Analysis of the Czech-Israeli export market

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.