Zetor is to stop making tractors in Brno and re-locate production to India and China.
The Czech manufacturer stresses that the decision, which will affect 33 manufacturing jobs, does not change this year’s production plan, and the company will complete all tractors currently in production as well as all contracted orders over the coming months.
“Manufacturing small and medium-sized tractors (up to 130hp) in Europe no longer makes economic sense under the current conditions,” explains Róbert Harman, CEO of Zetor Tractors in a press release. “We were the last tractor manufacturer trying to keep this production in Europe, but due to high energy prices, labour costs and, above all, material costs, we are no longer as competitive as we need to be, and we must change the way we operate. This does not mean we are abandoning this tractor segment; like all our competitors, we simply will no longer manufacture it in Europe.”
“Zetor cannot subsidise production in Europe,” he continues. “We must manufacture where we can generate profits and invest in further development. We have to make this transformation if we want to remain competitive.”
Brno will continue to serve as HQ, where Zetor will continue to develop its engineering, sales and service operations, including the sales, assembly and logistics of spare parts for tractors previously sold to customers.
R&D will also remain in Brno and will continue to expand in response to demand for new models. The company says it will continue to offer tractors for the European market, but production will take place elsewhere. It is currently developing two tractor ranges that will be manufactured by Zetor India under a joint venture with VST. One of these will be launched in Europe in 2027. Zetor is also seeking a manufacturing partner in China and preparing its own production plant in Asia to ensure greater independence in manufacturing.
“We are retaining key components from proven suppliers that our customers have trusted for many years, and which guarantee product quality,” adds Mr Harman. “These include Carraro front axles, Carraro and ZF transmissions, Mita hydraulics, Fritzmeier cabs, and Deutz and Cummins engines for the European market. These components are already being manufactured in Asia with lower material costs, and relocating the entire tractor production closer to these key suppliers enables us to remain competitive in European markets, achieve profitability and generate resources for the further development of the Zetor brand.”
While manufacturing in Europe has become inefficient for Zetor in recent years, the company’s international business continues to grow. This is particularly evident with tractors for non-emission-regulated markets, where revenues are reportedly increasing by 30–50% a year, and Zetor reckons to have sold more than 1,500 units last year.
“Our goal is to export approximately 5,000 tractors from India within the next five years. The same target applies to China. Zetor is moving closer to the suppliers of key components in order to become more efficient while also accelerating the expansion of its product portfolio.”
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