Hradec Kralove, East Bohemia, June 2 (CTK) – State support for the development of the Czech Kvasiny-Solnice zone in east Bohemia where the expanding Skoda Auto car-maker has its branch, will increase from three to six billion crowns if the government approves this on Monday, CTK has learnt.
The real level of investment will depend on whether the Kvasiny and Solnice municipalities approve changes to their zoning plans enabling the establishment of a 35-hectare industrial zone in the neighbourhood of Skoda Auto, Hradec Kralove Region Governor Jiri Stepan and Pavel Tichy, director of the regional Centre for Investments, Development and Innovations, told CTK.
The biggest amount of the state-paid investments, which is estimated at 3.2 billion crowns, is to go to the construction and repairs of roads.
The headquarters and major production capacities of Skoda Auto are based in Mlada Boleslav, central Bohemia.
The government is to improve the Kvasiny and Solnice inhabitants’ lives by the construction of new pavements, roads, anti-flood measures, camera systems and repairs of community buildings.
In Kvasiny, an earth mound is to be built to separate the municipality from the Skoda Auto factories and the future industrial zone.
The state, the region and the car-maker agreed to support the Kvasiny-Solnice zone in the Rychnov nad Kneznou area. Skoda Auto said it will invest more than seven billion crowns in raising production in Kvasiny and to create 1300 jobs.
However, the car-maker has markedly increased investments and accelerated growth. In March it said it will invest almost 12 billion crowns in Kvasiny from the end of 2015 until the end of this year. It raised the staff by 2600 and it now employs about 7000 people.
Skoda Auto makes the Superb and Kodiaq models and Ateca for the Spanish Seat. At the end of July, it will launch the production of the SUV Karoq model.
The production capacity is to rise up to 295,000 cars annually. The 1.4 percent unemployment rate in the Rychnov nad Kneznou area is the lowest in the country. The national rate was 4.4 percent in April.
A total of 10,500 people, including 3000 foreigners, work in the Solnice-Kvasiny industrial zone.
However, petty crime has increased in the Rychnov area with the arrival of new workers, many of whom are foreigners. The locals started to complain about losing the feeling of safety.
The police started to intensively deal with the problem last September and they reinforced patrols in the locality in January.
A government commissioner is to focus on the situation in the area and its further development. The Interior Ministry plans to set up a coordination centre for foreigners running into problems.
($1=23.554 crowns)
