Analysis of the Czech-Israeli export market

Post date: Oct 23, 2015 7:58:9 PM

Analysis of the Czech-Israeli export market

Trade 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.

Exported goods from the Czech Republic to Israel in 2014: CZK 13,7 b

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.


- 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


- 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.


- 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

Company: Lobkowicz

Field: Military equipment and security technology

Company: Eldis Pardubice s.r.o.

Company: Glomex – MS

Field: Rail transport and machinery

Company: Amit Automation/Amit Transportation

Company: Cegelec

Company: Inekon

Field: Gas and gas technologies


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.