Czech Business & Trade 3/2018

1928
2018
CHALLENGES FOR CZECH
ENGINEERING
UNIQUE NATURE OF CZECH
AVIATION INDUSTRY
SUCCESSFUL
DEVELOPMENT OF RAIL
TRANSPORT
THE SUPPLY OF INDUSTRIAL
PROPERTIES WILL FURTHER
INCREASE
ENGINEERING
3
2018

SHEET METAL MANUFACTURING
DESIGN DEVELOPMENT
SHEET METAL JOB SHOP
POWDER COATING
WELDING
ASSEMBLY
Contact:
ASPERA, spol.s r.o.
www.asperatechnology.cz
e-shop: www.kovovybaveni.cz

CZECH BUSINESS AND TRADE
Czech Business and Trade – With a Tradition of 90 Years
Economic Magazine is Designed for Foreign
Partners, Interested in Cooperation with
the Czech Republic
Issued by PP AGENCY s.r.o. in cooperation with
• Ministry of Industry and Trade of the Czech Republic
• Ministry of Foreign Affairs of the Czech Republic
• Ministry for Regional Development
of the Czech Republic
• Confederation of Industry
of the Czech Republic
• Confederation of Employers‘ and Entrepreneurs‘
Associations of the Czech Republic
• Czech Chamber of Commerce
• CzechTrade
PARTNER OF THE MAGAZINE:
ICC Czech Republic
EDITORIAL BOARD:
Vladimír Bärtl, Jiří Hansl, Marcela Havlová, Jaromír
Kohlíček, Dagmar Kuchtová, Martin Lukáš, Karel
Machotka, Marie Pavlů, Tomáš Seidl, Miroslav
Somol, Jarmila Škvrnová, Jan Špunda, Martin
Tlapa, Jan Wiesner
MANAGING EDITOR:
Pavla Podskalská
EDITOR:
Jana Pike
TRANSLATION:
Vlasta Benešová
• INTRODUCTION
Questions of the Month for Marta Nováková, Minister of Industry and Trade 4
• ENGINEERING
Challenges for Czech Engineering 5
Future of Machine Tools and Forming Machine Sector 10
• ANALYSIS
Agricultural Engineering is Using Up-to-Date Technology 14
• PR
CLASSIC Oil – Czech Leader in Manufacture of Cooling Fluids 19
Storing Solution by Proman 28
New Machine from Varnsdorf 42
• TREND
Unique Nature of Czech Aviation Industry 20
PROOFREADING:
Ivana Kadlecová, Matthew Booth, Pearl Harris
GRAPHIC DESIGN:
Stanislava Podaná
COVER PHOTO:
pixabay.com
DEADLINE: 25/8/2018
© PP Agency
ADDRESS:
Myslíkova 25, 110 00 Praha 1
Czech Republic
e-mail: journal@ppagency.cz
www.ppagency.cz,
www.doingbusiness.cz
Press run: 10 000 copies. It is not allowed to
reproduce any part of the contents of this journal
without prior consent from the Editor.
Attitudes expressed by the authors of articles
carried by CBT need not necessarily be consistent
with the standpoint of the Publisher.
MK ČR E 6379, ISSN 1211-2208 „Podávání
novinových zásilek povoleno Českou poštou,
s. p., odštěpný závod Přeprava, č. j. 3468/95,
ze dne 24/10/1995“
• RAILWAY INDUSTRY
Successful Development of Rail Transport 24
• RESEARCH
Research Combined with Practice Bears Fruit 30
• LOGISTICS
Czech Logistics Market Is Keeping Pace with Innovative Solutions and Benefits from It 32
Supply of Industrial Properties Will Further Increase 38
• PRESENTATION OF FIRMS
ARGO-HYTOS s.r.o.; ASPERA, spol. s r.o.; ATURN cnc, s.r.o.; Bisnode Česká republika, a.s.;
CLASSIC Oil s.r.o.; Česká exportní banka, a.s.; ENERGO - PRO a.s. (HATcom); CHEMOTEX Děčín a.s.;
KOVOSREAL s.r.o.; M - KOVO s.r.o.; PROMAN s.r.o.; STEATIT s.r.o.; TOS VARNSDORF a.s.;
Veletrhy Brno, a.s.
3 |

INTRODUCTION
Questions of the Month for Marta Nováková,
Minister of Industry and Trade
What are your priorities as Minister of
Industry and Trade regarding the support
of export, business and investment
in 2018?
For our open economy, export is a key
prerequisite of success. With its volume
of 4.2 billion, export last year surpassed
the magic four-billion crown limit. This
year, however, Czech exporters will hardly
be able to catch up with this record high
limit, owing to external aspects. In this
respect, a certain role is played by exchange
rate differences and the activities
of the Czech National Bank. But even if
the final figures are not at last year´s record
level, it is clear that Czech exporters
are doing well, on the long-term basis, in
the European markets, to which the overwhelming
majority of Czech production
is targeted, as well as in other countries,
such as China, the USA, Russia and India.
I am glad that these good results are also
largely due to our economic diplomacy,
which we share with our colleagues from
the Ministry of Foreign Affairs.
At the moment, Czech producers are
hindered in their further upswing by the
labour shortage. We are a country with
the lowest unemployment rate within the
EU on a long-term basis, which naturally
has its social benefits. The current labour
shortage, however, is too big to be saturated
by our own resources. Our Ministry
is therefore working on programmes,
which are already bearing fruit, to bring
skilled workers to the Czech Republic
from other countries.
With regard to the business sphere, you
know that I myself come from the business
environment, and this explains why
my clear priority is to radically reduce the
administrative burden of our businessmen.
My principle is that not businessmen,
but papers should be making the
rounds of the offices. That is why I place
such emphasis on the digitalisation and
electronisation of State administration.
And, concerning the investment environment,
it is unequivocally targeted towards
projects with high value added and based
on a high proportion of research and development
work. Inferior projects have no
chance. We do not want to and we shall
not be a country of assembly, using journalism
terminology. We´ll be a country of
research, development, investment and
higher pay for employees doing skilled
work. This is my objective.
You said that you wanted to focus on
digitalisation and robotisation and on
getting the decision on the construction
of additional blocks in the Dukovany or
Temelín nuclear power stations. Can you
give us more details?
Yes, I see no reason why today, when
State institutions are equipped with the
most sophisticated technical facilities,
businessmen should be obliged to do the
rounds of public authorities. They should
be doing business and not be queuing at
the doors of all sorts of institutions, wasting
their precious time. I see tremendous
opportunities in the further digitalisation
of State administration that will make our
enterprises, especially small and medium-size
businesses, more efficient. This is
my first priority – less red tape and more
work... I know from my own experience
what the situation in the offices is like and
what needs to be done in this area.
With regard to the development of our
nuclear programme, the priorities are
clearly given, and we are working on
their specification together with our colleagues
from the Permanent Nuclear Energy
Commission. In future, our country
will not be able to do without nuclear
energy. And our task today is to create
the optimum conditions for its sound
development in the coming decades and
to find a suitable model for its financing.
This is our responsibility, which we accept,
although from time to time we are
criticised for not seeking other ways. The
truth is that we are seeking them, but
at the moment the first priority for our
economy, based on industrial production,
as well as for households, is to unequivocally
ensure future energy security based
on nuclear power.
Can you see any major trend or expectation
influencing the Czech economy and
industry in the year 2018?
In 2018, we celebrate the centenary of the
existence of the independent Czechoslovak
Republic. This year we also mark
the 60th instalment of the International
Engineering Fair in Brno. These are natural
highlights we can be proud of, regarding
both the more than two-century-long
industrial tradition, which is the basis
of our current prosperity, and the Brno
Trade Fair, which has successfully stood
the test of keen world competition. Nevertheless,
if you ask me about the activities
that should influence our economy,
my unequivocal answer is digitalisation
and a resolute reduction of bureaucracy
in business. We have a self-conscious
sector of big firms, but a well-balanced
economy must be formed by medium
and small enterprises, including family
firms. This is our family silver and the salt
of our business and enterprise. So far, our
State has not been too friendly towards
these respectable people. This is what I
want to change. We have at our disposal
digitalisation, electronisation of State administration
and other means of reducing
superfluous administration, which
unnecessarily stifles creative and active
people. So that if I really wish and expect
anything, it is the creation by the State of
a fair environment also for small and medium
enterprises. When this is achieved,
the Czech economy will rise still further
above the level at which it now stands.
Photo: Ministry of Industry and Trade archives ; www.freeimages.com
| 4

CZECH BUSINESS AND TRADE
Challenges for Czech Engineering
According to the latest Study of
the Czech Engineering Industry,
the overwhelming majority of
firms (97 %) agree that Czech
engineering is expected to grow
by 3.4 per cent this year. Next
year, however, companies forecast
a slowing down of the favourable
growth trend and expect
stagnation (a mere 0.5 % growth).
Nearly half of the firms (42 %)
even predict a decline.
“I am expecting the industry to grow, but its
growth will depend on the situation in foreign
markets, in particular as regards the automotive
segment, which has the greatest
impact on Czech industry. For energy and
raw material engineering, the most important
factor will be the development of commodity
prices, which conditions the investment
decisions of raw material extractors
and processors,” says Antonín Růžička, Managing
Director of Wikov Industry, a.s. This is
confirmed by Robert Keil, Business Development
Manager for Advanced Engineering,
CzechInvest, who adds: “Czech engineering
has a very good reputation around the
world. However, in spite of its relative stability
and the prediction of just a moderate decline,
it is faced with a relatively complicated
task. If it wants to keep its position at the
very top of technological advancement and
participate actively in the technological revolution
of the Internet of Things and smart
factories, it must be able to apply the new
technologies in practice without delay. This,
of course, will depend on the education
we are able to offer students and prospective
workers, who will have to master new
and continuously developing sophisticated
skills and knowledge. Of key importance in
this connection will be the availability of
a sufficient supply of experts.”
• INNOVATION AS A PRIORITY
Under pressure of the labour shortage,
Czech firms actively innovate by using the
latest inventions in the area of automation
and robotisation. Potential reserves in production
can be spotted by production IT
(MES) systems, which in digital factories
can control a part of the manufacturing
operations. Some Czech enterprises already
use digital factory applications with
Industry 4.0 characteristics.
Foreign demand is expected to continue
growing significantly, even though the risks
are now more acute in connection with the
slower growth of the economy than at the
beginning of 2018. Czech exports will benefit
from this favourable outlook, as indicated
by export expectations, which, if fulfilled,
would be an indication of a more massive
growth of exports than in the first quarter
of 2018. The greatest risks are geopolitical
issues in connection with another potential
escalation of business wars or greater slowing
down of the Chinese economy, which
would probably affect even German exports.
The stronger crown and higher wages
are additional risks, although not unmanageable
at the moment. “Czech engineering
plays an irreplaceable role in the country´s
exports and it will be most important for
it to maintain its position in the traditional
markets, while seeking ways to expand to
new territories. In view of the steadily growing
competition, mainly from China and
other Asian countries, a very important role
will be played by active government support
in financing and insuring export projects
through the Czech Export Bank (CEB)
and the Export Guarantee and Insurance
Corporation (EGAP). An important question
is how the sanctions issue will be solved in
connection with exports to the Russian Federation,
Iran, etc. Another important task will
be to ensure the supply of qualified labour,
especially as regards technical professions,
where the shortage of labour is critical. One
5 |

ECONOMIC POLICY
way to solve this problem is development
and technical innovation, their practical
application and closer collaboration of engineering
companies with research and development
institutions,” adds Vanda Petrov,
Director of OT průmysl, ABF, a.s.
• GROWTH FACTORS ARE BASED
ON GROWING FOREIGN DEMAND
The revenues of engineering firms will
grow by 5.1 % this year. Next year will show
a slowdown to 2.9 %, with one-fifth (20 %)
of the companies expecting a decline in
their revenue. The profit rate will decline in
one-quarter (26 %) of firms and next year in
one-third (34 %) of them. Currently, however,
the total manufacturing capacity of
engineering firms is filled at 92 % and the
job vacancy rate is down to a mere 2 %.
The proportion of companies having more
contracts than in the comparable period
of last year has declined to less than onehalf.
“Growth factors, in my opinion, are the
growing demand for Czech engineering
products in foreign countries, growing productivity
and efficiency of production, and
the general growth of business confidence
and optimism. The greatest anti-growth
factors, as I see it, are the shortage of skilled
and unskilled labour, the strengthening
crown and growing costs (input raw materials,
wages, external services),” says Petr
Novák, Managing Director of Koyo Bearings
Czech Republic, s.r.o. (kBCZ).
The revenue of Czech engineering firms
derived from export will grow by 5.2 % this
year on average, which mainly concerns
large companies (by 5.8 %). Small and medium-sized
firms will show a growth in their
revenues derived from export by approximately
one percentage point less (4.6 %).
Next year, company managers expect the
growth of their revenue derived from export
to slow down to a rate of 3.3 %.
Brisk firm is fully export-oriented, with 97 %
of its revenues being derived from the export
of its products to 77 countries on 5
continents. It exports its goods to the strategically
most important markets, such as
the whole of Europe, Russia and the former
CIS states, the USA and South America, Africa,
the Middle and Near East, Australia, Malaysia,
Indonesia, Thailand, and China. All
Photo: www.bigstockphoto.com; Siemens archives
| 6

Double Anniversary
at ARGO-HYTOS s.r.o., Vrchlabí
ARGO-HYTOS s.r.o., Vrchlabí celebrates two
anniversaries in 2018, namely the 25th
anniversary as a member of the ARGO-HYTOS
group and the 15 year anniversary of the name
change from Hytos a.s. to ARGO-HYTOS a.s.
In 1993, today’s ARGO-HYTOS Group, together with the
former partner Ulbrich GmbH, took over the majority of the
shares in Hytos a.s.
In 2003, Hytos a.s. was renamed ARGO-HYTOS a.s. in the
course of the restructure of the ARGO-HYTOS Group. Furthermore,
in 2007 the company was transformed into a GmbH, s.r.o.
In 2006-2008 significant investments were made by the
ARGO-HYTOS Group in Vrchlabí. For example, around EUR 8
million were invested in expanding the production area by
twice the old space, renovating the old production area
and in building a new high-bay warehouse.
Another EUR 10 million were invested in new machinery and
new assembly lines with new test benches.
These high investments combined with the great commitment of
the employees have paid off.
ARGO-HYTOS s.r.o. today has one of the most modern production facilities
for hydraulic products in Europe. Within the ARGO-HYTOS Group,
ARGO-HYTOS s.r.o. is the competence centre and the main production site
for the hydraulic Fluid & Motion Control (FMC) product range.
With around 650 employees and the functional areas of development,
sales, finance, purchasing / logistics, production, IT and quality assurance,
ARGO-HYTOS s.r.o. is not only the largest production site within the
ARGO-HYTOS Group, but also a development centre for the product
groups valves, control blocks, and power units. The rapid growth of these
product groups in recent years shows that the price-performance ratio and
the quality of the products are in demand worldwide.
ARGO-HYTOS s.r.o. will continue to work intensively over the next few
years to further adapt the product range to the needs of the markets by
expanding and modernising the product range by means of stronger
electrification of the products, the expansion of system technology and the
implementation of digitisation solutions. In addition to product development,
the introduction of further automation solutions and the use of the latest
production technologies will be a key objective in the following years.
ARGO-HYTOS s.r.o. · Dělnická 1306 · 54315 Vrchlabí · Czech Republic · Tel.: +420 499 403 111 · info.cz@argo-hytos.com

ECONOMIC POLICY
its investment and business activities are
targeted so as to ensure a permanent yearon-year
progressive growth of revenue. In
the past few years, its total revenue has
been growing by 5-6 % a year on average
and the same stable growth is expected in
2018 and subsequent years, mainly thanks
to the planned schedule of new projects
– deliveries of spark plugs and sensors for
the serial production of large car factories.
“The current structure of the product, client
and market portfolio eliminates the loss of
revenue risk in one segment, one client,
one territory. The firm supplies spark plugs
and sensors for primary production and as
spares. However, we are not dependent exclusively
on the automotive industry; our
products are intended for aircraft engines,
motorcycles, ships and garden equipment
(OEM supplies its products to the largest
garden machinery manufacturers in Sweden,
the USA, and China),” says Mojmír
Čapka, Chairman of the Board of Brisk, a.s.
“Our plan is to increase exports by at least
10 %, specifically to Sweden, Germany,
France, the Netherlands and the USA. We
are profiting from our long-term, active
and hard work with customers in those
countries. And this is by no means an easy
task, especially as regards delivery requirements
and the quality of products, where
requirements are increasingly demanding.
Another problem is the shortage of skilled
workers on the part of the clients, and
their inadequate theoretical and practical
knowledge. The problem is precise specification
of what the client really wants. The
young generation of PC and SW developers
will create anything, even things that
cannot be realised in practical production,”
states Tomáš Prášil, Project Manager of the
Motor Jikov Group, a.s.
Czech Engineering
An important sector of the Czech manufacturing
industry is the manufacture of
CZ-NACE 28 category machines and equipment.
It comprises a very broad range of
equipment used for processing materials
mechanically or thermally, or carrying out
production processes on materials (e.g. manipulation,
spraying, weighing, packing),
including the production of their mechanical
components producing or using force.
It also comprises specially made parts for
those machines and equipment. The sector
further includes fixed, moving and manually
operated equipment, regardless of whether
it is intended for industry, crafts, construction
and agriculture or household use. The
sector also comprises the manufacture of
special equipment for personal or cargo
transport. It accounts for approx. 8 % of the
revenue derived from own products and
services of the manufacturing industry. The
dominant category within the sector is large
and medium-sized enterprises. Large enterprises
accounted for 56 % of the revenue,
52 % of value added and 48 % of employed
persons. The shares of medium-sized enterprises
were from 31 to 36 %.
One of the important sectors of Czech general
engineering is energy engineering,
which is experiencing a period of prosperity
thanks to a growing global demand for
energy. Energy engineering comprises the
manufacture and delivery of equipment
for various general engineering sectors,
ranging from the manufacture of turbines,
fixtures, compressors and pumps, to lifting
and handling equipment. The affiliation of
Czech energy equipment manufacturers
with supranational companies often opens
the way for them to gain foreign contracts.
At the same time, a number of purely Czech
companies are successful exporters of energy
equipment thanks to their long tradition
and favourable references.
The manufacture of industrial cooling and
air-conditioning equipment is another
group with good prospects, as the refrigeration
sector impacts practically all branches
of human activities, including the safety and
quality of foods in the supply chain from the
harvest to the consumer; air-conditioning of
buildings, pharmaceutical production and
healthcare, and the low temperature and
gas liquefaction and cooling equipment
used in all sectors of industry. The tradition
and current high standards of machine tool
production, which forms an indispensable
part of the sector, augurs well for the further
successful development of this group.
Photo: www.bigstockphoto.com
| 8

CZECH BUSINESS AND TRADE
www.s-radiatory.cz
Storage
radiators
Manufacture of Electrical
Accumulation Heaters
We manufacture electrical accumulation heaters, using
the best materials and components. The heater consists
of a case formed by a tub for the heating plates
and a profiled metal sheet extending the surface for
heat transfer between the heating body and the ambient
environment, heating plates made of ceramic
material specifically designed for heating bodies and
accessories (power cord, thermostat ...)
The basic principle of the functioning of the heater is the
actual accumulation and subsequent radiation of heat
into the environment. The heating plates are heated to
about 90 o C, whereupon the thermostat switches off the
circuit and the plates only radiate the accumulated heat.
When the temperature in the heater drops, the thermostat
will switch the circuit on again and the whole cycle
will repeat itself. It can be said that, in a heated room,
electricity will be drawn for about 20 minutes an hour.
Advantages of this type of heating:
purchase price – you only buy the heater, no water
distribution, boilers, etc. are needed
acquisition costs are about 30 % of the price of
standard heating
easy assembly
wide possibilities of use
simple and trouble-free operation
quick installation
V tůních 1636/1 • Praha 2 - Nové město • 120 00 • Czech Republic • info@s-radiatory.cz • venclin@gmail.com
9 |

ENGINEERING
Future of Machine Tool and Forming Machine Sector
The machine tool and
forming machine sector is
the cornerstone of the entire
Czech engineering industry. Its
development is essential for the
promotion of other engineering
branches and consequently the
entire industry. Its characteristic
features are high technical
standards and a high level of
technological advancement.
The basic requirements placed on machine
tools are precision, productivity, safety and
reliability. In the area of electronics, drives,
mechatronics, and technology management
software, Czech machine tools are at
the absolutely highest level. Practically all
Czech manufacturers use the same components
for their products as their rivals
and can connect the machines they manufacture
to the Industry 4.0 communication
structures. Although new technologies are
being introduced gradually, such as additive
production, machining and forming
will long continue to be used as basic technologies
in engineering.
• OUTPUT OF MACHINE TOOLS
AND FORMING MACHINES IN 2017
In 2017, production in the sector declined
by 4.7 % and exports by approximately
3.5 %. The main causes of the decline were
problems in the eastern markets, especially
the continuing unfavourable situation in
Russia, and the stagnant demand in European
markets, especially in Germany, which
is the Czech Republic´s main export territory.
As a result, the CR dropped to 15 th position
on the world scale of machine tool and
forming machine manufacturers.
The Czech Republic´s main export territories
are Germany (31 %), China (approx.
9 %) and Slovakia (7.7 %), followed by Russia,
Poland, the USA, and Italy. At the moment,
exports to Germany are showing a
slightly upward trend, but sales to the Russian
Federation are falling further in consequence
of the continuing sanctions and
the general economic situation in Russia.
In comparison with 2014, this is a decline
of approximately 60 %. After a massive fall
of exports to China in 2016, the year 2017
showed a moderate growth. The efforts to
strengthen the position in other markets
are most gratifying. In 2017, exports to Slovakia
and Poland increased.
The domestic market is naturally very important
for most Czech manufacturers,
who are taking full advantage of its competitive
advantages. Czech manufacturers
have a share of approx. 30 % of the domestic
market. In export, the CR is at a comparable
level with, for example, Austria
or France. In the framework of the CECI-
MO member states, the Czech Republic
holds 8 th position.
With regard to export commodities, leading
items are grinders, followed by lathes,
machining centres, and milling machines.
The main sectors purchasing engineering
technologies are the automotive industry
and its subcontractors, manufacturers of
tools and moulds, and the defence, aviation,
and energy industries.
• ACHIEVEMENTS OF CZECH FIRMS
WITHIN THE SECTOR IN DOMESTIC
AND FOREIGN MARKETS
Czech firms take part in practically all important
international exhibitions and fairs.
Photo: ŠMERAL Brno archives, BBV archives
| 10

CZECH BUSINESS AND TRADE
In 2017, for example, they participated
in the CCMT exhibition in Shanghai, the
Metalloobrabotka exhibition in Moscow
and the EMO fair in Hannover. A very important
event for all domestic manufacturers
is the International Engineering Fair in
Brno, which in even years goes under the
name of IMT, the acronym for International
Machine Tools exhibition. In 2018, the most
important international event will be IMTS
Chicago, the largest and probably most important
global exhibition within the sector.
The Czech Republic will be represented
there by several companies, including SST.
SST Priorities
The Association of Engineering Technology
(SST) is a member of the European
Association of the Machine Tool
Industry (CECIMO). This Association represents
about 36 % of the world’s machine
tool and forming machine production.
In 2018, the aggregate output
of its members is expected to be better
than in 2017. Current calculations indicate
that the total output will be at the
2014 level. Considering the continuing
high volume of production in the automotive
industry and the generally
favourable economic situation in the
Czech Republic, the Association expects
domestic demand to grow for machine
tools in 2018. As regards exports, sales
to China are very likely to increase, and
so are exports to Germany and other
European countries. On the other hand,
there are certain unfavourable factors,
such as the effect of the trade restrictions
imposed by the USA, Brexit, and
the strengthening of the crown in relation
to the euro.
• STRONG TRENDS
AND EXPECTATIONS
The main trends are the continuing
promotion of robotisation, automation,
digitalisation and connectivity, referred
to as Industry 4.0. New technologies,
in particular additive production technology,
which represents a new quality
in the production of special parts and
shape-complicated structures, are becoming
increasingly important. The advances
in electromobility and artificial intelligence
are most likely to influence the
further development of machine tools
and forming machines. At the moment,
these trends are being adversely affected
by a lack of skilled labour.
• INNOVATION IN THE MACHINE
TOOL AND FORMING MACHINE
SECTOR
The high standard of Czech machine tools
and forming machines is largely due to
the innovative activities of most manufacturers,
such as the companies TOS VARNS-
DORF, KOVOSVIT MAS, TAJMAC – ZPS,
TOSHULIN, TOS Kuřim, and FERMAT. The
basis is their own construction and development
facilities, supported by collaboration
with higher-learning institutions, such
Hi-tech CNC turning
www.aturncnc.com
• CNC turning
• milling, grinding, thread rolling
•
ATURN cnc, s.r.o.
J. A. Bati 5263, 760 01 Zlín, Czech Republic
Managing Director
Mobile phone: +420 606 222 095, jakub.kadlecik@aturncnc.cz
11 |

ENGINEERING
MACHINE TOOL EXPORT ACC. TO TERRITORIES IN 2017
Germany
China
30.56%
31.13%
Slovakia
Russia
Source: SST
3.13%
3.61%
8.92%
3.86%
4.63% 6.50%
7.66%
Poland
USA
Italy
India
Others
EXPORT AND IMPORT IN CR 2008 - 2017 (HS8456-8463) IN CZK MIL.
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Export
Source: SST
as the Research Centre of Manufacturing
Technology (RCMT) attached to the Prague
Technical University, and independent research
workplaces, e.g. VÚTS Liberec, a.s.,
and manufacturers and suppliers of electronic
and mechatronic components, tools
and robots. It is gratifying that, besides
continuously improving their current machine
tool concepts, Czech manufacturers
are also keeping pace with regard to
new technologies. For example, in 2018,
KOVOSVIT MAS presented its first hybrid
machine enabling the combination of conventional
machining with additive technologies.
One of the main limiting factors
in the development of the sector is the
inadequate supply of accomplished graduates
of technical and vocational schools.
Although the situation has somewhat
improved, enterprises are obliged to seek
their own ways to find skilled workers. The
secondary technical school founded by
TOS VARNSDORF in 2016 is a unique example
to be followed by other companies. For
the time being, most firms rely on cooperation
with regular vocational schools and
apprentice training centres.
Oldřich Paclík
Director, Association of Engineering Technology
www.sst.cz
Czech firms displayed their products
at the CCMT China CNC Machine Tool
Fair in Shanghai
Czech engineering firms, with support from
the Ministry of Industry and Trade, took part
in the CCMT Fair, one of the world´s largest
engineering fairs held in Shanghai. Twelve
companies presented their products at the
Fair in a joint exhibition on a surface area
of 296 sq. m.
“Czechs are among the Fair´s traditional
partners and among the important countries
using national pavilions to present
themselves. This is in keeping with the position
of Czech manufacturers, who, thanks
to the quality of their products and their
presence in the Chinese market of more
than 65 years, rank alongside respected
Chinese partners. There is keen competition
in the Chinese market, and this is another
reason why systematic work and this form
of support are needed to assist Czech firms.
We appreciate the very well organised B2B
meetings of Czech and Chinese firms, also
attended by important representatives of
the China Machine Tool & Tool Builders´ Association
(CMTBA) and big Chinese firms,”
said Bedřich Musil, professional guarantor
of Czech participation and Project Manager
of the Association of Engineering Technology.
Twelve exhibitors – ČKD BLANSKO-OS,
FERMAT CZ, KOVOSVIT MAS, KSK Precise
Motion, Pilana Metal, RETOS VARNSDORF,
Škoda Machine Tool, TOS Olomouc, TOS
KUŘIM – OS, TOSHULIN, TOS VARNSDORF,
and ŽĎAS – presented their companies at
the joint Czech exhibition. The representatives
of participating Czech companies
conducted some 200 business encounters,
some of which had been pre-arranged and
some with new potential partners from
among the visitors. Czech firms valued their
participation in the Fair as very positive and
many of them would like to attend the next
CCMT Fair. “A great advantage is that the Fair
is held in the most important part of China,
in the centre of industry and trade. A large
number of Chinese businessmen visited
our exhibition and a large number of interesting
discussions were held there,” said
Luboš Janoušek, Sales Director of Fermat.
| 12

CZECH BUSINESS AND TRADE
13 |

ANALYSIS
Agricultural Engineering is Using Up-to-Date Technology
Agricultural machines are
among traditional Czech export
commodities. The character
of the machines has radically
changed over the past 30 years,
with the agricultural machinery
sector of today comparing
well with the technologically
most demanding industries, by
the use of modern materials
and even space technologies.
Sophisticated production is
a common feature in Czech
factories, with firms promptly
meeting demand, introducing
new models and high-quality
processing, all at competitive
prices, even in foreign markets.
There are some 100 agricultural and forestry
machine manufacturers in the Czech
Republic. The Agricultural and Forestry
Machinery Association A.ZeT has 43 members,
including all the major domestic producers
and both the country’s agricultural
universities plus the Agricultural Research
Institute. The total output of the member
firms is worth around CZK 20 billion (approximately
EUR 750 million), which accounts
for 80 % of total production in the
Czech Republic. Total Czech agricultural
and forestry machinery exports are worth
CZK 17.4 billion (approx. EUR 660 million).
Of this amount, the export of A.ZeT members
accounts for 85 %. Agricultural machinery
manufacturers employ an estimated
10 000 people, about one-third of the
number the sector employed 20 years ago.
• STABLE SALE OF UNIVERSAL
TRACTORS
The sale of universal tractors is stable, according
to long-term statistics, which show
that since the beginning of this decade approx.
2 200 tractors were sold each year.
With regard to the sale of combine harvesters,
the capacity of the Czech market is estimated
at some 170 machines. Their sale,
however, fluctuates year-on-year. In 2017,
which was more or less an average year,
altogether 2 247 tractors and 162 combine
harvesters were sold.
• EFFECT OF EU DIRECTIVE
INTRODUCING STRICTER
EMISSION STANDARDS ON SALES
A new Directive, EU 167/2013, which enacts
stricter rules for placing new tractors on the
market and their registration, came into
force at the beginning of 2018. Manufacturers
were prepared for the new situation and
the change only had some effect at the end
of last year, when dealers were trying to
place on the market machines made in the
previous year. This resulted in an extra high
number of new tractor registrations. At the
beginning of the new year, however, sales
stabilised and returned to normal
• CZECH PARTICIPATION IN
TRADE FAIRS AND EXHIBITIONS,
SUCCESSFUL BUSINESS MISSIONS
The production potential of Czech agricultural
engineering exceeds the absorption
capacity of the domestic market. One of
the main activities of A.ZeT therefore is to
support Czech exports, such as presenting
Czech manufacturers in other countries.
Our most important foreign undertakings
take place at trade fairs, for example at
SIMA in Paris and AGRITECHNICA in Hannover.
Both these exhibitions are the most
important events within the sector not
only on the European scale, but also in the
world context. The disadvantage is that
both these exhibitions are held in the same
calendar year, always the odd year. Czech
firms never miss them and have been present
there every time since 1995. A positive
aspect, on the other hand, is that, in the
even years, Czech firms can concentrate
on the TECHAGRO domestic fair.
In the past, the Association also organised
joint participation of Czech firms in trade
fairs and exhibitions in Ukraine (Kiev), Denmark
(Herning), and Poland (Poznan), and
mediated the firms’ presence at the International
Specialised Exhibition of Agricultural
Machinery, AGROSALON, in Moscow.
In addition, it has twice organised the participation
of its members at EXPO AGRO
in Argentina. An important event for small
agricultural machinery manufacturers is
the GaLaBau fair in Nuremberg.
Representatives of our firms take part in
business missions led by officials of the Ministry
of Agriculture. In the past two years, we
have had an opportunity to present our industry
in Tanzania, Zambia, Nigeria, Senegal,
and China. The concerted approach of the
suppliers of agricultural and food industry
Photo: Zetor archives
| 14

CZECH BUSINESS AND TRADE
15 |

ANALYSIS
Source: A.ZeT
Source: A.ZeT
SALES ON THE CZECH MARKET – TRACTORS
SALES ON THE CZECH MARKET – COMBINE HARVESTERS
technologies, possibly including genetic
material, may bring Czech manufacturers
synergic effects in establishing business and
cooperation relations in specific regions.
The quality of Czech products compares
well with European standards, as is illustrated
by the large number of Czech-made
machines ploughing and tilling the fields
and harvesting grain in a number of European
countries, which were developed
and made in Czech factories and for commercial
reasons are flying the colours of the
manufacturers’ foreign trade partners.
• SUCCESS OF CZECH FIRMS
WITHIN THE SECTOR IN FOREIGN
MARKETS
The largest trade partners of Czech manufacturers
are firms in neighbouring Germany,
Austria, and Slovakia, followed by France
and Poland. Here, much depends on the
actual products. For example, the Czechmade
Zetor tractor is traditionally much
in demand in Poland, Scandinavia, and the
Balkan States. The manufacturers are rediscovering
their partners in the countries of
the former Soviet Union – Russia, Ukraine,
the Baltic States, and also in the new EU
countries – Romania and Bulgaria.
The most important Czech export items
are fodder crops and culm crops harvesting
machines, which comprise all mowing and
cutting machines, including grass mowers,
raking machines, tedders, etc. These machines
account for 40 % of total agricultural
machinery exports. Tractors take a share of
22 %, the same as soil preparation and soil
treatment machines.
Important Czech exporters are FARMET at
Česká Skalice in East Bohemia and BEDNAR
FMT Praha, followed by OPaLL AGRI Dolní
Životice and SMS CZ Rokycany, all manufacturing
soil treatment machinery, AGRIO MZS
Křemže known for its sprayers, ZDT Nové
Veselí exporting trailers and semi-trailers.
Other export articles include mowing machines,
front loaders, manure spreaders and
the full range of small agricultural machinery,
including tools. Special machines, such
as stump cutters and oleaginous seed processing
refineries, are also much in demand.
Specialising in stable machinery manufacture
are the firms FARMTEC Jistebnice, BAU-
ER TECHNICS Tábor and AGE České Meziříčí.
Zetor tractors are experiencing a comeback
to the largest world markets. Zetor company
exports 90 % of its output and the rest
is sold at home. The latest tractors feature
a new design created in cooperation with
the renowned design company Pininfarina,
which expresses the strength and durability
of ZETOR machines combined with an
attractive appearance. The new design is
being applied to all the Zetor model series.
The main agricultural machinery import
items are machines which are not made in
the Czech Republic, such as higher output
tractors (over 120 kW), combine harvesters
and presses, and regrettably also cutter
harvesters, which we used to manufacture
in the past, and even to export. The same
fate has befallen rape harvesters, where,
too, we must completely rely on import.
In the past five years, Zetor tractors have
regained their position as leaders in the
Czech market, with a 24 % share, followed
by foreign-made John Deere tractors
(18 %), New Holland tractors (17 %) and
Case IH tractors (11 %). As regards combine
harvesters, Class and New Holland machines
each have a 31 % share of the market,
with John Deere and Massey Ferguson
together holding the remaining one-third
share (20 % and 8 % respectively).
• TECHAGRO OFFERS A DISPLAY
OF THE LATEST CROP
PRODUCTION TECHNOLOGIES
AND MACHINES
Czech manufacturers and the largest importers
closely cooperate with the organisers of
two most significant domestic agricultural
machinery exhibitions, Brno Trade Fair, a.s.
and České Budějovice Exhibition Grounds
a.s. The complex of the TECHAGRO / SILVA
REGINA / ANIMAL VETEX / BIOMASS international
fairs in Brno comply with the strictest
international comparative criteria. Over the
years, it has achieved outstanding international
renown and now ranks second in im-
| 16

CZECH BUSINESS AND TRADE
Contacts:
CHEMOTEX Děčín a.s.
Tovární 63
Děčín XXXII-Boletice nad Labem
407 11 Děčín, Czech Republic
Phone: +420 412 709 222
E-Mail: chemotex@chemotex.cz
CHEMOTEX Děčín a.s. is a continuator of a traditional
Czech chemical production. Since 1993 we are a joint
stock company with more than 20 years of experience not
only in the production of industrial
chemicals. Due to substantial investments into buildings,
production technologies and equipment, our company keeps
competitive ability in today’s highly competitive environment.
Moreover, it keeps on track with market demand with
the emphasis on the flexible reaction to customer needs.
We have a broad product portfolio for practically all sectors
of industry, including engineering. Our R&D department
can tailor the requirements of its customers according to
their needs based on the expertise, market research, as
well as own surveys. Moreover, modification of existing
products according to the specification of a customer
does not pose any problem for our experts.
In our work, we try to keep the pace with the latest scientific
knowledge and trends of development.
Products useful for engineering:
degreasing products – product line EBOL and KORYNT
(water soluble, solvent types)
Water mixable cutting fluids – product line IDAZOX
(mineral base, semi-synthetic, synthetic)
Anti corrosion paints – product line RISTIN
Certificates: ISO 9001:2009, 14001:2005
Responsible care
www.chemotex.cz
17 |

ANALYSIS
portance after the SIMA Paris and AGRITECH-
NICA Hannover agricultural trade fairs. Its
initiator in 1994 was A.ZeT Association, which
has been one of the co-organisers of the fair
participating in preparing the concept of the
fair and the accompanying programme. Our
firms traditionally occupy an important part
of the exhibition surface area.
In recent years, TECHAGRO has been the
most successful project of all trade fairs
and exhibitions organised in the Czech Re-
AGRICULTURAL AND FORESTRY MACHINERY BALANCE OF TRADE
20 000
15 000
10 000
5 000
Source: MIT CR
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
export CZK mil.
public. In April this year, it once again broke
all records: 88 000 sq. metres of exhibition
surface area, 112 000 visitors and nearly
800 exhibitors from 42 countries.
• DEVELOPMENT IN
AGRICULTURAL AND FORESTRY
MACHINERY PRODUCTION
Czech firms are becoming increasingly involved
in international trade. The import
of foreign machines grew at practically
the same rate until 2008 as did Czech machinery
exports. Like domestic sales, foreign
trade, too, plunged by approximately
30 % in 2009 and 2010, in comparison
with previous years. In 2011, foreign trade
experienced a revival and this trend also
continued in the following years. The 2017
agricultural machinery trade turnover
amounted to over CZK 35 billion, while
exports and imports remain at approximately
the same level (CZK 17.4 billion
and CZK 18.0 billion, respectively). In other
words, the volume of imports is comparable
with that of exports expressed in
Czech crowns.
import CZK mil.
• STRONG TRENDS
AND EXPECTATIONS
A relative advantage of Czech agri-engineering
is the structure of the manufacturing
firms. The majority of them are small
and medium-sized enterprises, capable of
flexibly responding to demand, and which
can turn out machines precisely according
to the specific requirements and wishes of
customers, even in serial production.
Agricultural machinery reflects the requirements
of farmers for higher efficiency
and better quality of work operations.
From precision farming, the beginnings
of which date back to the mid-1990s,
agri-engineering has advanced to what
is called smart farming. Similar rhetoric as
that used in industry is beginning to find
its use in the sector, where we speak of
agri-technics 4.0, which means using ICT
not only in machines as such and interlinking
and connecting them to the smart
data network using accurate navigation
systems, for example in tractors and
self-propelled machines, but also monitoring
and controlling separate working
systems. In all these aspects, Czech manufacturers
are competitive even in international
comparisons.
The Czech economy is small and open
and consequently dependent on export.
Agriculture is a sector greatly dependent
on political decisions, at both national
and EU levels. Regular competition is also
being disrupted by the policy of supply
chains on which farmers are inadequately
dependent owing to existing legislation.
A controversial issue dividing EU member
states is Common Agricultural Policy (CAP)
financing, which disrupts free competition
by unbalanced and unjust interventions
and subsidies, thus demotivating hundreds
of Czech farmers, even from meat,
cereal, milk, fruit and vegetable production,
where Czech farming is competitive.
In view of the different approaches, the
question is to what extent it will be possible
to push through changes leading to
lower CAP financing, giving greater support
to rural development and improving
the quality of life in the countryside, while
reducing production subsidies and restricting
regulation in the sector to eliminate
the asymmetrical solution putting certain
states (including the Czech Republic)
at a disadvantage.
Dušan Benža
Director of the Agricultural and Forestry
Machinery Association A.ZeT Secretariat
www.zetis.cz
Development of foreign trade – forestry and agricultural machinery production (in CZK million)
year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
export CZK million 7 493 8 562 9 432 11 091 12 116 8 651 9 686 11 830 14 612 15 001 15 198 16 575 16 706 17 445
import CZK million 7 741 8 933 10 586 13 280 14 393 9 684 9 711 13 600 15 285 15 197 17 059 18 521 15 880 17 979
Figures in millions of CZK, 1 EUR=26.00 CZK
Source: Ministry of Industry and Trade CR (MIT CR)
| 18

CZECH BUSINESS AND TRADE
CLASSIC Oil – Czech Leader in Manufacture of Cooling Fluids
Photo: CLASSIC Oil s.r.o.°; Cryostat – determination of solidification point -90 o C
CLASSIC Oil, leading Czech oil dealer
and at the same time leader in own
antifreeze production in the Czech
market, owes much of its success
to intensive development. The
firm standing on two pillars – the
sale of a full range of automobile
oils and industrial lubricants and
development, production, and the
filling of special cooling fluids –
antifreezes, sets itself ambitious
aims: enlargement of its production
capacity, breaking into foreign
markets while maintaining abovestandard
customer care and, of
course, flexibility. “In our line of
business, only individual care taken
of the customer and maximum effort
to meet all his requirements will
bring success,” says Viliam Blumtritt,
Vice-President of CLASSIC Oil
Czech Republic.
Can you give us a short history of your
company?
We are a Czech family company, founded
in 2007 by Roman Šroba, whose special
emphasis from the very outset has been on
quality, personal contact and strong, longterm
relationships with the customers. The
firm based in Kladno near Prague operates
in Germany, Slovakia, Austria, Romania,
and many other markets, in addition to the
Czech Republic.
You have made tremendous progress
over the past few years as regards the
production and sale of antifreezes. In the
wide spectrum of products, from antifreeze
fluids for the automotive sector to
heat-transfer fluid filling and supply for
the technical systems in buildings, you
are one of the largest producers in the
Czech Republic. Wherein rests the
secret of your success?
We know that we can only succeed in the
market with our products if we approach
the customers individually and do our utmost
to meet their requirements. Our great
advantage is that all our employees are
used to doing their work with total responsibility
and flexibility.
You provide the private sector with
a full service and offer firms the filling
of lubricants and operating fluids in
containers provided with their own labels.
A special service is the complete revision
of documents and labels for all products.
Are there any interesting references you
can be proud of in this area?
It is a service used especially by big firms
and supranational chains, such as spare
part deliveries for automobiles, and by
firms having their own retail network. The
size of the deliveries range in the order of
thousands of tons.
You invest considerable sums in the
development of production and the
growth of your firm. Your own laboratory
is unique in the Czech Republic, especially
in the area of antifreeze production. Can
you give us some details?
We realise that only product development
and continuous improvement can ensure
a future for our firm, which must naturally
go hand in hand with investment in the
training and education of employees at all
echelons. You are right in saying that our
laboratory is at a very high level and, as
regards antifreeze, I consider it one of the
best in the Czech Republic. As an example,
I can mention our automatic titrator for water
content determination using the Karl
Fischer method, the apparatus for anticorrosion
testing according to ASTM D1384
standard and the Shimadzu gas chromatograph
with autosampler. The complete
list of our equipment can be found on our
websites www.classic-oil.cz.
Do you want to broaden your presence in
foreign markets? Why should discerning
customers collaborate with you?
We are well aware that customers need
quality products, a personal and flexible
approach in contracting and the negotiation
of technical parameters. All these
are things we can offer our customers as
a matter of course.
An innovation in July 2018 was that we decided
to enter the Bulgarian market with
our own commercial representation. The
representation will provide commercial services
to both wholesalers and final retailers.
We are also planning an active foreign acquisition
in the area of heat-transfer fluids
for administration buildings, hotels, production
and warehousing facilities, breweries,
ice rinks and many other sectors.
You are regular participants in important
domestic and international trade fairs.
Which new items are you going to
present at the International Engineering
Fair in Brno in 2018?
At the Brno International Engineering Fair,
we would like to present a unique comprehensive
series of products named “SNIPER”
and specified as “Unique Liquids”, targeted
at ammunition manufacturers. This means
everything included, from the first pressing
and forming operations to final chemical
polishing, so that customers will have
everything needed for production, including
service, at one address!
19 |

TREND
Unique Nature of Czech Aviation Industry
The Czech aviation industry this
year celebrates the centenary
of its successful existence.
Today the industry occupies
a position at the top among
global manufacturers of
aircraft engines and ultralights.
Dozens of Czech firms figure
in the sector, which has
become a representative of
Czech high-end technology,
attracting investment projects
such as those of the companies
Honeywell and GE Aviation.
In 2017, Czech aviation industry export
grew by a record 42 %, accounting for 0.2 %
of the Czech Republic´s total exports. Traditionally,
Czech aviation product manufacturers
export most of their products to the
United States, France, Russia, and Iraq. Being
a global business, the industry´s export is
spasmodic, with changing highs and lows.
As shown by statistics, its leading outlets
in recent years were the United Arab Emirates.
Czech firms export mainly helicopters
of an unladen weight of under 2 000
kilograms, small and medium-size aircraft
under 15 000 kilograms and accessories
thereof, going mainly to France, and aircraft
and helicopter parts and small aircraft and
helicopters exported to the United States.
• THE CZECH REPUBLIC
AS AN IMPORTANT SUPPLIER
An important role in the aviation industry
on the world scale is played by Aero
Vodochody, which, after a pause of more
than 20 years is once again building its
own training planes. In 1996, Aero stopped
serial production of its training planes, at
that time the most popular training engines
worldwide. Its first new-generation
plane is planned to soar into the skies by
the end of next year. The firm´s ambition
is to manufacture 150 planes over the next
decade, which accounts for about 10 % of
the world’s training aircraft market, excluding
the USA and Russia. Aero has important
subcontracts with the Brazilian firm
of Embraer, for which it makes parts for its
KC-390 transport plane. The firm also participates
in the development and supply
of wings for type C-Series medium-size
transport planes made by the Canadian
manufacturer, Bombardier. Another important
manufacture is also that of cockpits for
UH-60M Black Hawk helicopters built by
the Sikorski firm, which have been made
at Vodochody since 2011. Another Czech
firm which would like to set foot in the
overseas market is První brněnská strojírna
(PBS) engineering works at Velká Bíteš,
which prides itself on a tradition of more
than 50 years and which exports its aviation
and engineering products to 40 markets
worldwide. The firm specialises in the manufacture
of auxiliary energy units used for
plane starting and in air conditioning systems.
It further manufactures turbine and
turbo-propeller engines for small piloted
and unpiloted aircraft and helicopters. Another
firm manufacturing parts for aircraft
engines is Jihostroj, a Czech engineering
firm with a tradition going back to 1919.
It also manufactures hydraulic elements
and aircraft components and has started
work on the GE Catalyst engine for the
American Cessna Denali aircraft. Its novel
items are silent hydraulic pumps and the
development of toothed hydraulic pumps.
With its strategic partner, the firm of Parker
Aerospace, the firm´s aviation division has
launched a project focused on a new GE
Catalyst engine. Last year, it started serial
deliveries of fuel system devices for the
modernised L-410 NG transport plane and
the development of a new product for the
Korean customer, Hanwha Techwin. It has
developed and supplied components for
aircraft manufacturers in the USA and EU,
including the firms of Honeywell and UTC.
In the Czech Republic, its aviation division
Photo: AERO Vodochody AEROSPACE arcives, Martin Pinkas
| 20

CZECH BUSINESS AND TRADE
Investments
In 1993, the American company Honeywell
opened laboratories in Prague,
where it collects data and optimises
processes in many branches of its activities.
In 2003, it based its laboratories
in Brno´s Technological Centre, where
it innovates aviation and automobile
industry products. It is the third largest
centre within the concern, after the
United States and India. In the Czech
Republic it operates two factories, in
Olomouc and Brno. In 2016, Bell Helicopter
opened a paint shop and a transfer
centre for European clients. The firm
makes parts and whole doors for Airbus,
Boeing and Embraer aircraft, and operates
a Research and Development Centre
there. The American aircraft engine
manufacturer, GE Aviation, is building
a global centre in the Czech Republic for
the development, testing and manufacture
of Advanced Turboprop (ATP) turbojet
engines. It will be fully operational
by the end of 2022. This year´s test of
the most advanced ATP turbojet engine
is another step taken in the fulfilment
of the investment contract signed with
the Czech Government in 2016. Some
500 new jobs will thus be created in the
Czech Republic over the next five years.
Last year, 170 workers were already taken
on and 80 more will become employed
this year. GE Aviation is planning
to collaborate with Czech universities
and domestic suppliers in development
and production. The full capacity of the
Centre will be more than 400 engines
per year. ATP engines will also be used
by the completely new Cessna Denali
aircraft of the Textron Aviation firm.
The main outlet for the engines will be
North America. The first tests inside the
test room were made at the end of 2017,
and the actual testing on the plane will
take place later this year.
supplies some of its products to GE Aviation
Czech, První brněnská strojírna, Aircraft
Industries and Aero Vodochody.
• CZECH SPACE ODYSSEY
The space industry is another unique sector
in the Czech Republic which can pride itself
on top-standard projects. The CR is a member
of the European Space Agency and six
years ago Prague became the administrative
centre for the Galileo satellite navigation
system. During those six years, Galileo
has taken not a step, but a leap forward to
becoming fully operational. In collaboration
with the European Space Agency (ESA),
which is Galileo´s system architect, the construction
of the cosmic segment for launching
satellites sending out navigation signals
is making good progress. In December
2016, Galileo started initiation services with
18 satellites. Full operation, however, will be
in place no sooner than in 2020, when the
full constellation of 27 satellites will be in
orbit. Certification procedures authorising
airports to use the EGNOS system for the
approach phase of aircraft before landing
have been taking place since 2012. Successful
applications are being used in logistics,
agriculture, environment monitoring and
mapping, in addition to transport.
The first Czech space incubator, ESA BIC
Prague, established two years ago, is entitled
to use ESA (European Space Agency)
technologies and systems. This year, on the
occasion of the 40th anniversary of the first
space flight of the Czechoslovak astronaut
Vladimír Remek, a branch of the space incubator
was opened in Brno, South Moravia.
“The region is a good site with a suitable environment,
where space and aviation technologies
are faring well and are one of the
region´s priorities. New start-ups that will be
included in the project will profit from the vicinity
of research and scientific centres, specialised
institutes of Brno universities, and
will strike up collaboration with established
firms and supranational corporations operating
in the region,” says Jan Vitula, Vice-President
of the South Moravia Region. Besides
the 40th anniversary of the first space flight
of a Czechoslovak – and at the same time
the first non-American and non-Soviet astronaut,
2018 is the year of yet other important
events in the epoch of “space conquest”
with a Czech connection. In October 2018,
40 years will have passed since the launching
of the first Czech satellite, Magion 1, and
in November 2018 the Czech Republic will
mark 10 years of its membership of the European
Space Agency.
21 |

TREND
WORKING
IN COMPLIANCE
WITH NATURE
ENERGO-PRO
is an independent power producer and supplier engaged in the generation, delivery, and cross-border
trading of electricity. The Group is involved in the design and manufacture of power generation and
industrial equipment as well as hydroelectric power plant engineering. We are specialists in the hydro
power sector and related industry.
We build, own, and operate hydro power plants and electricity infrastructure in Central and Eastern
Europe. Along with our core business we have developed in-depth expertise in power distribution and
trading activities in different countries. We offer integrated solutions for hydroelectric power generation
equipment with unit output up to 350 MW.
BASIC FACTS:
Established in 1994 in Svitavy, the Czech Republic
Main focus in Central and Eastern Europe,
Black Sea and Caucasus
More than 9 thousand employees in 5 countries
More than 2 million grid customers
Total installed capacity 862 MW:
• 2 Hydro power plants in the Czech Republic
• 14 Hydro power plants in Bulgaria
• 15 Hydro power plants in Georgia
• 1 Gas power plant in Georgia
• 5 Hydro power plants and 2 Hydro power
plants under construction in Turkey
Several hydro power plant projects in development
Engaged in international power trading
Environmentally-friendly power generation over
3 TWh per annum
Supplier of technological equipment for hydropower
plants and pumping stations all over the world
Developing historical industrial tradition of
Central Europe
Promoting two famous brands worldwide –
Litostroj Power and ČKD Blansko Engineering
| 22

CZECH BUSINESS AND TRADE
www.energo-pro.com
23 |

RAILWAY INDUSTRY
Successful Development of Rail Transport
The present successful
development of rail transport
has been enabled thanks
to more than 200 years of
traditional development of
the Czech railway industry.
The former ČKD and ŠKODA
plants, together with a range
of other manufacturers, have
always been at the top of their
professions. The quality of their
products can be shown through
the large export.
trial branch. This long-standing tradition
is successfully linked to the present representatives
of the Czech railway industry,
who do not rely only on tradition but invest
significantly in the development of
new products, in the purchase of high
technologies and renewal of production
areas. This technological innovation is
a necessity to ensure the competitiveness
of this industrial branch.
This long-standing tradition is successfully
linked to the present representatives of
the Czech railway industry, who do not
rely only on tradition but invest significantly
in the development of new products,
in the purchase of high technologies
and renewal of production areas. This
technological innovation is a necessity to
ensure the competitiveness of this indus-
ACRI has been representing the Czech
rail manufacturing industry since 1995.
ACRI represents the joint interests of
the railway supply industry on behalf of
Czech institutions, rail operators, rail infrastructure
managers and via its membership
in UNIFE, also on behalf of EU
institutions. ACRI is the unique Centre
of Technical Standardisation acting in
the railway sector, involved in the transfer
of European technical standards to
the Czech national standards system.
The Association represents 50 Czech
companies, significant manufacturers
and suppliers of products and services
for rail transport. It represents engineering,
design, manufacture, maintenance
and refurbishment of rolling
stock, infrastructure, signalling and
other services. ACRI members currently
employ more than 21 000 people
in the Czech Republic and their
annual turnover is more than EUR 3.5
billion, of which exports account for
more than 56 %.
Our vision: The Czech Railway Industry
– a profit-making, flexible and highly
technically developed sector with many
years´ tradition, actively participating in
employment, economic growth and
development of the transport system
in the Czech Republic and worldwide.
Photo: ACRI archives
| 24

CZECH BUSINESS AND TRADE
safety when driving through a curve
A series of technologically innovative
products is gradually coming into serial
production. The main innovations in
this direction include a traction drive for
a three-system Emil Zátopek locomotive,
which places extraordinary demands on
power electronics. Traction converters
must adapt to the three-power systems.
The most difficult part of the research
concerns electromagnetic compatibility
and the suppression of interference of the
railway interlocking system in all countries
where this vehicle is to be operated.
CZ LOKO is a reliable partner for railway
transporters in terms of construction, modernisation,
repairs, and maintenance of diesel
locomotives and special railway vehicles.
SIGNALLING
AŽD Praha company is a significant manufacturer
and supplier of signalling, telecommunication,
information and automation
technologies. It is mainly focused on the rail
and road transport field, including telematics
and other technologies.
• CZECH RAILWAY INDUSTRY –
SUCCESS STORIES
ROLLING STOCK
ŠKODA TRANSPORTATION offers the
solution for the production and development
of low-floor trams, trolleybuses,
and hybrid vehicles for ecological urban
public transport. The company is
also focused on the production of locomotives
and trains of various concepts.
Škoda Transportation focuses on the improvement
and prediction of critical properties
for future products, such as noise
resistance, safety of traction drives, electromagnetic
and thermal calculations and the
subsequent optimisation of engines. Results
of the research are products with pivoting
bogies which have low-energy electric
wheel drives, thus reducing the maintenance
costs of vehicles and infrastructure.
Škoda has a technology workplace for
the development of synchronous motors
with permanent magnets – which are a vital
part of the traction drive of the ForCity
Alfa tram. These motors are world leaders
and enable the construction of lowbed
pivoting bogies with a direct drive
(without a gearbox). Each traction motor
is individually controlled from its own inverter,
and this allows the movements to
be individually controlled for each wheel.
Each traction container is designed for
one traction bogie and represents the total
utilisation of current high-performance
electronics. By means of quick communication,
it is possible to optimise passes
through a curve and achieve increased
Promising sectors with a high added value
– tradition of Czech industrial manufacture lasting more than 200 years
– the densest railway network in Europe
– every 6th Czech commutes by train to go to work (CER Yearbook)
– the railway is a meaningful, ecological, and economic, alternative to road transport
25 |

RAILWAY INDUSTRY
COMPONENTS
GHH-BONATRANS – premium supplier
of railway wheelsets and their parts. This is
a company with a history of more than 200
years, with delivery footprints in more than
80 countries worldwide. It represents an impressive
part of the history of wheelset design
and manufacture. Generations of true
experts continuously contribute to the evolution
of the wheelset. Respecting the past
but looking ahead, the pioneers of wheelset
manufacture produce premium solutions
for the railways of the world.
The development and manufacture of brake
systems for metro vehicles has been a major
part of DAKO-CZ activities.
PARS KOMPONENTY has extensive experience
in the manufacture of automatic plug
doors, electric sliding doors, swing doors
for drivers and inter-vehicle wing doors,
in addition to tilting and fixed windows
for subways and suburban trains, offering
high-technology products for the most demanding
clients and railway applications.
ŠKODA ELECTRIC offers development, production,
and integration of the propulsion
and control systems for various rail vehicles
i.e. metros, locomotives, EMUs, low-floor
trams, trolleybuses, and battery vehicles for
environmentally friendly public transport.
Photo: ACRI archives
| 26

CZECH BUSINESS AND TRADE
Škoda Electric also has experience with
PMSM motors, SiC semiconductors, TCMS
and system integration, so is a reliable partner
and technology leader in the field of
the propulsion system for rail vehicles.
AMiT is a supplier of industrial electronics
and reliable solutions for public and mass
transportation, industrial automation and
building automation. AMiT Transportation
is among the most important players
in Central Europe in the field of the
development and production of control
systems for transportation, mainly for railways
and rolling stock.
• PROSPECTS FOR THE CZECH
RAILWAY INDUSTRY
The Czech railway industry has tremendous
potential. Investment in this sector
will have a multiple effect on domestic
economic development. Specifically, it
will have a favourable impact on employment,
will improve the quality of transport
services and lead to a higher culture of
travel, while also raising the export performance
of enterprises. In general, Czech
railways will require considerable investments
in the next few years to attain the
desired standards. In particular, this means
investment in the development of the
railway infrastructure, in addition to the
completion of the railway corridors and the
modernisation of key railway junctions. We
must also not forget about regional railway
lines. To be competitive, we must fit
the main corridors with the ERTMS/ETCS
European train control system, modernise
freight corridors passing through the
Czech Republic, harmonise the costs of all
types of transport, invest in the modernisation
and purchase of new carriages and,
last but not least, start preparations for
the construction of high-speed lines that
will make the conventional lines available
for freight transport.
Marie Vopálenská
Association of the Czech Railway Industry
E-mail: vopalenska@acri.cz
M-KOVO s.r.o.
Ranov 143
588 41 Vyskytná nad Jihlavou
CZECH REPUBLIC
www.m-kovo.cz
Phone: +420 567 276 203
Engineering and locksmith´s producon
including welding
Surface nishing, zinc coang, blackening
Precision machining
27 |

PR
Storing Solution by Proman
The Czech company, Proman
s.r.o., is one of the most
important suppliers of all
types of racking systems in
the market, whose much
appreciated asset is that it
responds promptly and reliably
to all customers’ requirements.
“We´ll design the optimum
solution for your warehousing
space without delay, tailored to
fit your needs,” says company
director Pavel Nekut. The
firm, which started with
three people, today records
a turnover of around CZK 700
million per year, excluding
its foreign subsidiaries.
Flexibility and promptness,
however, are not Proman´s
only priorities. Over the 24
years of its activities at home
and in many other countries
the world over, the firm has
gathered valuable experience on
its way to becoming a supplier
of genuinely comprehensive
solutions for warehouses, from
A to Z, including “lifelong” care
for the racks. For this reason,
the firm can offer not only
high quality products, but also
top standard services. All this
augurs well for Proman´s future,
as Pavel Nekut predicts in his
replies to our questions.
Pallet racks, cantilever racks and shelving
racks supplied by your Company
are used in practically all sectors, such
as warehouses, the banking sector, and
State administration. What exactly can
you offer your clients? Wherein rests the
“secret” of your success?
Thanks to the wide spectrum of customers
and our original solutions, we can respond
to a wide scale of the needs of our customers,
old and new. Of special value is the
work of our excellent technicians, the main
creators of new solutions. Our great advantage,
of course, is also our forthcoming approach
to customers and efforts to provide
them with products and services to their
full satisfaction.
You want to become more widely established
in foreign markets. Why should
discerning customers cooperate specifically
with you?
A great advantage in the foreign competitive
environment is our domestic production,
where, in addition to competitive
prices, excellent workmanship and good
technical solutions, we have long experience
in foreign markets and our activities
in European markets is growing. We
are trying to maintain our great strength
and that is the emphasis on detail, which,
as we can see, most firms are losing with
growing pressure on quantity at the expense
of quality.
Which are the greatest recent achievements
of your Company you can be
especially proud of?
Among our recent large projects, special
mention should be made of 4PX Express
CZ, whose Distribution Centre we furnished
with our pallet and rack shelving systems.
This comprised some 30 000 pallet places in
the first stage, followed by another 17 000
in the second stage. In addition to the pallet
shelves, we supplied the Centre with
shelving solutions comprising some 16
000 shelves. The stores are used for Internet
trading. As regards long-term cooperation, I
would like to mention our projects for Dřevo-Trust
firms, whose sales rooms have been
supplied with our console shelves designed
specifically for storing atypical large-size
boards. Another great project is the delivery
of storage equipment for Maurice Ward in
Štěnovice, where Proman recently installed
pallet and console shelves on a surface area
of 14 000 sq. metres. A special project in
Proman´s portfolio is the delivery of stock
platforms (surface area of about 7 000 sq.
metres) and pallet racks with 33 000 pallet
places for SONY firm. An interesting job was
the moving of a store for Globus firm while
in full operation. Proman supplies Globus
with shelves for its supermarket stores and
its large central store.
What are your specific plans for the
development of your company?
The long-term objective of our company
is to supply our customers with a wide
quality range of products and services. We
want to continuously improve our services
and products and further expand to foreign
markets.
Do you participate in international trade
fairs? This year, for example, you were
the only Czech Company at the Intralogistics
Fair in Paris, which offered unique
products in the area of cantilever racks,
archive storage systems and steel platforms.
Can you give us more details?
The Intralogistics Fair in Paris is one of the
largest fairs in its category in Europe. It
opens up completely new markets to us
and provides opportunities to strike up
new relations and reinforce existing ones.
France is a big market, which, in addition,
has close links, for example, with Algeria
and Tunisia, as could be seen by the relatively
large number of visitors from those
countries. The visitors´ interest was attracted
by our mobile shelving racks, which
were installed in operational condition at
our stand. An important factor was that potential
customers could not only see, but
also try out our products.
Do you observe any major trend influencing
your business?
A major trend we have been observing recently
is the effort to accelerate the entire
storaging and picking up process, based on
a higher degree of automation and the use
of smart technologies in warehouse management.
It goes without saying that the
higher the sophistication, the higher the
costs. And that is why a high percentage of
our deliveries is still conventional racks.
| 28

CZECH BUSINESS AND TRADE
PROMAN s. r. o.
Za Pivovarem 830, 537 01 Chrudim
Tel.: +420 469 699 570, +420 469 622 280
e-mail: proman@proman.cz
Proman s.r.o. was established in 1994, in Chrudim. For the whole of its existence it has been a purely Czech company. From the very
beginning its specialisation has been the supply of a full range of racking systems. For its clients, the company designs racking systems
according to their demands, ensures their realisation and provides a warranty and post-warranty service.
The firm has its affiliations in Slovakia, Poland, Croatia, Bulgaria, Romania, and Hungary. Its products, however, can also be found in Serbia, Bosnia and
Herzegovina, Albania, Germany, Austria, and Ukraine. The company operates in about 20 European countries. Its products comprise all types of racking systems:
pallet racks
conventional stationary
drive-in and drive-through racks
gravitation
mobile
shelving racks
conventional stationary
gravitation
mobile
multilevel construction
cantilever racks
stationary
mobile
cantilever racks
automated
shuttle systems
The above systems can be supplemented according to the client´s
requirements and in accordance with the type of material to be stored.
One of the categories supplied is a mobile shelving rack suitable for
archives, libraries, hospitals, museums, etc. The deliveries designed for
museums in particular are widely diversified to meet the requirements
of the different objects to be stored. Therefore, the deliveries include not
only shelving racks, but also different types of accessories.
The multilevel construction is fixed on a chassis, which can be operated by
hand or by electric motor.
A limiting condition for the installation of these systems is the access into
the space where the shelves are to be installed. If the user has suitable
space for the installation of mobile shelves, the following can be a solution:
Rails – always hot dip galvanised
rails laid on an existing floor
rails laid on a false floor covered with chipboard and PVC
rails laid on the upper floor layers and a concreted over
Chassis – always painted with komaxit
Welded steel construction, usually divided. Inside the construction
are metal beams connected by a continuous bar for driving the wheel.
A chain drive installed in front under the cover transmits the driving
force to the wheels. The operator uses a control wheel. Each control
wheel has a fail-safe device against the spontaneous travel of the racks.
The actual storage racks are anchored into the chassis.
These racks can be supplemented with additional
elements, such as
drawers
pull-out shelves
systems for suspension board storage
folding tables at the front of the shelves
chassis locks
sealing elements (rubber, brushes)
Most of these elements are manufactured in the Czech Republic according
to our documentation, so that we are in a position to meet even the most
intricate requirements of the system users.
www.proman.cz
29 |

RESEARCH
Research Combined with Practice Bears Fruit
Research work focused on
both new technologies and
automation, and collaboration
with important players in the
market is essential for Czech
engineering if it wants to be
competitive. Here are two
important institutions which
have a lot to be proud of.
Negotiations on RCMT´s Collaboration
with Huawei
In June 2018, an 11-member delegation
of the Chinese firm Huawei held talks
with RCMT representatives on collaboration
in the area of mobile phone,
server and telecommunication technology
production. In the construction of
mobile telephones, manufacturers often
have to deal with problems such as
difficult-to-machine and new materials,
and this is where RCMT can offer Huawei
cooperation in research, focused on
their machining and functioning. Other
subjects discussed were, for example,
the increase in machining productivity
and automation of the mass production
of telephones and electronic devices.
The delegation was led by Mr Yu Meng
of the Huawei European Research Centre
in Düsseldorf. Part of the meeting
included the inspection of laboratories
and their equipment in RCMT premises,
with the presentation of research projects
on which RCMT cooperates with
industrial partners.
• RESEARCH CENTRE FOR
MANUFACTURING TECHNIQUE
AND TECHNOLOGY
The main objective of the Research Centre
for Manufacturing Technique and Technology
(RCMT) is to create in the Czech Republic
a professional research base for the
Czech engineering industry, to bring up
a new generation of young research workers
in this sector and be a well equipped research,
educational and training workplace.
Since 2012, the Institute of Manufacturing
Machinery at the Faculty of Mechanical
Engineering, Czech Technical University in
Prague has been working on a project of
the Centre of Competence – Engineering
Manufacturing Technology (CK SVT), which
is supported by the Czech Technological
Agency. The mission of the CK SVT project
is to raise the technical excellence, competitiveness
and production of the leading
manufacturers of engineering manufacturing
technology and the entire Czech engineering
sector, with the aim of bringing the
Czech Republic, currently occupying 13th
position in absolute engineering production,
within the “Machine Tools” sector on to
the world scale among the top ten. CK SVT
ensures long-term applied research and development
in the progressive hi-tech sector,
which turns out products of high complexity,
with high value added and high profit. CK
SVT is unique in that it strengthens the current
collaboration between leading manufacturers
in the sector and research centres
in the Czech Republic and, at the same
time, creates an environment supporting
the growth of students and experts with
the highest qualifications and erudition. The
CK SVT team comprises more than 80 experts
specialising in construction, development,
technical analysis and research. The
researchers focus on the development and
application of modern advanced simulation
methods, virtual testing, advanced machine
optimisation methods, drive control and
vibration damping, the use of unconventional
materials and structures, research
of new concepts of machines, advanced
monitoring and diagnostics of machine
tools, compensation of temperature errors
of machines, multi-axis machining technologies
and the minimisation of impacts of
machines on the environment.
Photo: RMCT archives
| 30

CZECH BUSINESS AND TRADE
• NETME CENTRE
NETME Centre is a technological integrator,
the aim of which is the innovation of engineering
in the Czech Republic. It assists in
the development of expert knowledge, the
aim of which is to ensure future growth and
long-term sustainability of the engineering
sectors. It employs more than 500 researchers.
The Centre, linking up with long-term
successful research activities of the Faculty
of Mechanical Engineering of the Technical
University in Brno, also cooperates with other
leading universities in the Czech Republic
and other countries. Nearly 40 % of its contracted
research is with foreign institutions.,
INDUSTRY 4.0
Since about 2010, the development of automation
in industry, accelerated by the
tremendous information technology potential
and high-speed computers, has been
termed as the Fourth Industrial Revolution,
or simply “Industry 4.0”. Where is research
in the NETME centre and at the Faculty of
Mechanical Engineering (FME) heading in
this dynamic sector? FSI has been working
on manufacturing machines with electronic
control and production lines created with
them since the 1970s, gradually integrating
advanced technologies and quality management
instruments into their development.
The following are the main elements on
which it concentrates its scientific and
research activities:
COLLECTION OF DATA FROM REAL
PRODUCTION ON THE PART
OF INDUSTRIAL PARTNERS
Intelligent production cannot do without
the development of knowledge systems focused
on the description of real interactions
between the machine, the operator, and the
environment, to find how they influence the
productivity of the machine and the quality
of production. This entails the long-term
collection of data and their evaluation, the
development of applications for data processing
and their storage on cloud or the
firm´s internal server.
DEVELOPMENT AND
CONSTRUCTION OF MACHINES
FOR THE 21ST CENTURY
Using the knowledge obtained from the
collection of real production data, it is
possible to adjust the construction of the
newly developed machines, integrate
built-in sensors in them, reduce the weight
or increase the rigidity of the construction
elements. With the help of the modular
concept of the machines and the open
standards, it is possible to rapidly re-configure
and integrate them more easily into
the digitalised enterprise.
CYBER PHYSICAL SYSTEMS
The development of cyber physical systems
(CPS) means connecting the computing
model of the machine and its physical
realisation to form one interactive whole,
which is controlled or monitored by computer
algorithms, its parts communicating
with each other and which can be visualised
in the virtual reality environment. This
makes it possible to simulate and visualise
in advance different conditions of production
on it and, on the basis of the results
obtained, raise the adaptability, efficiency,
functionality, reliability, safety, and usability
of such a machine.
VIRTUAL AND ENLARGED REALITY
The Centre´s focus is on the development
of applications for the visualisation of all
the relevant data of the manufacturing machine
that can support the decision-making
processes of the workers during the
whole life cycle of the product and on the
assistant visualisation applications connected
to the knowledge database, which
supply the workers with comprehensive
information and instructions concerning
their tasks in the production process.
MACHINE CONDITION
MONITORING, DIAGNOSTICS,
AND MAINTENANCE
The reliability and safety of the production
facilities depend on their maintenance.
The cyber physical system integration
in the course of its maintenance
makes it possible to continuously monitor
the condition of the machine and
use advanced techniques for the predictive
and pro-active maintenance of the
machine. The essentials are the built-in
sensors, analysis of the data from the
sensors, development of predictive algorithms
and advanced methods of
visualisation in the environment of enlarged
or virtual reality.
DEVELOPMENT OF NEW
MATERIALS AND TECHNOLOGIES
Another objective of NETME´s activities is
the research and development of advanced
metal materials, ceramics and composite
materials, usable in the construction of sophisticated
engineering applications in the
power industry and the manufacturing, automobile
and aviation industries.
ADDITIVE MANUFACTURING
Challenges linked with the EU low carbon
economy vision projected into the year
2050 and the current pressure to reduce
greenhouse gas emission lead to the development
of technologies that will ensure
greater efficiency of the machine time and
materials used combined with total energy
consumption reduction needed for the
manufacture of one piece. Additive manufacturing
will also allow to better meet the
individual requirements of customers.
MODELLING, SIMULATION AND
OPTIMISATION OF PRODUCTS AND
THE MANUFACTURING PROCESS
In this area, the Integrator focuses on the
development of computing machine
models and the application of neuron
networks for the prediction of the manufacturing
machine and production line behaviour.
On the basis of data collected from
the production process, the use of applied
mathematical disciplines (e.g. the front or
the game theories) and the analysis of the
manufacturing equipment, it is possible to
optimise the production plan, analyse the
influence of unexpected breakdowns and
plan maintenance stoppages.
31 |

LOGISTICS
Czech Logistics Market Is Keeping Pace with Innovative
Solutions and Benefits from It
What is the current condition of
logistics in the Czech Republic?
“Modern technologies are being
introduced much more readily
than before. Let us take, for
example, picking operations
where the aim is to get the
information in front of our eyes
while at the same time having
the hands free. Consumer
electronics developers expect this
technology to replace modern
smartphones with the help of
“smart glasses” fitted with 3D
depth sensors allowing their
carriers to physically control the
visualised virtual picture,” says
Václav Cempírek, President of the
Czech Logistics Association.
Can you give us an outline of the development
of the Czech logistics market?
Technical development, expanding markets
and growing population boost demand
for products and services. This
demand is naturally putting pressure on
production and consequently on logistics.
This pressure may lead to higher production,
the need to practise just-in-time
deliveries, ensure efficient manipulation,
automation, massive digitalisation, etc. This
necessitates the use of ever new innovative
solutions making the processes more
economical, friendlier to the environment
and more transparent and robust.
Logistics plays a great role in the areas of
output, profit and competitiveness. It is of
paramount importance for the creation of
values and is a source of sustainable competitive
advantages. That is why logistics is
considered one of the strategic priorities.
Automation in logistics often makes it possible
to redistribute the sources and raise
efficiency, which in turn may allow labour
cutbacks. This, however, may involve the
risk of losing important information and the
know-how of those made redundant. Automation
can be successfully used in areas
involving physical stress or work in an unpleasant
environment. As internal logistics
often comprise a large number of manual,
repetitive operations, involving the lifting of
heavy loads and long transport distances, it is
more advantageous to improve the working
environment with the use of better ergonomy
as one of the main advantages of
automation in internal logistics. That is why
automated loading and unloading systems
are increasingly being used, with autonomously
controlled trolleys, carousels, conveyer
belts, and industrial robots.
The operation of these automated systems
is supported by different forms of
communication, data processing, monitoring
and control systems, including
automatic identification and recognition
applications, such as bar code reading systems
and the RFID system.
The Czech logistics markets are keeping
pace with these innovative solutions and
benefit from them.
You are President of the Czech Logistics
Association. Can you tell us what tasks
your Association has set itself for 2018?
We want to become a worthy partner and
a good institution for our members. That
is why we would like to organise expert
seminars and excursions and seek support
for our participation in trade fairs featuring
logistics. Later this year, we´ll organise
seminars on “Logistics in Viniculture” and
“Logistics in Vegetable Growing”. Both seminars
will take place in South Moravia. We
are preparing a list of firms which we´ll be
visiting and which will be put on our website,
together with the programme: (http://
www.czech-logistics.eu). In September, we
are organising an expert excursion to the
Railway Testing Centre at Cerhenice, where
test drives of conventional and unconventional
rail vehicles are undertaken.
You are also Vice-Rector for Education
at the College of Logistics. What can the
graduates of your College offer would-be
employers?
Our graduates have comprehensive
knowledge of transport logistics, service
logistics, information management
and tourism, and are much demanded
in the labour market across different
sectors. Our Bachelor´s and Master´s degree
courses prepare experts in specific
multisectoral logistics and ensure the
College’s full-fledged status among other
technical higher learning institutions.
The courses and subjects prepare students
to meet the requirements in the
labour market as managers. The students
are prepared to organise the targeted
movement of people, information, materials,
and intermediate and final products
to the place of consumption.
Employers appreciate the fact that graduates
are prepared for a systemic approach
to solving problems and creative thinking
oriented towards technical originality and
practical usability of the required solutions.
Photo: Cushman & Wakefield archives, Václav Cempírek archives
| 32

CZECH BUSINESS AND TRADE
Wherein can you see opportunities or
dangers in logistics?
Logistics is currently experiencing good
times, because the economy is growing and
so is demand for the management of material
flows into production and the physical
transfer of products to consumers. Global
trading opportunities open up great opportunities
to firms whose business it is to
provide courier, express and parcel delivery
services. In distribution, logistics is directly
influenced by the depth of assortment, i.e.
the number of different products in the particular
sector. The customer has the choice
of buying similar products from different
manufacturers. In the case of natural persons,
the volume of goods ordered from
e-shops is increasing and their deliveries
to consumers are partly responsible for the
growth of road transport.
Logistics is negatively influenced by an inadequate
transport infrastructure. This is probably
the greatest threat. The basic motorway
network and the corridors are not completed.
Neglected maintenance during the past
20 years has led to various traffic restrictions
due to repairs and the modernisation of the
infrastructure. Detours are becoming more
frequent and are often in a bad condition,
so that the full loading weight of the vehicles
cannot be used, speed must be limited,
etc. All this incurs additional costs to haulers.
This situation can be described as business
restriction, not to mention the increase in
fuel prices and the envisaged introduction
of toll payment on certain up to now free
first-class highways used in long-distance
and interstate haulage.
The latest trend is the growing requirements
for storage halls by their renters.
What is currently most in demand?
In the case of industrial property – new
logistics centres – renters are increasingly
calling for built-to-suit projects, realised so
as to precisely meet clients’ needs. Developers
select localities in the Czech Republic
for domestic and foreign clients, precisely
meeting their requirements, and build
logistic centres there ready for use. In the
case of these projects, the client designs
the structure to precisely meet his specific
requirements, including the technological
equipment and construction modifications
of the interiors of the halls. In 2017, the
largest area of completed surfaces, approximately
696 000 sq. m, was offered for immediate
use in the industrial property market
since the 2008 economic crisis. In spite of
the large number of completed surface areas,
the vacancy rate at the end of the year
showed a decline, dropping to 4.1 %, i.e.
0.6 % less than in 2016. At the end of 2017,
the total volume of modern A-class industrial
property in the Czech Republic designed
for rent increased to 6.98 million sq. m.
There was a very good start to the year 2018
and there have been no signs of any slowdown.
However, as a result of the situation
where demand surpasses supply, rentals are
expected to increase.
Do you observe any trends influencing
logistics services in the Czech Republic?
Modern technologies are being introduced
much more readily than before. For
example, as regards picking operations,
the aim is to get the information before
33 |

LOGISTICS
our eyes and at the same time to have
the hands free. Developers of consumer
electronics expect that in future this technology
will substitute for today’s modern
smartphones by using smart glasses fitted
with 3D depth sensors, enabling the person
wearing them to physically control the
visualised virtual picture. Development
is forging ahead. For example, eye lenses
are being tested that will be controlled
by wireless communication between the
smartphone and blinking.
Drones – unmanned aerial vehicles – can
be remote-controlled and fly autonomously
according to programmed plans,
or with the help of dynamic autonomous
systems working through implemented
sensors. Today, drones are used in activities
linked with inventorying.
The greatest challenge for logistics is the
fourth industrial revolution, the undeniable
climax of the Information Age, where the
real and the virtual worlds are very rapidly
getting ever closer to each other. This process
will lead to a concept defined as the
“Internet of Things (IoT), which describes
the future where everyday physical objects
will be connected to the Internet and will
have a digital voice, so that they will be able
to identify themselves, communicate and
cooperate with other devices.
Last but not least, this is a platform of information
and communication technologies
designed for monitoring output in real time
along the entire supplier chain, assisting
firms to foresee all the potential disruptions
of availability in real time by means of
alarms. Maximum visualisation, for example
of stock movement, is a key requirement for
supply chains. Logistic service providers are
strengthening their competitiveness by automatic
order picking in the stores. Efficiency
can also be increased by the reorganisation
of key logistics processes.
What are your expectations for this year
in your line of business?
This year, logistics will also be doing well
in transport, as the evaluation of current
overall and foreign demand is practically
unchanged in comparison with 2017. The
finished product stock indicator has stayed
at the same level for three years running.
A positive factor is that entrepreneurs in
industry are expecting production to be
growing faster in the next three months.
Employment is approximately the same
in month-on-month comparisons and the
expected development indicators for the
entire economic situation until the end of
the year are showing positive values. Confidence
in the industry sector is higher in
comparison with 2017.
How do the other states in the CEE region
compare in logistics and transport?
The most attractive logistics locality in CEE
is Central Poland. The first five localities in
the rating are scattered all over the region,
each of them being situated in a different
country. Istanbul, for example, ranks 2nd,
Prague 3rd, Bucharest 4th, and Budapest
5th. These results are part of a comprehensive
report called “Expansion of the
logistics properties network”, compiled
by Prologis. The main Central and Eastern
European attractiveness factor is low costs
(e.g. labour and property costs). The development
of the infrastructure in those
countries, however, does not meet the
economic development requirements.
Photo: www.bigstockphoto.com
| 34

CZECH BUSINESS AND TRADE
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35 |

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| 36

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37 |

LOGISTICS
Supply of Industrial Properties Will Further Increase
The supply of industrial
properties will increase by
a large margin. In 2018, the
supply of industrial properties in
the Czech Republic will increase
by 10 %, according to the
Q4/2017 Developer Companies
study, compiled by the CEEC
Research analytical company in
collaboration with KPMG Czech
Republic. In Prague, the supply
will increase by 5.2 %. Demand
for industrial properties outside
the capital will rise by 8.3 % on
average. The demand will be
boosted especially by the need
of existing firms to expand. The
greatest demand for industrial
development is shown by
foreign investors.
Most developers foresee that the prices
of land for industrial development will
increase by an estimated 9 %, and so will
rental prices. Customers usually rent industrial
spaces for periods of three to five years.
Developers expect that in 2019 the supply
of industrial properties will slow down its
growth to 5.8 and 3.6 % respectively. “The
development of the industrial development
market and the industrial building
sector in general is likely to be influenced
by support given to investment projects. It
is to be expected that in coming years this
system will be targeted towards supporting
higher value-added projects, such as
research and development centres, testing
and technological centres, and sophisticated
manufacturing plants,” says Jan Lidral,
Marketing Manager Central Europe of Takenaka
Europe GmbH.
“Demand for industrial spaces is certain to
increase. The question, however, is whether
sufficient projects will be prepared in time because
of the lengthy and complicated building
permission proceedings,” says Jan Palek,
Country Manager Czech Republic & Slovakia
for Goodman. David Plzák, Development
Manager of Segro CR, s.r.o., agrees and says:
“In general, supply will still be growing, but
in some localities (especially in Prague and
environs), the supply will be stagnant for the
lack of new development surfaces.”
The prices of land for the construction of
industrial halls have risen by nearly onetenth
(9 %) over the past year, according to
86 % of developer company directors. Only
14 % of developer firms had the experience
of the prices remaining unchanged. This is
one of the reasons why developers expect
the prices of rentals in the area of indus-
Photo: CTP archives
| 38

CZECH BUSINESS AND TRADE
of 22 200 sq. m for Petainer in CTPark Aš.
Only 2 % of the total volume of newly completed
spaces in the first quarter of 2018
were built on a speculative basis. The total
surface area of modern warehousing and
industrial spaces in the Czech Republic
amounts to 7.18 million sq. m.
• PROJECTS UNDER
CONSTRUCTION, RENTALS
At the end of the first quarter of 2018, altogether
505 100 sq. m of warehousing and
manufacturing surfaces were under construction,
39 per cent of which are situated
in Prague and its environs. In the first quarter
of 2018, work began on the construction
of 155 700 sq. m of halls. The highest rent
for industrial and logistic properties (prime
headline rents) in the Czech Republic remained
stable in the first quarter of 2018,
ranging around EUR 4.50/sq. m/month.
• TOTAL SUPPLY OF INDUSTRIAL
SPACE IN THE CR
In the first quarter of 2018, the total surface
area of modern industrial spaces
designed for rent in the Czech Republic
rose to 7.18 million sq. m. In the first
quarter of 2018, some 212 700 sq. m of
new surface area was completed. The
vacancy rate was 4.20 %, 45 base points
more than in the previous quarter. Some
304 300 sq. m of modern industrial space
ready for immediate move-in is currently
available in the market.
• IMPORTANT RENTALS
The largest newly published transaction in
the first quarter of 2018 was the renting of
14 200 sq. m for the Stavebniny DEK retail
company in Prologis Park Prague Úžice. The
speculative building covering an area of
28 300 sq. m was leased immediately after
its construction had begun. “The renting of
this speculative building so shortly after its
construction had started, shows the high
degree of demand for space in the region,
which is rapidly becoming a new logistic
hot spot on the territory of Prague and its
environs,” says Martin Baláž, Director for
Leasing and Development at Prologis for
the Czech Republic and Slovakia. Prologis
Park Prague-Úžice is a modern logistic
park situated on the D8 motorway leading
to Germany, just nine kilometres north of
Prague. Two first-class buildings cover-
trial properties to increase in the next two
years. This year, 90 % of developer companies
are expecting a price increase, and in
2019 an increase is expected by a full 100 %
of developer company directors. The average
net yield from industrial property renting
is 8.7 %
• NEW SPACES COMPLETED
IN THE 1ST QUARTER OF 2018
Altogether 181 900 sq. m of warehousing
area were completed in the first quarter
of 2018 in 13 industrial parks in the Czech
Republic. The largest completed projects
include the distribution warehouse for
Makro company in CTPark Prague North,
occupying an area of 53 000 sq. m, the
enlargement of the existing hall for DHL
by 31 900 sq. m in Panattoni Park Cheb
and a new warehouse covering an area
39 |

LOGISTICS
ing an area of 97 800 sq. m are situated
in the Park, which has a potential for the
construction of another 40 850 sq. m of
surface area. In mid-2018, the buildings of
Prologis, just as all the other new structures
in Central and Eastern Europe, will undergo
a sustainability test within the framework
of BREEAM accreditation.
• ARETE INVEST IS PLANNING TO
ENLARGE THE INDUSTRIAL PARK
Arete Invest, too, is preparing to enlarge
the Lovosice Industrial Park. In March 2018,
this rapidly growing Czech real estate investment
fund signed a new five-year lease
contract with the Fiege logistic company
for the rental of warehousing facilities in
Arete Park Lovosice. In April, the company
enlarged its warehousing surface area by
7 500 sq. m more to a total of 9 600 sq. m.
“By signing the new lease contract, we have
stabilised our logistic park in Lovosice for
five more years. At the same time, we are
preparing the ground for the development
of 11 000 more sq. m of storage and manufacturing
surfaces,” says Tomáš Novotný,
member of the Investment Committee of
Arete Invest CEE II Subfund, responsible for
asset management. On the newly rented
surface, Fiege company will be serving the
company of Automax, which is relocating
its inflammable materials and chemicals
store from its branch in Brno. The enlargement
took place within the framework of
the existing logistics building previously
rented to the NCH company. The German
company, Fiege, is one of the largest logistic
firms in Europe. It employs more than
12 000 people in 15 countries worldwide.
Arete Park Lovosice is situated in a strategic
locality at the exit from the D8 motorway
near the German border. The high demand
for renting logistic space in this locality
has called for the expansion of the entire
Park. The current rentable surface area of
18 500 sq. m has an occupancy rate of 92 %.
• ACCOLADE OWNS MORE THAN
400 000 SQ. M OF INDUSTRIAL
PROPERTY
Accolade has already acquired more than 400
000 sq. m of industrial property. The Accolade
fund owns 20 rental buildings for light industry
and logistics in eight parks in the Czech
Republic and Poland and is finalising the acquisition
of another property. When this acquisition
has been completed, the Fund will
be the proprietor of more than 400 000 sq. m
of industrial property, worth an aggregate of
seven billion Czech crowns. All its properties
have a 100 % occupancy rate. “Less than four
years since its establishment, Accolade has
become the fastest-growing owner of industrial
property in the region,” says Milan Kratina,
Chairman of the Board of Accolade Industrial
Fund. “For comparison, the Fund started the
year 2017 with a real-property portfolio comprising
an aggregate of 128 000 sq. m of rentable
surface. Together with the transactions
which are now in the pipeline, it will own industrial
property covering an area of 404 000
sq. m worth EUR 274 400 000,” Kratina adds.
Its most recent acquisition is a building with
a surface area of 26 564 sq. m in Ostrov near
Stříbro. It has been fully rented to KION, which
is running one of the world´s most up-to-date
engineering works there. Its core programme
is the manufacture of robotic equipment for
automated warehouses. KION is the renter of
a neighbouring building also belonging to
the Fund, where it manufactures logistic carts.
Both buildings have been leased for 15 years.
A deal to purchase 32 000 sq. m of surface in
the industrial park in Cheb is awaiting signing.
The property is an extension of a building already
located in the park and owned by the
Fund, where DHL operates an Esté Lauder
cosmetics centre. The original property is also
rented to DHL as a service logistic centre for
Sky Deutschland. The expansion of the centre
for Sky Deutschland covers a surface area
of approximately 2 000 sq. m. The remaining
30 000 sq. m will serve Estée Lauder as a new
distribution centre. Last year, the Fund also
purchased the second largest industrial rental
building in the Czech Republic, which covers
a surface area of 73 000 sq. m, leased to Tchibo
in Cheb as a service facility for its clothing and
accessories e-shop. The Fund has made its first
entry into the Prague logistic market, where it
acquired a building covering a surface of 1 000
sq. m. In Poland, the Fund has invested in industrial
parks in Lublin, Stettin, and Bydgoszcz.
• THE P3 INDUSTRIAL
DEVELOPER PURCHASED
A LOGISTIC PARK IN LOVOSICE
FROM HB REAVIS
P3 Logistic Parks acquired new property
in the Ústí Region – the P3 Lovosice
Cargo – and is now the renter of the
entire park. P3 uses the surface area of
43 500 sq. m as its base, including offices.
The new park is situated not far from the
container transport international terminal,
to which it is directly connected by
a railway siding. The existing P3 Lovosice
Park, the purchase of which the company
announced in August 2017 and for
which it already found the first renter in
November of the same year, is situated in
the vicinity of P3 Lovosice Cargo. When
the P3 Lovosice has been completed, P3
will own more than 168 000 sq. m in the
region for warehousing and light production
in its two parks. These industrial
parks could create several hundred new
jobs in the Ústí Region. Good availability
of labour adds largely to the attractiveness
of both P3 parks, considering the
labour supply problems experienced by
most companies on a long-term basis.
The parks are also easily accessible to
workers, thanks to the nearby bus and
railway stations.
Photo: Cushman & Wakefield archives
| 40

CZECH BUSINESS AND TRADE
The Brno Industrial Market is Experiencing
a Relatively Great Boom
The Brno industrial market is experiencing
a relatively great boom. The new industrial
development projects are a continuation of
the recent boom in administrative building
construction in Brno. The projects are prepared
by important international firms as
well as local developer groups. Important
clients have chosen Brno as an integral
part of regional expansion. A characteristic
feature of the supply of commercial
industrial property in the environs of the
Czech Republic´s second largest city is the
long-term dominance of the CTP developer
company. The surface area of its parks in
Brno is more than 780 000 sq. m. VGP, the
second largest developer of national significance,
controls only less than 32 000 sq. m.
According to the 108 AGENCY real estate
consulting company, however, a change
awaits Brno as regards industrial construction,
in connection with the notified arrival
of important developers led by Prologis
and Accolade. “Strengthening competition
between the developer groups will create
a highly competitive environment, which
will bring benefit to both the existing and
the new renters in the form of better leasing
conditions,” says Marek Sýkora, 108 AGEN-
CY´s consultant, specialising in the South
Moravia Region. The American developer
company, Prologis, is preparing a completely
new logistic compound in the locality
close to the D5 motorway near Syrovice. Its
plans provide for the construction of three
halls in the locality on a surface area of approximately
90 000 sq. m. Another logistic
zone could arise in the vicinity of Brno Airport
in connection with last year´s entry
of the important Czech developer group,
Accolade, into the Letiště Brno (Brno Airport)
Company. Local developers, too, are
showing interest in building new industrial
parks. An example is the project of a new
park in Rosice, where the construction of
halls covering an area of up to 9 000 sq. m
is to begin next year at the latest. The exclusive
representation of this project has been
entrusted to 108 AGENCY. The new transactions
indicate the growing interest of clients
in Brno and its environs. For example, Tamda
Foods is renting another unit in CTPark
Brno, covering a surface area of 1 723 sq. m,
in continuation of its expansion started by
its announced construction of a complete
distribution centre in Prague´s Hostivice district
to cover an area of 20 000 sq. m. Other
interesting transactions are the renting of
space for Bravo Europa, which will be using
an additional 6 700 sq. m in the M7 Ivančice
Industrial Park, and the renting of another
1 800 sq. m of surface by Rental PRO in the
Pozemstav Park. In year-on-year comparison,
before the end of the first quarter of
2018, 108 AGENCY had already mediated
80 % of the volume of transactions mediated
in the whole of 2017. Those transactions
included, for example, the renting of 3 000
sq. m of surface area for the important DSV
logistic company and 3 524 more sq. m of
distribution space for the Rohlík.cz company.
41 |

PR
New Machine from Varnsdorf
TOS VARNSDORF a.s., a company
located in the north of the Czech
Republic, in the foothills of the
Lužické hory Mountains, is this
year marking 115 years since its
founding. Its core programme is
the development, manufacture,
sale, and servicing of machine
tools, specifically horizontal
boring and milling machines,
used for the machining of
work pieces in sizes of from
1 cu. m with final production
precision of parts at the level of
hundredths of a millimetre.
WHR 13 Q machine
Each year, the company presents at least
one novel item, usually during the Customer
Days, which have become a popular and
widely visited event and an opportunity to
present products using interesting technologies
in full operation. Three years ago,
the company presented a big table-type
machine, WRD 180/200 H, in full workload,
fitted with hydrostatic guidance on all the
linear axes. This principle enables the construction
of the heaviest machines, for the
time being with a 200 mm diameter of the
working spindle. One year before, it presented
its WHR 13 (Q) machine, derived from
the best-selling WHN 13 machine, with the
difference being that it is fitted with a slide
ram. In autumn 2015, the company´s light
horizontal boring and milling machine, WRD
13 (Q), also derived from the above-mentioned
WHR 13 (Q), had its world premiere
at EMO, the largest machine tool trade
show. Another new machine presented recently
is the WHtec 130 machining centre,
which is already in regular operation in the
firm. Last year, a new generation WHT 110 C
machining centre was presented at the following
EMO trade show. This machine, too,
is already in full operation. The concept of
these new machining centres makes it possible
to extend the offer also to other segments
of the market, as it makes the use of
carouseling possible.
The above-mentioned new machines actually
comprise the entire range of manufactured
machines, because the company´s
focus is on table-type horizontal boring and
milling machines, desk-type horizontal boring
and milling machines, and horizontal
machining centres.
Last year´s successful premiere of the new
series of the WHT machining centres was
followed by the presentation of another
member of the new machine tool series,
the WHT 130 C, which had its world premiere
at the TOS Customer Day in June. This
is a horizontal machine tool, suitable for
the most demanding operations requiring
precise boring, thread cutting, carouseling,
and milling. Machines of the WHT series
can be designed as machining centres with
a wide range of auxiliary devices, such as
automatic technological pallet changer,
special accessories, auxiliary carousel tables
and a number of other devices meeting the
requirements of even the most demanding
applications in sectors such as the aviation
industry, the energy industry, earthworks,
the oil industry, and general engineering.
These machines are suitable for both piece
and serial production.
The new machine tool and machining centre
series was developed on request from
customers for modern production. After
nearly six years of development, which comprised
first the development of the spindle
units, followed by the frame and finally the
application of auxiliary devices, technically
unique machines have appeared in the
market, whose performance, multifunctionality,
operational convenience and unique
design signify unique value added for customers.
The priorities of these machines are
their performance, universal use, multifunctionality,
easy operation and service, and
integration of the Industry 4.0 principles.
The properties and capabilities of the new
machining centres from Varnsdorf greatly
increase the possibilities of metalworking.
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