EU approves state aid for Hyundai car plant in Czech Republic

EU regulators approved on Friday 111 million euros (151 million dollars) in aid from the Czech government to help South Korean car maker Hyundai Motor build a new factory in North Moravia. The European Commission said that the aid consisted of direct cash grant and the sale of land at a reduced price. The European Union's top antitrust watchdog said that the aid met EU competition rules because it would create 4,400 new jobs by 2011 in Nosovice, in the North Moravian region hit by high unemployment. Along with another factory in neighbouring Slovakia, Hyundai aims to use the plant to gain a stronger foothold in Europe, where it is still struggling to win a substantial share of the market and develop a dealership network.