Business News

Czech unemployment rate reaches 10.1 percent. Czech industrial production shows massive growth. The government to sell two profitable coal companies. Express courier DHL to move information-related operations from Britain and Switzerland to the Czech Republic.

Business News

Unemployment on the rise

Unemployment rate rose to 10.1 percent, CTK

The Czech Republic's unemployment rate rose to 10.1 percent of the workforce at the end of September from 10.0 percent at the end of the previous month. In September 2002, the jobless rate stood at 9.4 percent. Experts say the latest increase was mainly due to school leavers who enjoyed their last summer holidays before registering at labour offices in September.

Industrial production grows

Czech industrial production rose by 8.0 percent year on year in August. Labour productivity grew by 12.6 percent. August's growth was partially affected by the low reference basis of August 2002 resulting from the devastating floods. The main contributors to the rise in industrial production included manufacture of transport equipment, chemicals, and refinery products.

Two coal mining companies up for sale

The Czech privatisation agency, the National Property Fund, is opening a tender to sell majority state stakes in two brown coal companies, Severoceske Doly and Sokolovska Uhelna. Revenue from the sale of the two profitable companies is expected to be around 100 million USD. The government holds a 55.4 percent stake in Severoceske Doly and 48.7 percent in Sokolovska Uhelna. Investors involved in natural gas or oil businesses either in the Czech Republic or in neighbouring countries are excluded from taking part in the tender. This also applies to coal firms in neighbouring countries. Brown coal is the Czech Republic's main energy resource. The government also plans to decide later this year on whether to sell its 49-percent stake in the black coal mining company OKD. The three mining firms together produce 46 million tonnes of coal a year.

New DHL IT Operations Centre to open in Prague

The worldwide express courier DHL has announced its decision to move its Data Centre and some other information-related operations from Britain and Switzerland to the Czech Republic. A new IT Operations Centre will be opened in Prague in premises that are currently under construction. DHL said that the existing Data Centre in London was not large enough to accommodate the growing needs of the company. The criteria for selecting the location of the new Centre included availability of a skilled and flexible labour force, well established and reliable telecommunications networks, good air links and the opportunity to reduce costs. Prague was chosen because of the availability of all such criteria, underpinned by strong support and incentives from the Czech Government.