Hyundai to launch Czech factory in drive into Europe |
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Tue, 24 Apr 2007 11:16
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PRAGUE (Thomson Financial) - The head of Hyundai Motor, Chung Mong-Koo, is to launch construction of the South Korean car giant's first European production plant in the Czech Republic on Wednesday.The plant, to be based in the far eastern town of Nosovic, represents a 1.0 bln eur investment by Hyundai and is the biggest such investment ever in the former Communist Central European country.Hyundai, the world's sixth-biggest car producer, is trying to trying to shake off domestic troubles and the threat of stepped up competition from industry newcomers such as China.The project hit a period of uncertainty owing to a slush fund corruption scandal for which Chung now faces a three-year prison sentence.The investment confirms the Czech Republic as the foremost regional, and a leading European, carmaker.Hyundia will produce its new i30 family hatchback at Nosovice, signalling its intent to grab a bigger share of the mainstream European car market. The Czech plant will later produce an MPV car-van hybrid, the company said.tf.TFN-Europe_newsdesk@thomson.comjagCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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