Czech manufacturers Baťa and Zetor shift production abroad

Major Czech industrial brands Baťa and Zetor are shifting production away from the Czech Republic to reduce costs.

Baťa has announced it will phase out production at its Dolní Němčí plant near Uherské Hradiště by 2027. This marks the end of the company’s footwear manufacturing in Central Europe. The decision affects 92 employees and is driven by market demand and the need to improve financial results. Baťa reported a loss of over 200 million CZK in 2024. Future production of specialized footwear will be relocated to countries including India and China, while specialized safety footwear will continue in the Netherlands.

Similarly, Zetor is ending tractor production in Brno. The company cited high costs for materials, energy, and labor in Europe as primary drivers. Zetor noted that materials in India and China are approximately 30 to 35 percent cheaper, which significantly impacts the final price of their tractors. While manufacturing is moving abroad, Zetor intends to maintain its development operations in Brno.