Plzen - a Region of Opportunity
22.05.2008,
Located in southwestern Bohemia, the Plzen region borders the German state of Bavaria as well as four other regions of the Czech Republic – Karlovy Vary, Ústí, Central and South Bohemia. Covering 7,561 km² the Plzen region is the country’s third largest region in terms of land area, though it ranks ninth in population (555,491). The region’s seven districts (Domažlice, Klatovy, Plzen-city, Plzen-south, Plzen-north, Rokycany and Tachov) comprise territorial units that are substantially different from each other with regard to their landscape, demography, economic potential, and population density. Thirty percent of the region’s population lives in the city of Plzen, with the rest residing in a large number of smaller towns; there are no medium-sized cities in the region.
The Plzen region’s landscape is unusually diverse. From the Šumava Mountains and the Bohemian Forest on the western border with Bavaria to the Šumava foothills and undulating land of the interior, visitors will find beautiful countryside adorned with colourful towns and villages, abundant forests and bodies of water. The region partially encompasses the Křivoklátsko and Slavkovský protected landscape areas. The Šumava area is known variously as the green roof or the green heart of Europe thanks to its extensive forests. The border region’s forty years of isolation behind the Iron Curtain contributed to the preservation of this virgin landscape. The most significant part of this area is under the protection of the largest national park in the Czech Republic. The Plzen region’s landscape is remarkably diverse, giving both tourists and locals the opportunity to experience many natural wonders and historical monuments such as the Romanesque rotunda in Starý Plzenec, Rábí Castle, the Kozel Chateau, the monastery Kladruby and the convent in Plasy.
Industry and Investment
Mineral deposits, which represent the fundamental potential for development of the manufacturing industry, are concentrated in the interior of the Plzen region (around the city of Plzen). This refers to deposits of black coal, clay for ceramic and heat-resistance applications, and building stone. The region is very well suited to forestry and agriculture, as approximately half of its area comprises farmland. The Plzen region ranks second in the Czech Republic in terms of the total volume of logging, immediately behind the South Bohemia region.
One of the region’s important industrial sectors is mechanical engineering, which is primarily connected with the Škoda name (for example, Škoda Steel, Škoda Power, Škoda Nuclear Engineering). The main production portfolio includes equipment for conventional and nuclear power generation and the petrochemical industry, foundries and steelworks, heavy machine tools, equipment for rolling mills, rail vehicles, trolleybuses, etc. Other important industrial enterprises having an impact on the region’s economy are Dioss Nýřany, which is engaged mainly in the manufacture of batteries, Okula Nýrsko, a plastics processor and producer of lenses used in glasses, Lasselsberger ČR representing the ceramics industry, Solo Sirkárna in Sušice, the largest Czech match producer, and Sklárna Heřmanova Huť, focused primarily on the production of beverage glasses.
Thanks to its location, the Plzen region is attractive to foreign investors. Foreign investment in the region is dominated by the television manufacture Panasonic AVC Networks Czech Other important foreign firms operating in the region include the automotive-components manufacturer YAZAKI Wiring Technologies Czech, Vishay Electronic, a producer of electronic components, Alcoa Fujikura Czech with its production of electrical equipment, the plastic-products manufacture Borgers CS, MD ELMONT, a manufacture of insulated wire and cable, and Daikin Industries Czech Republic, which manufactures and repairs industrial cooling and air-conditioning equipment.
Home of World-famous Beer and Much More
The city of Plzen lies in the Plzen Basin at the confluence of four rivers – Mež, Radbuza, Úhlava and Úslava – forming the source of the Berounka River. Plzen is situated at the divide between the Šumava Mountains and the Bohemian and Brdský Forests. Thanks to its favourable location at the intersection of trade routes, the city of Plzen has always been an important commercial and cultural centre of the Plzen region. After the establishment of the Plzeňský Prazdroj brewery and the Škoda engineering works in the 19th century, the city’s importance grew even further. Today, it is the Czech Republic’s fourth biggest city, the site of two universities and an important industrial centre. The city is currently profiting from its advantageous geographic position in the centre of Europe, excellent highway connections to Prague and Germany (D5 highway) and its close proximity to Ruzyně International Airport in Prague. Plzen is traversed by the important Plzen – České Budějovice – Linz rail line. Beer has been brewed in Plzen since the middle ages and visitors to the city’s centre will find several historical buildings related to the brewing industry. The city brewery was founded in 1842 and began producing beer under the Pilsner Urquell brand, which has since become world-famous for its unique and robust flavour. Pilsner or Pils thus became the designation for high-quality, bottom-fermented pale lager enjoyed around the world.
Plzen – a City with Great Potential for the Future
Favourably situated between Prague and the Czech Republic’s western border, and with convenient transport connection on the newest Czech highway, young graduates of the University of West Bohemia and a well-developed industrial zone, the city of Plzen is strengthening its roles as a modern metropolis and attractive destination for investors.
Annually, 17,000 students are enrolled in seven faculties and two institutes at the University of West Bohemia, which thanks to Plzen’s industrial tradition is renowned for its technical fields of study. Here future engineers take courses in the electrical and mechanical engineering faculties, the faculty of applied sciences and the economics faculty. In addition, students can attend the pedagogical, law and humanities faculties, the Institute of Art and Design or the Institute of Lifelong Education. Besides the University of West Bohemia, the city is also home to the Faculty of Medicine of Charles University, where aspiring doctors study general medicine and dentistry. The city’s well-developed science and R&D base, together with its high-quality education infrastructure, ranks Plzen among the largest centres of education in the Czech Republic. As such, there is a high level of cooperation between local schools, research and development centres and businesses.
The city of Plzen has extensive experience with foreign investments and has played a major role in supporting the development of industrial zones. The area’s first industrial zone was Borská pole, where Panasonic was the first company to build a manufacturing plant in 1996. The zone currently hosts 44 companies, which have created nearly 13,000 jobs. While state-of-the-art electronics are produced in the factories of Panasonic AVC Network Czech and Yazaki Wiring Technologies Czech, for example, MBtech Bohemia (previously Mercedes-Benz Engineering) has a development centre here and Solectron Czech is also present in the zone.
Besides Borská pole, Plzen’s developed areas for manufacturing and services also include CTPark Borská pole-west, the Škoda Industrial Zone, Pilsen West Business Centre – Křimice, and others.
Thanks to public support from the city, additional sites intended for business support services are being prepared (for example, the Plzen Science and Technology Park, the Green Triangle-south Municipal Development Zone, Avalon Business Centre). Over the past five years, the Plzen region has managed to attract investments in research and development and business support services worth more than CZK 1 billion.
Industrial zones are also being developed in the region’s outlying towns. Klatovy, Rokycany, Nyřany, Nepomuk, Nýrsko, Sušice and others represent new and interesting opportunities for investors.
Source: CzechInvest, 2007
Source: CzechInvest 2007
Blanka Hrdličková, CzechInvest
| Area: | 7,561 km2 |
| Population (2007): | 555,491 |
| Population density: | 73.46 (person/km2) |
| Unemployment rate (January 2008): | 4.6% |
| GDP (2006): | EUR 5,745 mil. |
| Regional capital: | Plzen |
Source: Czech Statistical Office 2006, City Invest 2006 - 2007
The Green Heart of Europe
The Plzen region’s landscape is unusually diverse. From the Šumava Mountains and the Bohemian Forest on the western border with Bavaria to the Šumava foothills and undulating land of the interior, visitors will find beautiful countryside adorned with colourful towns and villages, abundant forests and bodies of water. The region partially encompasses the Křivoklátsko and Slavkovský protected landscape areas. The Šumava area is known variously as the green roof or the green heart of Europe thanks to its extensive forests. The border region’s forty years of isolation behind the Iron Curtain contributed to the preservation of this virgin landscape. The most significant part of this area is under the protection of the largest national park in the Czech Republic. The Plzen region’s landscape is remarkably diverse, giving both tourists and locals the opportunity to experience many natural wonders and historical monuments such as the Romanesque rotunda in Starý Plzenec, Rábí Castle, the Kozel Chateau, the monastery Kladruby and the convent in Plasy.Industry and Investment
Mineral deposits, which represent the fundamental potential for development of the manufacturing industry, are concentrated in the interior of the Plzen region (around the city of Plzen). This refers to deposits of black coal, clay for ceramic and heat-resistance applications, and building stone. The region is very well suited to forestry and agriculture, as approximately half of its area comprises farmland. The Plzen region ranks second in the Czech Republic in terms of the total volume of logging, immediately behind the South Bohemia region.One of the region’s important industrial sectors is mechanical engineering, which is primarily connected with the Škoda name (for example, Škoda Steel, Škoda Power, Škoda Nuclear Engineering). The main production portfolio includes equipment for conventional and nuclear power generation and the petrochemical industry, foundries and steelworks, heavy machine tools, equipment for rolling mills, rail vehicles, trolleybuses, etc. Other important industrial enterprises having an impact on the region’s economy are Dioss Nýřany, which is engaged mainly in the manufacture of batteries, Okula Nýrsko, a plastics processor and producer of lenses used in glasses, Lasselsberger ČR representing the ceramics industry, Solo Sirkárna in Sušice, the largest Czech match producer, and Sklárna Heřmanova Huť, focused primarily on the production of beverage glasses.
Thanks to its location, the Plzen region is attractive to foreign investors. Foreign investment in the region is dominated by the television manufacture Panasonic AVC Networks Czech Other important foreign firms operating in the region include the automotive-components manufacturer YAZAKI Wiring Technologies Czech, Vishay Electronic, a producer of electronic components, Alcoa Fujikura Czech with its production of electrical equipment, the plastic-products manufacture Borgers CS, MD ELMONT, a manufacture of insulated wire and cable, and Daikin Industries Czech Republic, which manufactures and repairs industrial cooling and air-conditioning equipment.
Home of World-famous Beer and Much More
The city of Plzen lies in the Plzen Basin at the confluence of four rivers – Mež, Radbuza, Úhlava and Úslava – forming the source of the Berounka River. Plzen is situated at the divide between the Šumava Mountains and the Bohemian and Brdský Forests. Thanks to its favourable location at the intersection of trade routes, the city of Plzen has always been an important commercial and cultural centre of the Plzen region. After the establishment of the Plzeňský Prazdroj brewery and the Škoda engineering works in the 19th century, the city’s importance grew even further. Today, it is the Czech Republic’s fourth biggest city, the site of two universities and an important industrial centre. The city is currently profiting from its advantageous geographic position in the centre of Europe, excellent highway connections to Prague and Germany (D5 highway) and its close proximity to Ruzyně International Airport in Prague. Plzen is traversed by the important Plzen – České Budějovice – Linz rail line. Beer has been brewed in Plzen since the middle ages and visitors to the city’s centre will find several historical buildings related to the brewing industry. The city brewery was founded in 1842 and began producing beer under the Pilsner Urquell brand, which has since become world-famous for its unique and robust flavour. Pilsner or Pils thus became the designation for high-quality, bottom-fermented pale lager enjoyed around the world.Plzen – a City with Great Potential for the Future
Favourably situated between Prague and the Czech Republic’s western border, and with convenient transport connection on the newest Czech highway, young graduates of the University of West Bohemia and a well-developed industrial zone, the city of Plzen is strengthening its roles as a modern metropolis and attractive destination for investors.Annually, 17,000 students are enrolled in seven faculties and two institutes at the University of West Bohemia, which thanks to Plzen’s industrial tradition is renowned for its technical fields of study. Here future engineers take courses in the electrical and mechanical engineering faculties, the faculty of applied sciences and the economics faculty. In addition, students can attend the pedagogical, law and humanities faculties, the Institute of Art and Design or the Institute of Lifelong Education. Besides the University of West Bohemia, the city is also home to the Faculty of Medicine of Charles University, where aspiring doctors study general medicine and dentistry. The city’s well-developed science and R&D base, together with its high-quality education infrastructure, ranks Plzen among the largest centres of education in the Czech Republic. As such, there is a high level of cooperation between local schools, research and development centres and businesses.
Development of Industrial Zones and Business Support Services
The city of Plzen has extensive experience with foreign investments and has played a major role in supporting the development of industrial zones. The area’s first industrial zone was Borská pole, where Panasonic was the first company to build a manufacturing plant in 1996. The zone currently hosts 44 companies, which have created nearly 13,000 jobs. While state-of-the-art electronics are produced in the factories of Panasonic AVC Network Czech and Yazaki Wiring Technologies Czech, for example, MBtech Bohemia (previously Mercedes-Benz Engineering) has a development centre here and Solectron Czech is also present in the zone.
Besides Borská pole, Plzen’s developed areas for manufacturing and services also include CTPark Borská pole-west, the Škoda Industrial Zone, Pilsen West Business Centre – Křimice, and others.
Thanks to public support from the city, additional sites intended for business support services are being prepared (for example, the Plzen Science and Technology Park, the Green Triangle-south Municipal Development Zone, Avalon Business Centre). Over the past five years, the Plzen region has managed to attract investments in research and development and business support services worth more than CZK 1 billion.
Industrial zones are also being developed in the region’s outlying towns. Klatovy, Rokycany, Nyřany, Nepomuk, Nýrsko, Sušice and others represent new and interesting opportunities for investors.
| Investor | Sector | Country of origin | Investment (CZK mil.) |
| Panasonic | electronics | Japan | 6,913 |
| Daikin | electronics | Japan | 2,977 |
| ŠKODA TRANSPORTATION | electronics | Czech Republic | 1,395 |
| ŠKODA POWER | engineering | Czech Republic | 882 |
| OLHO - Technik Czech | electronics | Germany | 822 |
| ŠKODA TRANSPORTATION | automotive | Czech Republic | 803 |
| Koyo | automotive | Japan | 788 |
| PROWELL | paper | Germany | 736 |
| Precision Castparts CZ | engineering | USA | 684 |
| DAIHO (CZECH) | plastics | Japan | 618 |
| Mercedes-Benz | automotive | Germany | 95 |
Source: CzechInvest, 2007
Source: CzechInvest 2007
Blanka Hrdličková, CzechInvest