Many Czech firms consider relocating production to save costs

Nearly a fifth of Czech firms are considering moving their headquarters or production abroad and most of them are looking to the East mainly due to the cheaper labour costs, according to a poll conducted by the Czech Business Chamber among some 800 firms. Others are considering a move to countries such as Great Britain or the Netherlands in search of more advantageous tax legislation and a generally more friendly business environment. Companies that are feeling the pinch of the crisis have registered a drop in demand and are trying to find other ways of cutting costs. The textile, clothing and glass industries are particularly hard hit by the strong crown and cheap competition from Asia. For example, matches producer Solo Sirkárna has already relocated its production abroad and Koh-i-noor Sušice, a leading Czech pencils producer, has moved to Asia.