CCzzeecchh TTrraaddee FFooccuuss News from the Czech Commercial Offices in the United States / Summer 2016 Macroeconomic Data of the Czech Republic Czech Missions to the US in May Economic Briefs Investment Briefs TechCrunch Disrupt NYC 2016 Czech Streetcars Service the Streets of the U.S. Capital Czech-made Soccer Court Donated to DC United Academy Companies and Businesses Tradeshows and Exhibitions Czech Commercial Offices in the United States Business and Trade Websites

MACROECONOMIC DATA OF THE CZECH REPUBLIC

INDICATORS 2014 2015 Latest available data GDP (%, y-to-y) 2.0 4.2 3.0 Q1 ´16 Inflation (%, y-to-y) 0.4 0.3 0.4 May '16 Unemployment (%, y-to-y) 7.7 6.6 5.4 May '16 Industrial Production (%, y-to-y) 4.3 7.1 4.2 April '16 Exchange Rate CZK/USD (average) 20.7 24.6 23.9 May '16 Source: Czech Statistical Office

CZECH MISSIONS TO THE US IN MAY

The Czech Republic has, for the first time in history, sold more goods to the United States than to Russia. Thus, the U.S. has become the most important market outside of Europe for the Czech Republic. This affirms the long-standing and continuous work of many Czech companies that have decided to do business in the U.S.

To help increase the number of successful companies in the U.S. the Embassy of the Czech Republic in Washington, DC, organized a business mission to Charlotte, North Carolina, and Columbia, South Carolina, during the days of May 11-13. Companies ranging from IT, produce of beverages and food, office furniture, technology for elevators to sports equipment had meetings with the Chamber of Commerce in Charlotte, Home Trust Bank, K&L Gates, and McGuireWoods regarding business in North Carolina. Some of these companies are now thinking of returning to Charlotte to establish a company or a branch there. Charlotte is very popular among European firms. Hence, the European community in Charlotte is another attraction for Czech companies.

In Columbia, Deputy Minister of the Ministry of Foreign Affairs Miloslav Stasek and the companies met with Lieutenant Governor Henry McMaster and the Department of Commerce. In Charlotte and Columbia the companies were also accompanied by Czech energy officials who were interested in U.S. experiences in smart grids. Energy officials spent two days in Washington, D.C., before traveling to Charlotte, where they met federal agencies involved in management and innovation in electricity networks.

Czech Trade Focus © 1 SUMMER 2016 The Czech Republic wants to improve its citizens´ e-skills and better manage its public services (e-gov). That is also the reason why the Speaker of the House of the Czech Parliament Jan Hamacek, together with the Chairman of the Economic Committee Ivan Pilny, brought around 20 Czech tech companies in May to Washington, D.C., to speak with GE, Honeywell, Apple, Google, and the FAA about technologies such as cashless payments, drones, car-to-car communication or the Internet. Since some participating firms are considering opening business in the U.S., they were also interested in learning about the economic situations in Fairfax County, VA, San Francisco and Chicago where they met with federal agencies involved in management and innovation in electricity networks.

ECONOMIC BRIEFS

Prague has become one of the most construction companies and many an association that compares popular destinations among are looking forward to the summer economic buying power, cost of Airbnb travellers. More than of 2016 as the largest project of its rent, cost of food and other 10,000 people in the Czech kind gets underway – an initiative services with the cost of living in Republic are currently offering to repair or renovate the country’s New York. their rooms or flats for rent via the train stations many of which will Airbnb home-rental site, which is need a lot more than a new paint. Miners in underground mines may an 86 percent increase on the Roughly 60 of the country’s most- be able to retire seven years previous year, the economic daily used railway stations will need to earlier than other workers, that is E15 reported. According to the be renovated and in 2016 alone at the age of 56 years now, data provided by Airbnb, Czechs half-a-billion crowns (20.9 million according to proposed changes in accommodated some 362,000 USD) will go into their repair. In an amendment to pension guests in 2015. The most popular the next five years, an additional insurance that the Chamber of destination among Airbnb 2.5 billion crowns (104.3 million Deputies, the lower house of Czech travellers is London, followed by USD) will be spent. parliament, passed on May 4. The Paris in the second place. Prague bill must yet be approved by the shares third spot with Rome and Czech consumers are increasingly Senate, the upper house, and Barcelona. Most of the shopping online, with overall signed by President Milos Zeman. accommodation offers, more than revenues predicted to reach almost 7,000, are in the Czech capital. CZK 100 billion (4.2 billion USD) Train travel between the two The second most popular town is this year. What’s more, though largest Czech cities, Prague and Liberec, followed by Karlovy Vary Czechs currently lag behind some Brno, should be faster starting in and Brno. nations in this respect, they are December. Planned changes will using their mobile phones to carry shave five minutes off that journey, The Czech Republic’s economic out purchases ever more often. while rail links between the capital growth accelerated substantially Online retailers in the Czech and Ceske Budejovice will speed and was mainly fueled by the Republic saw an 18 percent year- up even more. manufacturing sector. on-year upswing in receipts in the first quarter of 2016. Growth was 9 The town of Humpolec, in the percent lower than in the final This summer will see the largest Czech-Moravian highlands, has quarter of 2015. renovation project of its kind in come first in an annual competition the Czech Republic – the called Mesto Pro Byznys (Best renovation of the country’s main High economic buying power Town for Business) organized by train stations, many in marked together with the low cost of living the weekly Ekonom, published by disrepair. Construction contracts makes the Czech Republic ninth Economia. This year, the eighth are worth an estimated three billion country with the easiest way of inception saw 205 towns and cities crowns (125.2 million USD) or life and one of the cheapest in take part. more. Last year was rated as a regards to cost of living. This was good one for many Czech determined by GoBankingRates,

Czech Trade Focus © 2 SUMMER 2016 INVESTMENT BRIEFS

In coming years, the company Engineering & Quality Manager polyclinic and CZK 40m (1.7 Trinecke Zelezarny will invest Pavel Kafka has told CIANEWS million USD) in the repair of CZK 12bn (500.7 million USD) that Changdong’s activity is urology operating rooms in 2016. into development. CZK 2bn (83.5 expanded to the pre-production These reconstruction projects will million USD) of this total will be phase with the centre’s opening. be partially covered from subsidies invested into environmental The goal is to participate on the from the founder. Further, the improvements. In 2015 it reduced development of new products for hospital will replace devices at the volume of dust to 310 tons per the European market. Besides clinics from its own resources. For year with a steel production developing the centre gradually, CIANEWS, this information was volume of 2.5m tons. The company the company wants to focus on the provided by marketing and PR declared a reduction in dust by improvement of after-sales department head Ludmila roughly one third. General services. The services were Simackova, who added that this manager Jan Czudek said that the previously secured by contractual year’s personnel costs should be actual y/y drop in dust is 45 %. partners, while newly the company 4% higher (by CZK 125m, 5.2 wants to insource as much of the million USD). The hospital Chinese LCD TV set manufacturer services as possible. currently lacks 90 nurses, while Changhong opened its European there are enough physicians. research and development (R&D) Motol University Hospital will centre in the Czech-Chinese invest CZK 311m (12.9 million industrial zone in Nymburk. USD) in the reconstruction of a

TECHCRUNCH DISRUPT NYC 2016

New York City was the scene of one of the most important events for start-ups in the world, the TechCrunch Disrupt 2016. Thanks to economic diplomacy, several Czech start- ups, which are seeking partners for expansion and financing for the development of their products or services, were able to take part in the three day conference held on May 9-11.

The Consulate General of the Czech Republic in New York in cooperation with the Czech ICT Alliance and CzechInvest supported the participation of the four Czech startups, Agent Balance, Clever Monitor, Databreakers and Sourcy, at the prestigious conference. These Czech companies presented a diverse range of technological innovation, such as sophisticated contact management, direct marketing, data analysis and prediction as well as better control of social media.

"It is not easy to succeed in the highly competitive US market. The opportunity to find a strong partner to help Czech startups with their quality products is therefore very important and TechCrunch is, in this respect, a unique platform," said Martin Dvorak, the Consul General of the Czech Republic in New York.

Visitors were also able to obtain general information about the Czech ICT and the Czech Republic’s investment environment at the information booth of the Czech Republic, where the Economic Counsellor of the Consulate General of the Czech Republic in New York City and representatives of CzechInvest were available for discussion.

Czech Trade Focus © 3 SUMMER 2016 CZECH STREETCARS SERVICE THE STREETS OF THE U.S. CAPITAL

After more than 50 years, streetcars have returned to Washington, DC, with three Czech made vehicles linking neighborhoods and offering modern convenience along a 2.4 mile long track between H Street and Benning Road in Northeast.

The long-awaited line was opened during a special ceremony on Saturday, February 27, 2016. Ambassador of the Czech Republic to the United States Petr Gandalovic joined Mayor of the District of Columbia Muriel Bowser, US Congresswoman Eleanor Holmes Norton and US Congressman Earl Blumenauer as well as several hundred eager onlookers in the newly revitalized commercial district on the corner of H and 13 Streets.

The Czech company Inekon manufactured the three streetcars TRIO. The Czech Embassy has been closely involved with the DC Department of Transportation (DDOT) since the streetcars were brought over to the US from the Czech Republic, with representatives even present at their arrival in the port of Baltimore in December 2009.

CZECH-MADE SOCCER COURT DONATED TO DC UNITED ACADEMY

The Economic Department of the Embassy of the Czech Republic collaborated with the UHER Company to bring cutting-edge equipment to soccer youth at the DC United Academy, the youth and development program for the Major League Soccer Club DC United. It is the first such team to use this equipment in the United States. Head of the Economic Department Tomas Hart presented the court to the Academy’s U-15 Head Coach and Coordinator of Camps and Training Programs Gus Teren on June 16, 2016. The Academy plans to utilize the equipment in its youth practices and competitions.

The state-of-the-art soccer court, complete with two soccer goals, is highly durable and resistant to corrosion. It is easily and quickly assembled on any surface. It is manufactured in the Czech Republic by the UHER Company, an international top producer and distributor of soccer and floorball courts, street hockey rinks, multipurpose outdoor rinks, badminton courts, and sport floorings. The company is currently seeking to enter the American market.

The soccer court was first on display on May 14, 2016, at the Czech Embassy during its open house, which welcomed 3,300 curious visitors. DC United’s Coach James Shields and Forward Andre Akpan participated, cheering children on as they practiced their soccer skills within the rink.

Czech Trade Focus © 4 SUMMER 2016 COMPANIES AND BUSINESSES

Czech Airlines has announced it of last year. Two thousand Czechs disorders. In autumn, CPZP will will renew direct flights from acquired permits between the start again offer free or reduced-price Prague to Beirut as of June 20. The of June and the end of December, swimming in selected swimming airline will be flying to Lebanon joining the 290,000 who already pools throughout the Czech two times a week during the tourist possessed one. Republic. season, that is, until the end of September. Direct flights between SAZKAmobil (cellphone Czech toy companies have the Czech and Lebanese capital provider) currently has more than managed to increase their were first established in September 180,000 active customers. Its most production by one tenth. In total 1948. They were cancelled four popular service is cheap calls for they produced toys worth 2.65 years ago due to financial reasons. CZK 1.50 (0.06 USD) to call billion CZK and most of these toys The Czech carrier plans to launch networks and participation in will be exported. In the Czech flights to 11 new destinations lottery „SAZKAmobil chance“ Republic toy sales have been during the Spring and Summer with a minimum jackpot of CZK valued at 6.6 billion CZK in retail months. 250,000 (10,400 USD). The prices – an annual increase of 8 operator will in the near future also percent. This data has been Czech breweries recorded the offer selected websites and apps reported by Sdruzeni pro hracku highest beer production in history for free, without the use of data a hru (Association for Toys and last year, for the first time from the data bundle. This was Play). According to Jiri Stastny, increasing the level of production stated for CIANEWS by marketing deputy chairman of the association, beyond 20 million hectolitres. The manager Petra Farkasova, who retro toys have recorded the most figures represented an increase by added that this year’s investments increase in sales. 2.2% on the previous year, the will once again be made primarily Czech Beer and Malt Association into customer care and satisfaction, Tedom, a Czech producer of said on April 7. Czech beer exports for example into the online and cogeneration units is trying to increased by 13.4 percent to 4.14 mobile self-service. make it on the U.S. market. This million hectolitres, while the company teamed up with a U.S. import of beer increased by 7.3 Approximately 7,700 new insured company Tecogen. They created a percent. Domestic consumption of clients transferred to Ceska joint enterprise and the ownership beer per person dropped by one prumyslova zdravotni pojistovna was divided between these two litre in 2015 to 143 litres. (CPZP) on the last transfer date. companies. Tedom will supply The number of new arrivals and units for the production of Gun sales in the Czech Republic departing clients is nearly electricity and heat and Tecogen have been rising fast in recent balanced, so that the total number will manage the sales and service. months, while the number of of insured clients reached 1.232 Czechs applying for licenses is also million as of April 1, 2016. Password management company growing. Experts suggest this is a CIANEWS has been told this by OneLogin acquired identity response to worries over spokesperson Elenka Mazurova, management startup Portadi terrorist attacks and the migrant who added that the most-demanded (Czech-owned) on June 13 for a crisis. In the last five years over benefits at CPZP within preventive sum that was not disclosed. CEO 100,000 guns have been sold in programmes include a contribution Dusan Vitek co-founded Portadi in this country, bringing the total to vaccination, mammographic 2014 to develop a password number owned by private citizens examination, the Maternity management tool. Portadi was to more than 800,000, according to Manager program, contributions founded in San Jose, CA with the the newspaper Hospodarske and bonuses in the discount goal of helping customers manage noviny. After a period of decline, programme NechciNudu.cz. New cloud apps and online accounts. applications for gun licenses saw a offers also include a contribution to More information can be found at marked upswing in the second half preventive examination of memory www.portadi.com.

Czech Trade Focus © 5 SUMMER 2016 TRADESHOWS AND EXHIBITIONS IN THE CZECH REPUBLIC

INCHEBA PRAHA spol. s r.o. is one of the most important companies organizing exhibitions and fairs in the Czech Republic. Every year, Incheba Praha organizes about thirty exhibitions and fairs, all of them taking place at the Holesovice Fairground in Prague. For more information and a list of current exhibitions and fairs, please visit www.incheba.cz.

BVV Trade Fairs Brno is one of the most prominent trade fair organizers in Central and Eastern European countries. Its core business activity is organizing trade fairs and exhibitions at the Brno exhibition center and providing exhibition services. For more information and a list of current exhibitions and fairs, please visit www.bvv.cz/en/.

July 3-4, 2016 August 27-29, 2016 Venue: Prague Exhibition Centre Biomass Styl-International Fashion Letnany An event design to emphasize on An event showcasing trendy Organizer: World of Beauty technologies used in the biomass products such as women´s wear, Phone: +420 257 941 691 industry knitwear and underwear Web: www.worldofbeauty.cz Venue: Brno Exhibition Centre Venue: Brno Exhibition Centre Organizer: Brno Trade Fairs and Organizer: Brno Trade Fairs and September 8-10, 2016 Exhibition Exhibition Collector Fair Phone: +420 541 151 111 Phone: +420 541 151 111 An event showcasing products Fax: +420 541 153 070 Fax: +420 541 153 070 from Gifts and Handicrafts Email: [email protected] Email: [email protected] industry Web: www.bvv.cz/en Web: www.bvv.cz/en Venue: PVA Expo Prague Organizer: Progress Partners August 12-13, 2016 August 27-29, 2016 Advertising VAPEXPO Kabo-Footwear&Leather Phone: +420 224 213 905 First international exhibition of Exhibition Fax: +420 224 218 312 electronic inhalers, liquids and An event showcasing leather goods Email: [email protected] vaping accessories and footwear Web: www.ppa.cz Venue: PVA Expo Prague Venue: Brno Exhibition Centre Organizer: Smile Expo Organizer: Brno Trade Fairs and September 22-25, 2016 Phone: +420 234 280 626 Exhibition Autoshow Praha Email: [email protected] Phone: +420 541 151 111 An event showcasing products Web: www.smileexpo.ru/en/ Fax: +420 541 153 070 from the Automotive industry Email: [email protected] Venue: to be announced August 18-21, 2016 Web: www.bvv.cz/en Organizer: Incheba Praha Flora Olomouc Phone: +420 220 103 111 An event showcasing flowers, September 3-4, 2016 Web: www.incheba.cz ornamental trees, gardening International Prague Car utensils and supplies for gardeners Festival October 3-7, 2016 Venue: Flora Olomouc Exhibition An event showcasing products MSV – International Grounds from the auto industry Engineering Fair Organizer: Flora Olomouc Venue: to be announced A fair showcasing industrial Exhibition Grounds Organizer: Agentura MSP automation and presentation of Phone:+420 585 726 111 Phone: +420 284 814 017 measurement and control Fax: +420 585 726 272 Email: [email protected] technology Email: [email protected] Web: www.m-s-p.cz Venue: Brno Exhibition Centre Web: www.flora-ol.cz Organizer: Brno Trade Fairs and September 9-10, 2016 Exhibition World of Beauty & Spa Expo Phone: +420 541 151 111 An expo showcasing beauty and Fax: +420 541 153 070 spa products Email: [email protected] Web: www.bvv.cz/en

Czech Trade Focus © 6 SUMMER 2016 CZECH COMMERCIAL OFFICES IN THE UNITED STATES

Embassy of the Czech Republic in Washington, DC Czech Tourism California 3900 Spring of Freedom St., NW, Washington, DC 20008 6 Hutton Centre Drive, South Coast Metro, CA 92707 Consular jurisdiction: Alabama, Arkansas, Florida, Georgia, Phone: 714.382.6855 Kentucky, Louisiana, Maryland, Mississippi, North Contact: Mr. Vojtech Kacerovsky Carolina, Ohio, Oklahoma, South Carolina, Tennessee, E-mail: [email protected] Texas, Virginia, West Virginia. Phone: 202.274.9104, Fax: 202.244.2147 CzechTrade Contact: Mr. Tomas Hart The Czech Trade Promotion Agency CzechTrade was Assistant: Ms. Lenka Martinakova established by the Ministry of Industry and Trade of the Email: [email protected] Czech Republic in May 1997. CzechTrade´s main objective is to promote international trade and cooperation between Consulate General in Chicago Czech and foreign companies. CzechTrade´s professional 205 N Michigan Ave, Suite 1680, Chicago, IL 60601 information, assistance and consulting services accompany Consular jurisdiction: Illinois, Indiana, Iowa, Kansas, Czech exporters to foreign markets. The agency is a contact Michigan, Minnesota, Missouri, Nebraska, North Dakota, partner for firms entering the Czech market, seeking South Dakota a Wisconsin. interesting and reliable business partners and suppliers. Phone: 312.861.1037, Fax: 312.861.1944 Contact: Mr. Borek Lizec 202 S. Wacker Dr., Suite 3210, Chicago, IL 60606 Email: [email protected] Phone: 312.612.5894, Fax: 312.612.5897 Contact: Mr. Jan Kubata Consulate General in Los Angeles Email: [email protected] 10990 Wilshire Boulevard, Los Angeles, CA 90024 Consular jurisdiction: Alaska, Arizona, California, CzechInvest Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, CzechInvest was established in 1992 by the Ministry of Oregon, Utah, Washington, Wyoming. Industry and Trade and is the investment and business Phone: 310.473.0889 x.229, Fax: 310.473.9813 development agency of the Czech Republic whose services Contact: Mr. Pavol Sepelak and development programs contribute to attracting foreign Email: [email protected] investment and to developing Czech companies. CzechInvest provides the following services free-of-charge: Consulate General in New York Comprehensive services for investors - full information 321 East 73rd Street, New York, NY 10021 assistance, handling of investment incentives, business Consular jurisdiction: Connecticut, Delaware, Maine, property identification, location of Czech suppliers, Massachusetts, New Hampshire, New Jersey, New York, aftercare services; Business infrastructure development; Pennsylvania, Rhode Island, Vermont. Access to structural funds. Phone: 646.422.3303, Fax: 646.422.3311 Contact: Mr. Martin Dvorak USA - West Coast Operations Office Email: newyork@ embassy .mzv.cz 275 Battery Street, Suite 2600, San Francisco, CA 94111 Phone: 408.524.1690 Czech Center New York Contact: Mr. Roman Horacek 321 East 73rd Street, New York, NY 10021 Email: [email protected] Phone: 646.422.3399, Fax: 646 422-3383 Contact: Ms. Barbara Karpetova USA - East Coast Operations Office Email: [email protected] 321 East 73rd Street, New York, NY 10021 Phone: 347.216.9355 Czech Tourism New York Contact: Mr. Jan Chmelik 1109 Madison Avenue, NY, NY 10028 Email: [email protected] Phone: 212.288.0830, Fax: 212.288.0971 Contact: Mr. Jiri Duzar Email: [email protected]

Czech Trade Focus © 7 SUMMER 2016 BUSINESS AND TRADE WEBSITES

General information about the Czech Republic www.czech.cz Trade promotion agency CzechTrade www.czechtradeoffices.com Investment and business development agency CzechInvest www.czechinvest.org Tradeshows www.veletrhyavystavy.cz Czech Embassy in Washington www.mzv.cz/washington Ministry of Foreign Relations of the Czech Republic www.mzv.cz Ministry of Industry and Trade of The Czech Republic www.mpo.cz

DISTRIBUTION INFORMATION

The Czech Trade Focus is distributed by the Commercial Office of the Czech Embassy in Washington, DC. Sources: CTK, The Prague Post, CIA News, Financni Noviny, CzechInvest, CzechTrade, Czech Statistical Office, E15, Radio.cz, Prague Monitor

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Czech Trade Focus © 8 SUMMER 2016