Automotive parts supplier Johnson Controls Inc. plans to invest more than 47 million euros to expand its production of vehicle interior components in the Czech Republic over the next three years.
The Glendale, Wis.-based company's local subsidiary JC Interiors Czechia will 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 at its plant there at the end of 2012. 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 2.32 million euro 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 nad 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 2014.
Meanwhile, JC is also investing 9.14 million euros to build a new factory for seating components and systems in Bor in the Tachov district of western Bohemia. Construction of the unit, which will employ between 200 and 300, is set to begin next year and its launch is scheduled to start in 2015.
Johnson Controls has been operating in the Czech Republic since 1993 and today employs a total workforce of around 6,200 at a number of plants.