28 / August / 2008

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Inward Investment

A Complete Project Management Service

Inward Investment


At the heart of Alpha’s business in Central Europe lies services for foreign investors wishing to take advantage of the benefits of manufacturing in, selling to and purchasing from the region.  With labour costs of 1/3 to 1/4 of Western rates, high work ethic and productivity, adjacent to mainland European markets and with transport to home markets readily available, it is no surprise that Central Europe has seen dramatic growth in inward investment in the last decade.

 

Most businessmen are aware of the investments of great companies such as Siemens, VAG and Microsoft but many may not be familiar with the successes of smaller companies.  These companies usually invest because:

 

  • Pressure from customers makes a lower cost manufacturing solution imperative
  • One or more major customers has moved into the region
  • They understand the importance of the existing Western European markets and the potential for sales into Central and Eastern Europe from a low cost base
  • Servicing client needs in Mainland Europe is more effective from Central Europe
  • Highly educated and motivated staff are available for research centres and servicing centres

 

Alpha has supported more than 25 major investments by foreign companies in Central Europe.  These projects have covered manufacturing facilities, sales and distribution centres, research and service centres and repair centres.  Clients have come from the UK, USA, Germany, Holland, Italy, Spain, Portugal and Austria.

 

Alpha has a unique process for supporting clients from ‘business idea’ to ‘post implementation’.  Normally a package deal is agreed between the Client and Alpha although, of course, some elements can be eliminated from the process as the Client wishes.  Simplistically, the process consists of:

 

  • Assistance with the feasibility study, business plan, programme and expenditure control.  This may start with a simple visit to a Client to determine whether or not the Client’s operations and forward strategy could take advantages of the Central European environment
  • Setting up a local legal entity, often based initially in Alpha’s offices with an experienced member of Alpha’s staff taking responsibility as first ‘executive’ of the new company.  This element includes obtaining trade licences, setting up local internet banking accounts and all local ‘bureaucracy’
  • Recommending the optimum location depending on labour and distribution needs, availability of grants and Government support, finding greenfield or brownfield sites and putting together a developer short list
  • Negotiating purchase or lease terms, agreeing building or renovation plans and monitoring construction progress
  • Recruiting Top Team executives
  • Recruiting workforce
  • Supporting the introduction of company procedures in line with local requirements
  • Arranging bookkeeping and payroll services on a temporary or permanent basis
  • Arranging equipping from foreign and local sources
  • Supporting the granting of operating licences
  • Where appropriate, applying for and managing grant applications.  Alpha has a 100% success record in this area with grants exceeding EUR 20 millions awarded to our clients
  • … and carrying out 1001 trivial (and not so trivial) tasks during the project
  • At convenient points during the project handing over responsibility to Client’s newly appointed staff

 

The benefits of using Alpha’s services are clear.  Overall project costs and timescales are minimised as is project risk. The Alpha experience is progressively handed over to Client staff, foreign and local.  Project ‘blind alleys’ are avoided and proper legal and commercial processes are followed smoothly and without fuss.

 

Alpha is able to offer a monthly fee for the complete package except for staff and worker recruitment (fixed fee per person recruited) and grants (success fee when grant is received by Client)

 

Projects in 2007 have included:

 

  • American Safety Razor Inc: a major purpose built manufacturing facility supported by grants under the Czech Government’s Manufacturing Scheme
  • PA Business Systems Ltd: a new building with 150 workers and staff carrying out electronic repairs supported by grants under the R&D, repair and service centres scheme
  • Swallowfield plc: a new cosmetics preparation facility with regional sales operation
  • Jeyes Group Ltd: the completion of a project of procurement, manufacturing, and assembly in a new building shared with their logistics provider. Very significant grants were obtained under the ‘Creating Employment’ scheme
  • Roscomac Ltd: establishment of a CNC machine shop, in support of a key client who had relocated to the region 

 

If you wish to know more about the opportunities in the region, please contact us at rodney.yeadon@alpha.cz (UK) or angus.mathews@alpha.cz (Czech Republic). 

We will be pleased to arrange a meeting to suit your requirements

 
 

Case Studies