BRATISLAVA, EUROPEAN: Taiwan's AU Optronics opened its second European base for production of LCD displays in Slovakia, in a move which could help a recovery in the heavily export-reliant economy.

The plant located in the western town of Trencin should play a key role in the manufacture, assembly and sale of large-sized LCD modules for TV makers nearby, the company said.

"With the establishment of AUO Slovakia, we are building an even more complete network ... to effectively deliver quality LCD products worldwide," Paul S.L.Peng, president of AUO's Display Business Operation, said.

The central European economy is mainly driven by the car and electronic industries, the latter being led by Samsung Electronics , Slovakia's number one exporter, and Taiwan's Foxconn Technology .

Slovakia's finance ministry earlier this month raised its 2011 gross domestic product (GDP) growth forecast to 3.6 percent from 3.4 percent on the back of higher foreign demand.

The capacity of the AUO plant should reach 240,000 items per month by the end of 2011 and the plant is expected to bring 3,000 new jobs by 2012.