Tata Motors-owned JLR to invest $2 bn in Slovakia

Mumbai: Tata Motors' Jaguar Land Rover will invest USD 2 billion to build a plant in Slovak Republic which will help create over 50,000 jobs, European nation's economy minister Vazil Hudak said.

"We are happy to inform you all that the first Indian company to invest in Slovak Republic is Tata's JLR. They will invest USD 2 billion in the first phase," Hudak was quoted as telling a industry meet yesterday.

He was speaking at an interactive meet organised at the World Trade Centre by the All India Association of Industries (AIAI), which issued a statement.

Hudak said this will generate 400 direct jobs at the plant and another 50,000 supplementary jobs in allied sectors.

The minister, who met Tata Sons Chairman Cyrus Mistry after the meeting, said this is the best time to invest in the country, and mentioned political safety and a robust economy as its strengths.

In August, JLR signed a letter of intent for the potential new plant in the city of Nitra in western Slovakia, according to the company website.

Speculation is rife on the quantum of investments in the plant, with some media reports pegging it at GBP 1 billion.

The company is doing a "feasibility study" with the Slovakian government to explore plans for a factory with an installed capacity of up to 3,00,000 vehicles over the next decade, it said, adding, the plant will manufacture aluminium Jaguar Land Rover vehicles and start production in 2018.

"The move marks the next step in the company's strategy to become a more competitive global business by expanding its manufacturing operations into new international locations in the future," it said.

Hudak is leading a delegation seeking Indian investments from the engineering, information technology and automobile components, and also looking for partners to start ventures in automobile, defence, agriculture, pharmaceuticals and renewable energy space, the AIAI statement said.