14 August 2012

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/Motor_industry

eepcindia.org/bulletin/b20050810/OMI.pdf

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

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