Prague - The total amount of investment of South Korea's Hyundai Mobis in the construction of a plant in Mosnov, north Moravia, will reach Kc4bn, Industry and Trade Minister Jan Mladek (Social Democrats, CSSD) said today.
"Of the amount, eligible costs covered by investment incentives will reach Kc2.6bn," Mladek said.
The draft of the investment agreement with Hyundai Mobis is expected to be approved by the government at its meeting this evening.
Hyundai Mobis is planning to create 935 jobs in the new plant which it wants to build in the Mosnov industrial zone.
An agreement with the investor is to be signed by the end of July.
Hyundai Mobis wants to build a plant producing headlights in Mosnov.
It expects to cover production for about 750,000 cars a year in the first phase of the project between 2017 and 2020, according to Mladek.
"In the second phase after 2020, the capacity should increase and cover the production of headlights for more than one million cars a year," Mladek said.
The state's support to Hyundai for purchasing tangible and intangible assets will reach Kc131m at most, according to Mladek.
Hyundai will also be eligible to corporate income tax relief for 10 consecutive taxable fiscal years, Mladek added.
In the case of Hyundai Mobis, the maximum amount of support is 25 percent of the amount of investment, because the conditions for providing public aid changed in July.
Representatives of the city of Ostrava approved a proposal to sign an investment contract and a letter of intent concerning the sale of about 18.9 hectares of land in the Mosnov industrial zone, where Hyundai is to build the plant, at the end of June.
The construction of the plant should start in summer 2015, and be finished in nine to ten months, Hyundai Mobis's representative Ivan Leixner said earlier.
Hyundai believes that it will find a skilled workforce with required technical qualifications in the region. It has also agreed with representatives of the Moravskoslezsky region that a high-quality access road to the industrial zone will be built.
According to Leixner, Hyundai Mobis is the biggest supplier of components to the Hyundai car maker operating a car plant in Nosovice in north Moravia.
Hyundai Mobis has one of its plants next to Hyundai's facility in Nosovice. The plant supplies lights, brakes and dashboards to the car maker.