Mitas Considering $50 million Investment in Czech Republic

Mitas a.s. has reportedly signed a “Declaration of Understanding” to build a new tyre production plant in the Czech Zlín Region, an essential step for the realization of the project. Contracts are said to be being drawn up currently. Mitas, a division of Czech Rubber Group CGS Tyres, is reportedly planning a 1 billion Czech koruny (£34 million, 40.65 million euros, US$53.73 million) investment in the Holešov Industrial Zone in the Czech Republic.

According to a Holešov Industrial Zone statement, the company is planning to build the plant at the end of next year and it will be fully operating in 2014. The site is expected to employ 500-550 people. The new factory will reportedly require 6.5 hectares of land, with the option for another 6 hectares. Mitas plans to produce mainly tyres agricultural tyres in Holešov. It has found several suitable places for realization of its intention, and finally it has been decided for Holešov.

Mitas already owns four tyre production Czech plants in Prague, Zlín and Otrokovice – with a further factory in Ruma (Serbia).

“Holešov is a suitable place because of the technical readiness of the zone due to the proximity of our other two plants. Rubber production has its tradition in the region. We will produce tractor and other farm machinery tyres, which is the most significant item of our production portfolio. The amount of farm tyres production ratio is 75 per ent of the total sales,” stated Josef Křemeček, vice chairman of Mitas.

The Holešov Industrial Zone is, considering its size of 360 hectares, one of the largest development areas in the Czech Republic.

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