Sources in the Polish and Slovakian governments have told Reuters their countries have both made the short list for the location of a new €1.1 billion ($US1.3 billion) Hyundai Motor car plant.
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The new plant will eventually have the capacity to produce at least 300,000 units per year, and construction is expected to begin in early 2005, the report noted, adding that, in October, key executives from Hyundai Motor and affiliate Kia Motors took a one-week tour of various sites in Europe.
The Czech Republic had reportedly said it did not make the cut, while there was no official comment from the fourth candidate, Hungary, the news agency added.
According to Reuters, Hyundai Motor said that next week it would pare down its list of four candidates for the new plant to two but declined to confirm Slovakia and Poland would be on the new list.
The report said Hyundai did not comment on any of the other candidates, but the head of the Czech state agency CzechInvest, Martin Jahn, told Reuters he had received a letter from the car maker saying it would not be on the list.
“I received an official letter from Hyundai that Zatec (the Czech Republic site) has not qualified,” Jahn reportedly said.
Reuters said Hyundai Motor plans to build the plant to secure a firmer foothold in Europe, where its sales rose 34.5% in the first half of 2003 compared with a year ago.
Hyundai built a $1 billion plant in the US state of Alabama in April last year as part of its expansion, Reuters said.
Separately on Tuesday the news agency reported plans by Hyundai Motor’s Chinese joint venture to bring forward by three years plans to increase production capacity 10-fold to 600,000 units a year. Its second plant will open in 2007, Reuters added.
