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Investment aid for Kia Motors to reach Sk1.5-1.6 billion in 2004

The Slovak government will provide Kia Motors investment incentives worth Sk1.5-1.6 billion (€37-39 million) in 2004, Economy Minister Pavol Rusko told the TASR news wire.

Earlier in the day, the South Korean carmaker announced that it had chosen Žilina in northern Slovakia, rather than Poland, as the site of its €700 million plant in central Europe.

The plant should have an annual production of 200,000 cars and employ 2,400 people by 2007.

Rusko confirmed that the overall incentives would not exceed 15 percent of the investment, in accordance with the rules of the European Union, which Slovakia is due to join on May 1.

The government would also help the investor in settling the site ownership, constructing infrastructure, and procuring investment property.

An agreement on investment aid between Slovakia and Kia Motors, part of the Hyundai Group, should be signed on March 16-17.

Prime Minister Mikuláš Dzurinda said that Kia's decision to enter Slovakia was influenced by the country's fewer strikes, better infrastructure in the Žilina region, and cheaper labour force.

Compiled by Beata Balogová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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