 Manufacturing:
satisfaction guaranteed |
Should there be one industrial sector that should
be picked up as an example of a successful transformation,
it would be without a doubt the automotive industry.
It is not only the showcase of Skoda Auto (owned
by Volkswagen), the bus maker Karosa (owned by Renault
V.I.) or the newest joint greenfield investment
of Toyota, Peugeot and Citro?n, but also dozens
of car parts producers such as Valeo. "The
Czech Republic has become a powerhouse in the automotive
components industry," Mr.
Rusnok
says proudly. For example the new automotive plant
by Toyota, Peugeot and Citro?n is the largest greenfield
investment ever made in Central and Eastern Europe.
It will also be the first foreign factory assembling
cars in the Czech Republic, so far dominated by
Škoda. The Czech brand still holds about 50%
of the domestic market with Renault, Peugeot, Volkswagen
and Opel being the strongest foreign car brands
each holding 4-7% of the new car market. |
The electronics industry
is very important as well. In Moravia, there is
a significant presence of Matsushita, the company
behind Panasonic, producing TV sets, mobile phones
and other products, building its operation up to
meet growing consumer electronics demand across
Central and Eastern Europe as well as serving the
EU market. Besides these two well-known examples,
there are dozens of other electronics companies
setting up in the Czech Republic in the last few
years and profiting from the qualified labor force.
The country is also moving towards more high-tech
manufacturing, gradually reorienting investment
incentives to investments bringing higher added
value. "We would like to, and already started
to, attract more investors into the strategic services
field and we have started with two pilot projects,
one of them being an IBM developing center. We want
to pursue this trend," Mr.
Rusnok stresses.
While the communist systems always relied on large
companies, the post-communist times have seen the
revival of small and medium-sized enterprises (SMEs).
The growth has been very strong and SME's now produce
almost 50% of the Czech GDP. "We would like
to further improve the system of support and promotion
of SMEs," says Mr. Rusnok, adding that this
sector is the one that brings needed stability into
the economy. |
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