Download - Automotive Fact Pack
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
0 50 100 150
Metalproducts
Machineengineering
Food andtobacco
Electrical andoptical
Automotive
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
0
10
20
30
40
50
60
70
2000 2001 2002 2003 2004 2005
Export Domestic
Vehicles and engines
SEK 58 billion
Trailers and semi-trailers
SEK 2 billion
Components and
accessories
SEK 95 billion
billion SEKTotal 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 MANUFACTURERSVEHICLE MANUFACTURERS
LIGHT TRUCKS( 1,200 vehicles)
LIGHT TRUCKS( 1,200 vehicles)
3 manufacturers Karosa (1,900) Ekobus (50) SOR Libchavy (300)
BUSSES( 2,200 vehicles)
BUSSES( 2,200 vehicles)
HEAVY TRUCKS( 2,100 vehicles + 2,500 trailers)
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)COMMERCIAL VEHICLES (8,000 vehicles)
PASSENGER CARS( 610,000 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
0
200000
400000
600000
800000
1000000
1200000
2001 2002 2003 2004 2005 2010
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
9Source: Skoda Auto, TPCA
Manufacturer Employees
Business Purchase decisions
Skoda Auto 26.700 Passenger cars HQ, Mlada Boleslav, Czech Republic (By German management)
TPCA 3.000 Passenger cars Kolín, Czech Republic (Joint venture)
PURCHASE DECISIONS ARE MADE IN THE CZECH REPUBLICPa
ssen
ger C
ars
10
THERE ARE 4 CAR MANUFACTURING PLANTS IN THE CZECH REPUBLIC- TPCA plans to reach a production level of 320,000 cars annually
Hyundai Nosovice Estimated 2009 300.000 / year
Source: Skoda Auto, TPCA, Czechinvest, Hospodarske noviny (HN)
Vrchlabí
Kolín
The TPCA plant is the most modern Toyota plant in the world
Prague
Mlada BoleslavKvasiny
Manufacturer Plant Models and focus
Production volume
Skoda Auto Mladá Boleslav
Vrchlabí
Kvasiny
Octavia Fabia
Octavia
Skoda Superb
136.000 / year226.000 / year
59.000 / year
20.000 / year
TPCA Kolín Peugeot 107Citroën C1
Toyota Ayygo
35.000 / year35.000 / year35.000 / year
Nosovice
11Source: 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&DR&D
Competition and prices
Competition and prices
GlobalizationGlobalization
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
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2001 2002 2003 2004 2005
Light Trucks Heavy Trucks Buses
Commercial Vehicle Production in the Czech Republic Development the last 5 years
Vehicles 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
Source: AIA, HN, Ekonom
14Source: Ekobus, Magma, Skoda-Auto, Tatra, Avia, Schwarzmuller,
Panav, Metaco, Karosa, SOR Libchavy:
Manufacturer Employees Business Purchase decisions
Tatra 2.200 Heavy trucks Koprivnice, CR
Avia 800 Heavy trucks Prague, CR
Skoda Auto 26.700 Light trucks Mlada Boleslav, CR
Magma Alficar 60 Light trucks Brno, CR
Karosa 1.600 Busses Vysoke Myto, CR
Ekobus 200 Busses Prague, CR
SOR Libchavy 400 Busses Libchavy, CR
Schwarzmuller 100 Trailers and semi trailers Zebrak, CR, Haibach bei Scharding, Austria
Panav 400 Trailers and semi trailers Senice na Hane, CR
Metaco 40 Trailers and semi trailers Brandys n.L.,CR
THE MAJORITY OF THE PURCHASE DECISIONS ARE MADE IN THE CZECH REPUBLIC
Com
mer
cial
veh
icle
s
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
Manufacturer Plant Models and focus Production volume
Magma Alficar Brno Light trucks 50 / year
Skoda Mladá Boleslav Light trucks 1.200 / year
Tatra Koprivnice Heavy trucks Off and on-road vehiclesSpecial vehicles TractorsTippers
1.500 / year
Avia Prague Heavy trucksTractorsTippers
600 / year
Schwarzmuller Zebrak Trailers and semi trailers
1.400 / year
Panav Senice na Hane Platform trailersTipping trailersSemi trailers
900 / year
Metaco Brandys n.L Platform trailersContainer trailersTipping semi trailers, etc.
200 / year
Karosa Vysoke Myto City busesIntercity busesTouring coachesMinibuses
1.900 / year
Ekobus Česká Lípa Ecological buses 50 / year
SOR Libchavy Libchavy City busesIntercity busesTourist coaches
250 / year
Česká Lípa
Koprivnice
Prague
Vysoke Myto
LibchavyBrandys n.L
Brno
Senice na Hane
Zebrak
Mlada Boleslav
16Source: 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
Success factors
DomesticproductionDomestic
production
RestructuringRestructuring
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
Low High
Geographical concentration of automotive suppliersCzech automotive suppliers
Prague
Ostrava
Brno
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 SUPPLIERST1 SUPPLIERS
Electrical systemsElectrical systems Interior equipmentInterior equipment PropulsionPropulsion BodyBody Running gearRunning 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 ABROADManufacturer Employees Business Purchase decisions
Bosch Diesel 5 300 High pressure pumps and compressor units
Czech Republic / Germany
Autopal/Visteon 4 500 Air conditioning, condensors and lighting
Decisions made worldwide :England, USA
Barum Continental 4 200 Tyres Germany, Hannover
Brano 2 400 Suspensions, shock absorbers and braking systems
Czech Republic
Siemens VDO Automotive
2 400 Electronic units and dashboard units
N/A
Motorpal 2 000 Engine and components By board in Czech Republic or by the customers
Robert Bosch 2 000 Tank modules, suction systems, electronic gas pedals and car brakes
N/A
Peguform Bohemia 1 900 Auto glass, dashboard units and plastic components
USA
Alcoa Fujikura Czech 1 700 Vehicle electronics N/A
Automotive Lighting 1 700 Lighting Individually : Germany, Czech Republic
T1 S
uppl
iers
Source: Czech Automotive Industry Association, Kompass, Czech Invest
21
T1 SUPPLIERS, CONTINUEDManufacturer Employees Business Purchase decisions
Kostal 1 500 Electronic parts and dashboard units
Czech Republic
Continental Teves 1 400 Car brakes Germany
Dura Automotive 1 400 Chassis components Plettenberg, Germany
Valeo 1 100 Air conditioning and condensors
Rakovnik, Czech Republic
Denso Manufacturing 1 200 Air conditioning and condensors
90% Czech Republic
Magneton 1 000 Engine and components N/A
Lucas Varity 900 Brake systems Germany
Hella Autotechnik 800 Lighting systems N/A
AGC Automotive 800 Vehicle glazing Belgium / Czech Republic
Metal Ustí n.L 700 Engine and components Germany
Behr Czech 600 Air conditioning and condensors
Germany, Stuttgart, CR
TRW Autoelektronika 500 Electronic parts Germany
TRW Volant 500 Dashboards, steerage and foot pedals
Germany
T1 S
uppl
iers
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 JizerouBílina-Chudeřice
Stráž nad Nisou
OtrokoviceZebrak
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 SUPPLIERST2 SUPPLIERS
Electrical systemsElectrical systems Interior equipmentInterior equipment PropulsionPropulsion BodyBody Running gearRunning 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
Manufacturer Employees
Business Purchase decisions
Autopal 4 500 Heating and air conditioning N/A
Barum Continental 4 200 Wheels, axles, wheel suspension and springing
Czech Republic, Germany
Brano Group 2 400 Seating locks Czech Republic
Rubena a.s 2 200 Steerage, foot pedals and exhaust systems
Czech Republic
Robert Bosch 2 100 Engine components and brakes Czech Republic
Tyco Electronics Czech
2 000 Lighting systems N/A
Motorpal 2 000 Fuel systems Czech Republic or the customer decides which supplier he wants
Aliachem a.s 1 800 Braking systems, seating and interior
N/A
Denso 1 800 Air conditioning and condensors
Germany, Japan, CR
Gumotex 1 700 Seats and interior parts CR
ALMOST ALL PURCHASE DECISIONS ARE MADE IN THE CR- 4 companies make some of the purchase decisions abroad
T2 S
uppl
iers
Source: Czech Automotive Industry Association, Kompass, Czech Invest
25
T2 SUPPLIERS CONTINUEDManufacturer Employees Business Purchase decisionsWitte Nejdek 1 600 Automobile locks Germany, CR
Kostal 1 500 Dashboard and centre console Czech Republic
Kostal 1 500 Centre consoles Czech Republic
CZ a.s 1 400 Exhaust emission systems, gears and drivers
Czech Republic
Dura Automotive 1 400 Door systems Manufacturing material : GermanyMaintenance : CR
Rieter 1 300 Door systems Purchase recommendations in Switzerland, final decisions CR
Kablo elektro 1 100 Vehicle electronics Czech Republic
Buzuluk Komárov 900 Engine and components Czech Republic
Federal-Mogul 900 Braking systems N/A
Hella Autotechnik 800 Lighting systems Main decisions in Germany
Advanced Plastics 800 Lighting and braking systems Germany / Czech Republic
PEKM Kabeltechnik 700 Vehicle electronics Germany / Czech Republic
T2 S
uppl
iers
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
JiklavaOtrokovice
Hradec nad MoravicíNovy Jicin
Strakonice
Kroměříž
Plzeň
Komárov
Havlíčkův Brod
Ústí nad Orlicí
Dolní Skrýchov
Bělá pod Bezdězem
Kostelec nad Orlicí
Žďár nad Sázavou
Mlada Boleslov
Mohelnice
27Source: 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&DR&D
Competition and price pressure
Competition and price pressure
GlobalizationGlobalization
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
0
200
400
600
800
1000
1200
1400
1600
2000 2001 2002 2003 2004 2005
Exports Total Production
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
CONSTRUCTION EQUIPMENTCONSTRUCTION EQUIPMENT
ROADROAD
2 manufacturers VOP 025 Tatra
Graders, asphalt pavers, asphalt mixers
MININGMINING
3 manufacturer Otas Ing. Vojtech
Novotny Stastr Castlav
Wheel loaders, drills, haulers
4 manufacturers Otas Ing. Vojtech
Novotny Stastr Castlav Zetor, a.s
EARTH MOVINGEARTH MOVING
Excavators, wheel loaders, backhoe loaders, Skid steer loaders, haulers
LIFTINGLIFTING
2 manufacturer CKD Mobilni
jeraby Stavební Stroje
Mobile cranes, forklifts
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
31
ALL PURCHASE DECISIONS ARE MADE IN THE CZECH REPUBLIC
Manufacturer Employees Models and focus Plant Production volume
Purchasing decisions
CKD Mobilni jeraby, a.s
50 Truck-mounted cranesMobile cranes
Slany 20 / year Czech Republic
Tatra a.s 4 000 Heavy duty off and on-road vehicles
Koprivnice 1.500 / year* Czech Republic
Otas, s.r.o 12 Minidiggers Pribram 50 / year Czech Republic
Ing. Vojtech Novotny
90 Compact loaders Dubicko 100 / year Czech Republic
Zetor a.s 1 100 Tractors Brno 5.750 /year Czech Republic
VOP 025 1 100 Fire fightersBandwagonsCaterpillar trucksArmy production
Novy Jicin Not available Czech Republic
Stastr Caslav, s.r.o
50 Hammer drilling rings, tractor excavators, vibratory rollers
Caslav 5 / year No purchase
Source: CKD Mobilini jeraby, VOP 025, Tatra a.s, Otas, s.r.o, Ing. Vojtech NovotnyStastr Caslav, s.r.o
* Total production including trucks
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 NovotnyStastr 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
SUPPLIERSSUPPLIERS
Electrical systemsElectrical systems Propulsion and running gear
Propulsion and running gear Steel constructionSteel construction HydraulicsHydraulics AccessoriesAccessories
All kinds of hydraulic cylinders
AXL
All kinds of accessories
Kostal Barum Continental Behr Czech Kautex Textron THT
35
Manufacturer Employees
Business Purchase decisions
Kostal 1 800 Electronic parts and dashboard units
CR
Barum Continental
4 200 Tires Germany, CR
TRW Carr 1 200 Lighting, fasteners and safety belts
CR and at German head office
Buzuluk Komarov
900 Engine components CR
Metal Ustí n./L 750 Engine components Germany
Behr Czech 600 Air conditioning and condensors
Germany
Edscha Bohemia
300 Door systems Germany
Kautex Textron 300 Plastic components CR and abroad
KES 300 Electronic parts and dashboard units
NA
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
36
CONSTRUCTION EQUIPMENT SUPPLIERS
Source: Kostal, Behr Czech, TRW Carr, KES, Barum Continental, Tedom, THT, AXL
Praha
Semily
Nymburk
Polička
Třebíč
Vratimov
Vratimov
OtrokoviceDolní Skrýchov
Komárov
Benesov
Mlada BoleslovMnichovo Hradiště
Zdice
37Source: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&DR&D
CompetitionCompetition
Domestic productionDomestic
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
39Source: 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
3.3.
2.2.
1.1.
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
3.3.
2.2.
1.1.
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 AquisitionCompany Aquisition
Distributor/ suppliersearch
Distributor/ suppliersearch
Market CheckMarket Check
Country specific
BSOBSO
RecruitmentRecruitment
Company establishment
Company establishment
LegalLegal
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
COMPANY PROFILE
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
World leader in dust and smoke extraction, exhaust fume extraction, hose and cable reels, workplace partitioning and protective gear.
Lamination and preparation of textile products for the automotive industry
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 contributionSTC role and contribution
ResultsResults
GoalGoal
• 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 Step1: Project plan
Step 2: Market analysis Step 2: Market analysis
Outline of projectOutline of project
Kick-Off
Workshop I
Completed
Step 3: Aquisition target screening and analysis
Step 3: Aquisition target screening and analysis
Step 4:EvaluationStep 4:Evaluation
Step 5: Due DiligenceStep 5: Due Diligence
Step 6: Closing/executionprocess
Step 6: Closing/executionprocess
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 contributionSTC role and contribution
ResultsResults
GoalGoal Outline of projectOutline 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