September 24, 2008

Vrchlabi Will Be Enlarged

Skoda Auto (SA) (Mlada Boleslav, Czech Republic), automotive company, is to enlarge its plant in Vrchlabi. Its parent concern Volkswagen (VW) (Germany) is to decide till the end of 2008 if the plant in Vrchlabi would manufacture minicars of the brands VW and Skoda. The plan would need a complete rebuilding of the plant. Investments are estimated at CEK 6 bil at least. The Czech state would offer SA an investment incentive of several CEK mil as tax discounts. The state would also invest more than CEK 1 bil in infrastructure.

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