Czech manufacturer Zetor Tractors shuts down production in Brno and relocates manufacturing to Asia.
According to Reuters, citing Chief Operations Officer Robert Harman:
“Manufacturing low- and medium-power tractors in Europe is not economically viable under the current conditions,” he said.
Harman explained that production will be transferred to the company’s joint venture with India’s VST Tillers Tractors, where Zetor has already been assembling most of its tractors since 2020. In addition, the company is looking for a partner in China and plans to establish a manufacturing facility in Asia.
The company says that materials and components in China and India are 30–35% cheaper, and many of its suppliers have already moved production to Asia. Being closer to those suppliers is expected to reduce logistics costs.
Zetor’s headquarters, research and development center (including work on a new model intended for the European market), and spare parts distribution operations will remain in Brno. Only 33 assembly jobs will be eliminated. Over the next five years, the company aims to export around 5,000 tractors from India.
In recent years, Zetor has faced significant financial difficulties. The company has reported a profit only once since 2018, while in 2024 it posted losses amounting to hundreds of millions of Czech korunas. Earlier in 2024, the Brno plant also stopped manufacturing its own engines and gearboxes and has since been assembling tractors using components from existing inventory.
