ) than 50 % of their generated gross added manufacturers reserved this same share of (e-mail: [email protected]) value in fixed assets between 1995 and their annual product for investment in fixed 2005, their year-on-year growth rates were capital), while the share for the entire Editor’s note: The conversion of figures to lower than those recorded by the segment economy, high even in international EUR has been calculated using the 2006 of businesses under foreign control as

comparisons, amounted to as much as CZK/EUR average exchange rate of 28.343. Photo: Škoda Auto

| 8 CZECH BUSINESS AND TRADE

Year 2006: Record Balance of Trade Surplus

In 2006, foreign trade1) recorded MAIN FOREIGN TRADE year increase in absolute figures (by EUR the best results during the CHARACTERISTICS IN 10.7 billion) and made up the largest part 2006 of the increase in total exports. existence of the Czech Republic. Compared to 2005, the increase in exports Imports recorded year-on-year growth Both exports and imports and imports was higher in 2006 and again from all the main territorial groupings. reached the highest levels in amounted to double digit figures2). A highly above-average increase marked the history of the country and Foreign trade turnover rose by 20.5 %, i.e. imports from other states (impact of import EUR 25.5 billion, and was worth EUR from China), from the CIS (mainly Russia), for the second time since its 149.8 billion. Exports accounted for and from European transition economies founding in 1993 (first time a higher share (50.5 %) of the year-on- (above all Romania); the position of these being in 2005) its foreign trade year increase in foreign trade turnover, the groupings in total imports strengthened effect of imports represented 49.5 %. At from 13.9 % in 2005 to 15.4 % in 2006. balance ended in a surplus the same time, the foreign trade balance Below-average growth rates were apparent exceeding EUR 0.3 billion year ended in a surplus of EUR 1.6 billion. in imports from developing economies and on year. Compared to 1993, Territorially, the trade balance was in from developed market economies, i.e. foreign trade turnover was five surplus with EU25 countries (EUR 11.6 EU25 states. Despite the lower import billion) and with European transition dynamics from EU25 countries, these states times higher in 2006, and per economies (EUR 1.3 billion) and in deficit accounted for 70.1 % of total imports and capita export increased more with other states3) (EUR 4.3 billion), with at the same time for the highest year-on- than five-fold. The improvement the CIS4) (EUR 3.5 billion), and with year rise in imports in absolute figures (EUR in export performance played developing economies (EUR 1.6 billion). In 8.3 billion). commodity structure, the foreign trade an important role in economic balance worsened in all the SITC5) classes CHANGES IN THE growth (though less significant except machinery and transport COMMODITY STRUCTURE than in 2005). According to equipment, in which the foreign trade OF FOREIGN TRADE In the commodity structure of foreign a preliminary estimate, the surplus increased by EUR 2.6 billion year Czech economy rose by 6.1 % TABLE 1. FOREIGN TRADE OF THE CZECH REPUBLIC in real terms year on year 2003 2004 2005 2006Change in 2006 in 2006. against 2005 EUR million % Exports 43 053 54 075 62 784 75 679 12 895 20.5 Imports 45 236 54 914 61 499 74 122 12 623 20.5 Trade balance - 2 183 - 839 1 285 1 557 272 Source: Czech Statistical Office on year. A year-on-year worsening marked trade, growth characterised both exports the foreign trade deficit in mineral fuels, and imports in all the SITC sections, but the lubricants, and related materials (by EUR achieved growth rates varied. A highly 1.2 billion) and remained the highest (EUR above-average increase was recorded only 4.9 billion) among all the SITC classes. in the export of machinery and transport equipment, and thus strengthened the TERRITORIAL BREAKDOWN position of this section in total exports. The OF FOREIGN TRADE other SITC classes experienced below- In the territorial orientation of foreign average export growths, which were trade, both exports and imports increased reflected in the weakening of their role in in relation to all the main territorial total exports. Imports rose above average in groupings. Exports rose year on year to all mineral fuels, lubricants, and related territorial groupings, but the increases were materials, and in machinery and transport above average to other states (impact of equipment. These SITC categories export to China), the CIS (mainly to Russia increased their share in total imports at the and the Ukraine), and to European expense of all the other SITC classes. transition economies (mainly to Romania and Bulgaria). This development was FACTORS IMPACTING reflected in the strengthening of the ON FOREIGN TRADE position of the above mentioned regions in DEVELOPMENT overall exports from 6.1 % in 2005 to 6.6 % 2006 foreign trade results were influenced in 2006. A below-average rise marked by a number of factors. Those with exports to developing economies. Exports a favourable impact on foreign trade were to developed market economies were 20.2 % mainly: higher year on year, of which to EU25 • industrial production growth, the highest countries by 20.3 %. However, exports to since 2001. Industrial production index EU25 states recorded the highest year-on- reached 109.7 in 2006 as compared to

9 | ECONOMIC POLICY

2005 (of which 110.5 in manufacturing). growth was recorded by computer amounted to 13.9 % compared to 2005. Production growth in the manufacturing technology (SITC 75) and telecom- On the other hand, a negative effect on industry created good prerequisites for munications equipment (SITC 76), but both foreign trade balance came from export boosting exports and at the same time categories simultaneously experienced and import prices. During 2006 export lowered the demand for imports. Exports a higher growth in import. An above- prices fell by 0.8 % on average and import growth in the manufacturing sectors average export growth of general industrial prices increased by 0.8 %. Foreign trade accounted for almost 97 % of the year- machinery and equipment (SITC 74) prices reflected the price growth on the on-year increase in total exports in 2006. resulted in the second highest surplus (EUR world markets and the strengthening of Industrial production growth was backed 1.4 billion) of the machinery sections; the CZK to the EUR and USD. In 2006, the by higher foreign demand mainly for • economic development in the world and CZK strengthened to the EUR by 7.1 % on products of the car making and electro- especially in countries of the European average and to the USD by 7.3 % on technical industries. Production rose Union. In 2006, the European Union average as against 2005, and the world mainly due to new assembly and economy as a whole recorded the fastest prices of industrial crude materials and manufacturing facilities built with the aid increase of the last six years. According to food rose by 26.2 % year on year, of which of foreign direct investment. a Eurostat estimate, gross domestic world petroleum prices by 20.1 % and product of the EU25 states rose by 2.9 % natural gas by 33.5 %. The high petroleum The most significant item in in 2006. This development was and natural gas prices impacted negatively manufacturing industry exports was road supported among others by economic on trade balance and reduced the overall vehicles (SITC 78) that accounted for growth in . The favourable balance of trade surplus. In 2006, the 17.0 % of total exports in 2006, with the economic development in EU countries foreign trade deficit in petroleum, exports of motor cars (SITC 781) and of impacted also on the economy of the petroleum products, and related materials parts and accessories of motor vehicles Czech Republic, which strongly depends amounted to EUR 3.8 billion and in gas, (SITC 784) amounting respectively to 8.8 % on exports to these countries, mainly on natural and manufactured, totalled EUR 2.1 billion. The Czech Republic’s foreign trade Territorial structure of exports and imports in 2005 and 2006 developed favourably in 2006 compared to

Exports 2005Other Exports 2006 Other development in the EU25 states as states Not states Not 6) Developed Developed a whole. In 2006 , EU25 exports in EUR CIS 3.2 % 0.4 % speci- CIS 3.5 % 0.5 % speci- fied market fied market increased by 11.5 % on average year on European transition economies 2.5 %0.1 % economies European transition economies 2.6 % 0.1 % economies 90.3% Developing economies 3.6 % Developing economies 3.3 % 90.0% year, and EU25 imports rose by 12.9 %. Exports of the 10 new member states were 20.7 % higher year on year, and imports of these countries rose by 20.5 % year on Imports 2005 Imports 2006 year on average. The EU25 trade balance Other Other ended in a deficit of EUR 90.7 billion in Not states Not Developed states specified Developed 6.2 % specified 5.3 % market 2006, and the deficit of the 10 new 0.1 % market European transition CIS 8.9 % 0.1 % CIS 7.8 % economies economies European transition economies 0.9 % 78.9% member states amounted to EUR 33.0 economies 0.8 % 80.3% billion. The Czech Republic was the only Developing Developing one of the new EU member states to economies 8.7 % economies 5.6 % record a foreign trade surplus in 2006. Source: Czech Statistical Office and 6.8 %. The balance of foreign trade exports to Germany, which is a dominant surplus in motor cars rose from EUR 3.6 foreign trade partner of the Czech Jiřina Semanová billion in 2005 to EUR 5.0 billion in 2006, Republic. German economy accelerated Czech Statistical Office and in motor vehicle parts and accessories its growth to 2.7 % in 2006 and its (e-mail: [email protected]) remained practically unchanged (increased recovery was reflected in an increase in www.czso.cz from EUR 1.9 billion to EUR 2.0 billion in Czech exports to Germany. While in 2005 the same period). Among other items of Czech exports to Germany rose by 8.0 % importance in machinery, high export year on year, in 2006 the increase 1) 2005 data are final as at 28 August 2006 closing date. 2006 data are updated as at 28 February 2007 closing date. TABLE 2. FOREIGN TRADE WITH SELECTED COUNTRIES IN 2006 2) 2006 foreign trade in EUR showed higher Country Exports Country Imports growth rates in both exports and imports EUR 2006share EUR 2006share compared to CZK. In CZK, both exports and billion 2005 in %1) billion 2005 in %1) imports rose by 14.7 % in 2006 as against 2005. Germany 24.0 13.9 31.8 Germany 21.1 14.0 28.4 3) China, North Korea, Cuba, Laos, Mongolia, and Slovakia 6.4 17.4 8.4 China 4.5 42.6 6.1 Vietnam. Poland 4.3 25.2 5.7 Russia 4.5 26.6 6.0 4) Commonwealth of Independent States. France 4.2 35.0 5.5 Poland 4.2 36.9 5.7 5) Standard International Trade Classificatin. Austria 3.9 10.1 5.1 Slovakia 4.0 18.3 5.4 6) See EUROSTAT-EURO-INDICATORS, News Source: Czech Statistical Office, 1) Share in total Czech exports/imports. Release, 22 March 2007.

| 10 CZECH BUSINESS AND TRADE

Rapid Salary Growth Continues

In 2007, the average salary in STAR OF CENTRAL (approx. EUR 1 454). The lack of designers the Czech Republic is expected EUROPE and technical professionals indicates the Calculated at the respective following rule will apply in future: instead to rise above CZK 21 000 exchange rate to the CZK, the Czech of managers, significant increases are likely (approx. EUR 780) for the first Republic boasts the highest salaries in to affect the salaries of designers and time ever. What is the Central Europe and the process of bridging technical professionals. What really significance for the economy? the gap between Czech salaries and those matters is the individual, the abilities of in developed European countries is corporate managers, supply and demand During 2006 the average salary continuing. For example, in 2000 the on the labour market, and the level of increased by 6.5 % reaching CZK average Czech earned 16 % of the education of employees. 20 211 (approx. EUR 713), earnings of an Austrian, whilst this year the percentage will already be 28 %. So SALARY GROWTH VERSUS a 3.9 % rise in real terms. In the much for figures, but what is the reality? SATISFACTION fourth quarter the Czechs earned Two-thirds of people in the Czech Republic A comparison between Czech and EU as much as CZK 21 952 (approx. earn salaries lower than the national salaries and GDP with regard to purchasing EUR 798) thanks to Christmas average. Great differences also exist power shows that the living standards of among regions. There is, for instance, Czechs are at 79 % of the average living bonuses and extras, and the CZK a very large group of people, distributed standards in the European Union. By this 25 000 mark (more than EUR both across regions and sectors, who earn definition, the CR has already overtaken 950 at the anticipated CZK/EUR between CZK 10 000 and 15 000. The Portugal; neighbouring countries such as exchange rate) is expected to difference in monthly salaries between the Poland, Slovakia, and Hungary can but capital city of and the Karlovy Vary envy us. However, research conducted by have been surpassed by 2010. Region in West Bohemia is CZK 8 000 to the Institute of Sociology of the Academy Average salaries have been 10 000 (approx. EUR 320). Reducing these of Sciences of the Czech Republic (more at growing at a nominal rate differences is a long-term objective – one www.cvvm.cas.cz) indicates that only 5 % of the solutions may be to promote of people consider their household "rich". of 7 % in the last ten years; the general secondary school education with Twenty-eight per cent describe it as salary increase in 2006 thus leaving examination. It is namely "relatively" or even "very" poor. Fifty- comes as no surprise. The current a recognised fact that the higher the level eight per cent of the one thousand growth in earnings is considered of education, the higher the salary. As for respondents who answered questions in regional differences, cities with the the survey said they had problems healthy and corresponds to the potential to near the salary level of Prague managing the household budget. A key potential of the economy. certainly include Brno, Plzeň, and Ostrava, role in this trade-off between economic In 2006, it was driven mainly as these cities are increasingly becoming prosperity and personal satisfaction is by the business sector (6.8 % the seats of world giants in strategic played by fiscal policy. It can either services and technologies, where earnings motivate or induce laziness; it may year on year), whilst civil exceed the average. The volume of promote a fair-play approach or invite the servants received the lowest investment in the services sector is not as circumvention of rules. The problem is that salary increase of the last six great as in the manufacturing industry, happiness is not a growing function of although salaries in this sector are better average wages or GDP. The year 2007 will years (5.4 % year on year). than the average. Regions that offer labour therefore not only bring higher salaries but educated in technologies and sciences it should, moreover, challenge policy- have a great potential of attracting this makers to seek ways of bringing people type of investment. greater satisfaction. Although I expect a slowing of economic growth, it will not EXPECTED SALARY GROWTH necessarily lead to an increase in HIGHER FOR TECHNICIANS people’s scepticism. Much will depend on THAN MANAGERS how clever the fiscal policy is and how it is Differences also exist among industry viewed by the public. Past mistakes have sectors. The lowest salaries are common in shown that the satisfaction of citizens can the textile industry; the IT sector, on the by no means be achieved by pumping other hand, is at the opposite end of the expenditure into the economy and by salary range. To be more specific, sectors creating an excessive number of laws and with the lowest nominal average salaries regulations. last year included the manufacture of clothing and textiles with earnings of CZK 11 000 to 14 000 (approx. EUR 440), and the manufacture of textile products. On the other hand, sectors with the highest salaries included the information Aleš Michl technology sector, financial services and Analyst, Raiffeisenbank a.s. the power industry with over CZK 40 000 (e-mail: ales.michl@ rb.cz)

11 | CZECH TOP

Kunín Dairy Sends Yoghurt to the Italians

Kunín Dairy (Mlékárna Kunín) Mr Klos explained that is a domestic producer and the overall amount of this year's deliveries to exporter of dairy products. It has Italian customers will be been exporting its yoghurt to even greater, as the dairy Italy since March 2006. The company concluded contracts for long-life, company has concluded acidophile milk and kefir a contract for the supply of more products before the end of than 100 thousand half-kilo last year. According to the packages of white yoghurt to Business Director, the company will ship products the south of Europe every worth approximately CZK month. The total amount of 120 million (approx. EUR 4 mil. ) to Italy this year. The export had therefore exceeded Kunín dairy has a huge offer of its products 1 million pieces by the end of yoghurt the Italians will be getting will be marketed with the Kunín Slovakia and Romania. The company uses the year 2006. "While we would Dairy brand. All products are low-fat and its own brand in Hungary and Italy. It not like to give precise numbers, will be available in supermarket chains cooperates with the so-called private the yoghurt accounted for some everywhere in Italy, including Sicily. The brands, or brands of consumer chains on company management is already other markets. Exports made up 17 % of 15 million CZK (approx. 0.5 mil. negotiating a further expansion of the revenues last year. This year, the company EUR)," said Mr Jiří Klos, Business range of products. "It should concern milk expects a slight increase in its exports share Director at Kunín Dairy. rice and milk cereals. We expect to sign to 18 % with a similar revenue of CZK 1.9 contracts for their export within the next billion (approx. EUR 70 mil.). Exports few weeks," added Mr Zbyněk Gebauer, amounted to approximately 11 % of the Director General of Kunín Dairy. revenue in 2005. The traditional export activities of Kunín Dairy have focused on customers from Hungary, Austria, Sweden, Finland, Germany, Poland, Slovenia, and also More at www.mlekarnakunin.cz

Škoda Electric has Secured Significant Orders

The Škoda Electric company has The customer will receive succeeded on the Asian market. a prototype of the electrical package in South Korea this Within the next twelve months, summer and monthly it will supply the South Korean deliveries will continue till Rotem Company with 34 the beginning of 2008. "We consider this a top priority electrical packages for order, as it is a reference Istanbul's underground wagons order for the Asian market, for the price of a quarter of CZK where a growth in demand billion (approx. EUR 8 mil.). for track cars is expected in China and India during the coming years," said Mr Karel Majer, Director of the Drives and Trolleybusses Division. The electrical packages are Škoda Electric manufactures many modern large-capacity low-rise for Istanbul Elektrik Tramvay trolleybuses v Tünel I3/4letmeleri (IETT), a local public assembly, deployment, testing, guarantee transport company. They contain traction services, and the training of Turkish and auxiliary motors. specialists," added Mr Majer. Istanbul cars "The contract includes assistance with with a maximum speed of 80 km/h will

| 12 CZECH BUSINESS AND TRADE

travel in pairs from the Otogar bus station locomotives, suburban and high-speed trolleybuses. On the basis of this contract, it to the suburb of Bagcilar. trains, and light track vehicles and wagons. will deliver 150 trolleybuses worth CZK 1.5 Apart of the Hyundai Motor Group, theŠkoda Electric employs 550 people and is billion (approx. EUR 50 mil.) to Riga. The Rotem Company employs 3500 people and one of the three largest trolleybus customer is Riga Satiksme, the Latvian is an important player on the international manufaturers in Europe. At the beginning capital transport company. track and military vehicles market. It of February 2007, it concluded one of the manufactures electrical and diesel most significant contracts for the supply of More at www.skoda.cz/electric/

Hydroprojekt CZ Triumphs in the Russian Federation and Beyond

With 266 employees, DISPOSAL OF TOXIC AND is formed of a granite known as Karelian. HYDROPROJEKT CZ a.s., is one of INDUSTRIAL WASTE IN The climatic conditions here are extremely THE TOWN OF MAGADAN harsh with winter temperatures dropping to the largest consulting companies Magadan (100 000 inhabitants) is also -50 ° Celsius (-58 ° Fahrenheit). in the area of water resources called the town of "Gold Kolyma" because To this day, the island’s monastery does management and environment in of gold fields in the Kolyma River. The entire not have a satisfactory system for securing the Czech Republic. It has region is known for its abundance of the supply of drinking water and for the mineral resources. One can find almost all disposal of waste water. In view of the large operated on the Russian market elements of the Mendeleev periodic table number of pilgrims and prominent since 2002 and opened its Saint there. On the other hand, it is a very remote individuals that visit the monastery during Petersburg office in 2004. region with a very sensitive environment. the season, it has become essential to find The harsh natural conditions here are a quick solution to ensure the operation of Reference projects implemented comparable to those of Northern basic hygienic facilities (supply of drinking in the Russian Federation include Scandinavia. Temperatures drop to -38 ° water, toilets, etc.) and further incite the project documentation for the Celsius (-36 ° Fahrenheit) in January and tourism in the region. reconstruction of a sewage reach +15 ° Celsius (59 ° Fahrenheit) in In 2006, Hydroprojekt CZ decided to June, thus limiting nature’s "self- cooperate with TESLA a.s. – a Czech treatment plant in the town of purification" capacity. supplier of stationary and mobile water Kronstadt (45 000 inhabitants), Hydroprojekt CZ is preparing an treatment stations. The two companies or project documentation for the extensive and complex programme of joined forces and, thanks to good contacts reconstruction of a drinking solutions for dealing with ecological with the municipal sector and the Russian problems. One of the basic elements of customer, they were able to, unlike many water treatment plant in the this programme is a solution for the Russian companies, prepare project town of Petrodvorec disposal of toxic and industrial waste documentation for two mobile water (50 000 inhabitants). (hospital waste, used accumulators, treatment plants followed by the delivery mercury lamps, etc.) - issues which have and assembly of the facilities and At the beginning of March, been largely neglected or not dealt with at technologies. The entire technological Hydroprojekt CZ concluded two all, until now. The company's goal is to solution was arranged in containers - more contracts in the Russian design technology for the processing of convenient for both transport and Federation that are interesting such waste. This involves designing installation. The facility was up and running technology for a waste sorting line, within five days, including the training of not only for their scope, but also incinerator, and a waste site. operating staff. in terms of their location. The Following the success of this first is a project in the town of SOLUTIONS TO DRINKING consignment, which it was necessary to Magadan on the shores of the AND WASTE WATER PROBLEMS complete in record timing due to the ON THE ISLAND OF VALAAM planned Orthodox festival on the island in Sea of Okhotsk - a 7-hour flight The island of Valaam is a part of the Karelia summer, Hydroprojekt CZ and TESLA have from Saint Petersburg. The Region in the Northwest of the Russian been approached once more. At present we second project concerns one of Federation. It is a nature reserve and a very are preparing to deliver further mobile sensitive area from the environmental point water treatment plants and a sewage the holiest places of the Eastern of view. The first monastery on the island treatment plant to the island of Valaam. Orthodox Church – Valaam was founded around the 11th century. island in Lake Ladoga. Today, it is one of the holy pilgrimage sites of the Eastern Orthodox Church. The island More at www.hydroprojekt.cz

13 | REGION

NUTS 3 – Ústí nad Labem Region

TERRITORIAL DIVISION, LOCATION, INHABITANTS The Region is situated in the north- Dûãín west of the Czech Republic, its Ústí nad northern border is part of the state Teplice Labem border with the Federal Republic of Most Litomûfiice Germany. Together with the Karlovy Vary Region, it constitutes the NUTS 2 – North-West territorial statistical unit. Its area of 5 335 sq. km makes up 6.8 % of the Czech ECONOMIC (www.mus.cz), Severočeské doly (www. Republic’s territory. 30 % of the CHARACTERISTICS sdas.cz), and Chemopetrol (www. area are covered by forests and The Region’s economic importance is chemopetrol.cz). 2 % are water expanses. The Ústí historically linked with a considerable natural wealth, mainly extensive brown coal TRANSPORT nad Labem Region is divided into deposits lying close to the surface. The The Region has an important position for seven NUTS–4 districts (Děčín, brown coal basin is situated below the transport due to links to the EU. The Chomutov, Litoměřice, Louny, Most, slopes of the Krušné hory Mountains, significant international road E 55 Teplice, and Ústí nad Labem), spreading from Ústí nad Labem to . connecting the north and south of Europe Of importance among other raw materials crosses the Teplice and Litoměrice Districts, further divided into 354 mined in the Region are the deposits of and in becomes the D 8 municipalities, 46 of which have the quality sands for glassmaking and the motorway. Another important road heads status of towns. The regional capital foundry industry, and of building stone. An from the Karlovy Vary Region along the is the town of Ústí nad Labem with area with a highly developed industrial line of the Krušné hory Mountains to the production is concentrated at the Krušné north of the Liberec Region (I/13). Of 97 000 inhabitants. The Region hory Mountain Foothills (Podkrušnohoří - importance is also the I/7 road from the ranks fifth in the Czech Republic in the Districts of Chomutov, Most, Teplice, and partly Ústí nad Labem). Significant population size. Population density Employment by sectors (in %) sectors include the energy industry, coal is higher than the national average mining, engineering, the chemical and and varies by districts. The most glassmaking industries. Litoměřice and Other 22% Industry 31 % heavily populated area is the brown Louny Districts are noted for their coal basin below the Krušné hory production of hops and vegetables. Polabí Transport and Poohří (areas on the Labe and Ohře 11% (), while areas with Rivers) are famous fruit growing regions Agriculture lower population density are the known as the Garden of Bohemia. An and forestry Construction Trade 23 % Ore Mountains and parts of the excellent reputation has been gained by 3% 10% Louny and Litoměřice Districts, wines grown in the Litoměřice area. A grape Source: Czech Statistical Office growing area that has become well-known where small villages predominate. in the last few years is the , Federal Republic of Germany via where wine is grown mainly on land Chomutov and Louny to Prague. The main Krajský úřad regenerated after brown coal mining. rail link is the international railway from (Regional Office) 2005 gross domestic product was worth Germany via Ústí nad Labem to Prague. Velká Hradební 3118/48 EUR 6 501 million and the Region The Labe River is the most important 400 02 Ústí nad Labem accounted for 6.5 % of the Czech waterway in the Czech Republic which can Czech Republic Republic’s GDP. A decline in coal mining, be used for shipping to the port of phone: +420 475 657 111 the restructuring of enterprises, a slump in Hamburg on the North Sea. The Region fax: +420 475 200 245 manufacturing and agriculture are causes has 14 road customs border crossings, 3 on e-mail: [email protected] why the Ústí nad Labem Region has railways and one on a river, and many www.kr-ustecky.cz experienced the highest unemployment newly built crossings for pedestrians and rate (15.4 %) of the country for a long cyclists. Informační centrum time. Great effort is currently being made (Information Centre) to create conditions for investors whose EDUCATION, CULTURE, Hradiště 9 business plans and environmentally TOURISM 400 01 Ústí nad Labem friendly operations will help to extend the The essential restructuring of production Czech Republic range of production in North Bohemia and and services requires people to have new phone/fax: +420 475 220 233 significantly reduce unemployment. The professional qualifications. The role in e-mail: [email protected] biggest employers in the Ústí nad Labem supplying them is played not only by 24 www.kr-ustecky.cz Region are Mostecká uhelná secondary schools, 48 vocational training

| 14 CZECH BUSINESS AND TRADE

centres, and 74 vocational schools, but also BRIEF CHARACTERISTICS OF THE REGION by universities: Jan Evangelista Purkyně NUTS Area (sq. km) Population Municipalities Population density University (www.ujep.cz) in Ústí nad Labem, (persons/sq. km) a faculty of the Czech Technical University in NUTS 4 – Děčín 909 134 397 52 148 Prague (www. cvut.cz) located in Děčín, and the newly opened Institute of Finance and NUTS 4 – Chomutov 935 125 226 44 134 Administration in Most (www.vsfs.cz), NUTS 4 – Litoměřice 1 032 113 926 105 110 which are based in the Region. Their NUTS 4 – Louny 1 118 86 100 70 77 contacts with partners in neighbouring NUTS 4 – Most 467 117 033 26 250 may open new paths to economic NUTS 4 – Teplice 469 127 839 34 272 and cultural cooperation between the NUTS 4 – Ústí nad Labem 405 119 204 23 294 future generations in the two regions. NUTS 3 – Ústí Region 5 335 823 725 354 154 The frontier districts of the present-day NUTS 1 – CR 78 867 10 213 818 6 249 129 Ústí nad Labem Region have recently Source: Czech Statistical Office, 3rd quarter 2006 data recorded a significant improvement of the environment. Coal-fired power plants have Teplice, Bílina) and many historical zamek/), the Romanesque rotunda on Říp been desulphurised, the Labe is a relatively monuments, castles, and chateaux are Mountain, the Gothic church in Most, the clean river thanks to new sewage distributed all over its territory. The best- monasteries in and , and treatment plants, chemical productions known among them include the Baroque and Libochovice chateaux which polluted the environment are being chateau in (www.duchcov.cz/ (www.zamky-hrady.cz). phased out. Ecological criteria conforming to European Union standards are decisive Average gross monthly wages 2001–2005 (EUR) Unemployment rate 2001–2005 (%) for further industrial production. Ústí nad Labem Region CR Ústí nad Labem Region CR The Ústí nad Labem Region is immensely % rich in areas of outstanding natural EUR beautynatural beauties. It has the Krušné hory Mountains, the České středohoří Highlands, the Lužické hory Mountains, the interesting rock formations of the Tiské stěny Walls and the area known as Bohemian Switzerland (www.ceskehory cz), as well as the charming Labe waterway. It abounds in medicinal springs (Lázně EUR exchange rate as of 31 December 2005 (29 CZK).

SITES AVAILABLE FOR INVESTORS IN THE ÚSTÍ REGION Location, name of site District/Municipality Area in ha/sq.m Price in EUR/sq.m Contact Žatec – TRIANGLE – strategic zone Žatec 150/15 00000 negotiable [email protected] Ústí nad Labem – Severní Předlice Ústí nad Labem 28/280 000 negotiable [email protected] Ústí nad Labem – Všebořice Ústí nad Labem 53/530 000 negotiable [email protected] Ústí nad Labem – Žďárek Ústí nad Labem 105/105 0000 negotiable [email protected] Ústí nad Labem – Neštěmice Ústí nad Labem 5.4/54 000 negotiable [email protected] Trmice Ústí nad Labem 11/110 000 negotiable [email protected] Klášterec nad Ohří – Průmyslový park (Industrial park) VERNE Kadaň 142/142 0000 6 [email protected] Kadaň – KRÁLOVSKÝ VRCH Kadaň 81/810 000 8 [email protected] Lovosice – Dopravně zbožové centrum (logistic centre) DZCL Lovosice 65/650 000 negotiable [email protected] Třebenice Lovosice 10.35/103 500 negotiable [email protected] Štětí Litoměřice 0.7/7 000 negotiable [email protected] Podbořany – ALPKA I and II Podbořany 12/120 000 3.5 [email protected] Havraň – JOSEPH Most 118/118 0000 17 [email protected] Most – BENEDIKT východ (east) Most 12.5/125 000 14 [email protected] Most – POD LAJSNÍKEM Most 7/70 000 14 [email protected] Most – Kopisty Most 120/120 0000 negotiable [email protected] Litvínov – Louka Litvínov 24.6/246 000 4 [email protected] Chomutov – SEVERNÍ POLE Chomutov 2.1/210 00 9 [email protected] Chomutov – ZA VÝTOPNOU Chomutov 12.6/126 000 9 [email protected] Chomutov – Nové Spořice Chomutov 13/130 000 9 [email protected] – Chomutov 39.7/397 000 9 [email protected] Rumburk Rumburk 29.8/298 000 10 [email protected] Louny – ZÁPAD (WEST) Elektroporcelán Louny 8.9/89 000 negotiable [email protected] – Teplice 74/740 000 13.6 [email protected]

15 | REGION

Ústí nad Labem Region is the Region of Real Opportunities

The regional capital of Ústí nad Labem is the testifying to the long-term and permanent seat of representation of the CzechInvest high quality standard of the regional Agency for the support of business and management. The current rating, prepared investment and in each larger town there are by Moody’s Investors Service agency, is joint information centres managed by the Aa1.cz, based not only on our good Regional Economic Chamber in cooperation operating results and financial position, with the Ústí nad Labem Region. A lot of but also on the easily manoeuvrable debt. expert information in the field of business The Ústí nad Labem Region is a region support is also provided by specialised whose potential is still waiting for full departments of the Regional Authority of the development. After decades of a one-sided Region. focus on the mining and power industries, Representatives of the Ústí nad Labem which dominated the area until the regional authorities have determined the beginning of the 1990s, we now work development of the Region and the purposefully on increasing the quality of prosperity of its inhabitants as one of their the environment, the revitalisation of main targets. The economic development extensive areas as well as on the change in In the northwestern part of the of the Region is one of the permanent the educational structure of inhabitants. Ústí nad Labem Region, under priorities on which the decision-making of We have been successful in opening the regional authorities is focused, for faculties and other departments of the Krušné hory Mountains in example in property management, prestigious Czech universities and colleges close vicinity to the Federal establishing capital expenditures from the in Most, Chomutov, and Děčín. Republic of Germany, there are regional budget, or deciding on financial There is a surplus labour supply, the several dozen industrial zones means which are to be reserved for co- level of unemployment is 13.8 % on financing projects from the Regional average and the regional authority, the including the strategic Triangle Operational Programme in the current EU founder of secondary specialised schools Industrial Zone. Opportunities for planning period 2007-2013. During this and apprentice schools, in cooperation investors who want to enter our period, EUR 745.9 million is allocated to with investors promotes the adjustment of the European Cohesion Region NUTS 2 fields of study to the demands of the region are greatly varied. North-West consisting of the Ústí nad labour market. In the future, more Labem and Karlovy Vary Regions. graduates should continue in their study by Our region is preparing for the entry of working for local companies and the least strong investors with purpose, attested by possible number should become clients of the annual excellent rating evaluation. The the unemployment office. Ústí nad Labem Region has been part of this evaluation regularly since 2004 and it Jiří Šulc has always received the best possible mark, President of the Ústí nad Labem Region

Czechinvest Regional Office – A Partner Within Good Reach

Thanks to its perfect knowledge Regional representations of CzechInvest participated in 771 realised investment of the region, CzechInvest can be found in each region and the projects. "In our region, investors have agency’s specialists can provide reliable started 130 projects, the most of the Regional Office in Ústí nad information about the business entire Czech Republic. The investments Labem can provide investors environment and the particular sector, have reached nearly CZK 93 billion with all information they may help to find suitable property and localities (approx. EUR 3 billion) and more than for investment, or seek out suppliers and 22 000 new jobs have been created," Ms need. "Before starting to look partners for joint ventures. Direct foreign Podrápská specified. The Office also helps for private consultants, try to ask investments have proved their worth for with queries concerning the Business and us," says Ms Lucie Podrápská, the Czech economy, as shown by their Innovation Operating Programme and the Director of CzechInvest Office favourable effect. In the first place they Human Resources and Employment are an important factor in creating new Programme, or the Research and in Ústí. jobs, not only in the companies of Development for Innovation Programme. incoming investors, but also in Czech firms which act as their contractors. From More at www.czechinvest.org 1993 until 31 December 2006, CzechIvest (e-mail: [email protected])

| 16 CZECH BUSINESS AND TRADE

Support for SMEs in the Ústí nad Labem Region

The Regional Development Agency SUPPORT FOR SMALL AND production plant, and the renewal of of the Ústí nad Labem Region MEDIUM ENTERPRISES vehicles at the Chomutov and Jirkov Business support is aimed at small and Transport Company. At present, work is (RDA) is a service institution for the medium-sized enterprises, helping underway on the construction of support and coordination of the entrepreneurs to express their intentions in a production line for the processing of economic and social development the form of feasible projects and assisting technical hemp in the and on in the Ústí nad Labem Region. It them in their search for financial means and the completion of facilities for the partners for the implementation of their development of tourism in the attractive has provided its services to the projects. The RDA offers technical assistance sandstone area of České Švýcarsko, one of public, private, and non-profit to small investors, especially those the Czech National Parks. making sector since 1994, when its implementing new manufacturing processes and organisational procedures, SERVICES focus shifted to the processing of those searching for new and highly effective The RDA provides its services to development documents (studies, energy sources or those attempting to entrepreneurs in cooperation with strategies, programmes, business penetrate new markets. Entrepreneurs seek CzechInvest, the national Investment and plans, plans etc), the administration public subsidies for most projects, partly Business Development Agency, together from the state or regional budgets and with the Association of Innovative of development programmes and often from EU funds. In order to gain such Entrepreneurship and the Economic and projects (from the development of financial support, businesses must meet Agrarian Chambers of the Region. The RDA project ideas to their many formal conditions and undergo is the host organisation of the Euro Info implementation) and business a heavy administrative procedure. In both Centre (EIC CZ 644) for entrepreneurs. This cases the RDA is able to provide its clients EIC belongs to a network of 270 support. with the necessary assistance. information and guidance centres in Europe, managed directly by the European Regionální rozvojová agentura PARTICIPATION IN Commission. Problems concerning waste Ústeckého kraje, a.s. INTERNATIONAL PROJECTS management in businesses can be resolved (Ústí nad Labem Regional The RDA has been and continues to be in coordination with the RDA’s Regional Development Agency PLC) a partner in many international projects that Waste Centre. The RDA is a member of the Velká Hradební 3118/48 allow companies to increase their know- Czech Association of Development 400 02 Ústí nad Labem how and competitiveness. Recent successful Agencies (ČARA) and the European phone: +420 476 206 538, 475 657 331 projects include, for instance, the Association of Development Agencies fax: +420 476 706 331 construction of a business centre in the (EURADA) in Brussels. e-mail: [email protected] www.rra.cz Town of Litvínov, the introduction of new Manfred Hellmich, MBA technologies in the Xaverov a.s. food General Director

Brownfield Managed by KOS WIRE

KOS WIRE LTD, a member of the From the end of 2007, KOS will produce in stages in a six-year timeframe. In the first KOS GROUP, will build a plant the Lovosice plant several types of stainless phase we will launch the production with wire suitable for applications in the motor an output of about 300 tonnes of drawn for the production of stainless- industry. The company uses a special wire per month, and in the last phase, in steel wire in the Cukrovar environmentally-friendly wire-drawing 2013, we would like to make up to 1 000 (Sugar Mill) industrial zone technology for the production. "The project tonnes per month", Mr Kwang Cho HAN, is all the more interesting that the Korean executive director of KOS GROUP, describes in Lovosice. In three phases, the investor has decided to build the new plant the planned investment. company will invest EUR 21.5 on the site of an abandoned sugar mill KOS WIRE intends to make its Czech million and employ instead of on greenfield land", says Mr branch one of its main plants for the approximately 90 people. Roman Čermák, CEO of CzechInvest European market. The main factors which agency. "The new plant will thus transform influenced KOS WIRE in deciding to locate the derelict building, which would its investment in the Czech Republic include otherwise be a burden for the environment. easy access to customers in West Europe The regeneration of abandoned industrial and collaboration with existing car makers sites, so-called brownfields, is among in the Czech Republic and Slovakia. CzechInvest’s long-term priorities." "We have divided the project into three More at www.koswire.com

17 | REGION

Drinks Union Is an Important Player on the Czech Beer Market

Drinks Union opened operations HISTORY as a regional brewery several Drinks Union was established in 1998, but years ago and since then has the history of its grown into a group associating breweries is centuries old. four breweries - Zlatopramen, The oldest of them is the Březňák, Louny and Kutná Hora, brewery in Kutná Hora, which dates from 1538. and the KB Likér Distillery. The The youngest one was flagship of the company is established in Louny in Zlatopramen beer, which is the 1892 as one of the most modern breweries of its leader on the market of 11° time. For example, the beers. The famous brands include Schwarzenberg family Březňák – for more than installed a drum malt a century its labels have been house, which is one of the few still functioning in The Zlatopramen brewery bearing the face of Mr Cibich, Europe. the jovial stationmaster of Velké markets include Israel, Benin, and Liberia. It Březno in the Ústí area. INVESTMENT is scoring a big success in Russia, where Other beers of the group are Drinks Union is brewing its beers in the Zlatopramen beer is brewed under licence classical manner, although annually it invests in co-operation with the local Efes brewery. Louny, Dačický, and Lorec. Drinks dozens of millions CZK into better Zlatopramen sales on the Russian market Union brews all beers in technologies and quality improvement. regularly exceed 100 000 hectolitres. Drinks a manner tested over hundreds Company revenues range around CZK 1.2 Union beers rank among the most billion (approx EUR 40 million). appreciated ones in this country. Březňák, of years. The total output of the for example, has gained more than 100 company, including licensed EXPORT awards in competitions throughout the production, exceeds a million Drinks Union exports approximately country. The draught stout Dačický brewed hectolitres. 250 000 hectolitres of beer, which is about in Kutná Hora was the winner in its one-quarter of its production. Most of it category at the Tábor Beer Festival in the goes to the discerning German market, last two years. Zlatopramen has also been where Drinks Union belongs to the largest appreciated for many years. Czech exporters. Beer of the Drinks Union The University of Jan Evangelista Purkyně in Ústí nad Labem, Drinks Union group is exported to more than a dozen More at www.drinksunion.cz

countries of the world. More exotic export Photos:

The Oldest and Largest University in the Ústí nad Labem Region

The tradition of university Ten years later the Pedagogical Faculty education in Ústí nad Labem became the only university in the Region for a long time. is over fifty years old. The first The University of Jan Evangelista Purkyně Higher Pedagogical School (UJEP) in Ústí nad Labem consists of seven started its activities in faculties and 2 departments: Faculty of Social and Economic Studies, Faculty of Art and September 1954. Design, Faculty of Production Technology and Management, Faculty of Environment, Faculty Univerzita Jana Evangelisty Purkyně v Ústí nad Labem of Philosophy, Faculty of Education, Faculty of (The University of Jan Evangelista Purkyně Science, Institute for Slavonic and Germanic in Ústí nad Labem) Studies and Institute of Health Studies. There are Hoření 13, 400 96 Ústí nad Labem over 9 000 students studying at the university. Czech Republic Phone: +420 475 282 111 SCIENTIFIC ACTIVITIES e-mail: [email protected], www.ujep.cz/ The university pays great attention to The University has more than 50-year tradition

| 18 CZECH BUSINESS AND TRADE

research and development on a regional international particip- level and the number of projects aimed at ation organised by the solving regional problems is growing. The UJEP is also growing UJEP has joined activities related to the fast. formulation and realisation of regional research and development strategies. FUTURE University representatives work in the OF THE Council for Research, Development, and UNIVERSITY – Innovations of the Ústí nad Labem Region UNIVERSITY under which they participate in the CAMPUS processing of regional strategic documents. At the moment the The University’s great success lies also in the University is co- field of solving projects financed by the EU, operating with the especially from the Human Resources Ministry of Education, Development Operational Programme. Youth, and Sports, the town of Ústí nad At present, the University has 7 faculties and 2 departments FOREIGN ACTIVITIES Labem and the Ústí Foreign activities have been among the nad Labem Region on the "University academic staff, but for all the citizens of rapidly growing and developing areas at Campus in Ústí nad Labem" project. The Ústí nad Labem. The building of the the University in recent years. Good results aim of the project is to build a university university campus will be a great asset not have been reached in establishing new campus for over 10 000 students in the only for the University itself, but also for contacts as well as in student and academic former Masaryk Hospital in the centre of the Region, which belongs among the staff mobility. The University establishes Ústí nad Labem. The university campus will regions with the highest unemployment new contacts with foreign institutions and be a compact area consisting of teaching and with the lowest share of university is cooperating with them on several spaces, laboratories, workshops, an educated inhabitants. Apart from the projects. Student and academic staff information centre, students’ canteen, economic strength of the UJEP, it is also its mobility is also quickly developing. There parking area, and other infrastructure scientific potential and its research and are increasingly more foreign lecturers and providing favourable conditions for development activities that make it an students working and studying at the educational, scientific, artistic and other important entity in the Ústí nad Labem University. The number of events with creative activities not only for students and Region.

The Czech Republic Enjoys Popularity among Japanese Investors

Triangle – this strategic The two mentioned Japanese companies Region has introduced new bus lines to industrial zone near Žatec are entering the Czech market with cover the demand for primary transport intentions to produce highly modern flat coverage between Chomutov, Most, welcomed two new important screen monitors and flat screen Louny, Žatec, and the Triangle zone. IPS foreign investors last year. televisions. Thanks to this investment Alpha is a conglomerate of three IPS Alpha Technology Europe Ltd project, approximately 4 000 new jobs renowned companies: Hitachi, Panasonic, and Hitachi Ltd of Japan are will be created in the Region - and Toshiba. It is a producer of high a significant step towards reducing the quality sixth generation LCD panels, to be among the most important level of unemployment, which troubles used by Hitachi for the production of top- Japanese firms in the Czech the Region long-term. of-the-range TV screens in the Žatec Republic. The Žatec industrial New staff are being recruited in zone. cooperation with local employment zone is one of the largest and offices. At the same time, recruitment best-prepared industrial zones in schemes and presentations are underway Europe. It is owned by the Ústí at local secondary schools with the aim of nad Labem Region and has been introducing students to the possibilities of their future employment and presenting awaiting the arrival of a large the company itself. In order to boost the For more information, see: investor since 2002. Region’s development and business www.ips-alpha-eu.cz, activities of investors in the area, the www.hitachi.com

19 | REGION

Ústí nad Labem Ústí nad Labem District

Labem and its vicinity. The key sector which BRIEF STATISTICS Magistrát města Ústí nad Labem takes advantage of the town’s location and Indicator District Region good access to transport routes is the (Ústí nad Labem City Council) Area (sq. km) 405 5 335 Velká Hradební 8 chemical industry. Other prominent branches Population 119 204 823 725 401 00 Ústí nad Labem here are the engineering and mining Czech Republic industries, energy production, and the Inhabitants/sq. km 295 154 phone: +420 475 241 111 foundry industry. Source: Czech Statistical Office (as of 3rd quarter of 2006) fax: +420 475 211 503 The District is part of a brown coal basin. e-mail: [email protected] Its regenerated area is becoming a core of www.usti-nad-labem.cz revitalisation of the entire Ústí-Teplice Landscape Areas in the District include the conurbation. Ústí nad Labem has an České středohoří Highlands, the Labské important transport position within the Czech pískovce Sandstones, and the Krušné hory Republic as well as Europe. It is a junction of Mountains (www.ceskehory.cz). The Ústí nad It is situated in the north-west of the Czech major national and international roads, Labem District is rich in historical and cultural Republic, where it shares the state border of railway lines, and waterways. Protected monuments which help to promote tourism. 250 km with the Federal Republic of Germany. Ústí nad Labem District has the smallest area of the seven districts of the Ústí nad Labem Region, but the highest population density. Most of its inhabitants (82 %) live in the town of Ústí nad Labem (www.usti-nad-labem.cz), the largest of the District’s 25 municipalities and the cultural and administrative centre of the Region. The District’s development is closely linked with industrial production, especially in Ústí nad Městské informační centrum (Municipal Information Centre) Hradiště 9 400 01 Ústí nad Labem phone/fax: +420 475 220 233 [email protected] Ústí nad Labem square

SELECTED FIRMS Name Based in Sector Contact Enaspol, s.r.o. Ústí nad Labem chemical production www.enaspol.cz Severočeská armaturka, a.s. Ústí nad Labem valves www.sca.cz EVROmat, a.s. Ústí nad Labem foundry, metal production www.evromat.cz Spolchemie, a. s. Ústí nad Labem chemical industrywww.spolchemie.cz Drinks Union, a. s. Ústí nad Labem beverages www.drinksunion.cz Viamont, a. s. Ústí nad Labem transport, engineering www.viamont.cz Chabařovické strojírny, a.s Chabařovice automotive seating systems www.intier.com Dekonta, a.s. Ústí nad Labem site remediation www.dekonta.cz Biotech Progress, a.s. Ústí nad Labem water decontamination www.biotechprogress.ru Labar, s.r.o. Ústí nad Labem paints and varnishes www.labar.cz Lancil, s.r.o. Ústí nad Labem chemical production www.lancil.com Vinyl-Flex, s.r.o. Ústí nad Labem plastic products www.vinylflex.cz Epispol, a.s. Ústí nad Labem chemical production www.epispol.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Materialise NV Belgium Materialise, s.r.o. plastics products www.materialise.cz Kolbenschmidt, GmbH GermanyMetal Ústí nad Labem, a. s. metallurgy www.metal.cz Black & Decker Overseas Netherlands Black & Decker electrical equipment www.blackanddecker.cz Holdings B.V Czech s.r.o Pierburg GmbH GermanyPierburg, s.r.o. motor vehicle components www.kspg-ag.de/ Kone Holland B.V. Netherlands KONE Industrial – koncern, s.r.o. lifts www.kone.cz UGINE & ALZ FRANCE France Matthey, s.r.o. metallurgy, engineering www.matthey.cz Regional Office REICHHOLD-Holdings Netherlands,NorwayReichhold CZ a.s. chemical production www.reichhold.com RWE Gas International B.V Netherlands Severočeská plynárenská a.s. heat generation www.rwe.cz Photo:

| 20 REGION

Ústí nad Labem – A Modern European Industrial Town

Ústí nad Labem is one of the most At the moment there are only 16.5 ATTRACTIVE CONDITIONS significant towns in the Czech kilometres missing in order to connect the FOR INVESTMENT PROJECTS town via České středohoří Highlands with For potential investors, Ústí nad Labem Republic. It is the administrative, Prague. The Labe River is a connection to provides favourable conditions, industrial, and cultural centre of the network of west European water especially in its developed infrastructure, the Ústí nad Labem Region, one of Ways. Air freight and passenger transport offer of sites and objects, and qualified, 14 administrative and territorial is provided by two nearby significant but still relatively cheap, labour. airports – Prague and Dresden with Individual projects can count on the use units, which has over 800 000 regular flights to the whole world. of state investment incentives as well as inhabitants. In the town itself, regional and local business support there are approximately 96 000 INDUSTRIAL TRADITION programmes. The town and the Region The Ústí nad Labem Region has always are aware that a faultless, professionally citizens, which makes it the ninth belonged among the most developed of functioning base, which will help local largest town in the Czech Republic European regions. The rich tradition of and foreign investors to orientate in terms of population. industrial production especially represents themselves in current legislation and Not many central European towns the base of qualified labour. Ústí nad adapt to national and regional Labem is mainly an important industrial environment, is of key importance for can boast such transport centre, traditionally focused on the future investors. That is why there is the accessibility. Ústí nad Labem lies chemical and food industries and Investor Centre in Ústí nad Labem, which on the main Vienna-Prague-Berlin- mechanical engineering. Among the provides a partnership and a wide range Hamburg railway line. The D8/A17 historically most important companies are of services and assistance to all the Spolek pro chemickou a hutní výrobu applicants with serious interest in motorway connects Ústí nad PLC (Society for Chemical and Metallurgical cooperation. Ústí nad Labem can boast Labem with the European Production) in operation since 1856, and of the successfully realised and occupied motorway network, leading to one of the most significant chemical town industrial zone Severní Předlice, companies in the Czech Republic with which came first in the CzechInvest state Dresden. some of its producers among the leading agency competition in 2003 in the "Zone European products; and Setuza PLC, the with the most suitable urban solution" largest Czech processor of vegetable oils category. At the moment, the town of and edible fats, which has been operating Ústí nad Labem endeavours to initiate Magistrát města Ústí nad Labem in the town since 1848. Mechanical the creation of other industrial zones (Ústí nad Labem Municipal Council) engineering and metallurgy have been and to promote other investment Odbor strategického rozvoje developing in recent years mainly thanks to opportunities in the town and its (Department of Strategic Development) new investments from abroad. Apart from neighbourhood. In the vicinity of the Velká Hradební 8 the traditional Ústí nad Labem companies, town, there is a new recreational area 400 01 Ústí nad Labem, Czech Republic new significant industrial firms have arrived being created by restoration of a former phone: +420 475 210 867 such as METAL PLC and Pierburg Ltd from brown coal quarry. In three years, a lake fax: +420 475 211 503 the Kolbenschmidt Pierburg AG group, of approx. 250 ha will be filled with e-mail: [email protected] Black&Decker (Czech) Ltd, Matthey Ltd, water and, together with the restored www.usti-nad-labem.cz a member of the Arcelor group, and last area of over 600 ha, it will represent www.invest-usti.cz but not least, Kone Ltd. a great challenge to investors in the tourist industry.

TOWN FOR VISITORS Although Ústí nad Labem is an industrial and transport centre, it will captivate all visitors with its beautiful location in the picturesque hilly landscape of the České středohoří Highlands on the banks of the Labe River. The town and its closest neighbourhood offer attractive countryside as well as conditions for active leisure time during the whole year. Recently, the town centre has been undergoing a gradual revitalisation with the help of the town as well as private investors. The Dutch company Mutli Development has, among others, also decided to invest in the centre of Ústí nad Labem, where it will build a shopping and amusement centre Mariánský Bridge in Ústí nad Labem FORUM with the area of 30 000 sq.m. Photo: Regional Office

| 22 REGION

Dûãín Děčín District

the vicinity of large centres on both sides of the BRIEF STATISTICS Magistrát města Děčín border. There is also great natural beauty, Indicator District Region which is incomparable in extent and character (Děčín Municipal Office) Area (sq. km) 909 5 335 Mírové nám.1175/5 throughout Central Europe. A large part of the Population 134 397 823 725 405 38 Děčín 4 District is situated in protected landscape areas Czech Republic – the Labe Sandstone Area, the České Inhabitants/sq. km 148 154 Phone: +420 412 593 111 středohoří Highlands, and the Lužické Hory Source: Czech Statistical Office (as of 3rd quarter of 2006) Fax: +420 412 530 051 Mountains. The Labe Sandstone Area is one of e-mail: [email protected] the most massive sandstone areas in Europe, (Transport Faculty and Nuclear and Physical www.mudecin.cz with the largest rock formations. It is protected Engineering Faculty). by the Bohemian Switzerland National Park Městské informační centrum and the Labe Sandstone Protected Landscape (Municipal Information Centre) The District’s geographical position is unique Area (www.ceskehory.cz). The centre of the Teplická 19/24, 405 02 Děčín IV District is Děčín (www.mudecin.cz), with Phone: +420 412 530 811 within the Czech Republic, combining e-mail: [email protected] economically advantageous conditions, with 53 900 inhabitants. There are two Czech www: tourinfo.mudecin.cz an important border transport junction, within Technical University faculties in the town www.ceskosaske-svycarsko.cz SELECTED FIRMS Name Based in Sector Contact Alcan Děčín Extrusions s.r.o. Děčín metalworking www.alcan.cz INTERKOV, s.r.o. Benešov nad Ploučnicí metalworking www.interkov.cz VELVETA, a.s. Varnsdorf textile finishing www.velveta.cz Tos Varnsdorf, a.s. Varnsdorf machine tools www.tosvarnsdorf.cz Amplet, s.r.o. Česká Kamenice knitwear www.amplet.cz Selectra, s.r.o. Děčín transport services www.selectra.cz BENAR, a.s. Benešov nad Ploučnicí woven textiles www.benar.cz Silike, závod Keramika, s.r.o. Děčín refractory materials www.silike.cz STAP, a.s. Vilémov textile production www.stap.cz UNILES, a.s. Rumburk forestry, logging www.uniles.cz STI Česko, s.r.o. Rumburk paper packing www.sti-group.com HOCO BAUELEMENTE, spol. s r.o. Děčín plastics www.hoco.cz Habrinol Děčín, s.r.o. Děčín chemical production www.habrinol.cz PROMPTUS, s.r.o. Děčín metal refining www.promptus.cz RYKO a.s. Děčín modernisation of railway wagons www.ryko.cz Belet, a.s. materials handling equipment www.belet.cz FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Prodair Corporation USA Air Products s.r.o. industrial gases www.airproducts.cz Chart Xerox Group USA Chart Ferox a.s. pressure vessels www.ferox.cz Haas Group Germany Hoco Bauelemente, s.r.o., Děčín plastics www.hoco.cz CDT Nordic Holding Sweden Kabelovna Děčín-Podmokly, s.r.o. electronics www.kabelovna.cz SCA Packaging Int.B.V. Netherlands SCA Packaging ČR, s.r.o. packing, printing www.sca.cz Alcan Holdings Switzerland Alcan Děčín Extrusions, s.r.o. aluminium casting www.alcan.cz

Chomutov District

Chomutov

The is situated in north- BRIEF STATISTICS Magistrát města Chomutov west Bohemia, below the slopes of the Indicator District Region Krušné hory Mountains, which basically (Chomutov City Council) Area (sq. km) 935 5 335 Zborovská 4602 form the state border with the Federal Population 125 226 823 725 430 28 Chomutov Republic of Germany. The foothills are an Czech Republic area of raw material mining, electric power Inhabitants/sq. km) 134 154 phone: +420 474 637 111 production, and most of the social and Source: Czech Statistical Office (as of 3rd quarter of 2006) fax: +420 474 652 777 technical infrastructure. e-mail: [email protected] The majority of the population lives in economic centre of the District – the town www.chomutov-mesto.cz the three most important towns. The of Chomutov with 52 100 inhabitants biggest of them is the cultural and (www.chomutov-mesto.cz), other large

| 24 CZECH BUSINESS AND TRADE

towns are Jirkov (21 900), Kadaň (17 800), and Klášterec with SELECTED FIRMS 16 100 inhabitants. Name Based in Sector Contact The Chomutov area has been known for decades as a district of REIS ROBOTICS, heavy industry, energy production, foundry works and brown coal ČR spol. s r.o. Čerhovice engineering www.reisrobotics.cz mining. Presently the economic performance of the companies in Severočeské the district is influenced by the transformation process which was doly, a. s. Chomutov coal mining www.sdas.cz launched in 1991. Datasoft, s.r.o. Chomutov electrical www.datasoft.cz equipment Reframo, s.r.o. Kadaň building www.reframo.cz materials NOEL –PLUS, s.r.o. Chomutov engineering www.noel-plus.cz První Elektro, a.s. Chomutov power www.prvnielektro.cz technology Severočeské Chomutov engineering www.sez.cz elektrotechnické power závody a.s Městské informační centrum Reme, spol. s r.o. Kadaň power www.reme.cz (Municipal Information Centre) engineering Chelčického 99, 430 28 Chomutov Hamana, s.r.o. Údlice metal www.hamana.cz phone: +420 474 637 460 , fax: +420 474 637 462 production e-mail: [email protected], www.chomutov-mesto.cz/vismo/ Jetkon, s.r.o. Chomutov construction www.jetkon.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact BAXCOL United JJS electronics www.jjselectronics.cz LIMITED Kingdom Electronics s.r.o industry PULS, Germany PULS electronics www.puls.de GmbH Production, s.r.o. industry Sandvik Sweden Sandvik Chomutov metallurgy www.sandvik.cz Precision Tubes Precision Tubes, spol. s r. o. Cherry GmbH Germany Cherry, spol. s r. o. electronics industry www.cherry.cz Eaton Holding Netherlands Eaton plastic www.eaton.com I. B.V. Industries s.r.o. products Arla Plast AB Sweden Arla Plast, plastic www.arlaplast.cz s.r.o., Kadaň products Donaldson Netherlands Donaldson filtration www.donaldson.com Torit, B.V. Czech Republic, s.r.o. systems Parker Hannifin Germany Parker Hannifin engineering www.parker.com Holding Industrial, s.r.o. Pittsburgh Belgium Pittsburgh building www.pitsburghcorning.com Corning Europe, N.V. Corning ČR, s.r.o. materials R.B.FARQUHAR (MANU- United R. B. metal www.rbfarquhar.co.uk/ FACTURING) LIMITED Kingdom Farquhar, s.r.o structures CARRE & COROMINA Spain Inteplast plastic www.inteplast.cz GRUP, S.L. CZ, s.r.o. products

25 | REGION

Litoměřice District

Litomûfiice

growing, and viticulture. Reflecting the BRIEF STATISTICS Městský úřad Litoměřice importance of these activities is the epithet of Indicator District Region the Litoměřice District, which is referred to as (Litoměřice Municipal Office) Area (sq. km) 1 032 5 335 Mírové náměstí 15/7 the Garden of Bohemia, and the same name Population 113 924 823 725 412 01 Litoměřice has been given to exhibitions held there each Czech Republic year (www.zahrada.cech.cz), attracting Inhabitants/sq. Km) 110 154 Phone: +420 416 916 111 visitors from far and wide. Source: Czech Statistical Office (as of 3rd quarter of 2006) Fax: +420 416 916 211 The industries in the District include the e-mail: [email protected] chemical, pulp-and-paper, and the building www.litomerice.cz material industries, the glass, engineering, Libochovice, Ploskovice, and Hazemburk. food, and textile industries. From the point of Other tourist attractions are the national view of broader territorial transport links, the cultural monuments situated in the District, The Litoměřice District lies in the southern Litoměřice District is an important transport such as the Small Fortress in and the part of the Ústí nad Labem Region, at the corridor for international and national long- St George rotunda on Říp. confluence of the Labe and Ohře Rivers. The distance transport, especially in the Hamburg centre of the District is Litoměřice – Berlin – Dresden – Praha – Brno – Vienna – Městské informační centrum (www.litomerice.cz), with a population of Budapest direction. (Municipal Information Centre) Mírové náměstí 15/7 25 700. Its second largest town is Roudnice The District affords good conditions for recreation and the further development of 412 01 Litoměřice nad Labem with 13 500 inhabitants. Phone: +420 416 73 24 40 tourism. Visitors are attracted by the Owing to the high percentage of farmland Fax: +420 416 916 211 (72 %), the District is an area with well- Litoměřice, Úštěk, and Terezín urban e-mail: [email protected] developed horticulture, fruit- and hop- conservation areas, and the chateaux of SELECTED FIRMS Name Based in Sector Contact Keratech Group, a.s. Litoměřice engineering www.rossas.cz Antinari, s.r.o. door systems www.antinari.cz Meva, a. s. Roudnice nad Labem metalworking www.meva.cz Lovochemie, a. s. Lovosice chemical industry www.lovochemie.cz Mondi Packaging Paper Štětí, a.s. Štětí paper production www.mondipackaging.com KBO, s.r.o. Litoměřice construction www.kbo.cz PUR –Izolace Trading, s.r.o. Litoměřice insulation www.pur.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Tokai Rika Co., Ltd. Japan TRCZ s.r.o. electronic parts www.trcz.cz Kos Wire LTD Korea Kos Wire Europe, s.r.o. stainless wire www.koswire.com Norske Skog Industrier A/S Norway Norske Skog Štětí, a. s. paper www.norske-skog.com H.P. Pelzer Group Germany HP - Pelzer k.s., Žatec car interiors www.pelzer.de Alberts Gruppe Switzerland Schoeller Křešice, s. r. o. textile industry www.schoeller-wool.de Lafarge Group France Lafarge Cement, a. s. building materials www.lafarge.cz Aoyama Nakatsugawa Co., Ltd Japan Aoyama Automotive Fasteners Czech, s.r.o. metalworking www.aoyama.com TORRECID, S.A. Spain Glazura, s. r. o. glazing www.glazura.cz

Louny District Louny

The District of Louny lies in the southern BRIEF STATISTICS Městský úřad Louny part of the Ústí nad Labem Region, and Indicator District Region with an area of 1 118 sq. km is the (Louny Municipal Office) Area (sq. km) 1 118 5 335 Mírové nám. 35 Region’s largest district. The biggest Population 86 100 823 725 440 23 Louny towns are Louny (www.mulouny.cz) and Czech Republic Žatec (www.zatec.cz) with 20 000 Inhabitants/sq. km 77 154 phone: +420 415 621 111 inhabitants. Major changes have taken Source: Czech Statistical Office (as of 3rd quarter of 2006) fax: +420 415 621 100 place in the area in the last ten years. e-mail: [email protected] A prominent sector in the District is sunflower), and meat and egg www.mulouny.cz agriculture, specialised in growing grain production. An important role is played and oleaginous plants (rape, mustard, and by hop and fruit growing. Notable

| 26 CZECH BUSINESS AND TRADE

industrial branches, where more than the sectors have seen changes of Městské informační centrum a quarter of the economically active ownership relations, out of the 14 300 (Municipal Information Centre) population are employed, are the food business entities over 85 % are private Mírové nám. 35 industry, engineering industry, energy individuals, 1 245 of them private 440 23 Louny production, and construction. In the farmers. Private ownership predominates phone: +420 415 621 102 fax: 415 621 102 process of economic transformation all in almost all sectors. e-mail: [email protected]

SELECTED FIRMS Name Based in Sector Contact AGS ASTRA, a.s. Žatec civil engineering www.agsastra.cz Pivovar Louny,a.s. Louny beer production www.pivovarlouny.cz Praga Louny CZ, a.s. Louny engineering www.pragalouny.cz Ekostavby Louny, s.r.o. Louny water infrastructure www.ekostavbylouny.cz Elektroporcelán Louny, a. s. Louny ceramics www.epl.cz TBG Louny, s.r.o. Louny concrete production www.betonserver.cz/tbg-louny Lostr, a.s. Lounyengineering www.lostr.cz Podest, s.r.o. metal production www.vodest.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact AISAN BITRON EUROPE SA Japan Aisan Bitron Czech s.r.o. components for motor industrywww.abeczech.cz Fujikoki Corporation Japan Fujikoki Czech s.r.o. motor industry www.fujikoki.cz Takada Industries Corp. Japan Takada Industries CR, s.r.o. plastic components for motor industrywww.takada.cz Nachi-Fujikoshi Corp. Japan NACHI Czech s.r.o air conditioning for motor vehicles www.nachi-czech.cz HP-Pelzer International GmbH GermanyHP-Pelzer, k.s., závod Žatec motor car interiors www.pelzer.de/ Koito Manufacturing CO, LTD Japan Koito Czech s.r.o. electrical components for motor industrywww.koito-czech.cz RADICIFIBRES s.p.a. ItalyLogit, s.r.o. textile manufacture www.radicigroup.com

27 | REGION

Most District Most

church, a pinnacle of Gothic architecture, BRIEF STATISTICS Magistrát města Most has been preserved, however, it had to be Indicator District Region moved 800 meters. Its repositioning on (Most Municipal Office) Area (sq. km) 467 5 335 Radniční 1 special hydraulic carriages in 1975 was Population 117 033 823 725 434 69 Most a world rarity. Czech Republic The immense wealth of mineral raw Inhabitants/sq. km 250 154 Phone: +420 476 448 111 materials completely predetermined the Source: Czech Statistical Office (as of 3rd quarter of 2006) Fax: +420 476 703 162 character and economic importance of the e-mail:[email protected] District. www.mumost.cz Much of the District’s territory is requirements of new investors or local occupied by industrial structures. Its main employers. Efforts to eliminate the marks industries are mining, the petrochemical of the previous mining activities are In the north, the Most District is bordered industry, the power industry, and unique, and natural localities with rare by the Krušné hory Mountains, where it engineering. The economic changes also flora and fauna have been preserved, and neighbours on the Federal Republic of changed the District’s industrial are now protected. For example, re- Germany. In its centre lies the Most brown- orientation, switching to light industry and cultivation work on the surface of the coal basin, with a farming zone forming its services. This is attested by the new largest waste dump, Velebudice, in the southern part. With its area of 467 sq. km, investment projects in the District. former North Bohemian Brown-Coal the Most District is the smallest of the The damping down of coal extraction District gave rise to a hippodrome with Region’s seven districts. A total of 89 % of has caused higher unemployment. This a racecourse of world distinction (www. the population lives in towns, which is the situation is improving partly thanks to the hipodrom-most.cz). largest proportion among the Region’s industrial zones prepared for new districts. Most people live in 26 investors. A new education and training communities, five of which are towns. The centre has been set up in co-operation Městské informační centrum District’s cultural and administration centre with the Regional Office, the CzechInvest (Municipal Information Centre) is the town of Most (www.mumost.cz) Agency, and local secondary schools and (Building of the Municipal Office) with 67 580 inhabitants. Most is universities. With the use of simulators for Phone : + 420 476 105 314 a relatively new town, as the original training special production processes, Fax+ 420 774 105 314 historic town had to make place for a vast interested people are trained for special e-mail: [email protected] www.crt-most.cz surface coal extraction. Only the deanery manufacturing processes to meet the

SELECTED FIRMS Name Based in Sector Contact Česká rafinérská, a.s. Litvínov refinery www.crc.cz Chemopetrol, a. s. Most chemical industry chemopetrol.cz ELSVO- MOST, s.r.o. Most electronics www.elsvo.cz Fireclay, spol. s r.o. Most construction www.fireclay.cz Humeco, a.s. Most gravel, aggregates www.humeco.cz Keramost, a.s. Most refractory ceramics www.keramost.cz M&Bajer, spol. s r.o. Litvínov textile manufacture www.mabajer.cz RWA Group, s.r.o. Most information technology www.rwagrp.cz VVV Most, s.r.o. Most belt conveyers www.vvvmost.cz United Energy, a.s. Most electricity production www.ue.cz Mostecká uhelná, a.s. Most mine designing www.mus.cz Výzkumný ústav pro hnědé uhlí, a.s. Most brown coal mining research www.vuhu.cz Aqualux, v.o.s. Litvínov aquarium stones www.aqualux.cz Euromont Group, a.s. Litvínov engineering structures www.euromont.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact GRAMMER Aktiengesellschaft Germany Grammer CZ , s.r.o. car accessories www.grammer.de Nemak Europe GmbH Germany Nemak Czech republic, s.r.o. aluminium castings www.nemak.cz Primed-Halberstadt Germany Primed-Halberstadt-CZ s.r.o. plastics www.primed-halberstadt.de Magnesium Elektron Limited Great Britain Magnesium Recycling CZ, s.r.o. non-ferrous metal production www.magnesiumelektron.com Societa Italiana Italy SIAD Czech spol. s r.o. technical gases www.siad.cz Acetylene/Derivati,S.P.A. Schoeller Projekt Germany Schoeller Litvínov, k. s. textile industry [email protected] GmbH & Co. KG Greiner Packaging GmbH Austria, Switzerland greiner packaging s.r.o. plastics www.greiner-gpi.com

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Teplice District Teplice

have the status of town, on an area of 469 BRIEF STATISTICS Statutární město Teplice sq. km. The District’s cultural and Indicator District Region administration centre is the town of Teplice (Statutory Town of Teplice) Area (sq. km) 469 5 335 Náměstí Svobody 2 (www.teplice.cz) with a population of Population 127 839 823 725 415 95 Teplice 52 800. Of great importance for the Czech Republic District’s economy, apart from the Inhabitants/sq. km 272 154 Phone: +420 417 510 111 engineering industry, rich mineral resources Source: Czech Statistical Office (as of 3rd quarter of 2006) Fax: +420 417 570 629 and glass and porcelain making, is its e-mail: [email protected] renown as a spa resort. The Teplice curative www.teplice.cz mineral springs (www.lazneteplice.cz) are figures of cultural life also added to among the most intensively used waters Teplice’s fame. It is here that Goethe and with a long history in Central Europe. Teplice Beethoven first met, in 1812. In Teplice, In size, the Teplice District is one of the used to be referred to as the "Salon of Beethoven wrote his legendary Immortal smallest within the Region, but the density of Europe". It hosted many of the Beloved Love letters. In 1860, Teplice was its population is very high. The District is world’s crowned heads, for example King the venue for Emperor Franz Josef I and the strongly diversified, one-fourth of its surface Gustav IV of Sweden, Empress Maria Louisa, Prussian King Wilhelm. The presence of being formed by the Krušné hory Mountains. the Prussian King Friedrich Wilhelm III and heads of state and their delegations greatly Over 127 800 inhabitants live in the Napoleon-Ludwig, Prince of Holland, enhanced the spa’s popularity. Today, the District’s 34 communities, nine of which brother of Napoleon Bonaparte. Visiting spa is a non-state health institution. Apart from the spa facilities, there is a plastic surgery and aesthetic medicine clinic in Teplice, and a number of specialised out- patient wards. The Teplice District is rich in historic and cultural sights. The oldest among them are sights in the towns of Teplice, Duchcov (www.duchcov.cz), Bílina (www.bilina.cz), and (www.dubi.cz). Most attractive for visitors is Duchcov Castle (www.duchcov.cz/ zamek/), where the renowned adventurer Giacomo Casanova was a librarian and where he spent the last days of his life.

Městské informační centrum (Municipal Information Centre) Building of the Municipal Office Náměstí Svobody 2 415 95 Teplice Phone: +420 417 510 666,7,8 Beethoven Spa House in Teplice e-mail: [email protected]

SELECTED FIRMS Name Based in Sector Contact Báňské projekty Teplice, a.s. Teplice project designing and engineering www.bpt.cz Český porcelán, a.s. Dubí porcelain making www.cesky.porcelan.cz Lázně Teplice v Čechách, a.s. Teplice balneology www.lazne.teplice.cz IDEAL STANDARD, a.s. Teplice ceramics www.idealstandard.cz Glaverbel Glavostav, a. s. Teplice glassmaking www.glaverbel-czech.cz AGC Automotive Czech a.s. Bílina glassmaking www.agcautomotive.com Severočeské doly, a.s., Doly Bílina Bílina coal mining www.sdas.cz Teplotechna-Prima, s.r.o. Teplice glass furnaces www.teplotechna-prima.com Kovosreal, s.r.o. Duchcov metalworking www.kovosreal.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Wabco Standard Trane B.V. Netherlands Ideal Standard, s.r.o. sanitary ceramics www.idealstandard.cz Avir S.p.A. Italy Avirunion, a.s. glassmaking www.avirunion.cz American Standard USA Keramické závody Teplice, a.s. ceramics www.idealstandard.cz Glaverbel Nederland Holding, B.V. Netherlands Glaverbel Czech, a.s. glass for the automobile industry www.glaverbel-czech.com Regional Office SEVES S.p.A. Ireland VITRABLOK, k.s. glassmaking www.vitrablok.com Photo:

| 30 INVESTMENT

Czech Companies Invest Millions in Research and Development

Czech companies are not afraid CzechInvest, the investment and of new technologies and materials is of investing millions of CZK in business development agency, a basic prerequisite for further announced more than CZK half development of economy," says Mr research and development. And a billion in investments by Czech Čermák while mentioning that over the many actually benefit from it. For companies in research and development years, many Czech companies have example, one of the most centres during 2006. However, according become important not only in business, to the President of the Association of but in research as well. He adds: "The fact innovative companies in the Innovative Entrepreneurship Mr Karel that CzechInvest was able to participate in Czech Republic, SQS Vláknová Šperlink, only about 26 % of Czech projects of domestic companies worth CZK optika (fiberoptics products) of companies may be labelled as innovative. half a billion is a testimony to that." Czech Nová Paka near Jičín, recently "First of all, the initiative must come from science has been going through a lot of the businessmen," says Mr Šperlink. changes during the past two decades. announced plans for "There is a slogan that says 'innovate or "Cooperation established following the a construction of a new plant in die'. Those interested in long-term fall of the iron curtain have raised the level which it is going to invest an prosperity must innovate. The question is of scientific work and most importantly, astronomic sum of several how and under what conditions." Šperlink the quality of achieved results," says insists it is crucial to eliminate barriers Antonín Šimůnek, Vice-president of the hundred million CZK. It will between the business and the academic Council for Sciences of the Academy of produce optical components for field in research and development. Sciences of the Czech Republic. It is his data networks. The company "Research is a team and programme work. opinion as well that the private sector It is necessary to overcome the obsolete should participate in the system more owns dozens of patents for division of research on basic and applied. actively. "Developed countries that pamper modern technologies. It has We need a continuous dialogue and science and research provide one per cent made a decision to invest in cooperation, including the training of new of the GDP from the budget. Another two research and development and young talents." per cent is, however, from private companies. We do not achieve this level of now it pays. The same holds for GREAT CHANGES IN CZECH support in the Czech Republic." other Czech companies that SCIENCE were not afraid to research bold According to its Director, Mr Roman EXAMPLES OF technologies. Čermák, the CzechInvest Agency also pays COOPERATION WITH close attention to investments in RESEARCH AND UNIVERSITIES sophisticated technologies. "Development One of the companies that dedicate a part .orangetisc.cz Photo: www Endeavour is exerted in the Czech Republic to remove barriers between the business and academic fields in research and development

| 32 CZECH BUSINESS AND TRADE

of their budget to science and research is support perspective researchers. "We try company will invest more than a quarter of ZAT from Příbram. The company supplies to cooperate with VUT in Brno, ČVUT in a billion CZK (approx. EUR 8 mil.) in this power engineering devices, including parts Prague, and the Secondary Vocational expansion during the next seven years. "We for nuclear reactors. "Our customers School for Computer Studies and already worked with Swell on establishing require custom-tailored solutions which Communication in Brno," confirms Mr a development centre in 2002," adds make all our products unique – Svatoslav Novák, Executive Head of the Roman Čermák. "The company is yet investments in development are thus MICOS company that is building another example of the fact that investment absolutely necessary for us," explains Ms a technology centre for information and in research and development is the best Vladislava Česáková, Executive Director of communication technologies in Prostějov, thing a company can do for itself from the ZAT. The company has begun to expand its which will be used for development of long-term point of view." development centre in Plzeň for the cost of optical data networks and electromagnetic CzechInvest's statistics show a great almost CZK 100 million (approx. EUR 3.3 compatibility components. "We also hope potential of the Czech Republic in this mil.) in 2006. "Even though we employ that the investment will help to stem the area. During 2006, the agency participated about a hundred development and project migration of quality specialists from the in the establishment of 14 research and specialists in Plzeň, the capacity of the site region of Prostějov to more lucrative development centres, 50 % of which were could not keep up with demand," adds Ms locations like Brno or Prague." founded by Czech companies. Česáková. According to CzechInvest's statistics, the All innovative companies realise the highest Czech investment in research and Jiří Sochor importance of cooperation with development that the agency took part in CzechInvest universities. They use them for finding new during 2006 was the expansion of (e-mail: [email protected]) ideas and trying to quickly acquire and Swell's development centre in Hořice. The www.czechinvest.org

HIGHEST CZECH INVESTMENTS IN TECHNOLOGY CENTRES IN 2006* Investor Sector Investment (CZK/EUR mil.) Jobs Region SWELL www.swell.cz design, mostly automobile parts 242.88/8 52 Hradec Králové ZAT www.zat.cz automation of industrial processes 91.27/3 15 Plzeň D.S.K. www.dsk.cz machine-industries equipment 77.10/2.6 20 Ústí nad Labem ELCOM www.elcom.cz electronic devices 50.00/1.7 19 Moravia-Silesia MICOS www.micos.cz electronic parts, semiconductors 35.75/1.2 18 Olomouc *The table only shows investments that the CzechInvest Agency participated in.

300 Schools Participating in a Unique Project

ForTech, an extensive project CZK 1.5 million (about EUR 50 000) has Vítkovice and V-NASS. They gained personal launched by the Moravia-Silesia been earmarked for the initiative from the experience which will help them to explain Regional Budget. "Advisors working at better what future skilful and highly Region and the Regional schools are to become key intermediaries qualified workers can expect in the different Development Agency (RDA), between us, pupils and parents. We would types of operations. "ForTech and its seeks to encourage the interest like them to communicate information on outputs are actually a materialised answer to prospective jobs in technical branches and at the demands of companies and investors in of elementary school pupils in the same time to gain an understanding the Region. At the beginning we promised studies for technical professions about the present situation in enterprises not only to attract investors - both foreign at training centres and focussing on electrical, engineering, and and domestic - to the Region, but also to vocational schools. ForTech building industries and in companies of the take care of them. This meant that, for information technology sector", Mr Pavel example, we would help them with the includes cooperation with Drobil, Vice-president of the Moravia-Silesia recruitment of qualified employees. And this employers, vocational schools Region for economic development explains is what we are doing now", Pavel Drobil and universities, branch the initiative. He adds that this is why added. He noted that the Moravian-Silesian associations, retraining and education advisers have been offered the Region wants to be first not only in the opportunity to visit attractive companies in volume of investment (where it succeeded advisory centres, and labour the Region. During April 2007, school last year with the volume of CZK 54 billion - offices. representatives who had expressed an about EUR 1.7 billion), but is also headed for interest in the project visited companies such the position of a leader in addressing key as BEFRA-Electronic, Huisman Konstrukce, obstacles to the further Regional VOKD, Bang & Olufsen, Visteon-Autopal, development.

33 | SERVICES

Moravian Golf Pearl

Golf in the Czech Republic, COULD YOU PLEASE INTRODUCE a possibility of private lessons and custom- that means dozens of quality THE NEW GOLF AREA? tailored golf training for individual clients. Kaskáda Golf is a newly built area with There are five professional instructors on the courses and a unique a 27-hole course, with a complete range of grounds who can do the teaching in atmosphere. There is an facilities, located in an exquisite hilly English, German, and French. Besides golf, ongoing boom in the building countryside 9 km from Brno in the there are, based on the client's wishes, immediate vicinity of the Brno dam. The many accompanying services on offer of golf courses (15 % annual course was designed by the prestigious including motor quadricycles, petanque, growth). Investors' main British company GAUNT & MARNOCH, climbing walls, and many other things. concern is the quality and which was hired to prepare a project There are also regular activities like Thai facilities of the courses, according to the most modern trends so as massages, cooking and language classes, to offer a fine experience for amateur etc. We are currently preparing a project including accommodation players, but at the same time to be able to that would expand the grounds to include and wellness programmes. fulfil all criteria for holding professional a congress centre, covered pool, wellness This is also the main focus sporting competitions. area, and a bowling alley. of the newly built golf area, I believe the two differing requirements have been combined superbly. The main COULD YOU TELL US ABOUT Kaskáda near Brno. We asked quality of the course is the fact that all holes ACCOMMODATION AND its director, Mr Pavel Zeman, are remarkably well-arranged and all GASTRONOMY? what are its ambitions and hazards are visible. A characteristic trait of There is, of course, both a four-star hotel the course is how perfectly it blends with its and a restaurant on the grounds. The four what is has to offer. surroundings and the great number of star hotel is meant for relaxation and is artificial bodies of water that add to the prepared to cater to golf players and visitors course's uniqueness. The entire atmosphere alike. All of the rooms are in several was emphasised by Architect Roman Mach, bungalows surrounded by nature. Hotel who designed all buildings on the grounds guests will find appropriate amenities (restaurant, hotel, technical buildings, etc.). corresponding to the stated category as As was the case with the course's architects, well as the calm of the natural Mr Mach also tried to adapt the buildings to surroundings. Overall capacity is 100 beds. nature – not vice versa. Now it is up to the Our guests will appreciate the quiet and visitors of the course to judge whether this pleasant environment 9 km away from was the right way. Brno. The restaurant offers choice delicacies prepared by our chef Michal Göth, who is WHAT DO YOU OFFER BESIDES considered to be one of the greatest cooks GOLF? in the Czech Republic. There is a daily First of all it's a golf academy that is special menu for the visitors of our particularly intended for golf beginners or restaurant. We can, of course, prepare those who simply enjoy the game of golf. banquets, garden parties, or other special There are no limitations and everybody can events according to our customer's wishes. try to play golf on the scaled down 6-hole course. We also offer a golf clinic for groups WHAT PACKAGES DO YOU OFFER of clients. It is a sports and social event TO YOUR CLIENTS? during which the participants learn and try Our main goal is an individual approach to basic golf skills under the supervision of our customers, which is why we strive to a professional instructor. There is, of course, tailor our clients' programme exactly Restaurant according to their wishes. We do, of course, have a permanent offer of the so-called weekend and holiday packages that are intended for visitors with differing interests, or combinations for entire families. Not only can our visitors play golf, they can also spend time in natural environment or see some beautiful landmarks around Brno. As an example, I would like to mention the possibility of visiting the Moravian Karst or the splendid sights in Valtice and Lednice. I can recommend visiting our website (www.golfbrno.cz), where you can familiarise yourself with the individual offers and check our grounds via a webcam to find out about current conditions on the 18th hole green, club and hotel buildings course.

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