BETONBAU expands into the Baltics

The electricity transmission and distribution system in the Baltics is being modernised in order to break away from the Russian-controlled BRELL system. This means that opportunities are arising for Czech companies to successfully expand abroad. For example, Betonbau has been undertaking major contracts in the local market since the beginning of 2022. With the help of CzechTrade, it is supplying prefabricated concrete substations to Latvia, improving the energy infrastructure and preparing for the transition to sustainability.

The Czech company Betonbau is also contributing to the faster modernisation of safety-critical electricity infrastructure in the Baltics with the help of CzechTrade. The company is supplying modern substations to its Latvian partners. These are, among other things, important for connection to the European continental grid. "Despite the initial minimum of experience with the Baltic States, thanks to CzechTrade's foreign office we have entered a market where the need is to modernise the local infrastructure not only from a qualitative point of view, but also from a safety and environmental point of view," says Irena Kritinina, a representative of Betonbau, adding that their substations have been used in the modernisation of the third largest hydroelectric power plant in Latvia and the largest in the Baltic States.

With the help of the CzechTrade Baltic office, Betonbau has been completing significant contracts in Latvia since the beginning of 2022. "The Baltic States are a great business opportunity for Czech companies that offer innovative solutions, are not afraid of the competitive European market and know how to cope with the specifics associated with the post-Soviet space. I believe that highly durable substations are a very topical issue in the Baltics, given the geopolitical situation," says Radomil Doležal, CEO of CzechTrade, adding: "At CzechTrade we are able to direct Czech companies to markets where they have a real chance to succeed. In 64 countries around the world, companies have access to experts from foreign offices who help with the entire process, from initial market screening through company presentations for potential business partners to specific negotiations on cooperation," says Radomil Doležal.

Export of products with high added value

Betonbau's substations are appreciated by customers for their high mechanical resistance, long service life, watertightness and environmental friendliness. These competitive advantages are due to the unique construction of the substations, where the body of the station is manufactured as a single concrete casting.[1]"Our product portfolio consists of both small compact substations and large walk-in buildings consisting of many cells. We can also build underground substations," explains Irena Kritinina.

Exports to the Baltics are growing

In 2022, products worth CZK 32.5 billion were exported to the Baltic states. Among the items with the highest year-on-year growth were electrical equipment and food products. Items such as motor vehicles, electrical appliances and computers, and electronic and optical equipment accounted for the largest share of the total export value. "Recently, more and more companies have been turning to us to offer innovative products or highly sophisticated solutions, including software solutions," says Věra Všetičková, director of the CzechTrade Baltic office, adding: "In April this year we will organise a mission of Czech suppliers to industrial bakeries in Lithuania, Latvia and Estonia. In late November and early December we will also present Czech engineering companies at the Tech Industry fair in Riga."

In 2022, Czech companies exported a total of CZK 4437.9 billion worth of products abroad, which is 13.3% more than in the previous year.

Source: Czech Trade press report, https://www.czechtrade.cz/media/tiskove-zpravy/archiv/prilezitost-pro-export-v-odvetvi-energetiky_-cesi-pomahaji-zkvalitnovat-energetickou-infrastrukturu-v-pobalti