Kia Motors Slovakia will build a new plant to produce engines in the Slovak Republic.

The total amount of investment including manufacturing technology will reach over EUR 100 million and will create more than 270 direct job positions in the Zilina region. The capacity of the new engine shop will be 150,000 units per year. The produced engines will be exported to the Czech Republic, where the company Hyundai Motor Manufacturing Czech will assemble them in to the vehicles such as Kia Venga, Hyundai i30 and another planned model. The new production hall, whose construction work will start in April 2010, will be located near the first engine shop.

"I am very pleased that we were able to obtain for Kia Motors Slovakia another investment in the amount of over EUR 100 million to build a new engine shop and thus to expand our overall capacity up to 450,000 engines per year. We confirm our long-term intention of Kia activities in the Slovak Republic. Our goal is the positive impact on employment in the Zilina region as well as the economic growth of Slovakia, "said In-Kyu Bae, President and CEO of Kia Motors Slovakia.

Kia Motors Slovakia has fulfilled all conditions and obtained the necessary permits to begin the construction work. Currently, the necessary landscaping work is in the process on the place where the new engine shop will be built. Major construction will start in April 2010, and will run until March 2011. In 2011, manufacturing technologies will be implemented followed by the trial production. The launch of the engine volume production is scheduled for the end of 2011. Kia Motors Slovakia plans to reach the 2nd engine shop’s production capacity of 150,000 units per year in 2012.

Since December 2006, Kia Motors Slovakia has produced more than 540,000 cars which are exported to Europe. More than 80% of the total production represents Kia cee'd in its three body versions. Around 20% of produced vehicles represent Kia Sportage. Since January 2010, the company has been producing a new model Hyundai ix35. The biggest export markets are Russia, Germany, Great Britain, Poland and Italy. Kia Motors Slovakia also produces engines as the only car producer in the Slovak Republic. In 2009, the company produced more than 243,000 engines which represent a 37% increase year-on-year. Currently, the company produces 1.4 and 1.6-liter gasoline as well as 1.4, 1.6 and 2.0-liter diesel engines.