14 May 1998
Czechs to sell 34% of Zetor tractor firm
THE Government of the Czech Republic is negotiating to sell a controlling 34% in Zetor, one of central Europes largest tractor manufacturers, to Motokov.
Mokotov is a former state-owned trading company which handles most of Zetors export sales.
However Motokov is not expected to have the resources to fund Zetors expansion. Zetor is keen to modernise its works and finance more new models but a shortage of funds is severely hampering further progress.
Tractor production has risen sharply from 6,500 in 1993 to 13,000 last year. But it estimates it would need to make 18,000-19,000 a year to make full use of capacity and maximise profits.
Its tractors are 15-20% cheaper like-for-like than those of top western makers such as John Deere and Agco of the USA, writes the Financial Times
- Financial Times 14/05/98 page 1V (Czech Republic:Industry & Investment survey).