From left: GK Sepelak, Mr. Prochazka, Ms. Somolova, Governor Northam, Mr. Barnett, Mr. Scott Photo: Marino Radacic
The Consulate General of the Czech Republic in Los Angeles supports Czech companies seeking the best investment incentives in the United States.
Meeting between HE3DA USA and the Governor of Virginia and his associates at the Consulate General of the Czech Republic.
On October 23, 2018, Virginia Governor Ralph Northam and his associates Mr. Scott and Mr. Barnett met GK Pavol Sepelak, Mr. Radacic and representatives of the Czech company HE3DA, Jan Prochazka and Lenka Somolova. The meeting took place at the office of the Czech Republic Consulate General in Los Angeles.
The Consulate General promoted the Czech Republic’s advanced state of knowledge in disruptive technologies, such as power storage available through HE3DA. The global reach of this innovation is critical, and when investing abroad, the Economics Consulate assists companies in finding engaging incentives.
From Virginia’s perspective, companies like HE3DA USA represent enormous potential as they will assist in the development of future energy solutions creating well-over 700 new job opportunities. Thanks to long-term efforts, the state has managed to overcome dependence on agriculture and is one of the primary technology pioneers in the United States, focusing specifically on computer tech, micro-chips, military technology, and data centers.
On the west coast, Czech companies invest primarily in the field of information technology, traditionally settling in Silicon Valley, where currently, they have created dozens of jobs. Companies with czech roots such as AVAST, STRV, Kerio, or GoodData with a permanent presence in the U.S. market, attribute their success as a direct reflection of their foundation with the Czech Republic where they can continually expand and invest their R & D. This is why it is in the best interest of the Czech government to further support Czech companies in their efforts to invest and expand in the U.S.
Similarly, CzechInvest provides incentives to foreign companies investing in the Czech Republic. The vast majority of individual states or cities - especially those trying to modernize one-sided agricultural or mining-oriented industries, provide a variety of incentives usually including tax breaks, incentives, or assistance in searching for employee re-training site and support.
Individual states also compete with offers of infrastructure construction, or in general, tax breaks, ease of administration, business environment, and bureaucratic burdens.
For Czech companies considering investing in the U.S., it is important to take into account not only local taxes and incentives, but also factors such as proximity to clients, logistics, the complexity of transport to and from Europe, and the proximity of transport hubs. The availability of an educated workforce, energy costs, and local prices can differ significantly across the U.S. Details of the country's incentives are now openly available on the internet, usually on websites of specialized agencies under the authority of the individual governors, e.g. Nevada's support outline is on the Diversify Nevada website - www.diversifynevada.com. Arizona's is on Arizona Commerce Authority - www.azcommerce.com. Utah is available on the Governor’s Office for Economic Development – www.business.utah.gov etc.
In addition, individual cities compete for interesting investments - which, thanks to their large populations, also have relative autonomy beyond the weight of some of countries, e.g. the metropolitan area of Los Angeles has nearly 14 million inhabitants and is keen to attract technology investments, from other parts of the United States as well as the rest of the world. Details of the Los Angeles offer are available, for example, at World Trade Center Los Angeles: www.wtcla.org. Meanwhile, the City of San Diego specifically seeks to invest in biotechnology, concentrating in that area.
HE3DA USA is interested in building a U.S. production capacity, and planning to make a quick decision on the factory’s location based on the final incentive package proposals from each state. From HE3DA’s point of view, Virginia’s large port and proximity to Europe are major advantages. Virginia also offers a broad and educated workforce.
On the other hand, Nevada lays in the proximity of potential clients (particularly from California, all preparing for a complete switch to non-emission sources by 2045 requiring nearly 200 times more battery power storage), The weather conditions and constant dry climate are also important for the operation of a potential battery plant.
The Consulate General of the Czech Republic in Los Angeles is always ready to help Czech companies considering investing in the U.S. by consulting or assisting in contacting individual government agencies.