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Automotive Fact Pack

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  • 1. THE AUTOMOTIVE AND CONSTRUCTION EQUIPMENT INDUSTRY CZECH REPUBLIC Fact Pack Swedish Trade Council in the Czech Republic 2006
  • 2.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
    • Czech Construction Equipment Industry
    • Recommendations
    • References
    CONTENT
  • 3. THE MANUFACTURING INDUSTRY IN THE CZECH REPUBLIC IS WORTH ABOUT 2/3 OF THE SWEDISH MANUFACTURING INDUSTRY - the automotive industry has a dominant position
    • The total turnover of the Czech manufacturing industry is SEK 914 billion
      • the Swedish manufacturing industry’s turnover is SEK 1 357 billion
    • There are approximately 8 200 companies within the manufacturing industry in the Czech Republic
      • 1.4 million employees
    • The automotive, electrical and optical equipment industries are traditionally strong
    • The average labor cost for an industry worker in the Czech Republic is SEK 43 per hour
    5 largest manufacturing industries in the Czech Republic Billion SEK The automotive industry amounts to 15.4 % of the total manufacturing industry Source: Ministry of Industry and Trade, Confederation of Finnish Industries
  • 4.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
      • Passenger Cars
      • Commercial Vehicles
      • Suppliers
    • Czech Construction Equipment Industry
    • Recommendations
    • References
    CONTENT
  • 5. THE CZECH AUTOMOTIVE INDUSTRY TOTALS SEK 155 BILLION - the industry grew by more than 24 % in 2005 Vehicles and engines SEK 58 billion Trailers and semi-trailers SEK 2 billion Components and accessories SEK 95 billion billion SEK Total production Automotive industry in the Czech Republic Growth is driven mainly by exports Source: Czech Ministry of Trade, Czech Statistical Office, HN, July 19, 2006 * Annual average exchange rates provided by the Swedish Riksbank: year Production Vehicles and Engines in the Czech Republic
  • 6. OVER 600 000 VEHICLES ARE PRODUCED IN THE CZECH REPUBLIC - from which more than 500 000 vehicles are exported each year VEHICLE MANUFACTURERS LIGHT TRUCKS ( 1,200 vehicles)
    • 3 manufacturers
      • Karosa (1,900)
      • Ekobus (50)
      • SOR Libchavy (300)
    BUSSES ( 2,200 vehicles) HEAVY TRUCKS ( 2,100 vehicles + 2,500 trailers)
      • (Weight > 6 t)
    • 2 manufacturers
      • Tatra (1,500)
      • Avia (500)
    • Trailer manufacturers
      • Schwarzmuller (1,400)
      • Panav (1,000)
      • Metaco Bo. Br (200)
    COMMERCIAL VEHICLES (8,000 vehicles) PASSENGER CARS ( 610,000 vehicles)
    • 2 manufacturers
      • Skoda Auto (493,000)
      • TPCA (104,000)
    Source: Czech Automotive Industry Association (AIA)
      • (Weight < 6 t)
    • 2 manufacturers
      • Skoda Auto (1,200)
      • Magma (50)
  • 7.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
      • Passenger Cars
      • Commercial Vehicles
      • Suppliers
    • Czech Construction Equipment Industry
    • Recommendations
    • References
    CONTENT
  • 8. THE PASSENGER CAR PRODUCTION IN THE CR IS EXPECTED TO DOUBLE IN 5 YEARS TIME
    • After the slowdown in 2003 (mainly due to economic stagnation in the EU) the passenger car production has been steadily growing in the CR
      • A record increase of 34% in 2005
      • TPCA (Toyota Peugeot Citroen Automobile) started production in their new plant last year
      • Booming exports of Skoda Auto
      • In May 2006 Hyundai signed a deal on the construction of a manufacturing facility near Ostrava -> expected annual output: 300 000 vehicles
    Passenger Car Production in the Czech Republic Vehicles * *) Estimated production figure Development the last 5 years Source: Press, HN, Automotive Industry Association
  • 9. Source: Skoda Auto, TPCA PURCHASE DECISIONS ARE MADE IN THE CZECH REPUBLIC Passenger Cars Passenger cars Passenger cars Business Kolín, Czech Republic (Joint venture) 3.000 TPCA HQ, Mlada Boleslav, Czech Republic (By German management) 26.700 Skoda Auto Purchase decisions Employees Manufacturer
  • 10. THERE ARE 4 CAR MANUFACTURING PLANTS IN THE CZECH REPUBLIC - TPCA plans to reach a production level of 320,000 cars annually Source: Skoda Auto, TPCA, Czechinvest , Hospodarske noviny (HN) Vrchlabí Kolín The TPCA plant is the most modern Toyota plant in the world Prague Mlada Boleslav Kvasiny Nosovice Estimated 20 09 300.000 / year Nosovice Hyundai Peugeot 107 Citroën C1 Toyota Ayygo Octavia Fabia Octavia Skoda Superb Models and focus 35.000 / year 35.000 / year 35.000 / year Kolín TPCA 136.000 / year 226.000 / year 59.000 / year 20.000 / year Mladá Boleslav Vrchlabí Kvasiny Skoda Auto Production volume Plant Manufacturer
  • 11. Source: CzechInvest, European Commision, AIA, Press
    • Arrival of new foreign investors
      • Lower production costs , skilled and inexpensive labor force
      • Proximity to West European markets
    • International expansion of Skoda Auto
      • New production plants in Russia and China
      • Rapid growth in exports
    R&D Competition and prices Globalization
    • Fierce competition on the Czech market
    • Falling sales of Skoda in the CR; Booming imports of second-hand cars; Increasing share of (high-end) foreign vehicles
    • Price reductions: 12,5% decline between 1996 and 2004*
    • Solid automotive industry and related institutions offer an attractive R&D area
      • 9 automotive-related university faculties
      • R&D ranges from dynamic systems to chemical technology
      • Skoda Auto, Porsche, and Toyota have R&D activities in the CR
    THE CR IS BECOMING A FAVORITE LOCATION FOR FOREIGN OEMS - Hyundai plans to invest € 1,3 bn in a new production plant Trends within the Czech passenger car industry *) EU- average
  • 12.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
      • Passenger Cars
      • Commercial Vehicles
      • Suppliers
    • Czech Construction Equipment Industry
    • Recommendations
    • References
    CONTENT
  • 13. HEAVY TRUCK PRODUCTION IS DECREASING DUE TO FINANCIAL DIFFICULTIES
    • Buses
      • Strong production growth fuelled by stricter emission norms (Norm Euro 4: valid from 2006-10-01) and ageing fleet of transport companies
      • Karosa became the largest bus factory within Irisbus Group
    • Trucks
      • Falling production of heavy trucks due to bad management and financial problems of foreign owners (Daewoo -> Avia and Terex -> Tatra)
      • Bankruptcy of smaller Czech truck manufacturers Liaz and Praga
      • Small producers switched to the provision of repair services
      • Skoda Auto reduced light truck production in order to focus on passenger cars
    Commercial Vehicle Production in the Czech Republic Development the last 5 years Vehicles Source: AIA, HN, Ekonom
  • 14. Source: Ekobus, Magma, Skoda-Auto, Tatra, Avia, Schwarzmuller, Panav, Metaco, Karosa, SOR Libchavy : THE MAJORITY OF THE PURCH A SE DECISIONS ARE MADE IN THE CZECH REPUBLIC Commercial vehicles Libchavy, CR Busses 400 SOR Libchavy Zebrak, CR, Haibach bei Scharding, Austria Trailers and semi trailers 100 Schwarzmuller Senice na Hane, CR Trailers and semi trailers 400 Panav Brandys n.L.,CR Trailers and semi trailers 40 Metaco Mlada Boleslav, CR Light trucks 26.700 Skoda Auto Brno, CR Light trucks 60 Magma Alficar Busses Busses Heavy trucks Heavy trucks Business Prague, CR 200 Ekobus Vysoke Myto, CR 1.600 Karosa Prague, CR 800 Avia Koprivnice, CR 2.200 Tatra Purchase decisions Employees Manufacturer
  • 15. THE COMMERCIAL VEHICLE INDUSTRY IS SPREAD OUT OVER THE CZECH REPUBLIC Source: Ekobus, Magma, Skoda-Auto, Tatra, Avia, Schwarzmuller, Panav, Metaco, Karosa, SOR Libchavy Česká Lípa Koprivnice Prague Vysoke Myto Libchavy Brandys n.L Brno Senice na Hane Zebrak Mlada Boleslav 1.200 / year Light trucks Mladá Boleslav Skoda 1.500 / year Heavy trucks Off and on-road vehicles Special vehicles Tractors Tippers Koprivnice Tatra 900 / year Platform trailers Tipping trailers Semi trailers Senice na Hane Panav 200 / year Platform trailers Container trailers Tipping semi trailers, etc. Brandys n.L Metaco 1.900 / year City buses Intercity buses Touring coaches Minibuses Vysoke Myto Karosa 50 / year Ecological buses Česká Lípa Ekobus City buses Intercity buses Tourist coaches Trailers and semi trailers Heavy trucks Tractors Tippers Light trucks Models and focus 250 / year Libchavy SOR Libchavy 1.400 / year Zebrak Schwarzmuller 600 / year Prague Avia 50 / year Brno Magma Alficar Production volume Plant Manufacturer
  • 16. Source: AIA, HN, Ekonom
    • Ownership changes in largest truck manufacturers
      • Acquisition of Avia by the Indian company Ashok Leyland (60% of shares)
      • Sale of Tatra to a group of American and Czech investors
      • Liaz bought by a Czech businessmen and renamed Fax
    Success factors Domestic production Restructuring
    • Continuing boom in the bus production
    • Expected recovery of heavy truck production with the entry of new investors
    • Stagnation in the light truck sector
    • Flexibility and innovations
      • launch of new models complying with the EU (environmental) directives and meeting specific customer demands (e.g. wider buses in Scandinavia)
    • Price competitiveness
      • low production costs combined with advanced technical expertise and know how
    THE COMMERCIAL VEHICLE INDUSTRY HAS BRIGHT PROSPECTS - thanks to booming bus production and restructuring in the heavy truck sector Trends within the Czech commercial vehicle industry
  • 17.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
      • Passenger Cars
      • Commercial Vehicles
      • Suppliers
    • Czech Construction Equipment Industry
    • Recommendations
    • References
    CONTENT
  • 18. THERE ARE ABOUT 420 AUTOMOTIVE SUPPLIERS IN THE C.R.
    • There are about 420 suppliers for the automotive industry in the Czech Republic
    • Many large international players such as Barum Continental, Autopal Visteon, Automotive Lighting are present in the CR
    • There is a very high concentration of automotive suppliers in the central and southern part of country
    • Most companies have foreign capital
    • Traditional strong segments are Engine components, Seats, Interior parts and Plastic Components
    Geographical concentration of automotive suppliers Czech automotive suppliers Prague Ostrava Brno Low High
  • 19. THERE ARE MORE THAN 180 T1 SUPPLIERS IN THE CR - Barum Continental is the largest tire producer in the world Source: Czech Automotive Industry Association, Kompass, Czech Invest, Ekonom 23/2006 ,HN
    • Cables, sensors, semi conductors, control units etc.
      • Alcoa Fujikura Czech
      • Kostal
      • TRW Autoelektronika
      • KES
      • Marbo CZ
    • Power train, exhaust
    • systems, engines
      • Bosch Diesel
      • Monroe Czechia
      • Robert Bosch
      • Motorpal
      • Magneton
      • Metal Ustí n./L
      • Faurecia Exhaust Systems
    • Cockpit, seats, dash-
    • board, air conditioning
      • Autopal/ Visteon
      • Siemens VDO
      • Valeo
      • Denso
      • Behr Czech
      • TRW Carr
    T1 SUPPLIERS Electrical systems Interior equipment Propulsion Body Running gear
    • Body, roof, glass, doors, lighting etc.
      • Automotive Lighting
      • Peguform Bohemia
      • Dura Automotive
      • AGC Automotive Cz
      • Benteler ČR
      • Hella
    • Suspension, brakes, axles, steering, tires
      • Barum Continental
      • Brano Group
      • Continental Teves
      • Mubea
      • Lucas Varity
      • TRW Volant
    Automotive Lighting will invest more than 600 M SEK in new production facilities
  • 20. ALMOST ALL PURCHASE DECISIONS ARE MADE ABROAD T1 Suppliers Source: Czech Automotive Industry Association, Kompass, Czech Invest N/A Vehicle electronics 1 700 Alcoa Fujikura Czech By board in Czech Republic or by the customers Engine and components 2 000 Motorpal Czech Republic Suspensions, shock absorbers and braking systems 2 400 Brano N/A Electronic units and dashboard units 2 400 Siemens VDO Automotive N/A Tank modules, suction systems, electronic gas pedals and car brakes 2 000 Robert Bosch Czech Republic / Germany High pressure pumps and compressor units 5 300 Bosch Diesel Individually : Germany, Czech Republic Lighting 1 700 Automotive Lighting USA Auto glass, dashboard units and plastic components 1 900 Peguform Bohemia Germany, Hannover Tyres 4 200 Barum Continental Air conditioning, condensors and lighting Business Decisions made worldwide :England, USA 4 500 Autopal/Visteon Purchase decisions Employees Manufacturer
  • 21. T1 SUPPLIERS, CONTINUED T1 Suppliers Czech Republic Electronic parts and dashboard units 1 500 Kostal Germany Car brakes 1 400 Continental Teves Plettenberg, Germany Chassis components 1 400 Dura Automotive Rakovnik, Czech Republic Air conditioning and condensors 1 100 Valeo Germany, Stuttgart, CR Air conditioning and condensors 600 Behr Czech N/A Lighting systems 800 Hella Autotechnik Belgium / Czech Republic Vehicle glazing 800 AGC Automotive Germany Engine and components 700 Metal Ustí n.L Germany Electronic parts 500 TRW Autoelektronika Germany Dashboards, steerage and foot pedals 500 TRW Volant N/A Engine and components 1 000 Magneton Germany Brake systems 900 Lucas Varity 90% Czech Republic Air conditioning and condensors 1 200 Denso Manufacturing Business Purchase decisions Employees Manufacturer
  • 22. THE T1 SUPPLIERS ARE CONCENTRATED IN CENTRAL BOHEMIA - close to the large OEMs Source: Czech Automotive Industry Association, Kompass, Czech Invest Jicin Blatná Trmice Rakovník Zdice Benesov Vratimov Velké Meziříčí Nový Jičín Stará Boleslav Liberec Mnichovo Hradiště Jihlava Bakov nad Jizerou Bílina-Chudeřice Stráž nad Nisou Otrokovice Zebrak Hradec nad Moravicí Novy Jicin Mohelnice Hodkovice Jihlava
  • 23. THERE ARE ABOUT 240 T2 SUPPLIERS LOCATED IN THE CR - Fezko is the most successful Czech-owned T2 supplier Source: Source: Czech Automotive Industry Association, Kompass, Czech Invest, HN
    • Cables, bus systems, embedded systems
      • Witte Nejdek
      • Kablo Elektro
      • PEKM Kabeltechnik
      • KES
      • TRW Autoelektronika
      • Kautex Textron
    • Power train, exhaust systems, engines
      • Robert Bosch
      • Rubena a.s
      • Motorpal
      • CZ a.s
      • Buzuluk Komárov
      • Tesla Blatná
    • Cockpit, seats, dash-board, air conditioning
      • Autopal
      • Brano
      • Denso
      • Gumotex
      • Showa Alu. Cz
      • Fezko
      • Plastika
    T2 SUPPLIERS Electrical systems Interior equipment Propulsion Body Running gear
    • Body, roof, glass, doors, lighting etc.
      • Tyco Electronics
      • Hella
      • Dura Automotive
      • Rieter CZ
      • Wagon Automotive
      • BTV Plast
      • Edscha Bohemia
    • Suspension, brakes, axles, steering, tires
      • Brano Group
      • Robert Bosch
      • Barum Continental
      • Aliachem a.s
      • Federal Mogul
      • Kostal
      • ZKL Klasterec
  • 24. ALMOST ALL PURCHASE DECISIONS ARE MADE IN THE CR - 4 companies make some of the purchase decisions abroad T2 Suppliers Source: Czech Automotive Industry Association, Kompass, Czech Invest N/A Braking systems, seating and interior 1 800 Aliachem a.s N/A Lighting systems 2 000 Tyco Electronics Czech Czech Republic or the customer decides which supplier he wants Fuel systems 2 000 Motorpal Czech Republic Steerage, foot pedals and exhaust systems 2 200 Rubena a.s Czech Republic, Germany Wheels, axles, wheel suspension and springing 4 200 Barum Continental N/A Heating and air conditioning 4 500 Autopal CR Seats and interior parts 1 700 Gumotex Germany, Japan, CR Air conditioning and condensors 1 800 Denso Czech Republic Engine components and brakes 2 100 Robert Bosch Czech Republic Seating locks 2 400 Brano Group Business Purchase decisions Employees Manufacturer
  • 25. T2 SUPPLIERS CONTINUED T2 Suppliers Czech Republic Engine and components 900 Buzuluk Komárov Main decisions in Germany Lighting systems 800 Hella Autotechnik Czech Republic Exhaust emission systems, gears and drivers 1 400 CZ a.s Czech Republic Dashboard and centre console 1 500 Kostal Germany, CR Automobile locks 1 600 Witte Nejdek Czech Republic Centre consoles 1 500 Kostal Manufacturing material : Germany Maintenance : CR Door systems 1 400 Dura Automotive Purchase recommendations in Switzerland, final decisions CR Door systems 1 300 Rieter Czech Republic Vehicle electronics 1 100 Kablo elektro Germany / Czech Republic Vehicle electronics 700 PEKM Kabeltechnik Germany / Czech Republic Lighting and braking systems 800 Advanced Plastics N/A Braking systems 900 Federal-Mogul Business Purchase decisions Employees Manufacturer
  • 26. THE T2 SUPPLIERS ARE SPREAD OUT OVER THE CZECH REPUBLIC - many of them are located in central and southern part of the country Source: Czech Automotive Industry Association, Kompass, Czech Invest Blatná Liberec Benesov Vratimov Nový Jičín Klada-Krocehlavy Nejdek Jiklava Otrokovice Hradec nad Moravicí Novy Jicin Strakonice Kroměříž Plzeň Komárov Havlíčkův Brod Ústí nad Orlicí Dolní Skrýchov Bělá pod Bezdězem Kostelec nad Orlicí Žďár nad Sázavou Mlada Boleslov Mohelnice
  • 27. Source: Press, Automotive Industry Assocation, CzechInvest
    • Expansion of production facilities of current suppliers
    • Arrival of new foreign producers following their customers in the CR (with regard to TPCA’s and Hyundai’s production start)
    • Czech products are increasingly demanded by other international OEMs (Ford, GM, etc)
    R&D Competition and price pressure Globalization
    • Tough competition on the Czech market leads to rising exports (75% of local production) and falling prices of automotive components
    • Some suppliers have to deal with higher costs because of increasing prices of raw materials (tire production)
    • R&D is traditionally successful
      • CR is the fourth most attractive R&D location worldwide because of the blend of an outstanding engineering tradition and high quality professionals
      • Over 4000 R&D employees in the automotive sector
      • Further foreign producers are expected to locate their R&D activities in the CR in the next years
    THE MANUFACTURE OF AUTOMOTIVE COMPONENTS IS ONE OF THE FASTEST GROWING SECTORS OF THE CZECH INDUSTRY Trends within the Czech auto parts industry
  • 28.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
    • Czech Construction Equipment Industry
      • Manufacturers
      • Suppliers
    • Recommendations
    • References
    CONTENT
  • 29. THE CZECH PRODUCTION OF CONSTRUCTION EQUIPMENT VEHICLES TOTALS APPROXIMATELY SEK 1,2 BILLION - the industry grew more than 32 % in 2005 Mobile drillings derricks, concrete mixers SEK 343 million Fork-lift trucks and other work trucks SEK 84 million Cranes, mobile lifting frames SEK 302 million million SEK Production machine and construction vehicles in the Czech Republic Re-export of imported construction equipment has a high share in total exports Source: Czech Ministry of Trade, Czech Statistical Office Bulldozers, graders and scrapers SEK 482 million
  • 30. OVER 1.700 CONSTRUCTION VEHICLES ARE PRODUCED IN THE CZECH REPUBLIC Source: Kompass, Seznam, Otas, Ing. Vojtech, Stastr Castlav, CKD Mobilni jeraby, VOP 025, Tatra The production of construction vehicles is traditionally low in the Czech Republic * Includes earth moving and underground vehicles CONSTRUCTION EQUIPMENT ROAD
    • 2 manufacturers
      • VOP 025
      • Tatra
    Graders, asphalt pavers, asphalt mixers MINING
    • 3 manufacturer
      • Otas
      • Ing. Vojtech Novotny
      • Stastr Castlav
    Wheel loaders, drills, haulers
    • 4 manufacturers
      • Otas
      • Ing. Vojtech Novotny
      • Stastr Castlav
      • Zetor, a.s
    EARTH MOVING Excavators, wheel loaders, backhoe loaders, Skid steer loaders, haulers LIFTING
    • 2 manufacturer
      • CKD Mobilni jeraby
      • Stavební Stroje
    Mobile cranes, forklifts
  • 31. ALL PURCHASE DECISIONS ARE MADE IN THE CZECH REPUBLIC Source: CKD Mobilini jeraby, VOP 025, Tatra a.s, Otas, s.r.o, Ing. Vojtech Novotny Stastr Caslav, s.r.o * Total production including trucks No purchase 5 / year Caslav Hammer drilling rings, tractor excavators, vibratory rollers 50 Stastr Caslav, s.r.o Fire fighters Bandwagons Caterpillar trucks Army production Tractors Compact loaders Minidiggers Heavy duty off and on-road vehicles Truck-mounted cranes Mobile cranes Models and focus 1 100 1 100 90 12 4 000 50 Employees Czech Republic 100 / year Dubicko Ing. Vojtech Novotny Czech Republic 5.750 /year Brno Zetor a.s Czech Republic Not available Novy Jicin VOP 025 Czech Republic 50 / year Pribram Otas, s.r.o 1.500 / year* 20 / year Production volume Czech Republic Koprivnice Tatra a.s Czech Republic Slany CKD Mobilni jeraby, a.s Purchasing decisions Plant Manufacturer
  • 32. THE CONSTRUCTION EQUIPMENT PLANTS ARE SPREAD OUT OVER THE CZECH REPUBLIC Source: CKD Mobilini jeraby, VOP 025, Tatra a.s, Otas, s.r.o, Ing. Vojtech Novotny Stastr Caslav, s.r.o Stany Koprinice Pribram Dubicko Novy Jicin Caslav Brno Prague Usti nad Labem
  • 33.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
    • Czech Construction Equipment Industry
      • Manufacturers
      • Suppliers
    • Recommendations
    • References
    CONTENT
  • 34. THERE ARE ONLY A FEW SUPPLIERS IN THE CZECH REPUBLIC - many of them produce components also for other industrial segments Source: Kostal, Behr Czech, TRW Carr, KES, Barum Continental, Tedom, THT, AXL, Metal Ustí n./L
    • Cables, sensors, semi conductors, control units
      • Kostal
      • KES
      • Kautex Textron
      • TRW Carr
    • Undercarriage and body
      • CTS Servis
      • Edscha Bohemia
    • Power train, engines, exhaust systems, axles
      • Tedom
      • Metal Ustí n./L
      • Buzuluk Komarov
    SUPPLIERS Electrical systems Propulsion and running gear Steel construction Hydraulics Accessories
    • All kinds of hydraulic cylinders
      • AXL
    • All kinds of accessories
      • Kostal
      • Barum Continental
      • Behr Czech
      • Kautex Textron
      • THT
  • 35. PURCHASE DECISIONS ARE MADE BOTH IN THE CR AND ABROAD Source: Kostal, Behr Czech, TRW Carr, KES, Barum Continental, Buzuluk Komarov, Metal Usti, Edscha Bohemia, Kautex Textron Germany Engine components 750 Metal Ustí n./L Germany Air conditioning and condensors 600 Behr Czech CR Engine components 900 Buzuluk Komarov CR and at German head office Lighting, fasteners and safety belts 1 200 TRW Carr Germany, CR Tires 4 200 Barum Continental Germany Door systems 300 Edscha Bohemia CR and abroad Plastic components 300 Kautex Textron Electronic parts and dashboard units Electronic parts and dashboard units Business NA 300 KES CR 1 800 Kostal Purchase decisions Employees Manufacturer
  • 36. CONSTRUCTION EQUIPMENT SUPPLIERS Source: Kostal, Behr Czech, TRW Carr, KES, Barum Continental, Tedom, THT, AXL Praha Semily Nymburk Polička Třebíč Vratimov Vratimov Otrokovice Dolní Skrýchov Komárov Benesov Mlada Boleslov Mnichovo Hradiště Zdice
  • 37. Source: HN, Ekonom, Companies websites
    • Low share of construction vehicles in the automotive industry
      • Stagnating production in local OEMs
      • Zetor is an exception: the tractor manufacturer plans to double production in the next years
    • Growth in the component segment is driven mainly by supplies to passenger car manufacturers both in the CR and abroad
    R&D Competition Domestic production
    • Dominant position of imported brands (Liebherr, Man, Scania)
    • Irrelevant market share of Czech OEMs
    • Increasing competition among local suppliers whose products are designed for both transport and construction vehicles
    • Limited R&D activities in connection with construction vehicles
      • Only Zetor shows significant innovation potential among local OEMs
      • Suppliers are more active but their main focus are passenger cars
    THE COMPONENT SECTOR IS EXPECTED TO GROW - but the production of construction vehicles is likely to stagnate Trends within the Czech construction vehicle industry
  • 38.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
    • Czech Construction Equipment Industry
    • Recommendations
    • References
    CONTENT
  • 39. Source: STC RECOMMENDATIONS FOR DOING BUSINESS IN THE CZECH AUTOMOTIVE INDUSTRY Recommendations for doing business in the Czech automotive industry
      • Consider geographical aspects when selecting business partners to keep your options open to deliver to the German market
    3. 2. 1.
      • T
      • Although the price-level is competitive, choose Czech Republic mainly for quality and a high number of highly qualified engineers
      • Involve engineers in the expansion planning and partner negotiation since your local partner will ask many technical questions
    Country specific
      • Make your move now since the Automotive industry is growing faster than ever with substantial investments from OEMs and tier1 suppliers
    3. 2. 1.
      • Establish your own subsidiary with local management to develop channels to the local business network
      • Use the Czech Republic as a central hub to expand into the rest of Central and Eastern Europe
    Industry specific
  • 40.
    • Overview Czech Manufacturing Industry
    • Czech Automotive Industry
    • Czech Construction Equipment Industry
    • Recommendations
    • References
    CONTENT
  • 41. HOW CAN STC SUPPORT COMPANIES TO DO BUSINESS IN THE CZECH REPUBLIC?
      • Specific market analysis including both macro and micro level according to customer specification
    Company Aquisition Distributor/ supplier search Market Check Country specific BSO Recruitment Company establishment Legal
      • Business Support Office. You company can use the premises/address of the STC and use tailor made administration and market support services.
      • Direct or Indirect search for high or mid level managment including the whole process of head hunting, advertisement, candidate screening, actual interviews and potential candidate evaluation
      • Practical knowledge and functional support during company registration
      • Due dilligence – financial, tax and legal support including strategical advise on what’s best for You
      • Market screening and evaluation of suitable distributors or suppliers according to specific criteria including visiting programmes to the potential partners
      • Organization and planning of the project – Potential target seach and analysis - Evaluation of the targeted company – Negotiation support - Due Diligence – Closing of the deal – Execution of the aquisition
  • 42. STC HAS HELPED NUMEROUS SWEDISH COMPANIES TO DO BUSINESS IN THE CZECH AUTOMOTIVE INDUSTRY Lamination and preparation of textile products for the automotive industry World leader in dust and smoke extraction, exhaust fume extraction, hose and cable reels, workplace partitioning and protective gear. Designs and manufactures air filters and filtration equipment for a wide range of markets and applications - from commercial and industrial buildings to manufacturing cleanrooms - from diesel powered vehicles to specialized OEM equipment PROFILE COMPANY
  • 43. STC CARRIED OUT A MARKET ANALYSIS, PARTNER SEARCH AND A CUSTOMER AQUISITION FOR TIDBECKS The main objective of the project was to support Tidbecks’ competitive position through widening of the assortment and establishing low-cost-country production in the Czech Republic. STC role and contribution Results Goal
    • Market analysis for welded and woven wire products
    • Potential target search and analysis
    • In-depth customer acquisition analysis including evaluation and due dilligence support
    • Organization and planning of the aquisition process
    • Closing of the aquisition – in current negotiation
    • Tidbecks will have local precence and cost efficient production and thus increase their competitivness
    Step1: Project plan Step 2: Market analysis Outline of project Kick-Off Workshop I Completed Step 3: Aquisition target screening and analysis Step 4:Evaluation Step 5: Due Diligence Step 6: Closing/execution process Completed Workshop 2 Workshop 3 Completed Completed Completed Final negotiations Workshop 4
  • 44. STC CARRIED OUT A COMPETITOR AND CUSTOMER ANALYSIS AND COMPLETE SCREENING AND EVALUATION OF POTENTIAL PARTNERS The overall objective is to increase Nederman’s sales in central Europe through local presence
    • Identification and analysis of relevant competition
    • Detailed analysis of customers’ preferences
    • Find, screen and evaluate potential partners
    • Recommendation of market entry strategy
    STC role and contribution Results Goal Outline of project
    • Received a “form fitted” strategy and partner match-making which has resulted in local presence
    Extensive industry inter- views and desk research Partner search, visits and evaluation Market analysis Partner search Recommendations Recommen-dations / partner negotiations