Government approves Hyundai investment agreement

Cabinet has approved a proposed contract with the South Korean car manufacturer Hyundai, which intends to invest up to one billion euros in a new car plant in the Moravian town of Nosovice. In the draft agreement, the state binds itself to support the plant's construction with a 2.4 billion crown donation between 2007 and 2013. The state also offers an investment incentive of up to 2.5 billion crowns to create work places and upgrade skills of the work force. Hyundai can also expect tax leverage of up to 1.3 billion crowns. If approved by Hyundai's board of directors, Trade and Industry Minister Milan Urban will sign the agreement in Seoul in mid-May.