PRAGUE -- Hyundai wants more help from the Czech government before it builds a new car assembly plant here.
The Czech authorities have bought three potential plant sites in the eastern part of the country for the 300,000-unit plant.
But before Hyundai signs a contract for the factory, it wants to reopen discussions of what incentives the Czechs are offering.
It will be built in the Czech Republic, 98 percent of it will be in Nosovice, says Katerina Chura, spokeswoman from the Ostrava regional government office.
Hyundai affiliate Kia was irked when holdout landholders delayed its assembly plant construction in Zilina, Slovakia – so the Czechs worked to buy all the land for three possible Hyundai plant sites near Ostrava. Now the other two sites in Mosnov and Holesov will likely be used for suppliers.
Czech government representatives visited Hyundai headquarters in Korea January 9-11 to tell the Koreans that all the land was purchased for their favored Nosovice site.
During the visit, regional government officials also offered to build an emergency services center and heliport in Nosovice, provide 2,000 square meters of office space while the factory is built, give administrative support, change mass transport routes to the factory, and add acculturation courses for Korean managers and education for their children.
The Czech government already promised 1.56 billion koruny (E53.3 million) to buy the site and build the infrastructure. Other incentives will likely include tax credits for job creation and retraining.
Separately, the Czech ministry of Transportation says construction of the E1.97 billion D47 highway running from Brno through Ostrava into Poland would be completed in 2007, one year ahead of schedule.
Under European Union rules, national government incentives for direct automotive investment are capped at 15 percent of the projects total. Often incentives such as housing, roads, and improvements are not calculated within this amount. \