Monday, March 27, 2006

Hyundai to build Czech car plant
South Korean carmaker Hyundai has announced a plan to build a huge plant in the Czech Republic.

The 1bn euros ($1.2bn; £700m) factory in the Moravia-Silesia region will produce about 300,000 cars a year and employ 3,000 people.

The Czech government is thought to have offered tax breaks and other investment incentives to attract Hyundai to the region, which has high unemployment.

A strong car industry helped drive the Czech economy to 6% growth in 2005.

Czech economists say the plant could boost the country's economic growth by up to 1.3% a year.

Last year the Czech economy received a similar boost from the launch of a Toyota Peugeot Citroen plant in Bohemia, which employs 3,000 workers.

The Hyundai plant is due to begin car production in October 2008, and the government hopes it will create an extra 9,000 jobs indirectly.

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