Skoda has announced plans to expand the capacity of its Kvasiny plant and Vrchlabí plant in Czech Republic with an investment of CZK 7.2bn ($300m) and €25m respectively.
The company has also signed a memorandum of understanding with the Czech Government and Hradec Králové authorities to improve the public infrastructure of the area surrounding the Kvasiny site.
The $300m investment will be made over the next three years, and the Czech Government and Hradec Králové authorities will be making public investments towards improvement of public infrastructure in the region.
The expansion of Kvasiny facility will generate 1300 new jobs and increase in production capacity up to 280,000 vehicles per year.
With the investment of €25m in Vrchlabí plant, the company aims to increase the production capacity of the plant up to 2000 DSG gearboxes per day.
The investment will also result in creation of 200 new jobs in Vrchlabí.
The company already has three production facilities in the country, which employs nearly 4500 people.
Skoda CEO Dr. hc Winfried Vahland said: "As an important cornerstone of SKODA production network, the Kvasiny plant makes a vital contribution to SKODA's growth strategy," says CEO Prof. Dr. hc Winfried Vahland.
"Over the coming years, SKODA will be expanding further in this location, and the company plans to invest more than seven billion crowns by 2018. Before then, Kvasiny will be experiencing the most comprehensive modernization and expansion in its 81-year history.
