16th June 2014

Potentially the biggest foreign investment for the Czech Republic

On its meeting on 16th June the Czech government authorized the investment agreement with Korean company Nexen which is planning to place its strategic investment in the Czech Republic. Nexen is going to build a tire manufacturing factory in Trinagle industrial zone in the region of Žatecko. This is a success for the Czech Republic as other destinations for this investment like Poland or Bulgarie were under consideration for this investment worth at the moment CZK 20.8 bn. This will create approximately 1 000 workplaces in the Ústecký kraj. Representatives and deputies of this region authorized selling land for the factory already during May. Czech government agreed on incentive amounting up to 5 % of total costs that are to be spent on long-term tangible and intangible assets. Government would also provide CZK 200 000 for each workplace and for the necessary training of employees. If all goes well the investment could be doubled in the near future and bring in total CZK 40 bn and 2 000 workplaces. It would then become the Czech biggest investment overcoming Hyundai investment in Nošovice. President of Association of Industry Jaroslav Hanák that it would be investment not only to manufacturing but also to research and development.

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Members of the American Chamber of Commerce in the Czech Republic