US electronic components maker CTS Corporation will invest nearly US$22m in a new plant in eastern Czech Republic, the Czech state agency Czechinvest said on Thursday.

According to Reuters, it said CTS would hire 160 people over three years for the new plant to be built in Ostrava, the third-biggest Czech city some 220 miles (350 km) east of Prague.

The plant will produce components for the automotive industry, which has been expanding rapidly in the new European Union member country with relatively low labour costs, the report added.

On Monday, CzechInvest said Spain’s Maier Cooperative, which specialises in plastic car parts, would build a plant in Prostejov, 120 miles (250 kilometres) east of Prague.