UPDATE: JLR Confirms €1.4 Billion Factory in Slovakia

Jaguar Land Rover Ltd. has signed a deal with Slovakia to build a €1.4 billion ($1.5 billion) factory in Nitra that will begin assembling vehicles in late 2018. Construction will begin next year.

The plant will employ 2,800 people and be able to build 150,000 vehicles per year. The facility is expected to increase JLR’s global production capacity by about 25%.

Slovakia will provide €130 million ($143 million) in aid over four years, beginning in 2018. JLR says the factory will make aluminum-intensive vehicles but has not indicated which models.

Slovakia also is home to assembly plants that make a combined 1 million Audi, Citroen, Kia, Peugeot, Porsche and VW vehicles annually. JLR had considered sites in the Czech Republic, Hungary, Mexico, Poland and the U.S. before choosing Slovakia in August.

British company currently builds vehicles in England and China and plans another factory in Brazil. The company also assembles vehicles in India from kits.