- Country with long and rich industrial heritage - Leading recipient of FDI in Central and Eastern Europe - Stable economy: robust growth, low inflation - Strong technical education: over 70,000 students Total number of students: 298,196 Usti n. L 8,688 Liberec 7,633 Bachelor programme Master programme K. Vary 798 Post graduate M. Boleslav 325 Foreign students H. Kralove 9,856 Cheb 1,972 Kladno 275 Opava 2,192 Prague 113,601 Kolin 220 Pardubice 7,058 Plzen 15,812 Source: Institute for Information on Education, Statistical Yearbook, 2005 Ostrava 28,819 Olomouc 16,684 Pisek 21 Prerov 51 J. Hradec 1,233 Zlin 7,508 Trebic 59 C. Budejovice 9,070 Karvina 1,954 Litomysl 68 Brno 62,763 Lednice 1052 Kunovice 484 Inflow of foreign direct investment 12 8 6 11 8.5 4 6.3 5 2 5.6 3.7 2.6 Source: CNB, Oct. 2006 20 05 20 02 20 01 20 00 19 99 19 98 20 04 2.1 1.3 19 97 1.4 19 96 19 95 0.9 19 94 0.7 19 93 0 5 20 03 USD BN 10 Foreign investors in the Czech Republic ╌ 45% of employees in industry ╌ 55% of industrial production ╌ 65% of industrial exports ╌ 400+ US companies ╌ 165 Japanese companies ╌ 20 Taiwanese companies ╌ 15 Korean companies Salaries in regions of the Czech Republic Average gross monthly salary in 2005: 19 030 CZK = 639 EUR Region Prague region Central Bohemia region South Bohemian region Plzeň region Karlovy Vary region Ústí region Liberec region Salaries (EUR) 804 625 558 593 537 574 571 Region Hradec Králové region Pardubice region Vysočina region South Moravian region Olomouc region Zlín region Moravian Silesian region (Exchange rate: 1 EUR = 29,784 CZK; average exchange rate for 2005 published by Czech National Bank) Salaries (EUR) 550 549 547 571 544 551 592 Czech Republic: location & transport infrastructure ´European Banana´ Heartland of Europe European Logistic Centres Czech Republic – no1 global services location in Europe! Country Score Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. India 7.76 1 China 7.34 2 Czech Republic 7.26 3 Singapore 7.25 4 Poland 7.24 5 Canada 7.23 6 Hong Kong 7.19 7 Hungary 7.17 8 Source: A.T. Kearney Global Services Location Index 2005 Source: EIU, 2005 Major investors in Research and Development 4 18 3 19 1 7 6 1) Valeo 5 2 2) Ricardo 3) Rockwell Automation 21 17 4) STMicroelectronics 5) S3 Silicon&Software Systems 6) Honeywell 8 7) Siemens VDO 8) Robert Bosch 9) Bosch Diesel 10) Rieter 11) Honeywell 16) Hayes Lemmerz 12) AMI Semiconductor 17) Mercedes Benz 13) ON Semiconductor 18) Siemens Kolejová vozidla 14) Siemens Automotive 19) Latecoere 15) Visteon 20) Freescale Semiconductor 25 22 10 15 9 23 11 12 24 14 13 21) Matsushita 22) Roper Industries 23) Tyco Safety Syst. 24) IMI-Norgren 25) Siemens Rail 20 16 Selected U.S. Investment Projects in the Czech Republic CHART INDUSTRIES BELDEN CDT JOHNSON CONTROLS Manufacturing BLACK&DECKER TRW DELPHI PACKARD Facilities PARKER HANNIFIN ARVINMERITOR EATON DONALDSON PITSBURGH CORNING DANA AERO VODOCHODY (SIKORSKY AIRCRAFT) OPW OWENS ILLINOIS TRW KIMBERLY -CLARK PROCTER&GAMBLE PEPSICO EASTMAN CHEMICALS PRAGUE THERMO KING ARROW BRIGGS & STRATTON LEAR PLASTIPAK PACKAGING OSTRAVA BAXTER AVX KIMBERLY SC JOHNSON GOODYEAR PHILIP MORRIS -CLARK WESTVACO TRW TIMKEN HAYES LEMMERZ BOBCAT INGERSOLL-RAND CTS CORP. TOMKINS MASTER FOODS MORA PRECISION CAST CORP. VISTEON DURA AEROSPACE CZECH PRECISION FORGE KRAFT FOODS TATRA MEOPTA (TEREX) ILLINOIS TOOL WORKS ON SEMICONDUCTOR DURA AUTOMOTIVE DELPHI TYCO ADC HONEYWELL DANAHER BRNO ANDREW TEXTRON OTIS COLLINS & AIKMAN Update: June 2006 Selected U.S. Investment Projects in the Czech Republic Business Support Services or R&D Centers JOHNSON CONTROLS HONEYWELL SUN MICROSYSTEMS PRAGUE COMPUTER ASSOCIATES EXXON MOBIL ACCENTURE EDS ROCKWELL AUTOMATION INGERSOLL-RAND/THERMO KING HEWLETT-PACKARD YOUNGER OPTICS SYSTINET MONSTER TECHNOLOGIES ABBOTT LABORATORIES ADOBE SYSTEMS QUADBASE ARIBA TRW Update: June 2006 IVAX OSTRAVA SCHNEIDER LOGISTICS ROPER GE MONEY MULTISERVIS ON SEMICONDUCTOR MOTOROLA BRNO MAYO CLINIC FREESCALE TYCO IBM HONEYWELL AMI SEMICONDUCTOR SYMBOL TECHNOLOGIES Eaton Industries investment 50 mil. USD several hundred new jobs potential for future expansion “We are pleased to be bringing new job opportunities and technical skills to the region.” Jean-Pierre Lacombe, Vice-President, Europe, Eaton Rockwell Automation Rockwell Automation: development laboratory in Prague -- In the Czech Republic since 1993 -- Cooperation with Czech Technical University -- Cooperation with University of Western Bohemia -- One of 5 independent development labs of RA in the world -- 20+ development engineers -- Development of software for industrial machinery Schneider Logistics ╌ Financial and accounting SSC ╌ Located in Olomouc – Central Moravia ╌ Start of operations: March 2005 ╌ Support to customers of SL from all over Europe ╌ Operation in up to 12 European languages ╌ Over 300 employees Computer Associates Mainframe Center of Excellence in Prague ╌ First of a kind, world-class development facility for next-generation software solutions ╌ Total of € 36 million planned investment ╌ Planned staff: 200; 65% of that to be recent graduates ╌ Over 4,000 sq meters, located in “The Park” business area in Prague 4 ICRC – International Clinical Research Center ╌ Project of the Mayo Clinic and St. Anne's university hospital in Brno ╌ Creation of a new type clinical-research-educational center focused on cardio- and neurovascular diseases, internal medicine, neurology and oncology ╌ Investment of CZK 2 mld Will become one of the largest platforms for medical and biotech research in the CEE Investment Incentives In the Czech Republic available for: - manufacturing - technology centers - business support services - training centers - job creation Investment Incentives Available for different projects in the form of: - corporate tax holiday - direct subsidies - training and re-training grants - job creation grants - R&D expenses deductions EU financial support: areas of support ╌ Development of human resources (training/retraining, etc) ╌ Innovation and technological development (incubators, technological platforms, science and technology parks, clusters, industry-academia cooperation, innovation projects, capacity buildings of R&D centers, etc.) ╌ Consultancy services (management consultancy services, quality certification, HR management, etc.) ╌ Access to financial resources (venture capital, seed financing, banking services for small & medium -sized enterprises, etc.) CzechInvest - our services -- Collect/provide information -- Identify sites and buildings -- Find potential suppliers / JV partners -- Liase with government bodies -- Handle incentives applications -- Administer Structural Funds -- Provide aftercare services -- All our services are free of charge WHY the Czech Republic ? ╌ People ╌ Infrastructure ╌ Cost efficiency ╌ Market ╌ Strong partners … nice place