Czech tractor manufacturer Zetor has informed trade unions and the Labour Office that it plans to end tractor production at its Brno plant, affecting 33 jobs. The notice period will expire by the end of 2026, though the company says it will complete all machines currently in production and any contracted orders.
Brno will continue to serve as the company headquarters, and research and development will remain in the country along with its expanded spare parts facility.
In a statement, Róbert Harman, CEO, said: “Manufacturing small and medium-sized tractors in Europe no longer makes economic sense under the current conditions. 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 have to change the way we operate. This does not mean we are abandoning this tractor segment; like most of our competitors, we simply will no longer manufacture it in Europe.”
The company points to increasing steel, plastic, aluminium and energy costs, noting that materials in India and China are approximately 30-35% cheaper, resulting in savings of 20-25% in the final tractor price. It adds that key suppliers for the brand shifted production to Asia years ago.
The decision comes after well-publicised financial issues within the company, which saw it shut down its engine and transmission production at the end of 2024.
Despite the shutdown of its European production facilities, Zetor states that the business is growing. Export markets, with no emission regulations, made up a significant part of this, and the company hopes to see future growth.
“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. Brno remains our centre thanks to its historical background, universities and talented young people, whom we expect to play an important role in our future expansion,” adds Róbert.