2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36
The Korean car manufacturer Hyundai is building a new plant in the Czech Republic. The government in Prague wants to provide the necessary infrastructure.
The South Korean automaker Hyundai started building a plant in the Czech city of Nosovice on Wednesday with an investment volume of one billion euros. The company is creating 3,500 jobs there and up to 5,000 jobs at suppliers in the structurally weak Moravian-Silesian region, said a government spokesman. Hyundai and its sister company Kia want to build 600,000 cars a year in two plants in the Czech Republic and neighboring Slovakia from 2009. Kia operates a plant with 2,300 employees in Zilina in northern Slovakia, around 80 kilometers away.
Tax relief
The project in Nosovice was preceded by almost two years of negotiations. In return for the investments, the Czech Republic wants to waive some of the taxes for the company and help expand the infrastructure, it said. In addition, after complaints from environmentalists, households in the vicinity of the plant receive a one-off € 3,500 "to compensate for difficult living conditions". The unemployment rate in the region is around twelve percent.
According to a company spokesman, trial operation in the north Moravian town of Nosovice is to begin in the second half of 2008, and series production in the first quarter of 2009. Construction was on the brink after a bribe scandal at Hyundai last year. Criminal proceedings are pending against Hyundai boss Chung Mong Koo. He is said to have diverted company funds of around 83 million euros to create black coffers for government officials and politicians. Despite the accusation, which Chung denies, the South Korean attended the ceremony in Nosovice. (dpa)
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