High tech firms growing in the Czech Republic

One-third of the projects helped by CzechInvest were high tech investments

Czech and foreign companies plan to invest over Kč 65 billion in the Czech Republic, based on negotiations involving state-run agency CzechInvest in 2017.

One-third of the 106 investment projects are high-tech ones, either technologically oriented or linked to research and development activities.

In 80 cases, companies already operating in the Czech Republic are expanding. Some 83 investors plan to use investment incentives, according to a CzechInvest press release.

“New investors are not coming to the Czech Republic as much as in the past. Straight-forward production activities that are not too technologically demanding are no longer able to absorb as much [investment]. At the same time, we are far more involved in high-tech investments,” CzechInvest CEO Silvana Jirotková said in a press release.

“For more technologically demanding and research and development–oriented investments, we will offer more favorable investment incentives as motivation. This should begin next year," she added.

“Incentives are easier to obtain for those investment plans that will work with a research organization or school, and employ a certain proportion of university graduates,” Jirotková said.

“For investments with higher added value, the coming amendment to the Investment Incentives Act will automatically consider investments in technology centers and strategic services centers. In the case of production activities, the employee will be paid at least the average wage in the region,” she added.

The 80 cases in 2017 of companies already operating here that expanded will bring Kč 53.5 billion. There are 26 new investment projects in the Czech Republic, from countries such as Japan, Germany, Austria, Spain and China. They will bring Kč 12.1 billion to the Czech Republic.

CzechInvest negotiated with German investors for some 17 projects in the amount of Kč 23.8 billion, the United States has 10 projects in the amount of Kč 2.6 billion, and Japan has seven in the amount of 4 Kč billion. Two investment projects totaling Kč 0.9 billion will come to the Czech Republic from China.

Most of the investment plans that were negotiated by CzechInvest are in the metalworking industry, with 21 in the amount of Kč 11.6 billion, the production of means of transport, with 16 in the amount of Kč 17.9 billion, and IT and software development, with 10 in the amount of 1.6 billion .

IT and software development projects have significantly increased over the previous years.

The plans negotiated in 2017 most often headed to Prague or the South Moravia region.

The largest negotiated investment plan in 2017 is the expansion of Siemens. In the coming years, the company will expand and modernize its branches in the Central Bohemia, Moravia-Silesia, Olomouc, Hradec Králové, South Moravia and Ústí nad Labem regions. Part of the Kč 7 billion investment includes a development center in Ostrava. At the same time, this investment project fulfills the requirements of a high-tech project.

The second highest investment plan also meets the requirements of high-tech investment. The company Praha Vaccines is investing Kč 2.5 billion in Říčany, Central Bohemia, to expand the production of vaccines against infectious diseases, especially polio.

The rest of the top five largest investments in 2017 include the expansion of frozen baked goods firm La Lorraine in Kladno, the expansion of paper mill OP papírna in Šumperk and expansion of Škoda Auto.

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