16 September 1998

Volkswagen AG began the construction of two manufacturing plants in southwestern Poland which will make diesel engines and car parts.

The plants will be located in the Legnica Special Economic Zone, which offers tax breaks to foreign investors.

The engine plant, in which VW will invest about $120 million, is expected to start production at the end of June 1999. The car accessories plant, worth $70 million, will start production in the spring of 1999. The plants will employ a total of 1,020 people.

Source: PAP news agency