Sep - British Chamber of Commerce in the Czech Republic

InterviewDo you think there has been a significant shift in investors’ interest followingthe CR’s accession to the EU?There has been a significant increase in the number of inquiries this year and thatis no surprise, as the EU expansion has received a good share of publicity here in theUK. I am confident that the inflow of foreign investment to the Czech Republic willcontinue to be strong. There has been one significant shift, however. While in thepast most of the inquiries / projects came from larger companies, today there aremany inquiries / projects from small and medium-sized enterprises. They probablytake our membership in the EU as a guarantee that the Czech Republic is a safecountry to invest in.From your experience, what are the key factors in the potential investor’sdecision making?Market access, availability of labour, quality of local infrastructure and cost of doingbusiness. Support from local government bodies is also important – many investorshave told me that the quality of our services and the perceived support from localauthorities had played prominent role in their decision making.Examples of realised investmentprojects in the Czech RepublicLaminar MedicaThe leading European producer of insulatedshipping systems for the pharmaceutical andbiotech industries, Laminar Medica Limited,recently opened a new production facility in theCzech Republic. The new plant in Vodňany,South Bohemia, will bring to the region up to35 new jobs.Heads & All ThreadsOne of the leading British independent suppliersof industrial fasteners, wire harnesses &Is the British investor ‘different’ from others? Are there any specifics of the ‘Britishinvestor’?Some British companies have quite low expectations when they go to visit the CzechRepublic for the first time. They are not fully aware of the enormous changes whichhave taken place there since 1989.Also, many UK companies have experience with trading with, and investing incontinental Europe, Commonwealth countries or Southeast Asia, but less experiencewith Central and Eastern Europe. This is probably different with German and Austriancompanies which have more and longer contacts with the region.Into what sectors do British companies invest most? Is there a type of industryin which they show the greatest interest?In the past there were several large privatisation projects in utilities, but the typicalBritish investment in the Czech Republic is in high-tech manufacturing industriessuch as automotive components, electronics, plastic parts and precision engineering.Software development seems to be a growing sector now. Quite a lot of Britishinvestment has also gone to real estate and to retail services. The Czech TechnologyPark in Brno and Tesco supermarkets are the most visible examples, but there aremany more.Is there a way in which a company that is already established here in the CRcould benefit from CzechInvest?Our services are provided to both new and already established investors. We canprovide information on the business and investment climate in the Czech Republic,information on available industrial real estate, location of potential Czech suppliersand assistance in application for investment incentives.The scheme of investment incentives has recently been amended to extend thetax incentive for already existing investors who plan to expand their Czech activities.There is also a new programme to support the creation of new jobs in regions withhigh unemployment. Our regional offices collect applications for grants from programmesaimed at increasing the competitiveness of small and medium-sized enterprises,such as the Inovace (Innovation) or Školící střediska (Training Centres). Furthermore,new and existing companies will be able to benefit from programmes aimed at developingbusiness incubators, science and technology parks, and industrial clusters.How many British and Irish companies already exist in the Czech market?As far as I am aware, there are more than 300 British and more than 50 Irish companiesin the Czech Republic – from large multinational companies such as Shell,Unilever, Tesco, LogicaCMG, Kingspan and Barlo, to small manufacturing and servicefirms and consultants and sales branches.What would be your key message to potential investors?Do not leave the door open for your competitors by neglecting the Czech Republic.Many British companies have had their eyes set on India or China, but Central andEastern Europe offers similar opportunities and a much friendlier business and investmentclimate. And the Czech Republic has attracted more foreign investment percapita than any other country in Central and Eastern Europe.cable assemblies and machine parts, Heads &All Threads, has chosen the Czech Republicas a location to serve the needs of continentalEuropean clients.Hillside PlasticsThe Supplier of plastic parts to Black & Deckerhas followed their customer to the Czech Republic.R.B.FarquharThe Scottish manufacturer of bathroom podsfor hotel chains such as Holiday Inn, Travel-Lodge and Travel Inn, opened their first plantoutside the UK in Chomutov on 26 August 2004.CzechInvest – The CzechInvest central officeis based in Prague with 13 regional offices inthe Czech Republic and nine foreign representationoffices.Central office:Štěpánská 15, 120 00 Praha 2, Czech Republictel.: 296 342 500, fax: 296 342 502E: agentura@czechinvest.orgU.K. & Ireland office: 1 Harley Street,London W1G 9QD, United KingdomRené Samek, E: london@czechinvest.orgtel.: +44-20-7291 4610, fax: +44-20-7291 4612FOCUS SEPTEMBER 2004 5