The Czech government has greenlighted a deal for the tire producer Nexen to build a new factory in Žatec. Valued at CZK 40bn, it would be the largest industrial investment currently ongoing in the Czech Republic. It’s to be developed in Žatec’s industrial zone and is expected to create 1,000 jobs in a region hampered by high unemployment. Eventually, it should employ 2,300 people.
The Czech foreign minister Lubomír Zaorálek told ČTK that the investor will get 5 percent of the total investment as incentive, with maximum limit of CZK 1.14bn. Nexen will also get CZK 200,000 for each job it creates through the investment, which includes the creation of an R&D cener. The regional administration in Ústí nad Labem has already approved sale of the 60 ha plot in Žatec. Nexen wants to start production in two years.
