The town of Dvůr Králové will purchase the former Tiba textile factory area of 3.4 hectares for 39 million CZK.

Dvur Kralove nad Labem - The city of Dvur Kralove nad Labem in the Trutnov region will purchase land and properties from Slezan Holding in the area of the former Tiba Zálabí textile factory. The city will pay 38.5 million crowns for the area, which spans 3.4 hectares and includes vacant spaces as well as industrial buildings. It could be used for the construction of sports facilities or housing, stated mayor Jan Jarolím (ANO) today.

The area in Zálabí is located near the center of the sixteen-thousand-strong Dvur Kralove. Slezan Holding purchased it in 2007 during the bankruptcy of Tiba. In 2015 and 2016, the company demolished the main factory buildings. One side of the area borders a Tesco hypermarket, while the other side is adjacent to a supermarket complex.

With the purchase, the city will also gain access roads to the area from Benešova embankment and will take over the lease contracts in the area, which generate a total annual revenue of over 1.2 million crowns.

At the same time, the city will receive the factory chimney, which is a cultural monument, free of charge. The chimney, built in 1941, stands at 83 meters and is interesting in that it includes a water tower. "Of course, its necessary maintenance will cost money in the future, but the offer to buy the land was only for the land including the chimney," the mayor stated.

According to him, the original price for the land was nearly 45 million crowns, based on expert assessments from 2015. "Following further negotiations with representatives of the company, it was reduced to just under 40 million crowns. In the end, we received an adjusted offer, where the area of the offered land was reduced by about 1200 square meters. This also resulted in a decrease in the final purchase price," Jarolím said regarding the transaction.

The city will pay the purchase price in three installments. The last installment will be paid within two years of the transfer of ownership rights in the land register. The wording of the purchase agreement is to be discussed by the representatives at the June session.

The Tiba textile factory in Dvur Kralove was once the largest Czech manufacturer of printed fabrics. Besides Dvur Kralove, it had factories in Česká Skalice, Smidary, Mostek, and Beroun, employing over 3000 people. However, in the new millennium, Tiba could not withstand the import of cheap textiles from Asia and went bankrupt in February 2007.