Chinese magnetic wire maker Gold Cup Electric to invest CZK 2bn in Czechia's Planá

China's Gold Cup Electric Apparatus Co., Ltd., a leading global manufacturer of magnetic wires, will build its first European production plant in Czechia. It will invest more than CZK 2 billion at the site of a former chocolate packaging plant in Planá, near Mariánské Lázně in the Tachov district. CzechInvest spokesperson Zdeněk Vesecký told the Czech News Agency (ČTK) today. The company plans to begin production in the second quarter of 2026. The site redevelopment has already begun, as has recruitment of the first 70 employees, he said.

"A modern facility producing magnetic wires for transformers, electric motors and equipment using renewable energy sources in the new energy sector will be built in Planá. The total investment will exceed CZK 2 billion," the spokesperson said.

"Production is scheduled to start in the second quarter of 2026, with an initial capacity of approximately 8,000 tonnes. Once full capacity is reached in 2028, total annual output will rise to as much as 20,000 tonnes," the spokesperson said.

The plant is expected to employ 200 people at that point.

"We prioritise hiring local residents and provide them with specialised training and retraining. We also offer career development opportunities for graduates and other skilled workers. Our goal is to support the region's long-term development through stable technical jobs," said Fred Feng, CEO of Gold Cup Toly Europe Electromagnetic Wire s.r.o.

According to Vesecký, the company has pledged to work actively with the town and take part in local community projects. "Our goal is for the plant to become a natural part of the town, create new job opportunities and contribute to the region's development," said Martina Němečková (STAN), mayor of Planá, which has a population of 5,700.

The facility will focus on magnetic wires for large transformers and wires for a new generation of traction motors for electric vehicles. The production process will be highly automated, with minimal need for manual labour. According to the spokesperson, production will take place in modernised halls, with noise levels kept down and logistics within the site regulated.

"Gold Cup specialises in the research, development and production of magnetic wires, including CTC (continuously transposed conductors), as well as paper-insulated and enamelled wires. It is a key supplier to China's ultra-high-voltage power transmission and transformation equipment sector and an integrated provider of flat wires used in traction motors for new electric vehicles," Vesecký said.

Its customers include Siemens, Hitachi, GE, Toshiba and Taihan. It also supplies high-precision industrial motors.

According to the spokesperson, all production to date has come exclusively from China. "The plant in Planá marks the company's first entry into production markets outside Asia and a major step in its global expansion. It is also a historic moment for Czechia, where these types of magnetic wires will be produced for the first time," he said.

According to Feng, Europe is seeing rapid growth in demand for highly efficient electric motors and transformers, which are essential to the transition to clean energy. "Thanks to its location, strong industrial infrastructure and transparent business environment, Czechia enables us to follow this trend and respond more quickly and flexibly to the requirements of key clients," he said.

Gabriela Bauerová, director of a department at CzechInvest, said the agency had in recent years observed growing interest among foreign companies in moving production closer to their customers, creating an opportunity for the Central and Eastern European region to attract technologically advanced foreign investment.

Gold Cup Electric Apparatus was founded in 1999 in Changsha, in the inland province of Hunan. It is one of the leading players in the local cable industry and ranks among China's top 500 private manufacturing companies. Its product portfolio includes power cables, bare conductors, aerial bundled insulated cables, cables for electrical equipment, winding wires and specialist cables. Its products are used in power generation, transmission and transformation, new energy sources, electricity distribution, rail transport, electric vehicles, construction, industrial manufacturing and petrochemicals. The company employs 5,000 people and exports its products to more than 35 countries.