British carmaker Jaguar Land Rover, owned by Indian Tata Motors, plans to build a new vehicle factory in Slovakia, according to two sources quoted by the Financial Times. It will be the company’s first European production plant outside of the UK.
JLR has signed the letter of intent with the Slovakian government to build the new plant worth £1 billion in the Slovakian city of Nitra with a capacity of 300,000 cars per year.
The decision may come as a surprise considering the fact that, according to earlier reports, Poland offered ‘huge’ incentives to the Tata Motors-owned luxury carmaker and was apparently leading the race for the manufacturing site.
Janusz Piechociński, the Minister of the Economy, said in July that Poland “was in talks with a partner from the automotive sector over a £1.7 billion car manufacturing plant that would be located in the country.”
According to Polish daily Puls Biznesu, the carmarker demanded PLN 350 million in public help and an access to investment grounds as soon as in September. Poland was unable to resettle inhabitants in such short period of time.
The Slovakian plant will likely begin production in 2018.