Under terms of the contract, the Czech state will provide investment incentives valued at a maximum of $190 million, according to the Ministry of Industry and Trade. Of this, $100 million represents tax relief on corporate income $50 million will be for financial support in the framework of strategic investments, $15 million for job creation, $15 million from the Ústí region as a discount on the land and $4.5 million in financial support for training.
Mr. Sobotka said in prepared remarks his country's offer prevailed over “severe” competition from neighboring countries.
"According to reasonable estimates, the state´s return on investment will be doubled," said Jan Mládek, the Minister of Industry and Trade. "Investment benefits consist primarily in direct and indirect employment and related levies and income taxes and effects of the construction of the hall, which will be performed under participation of the Czech companies.”
The Czech government first claimed June 16 that Nexen had committed to the Czech Republic for its plant. The signing ceremony on June 26 in Prague confirmed that report.
Nexen will start recruiting for managerial positions in the second half of 2015, The Ministry of Industry and Trade said, and in 2016 for jobs in the production.
Nexen has not yet issued any official statements on the decision, although the company has secured a number of OE contracts with European car makers in the past several months.
With annual sales exceeding $1.5 billion, Nexen is among the world's 25 largest tire makers. Europe represents about 20 to 21 percent of Nexen's global sales.
Nexen also is spending $300 million in South Korea on a second-stage expansion of its Chang-Nyeong. Once completed, annual capacity at the 2-year-old plant in southeast Korea will nearly double to 11 million units, according to company documentation.