Czech Economy Among Europe’s Top 10 High Income from Export of Services Harmonisation Amendments to the Commercial Code

Region 11-12 Central Bohemia 2007 CONTENTS

CZECH BUSINESS AND TRADE

Economic Bi-monthly Magazine with a Supplement is Designed for Foreign Partners, Interested in Cooperation with the Czech Republic INTRODUCTION Question of the Month for Milan Hovorka, Deputy Minister of Industry Issued and Trade ...... 4 by PP AGENCY s.r.o. as an exclusive commission for the Ministry of Industry and Trade ECONOMIC POLICY of the Czech Republic Czech Economy Among Europe’s Top 10 ...... 5 High Income from Export of Services...... 7 EDITORIAL BOARD: Milan Hovorka (Chairman), Ivan Angelis, LEGISLATION Zdena Balcerová, Jiří Eibel, Zbyněk Frolík, Harmonisation Amendments to the Commercial Code...... 10 Růžena Hejná, Josef Jílek, Ivan Jukl, Zdeněk Kočárek, Lucie Králová, Marie Pavlů, Pavla Podskalská, CZECH TOP Josef Postránecký, Libor Rouček, Jiřina Semanová, Our Trump Card is our Made-to-Measure Deliveries...... 12 Jarmila Škvrnová Unique Czech Biotechnologies May Start Business Worth Billions ...... 12 Line from Elmarco Started to Produce Nanofibre Fabric ...... 13 MANAGING EDITOR: Jakub Havel REGION NUTS 3 – Central Bohemia Region ...... 14 –28 EDITORS: Jaroslava Bradová, Naďa Vávrová SERVICES Starlight at Holiday Inn Brno ...... 29 REGULAR COLLABORATORS: Tourism Steadily on the Rise...... 30 Eva Tomášková Spa Resorts in the Czech Republic...... 32

TRANSLATION: PRESENTATION OF FIRMS Vlasta Benešová, Alena Kenclová, Aspena, s.r.o...... 2 Robert Krátký, Lucie Pavlíčková, Dagmar Šímová, Halka Varhaníková ZAT a.s...... 27 PUMAX, spol. s r.o...... 31 READ: Cosmetics ATOK International s. r. o...... 35 Mathew Booth, Ivana Kadlecová, Obecní dům, a.s...... 36 Katherine McCloghry, Zuzana Pavlíčková BVV FAIR TRAVEL s.r.o.; LEASINGER, a.s.; F.I.Z. spol. s r.o.; GRANDHOTEL PUPP GRAPHIC DESIGN: Karlovy Vary, akciová společnost; Richmond a.s. Miloslav Bucvan, Helena Dvořáková, Lobby Česká republika

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3 | INTRODUCTION

Question of the Month for Milan Hovorka, Deputy Minister of Industry and Trade

Today, the economic dimension is one of the institutions of the European Union or in fundamental pillars of diplomacy. The dealings with other organisations such as economy is increasingly becoming the World Trade Organisation. This is the a determining factor of foreign policy. This is direction we intend to take in order to wholly true of the Czech Republic. The increase the effectiveness of our work. Ministry of Industry and Trade, the Ministry of Foreign Affairs, and other public administration bodies are well aware of this Economic diplomacy must reflect the fact and aim to proceed in a way that will needs of the business community. In enable the promotion of the Czech Republic what way do you invite feedback abroad by means of trade, investment, and from entrepreneurs? active trade policy. Today, our prosperity is In order to ensure the effectiveness of highly dependant on exports and our basic economic diplomacy, it is necessary to strategic raw materials are imported from establish a clear vision and focus. Economic abroad. As a small and open economy we, diplomacy must be efficiently organised and simply speaking, have no other choice. must reflect the needs of the Czech business environment. Without the involvement of the business community in decision-making on fundamental issues concerning support of What specific steps are public exports, investment and trade policy, it administration bodies taking to would be impossible for me to conceive an establish an effective economic effective and functioning economic GENERALLY SPEAKING, THE diplomacy model? What role do diplomacy. In today's globalised world, this is ROLE OF ECONOMIC economic councillors and embassies a trend followed by all countries. In the DIPLOMACY IS BECOMING in general play in the promotion of Czech Republic, our efforts, too, are aimed at INCREASINGLY IMPORTANT Czech economic interests abroad? ensuring economic diplomacy is able to ON A GLOBAL SCALE. IN Our efforts are aimed at ensuring all entities respond to real demands voiced by business WHAT WAY IS THE MINISTRY operating in foreign trade are entities and public services related to the OF INDUSTRY AND TRADE AND OTHER PUBLIC interconnected. This concerns bilateral and promotion of economic interests reflect these ADMINISTRATION BODIES multilateral business negotiations, needs. Businesses themselves know best OF THE CZECH REPUBLIC investments, financial flows, as well as the where and in what way to best export or RESPONDING TO THIS sharing of know-how, the protection of invest their money. The role of the state is to TREND? intellectual property rights, cooperation in help businesses demonstrate their ability on I would not like to go too far foreign development and, last but not least, foreign markets. Today, businesses are back in history. It is, however, the promotion of the Czech Republic already actively involved in the process of apparent that as the world trademark worldwide. All entities, whether economic diplomacy building. They have the at home or abroad, be it ministries or foreign opportunity to offer their own suggestions economy becomes more and embassies, the headquarters of agencies for which are subsequently put into practice. more globalised and the the promotion of export - CzechTrade, for Such proposals need not always relate to interconnectedness of national the promotion of business and investment - large system measures. At the same time, it markets increases, views on the CzechInvest, for the promotion of tourism - is true this area still offers much room for role of diplomacy are also CzechTourism, or agencies for the improvement. For this reason and following changing fundamentally. In the promotion of the good name of the Czech agreement with the Minister of Foreign past, these views were rather Republic – Czech Centres, must join forces Affairs, the Minister of Industry and Trade has to operate in a manner that clearly decided to establish a Trade and Investment conservative or traditional if you acknowledges the existence of one another. Council as a permanent advisory and like, and were almost exclusively This is the only way to prevent undesirable coordinating body. This Council will be made associated with the assertion of duplicities. The objective is that these up of the representatives of the Ministry of the political and power interests entities prepare joint action plans, so they Industry and Trade, the Ministry of Foreign of the state. are able to offer services demanded by Affairs, and other public administration entrepreneurs. We want them to operate in bodies and institutions established by the areas that offer the greatest potential for state on the one hand and representatives of increasing Czech exports and for attracting the business sector on the other. It will serve foreign investment. State representatives as a foundation for seeking out ways of abroad should have a clear idea of the increasing the effectiveness of economic interests to be promoted in interactions with diplomacy even further.

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Czech Economy Among Europe’s Top 10

For two years, the Czech FROM INVESTMENT TO growing, with the simultaneous growth of economy has been growing at CONSUMPTION exports. Actually, most foreign investors According to information in hand, it is came to the CR with the intention of a rate steadily surpassing the six obvious that the current prosperity of the producing and exporting their products. per-cent margin. According to Czech economy has firm foundations. They Exports began to grow massively, especially the latest figures published by were built at the beginning of this of motor cars, but also of TV sets, the Czech Statistical Office, the millennium by foreign investors, who computers, mobile telephones, etc. In 2005, decided to use the comparative advantages for the first time in the short history of the year-on-year growth of the of the Czech Republic (cheap, and at the Czech Republic, foreign trade became the Czech economy in the second same time well educated workforce, principal force stimulating the growth of the quarter of the year was on the industrial history of the CR, corresponding country’s economy. The year 2006, however, infrastructure, and also investment brought a distinct change. Household level of 6 % (based on gross incentives). Most investments went into the consumption came to figure ever more domestic product in constant automobile industry, electrical engineering, strongly among the key sources of economic prices). In comparison with the and the chemical industry, branches growth. The share of foreign trade and first three months of the year, generating considerable added value. The investment began to shrink, although in arrival of foreign investors triggered off an 2006 the TPCA car factory in Kolín raised its the growth rate showed a slight investment boom in the CR, which set the production to full capacity. After several slowdown, from 6.4 %; whole economy in motion. The growth of years, the continuing economic growth nevertheless, the growth of the real gross domestic product accelerated and began to manifest itself also in private Czech economy can be described STRUCTURE OF ECONOMIC GROWTH IN THE CR as robust. (SHARES OF INDIVIDUAL GDP COMPONENTS IN PERCENTAGE POINTS) 2004 2005 2006 1st half of 2007 Household consumption 1.5 1.2 2.1 3.2 Consumption of the Government and non-profit organisations -0.7 0.6 0.3 -0.2 Gross capital formation 2.5 -0.1 3.0 3.0 Net exports 1.3 4.8 1.0 0.2 GDP 4.6 6.5 6.4 6.2 Source: Czech Statistical Office, September 2007

in 2004 reached nearly 5 %. Gradually, as consumption. The unemployment rate new manufacturing plants were put into declined, household incomes were growing operation, industrial production was and low interest rates boosted demand for credits. In the first half of 2007, a full 50 % of economic growth was due to private consumption. People spend more and more for dispensable – luxury – goods, such as cars, furniture, electronics, and holiday- making. Spending for food and for indispensable goods is growing as well, but at a slower rate. The structure of household spending is coming closer to the "European standard".

THE ECONOMIC STANDARD IS RISING The recent, as well as current economic growth has ranked the Czech Republic among the ten EU states with the fastest- growing economies. Of the neighbouring countries, only Slovakia and Poland are growing faster (in the second quarter of 2007, 9.4 % and 6.7 %, respectively). Slovakia, like the CR, is benefiting from high household consumption supported by the growth of real income and employment. In Poland, the growth is boosted, for the time being, by investment, followed by household consumption. Although Slovakia Most foreign investors who came to the Czech Republic intended to manufacture goods for export. Car export is showing the third highest economic has been rising noticeably in the recent period. A boost came in 2006, when production commenced to the growth, after Latvia and Estonia, it will not full capacity in the automobile plant TPCA (Toyota Peugeot Citro¨en Automobile) Photo: TPCA

5 | ECONOMIC POLICY

Its present rate of economic growth ranks the Czech Republic among the ten countries with the most rapid growth in the European Union manage to reach the economic standard of a long-term basis, showing high rates of sectors, the current growth of around six per the CR in the next five years, in terms of GDP growth, which in the past two years cent has exhausted the free supply of the per capita based on the purchasing power surmounted the ten-per cent mark, their workforce – a labour shortage is recorded, for standard. The Czech Republic will easily economic standard remains far below 75 % example, by the building industry, services in the area of information technologies, and ECONOMIC STANDARD OF SELECTED EUROPEAN STATES* many other branches. The Czech economy 2005 2006 2007 2008 has run against growth barriers. Even if firms Czech Republic 74.1 76.4 80.4 83.8 wished to raise their production capacity to Estonia 59.5 64.6 70.6 76.2 meet the strong demand at home and Lithuania 51.6 55.6 60.1 63.6 abroad, they would have to pull back because Latvia 48.2 53.7 59.4 64.1 of the labour shortage. Regrettably, the Hungary 62.2 62.9 64.7 66.3 Poland 48.9 50.9 54.3 57.1 situation on the labour market will not Slovakia 57.5 60.3 65.7 69.6 improve overnight, so that a slight slowdown EU25 100 100 100 100 of the growth of the Czech economy must be Source: Eurostat, September 2007 reckoned with in the next quarters. This Note : For the years 2007 and 2008, prediction by Eurostat *in terms of GDP per capita based on the purchasing power standard in % shows that under existing conditions the current high growth is untenable. In 2008, maintain its position of the economically of the EU25 average. Paradoxically, the the real gross domestic product of the Czech most advanced country in Central and East 75-per cent limit is used in the EU as Republic will increase by about 5 % and in Europe in the next five years. If, in addition, a dividing line between underdeveloped and 2009 by approximately 5.5 %. The running-in the Czech economy maintains its growth developed regions or countries. In this of Hundai car factory in Nošovice to full lead over the EU25 average on the level of at respect, in 2006 the Czech Republic scored capacity has a real chance of raising the least two percentage points (in 2006 the a success by getting over that dividing line. growth of the Czech economy by half lead was approximately three percentage a percentage point. points), in five years (until 2012) the Czech IS THE RAPID ECONOMIC Despite the expected moderate economic standard can grow from the GROWTH SUSTAINABLE? slowdown of its economic expansion, the current 76.4 % to nearly 85 % of the EU25 The rate at which the Czech Republic will be Czech Republic will remain among the EU25 current average. Some time later we could catching up with the more developed states with above-average economic growth. In get ahead not only of Portugal, but also of of the European Union will depend on the the ideal case, it will keep its position among another member of the "old" European capability of Czech industry, services, and the first ten fastest-growing economies of Union, Greece. For the time being, Greece, other economic sectors to maintain its lead the EU25, after Latvia, Estonia, Slovakia, with its 85 % of the EU25 average, is still over the average growth rate of the EU. It is Lithuania, Romania, Bulgaria, and Poland. too far ahead. The figures for Estonia and obvious that the Czech economy will not Latvia show how difficult it is to catch up attain a two-digit growth rate of its gross Helena Horská with the economic standards of the old domestic product. Faster economic expansion Analyst members of the European Union. Although is hindered especially by the labour market – Economic Research, Raiffeisenbank a.s. those countries have been expanding on a bottleneck of the Czech economy. In some (e-mail: [email protected]) Photo: purestockX.com

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High Income from Export of Services

The accession of the Czech During the fifteen years of its somewhat less dynamic: in the years 1996 Republic to the European Union existence, the Czech Republic has to 2002, income generated by transport always been able to rely on the services was almost three times lower than in spring 2004 was accompanied import and export of services, or more that of tourism. Income from other services by a large increase in the flow of precisely on their positive balance of trade totalled approximately half the income goods, which has since been – each year, exports of services exceed the from transport and tourism. While the value of their imports. As such, the balance value of transport services and the value of sustained. This increase resulted of services has become a stable balance other services improved with the accession in an improvement of the item, reducing to a certain extent the large of the Czech Republic to the EU in May balance of foreign trade, which deficits of the current account of the 2004, tourism was not influenced by this shifted from long-term deficits to balance of payments, something that factor in any significant way. cannot be said of the balance of trade in positive margins, increasing each goods for the 1993–2006 period. Although … HIGH INCOME FROM year and outperforming past the turnover of goods is indeed far greater TOURISM values. The growth trend has than that of services, the Czech Tourism dominates the income of the also been particularly evident in Republic’s foreign trade in services is Czech Republic gained from international certainly not insignificant in trade relations trade in services (i.e. from their export - in the past two years in the export with other countries, if only for the reason the terminology of the balance of and import of services. The Czech that the balance of services is the only payments). During the past eleven years – Republic’s trade in services, component of the current account of the with the exception of 2002 – the income of balance of payments to remain positive the Czech Republic from tourism has each though, remains far more modest each year of the afore-mentioned period. year exceeded, in CZK, the one hundred than foreign trade in goods – And what are the specifics of our foreign billion mark (EUR 3.5 billion), amounting with a turnover more than trade in services? last year to CZK 113.1 billion. The interest seven-fold lower. However, when of most foreign tourists arriving in the INCOME EQUAL TO THAT 90s focused predominantly on the capital measured as net income, the OF MACHINE AND METALS city of Prague. The figures for this year, too, balance of services is indeed EXPORTS show that the amount of tourists arriving significant: in 2006, its surplus In the statistics of external economic and staying in Prague is almost double the equalled EUR 1.2 billion, half of relations, trade in services is recorded number in all other regions of the Czech separately for tourism, transport services, Republic combined. In recent years, the surplus achieved in foreign and other services, the range of which is however, the interest of foreign tourists has trade in goods. The Czech very broad. In 2006, the Czech begun to shift even to the regions, Republic’s largest net income is Republic’s income from services totalled especially to the spa town of Karlovy Vary. EUR 10.6 billion – approximately the same Nevertheless, the numbers for 2006 obtained from tourism and value as the combined revenue from the illustrate the prevailing appeal of Prague - transport services. The most export of machines and metallurgical in comparison to the 3.7 million tourists significant among other services products that year. visiting the capital city, only 0.5 million imported to the Czech Republic foreigners visited the second most AN ATTRACTIVE COUNTRY… attractive Czech region - the Karlovy Vary are financial services, while In terms of structure, the Czech area. information technologies Republic’s greatest foreign income from dominate exports in this services is generated by tourism. Since TOURISM DISPLAYS HIGHLY category. 2004, income from the provision of other POSITIVE BALANCE … services has also been increasing The Czech Republic is not "uninteresting" dramatically, while income from transport is to foreign tourists and the same can be said vice-versa. Last year, Czechs holidaying STRUCTURE OF CZECH BALANCE OF SERVICES IN 2006 (CZK BILLION) abroad spent the largest sum of money Transport Tourism Other services since 1998 (in the terminology of the 150 balance of payments, such expenditure 130 represents the import of services). 110 Nevertheless, expenditure on foreign

90 tourism amounting to EUR 2.1 billion was

70 far outweighed by income. As a result, the Czech Republic displayed an active balance 50 in this services sector amounting to EUR 1.9 30 billion. This is the best result, even from 10 a long-term perspective, of all the main -10 components monitored in the Czech -30 balance of payments. While income from -50 Income Expenditure Balance transport services also exceeds expenditure Source: Czech Statistical Office on transport services in the long term, so-

7 | ECONOMIC POLICY

Due to the geographic situation in the centre of Europe, the Czech Republic is a transit country. This influences the result of transport services – revenues from them have for long been higher than expenditures on these services called other services on the contrary display of transport services is weakening. It was quarterly growth of services exports a long-term deficit, thus worsening the expected that our fresh membership of the equalled 15 % and again in 2006, when overall balance of trade in services of the EU would lead to an intensification of the quarterly growth rate reached 17 % (in Czech Republic. transport services due to the increase in comparison to +1.1 %, respectively 1.3 % trade in goods, the dismantling of in the years 2002 and 2003). This was …SLIGHTLY LOWER IN administrative barriers, and the general nonetheless three times less than that of TRANSPORT intensification of business relations. The expenditure on transport services. This Thanks to its geographical location in the expenditure of the Czech Republic on situation should be remedied with the centre of Europe, the Czech Republic is these services indeed increased implementation of the toll system. From a transit country. This fact influences the significantly – peaking in the first quarter a financial point of view, the introduction result of trade in transport services – in the of 2005, when the expenditure of of tolls should also reflect the present-day reality of Czech roads and motorways – the TOTAL TRADE OF THE CZECH REPUBLIC IN OTHER SERVICES ( CZK BILLION, increased flow of goods transported via the TWO-YEAR RUNNING AVERAGE BASED ON QUARTERLY DATA) Czech Republic. The annual sum of fees collected by the toll system should reach 100 000 approximately EUR 0.2 billion in 2007.

80 000 In 2006, private air traffic displayed a surplus of almost EUR 0.6 billion. Road 60 000 freight transport too showed a positive

40 000 balance of more than EUR 0.3 billion. In contrast, a considerable deficit was 20 000 displayed by air transport – other services

0 (EUR 0.1 billion) and air freight transport (EUR 0.1 billion). -20 000 A comparison of the trend of imports

-40 000 Export of other services (income) and exports with the dynamics of Expenditure on other services (import) expenditure and income from transport Balance of trade in other services services shows curves that are almost long term, the income obtained from these importers on transport services rose year- identical - a signal that shows greater services exceeds expenditure. In 2006, on-year by almost a half. alterations in delivery terms have not income from transport amounted to EUR 3 occurred and transport costs continue to be billion and was more than twice as large INCOME FROM TRANSPORT invoiced in much the same way. (EUR 1.3 billion) as the figure for 1994. TO RISE DUE TO TOLL Expenditure, however, increased COLLECTION HUNDREDS OF BILLIONS IN considerably more, namely from EUR 0.9 A similar trend was, however, not recorded OTHER SERVICES… billion in 1994 to EUR 2.2 billion in 2006. in the case of the Czech Republic’s income The item Other services of the balance of Despite the evident acceleration of from transport services. A significant services of the current account of the income and expenditure in transport increase in dynamics after accession to the Czech balance of payments displays a long-

following accession to the EU, the margin EU did occur in 2004, when average term deficit. This deficit grew considerably Photo: purestockX.com

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SHARE OF LARGEST ITEMS IN OVERALL EXPORT OF OTHER SERVICES to the tertiary sector. The share of services FROM THE CZECH REPUBLIC (2006, IN %) in gross added value in the Czech economy is growing less than would correspond to the level of economic development of the Czech Republic according to GDP per inhabitant measured in purchasing power parity. The overall judgement, however, is not purely negative. Czech industry has undergone a great many positive changes (see the article in the previous issue of 0 5 10 15 20 25 Czech Business and Trade), which mark telecommunication services management consulting advertising services a significant turning point. The prevailing IT services financial services technical services services provided by the companies of direct investors strong share of the industry sector is in the Czech Republic to their parent companies namely ascribed to significant changes after 1997 and dropped far beyond its pays for licenses abroad. Income obtained in its structure, which in turn are a result of long-term average after 2002. Despite from IT services in 2006 totalled roughly changes in proprietorship and strong improvements at the beginning of 2004, EUR 0.7 billion with a year-on-year increase capital flows, targeted in particular at the deficit of other services is still worse by more than a third. Foreign business Czech industry, and above all at the than its long-term average. It is worth partners paid EUR 0.4 billion for advertising processing industry. mentioning that this item represents services. However, income from financial Drahomíra Dubská income of EUR 3.6 billion in 2006 and as services dropped year-on-year by a fifth to Analyst such is a considerable component of Czech EUR 0.3 billion. Macroeconomic Analyses Dept. foreign trade in services. Expenditure on The unfavourable outcome of trade in Czech Statistical Office

other services is even greater as – according other services is determined in particular by (e-mail: [email protected]) Photo: CzechTourism to data for the year 2006 – the import of the volume of imported other services (EUR 5.1 billion) was even financial services (EUR higher than the sum of expenditure for 0.9 billion), which transport services and tourism. equalled almost a fifth of overall expenditure on … LEAD TO RESULTING other services in 2006. DEFICITS The import of financial The greatest deficits are displayed by services has been highly financial services, licensed businesses, dynamic in particular consulting, research and development. Last over the last five years year, the overwhelming majority of other during which it increased services displayed a deficit. In 2006, 2.5-fold. In 2006, the imports of financial services outweighed Czech Republic paid EUR exports by EUR 0.6 billion, and by EUR 0.4 0.4 billion for licenses billion for author’s royalties and licenses. and the same amount in Other services with very high deficits the case of IT services include management consulting services, and management services related to trade, research and consulting. The import development, and operative leasing. High of telecommunication deficits recorded in the case of hedging services is also services in the insurance sector are only significant, as are logical. In view of the size of domestic purchases from abroad entities and the distribution of risks, it is of services provided by necessary to seek cover with foreign direct investors in the reinsurance companies (another factor Czech Republic. could be the relatively high price of cover in general, the sharp rise of which followed TRADE IS the risk increase induced by the terrorist REFLECTING THE attacks of September 2001). PROPORTIONS OF THE ECONOMY EXPORT OF INFORMATION Foreign trade of the TECHNOLOGY AND Czech Republic reflects ADVERTISING the sectoral proportions The majority of Czech exports of services of the Czech economy, are related to information technology and i.e. the large share of advertising. By contrast, income from the secondary sector licenses is minimal, especially in comparison (industry) in the Tourism is dominant in revenues from international trade in services. The Czech to the volume of money the Czech Republic economy in comparison Republic has a surplus in the balance of this trade

9 | LEGISLATION

Harmonisation Amendments to the Commercial Code

In the Czech Parliament, the 1. COMPANY 2. AUTHORISATION Chamber of Deputies is presently INFORMATION TO BE OF FOREIGN ENTITIES ALSO ON THE INTERNET TO CONDUCT BUSINESS debating a governmental draft of Information on a business entity's IN THE CZECH REPUBLIC amendments to the Commercial commercial name or name registered Presently, foreign entities become entitled Code that should harmonise the office or place of business, identification to conduct business in the Czech Republic law with several dozen EU number, and the data connected with the on the date of their registration, or the entry recorded in relation to a company in date of registration of their branch, in the directives and mitigate the the Commercial Register and other Czech Commercial Register. There is an deficiencies accumulated from information pursuant to § 13a of the exemption for individuals who are previous faulty implementations Commercial Code will mandatorily need to nationals of an EU country or a country be set forth not only on business within the EES, as such individuals can of European law. The most documents (from now on, in agreements conduct business under the same regime significant changes proposed by as well), but also on the web pages as Czech individuals. The amendments aim the amendments are the relating to the entrepreneur, business of to expand this exemption to the family following: a foreign entity or branch of a foreign members of the foregoing individuals (and entity. Exemptions apply to legal entities also to nationals of the Swiss Federation), governed by the laws of a foreign country as well as to nationals of third countries and individuals residing in a foreign who were awarded the status of long-term country whose laws do not stipulate an residents in another EU country, and to obligation to register in the commercial their family members who received a long- register or do not allow such registration: term residency permit in the Czech such entities will not have to set forth the Republic. This is intended to fulfil the information on registration in the records principle that the legal status of third of entrepreneurs/companies in their home country nationals should be brought closer country on their business documents or to the legal status of nationals of the web pages. member countries and that an individual legally residing in an EU member state on a long-term basis should be accorded, insofar as concerns job opportunities and self-employed business activities, rights that come as close as possible to the rights enjoyed by EU citizens.

3. COMMERCIAL REGISTER The procedure for submitting requests for an officially certified electronic transcript from the Commercial Register, i.e. a transcript of an entry or document contained in the Collection of Documents, will be simplified: Presently the Commercial Code requires such a request to be submitted in electronic form and furnished with a recognised electronic signature. Under the new amendments, a paper document or an electronic request will be sufficient for the issuance of an officially certified transcript. Another new feature is the possibility to record entries in the Commercial Register in foreign languages in addition to Czech. A request for the recordation of such an entry will need to contain a certified translation of the Czech version of the entry into the foreign language. The amendments also stipulate for Czech entities an obligation to prepare and deposit certain kinds of documents into the Collection of Documents in the Czech language. By this, parties are precluded from depositing such specified documents New legislation makes it easier for foreign persons to open business in the Czech Republic

into the Collection of Documents in the Photo: purestockX.com

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original foreign language versions, along with a Czech translation, as was the case up to now. The deposition of a translation – not the foreign language original - of the applicable document into the Collection of Documents will be purely optional and voluntary. The documents involved are, in particular, memoranda of association and any amendments thereto, decisions on the appointment and recall of members of a company's statutory bodies, financial statements and similar documents. Unless the translation is from one of the languages of member states of the EU or EES, the translation will need to be officially certified – just as in the case of the documents which it will still be possible The objective of the amended Commercial Code is to harmonise it with more than a dozen European directives, to deposit in their original foreign and eliminate the shortcomings of the previous erroneous implementation of the European law language accompanied by a translation. In addition to ensuring harmonisation with deposition of accounting records relating be regulated in a uniform manner for both EU law, the intent of this part of the to a foreign entity, its business, or its domestic and international transactions. amendments to the Commercial Code is to branch into the Collection of Documents. ensure that the documents that are most In the future, such an obligation would 6. FINES FOR NEW material to the "life of a company" are only apply if the accounting records have TRANSGRESSIONS deposited into the Collection of not been prepared in accordance with EU In connection with the proposed Documents in the correct versions that legal regulations or in an equivalent amendments, amendments to the act on correspond to the intent of the parties and manner (an example of such "equivalent transgressions are also being proposed. In that nothing ends up being "lost in manner" would probably be preparation in the future, actions classified as translation". accordance with US GAAP) and – in the transgressions would also include, for In the event of inconsistencies between case of branches of foreign banks and example, a breach of an entrepreneur's the Czech-language and foreign-language foreign financial institutions - provided obligation to file a proposal for the content of the entries in the Commercial that the condition of mutuality has not recordation of an entry or a change or the Register or between the documents been met. Such obligation will therefore deletion of an entry in the Commercial deposited in the Collection of Documents not apply to foreign legal entities governed Register, or a failure to deposit a document in Czech and the optionally-deposited by the laws of a member state of the EU or in the Collection of Documents. A failure foreign language translations of such EES, to foreign individuals who are to set forth the mandatory information on documents, the amendments stipulate that nationals of a member state of the EU or business documents or an entrepreneur's it is not possible to invoke in respect of EES or to their branches. Up to now, this web pages should also be classified as third parties the wording of a foreign- obligation applied only if accounting a transgression. For such transgressions, language version publicised or deposited in records were not prepared in accordance entrepreneurs will be subject to a fine of the Collection of Documents. On the other with Czech legal regulations. up to CZK 50 000 or a prohibition of hand, a third party can in fact invoke the activities for one year. The current wording of a foreign-language version 4. TRANSFORMATIONS OF definition of the criminal act of publicised or deposited in the Collection of COMPANIES misrepresentation of operating results or Documents, unless the entrepreneur The amendments clear up certain capital is expected to be maintained. Such proves that such third party was aware of interpretation-related ambiguities criminal act is deemed to be committed by the Czech language version of the entry or regarding an audit of the initial balance any party that endangers or restricts the document deposited in the Collection of sheet during a merger of limited liability rights of another party by failing to file Documents. companies. The proposed amendments without undue delay a proposal for the The amendments should also remove unequivocally stipulate that in cases where recordation of mandatory information into a legislative mistake, an obsolete leftover the successor limited liability company has the Commercial Register or by failing to from the previous legislative treatment, an obligation to have its final financial deposit a document into the Collection of which stipulated that the provisions on statements audited, it must have the initial Documents despite being required to do so mergers shall also be applied appropriately balance sheet audited as well. by law or pursuant to a contract. to disposals of businesses. This means that the list of documents required to be 5. LATE PAYMENT INTEREST deposited into the Collection of In compliance with European law, the Documents will no longer include draft amendments repealed the special Marina Holá agreements on transfer of all or part of regulation of the amount of late payment Attorney at Law a business or draft agreements on the interest in international business Martina Zímová lease of all or part of a business. transactions. Late payment interest on Junior Lawyer, at NÖRR STIEFENHOFER Another new feature relates to the contractual obligations will consequently LUTZ v.o.s. Photo: purestockX.com

11 | CZECH TOP

Our Trump Card is our Made-to-Measure Deliveries

GALATEK from Ledeč nad A few years ago, the company also production of railway cars and Alta and its Sázavou is number one in its started to target exports. For subcontractors are to modernise its example, it has been active for five machinery. The delivery will consist of e.g. sector. One of its main priorities years in the Russian Federation. Among its machine tools, technology, and other is to meet the specific demands references, we can mention the repair line equipment. "Our painting complex and expectations of its for personal vehicles for IŽAVTO in Izhevsk project, worth approx. CZK 700 million or one of the recently completed works – (over EUR 23 million), will be among the customers,so its paint shops a continuous line for the surface treatment largest of its kind in the world," said Mr always offer original one-offs. of airplane parts for an aeronautics Mokroš. During its 16 years in business, manufacturer in Irkutsk in September Two parallel painting lines will be it has established more paint 2007. "We have obtained a very delivered, which will provide the complete significant order from the Russian technological process for the surface shops throughout both the engineering company Uralvagonzavod in treatment of freight cars. The entire Czech and Slovak Republics spring. The order is a part of a large painting complex is designed at the than any of its competitors. Its contract for the Czech company Alta, highest technical level in order to meet main business is in the field of which requires the delivery and renovation current and expected energy, hygiene, and of machinery totalling EUR 300 million ecological demands. rail vehicles. over the next three years," said the director of GALATEK, Mr Martin Mokroš. Uralvagonzavod mainly deals in the More at www.galatek.cz

Unique Czech Biotechnologies May Start Business Worth Billions

The Russian cosmic industry Ecofluid, as a holder of the patent- THE AGROCLAR seeks new ways to utilise its free protected technology, is one of the TECHNOLOGY world leading companies in this field The second and no less perspective area capacities and one of its largest and it has received several significant of Czech-Russian cooperation is the projects includes a key role of contracts in various countries around the application of the AGROCLAR technology. a unique Czech patented world. The system, aimed at transforming liquid manure produced by livestock into humus biotechnology. The technology USING THE SLUDGE fertilisers was conceived before 1989, but which solves the purification of BLANKET EFFECT after the high-capacity piggeries had waste water including further use To separate the sludge from the purified been closed, there was no use for the of the sludge for energy water, the USBF (Upflow Sludge Blanket technology in the Czech Republic. Filtration) technology uses the sludge However, the Russians showed interest, production or high-quality blanket effect – a fluid filter. In urban because in their country, the problem fertiliser was developed by Water sewage plants such biological sludge is grew into enormous dimensions. "There Treatment Alliance,a south usually contaminated by heavy metals, were piggeries for more than two Moravian cluster of companies which exclude it from being used in hundred thousand animals each, and agriculture. Nevertheless, Ecofluid has their excrements were discharged into including Ecofluid Group from developed an original and economical lakes and seas. After fifty or sixty years, Brno. The biotechnological solution. "We proposed to our Russian this produced enormous, stinking method of water purification is partners a solution in which our "lagoons" that are a great burden to the biotechnology would be supplemented by environment. At that, the pig manure is more and more in demand not a fluid sludge combustion, which is able to an irreplaceable source of organic only for its high effectiveness destroy heavy metals without producing biomass and nutrients for the soil – and and excellent parameters of the harmful emissions. Contaminated sludge is the lack of these means fast degradation purified water,but also thanks to thus destroyed and it provides energy," of the soil," explains Mackrle, who explains Professor Svatopluk Mackrle, the proposed an original solution to the lower costs and lower size founder of Czech fluid filtration tradition. Russian party. "The AGROCLAR requirements compared to Under the framework of the established biotechnology does not only purify water, classical technologies. cooperation, the Czech biotechnology but it also produces a humus fertiliser should be used not only in Russia, but also which has marvellous properties. The in all post-Soviet republics; its application continuous composting reactors can be is planned also in India. used to grow microorganisms that are

| 12 ehrad ad rb onre have Mackrle. says interest," shown already countries Arab The and fertiliser. Netherlands humus of such millions of produce tonnes to able be would vegetables without the need to use chemicals. healthy Russia produce to farmers composting reactor thus of allows the such a product The pests. soil or organisms micro- pathogenic to antagonistic sectors. protection,hygiene,andother medicine,environmental in hair,withuse human wide a than thinner times thousand a fibre,approximatelyof type thin extra an is Nanofibre machinery.nanofibre with dealer and producer sole the company,whichbased Liberec is the of position unique the of proof further is Thecontract filters.engine Diesel producing syndicate multinational a to company the by March in sold kind,was its of first machinery,whichunique the is The US. the in Lancaster in 2007 July of end the at textile non-woven nanofibre the of kilometres first its produced company Elmarco based Liberec the of Line TheNS FabricNanofibre Produce to Started Elmarco from Line CZECH BUSINESS CZECH AND TRADE income. realised regardsthe as territory dominant the become then will the to market exports this that adding explains, he US," in increase significant expect "Wea other companies. its and in branches Liberec from lines the to use considers moment, the at be published cannot name whose syndicate, multinational the Mareš, Mr to According machinery. fabric non-woven of traditional performance the to is This comparable hours. eight in textile nanofibre 1.45-metre-wide of kilometres ten few months. a during enhanced significantly also was fibre of quality The Elmarco. of owner Mareš, Ladislav says contract," the in guaranteed had we what than product now final the of it amount the double that produces so line the optimised have autumn in we machinery the of starting the contract to 2006 the of signing the ALLIANCE CLUSTER ALLIANCE existence of such a cluster, that is able to able is that cluster, a such "The of existence processing. in and technology purification USBF water the the of by application represented is chief programme whose cluster, Alliance Treatment Water whole the in but Group, Ecofluid in only not partner its has party Russian The gemn wt alre American large an a signed with Mareš agreement Mr 2007, autumn In sector.textile the in significant companies American most the unites Carolina, which North in centre industry development textile the with cooperation close started it year this spring In Army. US the of institute research the to textile non-woven nanofibre of production the for apparatus an of part a sold the company year Last Atlantic. the of the side on other Elmarco of activity only the not is Line NS industrial first the of sale The MARKET US The NS Line is able to produce almost produce to able is Line NS The WATER TREATMENT EXPANSIONON THE h cnrc as tsiis o the to speed of progress at testifies Elmarco. "From also contract The ENHANCED QUALITY ENHANCED Nanofibre line in the Elmarco Company Elmarco the in line Nanofibre h cnrc. u prnr highly partners Mackrle. says it," appreciate Our contract. single the to dimension new a a adds as unit, investment technology the cover aoirs n ter fet n the on environment. effect their of and use nanofibres the discussed world the around from Scientists Prague. in 2007 October of beginning the at Liberec in University by organised Technical the Elmarcowith cooperation in was – which Millennium Life, for 3rd Nano the for Nano called applications nanofibre on world conference the at presented was nanospider technology the of application and annual its that said. he revealbillion," 12 USD is turnover only can I "Now products. joint nanofibre the of of development respect in company More information at information More www.wateralliance.cz www.gate2biotech.com, at information More www.elmarco.cz ute pors i te development the in progress Further 13 |

Photo: Elmarco REGION

NUTS 3 – Central Bohemia Region

TERRITORIAL DIVISION, GERMANY LOCATION, POPULATION POLAND The Central Bohemia Region Mladá Mûlník Boleslav Kladno is situated in the centre Nymburk of Bohemia, encircling the Rakovník Kolín Prague country’s capital, Prague, Beroun Prague -East Kutná Hora in its heart.Unlike the other -West Pfiíbram Bene‰ov regions, its administration centre SLOVAKIA does not lie in its own territory, AUSTRIA but in the territory of Prague.

With its area of 11 015 sq.km, All districts have close socio-economic links where production takes advantage of the it is the largest region in the with Prague and to a certain extent form extraordinarily good natural conditions. Czech Republic, occupying 14 % the capital’s metropolitan hinterland. The The Region is especially known for its of its surface.Its inhabitants geographical position of the Central crop production, mainly of wheat and Bohemia Region strongly influences its barley, sugar-beet cultivation and fruit, account for approximately 11 % economic character. Its close links with the vegetables, and flowers, mainly in the of the country’s population.The capital and its dense transport network suburban parts. Region has 12 districts – NUTS 4, make the Region’s position extremely Its main industries are engineering, the with 1 146 communities.Only advantageous. chemical industry, and food production. The Central Bohemia Region is an In industry, the dominant position is held ten districts have their district important source of labour for the capital, by the ŠKODA AUTO a.s. Mladá Boleslav towns.The districts Prague-East which is especially useful for car factory, whose importance goes far and Prague-West have no Prague’s industry. It supplies the capital beyond the Region’s boundaries and to with food and affords valuable recreation which a large number of subcontractors district towns, and their opportunities to its inhabitants. are attached. In 2005, another important administration centre is car factory, TPCA Czech, s.r.o., started in Prague. ECONOMIC production in the Kolín District. CHARACTERISTICS The glass and ceramics industries and The Region can be characterised as an printing are represented by several industrial and agricultural area. important enterprises, while the steel Its principal agricultural resources can industry, the leather industry, and mining be found in the valley of the Labe River, have been phased out.

Krajský úřad Středočeského kraje (Regional Office of the Central Bohemia Region) Zborovská 11 150 21 Praha 5 Czech Republic phone: +420 257 280 111 fax:+420 257 280 203 Regional Office of the Central Bohemia Region e-mail: [email protected] www.kr-stredocesky.cz

Picturesque landscape in the Beroun area Photo:

| 14 CZECH BUSINESS AND TRADE

In 2005, the per capita gross domestic BRIEF CHARACTERISTICS OF THE REGION product in the Central Bohemia Region NUTS Area (sq.km) Population Municipalities Population density amounted to 92.9 % of the national per (persons/sq.km) capita gross domestic product average, ranking the Region third among the NUTS 4 – Benešov 1 475 91 889 115 62 country’s other regions. NUTS 4 – Beroun 662 79 928 85 121 In the first quarter of 2007, revenue NUTS 4 – Kladno 720 153 785 100 214 from the sale of its own products and NUTS 4 – Kolín 744 91 510 89 123 services amounted to EUR 4.68 billion, NUTS 4 – Kutná Hora 917 74 607 88 81 7.6 % more than in the same period in NUTS 4 – Mělník 701 96 378 69 137 2006. In the manufacturing industry, NUTS 4 – Mladá Boleslav 1 023 118 694 120 116 revenues grew by 7.7 % in comparison NUTS 4 – Nymburk 850 87 157 87 102 with last year. In the manufacture of NUTS 4 – Prague-East 755 122 278 110 162 transport equipment, which accounts for NUTS 4 – Prague-West 581 101 802 79 175 65 % of the total revenue of all industrial NUTS 4 – Příbram 1 692 110 333 121 65 enterprises, revenues were up by 7.8 % NUTS 4 – Rakovník 896 53 013 83 59 on the first quarter of last year. NUTS 3 – Central Bohemia Region 11 015 1 181 374 1 146 107 The largest increase in revenues, by NUTS 1 – CR 78 867 10 287189 6 248 130 19.3 %, was recorded in the production Source: Czech Statistical Office (as of 31 March 2007) of basic metals and metallurgical products. Veselí nad Lužnicí – Horní Dvořiště – countryside, many places in the Central TRANSPORT Linz/České Velenice –Vienna Bohemia Region are popular tourist The transport system is strongly destinations. There are several protected influenced by the geographical position WATER TRANSPORT landscape areas, the most important of of Prague situated in the centre of the Labe (Chvaletice – Germany) which are the Bohemian Paradise Region. For centuries, the Region’s main Vltava (Slapy – Mělník) (www.ceskyraj.cz), the Křivoklát transport routes have been constructed Ports and transship centres UNESCO biospheric preserve (www. so as to form a radiating network (www.ceskepristavy.cz) krivoklatsko.cz), and the geologically converging on Prague. With the interesting Bohemian Karst with the exception of the capital, the Region has AIR TRANSPORT well-known Koněprusy Caves (www. the densest transport network and (www.letiste.cz) jeskyne.cz). Favourite places for the heaviest traffic of all the country’s Praha – Ruzyně (public international domestic and foreign holidaymakers are regions. airport) locations by the Rivers of Berounka, Vodochody and Benešov (non-public Jizera, Labe, and Sázava. The Region is ROAD TRANSPORT international airports) famous for its rare historical sights. All international transport in the West- 13 small civilian and military airports The largest concentration of historical East direction passes through the Region, sights is to be found in the town of including four motorways and seven 1st CYCLE TRANSPORT AND Kutná Hora, with its Church of St. category roads and highways, which CYCLE PATHS Barbara, the Italian Court, Little Castle connect the other regions with the The Central Bohemia Region has with silver mines, and Charnel House). capital. They are: a general cycle route and cycle path plan, The town has been entered in the D1, E50, E65: Prague - Brno (Slovakia, and it has completed a network of trunk UNESCO World Heritage List (www. Austria) cycle paths linked up with Prague and kutnahora.cz). Another town in the D5, E50: Prague - Plzeň (Germany) the neighbouring regions, and the Central Bohemia Region worth visiting is D8, E55: Prague - Teplice (Germany) international European routes. In co- Kolín (www.mukolin.cz), but practically D11, I/11, E67: Prague – Poděbrady – operation with the capital, the Central all towns in the Region may justifiably Hradec Králové (Poland) Bohemia Regional Authorities have pride themselves on their medieval R6, I/6, E48, E49: Prague – Karlovy Vary – marked out a cycle path running around historic centres. The most famous castles Cheb – Aš (Germany) the capital, called the Prague Ring. The are Karlštejn and Točník in the Beroun R10, E65: Prague – M. Boleslav – (Poland) Region also co-operates with the Plzeň District, Křivoklát in the Rakovník E55: Prague – České Budějovice (Austria) authorities and the Bavarian District of District, Český Šternberk in the Benešov Railway Transport Neustadt, the initiator of the Paris – District, and Kokořín in the Mělník All the Region’s district towns lie on its Prague international cycle route. The aim District. The best-known chateaux are thirteen main fast-train lines, and three of this project, the Pan-European Cycle Konopiště in the Benešov District, Žleby transit corridors run across its territory. Route, is to combine efforts to obtain and Kačina in the Kutná Hora District, 1st corridor: Berlin – Děčín – Prague – financial means from the EU for the Lány in the Rakovník District, and Česká Třebová – Brno – Břeclav – realisation of safe cycle path sections on Nelahozeves and Mělník in the Mělník Vienna/Bratislava this international cycle route. District. The most interesting castle ruins 3rd corridor: Nuremberg – Cheb – Plzeň – are Žebrák near Beroun and Okoř in Prague – Olomouc – Ostrava – Žilina TOURISM the Prague-West District (www. 4th corridor: Berlin – Děčín – Prague – Owing to the attractive and interesting pruvodce.com).

15 | REGION

Central Bohemia is Developing as an Economically Strong Region with Many Opportunities for Foreign Investors

At the same time it is one of four regions involved in the setting up of industrial with over 1 million inhabitants. The zones. Central Bohemia Region is located in a very Transport infrastructure in the Region strategic position – it forms a ring around still leaves much to be desired. In recent the capital city of Prague. years, key railway routes in the Region have In a European context, the Central been renewed and improved successfully. Bohemia Region is on an equal footing However, due to the location of the with regions in member states of the Region, it has in recent years been troubled European Union. It is also a NUTS 2 by serious problems resulting from heavy independent territorial unit. The Central road transport. Some municipalities Bohemia Region has made it clear on located on the main road transport routes several occasions that it intends to take are plagued by the growing onslaught of active part in negotiating the interests of traffic. It is therefore necessary to complete individual regions in a unified Europe. It important transport communications such has assumed its place among regions as the D3 motorway, the highway between associated in the Club of Regions and also Prague and Karlovy Vary, as well as the partakes in discussions of the Committee remaining segment of the Prague orbital Central Bohemia has always of the Regions. highway. We are doing our utmost to A significant project of the Central ensure these important projects are been a region closely linked Bohemia Region was the opening of the implemented at the earliest possible date to the rich history, culture, European Office of the Central Bohemia and with a view to minimising their and economy of our country. The Region in Brussels. We have succeeded in negative impact on the environment. Central Bohemia Region came setting up a fully operational office. One of The implementation of such projects is into being as a higher territorial the effects of the work of the Office is, for influenced by the success rate and the instance, the significant support it secured appeal of commercial zones, which there self-governing unit in 2000. for two projects in the Central Bohemian are more than 100 of in the Region and In contrast to other regions, its towns of Beroun and Příbram. Overall, this more in the pipeline. seat is situated outside its support exceeds EUR 14 million. Another As part of our country’s coexistence boundaries, in the capital city success, the effect of which it is impossible within the European Union, the Central to instantly weigh up financially, is the Bohemia Region will continue to reinforce of Prague. Central Bohemia is respect the European Office of the Central its regional partnership with the German one of the largest regions in the Bohemia Region has earned. The opening Federal State of Rheinland-Pfalz, with Czech Republic. Its area covers of the Office was attended by Margot Burgundy in France, with the Swedish almost 14 % of the territory of Wallström, an important representative of region of Västra-Göteland, with the Italian the European Commission both then and region of Venice, and with the Opolski and the Czech Republic. today. Many important European Masovian Voivodeships in Poland. Mutual politicians are aware of the work of the cooperation is based on a foundation of Office today. We were also able to hold contacts among organisations, institutions, a number of exhibitions that presented the associations, schools, and towns in the Central Bohemia Region as a prospective regions. We promote social, economic, destination for both vacations and scientific, and cultural relations and, at the investment plans. same time, we act to boost the mutual Iwish Central Bohemia to develop as angrowth of tourism. Our cooperation will economically strong region with many also lead to youth exchanges and to the good opportunities to offer foreign sharing of experience among employees of investors. The numbers and indicators the public administration. speak for themselves. The share of the Central Bohemia Region in the country’s volume of foreign direct investment is considerably high – CZK Petr Bendl 159.7 billion in the 2003-2005 period, that President of the Central Bohemia Region is almost 11 % of the overall volume. In terms of the number of newly created jobs, Central Bohemia ranks high among the country’s regions with its 14 % share. From the very beginning, our goal has been to ensure the best possible conditions for the development of the Region. We have launched a large number of new projects. We have also been directly

| 16 CZECH BUSINESS AND TRADE

Boosting Opportunities in Regional Development

Regionální rozvojová agentura RDA CB co-operates closely with several structure, and the third deals with the Střední Čechy (the Regional important organisations, such as the sustainable employment issue and active Innovative Business Association of the Czech aging. Development Agency of Central Republic (AIP CR), the CzechTourism Agency Other successful projects in which RDA Bohemia - RDA CB), based in for Central Bohemia, the Technological and CB has participated include, for example, Kladno near Prague, was Innovation Centre of the Technical University the preparation of Strategic Plans for the in Prague, and other institutions. One of the Economic Development of the Town of Bělá established in 1999 as a special- Agency’s most important activities is giving pod Bezdězem, and the creation of the interest association of juristic assistance to Czech communities and Association of Communities of the persons. Its members are the regions in drawing finance from EU Bratronice Micro-region and the Přemyslid agrarian and economic Structural Funds. Central Bohemia Local Action Group. In the Already in the first financial period (2004 framework of the Common Regional chambers, and municipalities of – 2006), RDA CB has helped applicants with Operating Programme, work is also in the Central Bohemia Region. Its drawing finance from EU funds for different progress on Community Plans for the Social principal aims are co-operation projects of regional and national Development of Towns, Associations, and with local and national bodies in importance. The Agency itself is a partner to Micro-regions in Central Bohemia, which a project coming under the EU Interreg IIIC were granted nearly CZK 800 000 each. the formulation of development initiative, which it successfully closes this After the Czech Republic’s entry in the plans, the support of business year, together with five other partners. In European Union, new opportunities have and entrepreneurial activities addition, it is an active partner in the INNO- opened up for all the entities to draw DEAL project of the 6th Framework finance from Structural Funds, especially for leading to the creation of new Programme and it has participated in the business, but also for the development of jobs, support for rural realisation of the WISE project, financed by tourism and its infrastructure, the development, and other the European Commission. The first of the environment, education, and human activities. projects mentioned above is concerned with resources development. the financial market and risk capital in several partner countries; the second is oriented in a similar way to the area of Kateřina Hubáčková business innovation and enterprise and its www.rra-strednicechy.cz

Development of Education in the Kladno Region

Středočeský vysokoškolský INTERNATIONALISATION OF module forms of study. From 2006 onwards, EDUCATIONAL PROGRAMMES graduates started to receive a "Supplement institut, s.r.o. (The Central The internationalisation of educational Diploma". This supplement is a part of the Bohemia University Institute, programmes is one of SVI's priority long- Europass, in which all completed modules Ltd., or SVI) offers bachelor term goals. The Institute has set itself the and acquired credits can be used when education. The Economics and ambitious long-term goal of achieving a full continuing to study related subjects in the compatibility and transparency within its Czech Republic or EU countries. Management curriculum provides educational programmes with the One important activity is the support for three study programmes: programmes of other universities in the the entrepreneurial potential of the Company Economics and European region, and to acquire both the population and the preparation for business Management, Marketing, and European Commission's "ECTS Label" and by developing business knowledge and the "Diploma Supplement Label" competence. Economics and Business certificate by 2010. The first steps toward As a part of an operational programme for Management. active internationalisation were taken by the development of human resources, the the new management in 2005, and thus Centre for Further Development of the Kladno created a good starting point for the Region is being established by SVI. The centre coming years. is co-financed by the European Social Fund The Institute has been awarded the and the Czech Republic. Its goal is to create "Erasmus University Charter". Because of a system that would allow all those the school's participation in the Socrates interested in lifelong learning to upgrade More at: www.svikladno.cz Erasmus programme, support from EU funds their qualifications during their professional www.cedrkladno.cz has been secured so as to prepare for lives.

17 | REGION

Mladá Boleslav Mladá Boleslav District

conditions in the southern part of the BRIEF STATISTICS District, where a larger part of the arable Statutární město Mladá Boleslav Indicator District Region (Statutory Town of Mladá Boleslav) land is used for the growth of cereals and Area (in sq. km) 1 023 11 015 Komenského nám. 61 sugar-beet. Some agricultural plants even Population 118 693 1 181 374 293 49 Mladá Boleslav, Czech Republic grow vegetables on a larger scale. phone: +420 326 715 111 As of 31 December 2006, 25 499 Inhabitants/sq. km 116 107 fax: +420 326 322 572 economic entities were registered in the Unemployment rate (%) 2.88 5.04 e-mail: [email protected] District, 12.4 % of which were active in Source: Czech Statistical Office (as of 31 March 2007) www.mb-net.cz industry, 12.1 % in building, 4.1 % in agriculture, and 20.1 % in retail. Městské informační centrum The regional education system is (Municipal Information Centre) The Mladá Boleslav District lies in the represented by a network of primary and Železná 107, 293 01 Mladá Boleslav northernmost part of the Region. The secondary schools and training colleges. phone/fax: + 420 326 322 173 Jizera River divides the District from north A college and university can be found e-mail: [email protected] to south into two. The District is here, both specialising in economics. http://is.mb-net.cz administratively divided into 120 municipalities, 8 of which have the status of towns. 67.2 % of the District’s inhabitants live in towns. The remainder of the inhabitants live predominantly in small villages. The centre and the largest town is Mladá Boleslav, where 37.7 % of the District’s inhabitants are concentrated. In the past, the economic development of the District was largely determined by its geographical location. Whilst in the north, the textile, paper, and metalworking industries developed, the southern territory was purely an agricultural area. As early as 1895, the joint-stock company for the automobile industry in Mladá Boleslav was founded, and began transforming into the current Škoda Auto, a.s. which has concentrated on the production of automobiles. At present this factory has nation-wide significance. Due to this automobile Centre of Mladá Boleslav company, the Central Bohemia Region records the highest revenues from SELECTED FIRMS industrial activity in the Republic and Name Based in Sector Contact holds a dominant position among the Carborundum Electrite, a.s. Benátky nad Jizerou engineering www.carborundum.cz regions as regards the total volume of Bostas, s.r.o. Mladá Boleslav engineering construction www.bostas.cz exported goods. Also thanks to this Abrasiv, a.s. Mladá Boleslav production of abrasive www.abrasiv.cz company, many other large employers materials connected to the automobile industry are Dehtochema Bitumat, a.s. Bělá pod Bezdězem isolation materials www.dehtochema.cz active. Lipraco, s.r.o. Kosmonosy metalworking www.lipraco.cz Intensive agricultural plant production Papírny Bělá, a.s. Bělá pod Bezdězem cardboard, paper www.papirny-bela.cz Cukrovary TTD, a.s. Dobrovice sugar factory www.cukrovaryttd.cz benefits from the excellent manufacturing

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Delphi International Holdings Corp. USA Delphi Czech Republic, k.s. electronics www.delphi.com Faurecia France Faurecia Exhaust Systems, s.r.o. exhaust systems www.faurecia.cz Volkswagen Group Germany Škoda Auto, a.s. automobile industry www.skoda-auto.cz Wagon S. a.r.l. Luxembourg Wagon Automotive, s.r.o. automobile industry www.wagon-gmbh.de TRW Automotive GmbH Germany TRW Carr, s.r.o. car accessories www.trw.cz RECTICEL HOLDING NOORD B.V Netherlands Recticel Interiors CZ, s.r.o. car accessories www.recticel.com Bilsing Automation GmbH Germany Bilsing Automation Czech,s.r.o. production automation www.bilsing.cz FIAMM S.P.A Italy Akuma, a.s. car batteries www.akuma.cz Regional Office of the Central Bohemia Region Behr GmbH & Co.KG Germany Behr Czech, s.r.o. automotive air conditioning www.behr.de KOMATSU UTILITY EUROPE S.P.A Italy STAVMEK, s.r.o. building machines www.komatsu.europe.com Photo:

| 18 CZECH BUSINESS AND TRADE

Mělník District Mûlník

and vegetable production is of BRIEF STATISTICS importance. It is also the only area in the Městský úřad Mělník Indicator District Region Central Bohemia Region where grape- (Mělník Municipal Office) Area (in sq. km) 701 11 015 Náměstí Míru 1 vines are grown on a larger scale. As of Population 96 378 1 181 374 276 01 Mělník 31 December 2006, 22 177 economic Inhabitants/sq. km 137 107 Czech Republic entities were registered in the District, phone/fax. :+420 315 635 111 14.5 % of which were active in building, Unemployment rate (%) 6.32 5.04 13 % in industry, 7 % in agriculture, and Source: Czech Statistical Office e-mail: [email protected] (as of 31 March 2007) www.melnik.cz almost 17 % in retail. The area around the town of Mělník offers many significant cultural century, as well as the chateaux in monuments. The most visited is the Nelahozeves, Liblice, Liběchov, Mělník, The Mělník District lies in the northern Kokořín castle, dating back to the 14th and Veltrusy (www.pruvodce.com). part of the Central Bohemia Region and belongs to the smaller districts in the Region. The District is administratively divided into 69 municipalities, 7 of which have the status of towns. The centre of the District is the town of Mělník with 19 846 inhabitants, which lies directly on the confluence of the Labe and Vltava Rivers (www.melnik.cz). Other most populous towns are Kralupy nad Vltavou with 17 846 inhabitants (www.mestokralupy.cz) and Neratovice (www.Neratovice.cz) with 16 450 inhabitants. The remaining towns have less than 3 000 inhabitants. 63 % of the District’s inhabitants live in towns. Among the key industries, in addition to chemical production, are energy and food industries. The area around the town of Mělník belongs to the agricultural producers of Central Bohemia. Alongside the traditional branches of agriculture, fruit

Nelahozeves Chateau

SELECTED FIRMS Name Based in Sector Contact ČEZ, a.s. Horní Počáply energy www.cez.cz Spolana, a.s. Neratovice chemical industry www.spolana.cz Vitana, a.s. Byšice food industry www.vitana.cz F&N dodavatelé, s.r.o Jiřice food industry www.fansladidla.cz Bratři Horákové s.r.o. Lužec nad Vltavou cooling and food industry www.horak-bros.com Patron Bohemia s.r.o. Mělník production of children’s prams www.patron-bohemia.cz Česká rafinérská, a.s. Kralupy nad Vltavou crude oil processor www.crc.cz ATMOS Engineering , s.r.o. Neratovice compressors www.kompresory.cz Verner Trade s.r.o. Neratovice transport of bulk cargo www.verner-trade.cz The symbol of Mělník – chateau and vineyard above the confluence of the Labe and Vltava Rivers

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact FIRMA CHEMICZNA "DWORY" S.A. Poland Kaučuk, a.s. chemical industry www.kaucuk.cz Erwin Junker Holding, GmbH Germany Erwin Junker, a.s. grinding machines www.junker.cz

Danzer Anlagen Bet., GmbH Germany Danzer Bohemia-Dýhárna,s.r.o. wood production www.danzer.cz ional Office of the Central Bohemia Region Thimm Verpackung GmbH + Co. Germany THIMM Obaly, k.s. paper packaging www.thimm.cz Brooke Bond South India Estates Limited United Kingdom Unilever ČR, s.r.o. food production www.unilever.cz Photo: Reg

19 | REGION

Kolín District Kolín

Kolín–Ovčáry with the TPCA (Toyota BRIEF STATISTICS Městský úřad Kolín Peugeot Citro¨en Automobile, s.r.o.) Indicator District Region (Kolín Municipal Office) producer of small cars as the dominating Area (in sq. km) 744 11 015 Karlovo nám. 78 factory. 280 12 Kolín Intensive agricultural plant production Population 91 510 1 181 374 Czech Republic benefits from the excellent manufacturing Inhabitants/sq. km 123 107 phone: +420 321 748 111 conditions in the Labe River basin, with the Unemployment rate (%) 6.03 5.04 fax: +420 321 720 911 larger part of the arable land being used for Source: Czech Statistical Office e-mail: [email protected] the production of cereals, with another (as of 31 March 2007) www.mukolin.cz significant product being sugar-beet. Some farming businesses even grow fruit and District. Prevailing are activities in industry vegetables on a larger scale. and building with an equal share of around The Kolín District lies in the eastern part of As of 31 December 2006, 21 373 15 %, 6 % being active in agriculture and the Central Bohemia Region in the basin of economic entities were registered in the 12 % in retail. the Labe River. The river runs through the District in the length of 24 km and the fertile Labe lowland can be found in its surroundings. The District is administratively divided into 89 municipalities, 6 of which have the status of towns. More than half of the District’s inhabitants live in towns. The largest town is Kolín with 31 500 inhabitants (www.mukolin.cz), the second largest is the town of Český Brod (www.cesbrod.cz), with the remaining towns having less than 5 000 inhabitants. The most significant industrial centre is the town of Kolín, where the engineering, electrical, printing, chemical, and food industries are represented. An important industrial centre is located in the micro- region of Pečky, where the engineering industry is concentrated. A turning point in the economic potential of the Dstrict has been the construction of the industrial zone of

Městské informační centrum (Municipal Information Centre) Na Hradbách 157 280 12 Kolín 1 phone/fax: +420 321 712 021 e-mail: [email protected] Historic centre of Kolín

SELECTED FIRMS Name Based in Sector Contact S.A.F. Praha Přišimasy metal surface treatment www.saf.cz Kopos Kolín, a.s. Kolín electro-installation materials www.kopos.cz Frigera Metal, a.s. Kolín cooling devices www.frigera.cz ZPA Pečky, a.s. Pečky automated systems www.zpa-pecky.cz Alico, spol. s r.o. Kolín abrasive materials www.alico.cz J.M.Kapa, s.r.o. Kolín metal manufacturing www.jmkapa.cz Delta Engineering Kolín, s.r.o. Kolín engineering www.deltaeng.cz Lučební závody Draslovka, a.s. Kolín chemical production www.draslovka.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Lonza Group, A.G. SwitzerlandLonza Biotec, s.r.o. pharmaceuticals www.lonzabiotec.cz The Stanley Works USA Tona, a.s. tools www.tona.cz

Toyota Motor Corp., egional Office of the Central Bohemia Region Peugeot Citroen Automobile S.A. Japan, France TPCA Czech, s.r.o. automobile production www.tpca-cz.com William King Limited Mitsui & Co., Ltd. United Kingdom, Japan Mi - King s.r.o. steel service centre www.mi-king.cz Photo: R

| 20 CZECH BUSINESS AND TRADE

Nymburk Nymburk District

The production of cereals, sugar-beet, BRIEF STATISTICS Městský úřad Nymburk vegetables and fruit is traditional. Indicator District Region (Nymburk Municipal Office) As of 31 December 2006, 20 169 Area (in sq. km) 850 11 015 Náměstí Přemyslovců 163 economic entities were registered in the 288 28 Nymburk District, 15 % of which were active in Population 87 157 1 181 374 Czech Republic industry, 13.7 % in building, 7 % in Inhabitants/sq. km 102 107 phone: +420 325 501 111 agriculture and forestry, and 16.8 % in Unemployment rate (%) 7.21 5.04 fax: +420 325 514 283 retail. Source: Czech Statistical Office e-mail: [email protected] (as of 31 March 2007) www.mesto-nymburk.cz

SELECTED FIRMS The Nymburk District is situated in the Name Based in Sector Contact eastern part of the Central Bohemia Pivovar Nymburk, Region in the Labe lowlands. spol.s.r.o. Nymburk food industry www.postriziny.cz The District is administratively divided Sklárny Bohemia, a.s. Poděbrady glass industry www.sklarny-bohemia.cz into 87 municipalities, 6 of which have Cadence Innovation, k.s. Nymburk car accessories www.peguform.cz the status of towns. 55% of the Lázně Poděbrady, a.s. Poděbrady spa treatment www.lazne-podebrady.cz District’s inhabitants live in towns. The ŽOS, a.s. Nymburk engineering www.zos.cz largest towns are Nymburk with 15 079 Temac, a.s. Zvěřínek plastic products www.temac.cz inhabitants and Poděbrady with 13 180 Savas, spol. s r.o. Městec Králové cement products www.savas.cz inhabitants (www.mesto-podebrady.cz). Building SP, spol. s r.o. Nymburk production of building www.bulding.sp.cz The town of Poděbrady is especially materials known for its spa industry. Diseases of the JDK, s.r.o. Nymburk cooling technology www.jdk.cz heart, digestive tract, and of the PolyComp, a.s. Poděbrady boilers www.polycomp.cz locomotive organs are treated here. The town has a well-built spa area, where chateaux dating back to the 13th century can be found (www.polabskemuzeum.cz). Engineering and building form the District’s principal industries. Of advantage for the building companies are the natural sand quarry resources. The food industry, electrical industry, and glass industry are also represented here. The Nymburk agricultural production is of great significance to the entire Central Bohemia Region. Nymburk ranks among the Region’s principal districts regarding the intensity of agricultural production. Agricultural land forms 70 % of the District’s area, 92 % of which is farmed.

Městské informační centrum (Municipal Information Centre) Budova městského úřadu (Municipal Office Building) Nám. Přemyslovců 163, 288 28 Nymburk phone: +420 325 501 104 fax: +420 325 512 433 e-mail: [email protected] www.mesto.nymburk.cz Chateau on the Labe River bank in Poděbrady

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Meyra Germany Meyra ČR, s.r.o. production of sanitary goods www.meyra.cz Parker Hannifin Holding GmbH Netherlands Parker-Hannifin, s.r.o. plastic products www.parker.com

Maschinenfabrik Niehoff GmbH & Co.KG Germany Maschinenfabrik NIEHOFF (CZ) engineering www.niehoff.cz egional Office of the Central Bohemia Region Fresenius Kabi Aktiengesellschaft Germany Fresenius HemoCare CZ s.r.o., medical instruments www.fresenius.cz Sichuan Changhong Electric Co., LtdChina Changhong Europe Electric s.r.o plasma screens www.changhong.com Photo: R

21 | REGION

Kutná Hora District Kutná Hora

The District's character is shaped by BRIEF STATISTICS Městský úřad Kutná Hora agriculture and industry. In the past, the Indicator District Region Kutná Hora District did not belong to (Kutná Hora Municipal Office) Area (in sq. km) 917 11 015 Havlíčkovo náměstí 552 the industrial areas of Central Bohemia, Population 74 607 1 181 374 284 24 Kutná Hora as there used to be more agricultural Inhabitants/sq. km 81 107 Czech Republic production. The level of agricultural phone/fax: +420 327 710 111 production still makes the District one of Unemployment rate (in %) 7.95 5.04 the more advanced in the Region. The Source: Czech Statistical Office e-mail: [email protected] (as of 31 March 2007) www.mukutnahora.cz production consists of beets, corn, and potatoes. There is some machine- building industry now, as well as the registered economic subjects in the food-processing, glassmaking, and District as of 31 December 2006. The The Kutná Hora District is situated on tobacco industries. Industrial businesses dominant activities are: 15 % in industry the northern borders of the are centered in areas with a denser and building, 8 % in agriculture and Českomoravská vysočina Highlands, population. There were 16 372 forestry, and 17.2 % in retail. There are many cultural landmarks of great historical value in the Kutná Hora District. Kutná Hora was home to the country's treasury in the 14th and 15th centuries and people from all around Europe were coming to work in its silver foundries and mines. The historical downtown is a state landmark preserve and the town is listed in the UNESCO World Cultural and Natural Heritage List (http://ftp.czechtourism.com/unesco/ index_cz.html).

Kutná Hora is on the UNESCO list of the world cultural heritage between the central parts of the Sázava and Labe Rivers. There are 88 SELECTED FIRMS municipalities, 4 of which are statutory Name Based in Sector Contact towns (www.obce.cz). The biggest Variel, a.s. Zruč nad Sázavou packaging www.variel.cz towns are Kutná Hora (www. AMBA, s.r.o. Malín office furniture www.amba.cz kutnahora.cz) and Čáslav (www. Triant, s.r.o. Kutná Hora stylish furniture www.triant.cz caslav.cz) with 21 850 and 10 074 Stavex, s.r.o. Kutná Hora wood constructions www.stavex.cz Gramex, s.r.o. Kutná Hora car seats www.gramex.cz inhabitants respectively.

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Interplane USA Interplane, s.r.o. aviation www.interplane.com

ASMO CO. LTD Japan Asmo Czech, s.r.o. autoparts www.asmo.cz egional Office of the Central Bohemia Region Goldbeck GmbH Germany Goldbeck Prefabeton, s.r.o. concrete structures www.prefabeton.cz Philip Morris International USA Philip Morris ČR, a.s. tobacco products www.philipmorris.cz Photo: R

| 22 CZECH BUSINESS AND TRADE

Benešov District Bene‰ov

important producer of potatoes and corn. BRIEF STATISTICS Mětský úřad Benešov There is a tradition of forestry and hunting. Indicator District Region (Benešov Municipal Offfice) The most prominent cultural landmarks Area (in sq. km) 1 475 11 015 Masarykovo nám. 100 are, without question, the Konopiště 256 01 Benešov, Czech Republic chateau (www.zamek-konopiste.cz), Český Population 91 889 1 181 374 phone: +420 317 754 111 Šternberk gothic castle (www. Inhabitants/sq. km 62 107 fax: +420 317 721 256 hradceskysternberk.cz), and the Jemniště Unemployment rate (in %) 3.87 5.04 e-mail: [email protected] (www.jemniste.cz), Komorní Hrádek, and Source: Czech Statistical Office www.benesov-city.cz Líšno castles. (as of 31 March 2007)

The Benešov District is situated in the southern part of the Central Bohemia Region on the borders of central and southern Bohemia. The District's terrain is broken and woody with many ponds. A part of the District's natural northwestern border is formed by the Vltava River (up to the Slapy dam) and the influent Sázava River in the east. The Slapy dam, with its 1 390 hectares, is not only a reservoir for supply water but also one of the most prominent recreation centres for both groups and individuals in Central Bohemia. The Švihov dam, with 1 400 hectares, serves as a drinking water reservoir. In the southern part of the area around Benešov, there is the Blaník protected landscape area with a surface of 4 000 hectares. The size of the District makes it the second largest in the Region, while the population density places it among the least populated districts. There are 115 municipalities, 8 of which are statutory towns. The biggest are Benešov (www.benesov-city.cz) and Vlašim (www.mesto-vlasim.cz) with 16 260 and Konopiště Chateau ranks among the prominent cultural monuments of the Benešov area 12 200 inhabitants respectively. There are less than half as many inhabitants in all the other towns. The area around Benešov SELECTED FIRMS benefits from its proximity and good Name Based in Sector Contact transport accessibility from the capital of Jawa Divišov, a.s. Divišov motorycle production www.jawa.cz Prague. It is also, along with the two Metaz, a.s. Týnec nad Sázavou machine building, foundry www.metaz.cz Prague districts, the most active Sellier & Bellot, a.s. Vlašim machine building www.sellier-bellot.cz entrepreneurial district in the Region and Baest, a.s. Benešov machine building www.best.cz the whole country. The population is mostly Pivovar Benešov, s.r.o. Benešov beer brewing www.pivovarferdinand.cz employed in industrial production. The Mašek Packaging, s.r.o. Vlašim packaging machines www.masek.cz most significant industries are machine- Krusis, s.r.o. Týnec nad Sázavou briquetting machines www.krusis.cz building, metalworking, metallurgy of Matra Transport, a.s. Benešov logistics www.matratrans.cz nonferrous metals, electrical, and food- Sklárny Kavalier, a.s. Sázava glass production www.kavalier.cz processing. The following industries are Rabbit CZ, a.s. Trhový Štěpánov food processing www.rabbit.cz also represented: building materials, wood Pinko, a.s. Benešov food processing ww.pinko.cz processing, glassmaking, printing, and Triapex Export, s.r.o. Vlašim packaging machines www.tiapexexport.cz Velteko CZ, s.r.o. Vlašim packaging machines www.velteko.cz paper-making. The District is also an

FOREIGN INVESTORS egional Office of the Central Bohemia Region Investor Country of origin Czech partner Sector Contact Danone Group France Danone, a.s., závod Benešov food processing www.danone.cz Photo: R

23 | REGION

Prague- Prague-East District East

This district has an industrial character. BRIEF STATISTICS Městský úřad Brandýs nad There is a tradition of mechanical Labem–Stará Boleslav engineering production and the treatment Indicator District Region (Brandýs nad Labem–Stará Boleslav of non-ferrous metals. There is also Area(sq. km) 755 11 015 Municipal Office) a concentration of scientific research Population 122 278 1 181 374 Masarykovo nám. 1 institutions. The Nuclear Research Institute Inhabitants/sq. km 162 107 250 01 Brandýs nad Labem–Stará Boleslav Czech Republic in Řež is one of the significant employers. Unemployment rate (in %) 2.1 5.04 phone: +420 326 909 111 The food industry is also present. In the Source: Czech Statistical Office fax: +420 326 902 555 northern and southern part of the District (as of 31 March 2007) e-mail: [email protected] lie fertile agricultural areas, where sugar www.brandysko.cz beet is mainly grown. The vicinity of the 29 849 economic entities registered in the capital is also favourable for large retail District. 12.7 % of them are active in the The Prague-East District surrounds the chains, which have their headquarters in industrial sector, 11.7 % in the building capital of Prague from the East and as with this district. sector, 3.5 % in agriculture and forestry, the Prague-West District, it forms its As of 31 December 2006, there were and 16.7 % in retail. hinterland. Together with Prague, these two districts, which enclose the capital in their centre, form the Central Bohemia agglomeration and are a source of labour for the capital. They supplement Prague industry, the building industry and services, they supply Prague with victuals and they provide recreational potential. The area of the Prague-East District makes it one of the smallest districts in the Region, but it is among those with the highest population density. The District consists of 110 municipalities, 9 of which are towns. The largest are Brandýs nad Labem-Stará Boleslav (www.brandysko.cz) with 15 520 citizens, Říčany (www. ricany.cz) with 10 663 citizens, and Čelákovice (www.celakovice.cz) with 10 000 citizens. Other towns have less than 5 000 inhabitants. 50 % of the district inhabitants live in towns. The Brandýs nad Labem-Stará Boleslav twin town is the largest in the District

SELECTED FIRMS Name Based in Sector Contact Strojmetal, a.s. Kamenice metal production www.strojmetal.cz TOS Čelákovice, a.s. Čelákovice metalworking machinery www.toscelakovice.cz Reparo, s.r.o. Kamenice wood-processing machinery www.reparo.cz Solomat,s.r.o. Veleň packaging www.solomat.cz CZ Tech, s.r.o. Čelákovice machine tools www.cztech.cz Ústav jaderného výzkumu, a.s. (Nuclear Research Institute plc) Řež nuclear research www.ujv.cz Contax, s.r.o. Hovorčovice wood-processing machinery www.supra-contax.com Alutec K&K, s.r.o. Nehvizdy mechanical engineering www.aluteckk.cz Euroimpex CZ, s.r.o. Klecánky plastic products www.euroimpex.cz STM, s.r.o. Říčany wood-processing machinery www.stm.cz Pamax,s.r.o. Kamenice furniture manufacture www.pamax.cz Staviro, a.s. Čestlice building industry www.staviro.cz Cryometal, s.r.o. Říčany liquid nitrogen www.cryometal.cz Woodcomp, s.r.o. Odolena Voda airplane propellers www.woodcomp.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Boeing McDonel Douglas USA Aero Vodochody, a.s. aeronautics production www.aero.cz Euronova Holding Netherlands Ahold Czech Republic, a.s. supermarkets www.ahold.cz

Merck AG SwitzerlandMerck, spol. s r.o. chemical productionwww.merck.comegional Office of the Central Bohemia Region GRUPO ESTAMPACIONES SABADELL Spain Essa Czech, s.r.o. metal production www.grupoessa.es Siemens VDO Automotive AG Germany VDO Česká republika, s.r.o. measuring instruments www.siemens.cz Photo: R

| 24 CZECH BUSINESS AND TRADE

Prague-West District

Prague- West

79 municipalities, of which 9 hold the BRIEF STATISTICS Městský úřad Roztoky status of a town. Industrial production is Indicator District Region (Roztoky Municipal Office) present only to the extent of Area (sq. km) 581 11 015 Náměstí 5. května 2 supplementing standardised production Population 101 802 1 181 374 programmes; it covers a wide range of 252 63 Roztoky Inhabitants/sq. km 175 107 sectors, none of which can be considered Czech Republic Unemployment rate (in %) 1.8 5.04 characteristic for the District. Regarding phone: +420 400 211 Source: Czech Statistical Office fax: +420 400 233 sector division, these employers are active (as of 31 March 2007) e-mail: [email protected] in the mechanical engineering, non-ferrous www.roztoky.cz metallurgy, building materials production, 28 727 entities listed in the register of food industry, and the energy industry. The economic entities. Of this number, 12.9 % vicinity of the capital is advantageous also are active in the industrial sector, 11.1 % The Prague-West District surrounds the for many wholesale and retail firms who in the building industry, 3.3 % capital of Prague from the west, shaped have their headquarters here. in agriculture and forestry, and 15 % in like a thin crescent. The District consists of As of 31 December 2006, there were retail.

SELECTED FIRMS Name Based in Sector Contact Safina, a.s. Jesenice treatment of non-ferrous metals www.safina.cz Farbe Bohemia, s.r.o. Rudná u Prahy chemistry for construction www.farbebohemia.cz Ferring-Léčiva, a.s. Jesenice medicines www.ferring.cz Biopharm, a.s. Jílové u Prahy veterinary medicines www.biopharm.cz Mucos Pharma CZ, s.r.o. Průhonice medicines www.mucos.cz Kvartex, s.r.o. Mníšek pod Brdy exothermical mixtures for metallurgy www.kvartex.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact FIC FIRST Int..Holding, B.V. Netherlands FIC CZ, s.r.o. information technologies www.fic.cz FM Logistic France FM Česká, s.r.o. logistics www.fmlogistic.com Vaillant GmbH Germany Vaillant Group Czech ,s.r.o. production of electrical boilers www.protherm.cz

Kladno District Kladno

District's population live in the town of Kladno. BRIEF STATISTICS Statutární město Kladno Development of the Kladno District has Indicator District Region (Statutory Town of Kladno) been mostly influenced by the coal-mining Area (in sq. km) 720 11 015 Náměstí Starosty Pavla 44 and metallurgy industries. Besides mining Population 153 785 1 181 374 272 52 Kladno and metallurgy, there is a tradition in the Inhabitants/sq. km 214 107 Czech Republic electrical, machine-building, and food- Unemployment rate (in %) 7.16 5.04 phone: +420 312 604 111 processing industries. Source: Czech Statistical Office (as of 31 March 2007) fax: +420 312 240 540 31 053 economic subjects were e-mail: [email protected] registered as of 31 December 2006. Of construction, 3.7 % in agriculture, and 17.6 % www.mestokladno.cz those 12 % were in industry, 12.8 % in in retail. SELECTED FIRMS Name Based in Sector Contact With 100 municipalities, 8 of which are Strojírny Poldi, s.r.o. Kladno machine building www.strojpoldi.cz. Beznoska, s.r.o. Kladno health care implants www.beznoska.cz statutory towns, it is one of the most Velvana, a.s. Kladno chemical industry www.velvana.cz populated districts in the Region. 47 % of the Ryor, a.s. Unhošť cosmetics www.ryor.cz Linet, a.s. Slaný health care equipment www.linet.cz FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact LEGO A/S Denmark Lego Production, s.r.o. toys www.lego.om Barco Holding, B.V. Netherlands Barco Manufacturing, s.r.o. electrotechnics www.barco.com Furukawa Electric Co., Ltd. Japan Furukawa Electric Autoparts C.E., s.r.o. electrotechnics www.furukawa.com Mitsubishi Electric Corp. Japan Mitsubishi Electric Automotive Czech, s.r.o. electrotechnics www.mitsubishi.cz

25 | REGION

Příbram District Pfiíbram

the country as regards the water content. BRIEF STATISTICS Městský úřad Příbram The Příbram district is the most forested area Indicator District Region of the Region. There are 121 municipalities (Příbram Municipal Office) Area (sq. km) 1 692 11 015 in the District, of which 7 are towns. The Tyršova 108 Population 110 333 1 181 374 largest is Příbram with 36 901 inhabitants 261 19 Příbram, Czech Republic Inhabitants/sq. km 65 107 and Dobříš (www.mestodobris.cz), the other Phone: +420 318 402 211 Unemployment rate (in %) 6.59 5.04 towns’ population does not exceed 5 000 Fax: +420 318 631 014 Source: Czech Statistical Office e-mail: [email protected] inhabitants. (as of 31 March 2007) www.pribram-city.cz As of 31 December 2006, there were 26 603 registered economic entities. Of this sector, 13.4 % in the building industry, 7.6 % number, 14.6 % are active in the industrial in agriculture and forestry, and 17 % in retail.

The Příbram District lies in the south- SELECTED FIRMS western part of the Central Bohemia Name Based in Sector Contact Region. Its area makes it one of the largest Karsit, s.r.o. Příbram car industry www.karsit.cz Ravak, a.s. Příbram bathroom furnishings www.ravak.cz districts in the Region; it takes up 14.8 % of Kovohutě, a.s. Příbram metallurgy www.kovopb.cz its area. ZAT, a.s. Příbram electronic equipment www.zat.cz The Vltava River runs through the District York, spol.s r.o. Dobříš metal-working www.york.com and divides it into two unequal parts. There KDS Sedlčany, v.d. Sedlčany metal-working www.kds.cz are two dams on the river – Orlík and Techkon, s.r.o. Příbram sorting and screening machinery www.techkon.cz Kamýk. The Orlík Dam is the largest dam in TEN ART, s.r.o. Příbram baker’s machinery www.tenart.cz FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Bongrain Europe France Povltavské mlékárny, a.s. food industry www.povltavskemlekarny.cz Disa Holding AG Switzerland Disa Industries, s.r.o. mechanical engineering www.disagroup.com Kostal B.GmbH Germany Kostal CR, s.r.o. automobile electronics www.kostal.com Duve Group Germany Duve ČR, s.r.o. manufacture of automobile bodies www.duve.de BARLO IRG PLASTICS N.V. Belgium Quinn Plastics, s.r.o. artificial glass production www.quinn-plastics.com Bobcat Europe USA Bobcat CZ, a.s. construction machinery www.bobcat.com

Rakovník District Rakovník

The Rakovník District is known for its BRIEF STATISTICS Městský úřad Rakovník chemical and ceramic industries. The Indicator District Region (Rakovník Municipal Office) chemical industry is represented by the Area (in sq. km) 896 11 015 Husovo nám. 27 production of washing powders and Population 53 013 1 181 374 269 01 Rakovník, Czech Republic detergents; the ceramic industry produces Inhabitants/sq. km 59 107 phone: +420 313 259 111 tiles. Unemployment rate (in %) 5.79 5.04 fax: +420 313 517 302 As of 31 December 2006, there were Source: Czech Statistical Office (as of 31 March 2007) e-mail: [email protected] 11 524 economic entities registered. Of this www.mesto-rakovnik.cz number, 12.9 % are active in industrial in agriculture and forestry, and 16.2 % in sectors, 11.8 % in building industry, 8.5 % retail. SELECTED FIRMS Name Based in Sector Contact The Rakovník District lies in the western part Brano Group, a.s. Rakovník automobile components www.brano.cz of the Central Bohemia Region. The District Královský pivovar Krušovice, a.s. Krušovice brewery www.krusovice.net consists of 83 municipalities, of which 2 hold Invera, s.r.o. Rakovník injection machines www.invera.cz the status of a town. The centre of the PQS Rakovník, s.r.o. Rakovník hydraulics www.pqs-rakovnik.cz District is the town of Rakovník, in which Hykom, s.r.o. Rakovník hydraulics www.hykom.cz 32 % of the inhabitants of the District live. LMT, s.r.o. Rakovník automatic machines www.lmtsro.cz FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact VALEO SYSTEMES THERMIQUES France Valeo Autoklimatizace, s.r.o. automobile industry www.valeo.com Procter & Gamble Eastern Europe, Inc. USA Procter & Gamble Rakona, s.r.o. chemical industry www.pg.com

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Beroun District Beroun

and medium industries, the majority of BRIEF STATISTICS Městský úřad Beroun which are concentrated in two areas: Indicator District Region (Beroun Municipal Office ) Beroun-Králův Dvůr and Hořovice- Area (in sq. km) 662 11 015 Husovo náměstí 68 Komárov. 266 43 Beroun There were 18 390 economic subjects Population 79 928 1 181 374 Czech Republic registered as of 31 December 2006. Of Inhabitants/sq. km 121 107 phone: +420 311 654 111 those 13.4 % were in industry, 13 % in Unemployment rate (in %) 4.3 5.04 fax: +420 311 621 242 construction, 18 % in retail, and 6.4 % in Source: Czech Statistical Office e-mail: [email protected], forestry and agriculture. (as of 31 March 2007) www.mesto-beroun.cz The area around Beroun has an amazing wealth of historical landmarks. The most famous is the Karlštejn castle, one of the The Beroun District is in the southwestern most significant monuments in the Czech part of the Central Bohemia Region, near Republic. There are also the castles of the capital of Prague. Its size and Žebrák and Točník, and the castle at population make it one of the smallest of Hořovice (www.pruvodce.com). the Region's twelve districts. The District is The area around Beroun, especially the situated almost symmetrically along the D5 Berounka River valley, is a much sought expressway from Prague to Plzeň, which recreation destination for the inhabitants splits it into two halves. of Prague, many of whom have weekend There are 85 municipalities, 6 of which houses there. Hořovice in the Beroun area are statutory towns. With its 17 590 inhabitants, Beroun is the biggest. It is also SELECTED FIRMS the District's administrative and cultural Name Based in Sector Contact centre. AXA CNC,stroje, s.r.o.. Hořovice machine tools www.axacnc.cz The District's undeniable advantage is Vápenka Čertovy schody, s.r.o. Beroun limestone processing www.lhoist.cz its proximity to the capital, as well as its Narex Bystřice s.r.o. Bystřice tools www.narexby.cz very good transport accessibility. UCB Contiprofile, s.r.o. Králův Dvůr metallurgy www.ucbconti.cz Beroun is an important centre of light RÜCKL CRYSTAL a.s Nižbor glassmaking www.ruckl.cz

FOREIGN INVESTORS Investor Country of origin Czech partner Sector Contact Kappa Packaging B.V. Netherlands Smurfit Kappa Czech s.r.o. tar paper production www.smurfitkappa.cz Heidelberg Cement Group Germany Českomoravský cement, a.s. cement production www.cmcem.cz United Technologies Luxembourg S.a r.l. Luxembourg Carrier Refrigeration Operation cooling equipment www.carrier-ref.cz Regional Office of the Central Bohemia Region Czech Republic s.r.o. Kostal B.GmbH Germany Kostal CR,spol. s r.o. electrical tools www.kostal.cz Photo:

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Starlight at Holiday Inn Brno

Holiday Inn Brno has been HOLIDAY INN IS THE FIRST AND THE ONLY FIVE-STAR HOTEL IN BRNO. HOW DID YOU a symbol of high quality and SUCCEED IN ACHIEVING THIS? professional approach since its Of course it was not a question of a day-to-day opening in 1993. The acquisition change and it took several years of hard work. In 2006, we completed the renovation of the of the fifth star crowned the lodging quarters. Within a matter of months modernisation of the hotel, the appearance of all five floors with 201 rooms changed completely during the full which involved an extension operation of the hotel. One of the steps on of the hotel foyer by a new the way towards reaching the highest level not only among hotels in Brno was the restaurant, a lounge, and other expansion of the variety of our services. The rooms for additional services. latest novelty is non-stop room service. The There was an expo here at the time, the hotel We asked Mojmír Putna, the quality of our hotel has also been commended was fully booked and it was running in regular by 7 annual prizes awarded by our chain operation. Regular hotel guests were hotel’s General Manager, what operator (IHG) during the 14 years of the restricted only to a small extent, some plans lay ahead for the future hotel's operation. presidents even had breakfast with other guests in the restaurant. of the hotel. AT THE END OF MAY THIS YEAR, YOUR HOTEL PARTOOK IN THE LOGISTICS WHAT ARE YOUR OBJECTIVES OF A MEETING OF THE PRESIDENTS FOR THE FUTURE? OF CENTRAL EUROPEAN COUNTRIES. We would like to partake in new trends in the HOW DID YOU MANAGE SUCH field in order to oblige the new customs and A DEMANDING EVENT? demands of our clients, which are gradually We had the honour to accommodate 5 of the changing as is our entire society and the life of 15 presidents attending the summit. It was each and every one of us. We will do our best a very difficult event, but thanks to the to ensure that as many guests as possible maximum professional efficiency of all leave our hotel with a good impression. After www.hibrno.cz employees of the hotel we managed it. all: every guest who stays with us can feel like Preparation also included security planning. a president.

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Tourism Steadily on the Rise

In view of its cultural and Most visitors come to Prague, of citizens of neighbouring states (mainly in natural wealth, the Czech followed by the Karlovy Vary and the the border regions) cross the border just to South Moravia Region. Several factors buy cheaper food and fuel, or their Republic has extremely good were responsible for the growth of foreign motivation may be a better paid job. prerequisites for the exchange income. Besides the higher For assessing tourism, of much greater development of tourism.From number of foreign tourists coming to the importance is the category of foreign CR, the most important causes were higher tourists, i.e. guests who spend at least one the international point of view, tourist spending and longer stays. The night in the CR. If, however, the foreign an important role is played also average length of the stays of foreign guest is accommodated with his/her by its geographical position in tourists in the first half of this year was relations or acquaintances, he/she will not the centre of Europe and its 4.1 days. In 2006, foreign exchange income be covered by the statistics of the Czech from tourism amounted to USD 5 billion. Statistical Office. The monitoring of the membership of the European This income is a significant contribution number of foreign tourists began in 1992, Union, which it joined on 1 May helping to reduce the country’s balance of and since then their number was growing 2004.In the first half of 2007, payments deficit. The importance of each year until 1999. This was followed by the number of foreign tourists tourism is documented by its share of the a period of stagnation or a moderate total value of Czech exports, which in 2005 decline. In recent years, incoming tourism visiting the Czech Republic amounted to 5.3 %. was negatively affected by the 2002 floods surpassed the 3 million mark. in the CR, the war conflict in Iraq, and the This is 4 % more than in the ONE IN EVERY EIGHT SARS epidemic (first half of 2003). CZECHS FINDS WORK The year 2004 marked a favourable turn same period last year. IN TOURISM in international tourism, which also Simultaneously, foreign exchange As many as 124 100 people (2.6 %) were manifested itself by the growth of income from tourism rose directly employed in tourism in 2006, and incoming tourism. In that year, 6.1 million by 9.1 % in comparison with the overall figure, including indirect foreign tourists visited the CR and they employment, was 611 400 (12.9 %). This were accommodated in hotels and other a comparable period in 2006, means that one in every eight people is tourist facilities. In the following years, the to USD 2.7 billion. employed in tourism or a related branch. flow of foreign tourists to the CR continued According to figures of the World Travel & to increase. In 2006, a record 6.4 million FOREIGN EXCHANGE INCOME FROM TOURISM AND EXPENDITURE ON TOURISM IN 2000 – 2006 Indicator (in USD billion) 2000 2001 2002 2003 2004 2005 2006 Foreign exchange income 3.0 3.1 2.9 3.6 4.2 4.6 5.0 Foreign exchange expenditure 1.3 1.4 1.6 1.9 2.3 2.4 2.7 Source: Czech National Bank Tourism Council and the number of tourists came to the CR. The estimates for tourists who visited the CR in 2006, the 2007 augur well for incoming tourism, tourist to tourism employee ratio is 10 to 1. forecasting an additional three-per cent The importance of tourism is continuously growth. This gradual increase is expected growing, and the number of people to continue also in future years. employed in the tourist trade can reasonably be expected to grow in future THE MOST FREQUENT years. The estimate is that in 2015, tourism VISITORS COME FROM in the CR will be employing directly a total GERMANY of 154 100 people. The most important source country for incoming tourism is Germany. German NOT ALL FOREIGNERS ARE tourists account for 25-30 % of total TOURISTS arrivals. Other important source markets Foreign visitors, i.e. all foreigners who cross are Great Britain, Italy, the USA, and the the border, are divided into two categories: Netherlands. Tourists spending more than one-day visitors and tourists. The Czech the average length of sojourns (4.1 days) in Republic is an important transit country, the CR are guests from Russia, followed by both in the North – South and the West – the Germans and the Dutch. On the other East directions, and vice versa. The number hand, the shortest visits are paid by tourists of foreign visitors is very high – in 2005 the from Lithuania, Austria, and Slovenia. total was 100.5 million persons. This high number of foreign visitors can be explained by the large proportion of one-day visitors, Hana Fojtáchová who do not always come to the Czech CzechTourism Republic only for reasons of travelling. It www.czechtourism.cz must be taken into account that a number (e-mail: [email protected])

Valdštejnská Garden in the historic centre of Prague Photo: CzechTourism

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Spa Resorts in the Czech Republic

WHAT CAN THE CZECH Spa cures are also REPUBLIC OFFER IN THE taken for prevention, AREA OF SPAS AND while at the same time BALNEOLOGY? the places afford a suitable The Czech Republic is rightly environment for improving people’s physical and mental considered a world power in the condition. In addition, ever area of spa resorts and more guests are attracted by balneology. There are more than complementary wellness and thirty watering places based on fitness programmes, relaxation, anti-stress and natural curative water resources special beautifying cures. All scattered all over its territory. this is augmented by the These spas are unique in that the professional approach of the natural curative waters are used attending personnel, competitive prices, and for the treatment of a large modern spa facilities, whose number of diseases and quality will satisfy even the disorders, from diseases of the most discerning clients. Carbonic bath in Luhačovice spa in South Moravia motoric, nervous, and breathing INTERESTING systems to skin diseases. PRODUCT Mariánské Lázně, which together form the Although the curative aspect Since the 1990s, when the Czech Statistical so-called West-Bohemian spa triangle. The continues to play the main role, Office began to monitor the number of number of curative mineral springs rising foreign tourists accommodated in spa from the ground in that region has no treatment is no longer the only facilities, the largest number of them arrived parallel in the world. The spring waters are reason why people like to visit in 2006. The number of spa tourists copied used for the treatment of diseases of the them. the changes in the number of all incoming digestive, motoric, circulatory, and foreign tourists to the CR; in 2000, arrivals breathing systems, metabolic disorders and showed a moderate decline, followed by gynaecological diseases. The charm and the a revival the following year. From the point of unique atmosphere of these watering view of the total number of incoming foreign places was discovered several centuries ago tourists, the year 2006 was also a record one. by renowned personalities, e.g. Goethe, Bach, Schiller, Beethoven, Chateaubriand, WEST BOHEMIA IS and Gogol. Today, too, many popular and THE LEADER outstanding personalities from the world of The most visited region, from the politics and culture can be met there. In balneological point of view, is the Karlovy Mariánské Lázně Spa, visitors will be Vary Region, which in 2006 attracted attracted by the unique neo-Baroque 273 681 foreign tourists. Located in the colonnade built in 1889. A unique region are the renowned spa towns of experience is attending musical and Karlovy Vary, Františkovy Lázně, and luminous productions at the modern Singing Fountain. Františkovy Lázně, the third tip of the West Bohemian spa triangle, FOREIGN GUESTS AT SPAS 1997 – 2006 with its splendid environment and classicist 340 000 architecture, is referred to as a gem among Bohemian spas. West Bohemian watering 306 391 places pride themselves on one world 290 000 primacy: the world’s first radon spa. Jáchymov Spa became famous for its unique treatment using thermal radioactive 240 000 228 110 springs, a method unique to this day on a world scale. In 2006, the spa marked the

190 000 centenary of its founding. The oldest, and at the same time one of the most modern spas in the Czech Republic 140 000 128 244 119 772 125 936 is Lázně Teplice Spa (www.lazneteplice.cz) in 117 635 131 476 123 242 the northwest of Bohemia, which specialises 114 975 98 054 in the treatment of the motoric, circulatory, 90 000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 and nervous systems. The first references of its curative springs go nearly two thousand years back. Source: Czech Statistical Office Photo: CzechTourism

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MORAVIA AND SILESIA The second most popular region attracting visitors to its spas is the Zlín Region, followed by the Olomouc Region. Lázně Jeseník Spa also has a world primacy: the world’s first hydrotherapy sanatorium was founded there in 1882. In the picturesque mountainous environment not far from Jeseník lies the lovely spa town of Karlova Studánka, a place with the purest air in Central Europe. Another spa which cannot be left out is Lázně Luhačovice, the largest Moravian spa specialising in the treatment of the respiratory and digestive tracts, metabolic disorders, and locomotive problems.

CENTRAL BOHEMIA Equally important is the Central Bohemian spa of Poděbrady. It is situated in fertile lowlands just 50 km from Prague. The spa is famous for its treatment of heart diseases.

Karin Šeligová CzechTourism www.czechtourism.com Exterior of the Kamenné lázně spa house in Teplice in northwest Bohemia

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