Business News

25-09-2015

Czech plane maker targets ‘unfair’ French tender; offer to keep Důl Paskov mine operating; ČEZ offloads hydro unit but eyes German coal plants; slim picking for Czech IT managers; and richest Czechs see wealth eroded

Aero Vodochody to challenge French tender

L-39NG, photo: archive of Aero VodochodyL-39NG, photo: archive of Aero Vodochody Czech aircraft producer Aero Vodochody is to challenge a French decision to close off its chances in a tender for around 20 training aircraft for the army. The company failed to make it through to the tender shortlist with its offer of the L-39NG aircraft. It says some of the conditions laid down were discriminatory and procedures dubious. The complaint will initially target the state authority for armaments purchases with a court challenge likely to follow in the case that this fails.

OKD mine offered extended lifeline

Photo: archive of OKDPhoto: archive of OKD Continued mining at one of the Czech Republic’s last deep mines looks likely to continue in spite of low world prices. Mining company OKD is reported to be willing to prolong a deal with the government to keep the Důl Paskov mine going for at least a further six months. OKD has the option to exit an original deal aimed at safeguarding the thousands of jobs at the mine until 2017. That option opened up in September when coal prices remained for nine months in a row below 110 dollars a tonne.

ČEZ sells Turkish hydro plant, eyes Vattenfall assets

Photo: Tomáš AdamecPhoto: Tomáš Adamec State-controlled power company ČEZ has sold off one of its Turkish assets, an 80 MW hydro electric plant in the northeast of the country, for around 2.0 billion crowns. The near 70 percent state owned firm said it had an attractive opportunity to sell up to a local power company. ČEZ has meanwhile, along with fellow Czech power company EPH, said it is interested in buying the German coal fired power plants being sold by Sweden’s Vattenfall.

Czech IT managers among world’s worst paid

Photo: Barbora KmentováPhoto: Barbora Kmentová Czech IT managers are among the worst paid in the world, according to a survey by the global jobs consultancy MyHiring Club. Average monthly wages are around 86,000 crowns, around three-and-a-half times the Czech average wage, but still in the bottom 10 countries of the worldwide survey. Czech IT pay rates come in just ahead of those in China and India but below those of, for example, Argentina. Many West European and American companies have outsourced some of their less demanding IT workload to the Czech Republic.

Top three Czech billionaires buck trend with shrunken assets

Andrej Babiš, photo: Filip JandourekAndrej Babiš, photo: Filip Jandourek The three wealthiest Czechs have had lean times of late according to a study by Capgemini and RBC Wealth Management. Number one on the local wealth ladder, Petr Kellner of the PPF empire, saw his estimated material worth slump almost 6.0 percent, partly due to the problems of his Home Credit business in Russia. Head of the Agrofert agro-chemical group, Andrej Babiš, has seen his wealth shrunk by just over 16 percent, according to the study. And coal and energy business billionaire Pavel Tykač, witnessed a 2.4 percent drop. They were the exceptions to the rule with most of the top 100 Czech and Slovak crown billionaires adding to their assets.

25-09-2015