It’s not by accident that Kia’s Zilina plant in Slovakia finds itself significantly ramping up production.

From a relatively modest 150,000 units last year, manufacture is forecast to be sharply up for 2010, rising swiftly to 220,000 vehicles as the South Korean manufacturer finds success with its C’eed model, but also with high hopes for the new Sportage range.

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Zilina is situated right at the crossroads of Europe and with Russia and Poland target markets, is ideally suited to transport vehicles to those regions, with Russia starting to show signs of life again.

There’s even a railway that runs right up to the factory, while parts supplier Mobis has a massive plant right next door, making logistics a relatively straightforward proposition.

And Kia seems to have struck a canny deal with the Slovak government too, which recognises a good deal when it sees one.

The government in Bratislava injected more than EUR100m into Zilina – under EU rules 15% of start-up costs can be made available – and Kia secured finance as cash rather than loans.

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“When we decided to invest in Slovakia, we applied for State aid based on EU rules – up to 15% of eligible costs of investment,” Kia spokesman in Zilina Dusan Dvorak, told just-auto.

“It is a grant which is cash or indirect support – the State also buils the roads and railway connections.”

Slovakia is no stranger to major, heavy industry. Evidence of its recent past under a planned economy can be seen driving through the central European country, with vast factories set right in the middle of towns and belching out enormous plumes of smoke.

But Slovakia has moved on – and rapidly. It has a young, skilled workforce, epitomised by the relative youth of the Zilina staff.

Unemployment in this town of around 80,000 inhabitants was quite high and it appears Kia had no difficulties recruiting its nearly 3,000-strong workforce.

Kia insists it has”no real social issues” with its labour force, so industrial relations look to be pretty stable.

With a planned increase in work – and a possible increase to three shifts – Zillina’s future looks assured. And some canny business with sister company Hyundai down the road in Ostrava should keep the order book ticking over nicely too.

Zilina is currently on the radar of the footballing map of Europe following its team’s participation in this year’s Champions League. 

Kia is equally doing its bit to make this part of Slovakia highly recognisable.