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Vagonka moves production to Romania

U.S. owners of the engineering company Thrall Vagonka Studenka yesterday confirmed the manufacturer of rail vehicles is to terminate production in the Czech Republic and move it to Romania. Other foreign investors, such as Flextronics and Philips, have recently announced downsizing of their CR-based productions.

In response to the growing withdrawals of foreign investors, the opposition ODS criticized the current system of state investment incentives. ODS shadow Industry and Trade Minister Martin Riman claims foreign firms come to the Czech Republic only to take advantage of government subsidies and tax relief, but they flee to locations with more favorable conditions whenever they run into financial troubles.

(PBJ 25.iv.03)

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