%C5%A0koda Works
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%C5%A0koda Works
?koda, a.s.
FoundedPlze?, Kingdom of Bohemia, Austrian Empire (1859 (1859))
FounderEmil ?koda
Defunct1999 (1999)
Area served
  • locomotives
  • aircraft
  • ships
  • machine tools
  • steam turbines
  • guns
  • trolleybuses and trams

The ?koda Works (Czech: ?kodovy závody) was one of the largest European industrial conglomerates of the 20th century, founded by Czech engineer Emil ?koda in 1859 in Plze?, then in the Kingdom of Bohemia, Austrian Empire. It is the predecessor of today's ?koda Auto, Doosan ?koda Power and ?koda Transportation companies.


1859-1899: establishment of ?koda

The noble Waldstein family founded the company in 1859 in Plze?; Emil ?koda bought it in 1869. It soon established itself as Austria-Hungary's leading arms manufacturer producing heavy guns for the navy, mountain guns or mortars along with the ?koda M1909 machine gun as one of its noted products. Besides producing arms for the Austro-Hungarian military, ?koda also manufactured locomotives, aircraft, ships, machine tools, steam turbines and equipment for power utilities and still does so.

In 1859, Count Wallenstein-Vartenberk set up a branch of his foundry and engineering works in Plze?. The output of the plant, employing over a hundred workers, included machinery and equipment for sugar mills, breweries, mines, steam engines, boilers, iron bridge structures, and railway facilities. In 1869, the plant was taken over by Emil ?koda, an industrious engineer and dynamic entrepreneur.

?koda soon expanded the firm, and in the 1880s founded what was then a very modern steelworks capable of delivering castings weighing dozens of tons. Steel castings and, later, forgings for larger passenger liners and warships went on to rank alongside the sugar mills as the top export branches of ?koda's factory.

1899-1945: before and during World War II

?koda supplied all the artillery weaponry for dreadnoughts of the Austro-Hungarian Navy Tegetthoff class

In 1899, the ever expanding business was transformed into a joint-stock company, and before the First World War ?koda Works became the largest arms manufacturer in Austria-Hungary. It was a navy and army contractor, mainly supplying heavy guns and ammunition.

Exports included castings, such as part of the piping for the Niagara Falls power plant or for the Suez Canal sluices, as well as machinery for sugar mills in Turkey, breweries throughout Europe, and guns for the Far East and South America.

The First World War brought a drop in the output of peacetime products. Huge sums were invested into expanding production capacities. By this time, ?koda Works already held majorities in a number of companies in the Czech lands and abroad that were not involved in arms manufacture. In 1917, the company had 35,000 employees in Plze? alone.

Following the emergence of the Czechoslovak Republic in 1918, in the complex economic conditions of post-war Europe the company was transformed from what was exclusively an arms manufacturer into a multi-sector concern. In addition to traditional branches, the production programme embraced a number of new concepts, such as steam (and later electric) locomotives, freight and passenger vehicles, aircraft, ships, machine tools, steam turbines, power-engineering equipment, etc.

In 1923, the company's world-famous registered trademark--the winged arrow in a circle--was entered in the Companies Register. The deteriorating political situation in Europe saw arms production rise again in the mid-thirties.

?koda manufactured the triple-barreled gun turrets for the Tegetthoff-class battleships of the Austro-Hungarian navy. Prior to World War II ?koda produced LT-35 tanks, which are better known under their German designation Panzer 35(t). These tanks were originally produced for the Czechoslovak army and were used extensively by the Wehrmacht in the Polish campaign, the Battle of France, and the German invasion of the Soviet Union. In July 1944 ?koda started production of the Jagdpanzer 38(t).

In 1924, ?koda Works acquired the Laurin-Klement car manufacturer, later known as ?koda Auto. The companies were separated after 1945, when the entire Czechoslovak economy came under government control.

1945-1989: after World War II

?koda 14 Tr trolley bus in Vilnius

After World War II, in 1945 (the year when nationalisation efforts began in Czechoslovakia) ?koda was nationalized and many sections were split from the company. The car works in Mladá Boleslav became Automobilové závody, národní podnik, AZNP, today's ?koda Auto, the aircraft plant in Prague, the truck plant became part of a conglomerate of nine truck producers headquartered in Liberec as LIAZ (Liberecké automobilové závody), although the trucks were still marketed as ?kodas.[1] Some factories in Slovakia were also split off, and other plants producing food-industry equipment.

The company was renamed Závody Vladimíra Ilji?e Lenina (Vladimir Ilyich Lenin Plants) in 1953, but since the new name caused losses of sales abroad, the name was changed back to ?koda in 1965.[2]

The factory concentrated on markets in the Soviet Union and the Eastern Bloc. The company produced a wide range of heavy machinery such as nuclear reactors and locomotives. A lack of updates to its product designs and infrastructure considerably weakened the company's competitive position and its brand.

After 1962, ?koda became well known in the USSR and other countries as a trolley bus manufacturer, beginning to export ?koda 9 Tr, one of its most successful models. The successor, ?koda 14 Tr, manufactured between 1982 and 1997, is still widely used, for example, in post-Soviet states.

In 1978 the company was turned into the government-owned group of companies ("koncern") ?koda. It was based in Plze? and consisted of the companies: První brn?nská strojírna (First Machine Works of Brno), ?KD Blansko, ?KD Dukla Praha-Karlín in Prague, Slovenské energetické strojárne S. M. Kirova (Slovak S. M. Kirov Energy Machine Works) in Tlma?e, and Výzkumný ústav energetických za?ízení (Energy Facilities Research Institute) in Brno.

1989-2011: after the fall of Communism

Hall of transportation section, parts of tram ?koda 14 T on left, modernized metro wagon 81-71 on right
Low floor tram ?koda 15 T in Prague

After the Communist Party lost power in late 1989, the company was privatized into the hands of management. Mismanagement and asset stripping led to a collapse--the company was restructured and some factories closed. Except for some smaller companies named ?koda and ?koda Auto, after the chaotic 1990s period, the Czech ?koda companies were again regrouped within the holding company ?koda Holding a.s. in 2000. In 2010, the holding company changed its name to ?koda Investment, a.s..

Following the change in the political climate in 1989, ?koda started along a path of privatization, and used this time to come up with an optimal production programme, making new business contacts, and looking for markets other than those that had so far been its priority markets, i.e. the Communist Bloc countries and the Soviet Union, which collapsed after 1989.

In 1991, a foreign partner for the passenger car works ?koda Auto a.s. was sought by the Czech government. Volkswagen was chosen, and the German firm initially took a 30% stake, rising to 100% ownership by 1999. ?koda Auto is now a completely independent entity from other companies bearing the ?koda name.

In 1992, the company was privatized by the so-called Czech method. It began expanding its production activities, acquiring the Tatra and LIAZ vehicle works and constructing a plant to produce aluminum soft drink cans. This expansion put the company's financial stability in jeopardy. In 1999, it concluded an agreement with creditor banks, and restructuring of the entire capital structure of the ?koda group was undertaken. The result was legal and financial stability at the company. Currently a sectoral restructuring of production companies in the group is under way. In April 2000, ?koda Holding a.s. took over the helm, controlling nineteen primary subsidiaries and most product lines.

In 2003, the Czech government sold its 49% stake to the Appian Group for 350 CZK million;[3] later that year the Appian Group acquired the rest of its stake in a liquidation of the previous owner.[4] The Appian Group is a holding company incorporated in the Netherlands and controlled through a screen of shell companies. The real owner or owners are unknown, despite investigations by the Czech police.[5][6] In September 2010, a group of four managers (current or former ?koda or Appian managers) announced that they would acquire ?koda from Appian for an undisclosed price.[7][8] The Czech media speculated that the acquisition was only a formality, as the managers probably owned the parent company Appian.[8][9]

?koda was subsequently focused solely on the transport sector. Other divisions have been sold, a large part of them to the Russian company OMZ (the price was not published, estimated at around 1 CZK billion).[10] Simultaneously some smaller transport companies were acquired, for example a part of the Hungarian company Ganz, VÚKV (owner of the Velim railway test circuit) and some transport-related assets of the former ?KD, now called ?koda Vagonka. In 2009, ?koda holding announced that the South Korean conglomerate Doosan will acquire its power section for 11,5 CZK billion ($656 million).[10][11] Finally, in March 2011 ?koda sold its ?koda Transportation subsidiary to Cyprus-based company ?koda Industry (Europe) Ltd,[12] later renamed CEIL (Central Europe Industries) Ltd.

As of 2012, ?koda Investment still owns the ?koda brand and some real estate, but does not perform any industrial activity. Between 2007 and 2012 the company paid dividends to Appian - a sum of 32 CZK billion (app. 1.18 billion Euro/1.6 billion USD).[13]

?koda products

Electric multiple unit ?D Class 471, commonly known as CityElefant, operated by ?eské dráhy

?koda Transportation produces various types of trolleybuses, tramcars, locomotives and rapid transit train systems. More can be found at: List of ?koda Transportation products.

Former subsidiaries

  • Power division sold to Doosan produces as Doosan ?koda Power (former ?koda Power) steam turbines, heat exchangers and condensers
  • Metallurgy division held by United Group produces as Pilsen Steel (former ?koda, Hut?, Plze?) crankshafts, turbine components or ingots
  • Nuclear division sold to OMZ produces as ?koda JS equipment for nuclear plants or oil refining, petrochemical and gas industry
  • Transportation division produces as ?koda Transportation trolleybuses, tramcars, electric locomotives, electric multiple units and rapid transit train systems.
  • ?koda Praha sold to ?EZ Group is supplier of power generation projects and their technological parts.
  • Former ?koda Vyzkum research institute now operating as VZÚ Plze?
  • TS Plze? a.s. (former ?koda TS) is active in heavy engineering, doing curing presses, hydraulic presses, equipment for rolling-mill plants and equipment for sugar-cane refineries.
  • Brush SEM, owned by UK based FKI, manufactures generators.
  • Pilsen Tools s.r.o. and ?koda Machine Tool a.s. are active in the machine tool sector.
  • Czech Precision Forge a.s. does open- die and closed-die forging of steel and non-ferrous alloys.
  • MKV Ozubená kola s.r.o. and Wikov Gear s.r.o. produce gearboxes and gear wheels.

See also


  1. ^ Schauen, Till (December 2015). "Bau-genossen" [The joys of cooperative building]. Last & Kraft (in German). Vol. 24 no. 1 (December/Januar 2016). Mainz, Germany: Vereinigte Fachverlage. pp. 62-63. ISSN 1613-1606.
  2. ^ "Výpis z rejst?íku ochranných známek" [Extract from the Register of Trademarks, file 8440, entry no. 111109] (in Czech). Prague, Czech Republic: Ú?ad pr?myslového vlastnictví [Office of Industrial Property]. Retrieved .
  3. ^ Vláda schválila prodej ?kody Holding americké Appian Machinery
  4. ^ "Rozhodnutí OF/S264/02-215/03". Compet.cz. Retrieved .
  5. ^ all: Economia, a.s. "Janou?ek - stopa, které se mnozí bojí". Hn.ihned.cz. Retrieved .
  6. ^ http://www.radio.cz/en/section/business/police-amass-damning-evidence-over-skoda-plzen-sale-no-prosecutions-likely-report
  7. ^ lidovky.cz (2010-09-20). "lidovky.cz: Velké tajemství ?eského byznysu odhaleno: plze?ská ?koda odkryla majitele". Byznys.lidovky.cz. Retrieved .
  8. ^ a b "ihned.cz: Plze?skou ?kodu koupili ?ty?i mana?e?i. Appian v pozadí ale dál z?stává v mlze". Ekonomika.ihned.cz. 2010-09-21. Retrieved .
  9. ^ "Krsek, Korecký, ?mejla a Divi? koupili firmu, která byla u? dávno jejich". motejlek.com. Retrieved .
  10. ^ a b "Jihokorejský Doosan smí p?evzít ?kodu Power". Magazin.ceskenoviny.cz. 2012-10-22. Retrieved .
  11. ^ Park, Kyunghee (2009-09-14). "Doosan Buys ?koda Power, its Biggest Purchase Abroad (Update1)". Bloomberg. Retrieved .
  12. ^ "E15: Skoda Industry me p?evzít ?kodu Transportation". Archived from the original on 2013-10-16. Retrieved .
  13. ^ "Ze ?kody odteklo 32 miliard. Neznámo kam". Lidové noviny. 2 February 2012.

Further reading

  • Grant, Jonathan A. (2018). Between Depression and Disarmament: The International Armaments Business, 1919-1939. Cambridge: Cambridge University Press. ISBN 978-1-108-42835-4. OCLC 1010995486. Online review. Focus on munitions production in the interwar period.

External links

  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.



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