Czech industry stalwart ZETOR TRACTORS is cutting costs after announcing changes to its manufacturing and business strategy. The strategic steps taken by the management will lead to a year-on-year cost reduction of more than CZK 200 million. After years of crisis, ZETOR will thus return to profitable figures.
ZETOR TRACTORS is reducing its costs and focusing on optimizing company processes to offer its customers the best products at competitive prices.
"Reducing costs is key. We achieve this by increasing the efficiency of both workers and technical and management staff, digitalization, energy savings, and, above all, by significantly reducing the production and storage space of the plant. In addition, we are optimizing our business model, including affiliates and subsidiaries abroad. These steps mean a significant decrease in costs - by more than CZK 200 million year-on-year. As a result, Zetor will return to profit in 2025 after the crisis years.
This will give us significant room for maneuver and a further increase in investment in new models and innovations in the tens of millions of crowns per year. We are preparing for future challenges so that we can offer our customers the most modern and reliable products. Cost optimization and the development of new models are key steps towards achieving this goal and ensuring long-term customer satisfaction," said Róbert Harman, CEO of ZETOR TRACTORS.
The Brno-based industrial company is currently preparing for the production of more advanced tractor models with higher added value. The company's change of direction aims to gain a strong position in the most demanding markets in Europe. In connection with the change in production and business strategy, the company is undergoing a transformation that also involves the dismissal of 160 employees across the company. The production capacity needed to meet market demands will be maintained. Further recruitment is planned for the second half of 2025 and especially for 2026.