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Good morning!

Good morning!. Modern business operations in the Czech Republic. …..since 1989. Good morning!. Reminder: An appreciation of dates. Pre 1914 Austro-Hungarian empire; Czechoslovakia created 1918 1918-1939 1939-1945 German occupation 1945-1989 Communist regime (Influenced by Russia)

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Good morning!

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  1. Good morning!

  2. Modern business operations in the Czech Republic …..since 1989 Good morning!

  3. Reminder: An appreciation of dates • Pre 1914 • Austro-Hungarian empire; Czechoslovakia created 1918 • 1918-1939 • 1939-1945 • German occupation • 1945-1989 • Communist regime (Influenced by Russia) • “Prague spring” 1968 • “Velvet revolution” November 1989 • Post 1989

  4. Traditional industries (1) • “Heavy industry” • Engineering • Skoda • Tesla • Mining • “Black” coal • “Soft” coal • Clay • Graphite • Silver  Uranium

  5. Traditional industries (1) “Heavy industry” Engineering Skoda Tesla Mining “Black” coal “Soft” coal Clay Graphite Silver  Uranium Why did the uranium mines close? The Czechoslovakia (Czech Republic) had/has no means of processing raw uranium into usable uranium, and their former guaranteed market place (USSR) no longer existed.

  6. Traditional industries (2) • Specialised • Chemical • Medical • Shoes • Glassware • Contact lenses • Films • Musical instruments etc, etc, etc………

  7. Traditional industries (3) • Other • Brewing …….also, wines and spirits • Agribusiness • Livestock  milk/cheese/meat • Timber • Fruit/vegetables etc, etc, etc………

  8. During the years up to 1939 • Czech business was oriented towards the west • Czechoslovakia was the 10th most developed industrialised country in the world

  9. After 2nd World War: • Communist era • Czechoslovakia became the “workshop of the Soviet bloc” • 70% of exports went to Soviet bloc • Series of yearly and 5-yearly plans

  10. In more detail….in 1974: • Skoda • Tesla • Bata

  11. In more detail….in 1974: Skoda Tesla Bata

  12. Europe in the 1970’s

  13. Europe in the 1970’s Europe 1978: Czechoslovakia was considered the workshop of the Soviet bloc 30% 70%

  14. Europe in 1990 30% 70%

  15. Europe in 1990 30% 70%

  16. Europe in 1993 Lost exports eastwards 30% 70%

  17. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

  18. Nowadays • European Union is the biggest trade partner • In 2008, more than 84% exports went to the EU-15 countries • Sharp increase of foreign investment, especially from Germany

  19. Current Czech manufacturing industries include: • Automotive • Aerospace • Electrical engineering and electronics • High-tech engineering • Life sciences • Medical devices

  20. Automotive industry in the Czech Republic

  21. Automotive industry in the Czech Republic Passenger car production (per 100 residents) Source: Automobile Industry 4/2006

  22. Some recent foreign investments in the Czech automotive industry • Volkswagen – sole owner of Skoda • Toyota-Peugeot-Citroen • Iveco

  23. Some Czech automotive component suppliers

  24. Current Czech manufacturing industries include: • Automotive • Aerospace • Electrical engineering and electronics • High-tech engineering • Life sciences • Medical devices

  25. Aerospace industry in the Czech republic • 10,000 people working across the country

  26. Current Czech manufacturing industries include: • Automotive • Aerospace • Electrical engineering and electronics • High-tech engineering • Life sciences • Medical devices

  27. Electrical engineering and electronics

  28. Examples of who does what:(1) consumer electronics • Panasonic • flat-panels • TVHitachi • flat-panels • TVIPS Alpha • LCD modules • Bang & Olufsen • various consumer electronics • Candy • refrigerators

  29. Examples of who does what:(2) automotive • Kostal • electronic modules • Visteon/Autopal • lighting • Tyco Electronics • various components • Siemens VDO • Automotivecontrol modules, sensors, panels

  30. Examples of who does what:(3) IT • Foxconn • PC routers • Asus • PC • High-tech repair centre • FIC • PC • Inventec • PC

  31. Current Czech manufacturing industries include: • Automotive • Aerospace • Electrical engineering and electronics • High-tech engineering • Life sciences • Medical devices

  32. High-tech engineering • Between 80% and 90% of production is exported • R&D driven • Includes: • Instrumentation • Machine tools • Railway industry

  33. Instrumentation • Around 4,000 specialised workers in this sector, eg: • Central Bohemia region 13.9% • Siemens and Linet • Olomouc region 12.5% • Meopta – optics and Invensis appliance controls • Prague 12.4% • Honeywell

  34. Machine tools • Approx 50 companies • About 90% of production are specialist cutting machines. Approx 80% are exported to: • (mostly) Germany • Other EU countries • US & Canada • and: China, Russia, India and South America

  35. Railway industry (Includes tramways) • Three large factories: Prague, Plzen and Koprivnice • 30% turnover is exported worldwide

  36. Current Czech manufacturing industries include: • Automotive • Aerospace • Electrical engineering and electronics • High-tech engineering • Life sciences • Medical devices

  37. Life science and Medical devices • Life science • Especially Biotech and pharmaceutical industries • Medical devices, eg: • Hospital beds • Ventilators • X-ray equipment • Dental technology • Mobile hospitals • Technical gases

  38. Links • Czech Statistics Office: http://www.czso.cz/eng/redakce.nsf/i/home • Czech Republic (Official website):http://www.czech.cz

  39. Thank you!

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