Sušice - Solo will close down production of safety matches in the Czech Republic at the end of the year, laying off 55 of the current 83 employees, FinancniNoviny.cz reported yesterday.

The company, which started making matches in Sušice in 1839, says it has been losing money due to the strong crown and high production costs. It will move the entire production abroad, most probably to India.

"We are losing a significant amount of money every month, mainly due to the exchange rate, but also due to a decreasing consumption of matches in Europe and around the world," said director Věroslav Puchinger.

The redundant staff will receive severance worth three monthly salaries. Some of them may find new jobs in nearby timber processing companies Solodoor and HAAS Fertigbau.

Solo's traditional logo with scissors will not disappear, only from next year it will decorate matches manufactured in Asia using the same Czech technologies.