In Business News: the Czech Republic is on course to join the euro in 2010, though the OECD warns of some risks; inflation reaches 3.1 percent, but should fall sharply; Hyundai finally sets a date for construction work on its Moravian factory; Skoda Auto - the country's biggest exporter in 2005 - plans to put the Yeti prototype into production; and Slivovice makers Rudolf Jelinek report big sales increases last year.
Czechs on course to adopt euro in 2010 but some risks, says OECD
Inflation up to 3.1 percent in May
Inflation growth in the Czech Republic accelerated to 3.1 percent last month, partly driven by higher prices of foods and vehcile fuels and in increase in lump sum costs for fixed line telephones. However, analysts say inflation probably peaked in May and should fall sharply in the summer.
Hyundai finally sets date to begin building Moravian plant
South Korean car-maker Hyundai has finally set a date for the start of construction of its new plant in Nosovice, north Moravia. The first sod will be turned on December 10, the company said this week. Hyundai's first European plant should go into operation in October 2008.
Car makers saw 25-percent increase in sales in 2005
Skoda Auto country's biggest exporter
So it is hardly surprising, then, that Skoda Auto was the country's biggest exporter in 2005, according to figures released this week by the Czech Top 100 association. The company's exports were worth over 6.5 billion dollars last year. The second biggest exporter was Unipetrol followed by the chemical group Agrofert Holding, coal company OKD and Siemens Group Czech Republic.
Yeti to go into production, says Skoda
Meanwhile, Skoda Auto - which has just launched its Roomster model here in the Czech Republic - is to produce a small sports utility car based on its Yeti prototype. A spokesperson said the new vehicle would be aimed at young people. The company is also planning a new version of the Skoda Fabia, but not this year.
Big rise in revenues for Slivovice makers Rudolf Jelinek
Czech distillers Rudolf Jelinek - famous for the plum-based Slivovice and other types of fruit brandy - saw revenues rise by a whopping 40 percent last year, according to figures released this week. Jelinek, which has a dominant position on the Czech market, said a lot of this increase was down to exports. The company, which was founded 70 years ago, sold over six million bottles of spirits in 2005, and expects sales to rise by 10 to 15 percent this year.