Overview of Economic Events in the Czech Republic

Today, the Czech economy experienced several significant developments, ranging from industrial transactions to strategic energy initiatives. In the industrial sector, the CONTEG group completed the acquisition of two manufacturers of electrical switchgear, Spálovský and Global Business, which will be integrated into a new division called Conteg TSE. The Czech Housing Fund expanded its portfolio by acquiring three apartment buildings in Brno and Ostrava (a total of 342 units) in transactions valued at hundreds of millions of Czech crowns.

Private equity firm Genesis Capital sold its stake in Conectart, the largest Czech BPO operator, to the Croatian investor Mplus, marking the end of a five-year growth cycle. The Brno-based investment fund Jet Investment acquired a majority stake in the Polish company Plastiwell International, a manufacturer of plastic components for the automotive and electronics industries, in an investment worth hundreds of millions of Czech crowns. Another example is the expansion of the real estate portfolio: the fund REICO LONG LEASE acquired the Rokycany logistics park, with an area of nearly 30,000 square meters, leased to the company Duvenbeck for 15 years.

The company Panattoni is gradually increasing its holdings of industrial land in the Czech Republic – in the past 36 months, it has acquired a total of 38 hectares in the Mošnov area for further development. A kilowatt-scale investment by the Chinese company Goldcup Electric is also on the horizon, which plans to build a new factory for magnetic wire in the Czech Republic with an initial capacity of 8,000 tons per year (2025-26) and a goal of expanding capacity to 20,000 tons. In the financing of public projects, the state has requested that the European Commission notify public support for nuclear power plant construction in Dukovany, with the project now majority-owned by the company Elektrárna Dukovany II. A decision from the EC is expected by the end of next year.

At the same time, in March, the government for the first time blocked a foreign investment for security reasons – this was the Chinese company Emposat, which operates a satellite ground station in the South Moravian region, demonstrating its stance on strategic sectors.

The foreign exchange market saw a weakening of the Czech crown against the euro (to 24.29 CZK/EUR) and against the dollar (to 20.73 CZK/USD). This trend is correlated with inflation and uncertainty regarding the future policy of the Czech National Bank.

Foreign Investment

Significant capital inflows are occurring in the clean mobility and electronics sectors. The Chinese company Goldcup Electric plans to invest over 96.7 million USD in the production of magnetic wire in the Czech Republic. In the electric vehicle segment, the Taiwanese company CTi Cable announced an expansion to Klecan near Prague with an investment of several million USD in a new plant for the production of cables and components for AI, autonomous driving, and IoT. The American semiconductor investor onsemi is continuing to expand its capacity in Rožnov pod Radhoštěm with an investment of up to 2 billion USD for the production of semiconductor modules (SiC).

The Robatech group, based in Western Europe, has opened a new factory in Znojmo for the production of adhesive systems, responding to the logistical advantages of the Czech Republic. The company Continental / ContiTech is moving part of its production to the Czech Republic, increasing the Czech Republic's share in the supply chain for industrial rubber components. The German investment group ZF Group has acquired a facility in the Ostrov North industrial park in northwestern Bohemia, which will serve as a production and logistics base. In the real estate sector, the fund REICO LONG LEASE is expanding in the Czech Republic through the acquisition of logistics properties, increasing the stability of its returns.

These foreign investments confirm that the Czech Republic remains an attractive destination for capital investment in high-tech manufacturing, electric mobility, and logistics. Last year, the Czech government and the agency CzechInvest helped attract 28 investment projects worth nearly 60 billion Czech crowns (more than 3.4 billion euros), creating nearly 28,000 new jobs.

Significant events outside the Czech Republic with global impact

A significant transaction is the acquisition of Synthesia Nitrocellulose by the Colt CZ Group SE group for 22 billion Czech crowns (51% stake), which strengthens the strategic vertical integration of gunpowder and ammunition production in the Czech Republic. The global automotive group Toyota announced an investment of approximately 680 million euros in the production of its first all-electric car at its European plant in Kolin, including the construction of a battery factory. This move strengthens the Czech Republic's position in the automotive supply chain.

Revolution in the steel industry: Daniel Křetínský / EP Corporate Group is selling its 20% stake in the Thyssenkrupp Steel Europe division, ending plans for a joint venture project. In the defense sector, the government approved the purchase of 44 Leopard 2A8 tanks from Germany for over 34 billion Czech crowns, with deliveries planned for the period 2028-31. In the energy sector, the ČEZ group has taken a 15% stake in the British company Rolls-Royce SMR for small modular reactors, expanding its strategic position in nuclear energy.

In the automotive market, Tesla recorded a year-on-year increase in sales of 7.4% in the third quarter, delivering 497,099 vehicles. This result partially offset the decline in interest in Europe.

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