Slovak car makers will probably boost production 12 percent this year as foreign demand has revived, the Association of the Slovak Automotive Industry said.

The Slovak units of Kia Motors Corp., PSA Peugeot Citroen and Volkswagen AG will assemble a record 630,000 vehicles this year, compared with 561,993 cars in 2010, the industry association said today in an e-mailed statement from Bratislava, Slovakia, reported Bloomberg.

The Slovak economy is benefiting from a revival in export demand after the 2009 recession. Peugeot and Volkswagen have announced plans to expand production in the eastern European country, attracted by its euro-area membership and labor costs lower than in the West.

Slovakia in the previous decade became a regional hub for carmaking industry as manufacturers followed their customers in setting up plants in the country. Automotive companies accounted for 37 percent of total industrial sales last year, according to the association.