Hyundai to Build Czech Plant in Up to €1 Billion Deal

South Korean automaker Hyundai announced plans in late March 2006 to build a manufacturing plant in Nosovice, eastern Czech Republic, with an investment of 800 million to 1 billion euros. The facility is expected to begin production in 2008 and reach full capacity a year later, turning out 300,000 vehicles annually, including C-segment cars, recreational vehicles, and SUVs.

The plant would create roughly 3,000 direct jobs, with an additional 10,000 positions anticipated through supplier and service networks. Czech Industry Minister Milan Urban put the total employment figure at 15,000 and projected a 1.5 percent addition to national GDP once the plant reaches full output, along with a 50 billion koruna improvement to the trade balance.

A formal memorandum between Hyundai and the Czech government was set for signing in mid-May, pending approval from relevant ministries. Prague committed to building a new motorway linking Nosovice to Slovakia as part of the incentive package.

Hyundai would become the third major automaker in the Czech Republic, alongside Volkswagen Group's Skoda and the Toyota-Peugeot-Citroen joint venture. Its affiliate Kia is already building a separate plant in Zilina, Slovakia, roughly 60 kilometers from Nosovice.

Historical summary. TurkishPress restated this wire report, first published in March 2006, in its own words.