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Korean carmaker Hyundai begins construction of largest investment project in the Czech Republic

The Korean carmaker Hyundai has begun construction work on the largest investment project in the Czech Republic’s history.

04.04.2007
Korean carmaker Hyundai begins construction of largest investment project in the Czech Republic

hyundai logoThe first building on the Nosovice site occupied by Hyundai Motor Manufacturing Czech (HMMC) will house a gear unit facility. As early as the beginning of April, further construction permits will come into effect and work will begin on a press shop and body-welding shop. Hyundai’s total investment is estimated at more than EUR 1 billion (USD 1,221 million) and should create 3,500 new jobs.

 

“The Hyundai project will be beneficial for the entire Czech Republic. We estimate that full operation of the plant will boost the country’s nominal GDP growth by up to 2.5%,” Jakub Mikulasek, COO of CzechInvest. “We’ve received interest from another 20 Korean companies that want to come to the Czech Republic as suppliers,” Mikulasek adds. HMMC’s two main suppliers – Hysco and Mobis, both of Korea – will have production halls at the site of the Hyundai plant. Other companies that have announced their plans in connection with Hyundai’s investment include Dymos, Plakor, Seyong and Donghee. These firms will create over 3,500 additional jobs.

A large proportion of components will be produced in the Czech Republic. While the proportion of Czech parts used by TPCA (Toyota Peugeot Citroën Automobile) in Kolin is roughly 50%, it is expected that 65% of the components used by Hyundai will be of Czech origin.

“The company decided for the Czech Republic after long consideration of all alternatives and in very arduous competition with Poland, Hungary and Romania,” says Tomas Dosik Kim, chief legal counsel of Hyundai Motor Manufacturing Czech.

HMMC expects production testing to begin in the second half of 2008 and series production in the first quarter of 2009. The gala opening of the plant is planned for the end of April this year. The company’s i30 and Tucson models will be in production from 2008, to be joined by the new MPV in 2011. The Nosovice plant, which in the first phase will produce 200,000 cars annually (300,000 from 2011), should eventually supply the entire European market.

“With regard to the fact that Hyundai is building its first European plant in Nosovice with the most modern technology, the company’s premature withdrawal from the country is out of the question.  For example, production will involve the use of very precise robots, which practically cannot be relocated,” explains HMMC spokesman Petr Vanek.

More about Hyundai Motor Company

Hyundai Motor Company was established in 1967, eventually becoming the most significant Korean carmaker. Today the company ranks seventh overall in the number of automobiles sold on the world market. Hyundai has three manufacturing plants in Korea, with others in China, India, Turkey and the United States. The company has nearly 68,000 employees and more than 5,000 sales outlets in 193 countries.

Photos of the construction work can be downloaded here: http://www.hyundai-motor.cz/hyundai/english.php?sekce=fotogalerie