CzechInvest mediated 116 investment projects in the first half of 2014

12 Sep. 2014 | CzechInvest | The Agency achieved the highest total in the history of its half-yearly statistics.

It is apparent from CzechInvest’s latest half-yearly statistics of mediated investment projects that foreign and domestic firms have a renewed desire to invest. In the first six months of 2014 the agency registered 116 investment projects. This figure not only surpasses the number of projects mediated in all of 2013, but is also the highest total reached since CzechInvest began compiling half-yearly statistics. These investments will bring more than CZK 78 billion to the Czech economy this year and create more than 14,000 jobs, nearly half of which, specifically 5,745, in the Moravia-Silesia and Ústí regions.

Period	Number of projects	Investment amount (CZK mil.)	Jobs
H1 2012	31	1,764.63	2,274
2012	81	20,372.55	8,271
H1 2013	44	19,478.86	5,098
2013	108	47,949.38	10,519
H1 2014	116	78,312.16	14,094

With CzechInvest’s assistance, 18 companies decided to invest in the Ústí region in the first half of 2014. Their investments in the combined value of CZK 31 billion could create as many as 3,024 jobs there in the future. Nineteen firms chose northern Moravia as the most suitable location for their investments, which total CZK 12.8 billion with the potential to create 2,721 jobs.

“These figures are proof that the Czech government’s effort to steer investors to regions with the highest levels of employment is achieving results,” says Minister of Industry and Trade Jan Mládek. “The strategic industrial zones in Žatec and Ostrava-Mošnov play a major role in this.”

“The actions of the Czech government, which has reinstated investment support as one of its priorities, are having a very positive impact on growth,” says Ondřej Votruba, acting CEO of CzechInvest.

The statistics support the persistent trend of expansions and reinvestments. Of the total 116 projects, only 14 consist of new investment projects. “Investment incentives clearly play a role, as 85% of the projects are supported by them,” explains Votruba. “At the same time, we should point out that an unprecedentedly large number of Czech firms are expanding, which is evidence that the incentives not only serve as a stimulus for foreign investors, but also motivate domestic firms to further develop.”

The largest number of foreign investors that came to the Czech Republic in the first half of 2014 were, as usual, from Germany, specifically 25 firms investing more than CZK 12.5 billion here and creating up to 3,947 jobs. The other most active investors include the Dutch (nine investment projects, CZK 5.5 billion, 399 jobs), Americans (eight investment projects, CZK 2.9 billion, 2,548 jobs) and the Japanese (five investment projects, CZK 1.3 billion, 314 jobs).

As in past periods, the dominant sector is vehicle manufacturing with 35 investment projects mediated in the first half of 2014 with the combined value of CZK 19.9 billion and more than 6,000 jobs to be created in future. Metallurgy/metalworking and mechanical-engineering also rank near the top among sectors in terms of the number and volume of investments.

The largest investment project undertaken in the first half of the year is that of Nexen Tire, which is investing CZK 22.8 billion in the Triangle industrial zone near Žatec in the Ústí region, where the company will begin construction of a tire factory next year. The second-biggest project of H1 2014 belongs to Brose CZ spol. s r.o., which is expanding its production of lock systems and adjustable seats at a cost of CZK 2.65 billion. The third-biggest investment of H1 2014 is the expansion of Continental Automotive Czech Republic s.r.o. in the Hradec Králové region in the value of CZK 2.63 billion.

“However, investors’ interest in the Czech Republic is not subsiding. Though we don’t expect such record-setting figures in the second half, 2014 will generally turn out to be very successful in terms of investment activity,” anticipates Ondřej Votruba. “This is indicated by, for example, the number of investors applying for investment incentives, which is not declining, despite some negative prognoses following the change of European state-aid rules. Like Nexen Tire’s investment in the first half of the year, Hyundai Mobis’s investment will have a significant impact on the statistics for the second half. We also expect growth in vehicle manufacturing, which will have a positive impact on the development of the supplier network serving carmakers operating in the country. Nevertheless, we must think about the future and work very intensively within our prepared strategy not only on promoting the Czech Republic as an attractive investment destination, but also on real measures aimed at improving the investment environment, such as in the areas of the country’s skilled workforce, legislation, infrastructure and interdepartmental cooperation.”