DAILY - UPDATED
EU Pumps Money To Kia’s Slovakian Plant
European Union regulators on Thursday approved 32 million euros ($44 million) in Slovak government aid to Kia Motors Corp. to expand a car plant there.
The European Commission said the aid was in line with EU state aid rules and would not give the South Korean car maker an unfair advantage over competitors.
It said the aid was part of regional aid projects to boost jobs in lesser developed areas. “The positive contribution of the overall investment project to regional development far outweighs the potential distortive effects of the aid,” the commission said in a statement.
The Kia plant officially opened its doors in April located near the northwestern city of Zilina, which is the company’s first in Europe.
The maximum capacity of 300,000 cars a year is expected to be reached by 2010 and the factory will create 3,000 jobs. The new aid will help expand the plant to meet the 2010 production target.
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