Canadian FPS suing Czech Republic for 450 million CZK. Ashok Leyland buys lorry-maker Avia. GDX Automotive plans production transfer to Ostrava. Second largest Czech steel and iron company, Metalimex, changes hands. Skoda will produce more than 20 000 Roomsters in 2006. Sale of Ceska Posta and Letiste Praha could generate 23 billion CZK
Canadian FPS suing Czech Republic for 450 million CZK
Frontier Petroleum Services (FPS), a Canadian company, is suing the Czech Republic for more than 450 million crowns (over $20 million US). The Czech economic weekly Euro magazine reports that the lawsuit has been launched to compensate for an unpaid loan. In 2001, FPS granted a Czech company, Moravan-Aeroplanes a loan of 200 million crowns to buy aircraft-maker LET Kunovice, a bankrupt company. In return, FPS was to receive a 49 percent stake in the revamped company, and the loan was to be paid from subsequent profits. However, the Czech companies concerned went bankrupt by 2004, and so now FPS is seeking compensation directly from the Czech state. Czech Finance Minister Vlastimil Tlusty says that he will deal with the claim directly rather than leaving the matter for international arbitration.
Ashok Leyland buys lorry-maker Avia
Ashok Leyland, an Indian company, is the new 90 percent shareholder of Czech lorry-maker Avia. Thursday's edition of the daily Mlada Fronta Dnes reports that Ashok Leyland paid $35 million US (nearly 800 million Czech crowns) for Avia, a figure cited from the Indian daily The Hindu. The purchase price has, however, not been confirmed by either Ashok Leyland or the Odien Group, Avia's former owner. Ashok Leyland has not yet said whether it will squeeze out the remaining 10 percent minority shareholders in Avia.
GDX Automotive plans production transfer to Ostrava
Second largest Czech steel and iron company, Metalimex, changes hands
Skoda will produce more than 20 000 Roomsters in 2006
Czech car-maker Skoda Auto, a member of the Volkswagen group, reports that it will produce more than 20 000 Skoda Roomsters in 2006. The Roomster model went on the market in mid-2006, and Skoda Auto has set future target sales for the Roomster at more than 50 000 units per year. Skoda Auto expects to produce more than half a million cars in 2006, a company record. Sales are expected to total roughly 530 000 cars. Skoda Auto has three plants, its flagship location in the central Bohemian city of Mlada Boleslav, and the company employs over 26 000 people.