DGS starts construction of Frýdlant factory, it wants to employ 400 people

by   CIJ News iDesk III
2021-04-29   09:10

The construction of a new factory for roughly CZK 1.5 billion for parts for the automotive industry was started Wednesday in Frýdlant in the Liberec region by the company DGS Druckguss Systeme. It plans to employ 400 people in the production of die castings from aluminum and magnesium alloys. According to the original plans, the company wanted to start trial operation in Frýdlant in the middle of this year, but everything was complicated by coronavirus. Production should not start until next year in April.

The new plant in Frýdlant will be the company's second production plant in the Czech Republic after the Liberec factory. "The reason is the need to expand and increase production in the existing plant in Liberec. Interest in our products is growing, and to satisfy all our customers, we decided to expand our capacity in the Czech Republic. Experience from Liberec confirms that the skills and qualities of Czech employees are a stable guarantee for the future development of DGS, "said Andreas Müller, CEO of DGS Druckguss Systeme.

Frýdlant was chosen by the company also because of the good cooperation with the local town hall. "For us, this means the hope that a project will finally be created here that will employ people, because we have had a big outflow in the last 20 years," the mayor of Frýdlant, Dan Ramzer (ODS). In the past, companies in the Frýdlant region either completely stopped production or, like Knorr-Bremse, moved elsewhere. The inhabitants of the Frýdlant region thus largely commute to Liberec and the surrounding places for work.

"We are already starting to recruit special positions, which are people who work as mechatronics, electricians, hydraulics, people who will take care of technology. Of course, we are already preparing IT systems. Training will take place in the plant in Liberec and jobs for we would like to start production at the turn of the year, in December or January 2022, "added Pfohl. About a hundred workers are currently commuting to Liberec from the Frýdlant region, and according to him they are interested in moving to the new plant. The company will also recruit new people in Liberec. However, according to Pfohl, there is still a shortage of qualified technically educated workers on the market.

DGS Druckguss Systeme is a Swiss company with two subsidiaries in China and the Czech Republic. Originally, the company planned to expand the Liberec plant, due to complicated construction management, but eventually decided to build another factory in Frýdlant. In the economically weak Frýdlant foothills, DGS will be one of the largest employers. According to the Commercial Register, the Liberec company with 440 employees carried out contracts worth CZK 1.63 billion in 2019, and the economy ended with a profit of CZK 270 million. Last year's results are not yet available, but according to Pfohl, the company's turnover was about 15 percent lower.

Source: CTK