Robots step in as cheap labour dries up in Eastern Europe


At a distribution centre near Prague, Czech yoghurt maker Hollandia Karlovy Vary installed three robotic arms last year to sort and load yoghurts onto pallets, replacing the work of 10 people who were moved to other positions. — Photos: Reuters

KOSZARHEGY, Hungary: Istvan Simon's factory in western Hungary churns out more than a million plastic parts a day but on a busy morning in one of its large production halls there is only the sound of machines clicking and whirring. Workers have all but disappeared.

Similar transformations are underway on production lines across the European Union's eastern wing as surging wage bills undermine the region's reputation as a cheap production base. Factory owners from Hungary to the Czech Republic and Poland find themselves with little choice but to invest in the automation of their manufacturing processes if they want to remain competitive.

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