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CzechInvest mediated investments worth USD 1.2 billion in 2025. The projects will bolster the growth and technological transformation of the domestic economy


CzechInvest mediated investments worth USD 1.2 billion in 2025. The projects will bolster the growth and technological transformation of the domestic economy Source: AdobeStock

In 2025, CzechInvest mediated investment projects in the aggregate value of USD 1.21 billion. The results achieved last year and in previous years indicate stable and slightly increasing investment activity, while also confirming the Czech Republic’s ability to maintain the inflow of capital into high-quality projects in the conditions of heightened global volatility. The structure of the announced projects is illustrative of the ongoing shift toward technologically more demanding segments, a higher degree of automation and projects with higher value added in general.

Twenty-five investment projects were implemented with CzechInvest’s assistance in 2025, as opposed to 28 projects in 2024. The total volume of arranged investments declined by 53%, which was influenced by the high basis of comparison from 2024, when the investment volume was significantly increased by an extraordinary project undertaken by the American company onsemi in the value up to USD 2 billion. In contrast to that, the largest project announced in 2025 is an investment by Toyota Motor Manufacturing Czech Republic in the value of USD 775.76 million.

“I’m pleased that, in cooperation with the Ministry  Industry and Trade, our agency succeeded in acquiring high-quality investment projects, and I’m also pleased that both Czech firms and foreign companies that are already present in Czechia have undertaken additional investment projects, of which the largest is Toyota’s expansion. We are currently facing rising global and European competition. Therefore, me must further improve the conditions for business in order to achieve a higher level of reinvestment and to gain new, technologically advanced projects and investments in research and development. Instead of the total volume of investments and number of jobs created, the quality of investment projects is increasingly important,” said Jan Michal, CEO of CzechInvest.

“The sectoral structure of projects indicates a continuing shift toward investments in technologically more demanding areas of manufacturing and processing, with higher capital intensity and emphasis on automation of production processes,” added René Samek, head of CzechInvest’s Investment and Foreign Operations Division.

It is necessary to emphasise the fact that the reported results represent the volume of so-called decided, i.e. announced, investments, not implemented projects. The actual value of investments and associated parameters may change in the course of implementation. The published data serves as a statistical indicator of planned investment commitments. The report also shows selected examples of investments. In the case of some projects, administrative proceedings have not yet been completed or CzechInvest does not have the investor’s consent to disclose certain information, which therefore cannot be communicated.

Strong investor interest in investment incentives

Twenty investors expressed interest in investment incentives last year. Investment incentives and, in particular, the preparation and use of additional incentive frameworks (the EU Temporary Crisis and Transformation Framework – TCTF) contributed to the securing of pledged investments in the amount of USD 912.66 million out  the total volume of nearly USD 1.21 billion.

 “Investment incentives have long been an effective tool for supporting strategically important projects, particularly during the period of overall decline in investment activity in Europe. At the same time, it is clear that the current system requires acceleration and a higher degree of flexibility in order to adequately respond to the needs of investors and the dynamic development of the European market. Therefore, modernisation of the incentive framework is a necessary prerequisite for maintaining the Czech Republic’s competitiveness as an attractive destination for implementing ambitious investments,” said David Pejšek, head of the Investment Financing Department at CzechInvest.

Existing investors’ expansions determine the structure of projects

In terms of the nature of the projects, the expansions of existing investors predominated, with 18 projects, while newly incoming investors accounted for six projects. One case involved capital entry. The predominance of expansion projects mirrors the trend of the previous five years, when such projects comprised 72% of the total value of investments on average. Expansions again comprised 72% of the total value of investments last year, whereas projects of newly incoming investors comprised 24%. The aforementioned capital entry accounts for the remaining 4%.

“The dominance of expansions with respect to the total number of investment projects is a long-term trend, from which we can infer investors’ positive feedback on the business environment, sectoral ecosystem and quality of the workforce. On the other hand, the total amount of investments in individual years can be significantly influenced by a single investment project with above-average value, so no long-term conclusions can be drawn from year-on-year fluctuations in favour of expansions or, conversely, new investment projects. “If we want to monitor current economic trends, we consider it useful to focus on the number of companies investing and the sectors in which they operate,” explained Gabriela Bauerová, head of the Investment Development Department at CzechInvest. 

The largest investments came from Southeast Asia and the US

In terms of the origin of the arranged investments, foreign capital dominates, comprising a total amount of USD 1.10 billion. Domestic investments supported by CzechInvest account for USD 105 million.

Among the largest foreign investors, Japan ranks first thanks to Toyota’s pledged investment in the amount of USD 775.76 million. The planned expansion of electric-vehicle production capacity at the Toyota Motor Manufacturing Czech Republic plant in Kolín is also the largest project announced last year. Based on current investment enquiries, it appears that strategic expansion of the Toyota plant may bring forth further projects on the part of supplier companies in the course of this year.

China ranks second with investments in the volume of nearly USD 105 million, the largest part of which is due to the entry of Gold Cup Electric Apparatus Co., Ltd., a leading global manufacturer of magnetic conductors. The company is investing more than USD 91.27 million in its first European production plant in Planá u Mariánských Lázní.

South Korea is the third-largest foreign investor with investments totalling USD 68.45 million. Major Korean investments include SJG Sejong’s project in Karviná, which accounts for more than one-third (USD 23.73 million) of the total value of pledged investments from South Korea. The company is responding to the end of the era of internal-combustion engines by investing in smart and green manufacturing. The main part of the transformation of the company’s production programme should consist in introducing the production of integrated charging control units (ICCUs), i.e. electronic modules that control battery charging and power supply in modern vehicles, at the expense of the current production of exhaust systems and mufflers for automobiles with internal-combustion engines. SJG’s investment is given as example of a successful transformation of a traditional business. Employee retraining,  on which the investor is cooperating with the Moravia-Silesia Region, is crucial for the prevention of further job losses in the region following the decline of coal mining.

Two traditionally strong foreign investors, namely the US and Germany, contributed USD 54.76 million and USD 19.07 million, respectively, to the total investment volume last year. Their respective positions in the ranking of the largest investors in terms of the number of projects remain strong. Data on the total financial volume of projects over the past five years shows that, in terms of investment amounts, the US leads with a pledged amount of USD 2.63 billion, followed by Japan with USD 1.41 billion. Germany remains in third place with USD 0.56 billion.  The average investment amount is thus USD 131 million for projects from the US and USD 202 million for projects from Japan, which shows that American and Japanese companies account for the largest arranged investment cases in the last five years.

With respect to the number of projects from abroad, the US and South Korea top last year’s statistics with three projects each, followed by China, Germany and Taiwan, each of which announced two projects.

A point of interest is the first ever investment from New Zealand. Confitex, a global leader in the development and production of reusable absorbent textiles is investing USD 19.95 million in Litovel, where it will manufacture sustainable sanitary products, premium absorbent underwear and other medical accessories. The investment will bring top-level technologies to the Olomouc region and help the company’s European branch, Confitex Technology EU, meet growing demand on the European and global markets.

Also worth mentioning is the Taiwanese company C-TECH United Corporation, a global leader in the area of lithium-ion and lithium-polymer battery modules. The entry of this investor confirms the growing trust of Asian technology companies in the Czech innovation environment.

“Our intensive work in territories where CzechInvest has its foreign representatives is reflected in the results of the projects concluded last year and during the entire five-year period. Through active promotion of the Czech Republic, we are achieving very good results, especially in terms of new investments from the US, Germany and Japan. Taiwan is also worth mentioning, as its project activity has been growing steadily since the establishment of our foreign office there in 2024,” added Petr Kotrs, head of CzechInvest’s Foreign Operations Department.

Traditional sectors giving rise to innovative projects

The automotive industry, the traditional backbone of the Czech economy, maintains its strong position with investments totalling USD 889.84 million, accounting for almost 74% of arranged investments. The electronics and electrical-engineering industry accounts for 10% of investments, totalling USD 118.65 million, followed by the chemical and petrochemical industry with USD 50.20 million and a 4.2% share across sectors.

Czech projects include the planned investment by the chemical company Draslovka, which wants to produce a compound needed for sodium-ion batteries at its Kolín plant. The first phase is expected to involve an investment in the value of USD 43.09 million. The company believes that it will become a major player in the supply chain for this new type of battery following the start of commercial production in 2027.  This investment project will support the development of the domestic value chain in the area of battery technologies.

Another interesting project is the expansion of the Czech company SEKO Aerospace, a manufacturer of high-precision components for aircraft engines and power turbines. The company is preparing to start production of engine components for F-35 fighter planes and is also expanding to markets in South America, India and Africa.

Due to the specific nature of the project undertaken by Geomet, which is part of the semi-state-owned ČEZ group, it is not included in the total volume of investments arranged last year. Within its purview, CzechInvest submitted the company’s application for state aid to the Ministry of Industry and Trade of the Czech Republic. Geomet’s planned lithium-processing plant in Prunéřov in the Chomutov district would represent an investment with a budget of USD 1.54 billion. In November last year, the Czech government approved state aid amounting to USD 401.57 million. The European Commission has included lithium mining in Cínovec among strategic projects pursuant to the Critical Raw Materials Act.

Investments needed in traditional regions

From a geographical perspective, new projects are concentrated in established regions such as Central Bohemia, Moravia-Silesia and Plzeň. The largest investment, in  value  USD 862.46 million, is expected to be implemented in Central Bohemia. The Plzeň and Moravia-Silesia regions lag far behind with USD 105 million and USD 73 million, respectively. Significant investment projects have also been pledged in Prague and the Pardubice region.

The new investment projects should create a total of 1.308 new jobs. If all of the arranged investments are implemented in the announced scope, Central Bohemia should gain more than 450 new jobs, the Plzeň Region 220, and Moravia-Silesia 186.

In terms of sectoral distribution, investments in the automotive industry will generate the largest number of jobs with a total of 587, followed by electronics and electrical engineering with 339 jobs, and textile and clothing manufacturing with 100 jobs. The lower average number of jobs per project corresponds to the technologically more demanding nature of the investments, which are characterised by a higher degree of automation and robotisation of production processes. A typical example of a project generating a small number of new jobs is the investment by the American company Advanced Filtration Systems Inc., which plans to expand its current production in Havraň in the Most district to include fluid filters. Though the investment has a value of USD 10.5 million, only nine new jobs will be created in the modern and fully automated facility.

 

Contact for media:
Zdeněk Vesecký

PR manager and spokesman
+420 724 591 667
zdenek.vesecky@czechinvest.gov.cz

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