American car parts maker Stant Manufacturing will build a €6 million factory in the east of the Czech Republic to produce car parts, a Czech investment agency said on Wednesday.

According to Reuters , the CzechInvest agency said the plant would employ at least 100 people and be built in the eastern town of Karvina, about 380km (236 miles) east of Prague.

Stant is part of Britain’s Tomkins Plc and the new factory will produce fuel caps and valves for fuel tanks for European car factories, including Ford’s Jaguar and Land Rover and others while Stant said it may set up a research and development centre, the report added.

“We are now considering locating not only production activities but design activities as well to Karvina,” it said. “The new design centre would employ up to 25 engineers.”

Reuters noted that the Czech Republic is the leader among new European Union member states in terms of foreign investment inflows per head.