Executive summary

The Czech government approved the establishment of the State Investment and Development Company (Státní investicní a rozvojová spolecnost, abbreviated "SIRS") in early 2024 to prepare certain industrial sites for large strategic investments.

SIRS is aimed at ensuring the provision of complete infrastructure, including surrounding areas and communities, covering education to civic amenities, within a participatory process. The parks are developed sustainably, with a significant share of renewable energy sources incorporated into their operational energy mix.

Purpose and mission

A state-owned company under the Czech Ministry of Industry and Trade, SIRS is dedicated to supporting foreign direct investment by preparing state-of-the-art business parks and strategic sites in the Czech Republic. Its primary mission is to streamline the site selection (including brownfields) and preparation process for foreign investors in advanced industries in accordance with the economic strategy of the Czech Republic, namely:

• Products for renewable energy production
• Medical and pharmaceutical products
• Electronic and optical devices
• Motors and batteries for electric vehicles (EVs)
• Aircraft and spacecraft
• Energy storage
• Advanced semiconductors

These activities enhance the Czech Republic's competitiveness as a hub for high-value technologies. It is envisaged that strategic projects located in the SIRS business parks will be supported by broader state-support instruments, including investment incentives.

Key activities

SIRS identifies, evaluates and develops prime locations for investors in modern industrial sectors. Its comprehensive services include land acquisition, permitting and construction of essential technical and transportation infrastructure. By expediting these processes, SIRS reduces the time needed for investors to establish their operations, offering significant advantages in terms of efficiency and local partnerships.

Collaborative approach

A central tenet of SIRS's approach is collaboration with local and regional authorities. The company aims to foster a synergistic environment in which communities, local governments, the state and investors can benefit mutually, creating shared value through strategic, long-term development.

Major projects

Major SIRS projects include:

1. Strategic Business Park Cheb: Covering 142 hectares, this business park is designed for investors with high demands for utility capacity and offers transport connectivity, including proximity to the D6 motorway.
2. Strategic Business Park Lutyne: This yet-to-be developed site of up to 270 hectares has a robust technical infrastructure with a possible power and water consumption of 350MW and 200l/s, prepared specifically for companies in preferential sectors (listed above).

Future projects

Next year, three brownfield sites (Lazy, Staríc and Souš) with a total area of 226 hectares will enter the design preparation phase.

Sustainability focus

SIRS emphasizes sustainable planning and construction, with all development undertaken to meet high environmental standards, reflecting its commitment to ecological responsibility and community well-being.

Implications

Multinational entities considering participating in SIRS projects will need assistance navigating discussions with the Czech government and thus will want to reach out to in-country tax advisors for support and further insights.