How EFSI benefits SMEs in Europe - Česká Sporitelna case study: PAPCEL Czech Republic, Manufacturing; Machines for the paper industry

Over the past 65 years, PAPCEL has specialised in the production of machines and technological equipment for the paper industry. Located in Litovel, in the eastern part of the Czech Republic, PAPCEL was founded in 1950, before being bought by the Dostál family. Today, PAPCEL has grown into an international company with subsidiaries in other countries. The Group’s 420 employees have developed 20 innovations in 2015 and have worked on over 50 international projects in total, with as much as 98% of production exported outside of the Czech Republic.

David Dostal, PAPCEL’s current CEO, has come a long way in leading the small business to today’s stature. When David was young, he originally planned to work in agriculture, much to his father’s dismay. With time, David’s father convinced him to join the family business. Working his way up, David eventually took over the company in 1995. He gained management experience by learning on the job, and made impressive progress in business turnover over the years. The secret behind David’s success? “The key is to have confidence, be surrounded by good people and have patience”, he explained when he was granted the award of ‘EY Entrepreneur 2014 of the Olomouc region’.

David’s approach is resolutely customer-oriented, reflected in his slogan ‘Growing together – if we allow the customer to grow, so will we’. During an interview for the Pulp & Paper Technology website, he said that: “Probably the most important thing is maintaining personal contact with the customer and gaining the trust in the company’s ability to deliver a comprehensive solution for their investment plan. A direct communication during problem solving and total trust between the two teams when undertaking basic tasks, like during the paper machine construction, are essential.”

In the course of his company’s development, David decided to make use of a loan provided by Česká Sporitelna and jointly guaranteed by EIF and the Investment Plan for Europe, the EU initiative aimed at generating new investments by facilitating access to finance for European small and medium-sized enterprises. This EU-guaranteed loan has allowed for the production and reconstruction of larger paper machines, thus enhancing the company’s competitiveness, but has also created additional jobs within the company.

Company: PAPCEL Czech Republic

Type of business: Manufacturing; Machines for the paper industry

Supporting bank: Česká Sporitelna (CSAS)

EIF financing: InnovFin SMEG, EFSI

For further information about EIF intermediaries in the Czech Republic, please refer to: http://www.eif.org/what_we_do/where/cz