South Korea's largest auto parts producer, Hyundai Mobis, plans to invest some €130 million into the construction of a new production plant in Slovakia, on-line daily Korea Herald reports.
According to the Korea Herald, Slovakia agreed to provide Hyundai with the same package of investment incentives that it offered to the carmaker Kia Motors, news wire TASR wrote.
Kia Motors, which was acquired by Hyundai in 1998, will build a €700 million production plant near the northern Slovak city of Žilina that should employ some 2,400 people and turn out around 200,000 cars a year from the end of 2006.
The contract between the Slovak government and Kia Motors is expected to be signed on March 17.
"In the beginning, the Slovak government planned to provide the incentive package only to the Kia carmaker. But we have achieved the same benefits following an agreement with the government," the online Korean daily was told by a Hyundai Mobis official.
As in the case of Kia Motors, the package offered to Hyundai includes free provision of lands and tax benefits up to 15 percent of the total investment. The 15-percent limit is set by the regulations of the European Union, which Slovakia is due to join in May.
The new Hyundai Mobis plant will be located next to the Kia plant, and their construction carried out simultaneously.
Established in 1977 as Hyundai Precision Industry, Hyundai Mobis has been the major auto parts supplier to Hyundai and Kia for several years, selling them around 90 percent of its total production.
Compiled by Beata Balogová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
12. Mar 2004 at 9:59