Hyundai to choose Slovakia or Poland.

(From The Slovak Spectator)

Byline: Beata Balogova Spectator staff

Local officials enthusiastic SLOVAKIA and Poland have been shortlisted as investment sites for South Korean carmaker Hyundai, which plans a new car assembly plant in central Europe. The $1.5 billion ([euro]1.26 billion) investment could flow either to the central Slovak town of Zilina or to Radomsko in Poland. The carmaker is expected to pick the destination for its money in early 2004, according to the SITA news wire. Hyundai had also originally considered the Czech Republic and Hungary as potential sites. "Zilina was selected as one of the two potential sites for the construction of the plant. We have carefully evaluated the project with consideration to several factors, including the supply of spare parts, the labour market, logistics and distribution costs, infrastructure, and certainly all the investment stimuli offered by the government," reads a letter that the Hyundai management sent to the Slovak Economy Ministry, according to the daily SME. Experts say that Zilina, which shares borders with the Czech Republic and Poland, has a favourable geographical location and a developed infrastructure. All industrial sectors are represented in the region, with the construction industry being dominant. However, advanced metallurgy, chemical production, energy, cellulose, and paper production are also present in the region, according to the Slovak Investment and Trade Development Agency (SARIO). Local officials are enthusiastic about the success with Hyundai so far, considering it a good signal for other foreign investors. Hyundai aspires to become the fifth biggest carmaker in the world by 2010. The new plant would strengthen Hyundai's position in Europe. During the first half of 2003, the company boosted its European sales by 34.5 percent year-on-year. Economy Minister Pavol Rusko, who has been lobbying for the carmaker to come to Slovakia for several weeks, told the press he thinks that Slovakia has much better chances of succeeding against Poland than it would have had if the Czech Republic had been selected. Rusko visited South Korea in early October shortly after being nominated to his post and firing SARIO director Ladislav Balko for what he called "the deficient ...