State incentives have been cleared for the Danish firm Lego to invest 1.73 billion crowns in the extension of its plant at Kladno on the outskirts of Prague. The government aid totals 46 million, around 5.0 percent of the total spending on the project to add production, warehouse, and administrative space to the current site. Around 600 extra jobs should be created by the time the work is completed in 2017.
Brno councillors on Tuesday approved changes to the city’s local development plan which will enable e-commerce giant Amazon to build a long-disputed distribution centre on the outskirts of Brno. The decision approved by 29 votes out of 55, comes after weeks of controversy and protests from some of the locals regarding the presence of warehouses in relatively close proximity to Brno’s housing estates. In order to facilitate the deal, which is expected to create 1,500 new jobs, the government recently removed a clause banning the use of land being offered to Amazon for warehouses. At the start of April Amazon representatives indicated that they had given up on investing in Brno; however, after talks with the Czech prime minister they said they would reconsider.
Police have charged three people from the Czech Export Bank in connection with the financing of a construction project in Tunisia, Lidové noviny reported Friday, citing the High State Attorney’s Office in Prague. The bank provided 331 million crowns in financing to a Tunisian investor, M.F.M., to develop hundreds of new luxury apartments in Tunisia, to be built by the Czech firm PSJ. The project stalled as a result of technical problems as well as changes under the Arab Spring. After it halted financing, the Czech Export Bank discovered it had none of the usual guarantees or collateral. According to Lidové noviny, PSJ is to trying to salvage the project.
Vietnam is one of the main Czech targets for boosting exports outside of Europe. And while current trade flows are overwhelming in favour of the South-East Asian country, Czech companies are hoping for a lot more by filling in some of the many gaps in industrial know-how and equipment and the country’s basic infrastructure.
Representatives of the Ústí region have signed off on a land deal crucial to persuading South Korean based global tyre manufacturer Nexen to set up a new plant in the Czech Republic. Formalities still need to be completed, but what could turn out to be the biggest ever foreign investment in a new plant is already being described as a done deal.
A decision was taken Monday by the Czech government which could pave the way for e-commerce giant Amazon to overturn its original decision and site a second distribution centre on the outskirts of Brno. The government removed a clause banning the use of land being offered to Amazon for warehouses. The clause was inserted more than 10 years ago when the land was transferred from the central to local government and the land use issues were one of the obstacles in the original talks with Amazon. The American company walked away from talks on the Brno site after the city council rejected planning changes needed for the distribution site to go ahead. Since then the council has said it is renewing efforts to win the investment and potential 1,500 jobs.