Brno regional court has declared the Jihlava-based diesel engine and auto parts producer Motorpal unable to meet its debts. The company is a player on world markets and employs around 1,300 in Jihlava and more at other plants in the Czech Republic. It is a world player on the market for fuel injection systems for diesel engines. A restructuring plan, which was reported to have the backing of most of the banks and companies owed money, was not accepted by the court. Motorpal is reported to owe around 800 million crowns. It’s annual turnover in 2014 was around 1.3 billion crowns.
China’s relative economic downturn means that a lot of its low cost steel is being exported around the world with Europe one of the main target markets. And already worried Czech steel makers fear that even worse might be on the horizon if changes soon abolish Europe’s opportunity to take protective steps.
The Czech government has decided not to include a stretch of the Elbe valley in northern Bohemia in a listing of EU designated nature protection sites, according to the daily Lidové Noviny. It said that the Czech Confederation of Industry and the local regional council has both lobbied hard to keep the area off the list because of worries it might impede economic development. Environmentalists have warned that Brussels could launch an infringement procedure against the Czech Republic about the decision itself and the five years required to take it.
Car production in the Czech Republic grew by 4.5 percent year on year in the first 11 months of 2015, according to freshly released industry figures. Total output between the start of January and the end of November was 1.21 million. Škoda Auto remained the biggest producer with almost 700,000, while a joint Toyota, Peugeot and Citroen plant recorded the biggest increase in output with 9.7 percent. Bus production grew by 30 percent in the first 11 months of 2015. Car production is set to reach an all-time record for the year.
In Busines News this week: The lower house approves 2016 budget; Inflation falls to 0.1 percent in November; Industrial production speeds up in October; October trade balance climbs to 13.3 billion crowns; Energy Regulatory Office not to pay out support for renewable sources; Prague-Shanghai air link to launch in April.
Industrial production in October climbed by 3.8 percent compared with the same month in 2014. When adjusted for the number of working days, the output increase stood at 6.4 percent. The value of new orders over the month climbed by 6.5 percent. The main factor fuelling the output increase was higher production of cars but production of electricity and chemicals fell back sharply.
South Korean President Park Geun-hye on Friday ends her four day visit to the Czech Republic. Her talks with top officials, including the president and prime minister, were dominated by economic cooperation. On Thursday the two countries signed a two-year action plan on cooperation in the fields of cybersecurity, the defense and nuclear industries as well as a number of memorandums paving the ground for cooperation between universities and institution in the field of research and development. The visiting South Korean president also attended a summit of the Višegrad Four states in Prague.
South Korean President Park Geun-hye and Czech Prime Minister Bohuslav Sobotka have signed a two-year action plan covering cooperation in industry, culture, politics and security, spokesman for the Czech government, Martin Ayrer, said on Thursday. The two countries agreed on a strategic partnership during the Prime Minister’s visit to Seoul in February 2015. It includes cooperation on cyber security, the defence industry, and nuclear energy. During their meeting ahead of the summit of South Korea and the Visegrad Four in Prague on Thursday, the Korean president and Czech Prime Minister also discussed mostly economic cooperation, Korean investments in the Czech Republic and security affairs, Ayrer said in a statement
Conditions in the manufacturing in the Czech Republic worsened for the third-straight month in October, according to the Czech news Agency – citing industry analyst Markit Economics. Purchasing Managers Index numbers dropped from 55.5 to 54 points, according to the firm. The index monitors production, new orders, employment, supplier delivery times and inventory. A value higher than 50 points is positive, representing improvement. In the Czech Republic, new orders grew at their slowest pace in two years largely due to weaker exports.