Iconic Czech company Koh-i-noor says that after 11 years it is going to end some of its production in China and bring it back to the Czech Republic. Production in China is not as cheap as it once was and the company wants to safeguard its production at home. The decision has partly been prompted by the dramatic drop in sales to Russia, which is now struggling with its own economic problems and falling currency. Average wages in China have almost doubled in the last five years.
The planned giant investment of Taiwanese mobile, tablet and camera manufacturer HTC in Brno promising to create up to a thousand new jobs is falling apart within months of it being announced. Dozens of the company’s employees have received notices to quit before the planned European service centre was even launched, Czech Television reported on Monday.
In Business News this week: Many companies are not happy with the new minimum monthly wage rate; Regional Development minister says Czech Republic could fail to draw 50 billion crowns in EU funds; Škoda Auto rated most dependable car maker in British report; up to 1,500 small and mid-level Czech businesses can benefit from Juncker package; construction companies say there are not enough skilled labourers on Czech market.
After several lean years Czech arms exporters are once again doing good business. According to the Defense and Security Industry Association 2014 brought a 47 percent increase in arms exports. Czech firms found buyers around the world, selling arms to the tune of 11.5 billion crowns. Exports to countries in North Africa and the Middle East saw a 100 percent increase that year. I asked Dušan Švarc of the Defense and Security Industry Association to comment on the significance of this increase for the arms industry.
Authorities in the Russian enclave of Kaliningrad announced this week that they had destroyed 20 tons of tomatoes from the Czech Republic, that were falsely labelled as Macedonian. Russian authorities investigated the shipment, and after allegedly receiving information from Macedonia that the respective shipment was not registered with them, ordered its elimination.
Although 94 percent of Czechs consider themselves to be financially responsible, many still make painful mistakes in managing their personal finances. According to data from the Labour and Social Affairs Ministry many graduates who are unable to find jobs take out loans and set up small businesses, only to see them go bankrupt in a relatively short time. The age of people who file for insolvency has dropped from an average 35 to 28 years.
The internet retailer Amazon is planning to build a centre in Prague that would provide around 3,000 jobs. The newspaper Hospodářské noviny reported that the US company was eyeing a site in an industrial park at Horní Počernice on the outskirts of the city for the 40,000 square-metre centre, which would be for returned goods. Amazon has been hiring around 1,000 people over the summer for a new distribution centre located at Dobrovíz near Prague.
Slovakia appears to have won the beauty contest to be the site for a new factory for luxury car maker Jaguar Land Rover. Poland looks like it was in second place with the Czech Republic in third. Details of the full deal and incentives could make it clear whether the Czech bid suffered from lower permitted aid ceilings than both Slovakia and Poland.
The Czech trade surplus in June totaled 17.8 billion crowns, a slight improvement on the same month in 2014, the Czech Statistical Office announced on Thursday. The surplus strengthened in cars and transport machinery with a weaker impact in the traditional deficit from oil and other imported fuels thanks to lower world prices. The trade surplus in the first six months of the year now stands at almost 107 billion crowns. Exports and imports have been rising at nearly the same level this year of around 7.5 percent.
Over 1,000 skeletons discovered during renovation of Kutná Hora “bone church”
Language exams for foreigners seeking permanent residency permit to become tougher
Why are Russian and Chinese spying activities in Czech Republic so intense and how exactly do they do it?
Prague’s historical Koh-i-noor factory to be converted into residential area
The history of the “German Czechs”