Electrotechnical, Electronics and ICT Industryin SLOVAKIA

Association of Electrotechnical Industry of the Slovak Republic

SLOVAKIA – The Heart of the Europe

Source: SARIO

Area (km2): 49,035

Population: 5,380,000

Population density: 109.7 persons/km2

Capital city: Bratislava

ZEP SR is the Member of: National Union of Employers of the Slovak Republic (RUZ)Industry Associations of Slovakia (ZPS)Entrepreneur Association of Slovakia Scientific and Technological Parks ŽilinaInternational organization INTERELEKTRO, Moscow

ZEP SR cooperates with all Universities and their Electrotechnical Faculties in Slovakia

ZEP SR Today

ZEP SR was established in 1991.

ZEP SR is the largest and the most significant representative of employers in electrotechnical, electronics and ICT branch and the only partner for negotiations of

the Higher Level Collective Agreement with the Trade Union KOVO.

President

Vice-Presidents

Secretary General

ZEP SR Representatives

Vlado Kalina

Ján Badžgoň

Castor & Pollux

Bratislava

Peter Kollárik

Siemens

Bratislava

Jozef Dušan Hric

TESLA

Liptovský Hrádok

The membership in the Association currently includes

60 Electrotechnical and ICT Companies, 7 Members-observers,

4 Universities and 6 Secondary training institutions aimed at

electrotechnics and ICT.

No. Total Takings in 2006 (thousands SKK)

5. Samsung Electronics Slovakia, s.r.o., Galanta 85 767 180

10. Sony Slovakia, s.r.o., Trnava 20 907 843

40. SE Bordnetze – Slovakia, s.r.o., Nitra 7 174 044

46. BSH Drives and Pumps, s.r.o, Michalovce 6 419 929

51. Panasonic AVC Networks Slovakia, s.r.o., Krompachy 6 066 781

64. Yazaki Wiring Technologies Slovakia, s.r.o., Michalovce 4 728 702

66. Emerson, a.s., Nové Mesto nad Váhom 4 668 885

67 Leoni Autokabel Slowakia, s.r.o., Trenčín 4 545 852

77. Emerson Electric Slovakia, s.r.o., Nové Mesto nad Váhom 4 063 659

98. Delphi Slovensko, s.r.o., Senica 2 837 961

115. Osram Slovakia, a.s., Nové Zámky 2 540 167

119. Universal Media Corporation (Slovakia), s.r.o., N. Mesto nad Váhom 2 452 214

120. Panasonic Electronic Devices Slovakia, s.r.o., Trstená 2 443 837

121. Yazaki Slovakia, s.r.o., Bratislava 2 434 947

154. SEWS Slovakia, s.r.o., Topoľčany 1 966 400

170. ABB, s.r.o., Bratislava 1 719 766

194. ON Semiconductor Slovakia, a.s., Piešťany 1 409 750

Order in TOP 200 chart by Total Takings

The most Significant Producers in Slovak Electrotechnical Industry

Company Total Takings Quantity of (billions EUR) Workers

Samsung Electronics Slovakia 2,6 1 912

Sony Slovakia 0,6 1 695

Siemens Osram Slovakia 0,07 1 783BHS Drives and Pumps 0,2 979

SE Bordnetze – Slovakia 0,2 3 401(Sumitomo Electric Industies)

Delphi Slovakia 0,08 1 988

Emerson 0,1 1 119Emerson Electric Slovakia 0,1 1 124

Production of the Most Significant Electro-Producers in Slovakia

Samsung Electronics LCD monitors, plasma, printers, Slovakia MP3s, home-cinemas

up to 10 million LCD modules

Sony Slovakia 3 million LCDs TV-Bravia (in 2008)

Siemens Osram Slovakia 5 000 types of products

revenues: SKK 2,7 billion in 2006 / 2007

BHS Drives and Pumps about 5 million electro motors for BOSCH per year

SE Bordnetze – Slovakia optical fiber and electric cords (SKK 7 billion)

Index Unit 2001 2002 2003 2004 2005 2006

%

2005-2006

Total Sales mill. SKK

57 732 65 647 76 099 107 021

155 665

212 536 136,5

Export bill. SKK

62,0 68,4 85,1 115,1 163,1 242,9 148,9

Foreign Trade Balance bill. SKK -33,5 -34,8 -34,8 -15,6 -0,03 30,1

Value Added mill. SKK

14 833 16 408 16 780 19 316 23 986 30 341 126,5

Average Number of Workers

pers. 43 012 46 511 50 630 54 018 59 807 60 586 101,3

Average Monthly Wage SKK 12 640 13 166 13 765 15 238 16 336 21 713 132,9

Profit / Loss mill. SKK

3 073 2 953 4 853 2 956 3 814 7 903 207,2

Slovak Electrotechnical Industry (EI) in years 2001 - 2006

• The industry creates more than 12% of the value added created by the manufacturing industry• Gradual growth in value added in manufacturing output of existing investors (Samsung, Sony)• Positive trend in productivity growth• One of the few industrial sectors with employment growth (about 15-20% p.a.)• Manufacturing output characterized by dynamic growth, doubled since 2000• Business model with municipalities seeking out and negotiating directly with investors proved successful • Positive manufacturing experience of investors in Slovakia leads to manufacturing capacity expansion

Negatives:• Value added and productivity is relatively low at the moment• Sector has negative net but shrinking foreign trade gap

The Current Situation of the Electrotechnical Industry within the Economy and Industrial Manufacturing

Sector of the Slovak Republic

• The electrotechnical industry is currently one of the largest employers of the manufacturing sector as well as the producer of the second highest value added in industrial manufacturing.

• Electrotechnical industry growth was the fastest of all industrial manufacturing sectors since the year 2000.

• The share of the value added of the electrotechnical industry on the overall value added of the manufacturing industry increased from 9.07 % to 12.48 % since 2001.

• Car manufacturing can be partially credited for this development, creating demand for manufacturing of optical and electrotechnical products.

• There is increasing evidence of higher value added structure in the manufacturing sector as more foreign investors transfer in their higher value added services, which represent the backbone of a modern economy.

The Current Situation of the Electrotechnical Industry

1999 10 917 million SKK

2000 13 010 million SKK

2001 14 833 million SKK

2002 16 408 million SKK

2003 16 780 million SKK

2004 19 316 million SKK

2005 23 986 million SKK

2006 30 341 million SKK

0

5000

10000

15000

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1999 - 2006

19992000200120022003200420052006

Value Added in Electrotechnical Industry

(1999 – 2006)

Employment in Electrotechnical Industry of the Slovak Republic in 2001 - 2006

• The number of employees grew by 32% since 2001, representing the third fastest employment growth rate in the manufacturing industry.

• The largest share of employees is in the electric equipment and instruments (68%) sub-sector.

• Average wages in electrotechnical industry increased by 5.4% in 2006 to SKK 17,952.

• The most significant factor in 2006 was the continuing inflow of foreign direct investment.

Import

Export

Quantity of Workers and Productivity of Labor

in Electrotechnical Industry

    2006 2005%

2006/05 2006 2005%

2006/05

1. Leoni Autokabel Slowakia, s.r.o., Trenčín 3 693 3 837 -3,8 316 300 5,1

2. SE Bordnetze–Slovakia, s.r.o., Nitra 3 401 3 025 12,4 323 311 3,8

3. Kromberg & Schubert, s.r.o., Kolárovo 2 385 2 850 -16,3 332 310 7,2

4. Delphi Slovensko, s.r.o., Senica 1 988 2 046 -2,8 354 550 -35,7

5.

Yazaki Wiring Technologies Slovakia, s.r.o., Michalovce 1 974 n n 367 n n

6. Samsung Electronics Slovakia, s.r.o., Galanta 1 912 1 641 16,5 7 198 3 231 122,8

7. Osram Slovakia, a.s., Nové Zámky 1 783 1 664 7,2 453 489 -7,5

8. Emerson Electric, s.r.o., Nové Mesto n. Váhom 1 124 1 127 -0,3 569 499 14,1

9. Panasonic Electronic Devices Slovakia, s.r.o., Trstená 1 121 1 058 6,0 350 398 -12,1

10. Emerson, a.s., Nové Mesto nad Váhom 1 119 990 13,0 551 682 -19,3

11. Panasonic AVC Networks Slovakia, s.r.o., Krompachy 1 102 963 14,4 644 498 29,3

12. BSH Drives and Pumps, s.r.o, Michalovce 979 923 6,1 n n n

13. ON Semiconductor Slovakia, a.s., Piešťany 583 495 17,8 899 1 015 -11,5

14. Semikron, s.r.o., Vrbové 493 346 42,5 536 380 40,9

19. Elteco, a.s., Žilina 316 287 10,1 545 561 -2,9

Quantity of Workers Value Added (Q. of workers / thousands SKK)

Since 1995, ZEP SR is the co-organizer

of the International Fair of Electrical

Engineering, Electronics and Power

Engineering ELO SYS where ZEP SR

have been awarding:

- Electrotechnical Product of the Year

- The Best Exhibit of the ELO SYS Fair

- The Designer of the year

- The Unique Product of the year

(with USD 2 000 prize) for product

at patent or invention level.

There were 374 exhibitors in the Elo Sys 2007

fair (8 companis from EU and Japan)

ELO SYS 2007

(The Unique Product of the year 2007 - VUJE)

High–tech and Middle–tech in Slovak Electrotechnical Industry

1. Slovak power electrical engineering and electronic is comparable to EU level.

* Electro-insulating materials and systems in electrical engineering could be evaluated in more detail, because they are hidden in final products, mostly. For example amorphous metals developed in the Slovak Academy of Sciences (beside USA, Germany and Japan) ranked us among the best workshops in the World.

* Regulating and control engineering developed in Slovakia (directly to transport systems for EU partners mostly) are extremely successful.

2. In comparison with USA there are several problems: different technical standards, system frequency and voltage.  

3. In comparison with Japan the situation is very similar. Power electrical engineering, electro-insulating materials and systems,

regulating and control engineering are at the knowledge level.

The main mission of SARIO is to contribute to the acceleration of economic growth of the Slovak Republic and to improve the quality

of life in Slovakia - SARIO achieves this goal by presenting the economic environment of Slovakia, attracting foreign direct investments and

developing of the FDI projects up to their final stage.

www.sario.sk

Slovak Investment & Trade Development Agency

Kominárska 2-4, 831 03 Bratislava, SlovakiaTel: +421 2 502 34 259 (905 756 791), Fax: +421 2 502 34 507

zep@zep.sk, kalina@zep.sk

www.zep.sk

Association of Electrotechnical Industry of the Slovak Republic

Mgr. Vlado Kalina

Secretary General