Blog The company is constructing new manufacturing facilities in České Budějovice and Soběslav.

Construction of new production facilities, acquisition of additional automated and robotized casting and machining centers, or replacement of the sand management system in the Divisions of Gray Iron Castings are the key investments for 2017. “Investing in new halls is necessary and vital for us, and I hope they will contribute to increased productivity and improved work quality in our companies,” says Miroslav Dvořák, Chairman of the Board and CEO of MOTOR JIKOV Group a.s., in an interview.

What will be the focus of MOTOR JIKOV GROUP's investment policy this year?
As every year, it is a priority of our business plans. It’s always a tough “battle” between me and the demands of the division directors. Their requests are always higher than what we can realistically generate through depreciation and profits. This year, we have finally reached a certain consensus, dividing investments into two phases. The first, essential and urgent phase, must be completed this year. The second phase will start this year but, to a large extent, will be carried over to 2018.

A significant part of the investments will involve constructing two new halls in Soběslav and České Budějovice…
For the first time since I’ve been leading the company since 2000, I approved investments in completely new manufacturing spaces. These are halls for MOTOR JIKOV Slévárna a.s., Pressure Die Casting Division, which will house new high-pressure casting machines with clamping force of 1000 tons. These will, of course, be fully automated and robotized workplaces.
The second manufacturing hall, which we will start building this year, will serve the MOTOR JIKOV Strojírenská Assembly Division in Soběslav. We aim to use the new space for logical organization and grouping of all assembly operations within the MOTOR JIKOV GROUP holding. Both projects are aligned with new organizational arrangements and, of course, are driven by the expected revenue growth for 2017–2019.

You mentioned that this is the very first construction of new spaces you have approved in your tenure. Why is that?
I am not a big fan of building new halls. I would rather direct the risks associated with new investments into new technologies and powerful automated machines. Nevertheless, I am convinced that these investments are necessary and vital for us, and will help to increase productivity and improve work quality in our companies.

Investing in new manufacturing spaces will only take a part of the overall budget. Where will the remaining funds be directed?
Naturally, we will be purchasing machinery equipment, which is a logical outcome of the new projects that are now underway, primarily with longstanding clients like Scania, Mitsubishi, and EZ-GO. These are fully automated manufacturing centers, both in pressure and low-pressure casting, as well as machining. Additionally, there is a significant investment of around seven million in replacing the sand management system in the MOTOR JIKOV Slévárna a.s. Gray Iron Division. This is an essential step to maintain the performance and productivity of the casting line, including the high quality of the castings produced.

These are extensive investments. Could you specify the approximate amounts?
All the aforementioned investments amount to approximately 250 million CZK, divided into two phases, with 140 million CZK allocated for this year. It’s also clear that investments in 2018 will be more than just the difference between these two amounts because we already foresee additional orders emerging in the upcoming new projects.
Some projects are supported by the European Union, specifically through the Operational Programme Enterprise and Innovation for Competitiveness, issued by the Ministry of Industry and Trade. Despite the heavy administrative burden, this is beneficial to us given the competitive environment in this sector. I believe and am convinced that the current level of business opportunities will remain stable and not decline as it did in 2008 and 2009, providing a stable environment supporting our investment plans.