Post on 26-Dec-2015
Czech manufacturing business
…..since 1989
An appreciation of dates• Pre 1914
– Austro-Hungarian empire; Czechoslovakia created 1918
• 1918-1939• 1939-1945
– German occupation
• 1945-1989– Communist regime (Influenced by Russia)– “Prague spring” 1968– “Velvet revolution” November 1989
• Post 1989
Traditional industries (1)
• “Heavy industry”– Engineering
• Skoda• Tesla
– Mining• “Black” coal• “Soft” coal• Clay• Graphite• Silver Uranium
Traditional industries (2)
• Specialised– Chemical– Medical– Shoes– Glassware– Contact lenses– Films– Musical instruments
etc, etc, etc………
Traditional industries (3)
• Other– Brewing
…….also, wines and spirits
– Agribusiness• Livestock milk/cheese/meat• Timber• Fruit/vegetables
etc, etc, etc………
During the years up to 1939
• Czech business was oriented towards the west
• Czechoslovakia was the 10th most developed industrialised country in the world
After 2nd World War:
• Communist era
• Czechoslovakia became the “workshop of the Soviet bloc”
• 70% of exports went to Soviet bloc
• Series of yearly and 5-yearly plans
In more detail….in 1974:
• Skoda
• Tesla
• Bata
In more detail….in 1974:
• Skoda
• Tesla
• Bata
Europe in the 1970’s
Europe in the 1970’s
Exports toSoviet bloc
Other exports70%
30%
Europe 1978: Czechoslovakia was considered the workshop of the Soviet bloc
Europe in 1990
Exports toSoviet bloc
Other exports70%
30%
Europe in 1990
Exports toSoviet bloc
Other exports70%
30%
Europe in 1993
Exports toSoviet bloc
Other exports70%
30%
Lostexports
eastwards
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
Europe in 1993
Czech (and Slovak) Republics have to look for other markets
After 1989
• Local companies needed to find new business partners
• Foreign trade re-oriented towards western markets
Nowadays
• European Union is the biggest trade partner
• In 2005, more than 84% exports went to the EU-15 countries
• Sharp increase of foreign investment, especially from Germany
Current Czech manufacturing industries include:
• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices
Automotive industry in the Czech Republic
Automotive industry in the Czech Republic
Passenger car production (per 100 residents)Source: Automobile Industry 4/2006
Some recent foreign investments in the Czech automotive industry
• Volkswagen – sole owner of Skoda
• Toyota-Peugeot-Citroen
• Iveco
Some Czech automotive component suppliers
Current Czech manufacturing industries include:
• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices
Aerospace industry in the Czech republic
• 10,000 people working across the country
Current Czech manufacturing industries include:
• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices
Electrical engineering and electronics
Examples of who does what:(1) consumer electronics
• Panasonic– flat-panels
• TVHitachi– flat-panels
• TVIPS Alpha– LCD modules
• Bang & Olufsen– various consumer electronics
• Candy– refrigerators
Examples of who does what:(2) automotive
• Kostal– electronic modules
• Visteon/Autopal– lighting
• Tyco Electronics– various components
• Siemens VDO – Automotivecontrol modules, sensors, panels
Examples of who does what:(3) IT
• Foxconn– PC routers
• Asus– PC– High-tech repair centre
• FIC– PC
• Inventec– PC
Current Czech manufacturing industries include:
• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices
High-tech engineering
• Between 80% and 90% of production is exported
• R&D driven
• Includes:– Instrumentation– Machine tools– Railway industry
Instrumentation
• Around 4,000 specialised workers in this sector, eg:– Central Bohemia region 13.9%
• Siemens and Linet
– Olomouc region 12.5%• Meopta – optics and Invensis appliance controls
– Prague 12.4%• Honeywell
Machine tools
• Approx 50 companies• About 90% of production are specialist
cutting machines. Approx 80% are exported to:– (mostly) Germany– Other EU countries– US & Canada– and: China, Russia, India and South America
Railway industry
(Includes tramways)
• Three large factories: Prague, Plzen and Koprivnice
• 30% turnover is exported worldwide
Current Czech manufacturing industries include:
• Automotive
• Aerospace
• Electrical engineering and electronics
• High-tech engineering
• Life sciences
• Medical devices
Life science and Medical devices
• Life science– Especially Biotech and pharmaceutical industries
• Medical devices, eg:– Hospital beds– Ventilators– X-ray equipment– Dental technology– Mobile hospitals– Technical gases
Thank you!
Details are on my website:
http://www.richardinprague.eu