South Korea's Hyundai Mobis has signed a deal with the Czech government to build a car lights plant in the eastern part of the Czech Republic.

Prime Minister Bohuslav Sobotka said Tuesday that Hyundai Mobis will invest up to 4 billion koruna ($195 million) in the factory to be built near the city of Ostrava. The project is expected to create some 900 jobs.

The factory is meant to provide supplies to the nearby Czech plant of South Korea's Hyundai Motor Co. as well as a Kia Motor Co. car plant in neighboring Slovakia.

The new factory is set to open in three years.