Škoda’s Kvasiny production plant to undergo major expansion

Škoda plant at Kvasiny, photo: Karelj, Wikimedia Public Domain

Kvasiny, one of Skoda’s three production facilities in the Czech Republic is to undergo a major expansion- the biggest in its 81-year old history. Underlining the significance of the plant’s presence in the region, the Czech government has promised a two billion crown injection to support the transformation.

Kvasiny, photo: Public Domain
The Škoda Kvasiny plant is not just an important cornerstone of Škoda’s production network – its development is directly linked to employment and social stability in the Hradec Králove region. Presently the plant, which produces the Škoda Superb, the Škoda Yeti and Roomster models, employs around 4,500 people. In the wake of its three-year expansion it will offer over 1,300 new jobs and create an additional 400 jobs for subcontractors in the region.

The auto makers 7 billion crown investment into the plant’s expansion has been hailed by the Czech government as a sign of social responsibility by the country’s largest industrial employer. On Monday Prime Minister Bohuslav Sobotka, the Governor of Hradec Kralove Lubomir Franc and Škoda CEO Winfried Vahland signed a memorandum according to which the government has committed itself to supporting the project with a 2 billion crowns investment from state coffers. The money will go predominantly into road and railway infrastructure projects directly linked to the plant’s expansion.

“I am delighted that the government is fulfilling its commitment to attract new investment and help generate employment in the region” Prime Minister Sobotka said at the signing ceremony. Industry Minister Jan Mládek stressed that the investment is not a direct incentive for Škoda Auto but broader support for the region’s development and a message to other potential investors. The money will also go to improve education and health facilities in the region.

Škoda Auto is the largest industrial employer in the country, providing jobs for 25 thousand people. In 2014 the company posted a turnover of 317 billion crowns.