Hyundai Mobis to get Czech investment incentives of up to Kc433m

published:

updated:
29.07.2014 13:59

Prague - The Czech government and South Korea's Hyundai Mobis today signed an investment agreement under which the Czech Republic will provide investment incentives of up to Kc433m to the South Korean investor.

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Česká vláda uzavřela 29. července v Praze dohodu o investici s korejskou společností Hyundai Mobis. Firma do výstavby závodu na výrobu světlometů pro automobily u Ostravy investuje až čtyři miliardy korun. Investiční smlouvu v Praze podepsal premiér Bohuslav Sobotka (vpravo) a prezident korejské firmy Čong Mjong-čchul. Vláda poskytne korejské společnosti investiční pobídky v maximální výši 433 milionů korun. Vlevo vzadu je primátor Ostravy Petr Kajnar. ČTK Doležal Michal

The document was signed by Prime Minister Bohuslav Sobotka (Social Democrats, CSSD) and Myung-Chul Chung, the CEO and President of Hyundai Mobis.

The firm will invest up to Kc4bn to build a plant for car headlamps near Ostrava, northern Moravia, and it will get from the Czech government Kc131m for long-term tangible and intangible assets and a ten-year income tax relief of Kc302m at most.

The city of Ostrava will provide a Kc69m relief for 18.9 hectares of land in the industrial zone Mosnov.

The new plant may be launched in three years.

Sobotka said that the investment incentives might return to the budget three times. Ninety percent of employees in the new plant like in the Nosovice plant will likely be Czechs, according to him.

The new plant may also employ people who will lose jobs due to the planned phase-out of the Paskov mine.

"The firm will be hiring workers at the time when Paskov will be cutting its mining activity. So many new jobs will be of great help to the region of northern Moravia and Silesia and ... to the local labour market," Czech Employment Office CEO Marie Bilkova said today.

Unemployment reached 9.8 percent in the Moravskoslezsky region at the end of June, and over 84,000 people were seeking a job. Czech jobless rate was 7.4 percent in June.

Hyundai Mobis plans to create over 900 new jobs, and another 600 jobs will be available at supplier companies.

The size of the investment makes it the second biggest project in the country over the past five years. It is also the third largest South Korean investment.

The Moravskoslezsky region has large industrial zones and enough workforce which is optimal for the car industry development, said Myung-Chul Chung.

The region is becoming an important base of Mobis´s strategic global expansion, he said.

The firm will do its utmost to meet the expectations and boost the development of the regional economy. The new facility will be environmentally-friendly, said Myung-Chul Chung.

"I am pleased that we have beaten other countries, mainly Slovakia, where Mobis planned to build its plant too," said Industry and Trade Minister Jan Mladek.

The new factory will be supplying headlights for car makers Huyndai in Nosovice and Kia in Zilina in the north of Slovakia.

In the first stage of the project, between 2017 and 2020, the investor plans to produce headlights for 750,000 cars a year, and in the second stage after 2020 they will be headlights for up to one million cars a year.

The construction of the plant is to begin in the summer of 2015 and it will be completed in nine to ten months.

Written by:
www.ctk.cz

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