Dana Corporation announced on Wednesday it will construct a new manufacturing facility in Kadan, Czech Republic. Construction of the facility is expected to begin in 2004.

“The opening of this facility further strengthens Dana’s ability to respond quickly and effectively to marketplace demands,” said company chairman and CEO Joe Magliochetti. “The move demonstrates our commitment to the Eastern European market and expands our ability to provide innovative products to our global customers.”

The new 52,000 sq. ft. (4,800 sq. m.) facility will manufacture automotive heat exchangers and will employ approximately 200 people. The plant will supply automotive Tier I and original equipment manufacturers mainly in Germany and Eastern Europe. The town of Kadan is near the German border, approximately 60 miles (100 kilometres) northwest of Prague.

“We selected the Czech Republic because of its accessibility to qualified, skilled labour and its proximity to current and potential customers,” said Dana’s engine and fluid management group president Mike Laisure.

Dana has been working with CzechInvest, part of the Czech Republic’s Ministry of Industry and Trade, for site selection and development, in addition to local supplier development, financing, logistics, and employee recruitment.