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MOTOR JIKOV GROUP > REPORT > The Company is building production halls in České Budějovice and Soběslav this year
The Company is building production halls in České Budějovice and Soběslav this year

The main investments in 2017 are constructing a new manufacturing facility, purchasing additional automated and robotized castings and machining centres, and replacing the sand management for the Iron Foundry division. “Investing in new buildings is a necessity and a must, and will contribute to increasing productivity and improving the quality of work in our companies,” said Chairman and CEO of MOTOR JIKOV Group a.s. Miroslav Dvořák in an interview.

How will investment policies look this year at MOTOR JIKOV GROUP?
Like every year, priority is given to the business plans. It’s always a big “fight” between me and the requirements of the directors of individual divisions, which are always higher than we actually are able to generate our depreciation and profits. We finally came to some agreement this year as well, splitting the investments into two stages. The first priority and necessary step must be implemented this year. The second stage is underway this year, but for the most part goes on to 2018.

A significant part of the investment will be the construction of two new halls, in Soběslav and České Budějovice…
For the first time in the history of my tenure, where I’ve served in the company’s management since 2000, I agreed to invest in the construction of a completely new manufacturing facility. It’s a hall for MOTOR JIKOV Slévárna a.s. the Pressure Foundry division, where new technology of high-pressure die casting machines with a clamping force of 1,000 tons presses will be installed. Of course, this is a fully automated and robotized workplace.

The second production hall, which we will begin to build this year, will serve the Assembly Division at MOTOR JIKOV Strojírenská a.s. in Soběslav. We will use the unfinished skeleton of the hall still for construction of the former regime. We want to use the new space to the logical layout and grouping of installation within the holding JIKOV MOTOR GROUP. Both the construction of new premises linked to the new organizational structure and of course the expected increase in revenues for the period 2017 – 2019.

You said it’s the first building of the new premises that you have approved as CEO. Why is that?
I’m not completely in favour of constructing new buildings. I’d rather have risks that bring new investments, made in new technology and powerful automatic machines. However, I’m convinced that these investments are needed and necessary for us, and will be beneficial for increasing productivity and improving the quality of work in our companies.

Investments in new production are just a part of the whole package. Where are the rest of them going?
Of course, we’ll buy machinery, which is a logical result of new projects that are underway, especially with regular customers like Scania, Mitsubishi and EZ-GO. These days they’re fully automated production centres, whether in the areas of pressure or low-pressure casting or machining. A considerable investment of seven million is also awaiting us in the form of changing the sand management in the iron foundry division at MOTOR JIKOV Slévárna a.s. This is an absolutely necessary step for us to maintain the performance and productivity of the casting line, including the high quality of castings produced.

This is a major investment. How big is it?
Investments to the tune of 250 million are required for the investments, which are, as I’ve mentioned, divided into two stages, so this year we expect 140 million. And it is understandable that investment in 2018 will not be a difference between the two amounts, since we now know that orders coming in are increasing in new projects already planned.
Part of the project is implemented with the support of the European Union, specifically the Operational Programme of Enterprise and Innovation for Competitiveness announced by the Ministry of Industry and Trade. Despite the high administrative burden, it is beneficial for us in light of the competitive struggle in this industry. I hope and I’m convinced that the current level of business opportunities will remain stable and we won’t have a similar decline as in 2008 and 2009. A stable environment will support our plans in terms of investment.