South Korean car parts maker Hyundai Mobis is to build a factory in the Czech Republic.
The plant, which will cost 95.65 million euros, is due to open in 2017.
It will turn out lamps for up to 750,000 vehicles each year – headlights and tail light assemblies.
The agreement was signed between the car company and the Czech government, which has offered a number of incentives to Hyundai, including tax breaks.
There is already a Hyundai car-building plant in the same area, at Nošovice, which opened in late 2008.
After the signing ceremony, Czech Prime Minister Bohuslav Sobotka pointed out: “The Moravian-Silesian region has had structural problems and high unemployment for a long time with currently 80,000 people out of work there.
He added: “I trust some of them will get a new chance of employment from Hyundai Mobis.”
The Czech Republic was the first place Hyundai, and its sister company Kia, set up production facilities in Europe
Chung Myung-Chul, the head of Hyundai Mobis, said “This factory will be able to quickly and efficiently supply Hyundai and Kia plants right across the whole of Europe.”
With this agreement Hyundai Mobis becomes the latest Korean car parts supplier to invest in the Czech Republic, which is recovering from an 18-month recession that ended last year.
South Korea’s Nexen last month announced plans to build a tyre production facility there.
Between them the Hyundai Mobis and Nexen plants will create 1,900 jobs.
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