A €32 million ($44.2 million) subsidy proffered by Slovakia to help Kia Motors Corp. offset costs of an expansion at its car assembly plant there clears legal hurdles with the European Commission.

Kia plans to hike capacity at the plant from 200,000 vehicles annually currently to 300,000 units by 2010, as well as add a new model into the mix.

“The project is expected to attract numerous additional investors in the car sector and therefore support the creation of new employment and economic development in the region,” the EC says in a statement.

Kia recently added output of its Sportage cross/utility vehicle at the plant, which already was building the Cee’d 5-door hatchback. Output of the Cee’d Sporty Wagon is expected to begin in earnest in August, with the 3-door Cee’d slated to enter the mix in December.

Kia plans to produce 150,000 vehicles this year, including 45,000 Sportages.