Hyundai Motor to Build European
Production Center in Czech Republic
Czech prime minister promises full support for Hyundai's 1 billion Euro investment project

Hyundai Motor Co. plans to build an automobile manufacturing plant in the Czech Republic in a bid to strengthen its presence in the European Market. The projected manufacturing facility, when completed as planned, will be Hyundai Motors'fourth overseas plant following ones in Turkey, China and the United States.
Hyundai Motor Chairman Chung Mong-koo met with Czech Prime Minister Jiri Paroubek at the prime minister's residence in Prague on September 30 and discussed a plan to construct Hyundai Motors'
European car manufacturing plant and ways of promoting cooperation in the development of the automobile industries of both countries, the Korean carmaker said in a news release.
Officials familiar with the plan said Hyundai Motor is pushing ahead with a $1 billion Euro investment project designed to build a facility capable of churning out 300,000 units per annum, and the planned plant will break ground next year with a target of being operational in late 2008.
Chairman Chung said during his meeting with the Czech prime minister, "Hyundai Motor, which has manufacturing centers in major regions of the world, except for Europe, has scrutinized the necessity for its entry into the European market, and the Czech Republic, emerging as an economic hub of Central Europe following its accession into the EU, is an ideal place for constructing a plant." Chung expressed the hope that the Czech government will tender active cooperation and support the process of selecting a site, building an infrastructure and investment incentives.
Prime Minister Paroubek was quoted as saying that he has heard Hyundai Motor's dazzling growth through European media reports and his country will not spare any effort and provide full support from both government and private sectors in attracting a Hyundai Motor plant.
Also present during the meeting between Chairman Chung and Prime Minister Paroubek were Czech government officials, including Radomil Novak, chief of the Czech investment agency, who have showed an active attitude in luring an investment from Hyundai by explaining details of a plan for supporting the Hyundai Motor project and listing to the Hyundai? questions and demands.
Ostrava, 230km east of Prague, is the most likely to be a site for hosting the projected Hyundai Motor plant.
Hyundai Motors'sprojected construction of a European manufacturing facility is aimed at coping with possible trade conflicts, caused by the existence of regional economic blocs, minimizing currency fluctuation risks and securing a competitive edge through a reduction of customs and logistics costs. The planned Hyundai Motor plant is expected to produce models strategically tailored to the tastes and needs of European consumers.
If and when the planned plant is built as planned, Hyundai Motor Co. will be the third foreign company to manufacture cars in the Czech Republic following Skoda and PSA. Hyundai Motors' planned entry into Europe, the second largest automobile market of the world is expected to cap Hyundai Motors' continuous scheme to build a global automobile manufacturing infrastructure with the goal of becoming a global automaker. Hyundai Motor has built manufacturing facilities in Turkey, China and the United States following the operation of a plant in India in 1997.
When Hyundai Motor dedicates an European manufacturing facility, the Korean automaker, together with the Frankfurt Technology Institute and the European sales company, will build up a local development-production-sale network designed to put on the market models tailored to the sentiment and tastes of the European customers by localizing everything raging from design to production and marketing in order to meet satisfaction for European customers and raise the brand power of the company.
Statistics released by Hyundai Motor showed that the number of Hyundai models sold on the European region surged from 81,977 in 1996 to 402,131 in 2004. In the first eight months of the year, 270,141 Hyundai models were sold there.
The new Click, unveiled by Hyundai Motor recently in the European market for the first time, is strategically designed with European styles, reflecting European consumers'sentiment and needs, and it is expected to serve as a springboard for accelerating its bid to make a foray into the market. nw

Hyundai Motor Chairman Chung Mong-koo shakes hands with Czech Prime Minister Jiri Paroubek following their talks at the prime minister? residence in Prague on Sept. 30.