Conference

New Address for Your Business

Strategická průmyslová zóna Holešov

Alexandra Rudyšarová

CEO   CzechInvest

Strategic industrial zone Holešov

New address for your businessConference about investment possibilities

April 21st 2010

Alexandra RudyšarováCEO of the

Investment and Business Development Agency CzechInvest

CZECHINVEST PRIORITY SERVICES

╌ Investment Incentives

╌ Business Properties Support

╌ Supporting Small and Medium-sized Enterprises

╌ Business Properties Identification

╌ Supplier Identification

╌ Supporting Research and Development

╌ Supporting cluster development

╌„AfterCare“ services

Source: CzechInvest, 2010

╌State receives return of CZK 8.65 for every crown provided as

an investment incentive

╌State expenditures on incentives from 1998 to 2008: CZK 30.068

billion; income: CZK 260.041 billion

╌According to Deloitte’s forecast, the state should earn another

CZK 70 billion on incentives this year alone

╌Incentives account for 308,000 new jobs, employing 9% of all

workers in the Czech Republic

╌Incentives have been granted to 486 projects with a total

investment amount of CZK 357 billion

INVESTMENT INCENTIVESDELOITTE STUDY

╌Acquisition of a new plant or expansion of an existing plant

╌Minimum investment within 3 years

100 mil CZK (app. 3.8 mil. EUR/5.4 mil. USD) (C)

60 mil CZK (app. 2.4 mil. EUR/3.2 mil. USD) (B)

50 mil CZK (app. 1.9 mil. EU/ 2.7 mil. USD) (A)

╌At least half of the above minimum investment must be covered by

own equity

╌At least 60% from the total investment must be made into

machinery

╌Machinery equipment has to be new

INVESTMENT INCENTIVESFOR MANUFACTURING - ELIGIBILITY CRITERIA

MINIMUM INVESTMENT –BY REGIONS

SM

OV

LN

LBDC

PHRA

KD

TP

JC

PV

CV

CL

MBLT

MOUL

PRPE

PU

PJ

NA

ST

ZR

KO

PM

NB

PI

HB

SU

PB

TU

NJ

OP

SY

RO

AB

BK

BRUO

KV

JN

VS

JE

CRBE

RK

DO

KT

KH

PS

ME

OC

TA

PZ

BN

HK

TC

ZN

JI

BI

CHSO

BMTRJHPT CB

BVCK

KI

KM

UH

FM

VY ZL

HO

GROUP MINIMUM INVESTMENT

A 50 mil CZK/1.9 mil. EUR/2.7 mil. USD

B 60 mil CZK/2.4 mil. EUR/3.2 mil. USD

C 100 mil CZK/3.8 mil. EUR/5.4 mil. USD

Valid: January 1–June 30, 2010

INVESTMENT INCENTIVES FOR MANUFACTURING: FORM OF SUPPORT

Following items summed up cannot exceed the ceiling of state aid

╌Tax incentive

- New firms: corporate tax relief for max. 5 years

- Existing firms: partial tax relief for max. 5 years

╌Job creation grants

- Offered in regions with the highest rate of unemployment only (A)╌Discounted price of land

- the difference between the market price and the purchase price

╌Training and retraining grants

- Offered in regions with the highest rate of unemployment only (A)

Granted above the ceiling of state aid

STATE AID MAP(2007–2013)

REGION STATE AID SUPPLEMENT

Prague 0%

South-west36% (2007–10)

30% (2011–13)

Other regions 40%

SELECTED EU FINANCIAL SUPPORT

╌ICT and Business Support Services Programme

╌ Creation and Development of IS/ICT solutions and applications╌ Acceptance of Registration Applications: 15. 4. 2010–15. 10. 2010╌ The min. amount of investment in long-term assets must amount to CZK

0.5/1/3 million and the min. number of newly created jobs is 10–40

(depending on the type of supported activity and on the size of the

enterprise)╌ Eligible costs comprise either tangible and intangible assets or two years’

gross wages (the investor can choose one option) ╌ Subsidy in the amount of CZK 1.5–150 million

SELECTED EU FINANCIAL SUPPORT

╌Potential Programme

╌ Research & Development activities╌ Acceptance of Registration Applications: 26. 2. 2010–30. 9. 2011╌ The min. investment in long-term assets used for the purpose of ensuring

the activities of the project must amount to CZK 10 million (CZK 5 million in the case of SMEs)

╌ Subsidy in the amount of CZK 1–200 million

╌Innovation Programme

╌ Innovation of product and processes╌ Acceptance of Registration Applications: 1.5. 2010 – 30. 9. 2010╌ Projects must use the results of research and development (development

must already be completed at the time of submission of the application and this fact documented)

╌ Subsidy in the amount of CZK 1–150 million

SELECTED EU FINANCIAL SUPPORT

╌EDUCA Programme

╌ Specific education of employees╌ Acceptance of Registration Applications: 3. 5. 2010–31. 10. 2011╌ Aid is defined as a percentage of the project’s eligible costs – 25% of the

total eligible costs (medium-sized enterprises – 35%; small enterprises – 45%)

╌ Subsidy in the amount of CZK 0.5–8 million

╌Training centres Programme

╌ Construction, renovation and equipment of training centres and training rooms

╌ Acceptance of Registration Applications: 1. 11. 2009–31. 5. 2010╌ Subsidy in the amount of CZK 0.2–100 million

SELECTED EU FINANCIAL SUPPORT

╌ECO-ENERGY Programme

╌ Utilisation of renewable and secondary energy sources and increasing

efficiency during production, transfer and consumption of energy╌ Acceptance of Registration Applications: 1. 3. 2010–30. 6. 2010╌ Subsidy in the amount of CZK 0.5–250 million

SELECTED EU FINANCIAL SUPPORT - only SMEs

╌Development Programme

╌ Subsidies for technological equipment ╌ Acceptance of Registration Applications: 1. 5. 2010–1. 8. 2010 ╌ Subsidy in the amount of CZK 1–20 million

╌Guarantee Programme

╌ Programme helps to obtain bank loans in order to implement business

projects ╌ Acceptance of Registration Applications: 5. 1. 2010–31. 12. 2010╌ Subsidy is provided in the form of a favoured guarantee in the amount of

up to 80% of the principal guaranteed loan

RECRUITMENT GRANTS FROM LABOUR OFFICES

╌ An employer can receive recruitment grants for creation of “socially

beneficial jobs” based on an agreement with the labour office.

“Socially beneficial jobs” are those working positions that must be

filled with job seekers from the labour office register.

╌ In 2010, the contribution grants to “socially beneficial jobs” in

district Kromeriz ranges from 50,000–60,000 CZK per job

position.

Source: Ministry of Labour and Social Affairs

╌ Comprehensive supplier linking activities – identify local partners (suppliers or joint-venture partners) for foreign companies

╌ Business property advisory services – (expansion or relocation within the Czech Republic) - identification of suitable industrial zones, lands, existing facilities, brownfields or office premises

╌ Organizing events – e.g. networking events, breakfast meetings with Ministers or regional governors, roundtables, supplier forums, seminars and workshops on specific topics like new legal regulations and its changes, visas and working permits, etc.

╌ Support to human resources – linking investors with international schools, Czech high schools and universities to e.g. align training programs or joint research projects)

╌ Support to visa and working permit procedure – legislation consultancies, direct arrangements for top managers and VIP persons

CZECHINVEST AFTERCARE SERVICES

╌ CzechInvest has actively offered the Holesov Industrial zone to 43 foreign investors (1.1.2009 - 20.4.2010)

╌ Automotive Industry, engineering and manufacture of plastics - these are the sectors that most companies consider investing in on the Holesov site

╌ The zone is open to a wide variety of projects - from 0,5 ha up to 200 ha, which is a great asset and a unique feature of Holesov

╌ Holesov enables new ways of doing business in the Zlin Region - incoming foreign investors will seamlessly blend with a healthy mixture of up-and-coming local companies

CURRENT DISADVANTAGES╌ 60 % of all investors seek leased premises - investors prefer leasing cheap

and already standing halls to building their own premises

╌ Plzen, Usti and Central Bohemian region are again in the spotlight - the global economic crisis caused unemployment to rise even in these traditionally highly industrious region, which together with their geographic proximity to Germany and abundant available space in industrial parks made them very appealing to investor once again.

Holešov Industrial zone

CzechInvest, the Investment and Business Development Agency, is an organisation of the Ministry of Industry and Trade of the Czech Republic

Thank-you for your attention.