Hyundai Motor is considering building a new plant in Europe and the Czech Republic is one possible location, the company said on Wednesday.

According to Reuters, Hyundai expects its 2005 sales to Europe, its second biggest export market after the US, to rise 23% to 462,000 units.

"Our company is considering building a new plant in the Czech Republic or other part of Europe to strengthen our business in the European market," Hyundai Motor reportedly said in a public disclosure to the Korea Exchange. "No details have been set".

The news agency noted that a Hyundai Motor spokesman said on Tuesday the company was looking at a couple of countries in Eastern Europe for a new plant, after a local newspaper said Hyundai was consulting with Czech authorities to build a new plant.