Zoltek Cos. Inc. said Friday the Hungarian government pledged about $14.5 million to assist the St. Louis firm with modernizing a facility 30 miles west of Budapest.

The grant will help Zoltek expand its facility into the world's largest carbon fiber production plant, according to a company release.

Through the expansion, Zoltek committed to add 600 new employees in Hungary over the next few years.

As part of the agreement, Zoltek will establish a research and development center, and support a rapid buildup of manufacturing capacity for both acrylic fiber precursor raw material and carbon fiber.

By the end of 2009, Zoltek said it expects rated annual carbon fiber production in Hungary to reach at least 8,000 tons, compared to 800 tons at the beginning of 2005.

Zoltek Chairman, President and CEO Zsolt Rumy said in a statement that the Hungarian government's grant "is a critical element supporting modernization and expansion of the facility."

St. Louis-based Zoltek Cos. Inc. (Nasdaq: ZOLT) manufactures carbon fiber products.