Big Business Comes to Little Liberec: KPMG, Jablonex and other top firms enrich this region

The Liberec region, with its strong and proud tradition in manufacturing and engineering, has proven an attractive location for local and international companies alike. It’s no coincidence that one of the most internationally respected audit and consulting firms KPMG established an office in the region as early as 1993. Says Liberec mayor, Mr. Jiří Kittner of the city’s historical work ethic: “Liberec has avery strong history, tradition, and know-how in textile production and textile engineering. After the revolution and throughout the 1990 s textiles were replaced by the auto industry. The workforce was well-qualified: great technically skilled engineers andindustrious worker bees on the machines”. A man who is today synonymous with world-class engineering and manufacturing, Ferdinand Porsche, was born in the area and spent his early educational years in Liberec. Porsche may have moved on to greener pastures in Stuttgart, but many other companies have remained or come along to set up shop on Ferdinand’sold stomping grounds.

One successful company that has called Liberec home for decades, and still remains true to its roots, is Jablonex, atraditional manufacturer of glass and jewelry. Having recently merged with a number of companies to create the Jablonex Group a. s., it now totals over 2,500 employees and an annual turnover of over 2 billion CZK. With offices all over the world and luminaries and starlets such as Grace Kelly, Catharine Deneuve and Claudia Cardinale having worn their creations, Jablonex stakes arightful claim as one of Czech manufacturing’strue gems.

TRW, one of the world’s largest independent automotive parts manufacturers, with global sales exceeding 10 billion USD and employees numbering in excess of 65,000, also conducts its plant operations out of Liberec. Located in Frýdlant v Čechách, the factory     outputs numerous products including brake discs at an annual capacity of 2.5 million units. They also remanufacture some 500 different types of brake calipers, passenger vehicles, buses and trucks. Yet another TRW focus is the re- manufacturing of steering gears and hydraulic racks. Their major clients include Volvo, Opel, Ford, GM and Mitsubishi.
Not all industry in the Liberec region is manufacturing-based. One of the country’s most prestigious architectural firms operates from Liberec. SIAL is behind some of the most renowned structures in the country. Formed in 1968 by Karel Hubáček as an independent studio, it was nationalized in 1971, but despite restrictions imposed by the communist regime, still managed to lay out interesting and iconic structures. Some of the most famous projects of this era include Liberec’s Ještěd Tower, Máj (now TESCO) on Prague’s Národní třída, and the awe-inspiring and high-altitude ramps for the 1983 Ski Flying Championships in Harrachov, a project that gives both athletes and spectators butterflies to this day.
After the fall of communism in 1989, SIAL regained its independence from the state in 1991. Since casting off those chains, the company has grown from strong to stronger, designing some of the country’s most well-known and visited sites. Spend even a limited amount of time in the Czech Republic and you’re likely to come across a SIAL design. Mall par excellence, Palladium Shopping Centre on Náměstí Republiky in Prague and a large part of the Špindlerův Mlýn ski resort, including the main ski lifts, ski runs and public facilities there — all count among SIAL handiwork. The firm counts pavilion designs at Expos in Seville, Aichi and Shanghai among its professional accomplishments.

We approached Mr. Jiří Špikla, co-owner of SIAL, to discuss the company’s ongoing success and to share his thoughts on the Liberec region at large, where his company has remained fruitful since inception many years ago.

Does SIAL build only in the Liberec district or do you have projects going elsewhere?
SIAL builds not only in the Liberec district and the Czech Republic in general, but also in Slovakia, Hungary and Germany. Previously, through our export program with TESLA, we completed projects in Poland. We’ve also worked on the EXPO exhibitions in Seville, Aichi and now currently in Shanghai.

Has it been difficult basing your company in Liberec rather than in Prague?
Of course, being based in Prague has its advantages, and we do have an intermediate office there. The distance between the two cities is not so great as to present an obstacle; after all it’sonly about a50-minute drive. Our Czech and foreign investors both take the time to find us.

What are some advantages and disadvantages of being based in Liberec?
Advantages are the beautiful surroundings and our location on the border of both amidsize and alarge city. It’s also areally nice place in which to live with great public facilities and schools, including the Technical University, good health services and many excellent recreational and sporting options. We really cannot see any disadvantages.

Your projects reflect great diversity: you design houses, shopping centers, ski resorts etc. Is there something you’d like to do, but haven’t had the chance to yet?
Universality, in our case, has helped us to survive. Our projects have included designing banks, industrial and logistical centers, shopping centers and sports centers. In the past houses have been more of an exception then the norm, though investor interest these days is turning towards various forms of formal residences.

How do you see Liberec and the Liberec region evolving?
The Liberec region is interestingly situated on the border of three countries, (Poland, the Czech Republic, Germany). Unfortunately the road network between them has not been successfully resolved. Also the local transport network still has its drawbacks as well, especially the connection between Liberec and the Hradec Králové region. The city itself has problems similar to those of other cities of its size, problems with hasty privatizations and often impetuous sales of city properties and land, and the fast expansion and icreasing traffic.
Another problem is the frantic construction of shopping centres that don’t attract customers including centers right in the middle of the city. On the other hand there are many positives to be seen, fortunately due to privatization the condition of many properties, façades, transport lines and sporting facilities has greatly improved.

What is your company proudest achievement?
SIAL can be proud of its past and present in completely different social conditions. Definitely the most important project was the Ještěd TV tower and hotel, but the company can also be proud of the department store Ještěd vLiberci (later TESCO), which was recently demolished and also Máj in Prague (now TESCO on Národní třída).
It can also be proud of a string of other projects such as the reconstruction of the Trade Fair Palace (Veletržní palác) in Prague for use by the National Gallery, and recently an interesting project, the research library in Liberec. Also multifunctional Park One in Bratislava, Slovakia and a number of other industrial and sporting projects.