Czech government approves Nexen investment plan

On 16 June the Czech Republic government endorsed one of the largest investments made in the country in the last few years; The Czech cabinet approved Nexen Tire’s plan to invest Kc 22.8 billion (£663.8 million) to build a factory in the Ústí nad Labem region of Bohemia. According to the Czech government, the project will create around 1,000 jobs.

“We’ve made more obvious steps to promote growth and reduce unemployment. The Government’s decision, which today approved an investment agreement with Nexen is a clear signal that our country has a strong interest in attracting new investors and being attractive for new investors,” commented Czech Republic Prime Minister Bohuslav Sobotka.

It is understood that the Czech Republic will support up to five per cent of Nexen’s asset purchase costs for the project, to a maximum of Kc 1.14 billion (£33.2 million). Further incentives offered include a payment of Kc 200,000 (£5,800) for each job created. An agreement between Nexen and the Czech Republic will be signed in the near future.