Skip navigation
Newswire

Japan's Futaba to build 45 mln euro Czech plant

PRAGUE, Aug 26 (Reuters) - Japan's car parts marker Futaba Industrial Co became the latest in a line of Japanese investors pouring money into the Czech Republic, pledging to build a new factory for 45 million euros and create 225 jobs.

CzechInvest, the state-run agency for foreign direct investment, said on Monday Futaba planned to launch production of stamping press parts, exhaust systems and other car components in the central European country in early 2005.

The new plant will be based in the central Czech town of Havlickuv Brod and will serve as Futaba's chief manufacturing base for markets in the European Union and fellow EU candidate states in the region.

The statement quoted Futaba President Itsuo Kozuka as saying favorable business climate and proximity to major European car makers were at the heart of his firm's decision to choose the Czech Republic as the investment site.

Futaba's comes shortly after Japan's Toyota and France's Peugeot plumped for the Czech town of Kolin to build a new small-cars plant.

Germany's Volkswagen , Europe's largest car maker, has lured plenty of foreign car parts makers to set up factories in the Czech Republic in the past years to become suppliers for its Czech unit Skoda Auto.

Favourable geographical location in central Europe, political and economic stability and relatively cheap and skilled labour force has made the Czech Republic the top investment target in the region.

The country has attracted the highest foreign direct investment (FDI) per capita among the 10, mostly east European, countries queuing up to join the European Union in 2004.

The strong influx of FDI into car and other manufacturing industries has propelled the Czech economy in recent quarters while buoying the Czech crown which rose to record highs last month.