PRAGUE, Czech Republic—South Korea's Nexen Tire Corp. has committed to spending $1.1 billion to build a tire plant in Zatec, Czech Republic, according to a statement and video posted on the Czech Republic government's website.
The plant near Zatec eventually will have a capacity estimated at 6 million units annually with more than 1,000 employees, the Czech government report states.
The plant will be built on a 375-acre site in the Triangle Industrial Zone near Zatec, the report states, with construction to start in 2015. A suggested completion date was not given.
Zatec is a town of about 20,000 located 50 miles northeast of Prague.
A second expansion phase could double the investment and employment to $2.2 billion and 2,300 workers, respectively, according to the report.
Landing this project for Czech Republic was the result of intensive negotiations involving Nexen, the Czech government, the Czech Ministry of Industry and Trade, CzechInvest and representatives of town of Zatec and the region of Usti on the other.
The government site does not provide any information about the scale of support the government will provide, but Sobotka said in prepared remarks his country's offer prevailed over severe competition from neighboring countries.
The Czech government first claimed June 16 that Nexen had committed to the Czech Republic for its plant. The signing ceremony on June 26 in Prague confirmed that report.