Does your investment made the best choice in CEE countries? Part2 (Cont’d)

No.4: Aircraft industry

There are not too many aircraft industry in CEE countries, but in some typical country it has relative advanced technology in manufacturing aircraft.

Czech Republic:

It mainly provides civil aircraft, light sport aircraft and private aircraft, the average annual production is 550 light aircrafts and sport aircraft also 1400 aircrews. It holds the whole intellectual property, 80%of its production are exported. It is the second largest aircraft producing country which after Germany. Recently, the new aircraft such as light fighter, sport airplane, glider and air traffic control system has become the main production in Czech aircraft industry. Nowadays, there are 7 main aircraft manufacturers, the biggest two are Aero Vodochody and Evektor-Aerotechnik.

Poland:

Poland starts its aircraft industry since the beginning of 20 century. It has high technology in aircraft repairing and producing. There are around 55 enterprises of aircraft producing in Poland, which mainly exports to America, Venezuela, Italy, Greece, Canada, Spain, Germany, Korea, Indonesia, Vietnam and Iraq. For the most important is the education resources there, for example they have a university called Rzeszow University of Technology, they set there a high-tech center. On the other hand, Poland has potential in repairing and maintaining. Till 2006, there are 28 enterprises in Poland have got the Part-145 aircraft repairing certificate.

Slovakia:

In Slovakia, it has a solid foundation in mechanical manufacturing industry, the most advanced technology is DV-2 engine which is widely used in trainer aircraft.

 

No.5: Viniculture

You can find pretty nice weather and comfortable climate there in CEE which is good for producing grape wine also they have long history in viniculture. Romania, Bulgaria, Hungary, Czech, Serbia and Macedonia are all the famous wine country.

Hungary:

Hungary has long history in producing grape wine, the variety and quality of grapes are quite high in Hungary. The famous grape wine as we can count are Bikaver, Tokajiaszu, Ekfrakos,Liszt’s favorite Kdarka and so on. For the Tokajiaszu is the well known world sweet wine. The royal France call it the king of the wine.

Bulgaria:

Bulgaria is pretty rich in producing grapes, as one of the top 15 wine producing countries, wine-making industry has become an important traditional industry. The Vinaria exhibition of Plovdov will take place every year in Bulgaria, it is the largest exhibition in CEE countries. The president of Bulgaria says wine is the image of its country and it is the main feature of its national economy. There are 255 enterprises have registered in the national grape and wince association. The main export markets are Russia, Poland, Germany, UK and Czech.

Romania:

Romania is one of the biggest world wine producing countries. They call themselves “the land of wont”. It is well-known by its quality and designing, especially Feteasca regala and Recas are the most favorable wine. The main manufactures are Vincon in Varabcea, Murfatlar, Halewood Group.

Hope you will know more about CEE countries after read this article, and does your investment made the best choice?

Source:

http://en.wikipedia.org/wiki/Central_and_Eastern_Europe

http://en.wikipedia.org/wiki/Motor_industry

eepcindia.org/bulletin/b20050810/OMI.pdf

www.iese.edu/research/pdfs/DI-0920-E.pdf

Does your investment made the best choice in CEE countries？(Part1)

As we know the Central East Europe contains Poland, Hungary, Czech, Slovakia, Slovenia, Romania, Bulgaria, Serbia, Croatia, Bosnia etc. 13 countries with total area 117 square kilometers, population over 120 million which has total GDP around 0.9 billion dollar, total foreign trade 0.89 billion dollar. This area has pretty strong foundation in various industries such as motor industry, generating equipments, mining as well as aircraft manufacturing, shipbuilding, even on biotechnology, pharmacy and also has advantage in producing agricultural products and grape wine.  All of these industries experienced a rapid development since 7 of them (Poland, Hungary, Czech...) entered the EU, and becoming more competitive.

From now on, let me specifying some dominant industries and put them into these main CEE countries which has dominant in each industry as well.

No.1: Motor industry

Czech Republic:

Since the data shows motor industry already has over 100 years history in Czech Republic, it is the most important department in processing industry there. It also takes 20% in its economy which makes car being the major export product and the export has topped 9% of the total export in Czech. Škoda is the main place they produce cars, its annual output has reached 500,000 cars and selling to all over the world, obviously it became the bellwether in its field. Nowadays, the first car “Octavia” which corporate with Shanghai Volkswagen was coming to the market. Not only in small cars but coach has taken a competitive position in West European market. We can see the biggest coach producing factory is Karosa there.

In addition, more than 40 car manufacture out of the top 100 has set the branches in Czech.

Poland:

Since 1990, the motor industry has developed well in Poland by absorbing foreign investment. The output of cars and export continuously increasing, the product quality and level of skills has improved as well, Poland became the No.8 car-making country in Europe, just after Russia, Czech and Sweden. The three biggest manufacturers are Fiat, Opel and Volkswagen which are well-known by all of us. The high criteria for fitting technology and various devices to choose give incentives for famous company investing there.

Slovakia:

Motor industry takes a pretty important strategic position in Slovakia. Volkswagen AG is the most powerful enterprise there, some well-known manufacturers like the PSA from France and the Kia from Korea has also invest plants there. In 2006, these three manufacturers has producing 295390 cars in total which occupies 28.4% of total industrial output. Except investing in plants, the fittings became attractive too, the investment of fitting keeps climbing. The worldMarkets Research Centre(WMRC) says Slovakia and India, Thailand, Iran as well as Czech are the most attractive countries of motor industry, they will be the center for developing new cars in the near future.

Hungary:

Motor industry is a traditional industry in Hungary. Since 90s of 20th century, car and its fitting industry got rapid development and became the main pillar of Hungarian motor industry, the foreign investment takes a huge portion. In 1992, the Suzuki from Japan set the first manufacturer in Hungary, then Opel Germany in 1994, Audi in 1997. Audi started car assembling since 1998 but not just producing the engine. The General Motor is producing automobile gearbox for all European countries as well as exporting to China.

Romania:

The industrial base in Romania is very well. It mainly has Dacia, Oman, Roman Corporation. Dacia started producing Renault(Romania) and named it as DACIA 1300, this car kept its production around 35 years. In 1999, Renault purchased Dacia, and then produced SuperNova and Solenza in 2000 and 2003. In 2004, Dacia offered an economic car which called Logan, it was acclaimed by the market. However the Roman Corporation stopped its production under a fierce competition in the market, now they are looking for the substitution.

All of these helped CEE countries in increasing more working position.

No.2: Environmental Protection Technology and Equipment:

In CEE countries for example Hungary, Czech and Slovakia, they have pretty high level in dealing with industrial sewage, waste disposal and microbiological treatment.

        Here I mention the R-AN-D-N technology from Czech, which is widely used in different area. Also the USBF technology to processing the sewage, it has applied in so many countries such as USA, Germany, Italy, Canada, Spain and so on.

No.3: Pharmacy

Hungary:

It has more than one year history and it became one of the most competitive industry in Hungary.

There are more than 20 pharmaceutical factory, The biggest one IS Richter Gedeon. This company has over 100 products and 140 kind of preparation. This company has its own R&D department and producing medicine by their own, these products can apply for all the therapeutic area. Two third of its products has sent to over 100 countries.

Egis pharmaceutical factory is the second biggest one in Hungary which has a long history.

Chinoin ranks the third one, it exporting its products to more than 80 countries.

See more please check the following article（part2).

Source&Links:

http://en.wikipedia.org/wiki/Central_and_Eastern_Europe

http://en.wikipedia.org/wiki/Motor_industry

eepcindia.org/bulletin/b20050810/OMI.pdf

www.iese.edu/research/pdfs/DI-0920-E.pdf

Is it hard to creat the superiority of Chinese talent in electronic industry?

It is quite a controverisal topic to mention, people will ask “is there any superiority of talents in China” rather than “is it hard to create it in China”.

Since China do not take any advantage in high end electronic core technology, furthermore, we can say China has pretty huge gap in core technology comparing with others such as a country like United States. However, a lot of skilled worker appears there with the trend that global electronics manufacturing industry shifting to China. The scale-up pattern let China got the talent advantage consequently.

The multinational semiconductor suppliers are saying China has the smartest electronics engineer as we can always see from the articles and magizines. However it does not mean China holds the competitive advantage even if they have amount of skilled workers (or people call them blue collar workers) in electronic designing.

Nowadays do you know what are these skilled engineers doing everyday? Repeating amount of similar designing work or making the so called creative product which driven by latest devices. There are several electronic devices to choose on the prefect competition market, the engineers just need to follow the white book then apply any kind of device into their product. Although the various devices provide better choice, it is not good for Chinese engineers to make deeper research in a certain chip or a single component. Of course the new ideas to make amazing product appearing every single moment in their mind, however they lost the chance to compete in the market just because the use and choose of device is not serious enough so that the costs are not effectively saved.

For this let’s see an example, the iPhone from Apple. People dismantled iPhone found there are not such new or advanced components, while all the components can be found on the market and available, the only difference is the engineer put more efforts and deeper technical analysis into it. Finally, iPhone comes to our life, the society accept it.

  

Well, think from another side, abundant skilled engineers provides a stable basis for the development in  electronic industry, if you are an investor, trust them coz as long as some of their engineers start to look deeper, focusing on a specific area, you will see the great effect; if you are an emerging country as well, the situation in China will let it be a worthy opponent; if you are just a bystander, well then let’s wait and see, no one knows better than the market.