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Czech beverages producer Kofola investing over half a billion crowns in expansion of production

Over the next three years the Czech company Kofola, a.s., one of Central Europe’s most important producers of non-alcoholic beverages, will invest over 650 million Czech crowns in the expansion of its plants in north Moravian Krnov and central Bohemian Mnichovo Hradiste.

27.06.2007

Kofola, which currently employs approximately 1,200 people in the countries where it operates, will thus add nearly 80 employees to its workforce. Uniquely in the Czech Republic, a production line for wide-mouth bottles will be set up in Mnichovo Hradiste.

“Besides the fact that Kofola has become one the most significant companies in the Czech Republic, we mustn’t forget its long-term interest in ecology,” says Roman Cermak, CEO of CzechInvest. “The company is innovating it production within its existing operations, and thus it will not occupy any new greenfield areas, nor will it have to build a new utilities network. In addition, this investment will lower the company’s transport burden, since with the completion of both plants Kofola will supply Prague and the whole of Bohemia from Mnichovo Hradiste in the Central Bohemia region. Up to know, its products have been shipped mainly from Krnov in Moravia-Silesia.”

“Modern technologies will enable us to introduce a new, even more attractive offer of products. We estimate that our exports will grow by 400 million crowns annually, which will clearly strengthen the competitiveness of the entire Czech economy,” says Rene Sommer, CEO of the Kofola group for the Czech Republic. “Expansion of production in both plants is facilitated by our applying, through CzechInvest, for aid from the Ministry of Industry and Trade.”

The greater part of the investment will be aimed at the plant in Mnichovo Hradiste, which was originally designed to supply only Prague and Central Bohemia. Upon its expansion, Kofola plans to supply the whole of Bohemia from this plant. In Mnichovo Hradiste, the company is also installing new wide-mouth bottle technology, which to date has never been used in the Czech Republic.

“The mouth of a standard bottle is 28 millimetres in diameter; we will offer bottles with a mouth that is 10 millimetres wider. Our customers will surely appreciate this during the ever warmer summers,” adds Rene Sommer.

For more information please contact CzechInvest's Public Relations Department

Lucie Kralova, spokesperson, phone: +420 296 342 538, lucie.kralova@czechinvest.org
Jiri Sochor, PR executive, phone: + 420 296 342 832, jiri.sochor@czechinvest.org


More about Kofola

Kofola is a Czech company owned by six individuals. The company was established in 1993, when SP Vrachos, as the company was then known, acquired a soda producer in Krnov.  Today Kofola is among Central Europe’s most significant producers of non-alcoholic beverages. Its most well-know brands include Kofola, Jupi, Rajec, Top Topic, RC Cola and others. The company has five production plants: in Krnov, Mnichovo Hradiste and Klatovy in the Czech Republic; in Rajecka Lesna, Slovakia; and Kutno, Poland, near Warsaw. The company’s subsidiaries are controlled by Kofola Holding, a joint-stock company headquartered in Ostrava. The group as a whole employs approximately 1,200 people. Kofola’s revenues totalled CZK 3.5 billion last year, an increase of 21% over 2005. The company is expanding mainly in Central and Eastern Europe, having most recently introduced its traditional Kofola soft drink to the Hungarian market.

Contact: Martin Klofanda, PR Manager Kofola Holding, phone: +420 724 708 034, e-mail: klofanda@kofola.cz