Czech Republic: merger of glass and jewelry manufacturers

Faced with the threat of strong competition from Asian producers, Czech glass and jewelry makers Ornela and Bizuterie Ceska Mincovna (BCM) will merge to protect their markets, it was reported on 25 Se…

Faced with the threat of strong competition from Asian producers, Czech glass and jewelry makers Ornela and Bizuterie Ceska Mincovna (BCM) will merge to protect their markets, it was reported on 25 September 2003. Terms and conditions of the merger are under discussion. The aim is to centralize production activities and sales, and make jewelry production more efficient. Ornela CEO Josef Halfar said the firms export 90% of their jewelry output. Ornela, which employs 1,200 people, specializes in the production of glass and glass pearls. It has a share capital of CZK 0.85 billion. BCM, which employs 800 people, operates a mint, which accounted for 30% of its 2002 sales, and manufactures metal jewelry and clothing. It has share capital of CZK 0.61 billion. BCM general director Miroslav Jotov said the current system of collaboration between Ornela and BCM is unsatisfactory, although there are capital ties between the companies: each holds 20% of the other. The resulting company will receive a new name.