Faurecia Exhaust Systems plans to increase its production capacity significantly
this year by building a new production line at a cost of nearly CEK180 million
($US4.8 million) at its current site in Bakov. Construction started in January
and should be completed by April.

The firm is expanding because it cannot meet growing demand, despite working
a three-shift operation. FES, which is owned by Faurecia of France, expects
total turnover in 2001 of nearly CEK5.25 billion ($US140 million), compared
with over CEK1.5 billion ($US40 million) in 2000.

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Roughly one third of FES’s production is shipped to Volkswagen Group companies,
with most going to Skoda in the Czech Republic. The rest is bought by the European
operations of DaimlerChrysler, General Motors, Peugeot, Saab and Audi.

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