19th March, 2004
KIA SIGNS INVESTMENT AGREEMENT
FOR SLOVAK PLANT
Kia Motors Corporation
(KMC) yesterday held a signing ceremony at the central government
building in Bratislava, Slovakia, to officially authorise the construction of
Kia's €1 billion automotive assembly and manufacturing plant in the Slovak
Republic.
Signatories to the Investment Agreement were Hyundai-Kia
Automotive Group Chairman and CEO Mong-Koo Chung and Slovakian Prime Minister
Mikuláš Dzurinda.
The cooperation agreement formalised the
commitment of Kia Motors to build its first European plant in the Slovak
Republic as well as the Slovakian government's commitment to finalise all
related internal and EU authorisations on schedule and to provide in a timely
way the neccessary structural framework for investment. Both parties also
pledged to fully co-operate and honour all mutual obligations which were
previously agreed during the negotiations that resulted in Kia's decision to
locate its plant in Slovakia.
Kia's new European assembly and
manufacturing operation will be built on 150 hectares in Slovakia's Zilina
region and will create approximately 2,400 jobs at the facility. The plant -
which will be owned and operated by Kia - will begin production in late 2006
and produce 200,000 Kia vehicles per year with the possibility under review
to expand capacity to 300,000 vehicles based on market conditions.
The
decision by Kia to build the new facility was based on continued strong sales
and market share growth in Europe. Kia is currently Europe's fastest-growing
automotive brand, and one of the fastest-growing in the world. Last year in
Europe, Kia sold a record 150,000 vehicles and this year plans to export more
than 255,000 vehicles.
"The Hyundai-Kia Automotive Group plans to
become a global top five automobile company by the year 2010 and Kia's
Slovakian plant is an important milestone towards our achievement of that
objective," said Mong-Koo Chung, Hyundai-Kia Chairman. "I am also confident
that Kia's plant will cement a strong foundation in Zilina and play a vital
role in the economic development of Slovakia, where we look forward to being
an active and responsible corporate citizen."
"I want to thank Prime
Minister Dzurinda and the people of Slovakia for their commitment to Kia,"
Chairman Chung emphasised. "Together we are now building what I am sure will
be an enduring and mutually successful relationship."
Today's signing
ceremony was attended by leading Hyundai-Kia executives and senior Slovak
government officials.
An official ground breaking event for the new Kia
plant is scheduled for 7th April.
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