+420220580154Trade and economic relations have undergone extremely positive developments since establishment of Czech independence in January 1993. In recent years, trade volumes are constantly increasing, particularly of Czech exports to Israel. In 2014 Czech exports to Israel amounted to CZK 13.7 billion , 11% more than in 2013 (12.3 billion). In the Middle East region, Israel is the Czech Republic’s most important trading partner. Direct cooperation with Israeli partners (agents, distributors) is not legally required, however it is highly recommended for long-term activity in Israel.
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EXPORTED GOODS FROM THE CZECH REPUBLIC TO ISRAEL IN 2014: CZK 13,7 B
| 1. | Road vehicles (including vehicles with air cushions): | 6 945 130 000 CZK – 52% |
| – | Motor cars: | 6 854 051 000 CZK |
| – | Parts and accessories for motor vehicles | 86 737 000 CZK |
| – | Motor vehic. for transport of goods, special purpose | 3 684 000 CZK |
| – | Motorcycles (incl. mopeds), bicycles | 657 000 CZK |
| 2. | Office machines and automatic data-processing machines: | 2 364 273 000 CZK – 18 % |
| – | Automatic data processing machines | 2 046 322 000 CZK |
| – | Parts for office and automatic data process machines | 173 566 000 CZK |
| – | Office machines | 144 385 000 CZK |
| 3. | Professional, scientific and control instruments: | 456 678 000 CZK – 3,5% |
| – | Measuring, checking,,analysing and control instruments | 350 893 000 CZK |
| – | Instruments for medical, dental and veterinary purposes | 87 231 000 CZK |
| – | Optical instruments and mechanisms | 16 662 000 CZK |
| – | Meters and counters | 1 892 000 CZK |
| 4. | Electrical machinery, apparatus and appliances: | 419 126 000 CZK – 3,2% |
| – | Electrical machinery and mechanisms | 189 689 000 CZK |
| – | Electr. mechanisms for switching electrical circuits | 72 516 000 CZK |
| – | Cathode valves and tubes; diodes; integrated circuits | 62 484 000 CZK |
| – | Equipment for distributing electricity | 55 185 000 CZK |
| – | Others (power machinery, diagnostic apparatus, etc) | 39 252 000 CZK |
| 5. | Telecommunications and sound-recording equipment: | 412 457 000 CZK – 3,1% |
| – | Telecommunications equipment and parts | 371 355 000 CZK |
| – | Monitors and projectors; reception apparatus for television | 38 610 000 CZK |
| – | Radio-broadcast receivers | 2 482 000 CZK |
| 6. | Miscellaneous manufactured articles: | 355 906 000 CZK – 2,7% |
| – | Baby carriages, toys, games and sporting goods | 101 223 000 CZK |
| – | Musical instruments, parts and accessories | 94 545 000 CZK |
| – | Arms and ammunition | 52 225 000 CZK |
| – | Others (plastic articles jewellery, printed matter, etc.) | 107 914 000 CZK |
| 7. | Iron and steel: | 335 076 000 CZK – 2,5% |
| – | Rails and railway track construction material | 238 859 000 CZK |
| – | Iron and steel wire | 92 396 000 CZK |
| – | Flat-rolled products of alloy steel | 1 493 000 CZK |
| 8. | Power-generating machinery and equipment: | 241 357 000 CZK – 1,8% |
| – | Steam turbines and other vapour turbines and parts | 135 513 000 CZK |
| – | Rotating electric plant and parts | 69 350 000 CZK |
| – | Engines and motors, non-electric; parts | 30 044 000 CZK |
| 9. | Organic chemicals: | 240 934 000 CZK – 1,8% |
| – | Carboxylic acids and their anhydrides, halides | 186 126 000 CZK |
| – | Nitrogen-function compounds | 28 428 000 CZK |
| – | Organo-inorganic compounds, heterocyclic compounds | 25 075 000 CZK |
| 10. | General industrial machinery and equipment: | 227 420 000 CZK – 1,7% |
| – | Pumps (excl. for liquids); parts | 79 811 000 CZK |
| – | Heating and cooling equipment and parts | 61 734 000 CZK |
TOP CZECH EXPORTERS:
Skoda Auto
– An automobile manufacturer founded in 1895 under the name of Laurin & Klement, headquartered in Mlada Boleslav
– Uses the exclusive marketing services of Champion S.C.O. Car
– In Israel: Sales volume 14 387 in 2013 and 15 118 in 2014) – growth of 5%
– 5th largest importer in Israel
Moravia Steel and Trinecke Zelezarny
– Trinecke Zelezarny together with Moravia Steel and numerous subsidiaries ranks among the most significant industrial groups in Middle Europe. At present their products are exported to more than 60 countries all over the world
– In Israel their products are marketed exclusively by IAT International, Inc. – mainly for rail production
– Israeli Railways Ltd., a government company, contracts in the form of tenders – and Moravia Steel has successfully won tenders for many years, in 2015 as well
Subsidiary ŽDB
Patented and non-patented wire drawing plant, steel cords plant, etc.
Meopta-Optika
– A company that manufactures various products, mainly in the optical field. The company was founded in 1933 under the name Optikotechna in Prerov
– Meopta is a global manufacturer of precision optics, specializing in the design, engineering and assembly of complex optical, opto-mechanical and opto-electronic systems
– 80-90% of production is for export, including ca. 15% (ca. 400 mil. CZK) exports to Israel
ETD Transformátory
– based in Pilsen; designs, manufactures, tests, transports, installs and commissions world class power transformers by combining an engineering tradition with modern design and technology
– Examples of products: Three-phase power transformers, autotransformers, furnace transformers, etc.
Škoda Transportation
– An engineering company based in Pilsen. Its operations are in the area of transport engineering, manufacture of rail vehicles for urban and railway modes of transport, traction motors and drives for transport systems in the tradition of Skoda manufacturing plants. It has a strong footprint in the local and international market.
– In Israel: supplies locomotives and trams, among others.
Barum Continental
– One of the world’s leading automotive industry suppliers. A supplier of tires, brake control systems, driving dynamics control, driver assistance systems, sensors, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics and technical elastomers
– Imported to Israel by: Kislev International Ltd
Tatra Trucks
– One of the most veteran vehicle manufacturers in the world, situated in Kopřivnice
– Its core production programme includes heavy-duty off-road trucks and vehicles for combined off-road and on- road transport
– Important commercial territories traditionally include Russia, the former CIS countries, Israel, India, the countries of the Arab peninsula, Australia, the US and Europe
– Supplies to the Israeli Army – sand-coloured and military trucks, desert-equipped Tatra trucks, for example for anti-aircraft missile launchers
Dekonta
– A renowned Czech company providing a wide range of environmental services such as environmental emergency response services, consultation services, etc..
– Dekonta will continue to clean up contaminated areas in cooperation with the Israeli company SAR 17
Sellier & Bellot
– Produces a wide range of pistol, rifle, and shotgun ammunition for hunting and sports
– The major portion of products (over 85%) are exported and, in addition to the vast civil product range, the company manufactures special products for the armed forces.
Zentiva
– Provider of generics to the Sanofi group; the third largest and fastest growing generics company in Europe
– Holds leading positions in several pharmaceutical markets, such as the Czech Republic, Romania and Turkey, and is successfully expanding its business in other international markets
OPPORTUNITIES FOR CZECH COMPANIES
Field: Beer
- 22% annual growth of Czech beer imports:
- Exports of malt beers – in 2014: 41 387 000 CZK, in 2013: 33 972 000 CZK, in 2012: 26 224 000 CZK
- Czech companies are successful in the Israeli market – e.g. Budweiser Budvar, Nová Paka, Plzensky Prazdroj, Pivovar Nymburk, as well as liqueurs – Granette & Starorežná, Jan Becher, Rudolf Jelinek,
Company: Lobkowicz
- Strong brand and successful company (5th largest beer company in the Czech Republic)
- New strong investment partner – Chinese CEFC
- Seven breweries: Protivín, Uherský Brod, Jihlava, Rychtář, Klášter, Vysoký Chlumec and Černá Hora
Field: Military equipment and security technology
- Israel currently ranks among the largest importer of military equipment and the annual budget of the Israeli army currently exceeds 17 bn. USD
- Israel annually imports military equipment worth 2.8 bn. USD and non-military security technology for 550 mil. USD
Company: Eldis Pardubice s.r.o.
- Development and manufacture of radar technology and systems for air traffic control
Company: Glomex – MS
- Supplier of products and services to the police and armed forces of Central and Eastern Europe (night vision, combat identification, unmanned aerial reconnaissance vehicles, personal protection equipment for pilots, parachute systems and special aviation equipment)
Field: Rail transport and machinery
- Transportation systems (rail, public transportation systems, components) (tracks, signals etc.), vehicles (locomotives, train cars, trams, buses)
- Absence of major steel companies in Israel – Israeli companies must import locomotives, train cars, trams, buses and related components such as tracks and signals
- Infrastructure projects in Israel – expansion and renovation of the railway network, building bridges
- 132% annual growth of imports of Czech railway and tramway construction materials: in 2014: 238 859 000 CZK, in 2013: 102 565 000 CZK, in 2012: 58 274 000 CZK
Company: Amit Automation/Amit Transportation
- Develops and produces control systems and electronic components for industrial automation and for automation of buildings
- development and production of electronics for transport, especially rolling stock
Company: Cegelec
- Provides complex designs of electrical equipment for municipal mass transit systems. Traction equipment – drives of DC motors and AC motors (for the refurbishment of obsolete tramcars, trolleybuses and metro cars)
Company: Inekon
- · Production of new trams and wagons,
- Complete delivery of municipal transportation systems,
- Vehicle modernization,
- Construction, modernization and repairs of tram and railway track superstructures,
- Transportation systems, etc
Field: Gas and gas technologies
- Distribution technologies, equipment for processing gas, equipment and technology for the extraction, storage, processing and transmission of natural gas, construction and supply of equipment and components (pipes, valves, compressors)
- Newly discovered deposits of natural gas in the Mediterranean – an opportunity for producers of equipment for storing, transporting and processing natural gas
- Company: GasControl
- Research, production, assembly and service of gas pipelines, water supplies and sewerage equipment
- producer and supplier of gas regulation stations and supplier of gas pipelines/gas connections
CONCLUSION
According to the research there remain many opportunities for Czech companies that wish to expand their business activities into foreign countries. Also, the political and cultural Czech-Israeli cooperation puts exporters at an advantage. Then again, exporters must overcome some barriers, e.g. distance and consideration of their future activities in Arab markets.
It is important to consider choosing a local Israeli partner – distributor, a prerequisite for success in this market. In addition, don’t set the price too high, so that the Israeli partner will not withdraw from the negotiations immediately.
Regarding promising sectors, it is necessary to take into account Israeli plans and investments. There is the possibility of delivering goods for the transport, safety and engineering sector. There is also a potential in branches such as gas deposits, where Czech companies can export technologies and components.
As a startup nation, Israel offers possibilities for cooperation in the software industry. The successful Czech company Ysoft is operating in this field.
