Strategic geografical location, long-established industrial tradition, reasonable costs, well-developed infrastructure and skilled labour force make the Czech Republic perfect source base for your business.
The Czech Republic is a highly open economy exporting three fourth of its output and attractive destination for foreign investments. Czech companies have a reputation of reliable partners and suppliers of high guality products, technologies and services.
- Area: 78 864 km2
- Neighbouring countries: Germany, Poland, Slovakia, Austria
- Population: 10.5 million
- Capital: Prague (1.2 million inhabitants)
- Other large cities: Brno (378,000 inhabitants), Pilsen (169,000 inhabitants), Ostrava (292,000 inhabitants)
- Official language: Czech
- Currency: Czech crown, CZK
- VAT: standard rate 21 %, first reduced rate 15 %, second reduced rate 10 %
- Time zone: GMT+1, Summer GT+2th
- Political arrangements: a parliamentary republic with a multiple party system
- Administrative divisions: The Czech Republic is divided into 14 regions
Broad selection of producers
from various branches of industry
- Innovative companies with unique products
- High quality production at competitive prices
- Experienced exporters with good references
- Skilled labor force
- Flexibility and financial stability
- Strategic geographical location
- Long-term industrial tradition
Branches of industry
- CAR INDUSTRY
The Czech car industry is among the most developed branches in the region of Central and Eastern Europe. A particularly long-established tradition, broad supplier base and technical know-how have contributed to this success. More than 1.4 million road cars were manufactured in 2017 in the Czech Republic. Three producers – ŠKODA AUTO (60.7 %), HMMC (25.7 %) and TPCA Czech (14.1%) – contribute a significant share to the overall production of cars.
The car industry also represents a significant portion of the overall production of the Czech Republic, accounting for almost a quarter of it as well as the same share of exports, too. 2017 was also exceptional due to the production of buses, of which more than 4,600 were manufactured. The largest bus producers are IVECO Czech Republic and SOR Libchavy. Other sectors are connected with the car industry, including the production of car bodies, frames and engines as well as the electric industry and textile industry (supply of baby car-seat covers and inside padding).
- AVIATION INDUSTRY
The aviation industry of the Czech Republic focuses on two main activities. First of all, there is the production of complete aircrafts. It includes smaller aircrafts for local and regional transport, training and light combat aircrafts, sport and agriculture aircrafts, ultralight aircrafts and gliders. AERO Vodochody AEROSPACE, ZLIN AIRCRAFT and Aircraft Industries are among the main producers in this category.
The Czech Republic is a world-class producer of ultralight aircrafts. A quarter of ultralight aircrafts sold in the world have been produced in the Czech Republic. Manufacturers include companies such as TL-UKTRALIGHT, ATEC and JMB Aircraft.
The second segment of the aviation industry is the production of components for large transport and military aircrafts and helicopters. Czech companies supply their compounds to global aircraft producers, such as Airbus, Boeing, Embraer, Bombardier and the helicopter producer Sikorsky. Other subcontracts are transferred to producers of military aircrafts, CASA and Eurofighter. Czech companies also rank among the world leaders in aircraft safety systems – i. e. STRATOS 07 and GALAXY HOLDING.
- ENGINEERING INDUSTRY
Engineering forms the backbone of the Czech economy and its manufacturing base is made up of about 70,000 companies (including metal production, foundry, electronics, machinery, production of motor vehicles and other means of transport). These companies are especially involved in the field of energy engineering, transport engineering, production of machining and shaping tools, metallurgy and production of structures and metal components.
Czech engineering companies supply complete industrial equipment – i.e. turbines, machining and shaping tools, air-conditioning equipment, building machines, agriculture machines and food processing machines. ŠKODA TRANSPORTATION (transport engineering), VÍTKOVICE MACHINERY GROUP, BONATRANS GROUP, ČKD BLANSKO HOLDING, TOS Varnsdorf, TAJMAC-ZPS, TŘINECKÉ ŽELEZÁRNY, První brněnská strojírna, Wikov Industry and others are among the most significant Czech producers.
The Czech Republic exports almost 90% of its engineering production, especially to EU countries, whereas its presence has also been consolidated in the Asian and Latin American markets. Production shows growth also due to new technologies, such as nanotechnologies, sophisticated electronics, automated systems and mechatronics.
- ENVIRONMENTAL TECHNOLOGIES
The environmental technological industry has been on the rise in the Czech Republic from a longterm perspective,and these modern approaches mean plenty of opportunities for Czech industry. A number of companies are involved in these sectors in the Czech Republic, and on the global level, where they offer interesting solutions.
In the sector of green technologies, for instance, TEDOM is involved in manufacturing biogas stations; Aquaindustry Technologies is involved in treating waste water through the use of 3D nanotechnologies, hydroelectric plants CINK Hydro – Energy and water management alliance CWA. Furthermore, companies such as SIAG CZ (machining for wind power plants, production of towers for wind turbines), Smart Heating Technology (fully automated biomass boiler), Step TRUTNOV (boilers for straw burning), IWET (mobile water treatment system), Association of Industrial Plants Suppliers (SDIC) and others are involved in this field.
- MEDICAL EQUIPMENT
Nowadays, the export of medical equipment from the Czech Republic has been marked by significant growth. Czech companies receive comprehensive professional orders. This sector has a high share of innovations, and many companies from this sector finance their own research and development, cooperating with scientific institutions and universities.
The most significant companies in this sector include LINET, MBT technology, TSE, Meomed, Ella – CS, etc. Furthermore, when talking about new technologies, we can name Nanovia and Nanopharma, producers of nanofibers for medical purposes. The Czech Republic is also a significant producer of electron microscopes.
- ELECTRONICS AND ELECTRICAL ENGINEERING
The electrical industry is one of the crucial sectors in the manufacturing industry due to the high added value of products that fall into the category of high and medium technology. In particular electrical engineering (electric engines, generators, transformers, electric switchgear systems and switch aggregates, cables and insulated wires) are produced by the electrical industry.
Computer and office technology, consumer electronics, hardware and automated electronics and medical and optical equipment rank among other sectors of electrical industry production. ABB (electric installation), Siemens (electric engines), Meomed (medical equipment), Meopta-optika (optical, optomechanical and optoelectric systems) are among the most significant producers in this sector.
- CHEMICAL AND PHARMACEUTICAL INDUSTRY
The chemical industry of the Czech Republic is among its main industrial branches. In 2016 of its revenue amounted to 19.2 billion EUR, and approximately 120,000 people are employed in this area. Production of basic chemical substances (64%) and production of pharmaceuticals (17%) contribute the biggest share in terms of revenue.
Chemical industry products are supplied to other affiliated sectors, such as the automotive, construction, electronic, food-processing, textile industries and others. SPOLCHEMIE, Lovochemie (producer of fertilizers), SPOLANA and Synthesia (production of plastic materials and inorganic substances), PRECHEZA, Barum Continental GUMOTEX belong to the most significant producers in this sector. For instance, FATRA is engaged in production of plastic materials, and SILON produces polyester fibres.
- GLASS AND CERAMIC INDUSTRY
The Czech ceramic industry has achieved an excellent reputation in the whole world thanks to its unique and top-quality hand-crafted production. The glass and ceramic industry is represented by roughly 150 companies and more than 23,000 employees (2016) working in this sector.
Revenue in this sector reached over 48 billion CZK in 2016, in which flat glass represents 39 %. Glassworks in the Czech Republic produce 2,000 tonnes of flat glass and four million bottles, small bottles and flacons daily. AGC Flat Glass Czech (flat glass); O-I Manufacturing Czech Republic; VETROPACK MORAVIA GLASS (container glassware); Saint Gobain ADFORS CZ (textile fibres), KAVALIERGLASS (technical, laboratory and drinking glassware) are among the most significant producers in this sector.
PRECIOSA and LASVIT are dedicated, for example, to the production of chandeliers, Crystal BOHEMIA and MOSER focus on drinking glasses. Companies JBX Retail (Jablonex jewellery) and PRECIOSA BEAUTY are famous in the jewellery sector. The most significant ceramic producers are the companies Thun 1794, Český porcelain, G.Benedikt Karlovy Vary and Manufaktura Rudolf Kämpf.
- FURNITURE INDUSTRY
The Czech furniture industry benefits from the sustainability of basic material – blanks, chipboards, veneers, squared timbre etc. The crown in this sector is curved-wood furniture and also design features such as forging, clips and lockers. The sector has recorded an unprecedented growth in recent years, mainly due to exports. Metal furniture, medical furniture and upholstered furniture are exported most of all.
These are in particular products with high added value. Furnitureproducers often cooperate with designers and the design studios. TON (curved-wood furniture), which supplies furniture to cafés, restaurants and hotels worldwide, is one of the most notable companies in the sector. Designed upholstered furniture is produced for example by Polstrin design, MMinterier. Outdoor furniture is produced by the company TODUS, which cooperates with top-notch designers in the development of new products and supplies its products to imminent hotels.
- FURNITURE INDUSTRY
The Czech furniture industry benefits from the sustainability of basic material – blanks, chipboards, veneers, squared timbre etc. The crown in this sector is curved-wood furniture and also design features such as forging, clipsandlockers. The sector has recorded an unprecedented growth in recent years, mainly due toexports. Metal furniture, medical furniture and upholstered furniture areexported most of all. Thesearein particular products with high added value.
Furniture 15 producers often cooperate with designers and the design studios. TON (curved-wood furniture), which supplies furniture to cafés, restaurants and hotels worldwide, is one of the most notable companies in the sector. Designed upholstered furniture is produced for example by Polstrin design, MMinterier. Outdoor furniture is produced by the company TODUS, which cooperates with top-notch designers in the development of new products and supplies its products to imminent hotels.
- BUILDING INDUSTRY
The building industry is one of the most important pillars of the Czech economy. It represents 7% of the production of the total Czech economy, and about 8% of all employed people work in this area. A wide range of diverse materials, products and technologies are used in the building industry. These include, for example, fasteners, insulating materials, ceramic tiles, roofing, structural frames, building chemicals, floors, windows, doors, shading techniques, building machines and many others.
Czech companies involved in this sector manufacture globally competitive products. KM-Beta (roofing production), CONTIMADE (site barracks), KOMA Modular (residential, sanitary and low-energy modules), Mateiciuc (profiles, slats, tubes, plastic tubes), ISOTRA (shading equipment), LASSELSBERGER (ceramic tiles), LB Cemix (production of dry mortar and plaster mixes and stucco) and others are among the most significant producers in this sector.
- ICT SECTOR
Nowadays, information technologies have a decisive effect on the economy and society as a whole. The Czech Republic has become a very desirable and sought after spot for foreign investors in this sector, especially for their development centres and IT services outsourcing. Global companies like Microsoft, DHL, SAP, ORACLE, IBM, Skype or Hewlett-Packard are among the most significant investors.
Czech software companies AVG Technologies (antivirus programs), AVAST Software (antivirus programs), Bohemia Interactive (PC games) and Y-SOFT (unique press solutions), ZONER Software (SSL certificates), Safetica (software that prevents sensitive company data from leaking) are world famous. The Czech Internet browser Seznam.cz is also very famous; it is the only browser from countries using the Roman alphabet that can compete with Google.
- FOOD INDUSTRY
Basic subsectors of the food industry in the Czech Republic include processing and preservation of meat and meat products (AGROFERT, Kostelecké uzeniny, Rabbit, Krahulík – Masozávod Krahulčí, Váhala etc.), processing of fruits and vegetables (Hamé, Efko, Alibona, etc.), production of dairy products (MADETA, OLMA, Mlékárna Hlinsko, etc.) and the production of mill and starch products (PENAM, Krnovská Škrobárna, Amylon, GoodMills, etc.).
In the field of beverages the main sectors are brewing (Plzeňský Prazdroj, Pivovary Staropramen, Budějovický Budvar, Pivovar Svijany, Rodinný pivovar Bernard, etc.), production of mineral water and soft drinks (Poděbradka, Hanácká Kyselka, Karlovarské minerální vody, etc.) distilleries (Jan Becher – Karlovarská Becherovka, RUDOLF JELÍNEK, STOCK PLZEŇ - BOŽKOV, etc.) and viticulture (BOHEMIA SEKT, ZNOVÍN ZNOJMO, Vinné sklepy Valtice, VINSELEKT MICHLOVSKÝ, etc.).
- INDUSTRIAL DESIGN
The Czech Republic has many very talented designers who succeed both at home and abroad. Among these are Jiří Pelcl, Rony Plesl, Jan Kaplický or Bořek Šípek. There is also a growing number of companies that make an effort to strengthen their competitiveness through design and cooperate with a designer to discover a new inspirational view into both existing and the latest production. Meanwhile in the past, design used to be linked with the fashion industry and luxury goods.
Nowadays, it asserts itself increasingly in all branches of industry, including engineering. Many Czech companies, by far not only the large, have adopted cooperation with a designer into their business and marketing strategies. For instance, companies like SITUS furniture, JELÍNEK – furniture production, brands BOMMA and Brokis succeed in the sector of interior design. Due to design, producers of town furniture mmcité or sanitary beds by LINET are successful all over the world as well. The quality of Czech industrial design is confirmed by the Red Dot Award for designer Martin Tvarůžek who designed a machining tool for the production of the Škoda Machine Tool.
Czech Trade Promotion Agency
128 01 Prague 2
Phone: +420 224 907 820
Information and contacts for individual foreign offices can be found at www.czechtradeoffices.com