Nošovice - The new Hyundai plant in Nošovice, which started series production of cars on Monday 10 November, will increase Czech GDP by approximately 1 percent once it reaches full production capacity.
The estimates have recently been confirmed by Industry and Trade Minister Martin Říman. The Czech foreign trade surplus should increase by up to CZK 50 billion per year, as the Korean carmaker plans to export a vast majority of its production.
Analysts say the launch of the Hyundai plant may partially offset the expected slowdown of the Czech economy. The Czech National Bank last week reduced its economic growth forecast for 2009 to less than 3 percent.
The company will ship 14,000 of its i30 superminis in November and December and another 185,000 cars next year, said Kim Eokjo, president of Hyundai's Czech unit. The plant should reach its full capacity in 2011, when it will make 300,000 cars per year, or 5 percent of the brand's worldwide output.
Small, economical cars
The company is confident that it will not have to moderate its production plans for the Czech plant despite the significant impact of the global financial crisis on the automotive industry.
"Our plant is new and fitted with modern technologies. We are making small, economical cars and have fewer employees. We are ready to stick to our production plans," says Eokjo. "I'm convinced that sales of large cars will stagnate, but sales of small and medium-sized cars will grow," the company president added.
Of Hyundai's worldwide sales, 65 percent are small cars, including the models i30, i20, i10 and Accent.
The Nošovice plant now has 1,800 employees. The number should grow to 2,200 by the end of the year and to 3,400 in 2011 as the plant reaches its full capacity.
The Czech car-manufacturing sector represents over 120,000 jobs. The Automotive Industry Association expects that up to 10,000 of them might be lost as a result of the financial crisis.
