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Czech Government Approves Investment Incentives for €630 million Worth of Projects

Strategic Insights

— 2 min read

The Czech government has approved investment incentives for seven projects in various sectors, including healthcare, electromobility, energy, and construction, worth over €630 million. The projects are expected to bring in returns of up to €1.8 billion to the budget. The largest project is a €270 million investment by Gestamp Louny, which plans to expand the production of battery boxes for car batteries. Another significant project is a €267 million investment by Aisin Europe Manufacturing Czech, which will expand its product range to include electric motors for electric vehicles.

Key Takeaways:

  • The Czech government has approved investment incentives for seven projects worth a total of Kc8.5bn (approximately €630 million)
  • The projects are expected to bring in returns of up to Kc24bn (approximately €1.8 billion) to the budget
  • The largest project is a Kc2.7bn (approximately €200 million) investment by Gestamp Louny to expand the production of battery boxes for car batteries
  • Aisin Europe Manufacturing Czech is also investing Kc2.67bn (approximately €196 million) to expand its product range to include electric motors for electric vehicles
  • Contract Medical International is investing Kc962m (approximately €72 million) to expand the production of venous catheters
  • Mobis Automotive Czech is investing Kc1.2bn (approximately €89 million) to expand the production of battery systems for electric vehicles
  • Novanta Medical is investing Kc114m (approximately €8 million) to produce hose sets for the healthcare sector
  • Pittsburgh Corning CR is investing Kc820m (approximately €59 million) to expand the production of foam glass
  • Master Therm heat pumps is investing Kc82m (approximately €6 million) to expand the production of heat pumps
  • The investment incentives include an income tax rebate for up to ten tax periods and financial support for job creation, retraining, and training of new employees
  • The companies supported by the government include Toyota, Gestamp Louny, Aisin Europe Manufacturing Czech, Contract Medical International, Mobis Automotive Czech, Novanta Medical, Pittsburgh Corning CR, and Master Therm heat pumps

Statistics:

  • The total value of the approved investment incentives is Kc8.5bn (approximately €630 million)
  • The expected returns to the state budget from these investments are up to Kc24bn (approximately €1.8 billion)
  • The largest investment is Kc2.7bn (approximately €200 million) in Gestamp Louny's battery box production expansion
  • The industry with the largest number of supported projects is the electromobility sector, with three projects worth Kc6.5bn (approximately €480 million)

Sources:

  • CTK, "Czech government approves investment incentives for Kc8.5bn worth of projects" (no date)
  • Industry and Trade Ministry, "List of supported projects" (no date)
  • Industry and Trade Minister Lukas Vlcek, statement after the cabinet meeting (no date)

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