30th June 2014

Competitiveness: Czech Republic signs an agreement with Korean firm Nexen

Czech Republic gained investment of 22.8 billion CZK from Nexen Tire, the third-biggest investment in the country’s history. The investment will go into construction of a tire factory in the Triangle industrial zone near Žatec in the Ústí region. New factory, with an estimated volume of six million units per year, means more than 1,000 new jobs for the country. Further, next phase - an expansion in the value of up to CZK 45 billion- is expected. Nexen could thus employ more than 2,300 people in future. Korean investor and the Czech government, Czech Ministry of Industry and Trade, CzechInvest, the Ústí region, and the city of Žatec held negotiations over thirteen months. Czech Republic won the investment over Poland and other neighboring countries, which took part in a contest. Construction of the factory is planned for 2015. In the agreement, the Czech government is committed to providing investment incentives in the total value of 3.8 billion CZK, tangible aid in the value of 1.1 billion CZK in connection with the strategic investment, tangible aid for job creation in the amount of 300 million CZK, corporate-tax relief in the amount of 2 billion CZK, compensation to the Ústí region for a discount on land plots from the ISPROFIN program in the amount of 302 million CZK and tangible aid for training and retraining in the amount of 92 million CZK.

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Members of the American Chamber of Commerce in the Czech Republic