Kia Motors is bucking the recent trend of bad news from South Korean auto manufacturers by considering investing up to EUR200m in building an engine plant in Slovakia.

Speaking to the news agency Reuters , the company’s Slovakian spokesman said the investment would boost engine output in the country to 600,000 units.

“There are several options in play but the investment should be from 100-200 million euros,” Dusan Dvorak, said.

He added that a decision should be mande by the end of the year.

In October, the Hyundai Motors affiliate said it had reduced its third quarter net loss because it sold more fuel-efficient models.

KIA posted a net loss down to 22bn won ($US15.6m) compared with the 55bn won loss a year previously.

Q3 operating profit rose to 53.6bn won from the 116.4bn last year, it was the fourth consecutive quarter the company had posted an operating profit.