The Canadian company Bombardier is planning to extend its factory in the Czech town of Česká Lipa through an investment of CZK 1.47bn, according to the zdopravy.cz server. The train and tram manufacturer has asked for state subsidies to help with the purchase of machinery needed for the new portion of the factory. However, the Ministry of Industry and Trade is only willing to offer tax relief worth CZK 346m. It argues that most of what will be done in the new facility involves merely soldering together existing components that will be exported for completion elsewhere. The Czech state will continue to provide incentives for new investments, but wants to prioritize those with higher levels of added value creation. Bombardier’s project is expected to result in the creation of over 620 new jobs.
