Shimano Plans Czech Factory Expansion to the Tune of CZK 185M

Shimano Czech Republic recently announced plans to expand the production of bicycle components after winning a CZK 46 million investment incentive from the government. These funds will go toward a total investment of CZK 185 million to shore up the compa-ny’s factories as well as creating some twenty new positions in the Moravian-Silesian Re-gion.
 

 This investment incentive is the first to be approved since last year’s change in legisla-tion dictating that all such incentives be approved by the Cabinet. According to govern-ment spokespeople, tax relief was approved for Shimano mainly to prevent job loss in a region already burdened by a high unemployment rate – the highest, in fact, in the country.

Analysts also report that Shimano’s investment could bring CZK 97 million to the state budget in the next decade, with the tax rebate being used for the first half of that time. With this investment it will not only increase capacity but Shimano execs expect the ex-pansion to increase deliveries by up to 11%.