Made in Czech

Transkript

Made in Czech

Made in Czech
Investor’s Guide for Manufacturing and Logistics Companies – 2015
1
Made in Czech • Investor’s Guide for Manufacturing and Logistics Companies • 2015
Foreword
The Czech Republic has a long and rich history as one of the world’s
most successful manufacturing and logistics markets. We also believe
that it has a very bright future.
The Czech Republic is truly situated at the geographical heart of
Europe and has the infrastructure in place to operate as the gateway
between the East and the West. With its population at just a little over
10 million people, it is a relatively small market but, is a heavyweight
in the manufacturing arena. It is a strategic location for numerous
manufacturing and logistics companies planning activity throughout
Europe, Central & Eastern Europe, Russia and other CIS countries.
The well-established Czech highway and road network is continuously
seeing further additions and improvements, particularly since the
country’s economic outlook has improved over the past few years.
These advantages, linked with the highly skilled workforce, low labour
costs, the availability of investment grants and incentives and EU
Membership, since 2004, make the Czech Republic a very attractive,
business-friendly location.
Local knowledge is key to making the most of the opportunities that the
Czech market has to offer. For this very reason, JLL has prepared this
report in co-operation with the following partners: PwC and Hays.
This report aims to offer guidance to international manufacturing and
related service companies that wish to establish or grow their presence
in the Czech Republic and provides an inside view of the country’s
manufacturing landscape. It also offers key expertise on the Czech
labour market with regard to the manufacturing sector and advice on
important legal topics such as the structure of grants and incentives,
setting-up a business and taxes. Insights into the manufacturing
industry are demonstrated with sector analysis. Commentary on the
real estate market provides a guide to the different acquisition and
rental methods, timeframes and market practices and trends.
We would like to thank all partners involved for their valuable input in
preparing this report. We firmly believe that “Made in Czech” is a useful
source of information for investing in this country.
Tewfik Sabongui
Managing Director
Czech Republic
JLL
Harry Bannatyne
Head of Industrial Agency
Czech Republic
JLL
Content Table
1. Executive Summary
3
2. Labour Market
5
3. Grants & Incentives
8
4. The Infrastructure Map of the Czech Republic
10
5. Key Manufacturing Sectors in the Czech Republic
12
Automotive sector
14
FMCG sector
18
Home Appliances, ICT and Electronics
22
Medical and Pharmaceutical Industry 24
General Machinery
26
6. The Czech Industrial Real Estate Market
28
7. Real Estate: Rent or Buy? 30
Rent a facility? 30
Buy a facility? 31
Overview of the permitting process
32
How quickly can you be operational?
32
Market practice for leasing space
33
Market practice for purchasing space 34
8. Real Estate Acquisition
35
9. Setting-up a Business 37
10. Czech Tax Structure
39
3
1.Executive Summary
The Czech Republic, with a population of just over 10 million people,
is one of Europe’s and the World’s biggest success stories in terms of
manufacturing.
The Czech Republic’s close connection to Western markets,
particularly the German market, and good cooperation with central
European countries, provides it with a balanced position and excellent
economic stability in both booming times, as well as crises.
The Czech Republic mainly benefits from its unique location in the
heart of Europe, representing a junction of trans European transport
corridors, in addition to a highly educated population and a well
‑developed infrastructure.
Numerous international companies have already identified the country’s
potential and have taken advantage of the favourable conditions that we
highlight in this paper. The following are our key rationale for investing
in the Czech Republic:
Czech investment rationale
Central European hub and favourable geographic location
Investment rating
The Czech Republic has the strongest country ranking in CEE from all
three major rating agencies. Moody’s have ranked the Czech Republic
A1, Fitch giving the rank of A+, both of them confirming a stable
outlook. S&P ranked the Czech Republic at AA–.
Country
Fitch
Moody’s
S&P
Czech
Republic
A+
(stable)
A1
(stable)
AA–
(stable)
Hungary
BB
(stable)
Ba1
(stable)
BB+
(stable)
Poland
A–
(stable)
A2
(stable)
A–
(positive)
Romania
BBB–
(stable)
Baa3
(stable)
BBB–
(stable)
Slovakia
A+
(stable)
A2
(stable)
A
(positive)
Slovenia
BBB+
(stable)
Baa3
(stable)
A–
(stable)
Political and economic stability, with one of the highest GDP growth
rates forecasted in the EU in 2014/2015
Source: Fitch, Moody’s, S&P, 2015
Availability of a highly skilled workforce
Attractive labour market
Low labour costs vs. high labour productivity
The population of the Czech Republic reaches over 10.5 million
inhabitants. The largest city is the capital city of Prague with more than
1.2 million inhabitants. Other large cities include Brno, Ostrava and
Pilsen, all with populations of above 150,000 inhabitants.
Quality logistics / industrial real estate stock
Favourable government investment incentives, mainly focused on
hi-tech projects
One of the densest highway networks in Europe
One of the densest rail networks in the world
Excellent business opportunities in the areas of R&D, Design and
Innovation
Fast growing market
In May 2014, the Czech Republic had its 10th anniversary of becoming
a member of the European Union. Being a part of the single European
market has certainly brought trading benefits along with reforms that
have provided a relatively stable market environment, for today’s
standards, and a reliable, safe business climate.
According to Oxford Economics, The Czech Republic is forecast to
experience one of the highest GDP growth rates in Europe with an
average of 3.0% between 2014 and 2016.
The country continues to attract a large share of Foreign Direct
Investment (FDI), most recently with new investments from Nexen (tyres), Hyundai Mobis (automotive components) and Bell
Helicopters.
The labour force of the Czech Republic, aged between 15 – 64 years,
exceeds 7.3 million people, which is ca. 70% of the population. With
133.3 inhabitants per sq km, it has the highest density of inhabitants
in the CEE region and the 13th highest density of inhabitants among
European countries.
According to Eurostat, the Czech Republic offers some of the most
competitive labour costs in Europe at EUR 10.3 per hour. This rate
is more than half of the EU 28 average and 3 times lower than in
neighbouring Germany.
Educated workforce
The Czech Republic offers a highly qualified workforce with wide
ranging experience in the manufacturing sector. The well renowned
and long industrial history of the country is supported by a network
of universities, secondary technical schools and training centres,
providing a significant number of graduates.
The Czech Republic has 77 public and private universities, with a total
of 375,000 students. The highest portion of students is, unsurprisingly,
in the largest cities of Prague, Brno and Ostrava. On the other hand, in
every single regional capital there is at least one university. The highly
skilled workforce is therefore distributed across the regions and it is not
concentrated purely in the largest cities.
4
Favourable grants & incentives
Maturing real estate market
In addition to its attractive labour market and availability of workforce,
another important draw factor for manufacturers assessing where to
locate a new development, is the availability of investment incentives
offered by the government. These are handled by CzechInvest, the
Investment and Business Development Agency, a state agency created
by the Ministry of Industry and Trade.
The real estate market is maturing, offering high quality manufacturing
and warehouse space. Many large international developers are present
in the market. The various options of buying or renting an existing
facility or commissioning a built-to-suit production facility are outlined in
this report.
Attractive investment incentives are granted through many forms of
state aid, including: corporate income tax relief, transfer of land for
favourable prices, job creation grants, training and retraining grants,
and cash grants for the acquisition of long-term tangible and / or intangible assets.
According to the JLL Global Real Estate Transparency Index, based
on a combination of quantitative market data and information gathered
through a survey of the global business network of JLL and LaSalle
Investment Management, the Czech Republic has a transparent real
estate market which is closing the gap with Western Europe.
The index is based on a review of the following categories:
The manufacturing sector is evolving
The Czech Republic is an export oriented, open economy, with a
strong emphasize on manufacturing. The country has shifted from an
assembly production market to an added value manufacturing and
high technology production zone, serving also as a transit station and
distribution hub for goods from the east and south east to northern and
western Europe.
The Czech Republic has the most developed industrialized economy
in Central and Eastern Europe. Its strong industrial tradition dates back
to the 19th century when Czech countries represented the industrial
engine of the Austro-Hungarian Empire.
The manufacturing industry is one of the most important parts of
the national economy, representing a substantial share of gross
domestic product. The traditional industries are heavy and general
machine-building, iron and steel production, metalworking, chemical
production, electronics, transportation equipment, plastics, textiles,
and pharmaceuticals. The long term leading sector is automotive
production, which strengthen its position every year. On the other
hand, we are recording a gradual decline of the mining sector. In the
European, as well as global rankings of most industrialised countries,
the Czech Republic always belongs among the top positions.
Thanks to its strategic location, next to Germany, in the centre of
continental Europe, the Czech Republic is an attractive place for
manufacturers to near shore operations and also to progressively
compete for cost-effective, value-added manufacturing, supported by a
highly skilled workforce.
Performance Measurement
Market Fundamentals
Governance of Listed Vehicles
Regulatory and Legal
Transaction Process
Europe Real Estate Transparency, 2014
Highly Transparent
Transparent
Semi-Transparent
Low Transparency
FI
Opaque
SE
Not Covered
NO
GB
BE
RU
DK
NL
DE
IE
FR
ES
PT
CH
IT
BY
PL
CZ
SI
AT HU
SL
KZ
UA
RO
RS
TR
HR
G R BG
IL
Source: JLL 2014
The Czech Republic is out of this world!
The European Global Navigation Satellite Agency (GSA) has selected Prague as its headquarters for the Galileo navigation system project which is anticipated
to attract a great deal of talent, knowledge and put a spotlight on the Czech Republic.
This project will provide an opportunity, to both Czech companies and their partners, to push the boundaries in terms research and innovation into space
related technologies and systems.
5
2.Labour Market
Section contributed to by Hays Czech Republic
Human capital is a key element in the investment process. The three
main areas to assess with regard to investment potential include
employment costs, availability of workforce and quality of labour.
A focus on Czech labour dynamics will be outlined in this chapter.
From a human resources perspective, the Czech Republic offers
a highly qualified workforce with wide ranging experience in the
manufacturing sector. The well renowned and long industrial history of
the country is supported by a network of secondary technical schools
and training centres, providing a significant number of graduates. In
addition, the presence of technical universities across the country
including: Prague, Brno, Liberec, Ostrava, Pilsen, Ústi nad Labem
and Zlín, allow for a sustainable flow of electrical, mechanical and
manufacturing engineers.
Although the Czech Republic has slightly higher employment costs,
when compared to other markets in the region, this is offset by the high
levels of technical education and the general above average language
knowledge (English and German) within the CEE region.
Severance
Employment lasted < 1 year employee is entitled to 1x average monthly earnings
Employment lasted > 1 and < 2 years employee is entitled to 2x average monthly earnings
Employment lasted > 2 years employee is entitled to 3x average
monthly earnings
Source: Hays Czech Republic
Other information
Notice period: 2 months by law, or by agreement
Holidays/year: 20 days by law
Bank holidays:
13 (Fixed to specific dates)
Working hours/week: 40 (Typical)
Sick Leave: 1st – 3rd day no reimbursement, 4th – 14th day reimbursed by employer, 15th + day reimbursed
by the state
Combined with the countries geographical location and developed
transport network, it makes the country a very attractive location for
manufacturing companies and also those with added value production
or R&D Centres.
Labour law
Employment costs
A trial period of up to 6 months can be agreed with so-called
managerial/leading employees entitled to determine and assign tasks
and give instructions to their subordinates and to organise and control
their work.
The two most significant components of employer costs are salaries
and Social Security Contributions (SSC). According to Eurostat, the
Czech Republic offers one of the lowest labour costs in Europe at EUR
10.3 per hour. This rate is more than half of the EU 28 average and 3
times lower than in neighbouring Germany.
40,0
35,0
30,0
25,0
20,0
15,0
10,0
Source: Eurostat, 2013
Romania
Hungary
Poland
Slovakia
Czech Republic
Slovenia
United Kingdom
Spain
0,0
EU (28 countries)
5,0
Germany
Previous employment for a definite period will no longer be taken into
account three years after the end of the last employment for a definite
period.
45,0
Austria
Employment for a definite period concluded between the same
contracting parties may not exceed 3 years. From the day when the
first employment for a definite period is concluded, this employment
term may be repeated twice only. Extended employment will be
considered repeatedly concluded employment.
Comparison of hourly total labour costs among selected
European countries in the Industrial and Construction sectors
(in EUR)
France
Employment for an indefinite period is the most common in the Czech
Republic, preferred by both parties (employer and employee).
Sweden
The trial period of a maximum 3 months, is applicable to other
employees, regular staff.
6
Statutory employer costs
When assessing employment costs among the Czech regions,
the variation between average salaries in each region should be
considered. Salary levels mostly depend on the development of each
region, as well as the type of industry situated in that particular area.
Social security
Sickness insurance
2.3 %
Retirement / pension insurance 21.5 %
Employment insurance
Typical average gross monthly salaries for selected regions
and general manufacturing positions (EUR)
1.2 %
Health security
9.0 %
Total paid by employer on top of salary
34.0 %
Prague
Pilsen
Ostrava
Skilled workers
860 – 900
720 – 790
790 – 850
575 – 610
Unskilled workers
650 – 720
650 – 680
650 – 690
540 – 580
1,450
1,290
1,350
1,200
Engineers
Additional costs
Brno
Source: Hays Czech Republic / CNB FX Rate (13/3/15) 1 EUR = 27.30 CZK
Optional Benefits Costs – average annually CZK / per head
1 extra week of holidays (over Based on employees’ monthly gross
80% companies)
salary
Lunch Vouchers (over 76%
companies)
6,000–12,000 (215–430 EUR) per
employee annually (1 day average
contribution is 40–60 (1.4–2.2 EUR)
Cafeteria / flexible benefits
for culture etc. (around 30%
companies)
6,000–15,000 (215–540 EUR) per
employee annually
Health Care Benefits
(common in organizations
where expats are working)
0–24,000 (0–862 EUR)
Training and Development
programs
5,000–40,000 (180–1,437 EUR) up
to seniority level
Source: Hays Czech Republic / CNB FX Rate (13/3/15) 1 EUR = 27.30 CZK
Monthly salaries for manufacturing roles in the Czech Republic range
from less than EUR 510 up to EUR 900 for blue-collar workers, from
EUR 900 up to EUR 3,200 for white-collar staff (specialists) and from
EUR 1,600 up to above 7,000 for management. It is worth noting that
salary levels can be higher when seeking specialists with niche skills
and/or when relocation is required.
Average gross monthly salaries in the Czech Regions
(in EUR)
Availability of labour
The labour force of the Czech Republic, calculated by the number
of people aged between 15 and 64 years old, exceeds 7.3 million
inhabitants which is ca. 70% of the population. At the end of February
2015, the Czech Republic’s unemployment rate was reported at 7.5 %,
according to the Czech National Statistical office.
When assessing unemployment across the country, the spread
between regions can be significant, as shown on the map below. The
more developed regions, such as Prague, Central Bohemia and the
Pilsen region, have unemployment rates below 6.5%, whereas some of
the less developed regions, such as the Usti nad Labem region, have
unemployment rates above 10%.
The unemployment map can indicate parts of the country where there
is an accessible labour force, although it is worth considering that there
are certain sub-regions in some of the most developed regions that
also have a ready workforce. These regions can facilitate investment
in proximity to a major hub, such as Prague, whilst also providing easy
access and cheaper employment of the labour force, particularly when
hiring blue-collar workers.
Average unemployment rate (%) in the Czech Regions
> 1000
ÚSTÍ NAD LABEM
REGION
KARLOVY VARY
REGION
> 10%
900 - 1000
LIBEREC REGION
7.6 - 10%
LIBEREC REGION
700 - 800
ÚSTÍ NAD LABEM
REGION
HRADEC KRÁLOVÉ
REGION
5 - 7.5%
HRADEC KRÁLOVÉ
REGION
PRAGUE REGION
PRAGUE REGION
PARDUBICE
REGION
CENTRAL BOHEMIA
REGION
MORAVIA-SILESIA
REGION
KARLOVY VARY
REGION
PILSEN REGION
MORAVIA-SILESIA
REGION
PARDUBICE
REGION
CENTRAL BOHEMIA
REGION
OLOMOUC
REGION
OLOMOUC
REGION
PILSEN REGION
VYSOČINA REGION
VYSOČINA REGION
ZLÍN REGION
SOUTH BOHEMIA
REGION
SOUTH MORAVIAN
REGION
Source: Czech National Statistical Office, Q3 2014, (1 EUR = 27.30 CZK)
ZLÍN REGION
SOUTH BOHEMIA
REGION
SOUTH MORAVIAN
REGION
Source: Czech National Statistical Office, February 2015
7
Skilled & educated workforce
Students at ISCED levels 5–6, – as % of all students
In the Czech Republic, there are 77 public and private universities
with a total of 347,300 students (81,300 in technical fields) and 88,146
graduates (16,529 in technical fields). The highest proportion of
students are, unsurprisingly, in the largest cities of Prague, Brno and
Ostrava. On the other hand, in every single regional capital there is at
least one university. Highly skilled labour is therefore distributed across
regions and is not purely concentrated into the largest cities.
Number of Students / Number of Faculties in the Czech
Regions
7,951 / 6
LIBEREC REGION
9,774 / 9
ÚSTÍ NAD LABEM
REGION
467 / 1
12,263 / 6
144,486 / 74
KARLOVY VARY
REGION
38,856 / 18
10,328 / 7
1,435 / 2
15,522 / 10
HRADEC KRÁLOVÉ
REGION
PRAGUE REGION
PARDUBICE
REGION
CENTRAL BOHEMIA
REGION
PILSEN REGION
MORAVIA-SILESIA
REGION
22,887 / 10
OLOMOUC
REGION
3,242 / 2
11,730 / 9
VYSOČINA REGION
ZLÍN REGION
17,987 / 12
SOUTH BOHEMIA
REGION
78,382 / 35
SOUTH MORAVIAN
REGION
Source: MŠMT 2014
The economic maturity of countries focused on hi-tech industries
is determined by the quality of the tertiary education system
and its share of students in technical fields. The Czech Republic
has one of the largest proportions of students studying science,
mathematics, computing, engineering, manufacturing and construction.
Approximately 25.3% of all students are enrolled in the above
mentioned fields of study.
Finland
Germany
Greece
Portugal
Romania
Ireland
Slovenia
Spain
Estonia
Sweden
Austria
Czech Republic
Bulgaria
France
Italy
Croatia
Switzerland
Slovakia
United Kingdom
Macedonia
Poland
Hungary
Liechtenstein
Lithuania
Latvia
Malta
Cyprus
Japan
Denmark
Luxembourg
Iceland
United States
Norway
Belgium
Netherlands
33.9
32.9
32.7
29.2
28.6
28.3
26.7
26.4
26.3
25.9
25.6
25.3
25.1
25.1
24.7
24.3
24.3
23.2
23.2
23.0
22.7
22.5
22.4
22.1
21.1
20.9
20.8
19.8
19.1
18.2
18.0
17.8
17.0
16.8
14.7
Source: Eurostat, 2014
Pavel Rufert
TPG Powertrain Management
ŠKODA AUTO a.s.
“ŠKODA AUTO a. s. highly value the personal growth of our employees and provide regular training, as it is vital for our
continuous progress. ŠKODA AUTO a. s. has also established effective cooperations with the technical universities in Prague,
Brno, Pilsen and Liberec, supporting students on various research and development projects, conducting student trainee
programmes, providing consultancy on student theses and sharing expertise. In addition, ŠKODA has founded its own Škoda
Auto University as another opportunity for theory to meet practical experience.
As ŠKODA contributes significantly to improving regional employment rates, supports sporting and cultural activities, operates
employee health programmes and helps enhance the environment and infrastructure in ŠKODA’s locations, the Czech local
authorities have always been keen to support ŠKODA’s production and its growth.”
8
3.Grants & Incentives
Section provided by PwC Legal
Introduction
Job creation and training/re-training grants
Choosing the appropriate investment location relies on a thorough
analysis of potential costs and benefits of the sites. One of the key factors
influencing the decision on location is often the availability of state aid.
These grants can only be provided for investments made in certain
regions (regions where the unemployment rate is at least 50 % higher
than the average rate in the Czech Republic). For every newly created
job a cash grant in the amount of CZK 200,000 (approximately EUR
7,200) can be granted. In addition to that, grants of up to 45 % of the
amount of expenses spent for training and retraining, depending on the
size of the enterprise, can be provided to the applicant.
Investors considering investment in the Czech Republic are able to
benefit from various types of incentives. The amount of incentives
provided depends on the location of the investment. The incentives are provided in the form of: (i) cash grants, (ii) tax relief
and (iii) discounts on the purchase price of land. Incentive procedures are handled by CzechInvest, the Investment
and Business Development Agency, a state agency created by the
Ministry of Industry and Trade. CzechInvest acts as an intermediate in
the incentive application process and for communications between an
applicant and the relevant ministries.
Eligible Investments
Investment incentives can be provided for the following investments:
introduction or expansion of production in certain sectors of the
manufacturing industry;
construction or expansion of research and development centres;
These grants may be changed in the future as the Act on Incentives,
amended in 2015, predicts also related regulations to be amended:
the grants may be provided also for investments in regions where the
unemployment rate is at least 25% and grants for job creations may be
raised up to CZK 300,000 (approximately EUR 10,800).
Cash grant on capital investment
The capital investment grant is provided for a strategic investment (as
described further in the text) to launch or expand new manufacturing
or technology centres. A cash grant is provided to the amount of 10 %
of the eligible costs. This grant could be increased up to 12.5 % of
the eligible costs if both manufacturing and technology centres are
launched at the same time.
launch or expansion of technology centres; and
launch or expansion of business support services centres.
Forms of the incentives being provided:
corporate income and real estate tax relief;
transfer of land for a favourable price;
job creation grants;
training and retraining grants; and
cash grant for the acquisition of long-term tangible and / or intangible assets.
Amount of Incentive
The amount of incentive is limited by a “ceiling” – the amount stipulated
in the implementing regulation depends on the region. Currently,
a ceiling varies from 30 % to 40 % of the eligible costs. In February 2014, the European Commission adopted a new map of
amounts of state aid applicable for the Czech Republic, decreasing the
amount of the incentive to 25 % of eligible costs. Investments in the territory of Prague are not eligible to receive any
incentives.
Corporate income tax relief
Conditions
An entity can apply for corporate income tax relief for ten years or for
ten consecutive tax periods. The first relief period can be drawn when
the statutory conditions for the state aid are met but can be no later
than within three years from the moment when the investment incentive
has been granted.
An entity can also apply for tax relief concerning land or real estates
situated in the favourable industrial areas. Tax relief is subject to
approval of the municipality and may be applied for 5 years at
maximum.
Any entity that makes its investment in the Czech Republic is entitled
to apply for an incentive. The applicant can be both Czech or foreign
entities; whereas the recipient of the incentive can only be an entity
with its registered seat in the Czech Republic.
Transfer of land for a favourable price
The nature of this grant represents the possibility for the applicant to
acquire land plots owned by the state or municipalities for favourable
prices. The incentive is then represented by the difference between the
purchase price and the market price of the particular land plots.
The Investment Incentives Act stipulates basic conditions for granting
the incentive, among others: the investment must be implemented in the territory of the Czech
Republic;
the activity subject matter of the investment, construction or facility
must be environmentally friendly;
work connected to implementing the investment shall be started only
after CzechInvest has approved the investment and incentives.
9
Conditions for eligibility for incentives in the case of
investment in manufacturing industry:
Strategic Investment:
General Conditions:
the investment in long-term tangible and non-tangible assets shall
exceed CZK 100 million of which the minimum of CZK 50 million is
intended for investment into new machinery;
creation of at least 20 new jobs.
Strategic Investment:
exceed CZK 500 million of which a minimum of CZK 250 million is
intended for investment into new machinery and the creation of at
least 500 new jobs;
Conditions for eligibility for incentives in the case of
investment in technological centres:
investment in long-term tangible and non-tangible assets exceeding
CZK 200 million of which a minimum of CZK 100 million is intended
for investment into new machinery and the creation of at least 100
new jobs;
In the case of an investment into a strategic development centre, an
additional 20 jobs in the case of software development and 170 jobs in
the case of other strategic development centres or, 500 jobs in the case
of customers support centres, must be created by the investment as
a condition for granting the incentive.
The above criteria are reduced to half in case the investment is being
made either in a district in which the unemployment rate is at least 50 %
higher than the average unemployment rate in the Czech Republic or in
the favourable industrial area.
The above conditions must be fulfilled by the recipient of the incentive
within 3 years from the moment when the incentive has been granted.
General conditions:
exceed CZK 10 million of which a minimum of CZK 5 million is
intended for investment into new machinery; creation of at least 20 new jobs.
Application process
The application is filed by the applicant with CzechInvest who then
elaborates an opinion on the investment and forwards the application
to the Ministry of Industry and Trade. The Ministry will assess the intent
of the investment in cooperation with other relevant ministries. The
process usually takes from five to six months. In case the applicant and
recipient are the same entity/person, the process is usually faster and
should take from three to four months.
4.The
InfrastructureMap
Map
Czech
Republic
The Infrastructure
of of
thethe
Czech
Republic
Czech Republic - At a Glance
Y
N
A
RM
GE
Teplice
8
Ústí nad
Labem
Most
Česká Lípa
10
8
Kladno
Sokolov
6
1
Cheb
5
Bayreuth
Náchod
PRAHA
Pardubice
Kolín
Opava
35
Chrudim
Kutná Hora
3
5
Jihlava
Tábor
Třebíč
52
Jidřichův Hradec
2
Břeclav
Bratislava
Wien
Under construction/
Preparatory works
Cities 20,000 - 50,000 inhabitants
Main International Airports
Regional International Airports
City
Zlín
Uherské
Hradiště
A
I
K
VA
O
L
S
Existing network
Under Construction
Source: JLL based on ŘSD, 2015
Prague
Brno
Ostrava
Pilsen
Liberec
Olomouc
Ústí nad Labem
České Budějovice
Hradec Králové
Pardubice
Population
1,246,780
378,327
297,421
167,472
102,113
99,471
93,747
93,467
93,035
89,467
Source: Czech Statistical Office, 2014
Transport Infrastructure
Motorways and Express Roads
Linz
Cities over 50,000 inhabitants
Largest cities in the Czech Republic
Žilina
Hodonín
AUSTRIA
Regional cities
49
Kroměříž
Katowice
Frýdek- Třinec
-Místek
Vsetín
3
In operation
Main roads
1
Český Těšín
48
Valašské
Meziříčí
Přerov
BRNO
Znojmo
Key
Planned construction
Vyškov
České
Budějovice
Y
Motorways and express roads
Blansko
1
55
55
Písek
Strakonice
56
Kopřivnice
Nový
Jičín
Olomouc
46
3
AN
1
Prostějov
Žďár nad Sázavou
4
Klatovy
RM
43
Havlíčkův Brod
Příbram
35
Karviná
Havířov
1
Svitavy
Nürnberg
München
Bohumín
Orlová
OSTRAVA
Šumperk
Source: (a) Czech Statistical Office, (b) Oxford Economics, 2015
Warszawa
Krnov
Plzeň
GE
D
Hradec
Králové
1
4
Population (a)
10,538,275
Territory km2 (a)
78,866
GDP Volume in milllion USD (b)
212,688
GDP per Capita in USD (b)
19,552
Consumer Price Index (b)
0.4%
Unemployment Rate as of February 2015 (a)
7.5%
Government Gross Debt (as % of GDP) (b)
41.3%
10 Year Government Bonds (b)
1.6%
Exchange Rate EUR/CZK, period average (b)
27.5
Exchange Rate USD/CZK, period average (b)
20.8
11
Jičín
11
1
6
Jablonec
nad Nisou
10
7
Czech Republic - Facts and Figures
LAN
Wroclaw
35
Mladá Boleslav
7
PO
Economy
Trutnov
Litoměřice
Jirkov
Chomutov
Karlovy
Vary
Děčín
Dresden
Berlin
Litvínov
Liberec
Major roads planned till 2018
1,234 km
31 km
D1 Motorway (Prague - Brno - Ostrava) - Completion of the section Přerov - Lipník
D3 Motorway (Prague - Linz) - Completion of the section Veselí nad Lužnicí - Úsilné
D8 Motoway (Prague - Dresden) - Completion of the final section Lovosice - Řehlovice
D11 Motorway (Prague - Wroclaw) - Completion of the section Osičky - Hradec Králové
R4 Express Road (Prague - Písek) - Completion of the section Skalka - křižovatka II/118 (Háje)
R6 Express Road (Prague - Bamberg) - Completion of the section Lubenec - Bošov
R7 Express Road (Prague - Chomutov) - Completion of the section Postoloprty - Bítozeves
R35 Express Road (Hradec Králové - Olomouc) - Completion of the section Opatovice nad Labem
R49 Express Road (Hulín - Slovak border) - Completion of the section Hulín - Fryšták
Airport Network
10 International Airports
12
5.Key Manufacturing Sectors in the Czech Republic
Successful then, successful now
Strong FDI influence
The Czech Republic is one of the most prosperous economies of
the Central and Eastern European region. It benefits mainly from
its unique location in the heart of Europe representing a junction of
trans European transport corridors, as well as from a well-educated
population and a well-developed infrastructure.
In the last fifteen years, the Czech economy has been significantly
influenced by a strong inflow of foreign direct investment. The period
between 2003 and 2007 saw the strongest inflow of FDI, as the
incoming corporations and investors were significantly increasing
the production capacity of country. Over the past few years, we have
recorded more reinvestment of capital and expansions of existing
investments rather than the inflow of new investors. A substantial
number of corporations that set-up their production facilities in
the Czech Republic several years ago, are now expanding their
operations, mainly into Research and Development centres, IT centres,
Central European or European distribution hubs, or even European
headquarters. The Czech economy is thus gradually moving from the
production and assembly part of the industry, to higher added value
sectors.
The country also has the most developed industrialized economy in
Central and Eastern Europe. Its strong industrial tradition dates back
to the 19th century when Czech countries represented the industrial
engine of the Austro-Hungarian Empire. During the interwar times, the
Czechoslovakian Republic steadily ranked among the top ten most
developed countries in the world.
The manufacturing industry is one of the most important parts of
the national economy, representing a substantial share of gross
domestic product. The traditional industries are heavy and general
machine-building, iron and steel production, metalworks, chemical
production, electronics, transportation equipment, plastics, textiles
and pharmaceuticals. The long term strongest sector is automotive
production, which strengthens its position every year. On the other
hand, we are recording a gradual decline of the mining sector. In the
European, as well as the global rankings of the most industrialised
countries, the Czech Republic always features among the top positions.
Manufacturing, value added 2012
(worldwide ranking; % of GDP; trend 2012/2009)
Despite the relatively small size of the country, thanks to existing know
how and technical excellence, sustaining cost effectiveness, excellent
transport infrastructure and strategic location, it is still one of the major
destinations of foreign investment in Europe.
Foreign direct investment, net inflows 2012
(BoP, current bil. US$, trend 2012/2011)
1
China
253.5
2
United States
203.8
3
Brazil
76.1
1
Thailand
34%
2
Korea, Rep.
31%
7
United Kingdom
56.1
3
Belarus
25%
8
Russian Federation
50.7
4
Czech Republic
25%
13
France
28.1
5
Malaysia
24%
15
Germany
27.2
28
Czech Republic
10.6
9
Ireland
23%
32
Hungary
9.4
10
Germany
22%
36
Poland
6.7
12
Slovakia
21%
72
Romania
2.0
17
Switzerland
19%
82
Slovak Republic
1.5
19
Austria
18%
25
Poland
18%
30
Croatia
16%
Growing sectors in the Czech Republic
77
United Kingdom
10%
78
France
10%
The largest share in the Czech national production accounts is
obviously covered by the services and trade & wholesale sectors, with
a share of 61% of Gross Value Added in 2012. As depicted on the
following graph, services and trade are followed by manufacturing (27%
share), construction, utilities, agriculture and extraction.
Source: The World Bank, 2014
Source: The World Bank, 2014
13
Czech GVA Structure on National Accounts in 2012
Other dominating sectors, based on value added, are metal processing
(3.8% of GVA), electronics and electrical equipment (2.5%), FMCG
(2.4%) and general machinery (3.4%).
Manufacturing
24%
Agriculture
2%
Utilities
5%
Services
51%
Based on economic forecasts, the value added on manufacturing in the
Czech Republic is forecast to grow by more than 46% in the coming
decade, leaving the estimated growth of the services sector (28% by
2023) far behind.
Czech Gross Value Added, real, LCU (billions CZK: 2010 prices)
3 000
Construction
6%
2 500
Extraction
1%
2 000
1 500
Czech GVA Structure in Manufacturing Industries
180000
1993
160000
2002
2012
1 000
500
Agriculture and forestry
Industry incl. Manufacturing
2023
2021
2019
2017
2015
2013
2011
2009
2007
2005
2003
2001
1999
0
1997
The manufacturing sectors have grown in the past two decades by
260%. The fastest growing industrial subsector was the manufacturing
of plastics and rubbers with a 1,261% growth of gross value added
between 1993 and 2012. The plastics and rubber manufacturers’
key customers recruit mainly from the automotive, electronics and
packaging industries. The next biggest industry jumpers were mainly
the automotive and other transportation manufacturing industries with
an 851% increase and the electronics & electrical equipment industries
with a 737% increase.
1995
Source: JLL, CZSO, 2014
1993
Trade &
Wholesale
11%
Manufacturing
Services
Source: Oxford Economics, 2014
From the various different manufacturing sectors, five (FMCG, domestic
appliances & electronics, automotive, medical & pharma and general
machinery) are outlined in more detail in the following sections.
Although we have selected these sectors as an example, great
potential also exists in many other sectors.
140000
120000
100000
Mark Kelleher
Vice-President, European
Operations
80000
60000
Smiths Medical
40000
Fuels
Textile
Wood and paper
Non-mettalic mineral products
other
Pharmaceuticals and medical
Rubber and plastics
FMCG
Metals
Electronics and electrical
equipment
Automotive and other transport
0
Machinery
20000
Source: JLL, CZSO, 2014
The production of automotive and other transportation vehicles with
its 4.9% share on total GVA, is not only the largest manufacturing
subsector, but also the sector with largest share growth on total GVA with
an approximate growth of 3.2 percentage points in the past 20 years.
Smiths Medical, part of
Smiths Group, is a leading
global provider of medical
devices and equipment for the
healthcare industry. Worldwide
the company employs over 7,500 people, with manufacturing concentrated
in the US, UK, Italy, Mexico – and from 2013, the Czech Republic.
‘’Smiths Medical chose the Czech Republic to expand its operational
base in Europe to serve our European customers and EU markets. The
key benefits included the country’s stable economic base, its strategic
location within Central Europe, the availability of highly skilled labour and
the over cost effectiveness. After considering other locations in CEE and
the Czech Republic, Smiths Medical chose to locate its CEE production
base in Hranice, in northern Moravia, near the University cities of Olomouc,
Ostrava and Brno. The location benefits from a combination of lower total
operating costs, direct access to the European motorway networks and
close proximity to skilled labour and a regional supply base.’’
14
Automotive sector
The Czech Republic is currently the 5th biggest car producer in Europe
and the 13th largest worldwide. In 2013, the number of passenger
cars produced in the country reached almost 1.13 million units, which
places the country as the second largest global car manufacturer
(after Slovakia) in production per capita. In 2012, production per 1,000
inhabitants reached 111 car units. During 2013, the number of cars
produced per 1,000 inhabitants decreased to 107 units; however, the
latest data for H1 2014 (+10.3%) indicates another strong year for
the Czech automotive sector. With such statistics, it is no wonder that
automotive and automotive parts productions currently represent the
most dominant Czech manufacturing industry.
The automotive sector in the Czech Republic includes the production
of a wide variety of vehicles ranging from passenger cars (Škoda
Auto – Mladá Boleslav, TPCA – Kolín, Hyundai – Nošovice.), to
trucks (Tatra – Kopřivnice), buses (Iveco (ex Karosa) – Vysoké Mýto,
SOR – Libchavy), motorcycles (Jawa – Týnec nad Sázavou), trailers
(Schwarzmuller – Žebrák, PANAV – Senice na Hané, Agados – Velké
Meziříčí) and sport roadsters (Kaipan – Smržovka).
As one of the most important industries in the Czech Republic,
the sector boasts the highest inflow of FDI and currently employs
approximately 120,000 people across the country in car plants or
related services. In H1 2014, the Czech Republic accounted for over
7% of the total European car production market. In the past few years,
the initial inflow of mainly large car producers has been accompanied
by a significant inflow of automotive suppliers and research and
development centres tied to these manufacturers. The strong
automotive background is also attracting more and more distribution
centres, usually for the central European or, the entire European
market area.
The main drivers behind other leading automotive manufacturers
moving their production to the country include: the tradition of car
production and access to a skilled labour-force, further supported by
a large number of technical university graduates, the availability of
relatively cheaper materials and the central location of the country
which gives proximity to both growth and core markets.
Major Car Producers
The tradition of car production in the Czech Republic is tied to Škoda
Auto, one of the most famous and most valued Czech brands worldwide.
Škoda Auto, a car manufacturer with over 115 years of tradition in motor
vehicle production is the largest Czech exporter with nearly 600,000
cars produced per annum. Moreover, it is the only car manufacturer in
the country who is involved not only in production, but also in actual
car development. The company is based in Mladá Boleslav, north-east
of Prague, with production situated in three locations (Mladá Boleslav,
Kvasiny and Vrchlabí) where nine different models, including one of the
most popular brands globally, within its category, the Škoda Octavia,
are being produced. In 1991, Škoda Auto became part of leading car
producer – Volkswagen Group. Its R&D centre in Mladá Boleslav, which
was further extended by a new Engine centre this September, is the
fourth largest of the entire group in the world.
Pavel Rufert
TPG Powertrain Management
ŠKODA AUTO a. s.
“ŠKODA AUTO a. s. follows the tradition,
success and expertise of more than 100 years
of uninterrupted car manufacturing, technical
development and customer after-sales care.
In the Czech Republic alone, ŠKODA AUTO a. s.
has been operational in three production plants: Mladá Boleslav, Vrchlabí
and Kvasiny, employing a total of 24,500 employees (in 2013).
It was mainly the company’s great potential, successful car models, skilled
labour and other advantages of automotive production in the Czech
Republic that sparked VW’s interest to connect the ŠKODA brand with the
VW Group in 1991.
The high quality and reliability of ŠKODA products has been the result of
the introduction of new technologies, building on the expertise of skilled
professionals and cooperating on common projects and platforms. VW
Group’s confidence in ŠKODA’s technical know-how was proved by
assigning ŠKODA with the full development of a new series of 3-cylinder
1.2l MPI engines for three VW Group brands, starting in 1998. Between
1991 and 2014, a total of 280 billion Czech crowns have been invested by
ŠKODA AUTO a.s. in the Czech Republic.
For example, the latest R&D activities have been endorsed by the
investment into a new Engine Centre in Mladá Boleslav, where new
development projects are integrated into the Group’s strategic programmes.
The stable economic environment in the Czech Republic, cost-efficient
production and human resources have not only been beneficial for ŠKODA
but also for our suppliers who have been opening new plants, creating local
automotive clusters close to our factories.”
TPCA (Toyota Peugeot Citroen Automobile) started production in their
brand new manufacturing plant in Kolín, east of Prague, in 2005. The
total construction cost, which amounted to 20 billion CZK, represented
the largest greenfield investment in CEE at the time. The factory,
which is focused on the manufacturing of small city cars (Toyota Aygo,
Peugeot 107 and the Citroen C1) currently employs 3,200 people and
its annual production reaches 300,000 vehicles.
To date, the largest foreign direct investment in the history of the
country is represented by the new production plant of leading Korean
car producer Hyundai, who set up in Nošovice in the Moravia-Silesia
region, close to the Slovak borders (another Korean car producer, KIA,
is situated in Žilina approximately 80 km from Nošovice). It is the first
manufacturing plant of Hyundai in Europe and the serial production
started there in November 2008, after only 19 months of construction.
The annual production of five car models, especially designed for the
European market, totals 300,000. This major investment of the Korean
producer initiated a huge inflow of OEM suppliers, first closely tied to
Hyundai and KIA, but later reaching other producers within and also
beyond the Czech Republic.
15
OEM parts suppliers
glass production. AGC Automotive Czech, a successor of a traditional
glass producer from Northern Bohemia, Sklo Union in Teplice, is
nowadays the largest producer of flat glass in CEE for the construction
and automotive sectors. Fezko Strakonice, once a world recognised
producer of hats, is now a part of Johnson Controls and a supplier of
textiles for car interiors to leading car producers including Škoda Auto,
Opel, VW and Ford.
It might sound like a bold statement but the spectrum of OEM parts
production in the country indicates that almost every single part of a car
is being produced in the Czech Republic. Out of 50 leading European
OEM parts suppliers 36 are producing in the country. For example,
TPCA uses 80% of spare parts for its car production in their plant in
Kolin from Czech based producers. The manufacturers include both
major multinationals who entered the country in the past two decades
as well as traditional Czech companies.
Out of the Top 100 global OEM parts suppliers,
there are 69 companies based and producing
in the Czech Republic.
The first and major inflow of automotive suppliers was originally
connected to Škoda production in Mladá Boleslav, in the Central
Bohemian region. The area around Mladá Boleslav and nearby Liberec
region have attracted a number of leading companies from the sector,
TRW in Řepov and Stará Boleslav, Mahle Behr in Mnichovo Hradiště,
Continental in Brandýs nad Labem, Faurecia, Magna, Johnson
Controls in Mladá Boleslav and FIAMM, an Italian producer who took
over local company, Akuma. The establishment of the TPCA plant in
Kolín, reinforced the interest of international OEM parts producers
to enter the Czech market. The third major impulse represented the
opening of the Hyundai production site in Nošovice.
The strongest and most developed OEM parts manufacturing sector
in the Czech Republic includes tyres, rubber and plastics production,
which draws upon the long history of the Czech and Czechoslovakian
companies active in this field, such as: Mitas, Gumárny Zubří and
Barum, now part of the Continental group. The newest addition to
this subsector is Korean tyre producer Nexen who will be investing
1 billion USD into a new plant in Žatec. Interior and seating producers,
including: Faurecia, Hyundai Mobis and Johnson Controls, represent
another strong group of manufacturers supplying parts not only to
Czech automotive producers but, also to other manufacturers outside
of the country. One recent, large investment, included Johnson Controls
who decided to move its production of car seating from Germany to
CTPark Bor in the Pilsen region. The plant will supply car seating to
BMW factories in Germany and to domestic producers as well.
Automotive electronics and brake systems production is another
thriving part of OEM production in the country. Brembo, an Italian
supplier of brakes systems to Porsche, BMW, Mercedes and Land
Rover opened its 25,000 m2 plant in Ostrava, Northern Bohemia
in 2011. This year, they extended their premises by another 30%.
Lighting systems and HVAC are also represented by a large number
of producers including strong players like Visteon Autopal and Mahle
Behr. One of the largest, recent investments into the automotive sector
included Hyundai Mobis who, in mid-2014, announced its decision to
invest 120 million USD into a new factory for the production of lighting
systems in Mošnov, in the vicinity of the Hyundai car production site in
Northern Moravia.
The booming automotive sector also represented an opportunity for
once renowned but, recently subdued sectors; such as textiles and
Top 50 European OEM parts suppliers,
based on 2012 European OEM parts sales
(Manufacturing in the Czech Republic marked in red)
Robert Bosch
Continental
Faurecia
Magna International
ZF Friedrichshafen
Johnson Controls
BASF
Valeo
Delphi Automotive
TRW Automotive
Lear
Gestamp Automocion
Magneti Marelli
Benteler Automobiltechnik
HELLA KGaA Hueck & Co.
Denso
BorgWarner
Brose Fahrzeugteile
Schaeffler
Aisin Seiki
Mahle
Behr
Autoliv
Plastic Omnium
Draeximaier Group
Eberspaecher Holding
GKN PLC
Hyundai Mobis
Leoni
Visteon
Federal-Mogul
Grupo Antolin
IAC Group
Honeywell
Tenneco
Dana Holding
Goodyear Tire & Rubber
KSPG
Webasto
WABCO
Takata
JTEKT
Cummins
Leopold Kostal
Alpine Electronics
NTN Corp.
TI Automotive
TrelleborgVibracoustic
Bayer MaterialScience
Georg Fischer Automotive
0
5 000
10 000
15 000
20 000
Source: JLL based on Supplement to Automotive News, June 2013
25 000
Selection of Manufacturers – Automotive Sector
Bakov nad Jizerou
Faurecia Exhaust Systems
Čenkov
KOSTAL Kontakt Systeme
Rudná
L&L Products
Hořovice
KOSTAL CR
Saint-Gobain Sekurit ČR
Kladno
Keihin Thermal Technology Czech (Showa
Aluminium Czech)
Kněžmost
Kautex Textron Bohemia
Kolín
Lear Corporation Czech Republic
MC Syncro Kolín
TPCA (Toyota Peugeot Citroen Automobile)
Krupka
Auto-Kabel Krupka
Řepov
TRW Carr
Holýšov
Evobus Bohemia
Ústí nad Labem
ArcelorMittal - Stainless
Automotive- -Tubes Czech
Republic
KS Kolbenschmidt Czech
Republic
Frýdlant
Thermolast
TRW Automotive Czech
Žatec
Grammer CZ
Gestamp Louny
HITACHI Automotive
Systems Czech
HP-Pelzer
JC Interiors Czechia
Koito Czech
Neturen
Nexen Tire
Hrádek nad Nisou
KSM Castings (CITIC Dicastal)
Frýdlant
Jilemnice
BRANO GROUP
Plzeň
Alfmieier CZ
Boshoku Automotive Czech
DAIHO
Fuji Koyo Czech
HP-Pelzer
JTEKT Automotive Czech Plzen
MTX
Specialty Coating Systems
Viza Auto CZ
Yazaki Wiring Technologies Czech
Tachov
Grammer CZ
Johnson Controls
Dačice
Prachatice
Nejdek
Metalis Nejdek
Witte Nejdek
Chotěšov
MD Elektronik
Ostrov u Stříbra
Ideal Automotive
Neumatic CZ
Dolní Chrastava
Grupo Antolin Bohemia
Hodkovice nad Mohelkou
Tenneco Monroe Czechia
Nový Bor
Brano Group
Smržovka
Kaipan
Chrastava
Benteler ČR
Stráž nad Nisou
Benteler ČR
PEKM Kabeltechnik
Jablonec nad Nisou
A.Raymond Jablonec
Benteler ČR
Megatech Industries Jablonec
TI Group Automotive Systems
TRW Automotive Czech
Louny
Aisan Bitron Czech
CIE Automotive CZ
Fujikoki Czech
NACHI Czech
Grupo Antolin-CML
Přeštice
International Automotive Components
Group (IAC)
Nýřany
Faurecia Automotive Czech Republic
Rumburk
Teplice
AGC Automotive Czech
Snoeks Automotive CZ
Liberec
CleverGlass
DENSO Air Systems Czech
Fehrer Bohemia
Inteva Products Czech Republic
Knorr Bremse Systémy pro užitková
vozidla ČR
LIPLASTEC
Magna Exteriors & Interiors
(Bohemia)
Matador Automotive ČR
Sarnamotive Bohemia
Stráž pod Ralskem
Johnson Controls Automobilové
součástky
Turnov
Grupo Antolin Turnov
KAMAX
Neumatic CZ
Hrádek nad Nisou
Stráž nad Nisou
Smržovka
Nový Bor Chrastava
Stará Boleslav
Zákupy
Liberec
Stráž pod Ralskem
TRW Carr
International Automotive
Adršpach
Chabařovice Ústí nad Labem
Zákupy Jablonec nad Nisou Vrchlabí
Components Group (IAC)
Krupka
Turnov
Týnec nad Sázavou
Česká Lípa
Trutnov
Litvínov
Jilemnice
JAWA
Mnichovo
Hradiště
Červený
Kostelec
Teplice Velké
Dolní Kalná
Březno
Kněžmost
Bělá pod
Jirkov
Jičín
Lovosice
Unhošť
Bakov
Bezdězem
Most
Chomutov
nad Jizerou
Furukawa Electric Autoparts Central Europe
Jaroměř
Roudnice
Mladá Boleslav Řepov
České Meziříčí
Louny nad Labem
Klášterec nad Ohří
T.RAD Czech
Libáň
Kadaň
Mělník
Benátky nad Jizerou
Kralupy
Kvasiny
Hanušovice
Úvaly u Prahy
Žatec
Brandýs
Nejdek
nad Vltavou
Rychnov
Lysá nad Labem
nad Labem
Essa Czech
Kostelec nad Orlicí
nad Kněžnou
Krnov
Slaný
Nymburk
Podbořany
Štíty
Kladno
Hranice u Aše
Zdice
Přelouč Pardubice Choceň
Libchavy
Rychvald Karviná
Unhošť
KOSTAL CR
Úvaly
Lanškroun Zábřeh
Kolín
Rakovník Rudná
Moravany
Hradec nad Moravicí
PRAHA
Český Těšín
Ostrava
Zruč nad Sázavou
Vysoké Mýto Česká
Žebrák
Zdice
Uničov
Asmo Czech
Mohelnice
Frýdek-Místek
Třebová
TRW Autoelektronika
Třinec
Kopřivnice
Hořovice
Hlinsko Svitavy
Týnec nad Sázavou
Dýšina
Třemošnice
Nový Jičín
Nošovice
Komárov
Litovel
Tachov
Moravská Třebová
Žebrák
Ostrov
Frenštát
pod
Radhoštěm
Hranice
Plzeň
Mubea
u Stříbra
Jevíčko Senice
Zruč nad Sázavou
na Hané Olomouc
Havlíčkův Brod
Nýřany
Valašské Meziříčí
Muramoto Manufacturing Europe
Příbram
Jiřice
Chotěšov
Valeo Climate Contro
Bor u Tachova
Lipník nad
Přerov
Zubří Rožnov pod Radhoštěm
Bečvou
Přeštice
Holýšov
Žďár
Humpolec
Mírovice
Vsetín
nad Sázavou
Ivanovice Kroměříž
Blansko
Domažlice
Tábor
na Hané
Jihlava
Blatná
Klatovy
Zlín
Batelov
Otrokovice
Velké Meziříčí
Vyškov
Soběslav
Brno
Písek
Karlovy Vary Region
Janovice nad Úhlavou
Uherské Hradiště Bojkovice
Okříšky
Strakonice
Oslavany
Hranice u Aše
Bzenec
Uherský Brod
Dýšina
Gerresheimer Wilden Czech
Janovice nad Úhlavou
OLHO-Technik Czech
Litvínov
INNO-COMP Bohemia
Slaný
Mitsubishi Electric Automotive Czech
Vimperk
České
Budějovice
Prague Region
Jemnice
Havlíčkův Brod
Futaba Czech
Blansko
BLATA
České Budějovice
MOTOR JIKOV
Robert Bosch
České Velenice
Magna Cartech
Dačice
TRW - DAS
Kamenice nad Lipou
Edscha Automotive Kamenice
Prachatice
InTiCa Systems
Soběslav
BANES
MOTOR JIKOV
Strakonice
ČZ
DURA Automotive CZ
Ideal Automotive
Johnson Controls Fabrics
Strakonice
Mahle Filter Systems
Metal Progress Strakonice
Písek
Tábor
Aisin Europe Manufacturing Czech BRISK Tábor
Faurecia Automotive Czech Republic Greiner Perfoam
Faurecia Components
s.n.o.p. cz
Vimperk
Heyco Werk ČR
SAK
Humpolec
Valeo Compressor Europe
Jemnice
Motorpal
Jihlava
Automotive Lighting Jihlava
Bosch Diesel
Motorpal
Kosyka
Tesla Jihlava
Okříšky
Fraenkische CZ
Mann Hummel CZ
Velké Meziříčí
Agados
Construct Czech
Motorpal
Cooper-Standard
Automotive Česká
republika
TOKOZ
Adršpach
Continental Automotive Czech Republic
Červený Kostelec
Saar Gummi Czech
Brandýs nad Labem
C.I.E.B. Kahovec
Česká Třebová
Bohm Plast-Technik
Hlinsko
Megatech Industries Hlinsko
Dolní Kalná
Takata - Petri Parts
Jaroměř
KARSIT HOLDING
Jičín
RONAL CR
Tucker
Choceň
Autoneum CZ
Composite Components
Rieter Automotive CZ
Jevíčko
GST Automotive Safety Czech
Rehau
Kostelec nad Orlicí
Federal-Mogul Friction Products
Lanškroun
Schott CR
Kvasiny
Škoda Auto
Libchavy
SOR Libchavy
Libáň
Magna Exteriors & Interiors (Bohemia)
Moravany
Acerbis Czech
Nový Jičín
Varroc Lighting Systems
Moravská Třebová
ATEK
Treboplast (Industrias Tajo)
Rehau
Rychnov nad Kněžnou
Assa Abloy Czech & Slovakia
Johnson Controls Automobilové součástky
Magna Seating
Trutnov
Vrchlabí
Škoda Auto (Volkswagen Group)
Hluk
Zlín Region
Jiřice
Connaught Electronics
CZ
Pardubice Region
Hradec Králové Region
Pardubice
Faurecia Interiors Pardubice
JTEKT Automotive Czech Pardubice
KYB Manufacturing Czech
Panasonic Automotive Systems Czech
RONAL CR
Přelouč
Kiekert CS
Svitavy
Fibertex
Olomouc Region
Hanušovice
ZKL
Hranice
AVL Čechy
Henniges Automotive
Třemošnice
Electropoli-Galvia
Vysoké Mýto
Iveco Czech Republic
Prostějov
Maier CZ
Mubea HZP
Mubea IT Spring Wire
Přerov
PSP Speciální strojírna
Lipník nad Bečvou
MetalPlast Lipník nad Bečvou Senice na Hané
PANAV
Litovel
BRANO GROUP (Deltacol CZ) Štíty
Klein & Blažek
Mohelnice
Hella Autotechnik Nova
Uničov
BRANO GROUP
Olomouc
Hexopol Compounding
Koyo Bearings Česká republika
OTSUKA-BRANO
Zábřeh
HDO
Břeclav
South Moravian Region
Batelov
Motorpal
Blatná
DURA Automotive CZ
Tesla Blatná
Mikulov
České Velenice
Vysočina Region
South Bohemian Region
Hodonín
Byňov
Praha
PMP PAL
Satrema
TRW Volant Horní Počernice
Pilsen Region
Domažlice
BEHR Thermot-tronik Czech
Lovosice
Aoyama Automotive Fasteners Czech
Fukoku Czech
KOS WIRE EUROPE
Tokai Rika (TRCZ)
Most
AFSI Europe
Grammer CZ
Nemak Czech Republic
Recticel Automotive (RAI Most)
Kadaň
Donaldson Industrial CR
Oiles Czech Manufacturing
Roudnice nad Labem
Thermal Products Czech Republic Johnson Controls Automobilové
součástky
Donaldson Czech Republic
Rumburk
Toyoda Gosei Czech
Benteler Automotive Rumburk
BOS Automotive Products CZ
Rakovník
BRANO GROUP
Eberspacher Rakovník
Valeo Autoklimatizace
Březnice
Zbrojovka Březnice
Bor u Tachova
Autoneum CZ
Eissmann Automotive Česká Republika
Ideal Automotive
Rieter Automotive CZ
Technické pružiny Scherdel
Jirkov
Hillside Plastics
Příbram
AIR Čenkov
DUVE ČR
KARSIT HOLDING
Brandýs nad Labem
Mladá Boleslav
Autoliv B.V. & Co.
Faurecia Interior Systems
HP-Pelzer
Magna Seating
Johnson Controls
Recticel Interiors CZ
SAS Autosystemtechnik
Škoda Auto (Volkswagen Group)
Yapp Czech Automotive Systems
SAI Automotive Bohemia
Tower Automotive Czech
Trelleborg Automotive Czech Republic
Yapp Czech Automotive Systems
Chomutov
Eaton Industries
Magna Seating Chomutov
Nymburk
Magna Exteriors & Interiors (Bohemia)
LINDE + WEIMANN CZ
UACJ Extrusion Czech
Mělník
MTX
Chabařovice
Magna Seating
Mnichovo Hradiště
Hella - Mahle Behr - Plastic Omnium (HBPO
Czech)
Mahle Behr Mnichovo Hradiště
Bělá pod Bezdězem
Tiberina Automotive Bělá
Lysá nad Labem
LINDE + WEIMANN CZ
Česká Lípa
EKOBUS
Fehrer Bohemia
Grammer CZ
Johnson Controls Autobaterie
Johnson Controls Automobilové součástky
Ústí nad Labem Region
Central Bohemian Region
Komárov
BUZULUK
Liberec Region
Brno
Daido Metal Czech
IFE-CR
IGE-CZ
Mergon Czech
Břeclav
Gumotex
LINDE + WEIMANN CZ
Bzenec
AVX Czech Republic
Hodonín
International Automotive Components
Group (IAC)
Ivanovice na Hané
Fischer Automotive Systems
Mikulov
Gebauer A Griller Kabeltechnik
Nichias Czech
Oslavany
Metaldyne
Vyškov
SMC Industrial Automation
Bojkovice
Zeveta Bojkovice
Moravia Silesia Region
Uherský Brod
Mann Hummel Innenraumfilter CZ
Teknia Uherský Brod
Hluk
Halla Visteon-Autopal Czech Valašské Meziříčí
Republic
Antolín-CIE Czech Republic
CIE Automotive CZ
Kroměříž
PWO Unitools CZ
Magneton
Plastika
Vsetín
Indet Safety Systems
Otrokovice
Nippon Kayaku CZ
Continental Barum
MITAS
Zlín
Tomatex Otrokovice
D PLAST - EFTEC
Rožnov pod Radhoštěm
Brose CZ
Robert Bosch
ZPV
Uherské Hradiště
Schlote-Automotive Czech
Zubří
BRANO GROUP
Gumárny Zubří
Český Těšín
Donghee Czech
Pyeong Hwa Automotive Czech
Nový Jičín
Halla Visteon-Autopal Czech Republic
Ostrava
Frenštát pod Radhoštem
Cromodora Wheels
Continental Automotive Czech Republic BRANO GROUP (Deltacol CZ)
Siemens Automobilové Systémy
Brembo Czech
Cirex CZ
Frýdek-Místek
CTS Czech Republic
Hanwha L&C Czech
Daechang Seat
Goodyear Engineered Products
Frýdlant nad Ostravicí
BATZ Czech
Grupo Antolin Ostrava
Hayes Lemmerz Autokola
HP-Pelzer
BRANO GROUP
ITT Corporation
KES - kabelové a elektrické systémy
Karviná
Mahle Behr Ostrava
Sejong Czech
PLAKOR Czech
Stant Manufacturing
Rossignol Galvanik CZ
Kopřivnice
Schroeder CZ
Brose CZ
Sungwoo Hitech
DURA Automotive Systems CZ
UFI Filters
Erich Jaeger
Rieger Automotive International
Rychvald
Rochling Automotive Kopřivnice
Halla Visteon-Autopal Czech Republic
Tawesco
Varroc Lighting Systems
Krnov
Třinec
Erdrich Umformtechnik
Daechang Seat
Matador - Dongwon CZ
Nošovice
Hyundai Motor Manufacturing Czech
Huyndai Dymos
Hyundai Mobis Czech
18
FMCG sector
Since the early 1990’s, when the country was undergoing an economic
transformation, the long manufacturing tradition combined with a
skilled workforce and local consumer base, attracted a large number
of international investors to the then state owned companies. Some
of the first pioneers included Procter & Gamble who acquired Rakona
Rakovník, a traditional soap producer, in 1991 and Coca-Cola and
Nestlé that entered Pražské Sodovkárny and Pražské Čokoládovny
respectively in 1992. It was the same year when Phillip Morris bought
the state-owned Tabák company in Kutná Hora through privatisation.
The strategic location in the heart of Europe, favourable labour costs
and the skilled and motivated labour pool, represented key drivers for
brand new investment in the Czech Republic. Over the next twenty
years, the number of foreign investors greatly increased and their initial
investments were multiplied by upgrading facilities, building new plants,
distribution and R&D centres.
One of the best examples of a successful investment which grew over
the years was the establishment of a production plant by Danish toy
‑producer LEGO, who opened in Kladno, near to Prague in 2000. Over
the following years, the company further invested into three production
plants, moving part of its production from Denmark to the Czech
Republic. During this time, the company also set up a 100,000 m2
global distribution warehouse near Prague and have established an
R&D centre. In 2015, they are planning to open a fourth factory and
increase the number of employees from the current 2,000 up to 3,000.
Leading 25 FMCG companies worldwide in 2012,
based on net sales (in billion U.S. dollars)
(Manufacturing in the Czech Republic marked in red)
Nestlé
Procter & Gamble
Unilever
Pepsico
Coca & Cola Company
AB Inbev
JBS
Mondelez
Archer Daniels Midland
Tyson Foods
Philip Morris International
L'Oreal
Danone
British American Tobacco
Heineken Holding
Japan Tobacco
Asahi Breweries*
Kirin Breweries
The attractiveness of the Czech FMCG market is proven by the
presence of eight out of the top 10 global producers on the local
market. Besides those already mentioned, these include the large soft
beverages producer Pepsico with two manufacturing sites, in Prague
and Teplice nad Metují in Eastern Bohemia and Mondelez (ex-Kraft
Foods CR), who is operating four plants in the country, two in Moravia –
Opava and Valašské Meziříčí and two in Bohemia – Mariánské Lázně
and Lovosice.
The majority of the largest international producers have entered the
market via the purchase of one of the traditional and well established
local brands, including production plants and qualified staff. Gradually
they have incorporated these production facilities into their own
portfolio and have very often extended the line of products with their
established brands. After the Czech Republic’s entry into the EU,
the number of investments grew with green-field projects such as
MARS Czech opening a new plant in Central Bohemia in 2006, Tivall
(Nestlé) establishing a manufacturing site in Northern Bohemia in 2007
and Hill’s Pet Nutrition (Colgate Palmolive) investing into brand new
production premises in Southern Bohemia in 2010.
Other strong international FMCG brands producing in the Czech
Republic include among others: cheese producers Fromageries
Bel and Bongrain, Danone, Bidvest, La Lorraine, Kimberly-Clark,
Euroserum, Tereos TDD, Lyckeby Amylex and pets food brands /
producers Brit (Vafo) and Propesko (Provimi).
Kraft Foods
Altria Group
Colgate Palmolive
Diageo
SAB Miller
General Mills
Net sales in billion U.S. dollars
Kimberly Clark
0
20 000 40 000 60 000 80 000 100 000
*Asahi Super Dry is produced in licence in Pivovary Staropramen of Molson Coors
Brewing Company
Source: JLL based on Statista, 2014
19
Location
The interest in Czech beer is also increasing abroad with export rising
by 9% in 2013 and includes new markets such as South Korea.
FMCG manufacturing facilities are mainly concentrated close to the
large cities of Prague, Brno, Pilsen, Olomouc and České Budějovice,
due to proximity to large consumer bases and access to workforce.
In addition, the excellent infrastructure of the country enables
manufacturing sites to be close to natural sources. Parts of the country
which are strong in agriculture, such as Southern Bohemia, Southern
Moravia, Vysočina, Central Bohemia and the Olomouc Regions are well
known for production of dairy and meat products. Southern Moravia is
also famous for wine production and fruit and vegetable processing.
The western part of the country, Karlovy Vary and the Pilsen regions,
are well known for mineral waters (Mattoni, Korunní), destilates (Jan
Becher – Karlovarská Becherovka Pernod Ricard, Plzeň Stock Božkov)
and sparkling wine production (Bohemia Sekt Starý Plzenec).
Strong local producers
In addition to the strong multinationals, domestic producers also play
a very important role in the food and beverages industry. One of the
strongest and largest producers is Agrofert holding which operates
a wide spectrum of companies from meat processing and dairy and
to bakeries and frozen food production. Among these are renowned
Kostelecké Uzeniny, Vodňanská drůbež, Olma, Penam, Profrost
and Mlekárna Hlinsko. Another important domestic player is dairy
producer – Madeta, with plants situated in six different locations in
Southern Bohemia. Hamé, a traditional Czech producer of tinned
vegetables, ketchups, children’s food and paté has seven production
plants in the south-eastern part of the country. EMCO is the largest
Czech muesli producer with a more than 50% share of the local muesli
market. Another strong local producer is Kofola, a manufacturer of
a popular soft drink which was almost forgotten but, thanks to local
investors, managed to successfully return to the Czech market.
Breweries
A special category within the food and beverages sector in the Czech
Republic is held by breweries. In 2013, the total beer production in the
country rose by 0.6 % to 19.3 mil hectolitres. Czechs, according to some
rankings, are the largest consumer of beer per capita in the world. Each
inhabitant who drinks on average 144 litres per annum, has a large
variety of different tastes and brands to choose from.
The long tradition and global reputation of Czech beer production was
proven once again in early summer 2014 with two new entries of major
investors from the brewery sector: Carlsberg announced its investment
in Žatecký pivovar and Anheuser-Busch (AB inBev) acquired Pivovar
Samson in České Budějovice, the town where the famous Budějovický
Budvar (Budweiser), is produced in a state owned brewery and is a
direct competitor to AB inBev. At the same time, the owner of Pivovary
Lobkowicz brewery launched its IPO on the Prague Stock Exchange.
There are approximately 50 large and 215
micro‑breweries in the Czech Republic.
Other large multinational investors active in the country include
SABMiller, the owner of five breweries including the famous Pilsner
lager (Plzeňský Prazdroj), Heineken (Královský pivovar Krušovice,
Pivovar Starobrno and Pivovar Velké Březno) and Molson Coors
Brewing Company (Staropramen Praha and Pivovar Ostravar).
Small to mid-size local breweries continue to play a strong role such
as Rodinný Pivovar Bernard in Humpolec which started out on a small
scale and managed to develop in to one of the most important players
on the market.
Retail distribution
Hypermarket operators, mostly Dutch and German chains, were
pioneers in the Czech retail market. The development of the first
hypermarkets started in the mid-1990s, when international retailers
were taking advantage of opportunities arising in the transitional
booming Czech economy. The first hypermarket in the country was
opened by German chain Globus. The first retail schemes were
hypermarket anchored shopping centres consisting of a hypermarket
and a service line. Dutch retailer Ahold, owner of the Albert chain, is
currently the most active retail operator with regard to expanding its
foodstore chain on the market. In 2014, Ahold acquired its competitor
Interspar in the Czech Republic and currently operates more than
330 hypermarkets and supermarkets across the country, including the
former Interspar units.
Major food operators in the Czech Republic
Type
Chains
Hypermarkets
Albert (Netherlands), Globus (Germany), Kaufland (Germany), Tesco (UK)
Supermarkets
Albert (Netherlands), Billa (Austria), Tesco (UK)
Discounters
Lidl (Germany), Norma (Germany), Penny Market (Germany)
Selection of Manufacturers – FMCG Sector
Benešov
Schreiber Foods (Danone)
Nelahozeves
Wet Wipes International
Brandýs nad Labem
United Bakeries
Byšice
Orkla ASA (Vitana)
Poděbrady
Poděbradka
Polabské Mlékárny
Liberec Region
Poříčí nad Sázavou
MARS Czech
Hrádek nad Nisou
Drylock Technologies
Radonice
Němcova Selská Mlekárna
Lovosice
Mondelez (Deli)
Dobrovice
Tereos TTD (Lihovar Dobrovice)
Tereos TTD (Cukrovar Dobrovice)
Kladno
La Lorraine Bakery Group
LEGO Production
Liberec
United Bakeries
Rakovník
Procter & Gamble
Roudnice nad Labem
Orkla ASA (Vitana)
Klášter Hradiště nad Jizerou
Pivovary Lobkowicz (Pivovar Klášter)
Sedlčany
Bongrain (Povltavské Mlekárny)
Svijany
Pivovar Svijany
Kralupy nad Vltavou
Bidvest Kralupy
Krušovice
Heineken ČR (Královský Pivovar Krušovice)
Kutná Hora
Philip Morris ČR
Velké Popovice
SABMiller (Pivovar Velké Popovice)
Hrdly
Emco
Hrobčice
Shanghai MaLing Czech
Karlovy Vary Region
Cheb
Playmobil CZ
Karlovy Vary
Pernod Ricard (Jan Becher Karlovarská Becherovka)
Klimentov
PENAM
Korunní
Karlovarská Korunní
Rumburk
United Bakeries
Teplice
Tivall CZ (Nestlé)
Velké Březno
Heineken ČR (Pivovar Velké Březno)
Varnsdorf
Orkla ASA (Vitana)
Žatec
Carlsberg (Pivovar Žatec)
United Bakeries
Kyselka
Karlovarské Minerální Vody
(Mattoni)
Pilsen Region
Horažďovice
Lyckeby Amylex
Klatovy
Mlekárna Klatovy
Mariánské Lázně
Mondelez (Kolonáda)
Plzeň
SABMiller (Plzensky Prazdroj)
SABMiller (Pivovar Gambrinus Plzeň)
STOCK Plzeň-Božkov
United Bakeries
Starý Plzenec
Bohemia Sekt Starý Plzenec
Kyšice u Unhoště
RYOR
Městec Králové
KOH-I-NOOR HARDMUTH
Blatná
Frutana
Sušice
SPAK Foods
Byňov
Dobrá Voda
Strakonice
United Bakeries
České Budějovice
AB InBev (Měšťanský pivovar České Budějovice)
Budějovický Budvar
KOH-I-NOOR HARDMUTH
Madeta
PENAM
Viscofan CZ
Záruba Food
Tábor
Friall
Swallowfield
Jindřichův Hradec
Fruko-Schulz
Madeta
Mírovice
Vodňanská drůbež
Pelhřimov
Madeta
Planá nad Lužnicí
Kostelecké uzeniny
Madeta
Dolany
LN Group
Otinoves
Mlekárna Otinoves
Budčeves
Aveflor
Horní Moštěnice
Molinari (Hanácká Kyselka)
Tereos TTD (Cukrovar České
Meziříčí)
Prostějov
PENAM
Profrost
Litovel
Šumperk
Kimberly-Clark
Europasta (Zátkovy těstoviny) PENAM
Jaroměř
Kimberly-Clark
Nové Město nad Metují
Detecha
Teplice nad Metují
PEPSICO CZ
Vysoký Chlumec
Pivovary Lobkowicz (Pivovar Vysoký Chlumec)
Police nad Metují
Merkur
Třebechovice pod Orebem
Union Cosmetics
Rumburk
Olomouc Region
Broumov
KOH-I-NOOR HARDMUTH
Pardubice Region
Třeboň
Pivovar Ťřeboň
Veselí nad Lužnicí
Efko cz
Provimi (Propesko)
Veselí nad Lužnicí - Řípec
Madeta
Velký Ratmínov
Vafo (Brit)
Vimperk
Vimperská Masna
Vodňany
Vřesce
Emco
Vysočina Region
Humpolec
Rodinný pivovar Bernard
Prague Region
Praha
ASTRID Cosmetics
Coca-Cola Česká republika
HELLADA
Mlekárna Pragolaktos
Molson Coors Brewing Company (Pivovary Staropramen)
PENAM
PEPSICO CZ
Shanghai MaLing Food
United Bakeries
Vafo (Brit)
Jemnice
Tata Global Beverages CR (Jemča)
Jihlava
Pivovary Lobkowicz (Pivovar Jihlava)
Kostelec
Kostelecké uzeniny
Polná
Mlekárna Polná
Přibyslav
Bongrain (Pribina)
Telč
Krahulík - Masozávod Krahulčí
Třebíč
PENAM
Lobodice u Tovačova
LN Group
Hlinsko
Mlekárna Hlinsko
Vrbátky
Olomouc
Cukrovar Vrbátky
Archer Daniels Midland
Europasta (Zátkovy těstoviny)
Zábřeh na Moravě
Hamé (Apetit Hněvotín)
OLMA
Hanácký Masokombinát
Nestlé (Zora Olomouc)
OLMA
PENAM
Chrudim
Pivovary Lobkowicz (Pivovar Rychtář)
Tereos TTD (Lihovar Chrudim)
Jevíčko
Czech Blades
Letohrad
Efko
Želetava
Fromageries BEL (Bel Sýry Česko)
Blansko
Mlekárna Olešnice
Pivovary Lobkowicz (Pivovar
Černá Hora)
Brno
Dermacol
Emco
Heineken ČR (Pivovar Starobrno)
PENAM
United Bakeries
Břeclav
Hamé (FRUTA Podivín)
PENAM
Saloos
Bzenec
Hamé (PIKA Bzenec)
Zámecké vinařství Bzenec
Hodonín
Bongrain (TPK Hodonín)
Hustopeče
Hill's Pet Nutrition
Lednice
Chateau Lednice
Uničov
United Bakeries
Helvíkovice
Dibaq
Hamé (BAPA Letohrad)
Varnsdorf
Liberec
Hrádek nad Nisou
Pardubice
Ústí nad
United Bakeries
Svijany
Broumov
Labem
Mnichovo Hradiště
Teplice nad Metují
Teplice
Velké Březno
Kofola
Vysoké Mýto
Chabařovice Klášter Hradiště
Police nad Metují
Hrobčice
Tomil
Lovosice nad Jizerou
Mnichovo Hradiště
Hrdly
Chomutov
Nové Město nad Metují
Jaroměř
Dobrovice
Budčeves
Roudnice nad Labem
Byšice
Korunní
Nelahozeves
Žatec
Třebechovice
pod Orebem
Městec
Králové
Brandýs nad
Krnov
Kralupy nad Vltavou
Karlovy Vary
Labem
Letohrad
Krušovice
Kladno
Poděbrady
Pardubice
Kyselka
Bohumín
Radonice
Karviná
Opava
Helvíkovice
Šumperk
Cheb
Ostrava
Rakovník
PRAHA
Kyšice
Mariánské Lázně
Vysoké Mýto
Zábřeh
Klimentov
Uničov
Kutná Hora
Chrudim
Velké Popovice
na Moravě
Nošovice
Poříčí nad Sázavou
Příbor
Hlinsko
Plzeň
Jevíčko
Benešov
Stříbro
Dolany
Kunín
Litovel
Olomouc
Sedlčany
Starý Plzenec
Přibyslav
Vrbátky
Žďár
Vysoký Chlumec
Horní
nad Sázavou
Prostějov
Moštěnice
Humpolec
Polná
Otinoves
Holešov u Kroměříže
Tišnov
Mírovice
Lobodice u
Tábor
Vřesce
Jihlava
Blansko Tovačova
Blatná
Horažďovice
Planá nad Lužnicí
Kostelec
Kroměříž
Zlín
Klatovy
Brno
Rosice
Strakonice
Řípec
Velký
Uherské
Hradiště
Želetava
Ratmínov
Modřice
Třebíč
Sušice
Protivín
Uherský Brod
Bzenec
Veselí nad
Vodňany
Lužnicí
Jindřichův Hradec
Kunovice
Hustopeče
České
Budějovice
Třeboň
Hodonín
Jemnice
Velké Pavlovice
Znojmo
Vimperk
Lednice
Boršov
Velké Bílovice
nad Vltavou
Mikulov
Protivín
Břeclav
Český Krumlov
Valtice
Pivovary Lobkowicz (Pivovar Protivín)
Byňov
Stříbro
EUROSERUM
Český Krumlov
Madeta
Schwan Cosmetics CR
Schwan-STABILO ČR
Bohumín
Unilever (Bochemie)
Emco
Karviná
United Bakeries
Krnov
Kofola
Kunín
Mlekárna Kunín
Nošovice
SAB Miller (Pivovar Radegast)
SAB Miller (Pivovar Nošovice)
Opava
Bidvest Opava
Mondelez (Opavia)
Ostrava
Molson Coors Brewing Company (Pivovar Ostravar)
PENAM
Příbor
Amoené
Zlín Region
Mikulov
Vinařství Mikrosvín Mikulov
Holešov u Kroměříže
Nestlé (SFINX Holešov)
Modřice
Kroměříž
Kmotr - Masna Kroměříž
Tišnov
VITAR
Kunovice
Hamé
Rosice
PENAM
Uherské Hradiště
Hamé (OTMA - Sloko)
Hamé (Slovácká Fruta)
Pivovary Lobkowicz (Pivovar Uherské Hradiště)
Valtice
Vinné sklepy Valtice
Velké Bílovice
Vinařství Velké Bílovice
Uherský Brod
United Bakeries
Velké Pavlovice
České vinařské závody
Mlekárna Valašské Meziříčí
Mondelez (Dadák CZ)
Znojmo
United Bakeries
Znovín Znojmo
Zlín
Rudolf Jelinek Vizovice
PENAM
22
Home Appliances, ICT and Electronics
Electron Microscopes
The Czech and Czechoslovak electrical engineering and electronics
sector was one the most highly developed within the former Eastern
bloc between the 1960’s and 1980’s. Its advances in technology
and cutting edge were gradually weakened, compared to Western
countries, by the lack of investment into innovation. However, the large
technology base that was created by the thousands of engineers and
state institution researchers employed in the industry, provided a strong
base for future development potential of this sector in the country.
The Czech Republic was one of the first countries in the world to build
an electron microscope back in the 1950’s and continues to be one of
the world leaders of this high-tech manufacturing, supported by R&D
activities. TESCAN, a Czech company that was established in 1991 by
former highly qualified engineers of TESLA Brno, is today one of the
global suppliers of electron microscopes. Brno, due to its tradition in
electron microscope production, supported by the presence of technical
universities, was selected as the local branch for FEI Company, a
global leader in electron microscopes production, back in 1993.The
Brno branch, supported by the local R&D Centre, has developed into
one of the fastest growing divisions of FEI worldwide, increasing its
capacity from 10% to 60% of the company’s total production.
ICT and Home Appliances
In the past 20 years, ICT products have become one of the most
important export commodities on the local market, covering ca. 1/7 of
the total export (in 2012). This makes the Czech Republic not only one
of the largest exporter of ICT in Europe but also worldwide. Based on
numbers from 2012, the country was the third largest exporter of ICT
products in Europe.
The export of ICT is dominated by computers and peripherals with an
almost 50% share, followed by consumer electronics, communication
devices and electronic components. The largest local computer
producers include AT Compus (member of AB) and eD’system Czech
(producing brand LYNX) both located in Ostrava.
Behind the growth of the ICT sector in the Czech Republic there is a
long tradition of production, such as the Tesla group dating back to
1921, as well as strong foreign investments over the past 20 years from
producers such as Panasonic in Pilsen and Pardubice, Changhong in
Nymburk, Bang & Olufsen in Kopřivnice, Alps Electrics and Foxconn.
These are only a few examples of Czech ICT industry development.
FOXCONN CZ:
established its operations in the Czech Republic in 2000, setting up
a central regional production hub for Europe in the city of Pardubice;
in 2008, opened the second manufacturing plant in Kutná Hora after
Approximately every fourth electron microscope
in the world is manufactured in Brno.
Electrical Engineering (EE) and Electronics
The history of production of EE/Electronics products in the Czech
Republic is tied to TESLA, which before 1990, was one of the most
renowned Czech companies in general, producing a wide spectrum
of products varying from electric motors and consumer electronics to
semi-conductors. It was in one of its divisions, Tesla Pardubice, where
the renowned Tamara radar was developed and produced. Nowadays,
the extensive technological know-how of the former Tesla group was
transferred to both successors and newly established EE/electronic
companies over the last twenty years. One of the direct successors
is Metra Blansko, a producer of measuring instruments and ERA,
a manufacturer of a new generation of the Tamara radar system, VERA.
The Czech Republic has attracted all major players in the EE/
electronics sectors including: Siemens, Eaton, Honeywell, Schneider
Electric, ON Semiconductors and ABB. In addition to a number
of manufacturing sites, many investors have increased their initial
investment by opening R&D Centres, Repair Centres or Service
Centres.
moving production from Scotland;
Foxconn Global Services Division opened in 2002;
one of the largest employers in the Czech Republic (nearly 8,000
employees);
one of the leading exporters in the country; in 2013 produced and
exported goods worth ca. 100 billion CZK, ranking the third largest
exporter of the Czech Republic;
manufacturing for HP, Cisco and many others.
The long history of Czech home appliances production, represented
by brands such as ETA, Romo and MORA, also has its place on the
local market. Currently, the largest producers on the Czech market
are represented mainly by Mora Moravia who is owned by Gorenje
and produces in Mariánské Údolí, near to Olomouc, Miele a German
manufacturer of washing machines, dishwashers and tumble dryers in
Uničov, R-fin – successor of traditional producer Romo in Fulnek and ETA –
who moved its production from traditional Hlinsko to Milotice nad Bečvou.
For example, Schneider Electric, a French world renowned producer
of electro-mechanical instruments, originally entered the market by
privatising the then state-owned firm Elektropřístroj Písek in Southern
Bohemia. In 1998, the company decided to invest into the construction
of a new production facility. Between 2002 and 2008, the company
further expanded its manufacturing premises by 60% and moved its
production from Ireland, France, Spain and Italy to the Czech Republic.
Nowadays, their Písek production facility is one of the company’s
largest production sites in Europe, manufacturing mostly for export.
One of the most important parts of the Czech electrical engineering
industry is the production of semiconductors. Building on the Czech
traditions in the industry, a number of the well-known global as
well as local producers have settled down in the Czech Republic
to manufacture or design semiconductors here. Honeywell, ABB,
Certicon, ON Semiconductors, HC Electronics, Unites Systems and
Arsil Crystal are just a few examples of the local players.
Selection of Manufacturers – Consumer Electronics & Electrical Engineering Sector
Selection of Manufacturers – Consumer Electronics & Electrical Engineering Sector
Prague Region
Praha
Prague Region
ABB
Bosch
Praha
Elcom
ABB Trafo
Eximet
Bosch
Saltek
Elcom Audiologicka Technika
Siemens
Eximet Praha
Trafo
SPEEL
Saltek (POLL)
Škoda
Siemens Audiologicka Technika
Tesla
SPEEL
Praha
TTC
Marconi
ŠkodaEnergies
(POLL) (Cegelec Praha)
Vinci
Tesla
TTC Marconi
Vinci Energies (Cegelec Praha)
Karlovy Vary Region
Aš
Karlovy
Vary Region
MTG
Montagetechnik
Aš Rychnov
Dolní
MTG Montagetechnik
Vishay
Electronic
Děčín
KDP
Ústí Assembly
nad Labem Region
Děčín
Chomutov
KDPElectronics
Assembly
JJS
PULS investiční
Chomutov
JJS Electronics
Klášterec
nad Ohří
PULS
investiční
ZF
Electronics
Krupka
Louny
Auto - Kabel
Krupka
Materion
Czech
Rimaster AB
Louny
Materion Czech
Teplice
Rimaster
AB
Melecs
ETS
Drásov
Kladno
Aveo
Engineering Group
Nkt
Cables
Libušín
Nymburk
Helukabel CZ
Changhong
Europe Electric
Nymburk
Žebrák
ChanghongManufacturing
Europe Electric
Muramato
Europe
Žebrák
Muramato Manufacturing Europe
Liberec Region
Česká Lípa
Liberec Region
Johnson
Controls
Modus
Česká Lípa
Johnson Controls
Jablonec
nad Nisou
Modus
ABB
Dolní Rychnov
Chyše
Vishay Electric
Electronic
Lamela
Chyše Vary
Karlovy
LamelaControl
Electric
Tronic
Jablonec nad Nisou
Liberec
ABBSystems
CiS
HOKAMI
Liberec
Laird
Technologies
CiS Systems
HOKAMI
Malá
Skála
Laird Technologies
Schurter
Karlovy Vary
Kynšperk
nad Ohří
Tronic Control
Nexans
Power Accessories (GPH)
Kynšperk
Ostrov
nadnad
OhříOhří
Nexans Power
Accessories
(GPH)
Konfektion
E (KE
Ostrov - Electrik)
Ostrov nad Ohří
Plesná
Konfektion E (KE Ostrov - Electrik)
ELROZ
Sokolov
Svatava
Wieland
Electric
ept
connector
Kutná Hora
Libušín
Foxconn CZ
Helukabel
CZ
Teplice
Melecs ETS
Malá Skála
Stráž
nad Nisou
Schurter
PEKM
Kabeltechnik
Plesná
Sokolov
ELROZ Electric
Wieland
Krupka
Děčín
Česká Lípa
Králíky
OEZ
Pardubice Region
Drásov
Aveo
Engineering
Central
BohemianGroup
Region
KladnoHora
Kutná
Nkt Cables
Foxconn
CZ
Krupka
ZF Electronics
Auto
- Kabel Krupka
Pardubice Region
Malá Skála
Stráž nad Nisou
PEKM Kabeltechnik
Vrchlabí
Trutnov
Hradec Králové
Hradec
Králové Region
HC
Electronics
TL Elektronic
Hradec Králové
HC Electronics
Jičín
TL Elektronic
AEG
Components
LAMIREL PCB Europe
Jičín
AEG Components
Náchod
LAMIRELelektromotory
PCB Europe
AMETEK
Náchod
Nová
Paka
AMETEK& elektromotory
Quittner
Šimek
Nová Paka
Trutnov
Quittner & Šimek
ABB
Tyco Electronics EC Trutnov
Trutnov
ABB
Vrchlabí
TycoCables
Electronics EC Trutnov
Nkt
Vrchlabí
Nkt Cables
Králíky
Lanškroun
OEZCzech Republic (Kyocera)
AVX
Wendell
Lanškroun
AVX Czech Republic (Kyocera)
Letohrad
Wendell
OEZ
Letohrad
Pardubice
OEZ
Commscope
Eldis
Pardubice
ERA
Commscope
Flextronics
International
Eldis CZ
Foxconn
ERA
Panasonic
Automotive Systems
Flextronics International
Czech
Foxconn CZ
T-CZ
Panasonic Automotive Systems
Czech
T-CZ
Olomouc Region
Jeseník
Olomouc Region
Fenix
Jeseník nad Bečvou
Milotice
Fenix
ETA
Milotice nad Bečvou
Mohelnice
ETA Autotechnik Nova
Hella
Mohelnice
Olomouc
Hella Autotechnik
Nova
Gorenje
(MORA Moravia)
Honeywell Aerospace
Olomouc
O&M
Solar
Gorenje (MORA Moravia)
Honeywell Aerospace
Postřelmov
O&MPostřelmov
Solar
MEP
Postřelmov
Šternberk
MEP Postřelmov
Invesys
Appliance Controls
Teplice
Malá Skála
Šternberk
Česká Lípa
Vrchlabí Náchod
Šumperk
Děčín
Krupka
Invesys Appliance Controls
Jičín
Trutnov
EPCOS
Chomutov
Nová
Paka
Teplice
Jeseník
Šumperk
Louny
Uničov
Náchod
Ostrov
Jičín Hradec
EPCOS
Chomutov
NováKrálové
Paka
Miele
technika
nad Ohří
Nymburk
Jeseník
Louny
Libušín
Svatava
Králíky
Uničov
Karlovy
Vary
Aš
Ostrov
Hradec Králové
Miele technika
Plesná nadSokolov
Ohří
Rychvald Karviná
Bruntál
Chyše
Šumperk
Nymburk
Letohrad
Dolní Rychnov
Kladno
Libušín
Svatava
Králíky
Karlovy
Vary
Aš Kynšperk nad Ohří
Pardubice
PRAHA
Ostrava
Postřelmov
Sokolov
Plesná
Žebrák
Lanškroun
Rychvald Karviná
Bruntál
Uničov
Chyše
Šumperk
Letohrad
Dolní Rychnov
Kutná Hora
Nový
Kladno
Štemberk
Třemošná
Jičín
Pardubice
Kynšperk nad Ohří
PRAHA
Ostrava
Postřelmov
Milotice
Planá
Žebrák
Lanškroun Mohelnice
Uničov
nad Bečvou Nový Kopřivnice
Plzeň
Kutná Hora
Drásov
Třemošná
Olomouc Štemberk
Stříbro
JičínRožnov pod Radhoštěm
Nové Město na Moravě
Milotice
Chotěšov
Planá
Mohelnice
Sebranice
u Boskovic
Kopřivnice
Valašské
Meziříčí
nad Bečvou
PlzeňBlovice
Drásov
Olomouc
Stříbro
Nové Město na Moravě Ráječko
Humpolec
Chotěšov
Přeštice
Sebranice u Boskovic
Valašské Holešov-Všetuly
Meziříčí
Velké Meziříčí
Blansko
Blovice
Milevsko
Jihlava
Pilsen Region
Kuřim
Humpolec
Ráječko
Blatná
Tábor
Přeštice
Holešov-Všetuly
Brankovice
Otrokovice
Velké Meziříčí
Telč
Blansko
Písek
Buchlovice
Blovice
Brno
Milevsko
Jihlava
Faiveley
Transport Lekov
Pilsen Region
Kuřim
Uherské Hradiště
Blatná
Tábor
Nišovice
Brankovice
Otrokovice
Čičenice
Telč
Písek
Jemnice
BuchloviceHluk
Chotěšov
Blovice
Brno
Jevišovice
RSF
Elektronik
Faiveley
Transport Lekov
Uherské
Hradiště
Nišovice
Čičenice Suchdol nad Lužnicí
Znojmo
Vimperk
Mikulov
Plzeň
Jemnice
Chotěšov
Hluk
Prachatice
Jevišovice
Asteelflash
Plzeň
RSF Elektronik
Bruntál
Daikin Industries CZ
Suchdol nad Lužnicí
Znojmo
Vimperk
Mikulov
OSRAM
GEMTEK.CZ
Plzeň
MoraviaČeská
Silesiarepublika
Region
Prachatice
GES
- Electronics
Asteelflash
Plzeň
Bruntál
Panasonic
AVC Networks
Czech
Daikin Industries
CZ
Karviná
OSRAM
Česká republika
GEMTEK.CZ
Dexon
Czech
Planá
GES - Electronics
Panasonic
Works Czech
Panasonic Electric
AVC Networks
Czech
Karviná
Kopřivnice
Dexon& Czech
Vysočina Region
Bang
Olufsen
Přeštice
Planá
Jevišovice
Blansko
Rexxam
Czech
Panasonic
Electric Works Czech
Humpolec
Eximet
Trafo
Metra
Blansko
South
Moravian
Region
Kopřivnice
Vishay Electronic
Nový Jičín
HDEL
Technology
Vysočina
Region
RACOM
Bang & Olufsen
Přeštice
Visteon-Autopal
Jevišovice
Blansko
Kuřim
Stříbro
Rexxam Czech
Jemnice
Humpolec
Eximet
Trafo
Metra
Blansko
Tyco Electronics Czech
RSF
Elektronik
Vishay
Electronic
Nový Jičín
Egston
System Electronic Brankovice
HDEL Technology
Ostrava
RACOM
EMS-PATVAG
Visteon-Autopal
ABB
Kuřim
Třemošná
Stříbro
Sebranice
u Boskovic
Jihlava
Jemnice
Siemens
EPIQ
CZ
Tyco Electronics
Czech
Brankovice
RSF Elektronik
AKI
Electronic
Egston
System Electronic Brno
ALPS
Electric Czech
Ostrava
EMS-PATVAG
ELSA
ABB
ABB
Rychvald
Třemošná
Kosyka
Sebranice
u
Boskovic
Jihlava
Mikulov
ADC Czech Republic
Siemens
Písek
Blatná
EPIQ CZ
Visteon-Autopal
Tesla
Jihlava
AKI Electronic
ALPS
Electric
Czech
Brno
Gebauer
A
Griller
Andrew
Corporation
LOVATO Electric
Tesla
SouthBlatná
Bohemian Region
ELSA
ABBOptronics
Kabeltechnik
Schneider
Electric
AU
Rychvald
Vishay Electronic
Nové
Město na Moravě
Kosyka
Mikulov
ADCPraha
Czech Republic
SIBA
PísekPísek
Blatná
Zlín Region Visteon-Autopal
AŽD
RACOM
Tesla Jihlava
Gebauer
A
Griller
Andrew
Corporation
Pewtronic
LOVATO
Electric
Tesla Blatná
Ráječko
Combustion Controls
České
Budějovice
Buchlovice
Kabeltechnik
Schneider Electric
AU Optronics
Telč
Vishay(Hellux
Electronic
TYCO
Safety Products BD Sensors
Commscope
ZETT
Elektra) Prachatice
ON Semiconductor Czech
SIBA Písek
Zlín Region
AŽD Praha
Heiru
CZ
RACOM
Daikin
Device
CZ
InTiCa
Systems
Pewtronic
Republic
Ráječko
Combustion
Controls
České
Budějovice
Znojmo
ESKO
Brno
Buchlovice
Číčenice
Velké
Telč Meziříčí
TYCO Safety
Products Hluk
Commscope
ZETT (Hellux Elektra) Suchdol
Egston
System
FEI
Czech
Republic
nad Lužnicí
ON Semiconductor
BD
Sensors
Prachatice
Deutronic
Nkt
Cables
Heiru
CZ
Hradiště Czech
Visteon-Autopal Uherské
Daikin
Device
CZ
Eaton
Honeywell Environmental Electronic
InTiCaElektrotechnika
Systems
Republic
Prysmian Group (Draka
AVX
Czech
Republic
Znojmo
ESKO
Brno
Číčenice
and Combustion Controls
Hluk
Kabely)
Velké Meziříčí
Milevsko
(Kyocera)
Holešov-Všetuly
Egston System
FEI Czech
Republic
Tábor
Suchdol nad Lužnicí
Deutronic
Wistron
InfoComm
Nkt Cables
Uherské
Hradiště
Visteon-Autopal
AURA
ELKO
EP
Brisk
EatonTábor
Elektrotechnika
Honeywell Environmental Electronic
Prysmian Group (Draka
Inventec
AVX Czech
Republic
Valašské
Meziříčí
and Combustion Controls
Kabely)
Milevsko
Mesing
(Kyocera)
Holešov-Všetuly Codaco
Nišovice
Vimperk
Tábor
Electronic
Otrokovice
Wistron
InfoComm
AURA (Knurr)
Nitto Denko Czech
ELKO Control
EP
Rhode
& Schwarz Czech Republic
Emerson
Brisk Tábor
Schott Solar CR
Tronic
Inventec Brno
TESCAN
Mesing
Nišovice
Volary
Vimperk
Codaco Electronic
Otrokovice
Nitto Denko Czech
Vishay
Rhode &Electronic
Schwarz Czech Republic
Emerson (Knurr)
Schott Solar CR
Tronic Control
TESCAN Brno
Svatava
ept connector
24
Medical and Pharmaceutical Industry
The Czech Republic not only has a long tradition in the field of
pharmaceutical production and life sciences, but also in medical
appliances manufacturing.
Medical technologies and devices
The major development of the Czech medical devices industry started
in the 20th century with international successes of the introduction
of the first external cardio defibrillator and the invention of hydrogel
contact lenses by Otto Wichterle, for example.
On the contrary to the pharmaceutical market, where only a few
companies have a dominant market share, the medical devices,
materials and technologies sector consists of a large number of
small producers. In the past few years, Czech companies, as well as
international firms producing in the Czech Republic, have proven to be
more than competitive and many of them are very active in the field of
innovation.
The competitive edge of Czech medical devices companies is based
on its high quality of products, innovation, as well as competitive labour
costs and excellent labour quality. In the past 20 years, the industry
has grown by more than 140%. The production portfolio varies from
technical gases, hospital beds and furniture, surgical instruments and
x-ray machines, to sterilizers and other medical materials, appliances
and devices.
The large international producers have been entering the market
since the early nineties. Traditional producers already operating on the
market include: Arrow International / Teleflex manufacturing catheters in
two plants in Hradec Králové and Žďár nad Sázavou, Hartmann Rico
with three production plants in Veverská Bytíška, Havlíčkův Brod and
Chvalkovice, Lohmann & Rauscher producing bandaging materials
in Nová Paka and in Slavkov u Brna, Rodenstock, Gerresheimer and
many others.
Medical companies can also be very often located within industrial
parks with a suitable background. In the logistics and production
park CTP Hranice, there are currently two large international
producers of medical devices: Medi Globe, manufacturing products
for gastroenterology and urology and Smiths Medical, who produce
a range of high-tech products at the plant, primarily single-use medical
devices to support breathing and for drug delivery.
It is not only international manufacturers that are active and successful
on the local market. Many of the Czech producers have already
established themselves as some of the world’s market leaders. Such
companies, amongst others, include: Borcad, established in 1990 and
focused on the development, construction and production of birthing
beds, gynaecological, transport and dialysis chairs or, BMT Medical
Technology (member of MMM Group), successor of the famous
traditional Czech sterilisers’ producer – Chirana.
The best recent example of a successful Czech company who
expanded on a global level is one of the largest worldwide
manufacturers of medical beds and mattresses – Linet. The company
was established in 1990 in Želevnice near Slaný and employs 600
people, producing around 40,000 beds per year. The majority of these
are designated for export into 100 countries all over the world.
Pharmaceutical industry and life sciences
Thanks to the Czech Republic’s superb academic background, in
the field of chemistry and biochemistry, biotechnology, genetics and
immunology, there are a large variety of research institutes, commonly
tied to universities, as well as centres of excellence. Many of these
belong under the Academy of Sciences of the Czech Republic.
Productivity and scientific contributions of these institutions can be best
illustrated by the global achievements and success of Dr. Antonín Holý
and his team in the field of anti-AIDS and hepatitis B medicaments
development.
The reputation and high quality of this academic background,
supported by educated and skilled local personnel has also attracted
several international companies to invest into manufacturing or
R&D centres in the Czech Republic. Examples of the largest global
companies operating production and/or R&D centres include: Sanofi,
who bought a 25% share in the largest Czech pharmaceutical producer
Zentiva in 2006, Teva Pharmaceuticals, who entered the local market
in 1997 and nine years later acquired production company Ivax
Pharmaceuticals, successor of Galena company and Lonza Biotec,
entering in 1992 via taking over the research institution SPOFA in
Kouřim, and in 2006, investing into a new research and development
centre there.
Other large companies operating on the local research and
manufacturing market include: Baxter BioScience in Jevany, Synthon in
Blansko, Sotio in Prague, Interpharma, member of Otsuka group and
many others. The area of health supplements is represented by one of
the most dynamic local manufacturers, Walmark.
Strength of Czech medical and pharma industries:
excellent quality and availability of university students and educated
workforce from an industry specific area;
highly competitive salary and overall cost levels;
close cooperation of universities and academia with pharmaceutical and
medical business;
regulation and patent environment harmonised with European Union
standards;
high quality of products;
constantly developing R&D, educational and training activity;
well-developed supplier network;
long term commitment of the Czech government to invest into
research & development and hi tech centres.
Selection of Manufacturers – Medical & Pharmaceutical Sector
Central Bohemianof
Region
Selection
Manufacturers – Medical & PharmaceuticalHradec
Sector
Králové Region
Pchery - Theodor
GALMED
Český Brod
Dyntec
Jevany
Baxter
BioScience
Český Brod
Dyntec
Jílové u Prahy
BIOPHARM
Výzkumný ústav
Jevany
biofarmacie
a veterinárních léčiv
Baxter BioScience
Martin Bauer Group (Megafyt Pharma)
Jílové u Prahy
BIOPHARM Výzkumný ústav
Kladno
biofarmacie a veterinárních léčiv
BEZNOSKA
Martin Bauer Group (Megafyt Pharma)
Kolín
LONZA
Kladno BIOTEC
BEZNOSKA
Kouřim
LONZA
Kolín BIOTEC
LONZA BIOTEC
Roztoky u Prahy
VUAB
PcheryPharma
- Theodor
GALMED
Řež
RadioMedic
Roztoky u Prahy
VUAB Pharma
Vrané nad Vltavou
Martin
Řež Bauer
(Megafyt
- Pharma)
RadioMedic
Želevčice
Vrané nad Vltavou
LINET
Martin Bauer
(Megafyt - Pharma)
Želevčice
LINET
Budčeves
AVEFLOR
Hradec
Králové Region
Hradec Králové
Liberec Region
Jablonec nad Nisou
PROFARMA-PRODUKT
Liberec
Liberec Region
TRUMPF
Česká
republika
Jablonec nad
Nisou
PROFARMA-PRODUKT
Turnov
Ontex
LiberecCZ
TRUMPF Česká republika
Turnov
Ontex CZ
Nová
Jičín Paka
Lohmann
Biomag CZ& Rauscher
Danaher (SpofaDental)
Rudník u Vrchlabí
MZ
Liberec
Nová
Paka
Lohmann & Rauscher
Kouřim
Ústí
nad Labem Region
LONZA BIOTEC
Chomutov
Mikron Chomutov
Chuderov
ImunomedicA
Chomutov
Mikron Chomutov
Litvínov
Primed-Halberstadt
CZ
Chuderov
ImunomedicA
Terezín
Dyntec
Litvínov
Primed-Halberstadt CZ
Terezín
Dyntec
Pilsen Region
Rudník u Vrchlabí
MZ Liberec
Liberec
Litvínov
Chuderov
Rokycany
WAKE
South
Bohemian Region
Trhové Sviny
Vodňany
Laminar Medica
Turnov
Rudník u Vrchlabí
Dolní Dobrouč
Contipro
Pardubice Region
Chrudim
PENTA
(Ing. Petr Švec)
Dolní Dobrouč
Contipro
Pardubice
Bionik Stapro Group
Chrudim
Herbacos
Recordati
PENTA
(Ing.
Petr Švec)
Rybitví
Pardubice
VÚOS
Bionik Stapro Group
Herbacos Recordati
Vysoké Mýto
Glenmark
Rybitví Pharmaceuticals
VÚOS
Olomouc Region
Hranice na Moravě
Medi-Globe
Smith Medical Czech Republic
Olomouc Region
Olomouc
Hranice na Moravě
FAGRON
Medi-Globe
FARMAK
Smith Medical Czech Republic
Přerov
Olomouc
Meopta
- optika
FAGRON
Olympus
FARMAK Medical Products
Czech
Přerov
Meopta - optika
Olympus Medical Products
Czech
Jablonec nadNová
NisouPaka
Vysoké Mýto
Jičín
Rudník u Vrchlabí
Glenmark Pharmaceuticals
Chvalkovice
Turnov
Budčeves
Hradec Králové
Nová Paka
Řež
Krnov
Roztoky u Prahy Jičín
Terezín
Pchery
Chomutov
Chvalkovice
Pardubice
Český Brod
Bohumín
Dolní Dobrouč
Rybitví Hradec Králové
Opava Bolatice
Kolín Budčeves
Kladno
Karviná
Želevčice PRAHA
Řež
Krnov
Vrané nad Vltavou Roztoky u Prahy
Ostrava
Vysoké
Mýto
Třinec
Kouřim
Jevany
Chrudim
Pchery
Odry
Pardubice
Český Brod
Fryčovice
Bohumín
Dolní Dobrouč
Rybitví
Jílové
u
Prahy
Opava
Kolín
Kladno
Bolatice
Karviná
Hranice
Rokycany
PRAHA
Kopřivnice
na Moravě
Vrané nad Vltavou
Olomouc
Ostrava
Vysoké Mýto
Třinec
Jevany Kouřim
Chrudim
Ejpovice
Odry
Nové Město
Fryčovice
Rožnov
Jílové u Prahy Havlíčkův Brod
na
Moravě
pod
Radhoštěm
Přerov
Hranice
Žďár nad
Rokycany
Kopřivnice
Sázavou
na Moravě
Jihlava
Tišnov Blansko
Slušovice
Horšovský Týn
Olomouc
Ejpovice
Zlín
Havlíčkův Brod Velké Meziříčí Nové MěstoVeverská Bítýška
Rožnov
Klatovy
pod Radhoštěm
Přerov
Žďár nad na Moravě
Slavkov
u
Brna
Sázavou Veverské Brno
Jihlava
Blansko
Tišnov
Slušovice
Horšovský Týn
Ševětín
Knínice
Vodňany
Zlín
Veverská Bítýška
Velké Meziříčí
Klatovy
Strážnice
Slavkov u Brna
Veverské Brno
Ševětín
Trhové Sviny
Knínice
Vodňany
Pilsen Region
Horšovský
Týn
Gerresheimer
Wilden
Ejpovice
Rondo obaly
Klatovy
Rodenstock
ČR
Horšovský Týn
Gerresheimer Wilden
Rokycany
WAKE
Klatovy
Rodenstock ČR
MEDISIZE
Ševětín CZ
Ardeapharma
Vodňany
Laminar
Medica
Trhové Sviny
MEDISIZE CZ
Jablonec nad Nisou
Liberec
Chomutov
Litvínov
Terezín
Chuderov
Želevčice
Strážnice
Ejpovice
Rondo obaly
Ševětín
Ardeapharma
ARROW
BudčevesInternational CR (Teleflex)
Dr.
Kulich Pharma
AVEFLOR
Dr. Muller PHARMA
ITEST
Hradecplus
Králové
SVUS
Pharma
ARROW
International CR (Teleflex)
Dr. Kulich Pharma
Chvalkovice
Dr. Muller PHARMA
Hartmann
ITEST plus- Rico
SVUS Pharma
Jičín
Biomag
CZ
Chvalkovice
Danaher
Pardubice Region
Hartmann(SpofaDental)
- Rico
Trhové Sviny
Zlín Region
Prague Region
Praha
APIGENEX
Beckman Coulter (Immunotech)
Prague Region
Biomedica
Coopharma
Praha
Herbadent
APIGENEX
LEROS
Beckman Coulter (Immunotech)
Otsuka
(Interpharma Praha)
Biomedica
PENTA
(Ing. Petr Švec)
Coopharma
PRO.MED.CS
Praha
Herbadent
SEVAPHARMA
LEROS
Sotio (Interpharma Praha)
Otsuka
Synthon(Ing. Petr Švec)
PENTA
UJP
Praha Praha
PRO.MED.CS
VAKOS
XT a.s.
SEVAPHARMA
Vysočina Region
Zentiva
Sotio (Sanofi Pasteur)
Havlíčkův Brod
Synthon
Hartmann - Rico
UJP Praha
VAKOS XT a.s.
Vysočina
Region
Město
na Moravě
Zentiva (Sanofi Pasteur) Nové
MEDIN
Havlíčkův Brod
Hartmann - Rico
Velké Meziříčí
ALPA
MEDIN
ARROW
International CR
Velké Meziříčí
ALPA
ARROW International CR
Blansko
Synthon
ENERGOAQUA
MEDITES PHARMA
Zlín Region
Slušovice
MEDIAP
ENERGOAQUA
MEDITES PHARMA
Brno
Audy
Blansko
Medkotech
Slušovice
BioVendor
Synthon
MEDIAP
BMT Medical Technology
Zlín
IMUNA
Brno
Noventis
PrimeCell
Theraupeutics (Národní Valašské Meziříčí
Audy
Medkotech
Centrum
BioVendorTkání a Buněk)
BMT Medical Technology
Zlín
Slavkov
IMUNA u Brna
Lohmann &Theraupeutics
Rauscher (Národní Noventis
PrimeCell
Centrum Tkání a Buněk)
Strážnice
LEROS
Slavkov u Brna
Lohmann & Rauscher
Tišnov
VITAR
Strážnice
LEROS
Veverská Bítýška
Bioster
Tišnov
Hartmann
VITAR - Rico
Veverské
Veverská Knínice
Bítýška
RosenPharma
Bioster
Hartmann - Rico
Veverské Knínice
RosenPharma
Bohumín
Bochemie
Moravia Silesia Bolatice
Region
Medis International
Bohumín
Bochemie
Fryčovice
BORCAD
CZ
Bolatice
Medis International
Karviná
Molnlycke Health Care
Klinipro
Fryčovice
BORCAD CZ
Kopřivnice
FAVEA
Karviná
Molnlycke Health Care Klinipro
Odry
Medi-Globe
Kopřivnice
FAVEA
Opava
Teva Czech Industries
Odry
Medi-Globe
Ostrava
Ekocentrum Ovalab
Opava
Galenická
Ostrava
Tevalaboratoř
Czech Industries
GALMED
MB Pharma
Ostrava
Ekocentrum Ovalab
Třinec
Galenická laboratoř Ostrava
Walmark Česká GALMED
republika
MB Pharma
Třinec
Walmark Česká republika
26
General Machinery
When we put automotive aside, which is nowadays the flagship of
Czech industry, it is engineering in general that is one of the strongest,
most traditional and globally recognized sectors of the Czech Republic.
The spectrum of products manufactured in the country is overwhelming:
from the smallest machine parts and tools like drills; to precise
machinery equipment, military hardware, machinery tools, lifts, cranes,
tractors, trams, aircraft, jet engines and turbines.
Engineering production is evenly spread over the country and
comprises all ranges of enterprises, from small companies to large
holdings. Their location is usually determined by historical production.
The synonym of the industry and one of the most famous Czech
companies globally is Škoda which was originally established in Pilsen
approximately 150 years ago. This world renowned producer of a
wide range of transport vehicles including trams, trains, locomotives,
metro wagons, trolleybuses as well as machine tools and turbines
for power plants was recently divided into several companies. The
division of Škoda that manufactures rail vehicles including locomotives
and trolleybuses, currently employs approximately 4,000 people in a
number of manufacturing sites: Pilsen (Škoda Transportation, Škoda
Electric), Ostrava (Škoda Vagonka), and Šumperk (Pars Nova). The
company is investing largely into innovation and operates its own R&D
center.
The Czech producer of turbines for power plants, Škoda Power, that
separated from the original Škoda group, was acquired by Doosan
Heavy Industries and Construction in 2009. The company has an
8% share of the global turbine market and its competitiveness will
be further enhanced by a global R&D centre that opened last year in
Pilsen. Another large producer, formerly part of the Škoda group, Škoda
Machine Tools, now part of ALTA group, is one of the world’s leading
manufacturers of machinery tools, based in Pilsen.
The Czech Republic has also gained global recognition from the
production of heavy agricultural and construction vehicles. Among the
largest names belong Tatra, LIAZ, Avia and Zetor. TATRA Kopřivnice,
a world renowned manufacturer of trucks, draws upon its’ more than
100 years of experience, combined with the implementation of the
latest knowledge from its own R&D centre. In 2011, the company
introduced a strategic partnership with Dutch automotive producer DAF
Trucks. Zetor, a traditional tractor manufacturer with a 68 year history,
is exporting over 90% of products abroad.
Other successful Czech engineering companies include: Brano –
mainly producing door systems and a wide range of components for the
automotive industry, traditional weapon producer – Česká Zbrojovka,
in Uherský Brod, one of the largest European train manufacturers – CZ
Loko, ČZ Strakonice – producer of Desta forklifts and many others.
One example of a recently established company who benefited from
the Czech tradition in engineering combined with new high tech
innovations is AROJA, a Czech producer of the largest 3D printer in the
world.
The quality of local engineering talent, supported by education,
expertise and the traditional background was recognised by
international investors who have been coming to the Czech
Republic since the early 1990’s. Many of these started by setting
up local branches and commencing a co-operation with domestic
manufacturers. Gradually, they have increased their initial investments
by taking over local partners, developing new plants and in many cases
setting up R&D centres. Such companies operating on the Czech
market include for example: Bosch, Ingersoll Rand, Daikin Industries,
Doosan Bobcat and Honeywell, who opened its first R&D laboratory
outside of the USA in 1993 in Prague. Honeywell also set up a new
R&D centre in 2003 in Brno, which was later upgraded to a European
centre, part of Honeywell Technology Solutions.
Robert Bosch entered the market in 1992 after a joint venture with
Czech Motor Jikov. The factory focuses on production parts for the
automotive industry. In 2005, it opened a new R&D and testing
centre for almost 200 people and in 2013, relocated the production of
Denoxtronics to the Czech Republic and extended the research centre
capacity. Nowadays, it is one of the largest employers in the industry
with manufacturing plants in Jihlava, České Budějovice, Brno, Krnov
and Albrechtice. Another significant employer is Siemens who opened
in 1990 and currently employs almost 10,000 people.
Aviation
The Aviation sector in the Czech Republic, which has a long tradition
dating back to the 1920’s, nowadays includes both manufacturers of
final products (small planes, ultralights and jet trainers) and suppliers
of OEM parts to large producers such as Boeing, Airbus and Embraer.
Moreover, the industry that employs approximately 5,000 people
is gradually growing with overall revenues increasing by 30% last
year. One of the largest domestic manufacturers is Aero Vodochody,
producing, among others, L-159 jet trainers and S-76 Sikorsky
Helicopters. Aircraft Industries based in Kunovice, which was acquired
in 2008 by Russian owner UGMK, is a producer of the legendary L-410
Turbolet. Other traditional producers for the aviation industry include:
Jihlavan, Jihostroj, PBS Velká Bíteš, Technometra, Zlín Aircraft, Mesit,
Mikrotechna, Znojemské Strojírny and a number of others.
In the last twenty years, the sector has attracted a number of major
international companies such as Honeywell, Latecoere, GE Aviation,
SAAB, Driessen Aerospace, Mt-Propeller and Bell Helicopters who
announced this summer, their new investment into upgrading its Prague
facility into their European customization, delivery and aftermarket
service centre. Another large investment announced this summer
included the 200 million USD to be invested by Malaysian company
Aspirasi Pertiwi SDN BHD to Evektor, a Czech producer of EV-55
twin-engine turboprop outback aircraft. The investment will be used
for finalising the development and commencing the serial production
of the plane which can carry 14 passengers or 1,800 kg of cargo.
The development of the plane represents one of the most important
projects of the Czech Aviation Industry in the last 20 years.
Selection of Manufacturers – General Machinery Sector
Družstevní závody Dražice
Chomutov
Parker Hannifin Czech Republic
Sandvik Material Technology
Komárov
BUZULUK
Nymburk
JDK
Parker Hannifin Czech Republic
Čelákovice
TOS Čelákovice
Most
KSK Komořany - Slovácké
strojírny
M.Ward Manufacturing
Český Brod
Technometra Český Brod
Ústí nad Labem
ADOZ
Black & Decker
KONE Industrial
Odolena Voda
AERO Vodochody
Technometra Radotín
Dobříš
Doosan Bobcat Manufacturing
Kolín
C&F Manufacturing
Dirac Industries
EMERSON Electric (Alco Controls)
Ingersoll-Rand CZ
Varnsdorf
TOS Varnsdorf
Žatec
Caterpillar (Solar Turbines )
Slaný
Demag Cranes & Components
F.X. Meiller Slaný
Vlašim
Magtech (Sellier & Bellot)
Česká Lípa
Bombardier Transportation
Czech
TTS Tooltechnic Systems
(Narex)
Praha
Amcon
Bell Helicopter (Textron)
GE Aviation Czech (BGA Turboprops)
LA Composite
Latecoere Czech Republic (LETOV)
LOM Praha
Mikrotechna Praha
Mt - Propeller (Avia Propeller)
Liberec
Elitronic
Karlovy Vary Region
ZKL
Rotava
Rotas Strojírny
Rotava
Chomutov
Ústí nad
Labem
Most
Klášterec
nad Ohří Žatec
Louny
Slaný
Liberec
Mladá Boleslav
Semily
Vrchlabí
Trutnov
Jičín
Dvůr Králové
Hořice
Odolena Voda
Čelákovice
Nymburk
Hradec Králové
ZVU POTEZ
Lipník nad Bečvou
Stojtos Lipník
Jičín
Seco Group
Lutín
Edwards
Náchod
ATAS elektromotory Náchod
Trutnov
Siemens (Nízkonapěťová spínací technika)
Vamberk
ESAB Vamberk
Pardubice Region
Zábřeh
Slovácké strojírny
Ústí nad Orlicí
Rieter CZ
Česká Ves
Hradec Králové
Holice
Postřelmov
KARSIT HOLDING
Uničov
Ingersoll-Rand CZ
Unex
Jablonná nad Orlicí
LUX
Vamberk
Olomouc
BRANO GROUP
Honeywell Aerospace
Moravské potravinářské
strojírny
SIGMET
Šumperk
Škoda (Pars nova)
Pramet Tools
Hnátnice
Autoneum CZ
Náchod
Mohelnice
Siemens (Elektromotory
Mohelnice)
Přerov
DSP Přerov
Česká Třebová
CZ LOKO
Holice
Zbrojovka Holice
Semily
Charvát AXL
Česká Lípa
Hranice
SSI Shafer
Vrchlabí
Siemens (Nízkonapěťová spínací technika)
Liberec Region
Prague Region
Česká Ves
Řetězárna
Hořice
DAHER KARBOX
Mladá Boleslav
Beroun
Carrier Refrigeration Operation Czech Republic Seco Group
Louny
Legios
Olomouc Region
Dvůr Králové
KARSIT HOLDING
Jablonné
nad Orlicí
Jeseník
Krnov
Bohumín
Karviná
Hradec
Ostrava
nad
Moravicí
Zábřeh
Vítkovice Albrechtice
Hořovice
Česká Třebová
Studénka
Komárov
Žebrák
Frýdek-Místek
Ledeč nad Sázavou
Mohelnice
Plzeň
Kopřivnice
Stříbro
Nový Jičín
Olomouc
Mýto
Hranice
Dobříš
Vlašim
Chotěboř
Lutín
Lipník nad
Přerov
Bystřice pod Perštejnem
Bečvou
Milevsko
Vsetín
Hulín
Pacov
Velké Meziříčí Drásov
Domažlice
Blansko
Zlín
Jihlava
Slušovice
Pilsen Region
Sezimovo Ústí
Kuřim
Otrokovice
Klatovy
Okříšky
Domažlice
Velká Bíteš
Uherské
Strakonice
Rosenberg
Staré Město
Říčany Brno
Hradiště
Třebíč
Soběslav
Slavkov Kunovice
u
Brna
Hořovice
Uherský Brod
u
Brna
Hrotovice
Tedom
Vodňany
Moravský Písek
Strážnice
Klatovy
Znojmo
Mikulov
Vimperk
Aerotech Czech
Český Krumlov
Břeclav
Velešín
Mýto
Valtice
Carrier Refrigeration Operation-Czech Republic
Zlín Region
Kaplice
Uherské Hradiště
Hulín
Plzeň
MESIT
Toshulin
Aliatech Metal
Amagasaki Pipe Czech
Uherský Brod
Kunovice
Vysočina Region
Daikin Industries CZ
AIRCRAFT Industries (LET Česká zbrojovka
Drásov
Blansko
Doosan Škoda Power
Kunovice)
Slovácké strojírny
Siemens Electric Machines
Bystřice pod Perštejnem
ČKD Blansko
GÜHRING
Evektor Aearotechnik
ADOZ
Iscar ČR
Meister Moravia
Vsetín
Kuřim
Brno
LOMA Systems
MEZ Pohony Vsetín
TOS Kuřim - OS (Alta)
Hrotovice
ADOZ
Precision Castparts Corporate CZ
TES Vsetín
MICo
Aguna
Mikulov
Škoda Electric
Alstom
Zlín
Emerson Climate Technologies Otrokovice
Chotěboř
Škoda Machine Tools (Alta)
ZLIN Aircraft
BOMAR
TAJMAC - ZPS
Cheops
Škoda Transportation
Bosch Rexroth
Moravský
Písek
TechnoCrane
Slušovice
Schmolz + Bickenbach
Brno Rifles - Zbrojovka Brno
Jihlava
Zodiac Aerospace (Driessen
Mould & Matic Solutions
Bosch Diesel
Daikin Device CZ
Aerospace CZ)
Říčany u Brna
CZ LOKO
Danaher Motion
Staré Město
Startech
Jihlavan Jihlava
DESTILA
Ray Service
Stříbro
EM
Brno
Kermi
Slavkov u Brna
Ledeč nad Sázavou
GKN Stromag Brno
EPM
DATEL Ledeč
Honeywell Environmental and- SAAB Czech
-Combustion Controls
Krnov
Albrechtice
Okříšky
Strážnice
Krnovské opravny a strojírny
Bosch Termotechnika
ALFA IN
IMI International - Norgren CZ
Soběslav
Český Krumlov
Aroja
Královopolská
M belt
Fronius
Nový Jičín
Bohumín
Pacov
Michel Precizní Technika
MOTOR JIKOV
Linde Pohony
Valtice
Muller Weingarten ČR
BONATRANS
Pacovské strojírny
NTS
Mauting
Kaplice
Poclain Hydraulics
Strakonice
Ostrava
Frýdek-Místek
Třebíč
BRAWE
Siemens, Industrial
ČZ
Znojmo
DPO - INEKON
Huisman Konstrukce
Tedom
Engel Strojírenská DENIOS Česko
Znojemské Strojírny
SE-MI Technology (Alta)
Šmeral Brno
Hauser
Siemens Kolejová vozidla
Velká Bíteš
Turbomachinery
Škoda Vagonka
BRANO
GROUP
PBS Velká Bíteš
Velešín
ZETOR
Milevsko
Jihostroj
ZKL
ZVVZ Machinery
Studénka
Karviná
MSV Metal Studénka
Gates Hydraulics
Vodňany
K. Hartwal
Břeclav
Sezimovo Ústí
A. Pöttinger
Žďas
Otis
Kovosvit MAS
Vítkovice
Kopřivnice
Vítkovice Holding
TATRA Kopřivnice
Beroun
PRAHA
Český Brod
Kolín
Ústí nad Orlicí
Hnátnice
Šumperk
Postřelmov
Uničov
28
6.The Czech Industrial Real Estate Market
Given the size of the country and number of its inhabitants, the Czech
Republic offers one of the most developed industrial markets in Europe.
The first modern logistics/industrial park was developed in Prague in
1997. The strong retail boom, attractive government incentives and the
entry of the Czech Republic to the European Union in 2004, further
enhanced both construction activity and demand in the warehousing
sector, spreading out to the regions.
The total modern industrial stock in the Czech Republic (which is
offered on the letting market), currently stands at 5.1 million m2
and consists of new, high quality buildings which meet the highest
international standards. This comprises both distribution space as well
as premises for light manufacturing purposes.
In the last fifteen years, the pace of development underwent different
stages. In the early years (2000–2004) the total new supply in
the country reached over 400,000 m2. In the following five years
(2005 – 2009), which can be referred to as the first boom period, the
total level of completions amounted to 3 million m2. Between 2010 and
2014, additional new supply reached over 1 million m2. This represents
an annual supply of between 200,000 m2 to 350,000 m2 in the last
five years, out of which, over 80% was developed after binding lease
contracts were signed.
Stock and Vacancy in the Czech Republic
5 500 000
5 000 000
4 500 000
4 000 000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
25%
20%
15%
10%
5%
0%
04 05 06 07 08 09 10 11 12 13 14
20 20 20 20 20 20 20 20 20 20 20
Stock
Vacancy rate
Source: JLL, April 2015
The most interesting areas for warehouse facilities are those within
close proximity of highway connections. The most developed area in the
Czech Republic is within the Greater Prague Region where nearly half
of the total modern warehouse space is concentrated, followed by Brno,
Pilsen and Ostrava. Recently, Mladá Boleslav in the Central Bohemian
region, the seat of the Škoda Car Company, has experienced rapid
development and today represents the fifth largest industrial submarket
of the country.
Industrial Supply in the Czech Republic
3%
2% 2%
Greater Prague
2% 1%
Brno region
5%
40%
7%
Pilsen region
Ostrava region
Central Bohemia
region
8%
Ústí nad Labem region
Liberec region
Pardubice region
14%
Olomouc region
16%
Jihlava region
Hradec Králové region
Source: JLL, Industrial Research Forum, April 2015
The largest logistics parks of the country are P3 Prague Horní
Počernice with nearly 320,000 m2, in Prague, followed by CTPark
Bor (270,000 m2) in the Pilsen region and Prologis Park Prague-Jirny
(220,000 m2). CTPark Ostrava and CTPark Brno conclude the top five
major industrial parks. These five parks account for about 25% of the
entire modern industrial stock on the Czech market.
The major developers of industrial parks in the country include CTP
Invest, Prologis, VGP, Panattoni and P3. Other large international
groups active on the market are Segro, Goodman and Amesbury. In addition, there are strong domestic players such as D+D Real, Uno
and Outulný Group.
Strong competition among developers, fuelled by growing demand in
the booming years around 2006–2008, led to speculative construction
which came to a halt at the beginning of the financial crisis. The
oversupply situation, which was suddenly a new experience for the
market, was gradually overcome by steady absorption combined
with a restrictive, conservative approach of developers and financial
institutions. A focus on pre-let and built-to-suit construction has
prevailed on the market since 2009 and has had a positive influence
on the vacancy rate. From almost 19% in 2009, vacancy dropped over
the following years to the current (Q1 2015) level of 7.8% for the Czech
Republic and 8% for Prague. The other large submarkets of Brno,
Pilsen and Ostrava are all between 7% – 11%.
The demand for distribution and light industrial space in the Czech
Republic in the last five years was ranging between 0.8 million m2 in
2011, to over 1.3 million m2 in 2014, which was the best annual result
in gross take-up in the markets history. The total volume leased to
industrial tenants in the last 5 years amounted to over 5 million m2. The
most demanded regions are Prague, Brno and Pilsen.
The major drivers of demand over the last several years were
predominantly manufacturing companies (mostly from the automotive
and electronics sectors), followed by logistics companies (3PLs). For the
past two years, manufacturing companies recorded more than a 35%
29
share of net take-up. Recently, a number of companies from the retail
sector, especially internet retailers, have started to take a higher share on
the take-up. This trend is expected to increase further in the near future.
Prime rents in the Czech Republic reflect the maturity of the market,
predominantly with the evolution of supply and demand which has
evolved considerably since 1997, when first industrial buildings were
developed in the Greater Prague region. Since then, the market has
registered a continuous stabilisation of prime rents reaching as high
as € 6.5 per m2 / per month in 1997 and dropping to € 5.5 per m2 / per
month towards the end of 2003. Increased competition from newly
delivered projects, combined with the global economic downturn since
2008 led to a further stabilisation of prime rents to the current level of
€ 4.25 per m2 / per month.
0
6 000
38.1%
16 000
393 000
7.3%
Prime Industrial Rents and Yields in the Czech Republic
13 000
100 000
14.2%
PARDUBICE
OSTRAVA
OLOMOUC
JIHLAVA
0
8 000
0%
0
100 000
3.0%
116 000
692 000
11.2%
SOUTH
BOHEMIA
VACANCY RATE
HRADEC
KRÁLOVÉ
CENTRAL
BOHEMIA
PILSEN
TOTAL INDUSTRIAL
STOCK (sqm)
2 000
828 000
6.7%
PRAGUE
0
381 000
3.6%
212 000
2 044 000
8.0%
0
0
0%
KARLOVY VARY
UNDER CONSTRUCTION (sqm)
27 000
65 000
15.9%
LIBEREC
ÚSTÍ NAD LABEM
0
124 000
14.3%
6 000
233 000
6.4%
8 000
170 000
0%
Czech Republic Logistics Market Overview
ZLÍN
BRNO
Source: JLL, IRF, April 2015
70 €
10%
60 €
8%
50 €
40 €
6%
30 €
4%
20 €
Remon L. Vos
CEO
CTP Invest
“Initially, multinationals came to the Czech
Republic for low cost manufacturing projects.
They soon discovered the strategic location
of the Czech Republic in relation to Germany,
Austria and the rest of central Europe, in
addition to its well-developed road network
and the availability of a highly qualified
and motivated workforce. Nowadays many of CTP’s clients have full size
factories with in-house R&D facilities in the Czech Republic. In many
cases they have consolidated a number of their European operations
with the Czech facility now operating as their main sites with long-term
commitments. CTP’s key clients include: TNT, DHL, UPS, Schenker,
Brembo, Valeo, IMI, Honeywell, ABB.
CTP has been investing in premium class properties throughout the
Czech Republic since 1998. CTP´s current portfolio includes more than
200 buildings, totalling 2.2 million sqm of let-able area and 400 clients
who together employ 35,000 people. On average CTP constructs 200,000
sqm per year, 70% for existing clients which says a lot. A large portion
of the network is strategically located in the regional cities close to the
country’s well renowned technical universities and long-term traditional
manufacturing and engineering hubs.
CTP owns and operates the CTPark Network, consisting of full service
business parks, offering 5 unique property types from 350 sqm for
suppliers and start-ups, to custom built projects of 70,000 sqm and more.
CTP itself employs 150 people who are always available on site to provide
project management, asset management and development services. CTP
is privately owned and the investments are financed through equity and
bank loans. CTP clients wish to invest in things they know and where
money is to be made, property is not their core business. CTP cooperates
closely with the Czech authorities to ensure smooth procedures.”
2%
10 €
0€
04 005 006 007 008 009 010 011 012 013 014
2
2
2
20
2
2
2
2
2
2
2
Prime Annual Rent
0%
Mid Point Yield
Source: JLL, April 2015
Martin Polak
Vice President & Country Manager
Prologis Czech Republic &
Slovakia
“Located at the heart of Central Europe,
the Czech Republic serves as a logistics
hub with easy and efficient connections to
key European markets, such as Germany,
Poland, Austria and Slovakia, and, from
them, to the rest of continental Europe.
For producers and manufacturers with global supply chains, this ease of
access is an essential factor in location strategy.
Furthermore, manufacturers need to maximize their efficiency in every way,
which means co-operating with all participants in the logistics chain. For
that reason, the Czech Republic, which offers a skilled and experienced
labour force in a central location, is a competitive solution.
At Prologis we are mindful of the structural changes in consumer spending
and technology, which lead to our customers needing to increase their
requirements for logistics space. We receive demand from manufacturers
to lease facilities in a variety of markets in the Czech Republic, especially
Prague. With our global experience we are committed to meeting these
requirements, by offering facilities that suit the needs of every customer in
the Czech Republic and around the world.
Our clients include: DHL, Globus, Raben, Gefco and Tesco.”
30
7.Real Estate: Rent or Buy?
The decision to rent or buy a production facility is one of the first which
should be taken in terms of real estate. This decision largely depends
on the goals of the manufacturing company, the time needed to be
operational, expansion plans, and the desired flexibility. Consideration
is also given to tax implications, the cash flow position and the
availability of real estate in a specific location.
Built-to-Suit (BTS) in a Warehouse Park is a specific form of BTS
project, where the specially designed facility is developed as a part of
an existing or planned warehouse park.
Three rental and three purchase methods for real estate will be
described in this chapter, as well as their implications and timeframe.
The main differences between a ‘classic BTS’ and a BTS in a
Warehouse Park are:
Option 2: A Built-to-Suit facility in a warehouse park
shorter timeline for the process;
Rent a facility? Three main options
Option 1: A Built-to-Suit facility on a greenfield site
Built-to-Suit (BTS) is a dedicated building developed specifically to suit
the particular needs of a given investor.
The entire investment process is led by the developer, who:
presents the site offers;
proceeds with the ‘due diligence’ of the selected site;
purchases the chosen site (subject to a binding agreement with the
investor);
finances and supervises the entire development process;
hands over the building to the investor in the form of a leasehold.
extracts the land from the agricultural fund, which is an additional
cost based on a fee per m2 usually in Czech crowns. The investor acquires a building:
in the form of a leasehold, based on a lease agreement (typically a
minimum lease length of 7–10 years and usually a rent-free period is
negotiated);
designed and constructed according to the investor’s requirements
(location, technical specification, shape of the building, purpose of
the facility – e.g. heavy production, light production, warehouse
‑sorting plant).
In this scenario the investor:
does not have to commit any funds for the purchase and there are
no initial payments;
can benefit from additional incentives such as being located in a
Special Economic Zone.
the selection of the site is determined by the developer’s portfolio;
the construction of the premises can start almost immediately, as
the site is typically equipped with the necessary infrastructure and
connections. Usually the developer already holds all environmental
and building permits required.
The location of the BTS project:
is determined by the developer’s site portfolio;
is limited to the logistics hub/main industrial regions in Czech, next
to motorways, national road junctions and by-passes, which does,
however, improve the transport connectivity.
Option 3: Leasehold of an existing building
In this scenario the investor becomes the lessee of a building in one of
the parks located in the main logistics regions in the Czech Republic.
The investor signs a lease agreement, with the typical minimum
lease length being 3 years.
The use of the space is determined by the developer (storage
space, light production, etc).
The leased premises have a standard technical specification.
The space can be adapted to the lessee’s needs, although the scope
of such change is limited.
Adaptations can be financed by the lessee or by the developer; the
cost may be paid as additional rent or offset against incentives and
in most cases, can benefit from tax exemptions, subject to meeting
formal criteria.
This option is preferable for investors who:
need the space as soon as possible;
only require a small production space;
need more flexibility
can conduct their manufacturing services in a standard A-class
warehouse which has been adapted to their needs.
31
Buy a facility? Three main options
Option 1: Fee development
Fee development is a form of cooperation between an investor and
a developer, where the developer takes all the responsibility in the
development process and provides the investor (i.e. future owner)
with a facility built on the Investor’s site and according to the investor’s
technical specification.
The developer:
Option 3: Acquisition of an existing building
In this scenario the investor acquires an existing building, and the land
it is on, according to technical specification and location preferences.
The building can be adapted to meet all of the investor’s requirements
and the Investor bears all the costs regarding any improvements.
proceeds with the due diligence of the site (which has already been
purchased by the Investor or is purchased by the Investor as part of
the process);
is responsible for financing and leasing the whole investment
process;
negotiates with the general contractor, provides all environment and
building permits, telecom connections, road access, construction,
permit for use and all paperwork for authorities and contractors;
delivers the building according to the exact timing and technical
specification required by the investor;
having finished the development, hands over the building to the
investor in the form of a freehold title.
Tomáš Míček
Country Head Czech Republic
P3
After completion of the whole process, the investor:
is the owner of the site and the building;
operates in a building, which has been designed and constructed
according to the investor’s specific business requirements;
can benefit from government incentives in a form of tax relieve.
Option 2: Own development
The investor leads the whole development process. This involves:
proceeding with due diligence and purchasing the site
determining the technical specifications for the premises;
being responsible for all paperwork and permits with regard to
authorities and contractors;
organising the tender for an architect and negotiating the conditions;
organising the tender from general contractor among construction
companies and negotiating conditions;
supervising the whole development process.
The funding of the project is the responsibility of the investor.
The investor is the owner of the site and constructed building.
The length of the project development is dependent on the investor.
“The Czech Republic’s industrial property
market goes from strength to strength,
reflecting how the country’s manufacturing
sector has become a key part of the
European supply chain. Reasonable labour
costs, political and economic stability, plus
its proximity to Western Europe continue
to make the country an attractive location in which to set up a factory.
These pull-factors are reflected in development activity in the industrial
property sector last year, which matched the record levels of 2007.
What we are seeing across our portfolio, which is one of the largest
in the country following our purchase of 11 parks last year, is also the
growth in higher value-add output, research and investment into new
technologies and services by Czech manufacturers. This is a sign of
how far the industrial property market has developed and matured.
The Czech Republic’s central location in continental Europe makes it
a key distribution centre in the supply chain to the West, particularly
Germany, as we see with our auto component supplier customers such
as Knorr-Bremse and Grupo Antolin. However, the Czech Republic also
serves as a strategic location from which to distribute to Central Europe
and Eastern Europe. We recently completed a 40,000 m 2 Build-to-Suit
(BTS) project at one of our Prague parks for VF Corporation, the owner
of premium designer wear brands Vans, Wrangler, The North Face
and Timberland, which will serve as a distribution hub for the region,
for example. E-commerce is another emerging trend in locations close
to large cities, as we have found in the growing cluster at the Horní
Počernice park on the outskirts of Prague. All these developments
support the positive prospects for the Czech market, which we are
responding to through our Build-to-Suit developments and ample land
bank.”
32
Overview of the permitting process
Once the decision has been made as to how the property will be
acquired, it is necessary to go through the steps of the various legal
and technical procedures in order to obtain an occupancy permit and
to be allowed to operate a constructed or refitted facility. The standard
project delivery procedures are outlined in the table below with the
provided average duration of each step being based on the typical
project and typical location.
The first step consists of the technical due diligence of the site and
the investigation of whether the property is contained in the local
master plan or, if a planning decision will be required. In addition,
utilities connection and various consents relevant to the development,
need to be obtained together with the environmental decision.
The second step is drawing up a building design suitable for the
building permit in order to obtain a valid building permit which will allow
the construction of the facility.
Finally, the commissioning and occupancy permit procedure should be
followed in order to receive the final, valid occupancy permit which will
allow the operation of the facility.
Permit process and estimated timing
Site selection
Technical due diligence (audit) of the plot (2 to 5 weeks)
Step 1
Zoning (Planning
Decision required
if there is no Local
Master Plan)
(3 to 12 months)
Environmental
decision
Utilities
connection
consents
Building
permit design
development
Additional consents which may be required
for a particular development plot:
– archaeological survey
– tree cutting permits
– rainwater discharge permit
(3 to 6 months)
(2 months)
(2 to 5 months)
(2 to 6 months)
Step 2
Obtaining a valid building permit (3 to 6 weeks)
Step 3
Construction (20 to 40 weeks)
Step 4
Obtaining a valid occupancy permit (3 to 6 weeks)
The above durations represent observed actual times of delivery for typical project in a typical location. In more complex situations the given
forecasts might not be sufficient to complete the particular activity.
Source: JLL, 2015
How quickly can you be operational?
This largely depends on the option chosen, which is discussed in
the previous chapter. The options involving BTS for renting or the fee
development or, own development of a facility on a greenfield are the
longest processes to realise and have to go through all four steps
which are described in the above table. This takes approximately 62 to
92 weeks from the selection of a greenfield site to an occupancy permit
being issued.
The process of renting a facility that will be constructed according to
the manufacturer’s needs (BTS) but, located in an existing park, will
take less time (33 to 65 weeks) as the different permits or work may,
in many cases, already be available, including infrastructure work and
environmental decisions. The building permit can also be obtained
beforehand so the work can start as soon as the decision as to the
particular site is taken and in parallel, modification to the existing
building permit will be requested to incorporate the specific building
requirements of the investor/manufacturer.
Renting or acquiring an existing facility is the fastest way to become
operational in the market. Only the modification of the existing premises
(up to 10 weeks) and/or the request for the occupancy permit will be
needed.
33
Time frame of the different rental and sales options (based on zoned land)
Rent
BTS
from 62
BTS in Park
from 33
Existing Park
to 65
from 13
to 46
Buy
Fee Development
from 61
Own Development
to 92
from 62
Acquisition of Existing Building
Weeks
to 92
from 13
0
10
to 92
to 46
20
30
40
50
60
70
80
90
100
Source: JLL, 2015
Market practice for leasing space
Leasing space
Lease length
typically three to five years; seven to ten years more common for BTS projects.
Rental basis
paid monthly in advance with rents denominated in Euro but paid in CZK.
Lease agreement
collateral
bank guarantee or cash deposit equivalent of three to six months’ rent and service charge, all increased by VAT. Along
with parent company guarantee.
Rent increases
annually, according to Harmonised Index of Consumer Prices (HICP).
Repairs
internal, tenant; external/structural and common areas, landlord, although recovered through service charges.
Insurance
landlord covers costs of building insurance (recovered through service charges), tenant covers insurance of its own
premises, contents and civil liability.
Agency fees
15% to 25% of the annual rent, increased by VAT, depending on the lease length. Fees are typically paid by the
landlord. Remuneration may be also calculated as a percentage of monthly rent or a percentage of the total value of
a lease contact. In case of renegotiations on behalf of the tenant, remuneration paid by the tenant may be based on the
percentage of the savings secured for the tenant.
Service Charges
ranges between 30 and 85 Eurocent / m² / month. Calculated on an open book basis.
Reinstatement
negotiable lease by lease.
Other developers’
incentives
partial or full fit-out, and/or rent-free periods: common practice in the market, usually in the range of four to eight months’
rent (in the case of a 60-month lease). Rent-free periods and fit out contributions depend on the transactional volume
and lease length.
Rental Cost
largely depends on the fit-out requests.
34
Market practice for purchasing space
Purchasing space
Asset sale: Transfer of plots of land is subject to VAT in the following cases:
Transfer of plots of land on which there are buildings firmly affixed to the land
Transfer of plots of land on which utilities (water, gas, electricity etc.) are built
Transfer of plots of land on which a building can be constructed according to a building permit
VAT
Transfers of other immoveable property, including plots of land other than those listed above, will be VAT exempt after
the expiry of three/five years from the first approbation (occupancy certificate) or from the date when the first use of the
structure commenced, whichever occurs earlier. There is an option to tax the transfer of immovable property after the
expiry of this period.
Transfer of “Intangible” right to build (i.e. transfer of right to build on a plot of land owned by the third party) is subject to
VAT. “Tangible” right to build (i.e. transfer of right to keep a building already constructed on a plot of land) is exempt from
VAT after 3/5 years from the date of the issuance of the first permit to use.
The 3 years period applies for Buildings or “Tangible” Right to build which were acquired before 2012, 5 years period
applies for Buildings or “Tangible” Right that were acquired starting from 2013.
The VAT rate of 21% VAT applies for buildings and land (commercial properties) with exception of the social housing.
Sale of shares: is not subject to VAT.
Real estate transfer tax
4% of purchase price (typically payable by the Seller, but can be agreed otherwise)
CIT
Asset sale: 19% on the difference between tax book value of the assets and the agreed sales price
Sale of share: is not subject to taxation, subject to meeting certain criteria
Real estate tax
Based on the size of the municipality and local coefficient. The basic tax rate is further increased by the number of floors
in the building (e.g. RET on 100 m2 of office space located in Prague is approx. CZK 1,500)
Registration fee
Fee for the registration in the Cadastral Register is CZK 1,000 (approx. EUR 36.50)
Prologis Park Prague – Úžice
35
8.Real Estate Acquisition
Definition of Property under Czech Law
Under the principle “superficies solo cedit” which is effective in Czech
republic from 2014 the space over and under the land, the buildings
and other devices set up on land (except for temporary buildings), as
well as everything embed in land or attached to wall of building, are
parts of the land.
Cadastral Register
All plots of land and, with certain exceptions set forth in the law, all
construction thereon in the Czech Republic (including residential
apartments and non-residential premises that have been categorized
as separate assets/units) are registered in the Cadastral Register.
The Cadastral Register is a record of rights to real property including,
in particular: ownership rights, mortgages, easements and pre-emption
rights (where the latter takes effect as a right in rem). Leases and
option agreements encumbering an ownership right are not obligatory
recorded in the Cadastral Register, however voluntary registration is
possible. The Cadastral Register also contains a Collection of Deeds,
which includes decisions of public authorities, agreements and other
deeds based on which the record in the Cadastral Register was made.
The Cadastral Register is publicly accessible; anyone is entitled to
access it in order to make extracts, copies and notes. Limited fees are
payable.
Owners of Real Estate
Under Czech law, every individual and legal entity enjoys the same
right of ownership of real property. The same applies to foreign citizens
and foreign legal entities in the Czech Republic.
There are no restrictions in acquisition a property in the Czech
Republic for foreigners.
Transfers of Real Estate
In order to transfer ownership title to real property, the following formal
requirements and procedures must be met and followed:
An agreement on the transfer of real property must be made in
writing. Signatures of the transferor and the transferee must be
affixed in the same document and must be officially verified.
Rights to Real Property Owned by a Third Party
(Iura in re aliena)
Right to build (právo stavby)
Right to build enables the placement of a building/construction on a
land plot of a different party. It is time limited for the maximum length of
99 years after which the building becomes the property of land owner
for the monetary compensation.
Servitudes
obligation of the owner to act or refrain from action in favour of a third
party
Lease (nájem)
Right to use a property for a definite or indefinite period of time
subject to payment.
Tenancy (pacht)
the right to use and collect profits from real estate for a definite or
indefinite period of time, subject to payment
There is no obligatory registration of the lease or tenancy in any
register in the Czech Republic. Right and obligations of the landlord
from the lease and/or tenancy are automatically transferred to
the acquirer with the transfer of the ownership right to the leased
property.
Zoning Plan and Planning, Building and Use Permits
Czech law generally requires planning and building permits for any
property development. Any use of the development, when completed,
must then be additionally approved by a building-use permit. A building
‑use permit must then additionally approve any use of the development,
when completed.
Planning permission, as a first stage permit, may be obtained only if
the application for planning permission (i.e. the development project)
complies with an approved urban study or zoning plan. If an urban
study/zoning plan is not consistent with the intended development
project, a change to the urban study/zoning plan is possible. This
procedure would likely, however, be rather time-consuming.
The transfer agreement must contain a description of the real
property to be transferred. For real property that is subject to
registration, this will be the information recorded at the Cadastral
Registry. For other real property not subject to registration, as
detailed a description as possible is required.
The approval process for planning permission can be extremely
complex and protracted, since a number of public authorities would
be involved; these include the Fire Department, Department of
Hygiene, Heritage Protection Office, Chief Architect’s Office, Transport
Department, Environmental Office and others. Permission itself, when
issued, comes from the relevant Building Office.
The transfer of real property that is subject to registration becomes
effective on the date of registration of the new owner in the Cadastral
Register. However, the transfer is effective retroactively as of the
date of filing of the application for registration with the respective
Cadastral Office. A transfer of real estate that is not subject to
registration becomes effective on the effective date of the relevant
transfer agreement. Since 1 January 2012 standardized forms are
used for applications to the Cadastral Register.
For construction works, a building permit must be obtained from
the Building Office. A building permit is required not only for new
construction, but also for major reconstruction and renovations or
alterations. Application for a building permit must be in compliance with
prior planning permissions.
36
What is the acquisition processes when acquiring from private
or public entities?
Acquisition from a private party
This acquisition process is straightforward and comparable to other EU countries. ‘Private party’ refers to a private individual or
entity.
Process when buying from a private party
Negotiation process
Preliminary Agreement (not obligatory)
The period between the preliminary agreement and the purchase
agreement can be used to obtain financing. The vendor is obliged to
make certain that the title to the real estate is clear and capable of
being conveyed to the buyer.
Purchase agreement
The purchase agreement must be signed in a written form and
signatures of parties must be on the same deed. The signatures must
be verified.
Proposal to register the transfer to Land Cadastre
In a period of time between proposal and permission to register
(completion of registration) the custody of purchase is often used in
order to eliminate the insecurity.
Permission to register
Usually within 2 – 3 month from the submission of proposal to the
relevant Cadastral Office.
Acquisition from a public entity
A significant proportion of real estate in the Czech Republic is
owned by the state and local authorities. Such real estate can be sold:
1.Via direct purchase by the purchase agreement which must be
confirmed by administrative body and the purchase price must be at
arms-lengths principal in given place and time.
2.Via public tender.
Tender process when buying from a public entity
Initial contact public entity and investor
The property assigned for sale is published by State representing office
in property affairs (Urad pro zastupovani statu v majetkovych vecech).
Valuation
The public authority set the initial asking prices based on the valuation
by an independent valuator. The initial asking price is mostly lower than
usual price in given place and time
Public tender process
Announcement – at least 30 days before the planned date of the tender.
Payment of deposit – as specified in the auction terms.
Submission of offers.
Assignment decision – the contract is formed by the assignment
decision.
37
9.Setting-up a Business
Introduction
A major change of private law, as well as of the law of business
corporations, took place in 2014 and simplified the process of setting
up a business presence in the Czech Republic.
All forms of business are accessible to foreign investors, entities and
persons at the same conditions as those of Czech nationals.
Below, we present the main features and requirements for setting
up a business in the most frequent legal forms used in the Czech
Republic.
Limited Liability Company (“společnost s ručením
omezeným – s. r. o., spol. s r. o.”)
A limited liability company is set up by a memorandum of association in
the form of a notarial deed.
Following that, the founder(s) deposit the registered capital in a special
bank account or, hand the non-monetary contribution to the registered
capital over to the entitled person.
The minimum registered capital of a limited liability company is CZK 1
(approximately 3 Euro cents)
An application for registering the new company must be filed with the
relevant Commercial Register within a term of 6 months.
Czech regulation also stipulates the possibility to directly register a
newly established company through a notary who draws up the articles
of association (please note that this system is not yet in operation).
shareholders are personally responsible for the debts of the
company only up to the unpaid part of their share of the registered
capital;
shares can also be issued in the form of “certificates” (in Czech:
kmenové listy) similar to shares in a joint stock company; Certificates
are transferable by endorsement and handover and do not require a
written contract;
transfer or pledge of (ordinary) shares can be made if not restricted
by the memorandum of association. For a transfer, a written contract
with verified signatures is required;
company is represented by one or more executives. Legal entity can
also be appointed as an executive of the company, in that case the
executive of such a legal entity represents the company;
creation of a supervisory board is optional only.
Joint-Stock Company (“akciová společnost – a. s.,
akc. spol.”)
Incorporation of a joint-stock company generally involves procedures
similar to those used for a limited liability company.
Setting up a joint-stock company involves the adoption of articles
of association in the form of a notarial deed. Both natural and legal
persons can participate in a joint stock company. The company can be
established by a sole founder.
A joint-stock company establishes registered capital which is divided
into shares of their nominal value. Contribution to registered capital can
be made via a monetary or non-monetary contribution. In the case of a
non-monetary contribution, the contribution is evaluated by an expert
chosen by the founder(s) or board of directors
Setting up a limited liability company includes:
execution of a memorandum of association or, a deed of association
in the form of a notarial deed;
payment of registered capital in the amount of at least 30% of the
registered capital in the case of a monetary contribution or the whole
contribution in case it is non-monetary;
registration in the Commercial Register; obtaining trade licences in
accordance with the scope of business; and
registration with a tax office.
The main features of a limited liability company are:
maximum number of shareholders is not limited;
ownership of a limited liability company with one shareholder by
another limited liability company with one shareholder is permitted;
nominal value of one share is at least CZK 1;
shareholder can own more shares of several types (if stipulated in
the articles of association);
preference shares can be issued by the company;
After that, the company then issues shares. The issue rate cannot be
lower than the nominal value of the share. The establishment of a joint
‑stock company is effective when each founder has paid (i) the share
premium and (ii) at least 30% of the nominal/book value of the issued
shares.
Shares
company can issue either shares with a nominal value or, so-called
no-par value shares, whose value is set as a proportion between the
actual registered capital and the number of issued shares
bearer shares can be unlimitedly transferred, whereas registered
shares are transferred by endorsement
shares can be either certified or book-entry only
rights and duties of a shareholder differ depending on the nature of
shares. A joint-stock company is based on ordinary shares but can
also issue preferred shares.
38
The main features of a joint-stock company are:
shareholders are not personally responsible for the debts of the
company
minimum share capital is CZK 2,000,000 or, EUR 80,000 (the Czech
legal system allows share capital to be in EUR if the company’s
accounting is kept in EUR.)
founders of a joint-stock company shall decide whether the company
will be administered by the board of directors and supervisory board
(dualistic management) or, by an administrative board and statutory
director (monistic management)
Limited Partnership (“komanditní společnost – k. s.,
kom. spol.”)
A limited partnership can be founded by at least two persons where
one is responsible to an unlimited degree for the debts of the company
(general partner) whereas the other is responsible to a limited degree,
CTPark Bor
similar to a shareholder in a limited liability company (limited partner).
Profit and loss are divided between the company and the general
partners. Part of the profit allotted to the company is distributed
between the limited partners. Limited partners do not cover the losses
of the company.
Branch of a foreign company (“Pobočka zahraniční
osoby”)
The presence of a branch of a foreign entity also requires registration in
the Commercial Register. The branch needs to apply for trade licences. The branch of a foreign entity does not have a separate legal entity and
it is represented by the head of the branch appointed by the foreign
entity.
39
10. Czech Tax Structure
Section provided by PwC Tax
Corporate – taxes on corporate income
The 19% CIT rate applies to all business profits, including capital
gains from the sale of shares (if not exempt under the participation
exemption regime).
There is a special tax rate of 15% levied on dividend income of Czech
tax resident entities from non-resident entities (unless subject to
participation exemption).
Capital gains
Capital gains from the sale of shares in a Czech company may be
exempt from Czech taxation if all of the following conditions are met:
The Czech or EU parent holds at least 10% of the shares of the
subsidiary for at least 12 months.
The subsidiary is a tax resident of the Czech Republic, another EU
member state and/or Switzerland, Norway, Island and Liechtenstein1.
Both the parent and the subsidiary have one of the legal forms listed
in the Annex to the EU P/S directive.
The parent or the subsidiary are not exempt from corporate taxation
or may not choose to be exempt, and the tax rate applicable to their
income is greater than 0%.
Thin capitalisation
Thin capitalisation applies only to related-party loans.
The debt-to-equity ratio for related-party loans is 4:1 (6:1 for the
financial services industry),
Unrelated-party loans (e.g. bank loans) guaranteed by a related
party are not considered related-party loans for thin capitalisation
purposes. If, however, a bank provides a back-to-back loan to a
Czech entity where the loan is provided to the bank by a related
party, such a bank loan to the Czech entity is considered a related
party loan.
Interest on profit-participating loans is not deductible for tax
purposes.
1
As of the relevant double tax treaty with Liechtenstein is effective.
Controlled foreign companies (CFCs)
There is no CFC legislation in the Czech Republic.
Investment incentives
Investment incentives are available only to Czech entities (including
Czech subsidiaries of foreign companies). Incentives include income
tax relief, financial support for the creation of new jobs, financial
support for training or retraining of employees, cash grant on capital
expenditures, and the transfer of land at a specially reduced price.
Research and development (R&D) allowance
Up to 100% of specific R&D expenses (or costs) incurred in a given tax
year may be deducted from the tax base as a special tax allowance.
These costs are deducted twice for tax purposes: once as a normal
tax-deductible cost and then again as a special tax allowance. An additional 10% may be applied from the difference by which the
current year qualifying costs exceed those of the prior period.
Value-added tax (VAT)
VAT is charged at 21% on the supply of goods and services within the
Czech Republic, but certain supplies (such as groceries) are taxed at a
rate of 15% or 10% respectively (e.g. books).
Real estate transfer tax
Real estate transfer tax is governed by a separate law, but the rules
have mostly remain the same, as well as the tax rate of 4% on the
greater of the transaction price or the officially appraised value. The
taxpayer may be contractually agreed (previously, it was the transferor
with the transferee as a guarantor). Currently an amendment is
discussed by the government, which, among others shifts the tax
liability on the buyer.
Information on the content providers
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40
JLL Office
Myslbek
Na Příkopě 21
Praha 1
110 00
Czech Republic
+420 224 234 809
JLL Contacts
Tewfik Sabongui
Managing Director
Harry Bannatyne
Head of Industrial Agency
Ondřej Novotný
Head of Research
Blanka Vačkova
Senior Research Analyst
JLL
Czech Republic
+420 224 234 809
[email protected]
JLL
Czech Republic
+420 224 234 809
[email protected]
JLL
Czech Republic
+420 224 234 809
[email protected]
JLL
Czech Republic
+420 224 234 809
[email protected]
www.jll.cz
www.jll.eu/cee_research
www.warehousefinder.cz
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