Tatra Trucks is preparing the largest investment in its modern history
Tatra Trucks, the oldest Czech car manufacturer with more than 170 years of tradition, is preparing for the largest investment program in its modern history. The aim is to increase production capacity to 3,000 vehicles per year, strengthen competitiveness on global markets, and transform the Kopřivnice factory into a modern and sustainable industrial complex. The investments will be financed through a combination of bank loans, state subsidies, and an increase in share capital, which is to be discussed at the upcoming general meeting.
The management of Tatra Trucks, led by CEO Kristijan Fiket, has announced plans to invest a total of over CZK 7.3 billion, of which CZK 4.9 billion will go to Tatra Trucks and CZK 2.5 billion to environmental modernization, especially at the subsidiary Tatra Metalurgie. These funds will enable the modernization of production technologies, the digitization of processes, the construction of a new production hall and a central logistics warehouse, as well as ensure the sustainable development of the foundry and forge.
"Our goal is to transform Tatra into a modern factory that will be able to meet the growing demand for our vehicles in Western markets and around the world, while meeting strict sustainability requirements. This ambitious plan is a response to strong demand for both civilian and military vehicles and confirms confidence in the potential of the Tatra brand," said Kristijan Fiket, CEO of Tatra Trucks.
The investment program will be financed from several sources: Bank loans and internal resources will cover CZK 3.3 billion. Subsidies will cover CZK 1.3 billion for the greening of the foundry and forge at Tatra Metalurgie, representing 54% of the investment costs. An increase in share capital will bring an additional CZK 2.7 billion to Tatra Trucks and Tatra Metalurgie.
Increasing the share capital is an essential part of the financial mix to ensure that the company remains financially stable and avoids excessive debt. "The increase in share capital will enable us to maintain a healthy balance sheet and secure funds for further development beyond 2030. Without this step, the high debt burden would have prevented us from investing in the necessary repairs, expansion of operations, and new technologies to the extent proposed," explained Daniel Bekeš, Chief Financial Officer of Tatra Trucks.
Benefits of the investment for Tatra Trucks
The investment program will bring a number of specific benefits: increased production capacity, growth in sales and profitability, modernization of production, its digitization, and finally, greening, which mainly concerns the subsidiary Tatra Metalurgie.
The investment will enable production to increase from 1,548 vehicles manufactured in 2024 to 3,000 vehicles per year, with ambitions for further growth. This expansion also carries the potential to nearly double sales by 2030 compared to 2024 and will have an even more significant impact on EBITDA, which has the potential to almost triple by 2030.
Investments in machine tools, a new mechanical workshop, and a central warehouse will increase productivity, reduce capital tied up in work in progress, and losses from inefficient storage. ICT investment projects will introduce modern systems that consolidate processes, eliminate manual inputs, and improve connectivity with suppliers and customers.
The CZK 2.5 billion modernization of the foundry and forge will ensure sustainable, more environmentally friendly production of castings and forgings and increase the competitiveness of Tatra Metalurgie, which supplies its products not only to Tatra Trucks but also to dozens of other customers.
The management of Tatra Trucks has asked the board of directors to convene a general meeting in the near future to present and discuss a proposal to increase the share capital. "We are turning to our shareholders with confidence that they will support this historic step. The investment will not only strengthen Tatra's position in the global market, but also increase the value of the company for all shareholders," said Kristijan Fiket.
The investment program, which is the largest in terms of financial volume and scope of projects since the 1980s, when mass production of the T 815 model was introduced, will pave the way for the implementation of an ambitious strategy that will move Tatra among the leading European and global manufacturers in the heavy-duty all-wheel-drive utility vehicle segment.
