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PRAGUE, Mar 27 (Reuters) The Czech Republic and Hyundai Motor plan to make an announcement on Monday on the South Korean carmaker's investment in the Czech Republic, the Czech Industry and Trade Ministry said.

The ministry has called a news conference at 2:30 p.m. (1230 GMT/1800 IST), with Industry and Trade Minister Milan Urban a key speaker, along with a senior official with Hyundai. It gave no further details.

Hyundai has said it could spend around 1 billion euros ($1.2 billion) on a new car factory in the Czech Republic to produce 300,000 cars from 2008, in what would be one of the biggest foreign direct investments in the EU newcomer's history.

The Czech foreign exchange market has been on the lookout for confirmation of the deal with Hyundai, which would give a strong boost to the country's exports. The crown held flat at 28.675 to the euro by 0920 GMT (1450 IST).

Hyundai has had talks with the Czech government about tax breaks, aid for job creation and other investment incentives for its plant, expected to be set up in a planned eastern industrial zone in Nosovice, near the north-eastern city of Ostrava.

Social Democrat Prime Minister Jiri Paroubek -- in a heated election campaign where he is trailing the rightist opposition -- has advocated doing all it takes to lure Hyundai into an area of high unemployment as it could employ 3,000 people directly and create thousands more in spin-off jobs.

Hyundai aims to be among the world's top six car makers by 2010, from number seven now, and wants to increase production in overseas markets to shield itself from a surging won.

The government expects the plant to boost economic growth by 1.2-1.3 per cent a year when in full production.

A booming auto industry propelled the Czech economy to 6 per cent growth last year, the fastest growth rate on record.

REUTERS SD DS1602