page_title: Škoda Works
section_title: 1989–2011: after fall of communism
hierarchical_section_title: Škoda Works / History / 1989–2011: after fall of communism
caption_attribution_description: Plzeň, the unfinished metro car type 81-71M in Škoda factory - Plzeň, nedokončený vůz metra typu 81-71M, vyráběný v továrně společnosti Škoda
context_page_description: The Škoda Works was one of the largest European industrial conglomerates of the 20th century, founded by Czech engineer Emil Škoda in 1859 in Plzeň, then in the Kingdom of Bohemia, Austrian Empire. It is the predecessor of today's Škoda Auto, Doosan Škoda Power and Škoda Transportation companies.
context_section_description: 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 Škoda and Škoda Auto, after the chaotic 1990s period, the Czech Škoda companies were again regrouped within the holding company Škoda Holding a.s. in 2000. In 2010, the holding company changed its name to Škoda Investment, a.s..
  Following the change in the political climate in 1989, Škoda started along a path of privatisation and used the time to come up with an optimal production programme, make new business contacts and look for markets other than those that had so far been its priority markets, communist countries.
  In 1991, a foreign partner for the passenger car works Škoda 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. Škoda Auto is now a completely-independent entity from other companies bearing the Škoda name.
  In 1992, the company was privatised 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. The expansion put the company's financial stability in jeopardy. In 1999, it concluded an agreement with creditor banks, and the restructuring of the entire capital structure of the Škoda group was undertaken. The result was yhe legal and financial stability at the company. Currently, a sectoral restructuring of production companies in the group is under way. In April 2000, Škoda 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 million CZK;(in 2020, equivalent to 14,78 million USD) later that year the Appian Group acquired the rest of its stake in a liquidation of the previous owner. 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. In September 2010, a group of four current or former Škoda or Appian managers announced that it would acquire Škoda from Appian for an undisclosed price. The Czech media speculated that the acquisition was only a formality, as the managers probably owned the parent company Appian.
  Škoda was then 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 billion CZK). Some smaller transport companies were acquired, such as part of the Hungarian company Ganz, VÚKV (owner of the Velim railway test circuit) and some transport-related assets of the former ČKD, now called Škoda Vagonka. In 2009, Škoda holding announced that the South Korean conglomerate Doosan would acquire its power section for 11,5 billion CZK (656 million USD). Finally, in March 2011, Škoda sold its Škoda Transportation subsidiary to Cyprus-based company Škoda Industry (Europe) Ltd, later renamed CEIL (Central Europe Industries) Ltd.
  As of 2012, Škoda Investment still owns the Škoda 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 billion CZK (1.18 billion euro or 1.6 billion USD).
caption: Hall of transportation section, parts of tram Škoda 14 T on left, modernized metro wagon 81-71 on right
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