Jaguar Land Rover, a British multinational automotive company and a Tata Motors subsidiary confirmed that it will build a $1.5 billion (£1 billion) car manufacturing facility in Slovakia. If the project pushes through, it will rank as one of the biggest direct investments poured into a country within central Europe.
The said factory will follow an agreement between the carmaker and the Slovak government and will be situated in Nitra, a city in western Slovakia. The facility will eventually be operated by roughly 2,800 personnel.
"The new factory will complement our existing facilities in the UK, China, India and Brazil and marks the next step in the company's strategy to become a truly global business," Jaguar Land Rover CEO Dr. Ralf Speth says while noting that the company's "heart" will remain in the United Kingdom.
Jaguar Land Rover also poured a billion and a half on its engine plant in the UK, which also marks as one of the largest investment into a Britain-based manufacturing facility in decades
The British car manufacturer notes of Slovakia's established automotive sector, which accounts for 43 percent of the nation's industry. The exceptional logistics and the close proximity of over 300 suppliers, such as Johnson Controls Inc. and Continental AG were crucial in its decision to pick the central-European country.
"We are glad that Jaguar Land Rover has chosen Slovakia for its new world-class manufacturing facility," Slovakian Prime Minister Robert Fico comments on Jaguar Land Rover's commitment to the sovereignty that he leads. "This decision shows that, with a stable and solid business environment, Slovakia is an attractive place for investors."
Slovakia also houses facilities by other automobile manufacturers. The list includes PSA Peugeot Citroen, Kia Motors Corporation and Volkswagen AG. It is forecasted that within this year, 1 million vehicles will be produced within Slovakia. Jaguar chose it over other considered locations, such as the United States, Mexico and other European countries.
Since 2014, Jaguar managed to improve its manufacturing presence in several countries at different points of the globe. After opening its factory in Shanghai, it proceeded to start building another in Brazil before 2014 concluded.
Throughout the last five years, Jaguar Land Rover shelled out almost $17 billion (£11 billion) for new product development and new and improved facilities. In the same timespan, the company also managed to hire more than 17,000 more personnel - from 20,000 to over 37,000.
