Archive: Business | Business

Tycoon Karel Komárek is expanding into the IT business in a big way, iHned.cz reported. His group KKCG is setting up a new holding company that aims to be the biggest Czech-owned IT firm in the country – and also to expand to Western European markets, the news website said.

The Czech company Tatra Trucks will supply 328 chassis for military vehicles in a deal worth more than CZK 1 billion, the Kopřivnice based manufacturer announced in a press release on Friday. The company says that the deal, its largest this so far this year, could be developer further.

During the first half of 2019, the Czech Republic registered a three year low in the amount of new companies being set up, data from the website Bisnode shows. A record amount of businesses, 7964, was also shut-down during the same measured period. Overall, the number of companies registered in the country grew to just under 450,000.

There are now 12,400 Czech companies based in tax havens, the fewest since 2011, after a record 405 moved operations this year, the consultancy Bisnode says.

Many tax havens have largely ceased to perform their core functions, namely securing their owners’ anonymity and tax optimization, accord to the consultancy.

A total of 157 Czech firms left the Netherlands this year and 147 left the United States. Dozens also moved their headquarters from Cyprus (36 companies), Luxembourg (32) and the British Virgin Islands (22).

Bisnode estimates that only 2.47 percent of Czech firms are now controlled from tax havens. It says destinations such as Hong Kong and the United Arab Emirates are increasingly popular.

Czech firms are expected to curb their investments this year, as a result of the workforce shortage, and the expected slowing of the German and Czech economies, according to a prediction released by the European Commission.

The Czech export-oriented economy is expected to feel the impact of an economic slowdown in Europe, particularly in its main export destination, Germany. Despite this the Commission predicts solid growth, driven mainly by household consumption.

Companies are expected to invest mainly into digitalization and automated technologies.

The Czech Republic’s year-on-year industrial production figures grew by 3.2 percent in May, 0.1 percent less than in the previous month, according to figures released by the Czech Statistics Office on Monday. The main drivers of growth were the automobile industry, as well as plastic and energy production. The country’s foreign trade surplus experienced a year-on-year rise of CZK 17.2 billion, reaching CZK 24.4 billion.

The Czech foreign trade surplus rose in May by 17.2 billion crowns in annual terms, to 24.4 billion crowns, according to preliminary data published on Monday by the Czech Statistical Office.

Exports grew year-on-year by 8.1 percent to 332.5 billion crowns and imports by 2.5 percent to 308.2 billion crowns.

The balance was positively influenced mainly by the motor vehicle sector, where exports increased by 11.5 billion crowns. At the same time, the deficit in refined petroleum products, chemicals, and oil and natural gas decreased.

This June, 926 personal bankruptcies were officially registered in the Czech Republic, a drop of 341 from May and the lowest number in any month this year. But overall personal bankruptcy filings have risen to 2,227, the highest number since 2013, according to data from CRIF – Czech Credit Bureau.

The EPGC investment group owned by Czech Daniel Křetínský and Slovak Patrik Tkáč, has submitted a public offer for the German business group Metro. Reuters reported that EPGC had said in a press release that it was offering amounts for shares that valued Metro at EUR 5.8 billion.

The bid is contingent on EPCG reaching sufficient shares to take control of Metro, a spokesperson for the former said.

Reuters said the investment was part of Mr. Křetínský’s strategy of diversifying his holding into the food and retail sectors. He already owns the tabloid Blesk and Sparta football club.

Plans were recently revealed for a major, and striking looking, development project that would transform part of Prague’s Žižkov district. However, a conservation group has now come out against the design, which is the work of the top Czech architect Eva Jiřičná.