Automotive Brochure 2015 97

8/18/2019 Automotive Brochure 2015 97

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Automotive Industry

in the Czech Republic

INVESTMENT OPPORTUNITIES


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Contents

www.czechinvest.org

Last update: February 2015

1The Czech Automotive Industry at a Glance

2

Passanger Car Manufacturers

4Buses and Commercial Vehicles

6OEM Supplier Case Studies in the Czech Republic

10Top Automotive R&D Location

11Selected Czech-Based Technology Centres

12Czech Technical Universities and AutomotiveR&D Projects

13

Education and Workforce

14Labour Market

15Financial Support

16 Automotive Supplier Database


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1

The Czech Automotive Industry at a Glance

Success breeds success and this adage certainly epitomises the Czech Republic, which hosts one

of the highest concentrations of automotive-related manufacturing and design activity in the world.

With passenger car production at 107.5 vehicles per 1,000 persons, the Czech Republic has

maintained its supreme position among world automotive leaders in terms of per-capita output.

It is also among the fifteen largest global passenger car producers by volume. The Czech

automotive industry employs more than 150,000 people and accounts for more than 20%

of both Czech manufacturing output and Czech exports.

The Czech automotive centre of excellence plays a key role not only in the European but also in the

global perspective. Based on the country’s century-long engineering tradition, good infrastructure

and skilled workforce, it significantly contributes to automotive manufacturing and R&D.

While the country has the capacity and resources to accommodate three major carmakers

– Škoda Auto (Volkswagen group), TPCA (Toyota/PSA joint venture) and Hyundai MotorManufacturing Czech – and holds excellent business opportunities for suppliers, the Czech

Republic is poised to consolidate its position as one of the leading European centres for

automotive-related design and R&D activity.

Why to Invest in the Czech Republic

-- Strategic location in Central Europe; direct access to the EU market of 500 million consumers;

time and logistics advantages

-- Highly integrated into the European automotive value chain

-- Well-developed transport and telecommunications infrastructure

-- Robust supplier base-- Highly educated workforce, good access to university graduates with technical education

-- Strong innovation potential for R&D projects

-- Positive approach of the Czech government, investment support covering up to 25%

of eligible costs through a transparent system of investment incentives

-- First-class support from CzechInvest

We are convinced about theappropriateness of our decision tokick off our new facilities for theproduction of premium brakes in theCzech Republic. In this country weare finding skilled human resourcesand authorities ready to support ourchallenging start-up. Thanks goalso to CzechInvest, which facilitatedour decision through its professionalassistance.

Roberto Vavassori,

Business Development Director, Brembo

“

”

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Source: AIA 2015

The Czech automotivesector had a record--breaking year in 2014with 1,278,000motor vehicles

manufactured.

Production of Motor Vehicles in the Czech Republic


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2

Škoda Auto:120 Years of Automotive History

In 1895, Václav Klement and Václav Laurin founded their business in Mladá Boleslav.This makes ŠKODA one of the oldest automobile brands in the world. In 1991ŠKODA AUTO became Volkswagen Group’s fourth brand after VW, Audi and Seat. Management,marketing, product development and production processes underwent fundamental modernisation.In 2001 the brand’s first plant outside Europe was built in Aurangabad, India. Production of ŠKODAmodels was launched at the Volkswagen Group’s plant in Shanghai, China in 2005.

ŠKODA AUTO is continuing to successfully implement its growth strategy. In 2014 the Czechcarmaker achieved the best sales year in its history, delivering 1,037,200 vehicles. In 2014,the comprehensive model campaign, which had been initiated four years previously, was once

again the top priority for the Czech manufacturer. In March, the pioneering “ŠKODA VisionC”concept was the first highlight of last year’s ŠKODA model premieres. The Octavia G-TEC,Octavia Scout, three special Monte Carlo editions for the Citigo and Yeti and Rapid Spacebackwere introduced over the course of 2014. In November the new ŠKODA Fabia providedthe grand finale of last year’s model roll-outs.

The Octavia is the heart of the brand. The third generation Octavia is proving to be a massive hit,with worldwide sales totalling 389,300 in 2014. The ŠKODA Rapid performed extremely welland became the second best-selling model with 221,400 units delivered. The ŠKODA Fabiaachieved sales of 160,500 units last year. In addition, the ŠKODA Yeti achieved sales of 102,900units, the Superb attracted 91,100 customers and the smallest model in the line, the Citigo,had sales of 42,500 units. The ŠKODA Roomster won over 29,600 customers around the world.

As part of its model and design campaign, the company is further strengthening its marketingactivities on both the European and international markets. To support the plan, ŠKODA

is continuously investing in the expansion of its Czech production plants in Mladá Boleslavand Kvasiny. In addition to strengthening the company’s solid position in Western Europe(+11.8% in 2014), the Czechs are also focusing on the growth market of China, which is ŠKODA’sstrongest individual market with total sales of 281,400 units in 2014.

Passenger Car Manufacturers

www.skoda-auto.cz

The characteristics of today’s CentralEuropean automotive industry as I seethem are state-of-the-art technology andhighly competitive factories; a highlyskilled workforce and long tradition inengineering together with favourablewages and especially unit costs. Andlast but maybe most important, accessto know-how and division of labour. In theCzech Republic ten years ago our rolesolely was to maintain and exploit these

advantages.Dr. Carl H. Hahn, Honorary Chairman,

former Chairman of the Boardof Directors, Volkswagen AG

“

”

Škoda Auto operates13 plants in sixcountries in Europeand Asia and exportspassenger cars to morethan 100 markets around the world.


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Toyota Peugeot Citroën AutomobileGreen Factory in the Centre of Europe

Toyota and PSA Peugeot Citroën launched production of cars at the TPCA (Toyota Peugeot Citroën Automobile) plant in the Czech Republic in early 2005. Four years after the carmakers unveiledtheir joint-venture project and three years after they chose a site near the Czech town of Kolín,the first cars rolled off the production line – one each of the new Toyota, Peugeot and Citroën

models. TPCA have produced totally more than 2.5 million of cars till nowadays.The facility was designed primarily by Toyota, the partner that took most of the responsibilityfor manufacturing. PSA Peugeot Citroën is responsible for the supplier network of TPCA.TPCA has been constructed as one of the greenest factory in Europe. From the beginning,TPCA pays attention for the investments into the most environment-friendly productiontechnologies and promotes environment-friendly thinking of employees. Its results of energyand water efficiency highly above the industry average confirm the success of this effortas well as the results of waste management system with low production of waste and highratio of recycling. At around EUR 750 million, the state-of-the-art plant located about 60kilometres east of Prague is one of the biggest foreign investments in Central Europe to date.The capacity of the plant is 300,000 vehicles produced in one year. Currently TPCA producesnew generation of models Toyota Aygo, Peugeot 108 and Citroën C1, small city cars with lowfuel consumption and emissions.

Roughly 80 percent of supplies come from the Czech Republic. More than 99% of the carsare exported to European markets, mainly France, Italy, the United Kingdom, the Netherlandsand Germany. TPCA has roughly 3,000 employees.

Hyundai Motor Manufacturing CzechThe Most Modern Carmaker in Europe

Another success story began with the announcement of a EUR 1 billioninvestment in Nošovice, Moravian-Silesian Region, in 2006. At that time, theKorean car manufacturer Hyundai Motor Company decided to build here its very first productionfacility in Europe, which according to expert opinion is currently the most modern car factory inEurope. By building this factory, Hyundai Motor Company expanded its global production network,which includes other manufacturing facilities in Korea, China, India, the United States, Russia,Brazil and Turkey.

Hyundai Motor Manufacturing Czech (HMMC) produces three passenger-car models – ix20, ix35and i30. The manufacturing facilities consist of a stamping shop, a welding shop, a paint shop,

afi

nal assembly shop and two transmission shops. The transmission shops are of particularimportance as they produce transmissions not only for HMMC but also for its sister companyKia Motors Slovakia in Žilina. Conversely, Kia’s Slovak plant provides HMMC with motors,thus creating a unique complex of mutually cooperating units.

The importance of Hyundai’s huge investment, one of the biggest in the Czech Republic to date,was also based on the fact that Hyundai came to the Moravian-Silesian Region in the nick of time,so to speak, as the region suffered from high unemployment resulting from painful restructuringprocesses in its traditional industries. Hyundai offered to create approximately 3,300 jobs andadditional 7,000 were created by component suppliers that followed Hyundai to the CzechRepublic. The Czech government and the Moravian-Silesian Region followed up this investmentby spending billions of Czech crowns on infrastructure, particularly roads and railways.

In 2008, manufacturing capacity was set at 200,000 cars per year, a figure that was reachedafter only two years of production. Upon initiation of three-shift operation in autumn 2011,

the maximum capacity of Hyundai Motor Manufacturing Czech has risen to 300,000 carsper year. Because the production plans were exceeded in 2013 and 2014, HMMC plansto produce 330,000 cars in 2015.

Since 2008, we have developed ourbusiness to become a truly ‘European’brand. Our Czech plant is at the heartof our European success, producingthe two best-selling Hyundai modelsin the region and making one car everyminute. It’s cars such as New ix35and New Generation i30 that havehelped us achieve a record-highEuropean market share of 3,5%in 2012.

Allan Rushforth,former Senior Vice President and COO,

Hyundai Motor Europe

“

”

www.hyundai-motor.cz

At the beginning we expected from theCzech Republic benefits like the longtradition of the automotive industry witha developed network of suppliers anda good location in the middle of Europeclose to markets with good potential

for future growth. Now, after almost tenyears in the Czech Republic, we confirmthat we made the right decision for ournew home ground. Not just becauseof the well-known benefits, but wealso recognise the capable and skilledmanpower that is willing to learn andimprove itself. This is essential for ourfuture growth.

Satoshi Tachihara,former President of TPCA

“

”

TPCA pays attention for the investments into the most environment-friendly productiontechnologies and promotes environment-friendly thinking of employees. Its results of energyand water efficiency highly above the industry av age confirm the success of this effortas well as the results of waste m ageme syste with lo production of waste and highratio of recycling. At around 50 m n, t e tate-o -t e-art p ant located about 60kilometres east of Prague i one of biggest f r i v tments i Central urope to date.The capacity of th lant is 0,00 s pr u in e y . entl PCA producesnew generation of o e s Toyot , ugeo an tro , mall city c r th lowfuel consum tion an e issi ns.

Roughly 80 pe ent s li come from the Czech Republic. More t the sare exported to Euro kets, mainly France, Italy, the United King etherlandsand e . TP A has roughly 3,000 employees.

ut wend skilled

earn anda or our

shi Tachihara,ident of TPCA

www.tpca.cz


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4

Buses and Commercial Vehicles

Iveco Bus

Iveco Czech Republic, with its headquarters in Vysoké Mýto, is thelargest factory of the Iveco Group, the second largest bus manufacturerin Europe. The company focuses mainly on production of intercity buses, though starting in 2011the production programme newly includes Citelis 10.5 m and 12 m city buses with diesel and CNGengines, as well as bodies for trolleybus versions.

Iveco Czech Republic also offers the widest range of products of the entire Iveco Group, includingminibuses, tourist coaches and city, suburban, long-distance and intercity buses. Fundamentaldiversification over the last three years has resulted not only in new designs, improved passengercomfort and outstanding consideration for the environment, but also great value for money,thanks to the quality, life service and low operating costs of the buses. In addition, a focuson environmental friendliness has brought about a significant expansion of the range of buseson offer that use alternative fuels.

In the area of city transport, Iveco Bus is maintaining its current position as the European leaderin terms of environmental protection, reduced emissions and expansion of the range of buses

powered by alternative fuels. The line of very popular low-floor Citelis city buses has beenexpanded with the addition of the low-entry city/suburban/long-distance Crossway LE, whichhas become a sought-after model and is offered in a three-door version. The traditionally verystrong position of Iveco Bus in the segment of long-distance coaches continues to be supportedby the Arway and Crossway models.

www.iveco.com

SOR Libchavy

SOR Libchavy, the leading Czech bus and coach producer, was established in 1991 and its firstbus was on the road only two years later. The company currently produces 550 buses of its owndesign in all categories annually. Compared with the competition, the main benefit of SOR’sbuses is their low weight, which on average is up to two tonnes lower than comparable busesfrom other manufacturers. Due to this lower curb weight, fuel consumptionis 14.5% less thanthat of other types of buses in the market.

SOR Libchavy produces buses in city, intercity, tourist and low-floor city versions. These buseshave been equipped with IVECO Euro VI engines as standard since 2014.

Another innovation in the pipeline is the production of two more fullylow-floor city buses.For the intercity bus segment, SOR offers three mid-floor models as well as a low-entry version.

The company also produces electric buses, trolleybuses and CNG buses. SOR obtainedISO 9001 certification in 2001. Exports account for around 50% of total output, and increasedproduction is aimed at foreign markets like Slovakia, the Baltic states, Serbia, Moldova, Russia,Ukraine, Denmark, Belgium, Holland, Germany, Croatia and Bulgaria.

www.sor.cz

Commercial Vehicles


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TATRA

TATRA TRUCKS a.s. is one of the oldest vehicle manufacturers in the world.It has always been situated in Kopř ivnice, a town in the eastern part of theCzech Republic, the Moravia-Silesia region.

TATRA TRUCKS a.s. has two subsidiaries – Taforge a.s. and Tafonco a.s.Its core production programme includes heavy-duty off-road trucks and vehicles for combinedoff-road and on-road transport which have been continuously improved due to increasingcustomer requirements. One important advantage of TATRA, a. s., not only in the fieldof development but also production capacities, is the high level of human potential.

The TATRA brand trucks are based on the TATRA vehicle design which has not yet been successfullycopied by anybody. Heavy trucks from Kopř ivnice are famous for their passability through themost difficult terrains in extreme climatic conditions, high reliability and excellent utilitycharacteristics. TATRAs can adjust to bitter frosts as well as abnormally high desert temperatures.

While other heavy truck manufacturers that originated in the historical territory of the Czechstate either did not exist for very long or were swallowed up by more successful ones,the TATRA brand is still alive. It is the only one to keep the flag of the Czech design schoolhoisted in its segment.

www.tatratrucks.com

ŠKODA ELECTRIC

Is a leading global manufacturer of electric drive units and tractionmotors for trolleybuses, tramways, locomotives, underground trains, etc. and is continuingthe long tradition of production at the Škoda Works in Plzeň, which began at the company’sElectrical Engineering Works in 1901.

ŠKODA ELECTRIC offers its customers modern 12m, 15m and 18m low-floor trolleybuses.Every Škoda trolleybus features all necessary electrical equipment housed in a containeron the vehicle’s roof. For travel outside of trolley lines, the buses can be equipped withan auxiliary diesel generator that complies with the EURO VI standard or with a battery unitincluding a microprocessor-controlled voltage inverter with the possibility of recuperation. Škodais a global leader in supplying trolleybuses to the whole world. In 2013 Škoda concludeda record-setting order for 125 modern trolleybuses for Riga, Latvia, and also carried out major

orders for buses delivered to, for example, the Bulgarian cities of Sofia, Burgas, Pleven andStará Zagora, as well as the Slovak capital, Bratislava.

Thanks to the company’s extensive experience and successes in the area of developmentand production of trolleybuses, it has incorporated into its portfolio a range of vehicles withecological alternative drive systems: the hydrogen-powered TriHyBus, series-produced HybridH12 and the Battery bus. One of the company’s key products in the area of e-mobility is its fullybattery-powered bus called the ŠKODA PERUN (Pure Electric RUNner), which is a twelve-metrelow-floor electric bus with a ŠKODA asynchronous traction motor and maintenance-free Li-Poltraction batteries. For the purpose of charging the vehicle within a period of only eight minutes,Škoda Electric also possesses a concept of automated charging infrastructure, which fulfilsthe COMBO II global charging standard and is thus compatible with the infrastructuredeveloped for the automotive sector.

copied by anybody. Heavy trucks from Kopř ivnice are famous for their passability through themost difficult terrains in extreme climatic conditions, high reliability and excellent utilitycharacteristics. TATRAs can adjust to bitter frosts as well as abnormally high desert temperatures.

While other heavy truck manufact ers that originat in the istorical territory of the Czechstate either did not exist for ver ng or were s l lowe up by ore successful ones,the TATRA brand is sti ll al . It is t only one e flag of e Czec esign schoolhoisted in its segm t.

ks.com


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Airbag&SafetyCar Trim

Global Safety Textiles

GST Automotive Safety

Indet Safety Systems

(Nippon Kayaku)

Takata

Tokai Rika

Toyoda Gosei

TRW Automotive

Automotive Electronics Akuma

ContinentalDraka

Furukawa

Johnson Controls

KES - kabelové a el.

Systémy

Kostal

Leoni

Mitsubishi Electric

Satrema Int.

Takata

Tesla Blatná

Tesla Jihlava

Tokai Rika

TRW Automotive TVM

TYCO Electronics

Yazaki

BrakesBrembo

Continental

Cooper-Standard

Automotive

Federal Mogul

FTE Automotive

Knorr-Bremse

TI Group

TRW Automotive

ChassisBenteler

Brano Group

Hyundai Mobis

Koyo Bearings

KYB Manufacturing Czech

Monroe Tenneco

Mubea

Schaef er Group

Door Systems

& Car Locks Assa-Abbloy

Brano Group

Brose

Construct Czech

Defend

Edscha

Inteva Products

Kiekert

Pyeong-Hwa

Tokai Rika

Witte

Engine Systems Aisin Seiki

Alfmeier

Almet

Bontaz-Centre

Brabant Alucast Czech

Brisk

Z StrakoniceHoneywell Turbo

Technologies

Jihostroj

Kolbenschmidt Pierburg

Magneton

Metalis Nejdek

Nemak

PBS Turbo

Robert Bosch

Strojirny Poldi

TRW Automotive

Exhaust Systems

and FiltersBosal

Donaldson

Eberspächer International

Faurecia Exhaust Systems

Karsit

Mann+Hummel

Monroe Tenneco

Tyll

Witzenmann

Exterior AGC

Aoyama

CIE Automotive

Duve

Essa - Grupo

Estampaciones Sabadell

Futaba

Key Plastics

Klein&Blažek

Kovovyroba Hoffmann

Magna International

Massag

Plakor Czech (ARRK)

s. n. o. p.

Saint-Gobain Sekurit

Sungwoo Hitech

Tawesco

Tiberina Automotive Blá

Tokoz

Zeveta

Fuel SystemContinental

Cooper-Standard

Automotive

Motorpal

Robert Bosch

TI Automotive

Toyoda Gosei

HVACBehr

Denso

Eberspächer International

FujikokiIngersoll Rand

Keihin

Senior Automotive

TI Automotive

Valeo

Varroc Automotive Systems

Infotainment solutionsContinental

Kyocera Display

Panasonic Automotive

Systems

TVM Acoustics

Magna International

MEGATECH Industries

Recticel

Rieter CZ

Tomatex

Lighting Systems Automotive Lighting

Hella Autotechnik

Koito

Halla Visteon Autopal

Rubber and Plastics

Avon AutomotiveGumarny Zubri

Hutchinson

Kautex -Textron

Plakor Czech (ARRK)

Saar Gummi

ZPV

Controls)

Johnson Controls

Karsit

Lear

Magna International

Viza Automocion

Steering and Drive

Control SystemsDura

JTEKT Corporation

TRW Automotive

InteriorEuWe Eugen Wexler Int.

Faurecia Interior Systems

Bohemia

Gruppo Antolin

Gumarny Zubri

Gumotex

Hyundai Mobis

Inteva Products

Key Plastics

SeatingsBrose

Car Trim

Commercial Vehicle Group

Dymos

Faurecia

Fehrer Bohemia

Fezko Thierry (Johnson

Wheels & TyresBarum Continental

Hayes Lemmerz Alukola

Mitas

Ronal CZ

Did You Know…

that 56 of the top 100 global top tier automotive

Airba &Safet

Automotive Electronics

Brakes

Chassis

Exterior

Door S stems

Exhaust S tems

Engine Systems

nd Filters

HVAC

n ota nment so utons

Car Locks

Fuel S stem

nter or

Lighting Systems

Rubber and Plastics

eatings

Steerin and Drive

Control Systems

Wheels & T res


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Moravian-Silesian Automotive Cluster

The Moravian-Silesian Automotive Cluster supports innovationand enhancement of the competitive advantage and export abi-

lity of its 62 members in the Moravian-Silesian region. It helps to

develop the automotive industry in the region through strong industrial enterprises, universities,

research institutions and other organizations, in both the private and public sectors.The cluster also contributes to the enhancement of permanent competitiveness of regional

suppliers for the automotive industry in the Czech Republic as well as abroad and creates

conditions for increasing the technical capacity and utilisation of the local workforce.

www.autoklastr.cz

suppliers are based in the Czech Republic?

Automotive Supplier Database

CzechInvest’s database of automotive suppliers offers comprehensive information about automotive component

manufacturers in the Czech Republic. The database contains nearly 900 companies and its scope covers the Czech

Republic’s entire automotive supplier base, making it an exceptional tool for mapping the possibilities of this sector

in a given region. Other unique aspects are the division of suppliers into Tiers 1, 2 and 3 and useful display of

customers for each component produced by a given supplier. The database thus provides information on which

vehicle manufacturers the given components are intended for. These manufacturers include all global brands such as

VW, Daimler, Toyota, BMW, Ford, Volvo, Porsche, Audi, etc.

The database is available free of charge at

http://suppliers.czechinvest.org

Automotive Industry Association

of the Czech Republic

The AIA is an industrial interest asso-

ciation of manufacturing, commercialand other companies that make up the

automotive and related industries in

the Czech Republic.

Today the AIA covers most of the auto-

motive sector with 145 members. Theassociation’s main goals are focused

on the long-term deve-lopment of the

Czech automotive inustry, contribu-tion to the competitiveness of Czech

automotive companies and support

of networking and mutual cooperati-

on between its members and foreigncountries.

In addition to providing various statistical

information and consultancy services,the AIA represents the common interests

of the sector in dealing with national

and international authorities.

www.autosap.cz

7


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Top Automotive R&D Location

In the long term, the Czech Republic is one of the world’s most attractive automotive R&Dlocations. This is due to the perfect blend of an outstanding engineering tradition, excellenttechnical education and consistent attention to ongoing training of new, high-quality automotiveprofessionals.

Selected Technology and R&D Centres

KARLOVY VARY

USTI NAD LABEM

LIBEREC

PRAGUE

PLZEN

CESKE BUDEJOVICE

JIHLAVA

PARDUBICE

HRADEC KRALOVE

OLOMOUCOSTRAVA

ZLIN

BRNO

Source: CzechInvest 2015

CENTRALBOHEMIA REGION

AUFEER DESIGNBehr CzechFaureciaIdiada CZIngersoll RandKostal CRMBtech BohemiaSwellŠkoda Auto

PRAGUEMBtech BohemiaPorsche Engineering ServicesRicardo Prague

Valeo Systemes Thermiques

TÜV-SÜD Czech

LIBEREC REGIONDensoIdiada CZTRW AutomotiveMSV Systems CZ

PLZEŇ REGIONMBtech Bohemia

NARETECZF Engineering SOUTH BOHEMIA REGION

Robert BoschČZ a.s.MOSLEDTRW-DASBrisk

HRADEC KRÁLOVÉ REGIONContinental TevesSwell

VYSOČINA REGIONBosch DieselMann+HummelMotorpal

SOUTH MORAVIA REGIONBlataHoneywell Turbo TechnologiesMann+Hummel

ZLÍN REGIONNippon Kayaku

OLOMOUC REGIONHELLA KG Hueck&Co.Horiba

MORAVIAN-SILESIAN REGIONBehr CzechContinental Automotive SystemsHayes Lemmerz International

Varroc Lighting Systems

My experience with Czech engineersin automotive fields during my 25years with GM and Chrysler R&Din the US and Canada has been morethan excellent. They have a high levelof technical education, comprehensiveknowledge and understanding ofcomplicated technical issues andexcellent skills. Czech universities offera pool of engineering and managementtalents for the global market.

George Strnad, Design Engineer, GeneralMotors Corporation

“

”

TRW AutomotiveŠkoda AutoPorsche EngineeringHoneywellSiemensBosch

BranoTatra

Škoda AutoMAN AudiDaimlerBoschContinental

MagnaSaint-GobainTRW Automotive

Volkswagen AGValeoŠkoda AutoBoschMBtech Bohemia ABB

ZF Friedrichshafen

Škoda AutoTRW AutomotiveTatraVolkswagenHoneywellMagna Powertrain

Motropal

Škoda AutoBroseContinentalHayes LemmerzHoneywellVarroc Lighting

Czech TechnicalUniversity in Prague

Technical Universityof Liberec

University of WestBohemia, Pilsen

Brno Universityof Technology

VŠB – TechnicalUniversity of Ostrava

Czech Technical Univeristies and Their Automotive Partners

www.cvut.cz

www.tul.cz

www.zcu.cz www.vutbr.czwww.vsb.cz


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Selected Czech-Based Technology Centres

MBtech Bohemia

MBtech Bohemia is based in three locations in Plzeň, Prague and Mladá Boleslav as a subsidiaryof MBtech Group, a global provider of automotive engineering and consulting services.The Czech R&D centres specialize in CAD design of components and modules for new vehicles,engines and electronics. The scope of services ranges from concepts including Class A Design,engineering services, production of prototype parts and model building, as well as completevehicle testing. MBtech Bohemia in the Czech Republic is the biggest foreign subsidiaryof MBtech Group worldwide.

Ricardo Prague

Ricardo Consulting Engineers UK operated in the Czech Republic from 2000 until RicardoPrague Ltd. was established in 2005. Prague Technical Centre cooperates daily with othermembers in the UK, USA, Germany, Italy, Japan, China and India Ricardo locations, and othersto provide CAE design and analysis support to satisfy customers around the world. PragueTechnical Centre offers research and development and design support mainly in the fieldof internal combustion engines, transmissions, vehicle technology and Control&Electronics.The current number of 160 engineers is a consequence of the interrupted growth duringthe crisis period. Ricardo Prague undertook a major expansion of its technology centrein the Czech Republic in 2004 and has been growing recently again.

Swell Technology Centre

At its Development Services Centre in Hoř ice, Czech Republic, the engineering companySWELL operates a progressive technology centre for comprehensive development supportin the automotive industry. The scope of services covers CAD/CAE engineering and prototyping,mainly in the sheet-metal area (BIW structures), and a wide range of development testing (vibrationtests at high temperatures for engines and exhaust-system components, frequency and modalanalyses, combined mechanical/environmental testing for plastic and metal structures, etc.).The company’s customers include Škoda Auto, Honeywell Turbo Technologies, Continental Automotive Systems, Faurecia Exhaust Systems, Magna International, and many others.

Valeo Climate Control

Valeo Climate Control has a technology centre in Prague to provide engineering supportfor its heating, ventilation and air-conditioning (HVAC) and control panel programmes. As it is engaged in all new development projects, the Czech R&D centre cooperateswith nearly all Valeo climate control divisions elsewhere in the world. As a state-of-the-artyet cost-effective development location, Valeo’s Czech R&D centre is considered a centreof excellence for air-conditioning system design.

Varroc Lighting Systems

Varroc Lighting Systems, a wholly-owned entity of the Varroc Group, is a leading Tier 1 globalautomotive supplier specializing in Research & Development and manufacturing of exterior lightingproducts such as headlamps, signal lamps, auxiliary lamps, projector systems, and electronic

control modules. Varroc Lighting Systems is registered in the Netherlands, headquartered inPlymouth, Michigan, USA, and operates in Asia, Europe and North America, with nearly 5000employees. The Varroc Group completed the acquisition of the global lighting division of VisteonCorporation on the 1st of August 2012 and now presents its brand as Varroc Lighting Systems.In the Czech Republic, Varroc Lighting Systems operates two plants, a tool factory and a globaldevelopment centre. With more than 2,300 employees Varroc Lighting Systems is one of themajor employers in the Moravian-Silesian Region and the Czech Republic.

yet cost-effective development location, Valeo’s Czech R&D centre is considered a centreof excellence for air-conditioning system design.

Varroc Lighting Sy tems

Varroc Lighting Sy ms, a w olly- ntity r c Gr lea ing Tier globalautomotive supplier s ializing in R s a & Development and n uring of exter lightingpro ucts su as ea p , gna amps, aux ary amps, pro ector system an e ectronc

control modul . Varr hti g Systems is registered in the Netherlan , q rtere nPlymouth, Michigan, , operates in Asia, Europe and North Ame early 5000emplo T. he Varroc Group completed the acquisition of the global lighting division of VisteonCorporation 1st of August 2012 and now presents its brand as Varroc Lighting .In t e Czech lic, Varroc Lighting Systems operates two plants, a tool factory an ldevelo ent centre. With more than 2,300 employees Varroc Lighting Systems is one of themajor employers in the Moravian-Silesian Region and the Czech Republic.


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Czech Technical University in Prague

Students: 20,066Graduates: 4, 704PhD graduates: 1,953

Charles University Prague

Students: 2,568Graduates: 563PhD graduates: 692

Institute

of Chemical Technology Prague


Source: Ministry of Education, Youth and Sport, 2014

Technical University

of Liberec


University of PardubiceStudents: 5,385Graduates: 934PhD graduates: 406

Technical University of Ostrava

Students: 14,264Graduates: 3,340PhD graduates: 1,198

University of West Bohemia

Plzen


Brno University of Technology Students: 18,235Graduates: 4,444PhD graduates: 1,671

Tomas Bata University Zlin


Education and Workforce

The Czech Republic offers high-level technical education at several technical universitiesevenly distributed across the country. The country has more than 90,000 university studentsmajoring in technical or science-related programmes. More than 20,000 graduates enter theworkforce every year and the number of technical graduates increase every year.

Apart from universit ies, the Czech educational system features other sources of skilledlabour, including specialised four-year higher professional schools whose students graduatewith the near equivalent of a university bachelor’s degree.

Technical Universities 2013/2014 Czech RepublicTechnical Students Total

Students: 94,579

Graduates: 20,573

PhD graduates: 8,238LIBEREC

PRAGUE

PLZEN

PARDUBICE

OSTRAVA

ZLIN

BRNO

Number of Students and GraduatesCzech Universities

Automotive Related Programmes Academic year 2013/2014

Region Students Graduates

Prague 5,420 1,106

Central Bohemia 30 0

South Bohemia 0 2

Plzen 1,184 190

Karlovy Vary 0 0

Usti 642 79

Liberec 1,457 279

Hradec Kralove 0 0

Pardubice 981 150

Vysocina 4 4

South Moravia 1,693 301

Olomouc 41 36

Zlin 578 125

Moravia-Silesia 939 298

Total 12,958 2,570


Number of Students and GraduatesHigher Professional Schools, Secondary SpecializedSchools and Vocational Training Centres

Automotive Related Programmes Academic year 2013/14

Region Students Graduates

Prague 1,986 397

Central Bohemia 2,576 692

South Bohemia 2,144 563

Plzen 1,363 402

Karlovy Vary 626 131

Usti 1,656 346

Liberec 1,117 229

Hradec Kralove 1,483 386

Pardubice 1,585 394

Vysocina 1,626 395

South Moravia 3,157 736

Olomouc 1,905 422

Zlin 1,368 389

Moravia-Silesia 3,390 776

Total 25,982 6,258


Technical Students and Graduates from Czech Universities 2013/2014

Note: According to the selected study programmes – source CzechInvest. Complete ICT included.Source: Ministry of Education, Youth and Sport, 2014


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Labour costs in the Czech private sector stand at 45% of the EU-27 average. Nevertheless,the main benefit of the Czech Republic consists in the excellent cost-quality ratio of thecountry’s highly educated and skilled workforce. This is especially relevant within the comparisonto other CEE countries.

According to Eurostat’s data from 2013, the Czech Republic’s labour costs remain verycompetitive in the EU. The Czech Republic can offer average labour-cost savings of 40%to 60% in comparison with costs in Western Europe or the United States For instance,in 2013 the Czech hourly wage in the manufacturing sector was EUR 10 as compared to EUR36.20 in Germany, EUR 36.70 in France and EUR 22 in the United Kingdom.

Labour Market

Gross Monthly Wages (median) in the Automotive Sector, 2013

Position CZK/month EUR/month Total labour costs*

Mechanical engineers 40,602 1,480 1,983

Mechanical engineering technicians 29,114 1,061 1,422

Welders and flame cutters 23,840 869 1,164

Sheet-metal workers 23,046 840 1,125

Electrical mechanics and fitters 24,265 884 1,185

Motor vehicle mechanics and repairers 20,433 745 998

Assemblers 18,956 691 926

Mechanical-machinery assemblers 21,386 779 1,044

Manufacturing labourers 15,623 569 763

*Total labour costs include employer´s insurance contributions (34%). Average Exchange Rate 1 EUR=27.441 CZK (average for Q1 2014, Czech National Bank 2014)Source: Ministry of Labour and Social Affairs, 2014

Business Legislation

Foreign legal entities are allowed to conduct business activities, including acquisitionof real estate, under the same conditions and to the same extent as Czech businesses.They may become founders or co-founders of a company, or may join an existing Czechcompany.

Foreign companies may operate in the Czech Republic, either by establishing a branchoffice registered in the Czech Republic or by establishing a Czech company. There are fourdifferent legal forms of companies; the most common are limited liability companies (s.r.o.)and joint-stock companies (a.s.). The trade name of a company must be unique.

Such business entities may employ either Czech citizens or foreign citizens, who are subjectto registration, visa and other requirements. Residency and green-card systems are availablefor key foreign employees. In addition to the choice of investment in corporate, non-corporateand EEC specific entities, investors enjoy the advantage of an advanced (judicial and non-judicial)legal and dispute resolution system, anti-trust protection and the umbrella of EU protectiveregulation.

There are three reasons to uti lisethe Czech workforce. The first reasonis low labour costs, which aresignificantly lower in comparisonwith Western Europe. The secondreason is Czech workforce’s high levelof qualifications, which is confirmedby the number of Czech employeeswho work for Bosch worldwide inmanagerial positions and on specifictasks. The third reason is the high

degree of flexibility of employees,who are able to accept newchallenges and new projectsand are highly mobile.

Milan Šlachta,Commercial Manager, Robert Bosch

“

”

The average wage

in the Czech Republicis 30% of thatin Germany. uch business entities may employ either Czech citizens or foreign citizens, who are subjectto regstraton, v sa an ot er requ rements. es ency an green-car systems are ava a e

for key foreign employees. In addition to the choice of investment in corporate, non-corporateand EEC specific entities, investors enjoy the dvanta of an a anced (judicial and non-judicial)legal and dispute resolution syste anti-tr st prot tion an the u rella of EU protectiveregulation.


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Financial Support

The Czech Republic offers both new and existing investors support covering up to 25%

of costs associated with investment projects. Aid is provided mainly from the national

investment incentives scheme; specific activities – such as establishment of R&D centres,

establishment of training centres, energy savings, renovation of buildings, etc. – cen be also

supported from EU structural funds.

Investment Incentives

Investment incentives are offered for implementation of new projects or expansion of existing

projects in the areas of:

-- Manufacturing

-- Technology/R&D centres

-- Centres of business support services – shared service centres, software-development

centres, high-tech repair centres, data centres, call centres

Aid is provided in all regions, with the exception of Prague, pursuant to the Act on Investment

Incentives and consists of the following incentives:

Source: Investment Incentives Act – Amendment of 2015

Forms of Incentives

Corporate tax incentive Full corporate tax relief for up to ten years for new companies

Partial tax relief for up to ten years for existing companies

Real estate tax incentive Exemption from real estate tax in selected regions for up to five years

Job-creation grants Financial support for creation of new jobs in selected regions(up to EUR 11,000 per new job)

Training and retraining grants Financial support for training and retraining of new employeesin selected regions (up to 50% of eligible training costs)

Cash grants for capital investment Available for large strategic investment projects (see the details below)

Eligibility Criteria

Manufacturing Technology centres Centres of business support services

Minimum investment of EUR 2-4million depending on the region’s

rate of unemployment; at least 50%of the eligible costs must expendedon new machinery

Minimum investmentof EUR 0.4 million;

at least 50% of the eligiblecosts must be expendedon new machinery

No conditions regarding minimuminvestment

Creation of at least20 new jobs

Creation of at least20 new jobs

Creation of at least 20 new jobs at datacentres and software-development centres;at least 70 new jobs at shared servicecentres and repair centres; at least 500 new

jobs in call centres

No works may be started on the project prior to the application for incentives is submitted to CzechInvest

Source: Investment Incentives Act – Amendment of 2015

Introduction of the institution of Strategic Investment

Besides other investment incentives, strategic investments can receive a grant for capitalinvestment in the amount of up to 10% of eligible costs, respectively up to 12,5% of eligible costs

if the investment into production occurs simultaneously with the establishment or expansion

of a technology centre. The total maximum state aid intensity shall henceforth be governed

by the Regional Map of the Czech Republic.

In addition to proximity to manufacturing

facilities, the government incentives

programme for new technology centres

was key to Honeywell’s decision.

We are very pleased with the support

CzechInvest is providing.

Dan Sheflin, Vice-President and Chief

Technology Officer of the Automation and

Control Solutions, Honeywell

“

”

Between 1998 and

2014, 924 projects were supported with

investment incentives.

The total investment

amount reachedEUR 24.3 billion.

Specific Conditions of Strategic Investment

Production Technologycentre

Minimum investment

in long-term tangibleand intangible assets

EUR 20

million*

EUR 8

million*

New jobs created 500+ 100+

Maximum grantfor capital investment

EUR 60million

EUR 20million

*of which at least half must be invested in machinery


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Headquartered in Prague, CzechInvest is the Investment and Business Development

Agency of the Ministry of Industry and Trade. Since its establishment in 1992, the agency

has been tasked with attracting foreign investments and developing domestic companies

through its services and development programmes.

Our Objectives

-- To advise and support existing and new companies to grow and prosper in the Czech

Republic

-- To facilitate communication between the public and private sectors

-- To actively influence the positive development of the business environment

-- To support the competitiveness of the Czech economy

CzechInvest is exclusively authorised to file applications for investment incentives

at the relevant governing bodies and prepares draft offers to grant investment incentives.

Its task is also to provide potential investors with current data and information on the

business climate, investment environment and investment opportunities in the Czech

Republic.

Our Services

-- Detailed, sector-specific market intelligence and value propositions

-- Customised business cases

-- Identification of business properties and sites suitable for investment-- Tailored visits to the Czech Republic

-- Access to investment incentives and EU funds

-- Information and advice on doing business in the Czech Republic, regulations

and taxation

-- Identification of potential business partners, suppliers and acquisition targets

-- Referrals to professional associations (lawyers, bankers, accountants, etc.)

-- Aftercare service

Our services are fully funded by the Ministry of Industry and Trade as a part of the business

support measures so they are free of charge to businesses.

CzechInvest’s Services


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www.czechinvest.org

CZECHINVEST HEADQUARTERS

CZECH REPUBLIC

Stepanska 15

120 00 Prague 2

PHONE: +420 296 342 513

E-MAIL: [email protected]

WEB: www.czechinvest.org

CZECHINVEST WORLDWIDE

GERMANY

PHONE: +49 211 250 56 190


UK

PHONE: +44 20 7221 9663

MOBILE: +44 77 8523 1520


SCANDINAVIA

PHONE: +420 296 342 540

+358 415 787 432E-MAIL: [email protected]

CHINA – SHANGHAI

MOBILE: +86 13817792614


JAPAN

PHONE: +81 3-5485-8266


KOREA – SEOUL

PHONE: +82 10 2987 5632

E-MAIL:

[email protected]

USA – WEST

MOBILE: +1 (415) 794 0665


USA – EAST

MOBILE: +1 347 216 93 55


OEMs and Selected Tier-1 Supliers in the Czech Republic

Documents

Automotive Brochure 2015 97