Zatec, Czech Republic -- Automotive parts supplier Johnson Controls said it will invest more than EUR 47 million ($63.4 million) to expand its production of vehicle interior components in the Czech Republic over the next three years.
The US group's national subsidiary JC Interiors Czechia is to extend its output of car dashboards and door panels at a site in the Triangle strategic industrial zone near Zatec in northern Bohemia.
JC Interiors Czechia was already employing 170 workers at the plant at the end of 2012 and the project is expected to create more than 500 jobs.
Under the law, the Czech Republic government has agreed to provide Johnson Controls with a EUR 2.32 million investment incentive towards the cost of its expansion plan.
In July, the group announced it is to run down production at its Czech seating plant in Roudnice and Labem with the loss of 1,635 jobs. The termination process, due to falling car seat cover demand, is due to see the facility close by September next year.
However, EUR 9.14 million has been earmarked to build a new factory for producing seating components and systems in Bor, Tachov, western Bohemia. Construction of the 200 to 300-staff unit is set to begin next year with the launch scheduled for 2015.
Johnson Controls has been operating in the Czech Republic since 1993 and today employs around 6,200 workers at a number of plants.