Blog Miroslav Dvořák: New Contract Enables Us to Restart Investments

The production of towing devices for a prestigious international partner, with a total volume of CZK 1.5 billion over five years, represents not only a major commitment but also clear proof of confidence in the Group’s top-level know-how. In the following interview, Miroslav Dvořák discusses the details of the project, its production and investment requirements, as well as its impact on employment and automation.

You have signed an important contract. Could you introduce it in more detail?

We have succeeded in winning a contract for the production of components for towing devices, with a total volume of approximately CZK 1.5 billion over five years. The contract covers the period 2027–2031 and is strategically very important for the entire MOTOR JIKOV GROUP.

The scope of production includes tow balls and connectors for various vehicle models. These are forged components that we will machine. Thanks to our know-how in precision machining, we were able to win a demanding tender process.

The finished parts will be delivered to the customer in Germany and will be used in modern electronically controlled retractable systems. The key added value we provide is consistent quality, a high technological standard, and the ability to meet competitive lead times and costs.

Why can’t these towing components be produced in a foundry, for example?

Due to demanding mechanical requirements, these components cannot be made from cast iron—they must be forged from steel. For this reason, we are not able to produce the semi-finished products internally. Although we have strong foundry divisions, this specific type of production requires different technologies.

We are currently selecting reliable suppliers of forged parts, with candidates from the Czech Republic, Germany, Hungary, and Spain.

What will be the scale of production, and how does it fit into the broader MJG strategy?

The planned production volume is 250,000 sets annually over five years. This contract fits perfectly with our existing capacities and expertise at MOTOR JIKOV Strojírenská a.s. and will allow us to restart the entire investment cycle across the MJG Group.

From an economic perspective, we expect that the combination of profits and depreciation will generate approximately CZK 150 million annually, enabling reinvestments—primarily in the modernization of our foundry operations.

What is the production timeline and what investments will the project require?

The first phase of preparation began in 2025 with the production of selected prototypes. In 2026, the project continues with a demanding stage of production preparation and sampling. This includes securing forgings and qualifying suppliers, producing fixtures, ensuring cutting tools and measuring equipment, and making adjustments to production halls. This phase will cost approximately EUR 1–1.5 million.

At the same time, it will be necessary to deliver samples in perfect condition and within strict deadlines for the certification and homologation process of the final product.

This will be followed by investments in new machining equipment, including peripherals, with an expected volume of around EUR 3 million. The first machines are planned for installation in September 2026, with additional installations following according to the customer’s ramp-up curve. Everything will be ready for the start of serial deliveries in January 2027.

Such a large contract will also impact staffing…

Naturally, the project will also affect staffing. We expect to increase our workforce by approximately 20–30 employees. Some will be transferred from other parts of MOTOR JIKOV Strojírenská a.s., while others will be newly recruited.

Given the technical complexity, we are primarily focusing on skilled workers—machine setters and quality specialists. Recruitment is already underway to ensure we are ready in time.

How difficult was it to secure this contract?

It was very challenging. The tender process lasted more than a year. There is strong competition both in Europe and globally, but thanks to our technical expertise, quality, and flexibility, we were able to demonstrate that MJG is the right partner.

The customer places high demands not only on quality but also on comprehensive project support—and we are pleased to have demonstrated our strengths.

Are you planning automation and robotics within the project?

Yes, absolutely. We are already in discussions with automation specialists regarding specific production stages where processes can be automated. This is part of our long-term strategy—to increase efficiency and maintain competitiveness not only through human resources but also through smart technologies.