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Czechs expect Hyundai to sign car plant deal in Feb 

Reuters News

January 18, 2006

(c) 2006 Reuters Limited

The Czech government is likely to sign a memorandum with 
South Korea's Hyundai Motors in February on the carmaker's 
investment in a new automotive plant, the EU newcomer's 
industry minister said on Wednesday. 

Hyundai has said the Czech Republic was the ideal candidate 
to host its planned 1 billion euro ($1.21 billion) factory to 
get the company closer to customers in Europe, but it has yet 
to take a final decision. 

 

Industry and Trade Minister Milan Urban said a delegation of 
Hyundai officials was expected to visit the Czech Republic 
between Jan. 22 and Jan. 26 to draft the memorandum detailing 
the conditions of the investment. 

 

"It is a very important document which will define the 
obligations of both sides. I can imagine that the memorandum 
could be signed at a cabinet meeting in Ostrava during 
February," Urban said in a statement. 

 

Hyundai has led talks with the Czech government about tax 
breaks, subsidies for job creation and other investment 
incentives as it seeks to build its plant in a planned 
eastern industrial zone in Nosovice, near the northeast city 
of Ostrava. 

 

News of the plan has been followed closely by currency 
traders as its confirmation could lend support to the market. 









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