Soudek leaving Škoda Plzen

General director leaving management after eight years at the helm

Soudek leaving Škoda Plzen

* The supervisory board of Škoda Plzen a.s. removed Lubomír Soudek from its Board of Directors yesterday, at the same time proposing that he be dismissed as general director. Soudek accepted the board's decision and stepped down from the company.
(čtk, glg)
Speculation that changes would have to be made in the company's directorship were heard even before last Friday's board meeting. Company creditors have made no secret of the fact that they wanted to see changes in the directorship of the company. The Board of Directors named Deputy for Restructuralization Jiří Hlavica as general director.
Škoda Plzen owes about half of its 5 billion Kč debt to Fuji Bank, BERD, CS First Boston and other large German and British financial institutions. Škoda is also in debt to Investiční and Poštovní banka (IPB) and Komerční banka (KB).
Recent problems at the company caused Lubomír Soudek to say that he was considering leaving Škoda Plzen in October of last year. Then, allegations surfaced that Plzen's daughter companies were being tunneled by Soudek's company NERo. At that time, rumors surfaced that Soudek had signed an agreement with representatives of IPB and Komerční banks that he would resign from the directorship of the company. At a board meeting last August, those same representatives called for him to resign, but a newly-elected Škoda Board of Directors kept him in place.
First elected as general director in 1990, Soudek was reelected in 1992 when his NERo company, in conjunction with KB and IPB, won a public contest to buy a 23 percent share in Škoda Plzen. The sale kept the Czech machine-building giant afloat, avoiding massive layoffs.
On the way to rebuilding Škoda, General Director Soudek became influential in other industrial giants, both Czech and foreign, like Liaz, Tatra and Umformtechnik. But business negotiations in some developing countries, including Iran, caused Soudek problems both here and specifically, with the USA. Soudek's vision of trade with China also caused him problems.
In the past, Soudek was an outspoken critic of Klaus government trade policies, saying that pro-export policies and industry were not being emphasized as they should be.