(BRATISLAVA) - The Slovak government on Wednesday approved 1.15 billion koruna (34.0 million euros, 48.9 million dollars) in aid to enable South Korean car producer Kia to develop its plant at Zilina, in the centre of the country.

The aid, which has already been cleared by the EU, will help Kia to boost its annual car production capacity from 200,000 to 300,000. The 216 million euro total investment should take place this year and next, according to details provided by the government.

"The extension of Kia's production would create more than 600 direct and 1,000 indirect jobs," Kia Motors Slovakia spokesman, Dusan Dvorak, told AFP, adding that car production next year should climb to 225,000 cars from the 150,000 planned for this year.

Some of the extra production capacity should be used to manufacture the multifunctional MPV-B model, which is currently being developed, the SITA agency reported.

Kia started production at its Slovak plant, its first in Europe, in December 2006. Total investment will rise to around 1 billion euros following the production capacity increase.

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