Volkswagen plans to resume building cars in Bosnia after a six-year hiatus, in a joint venture with a Bosnian company in Sarajevo.

Volkswagen subsidiary Skoda and the Bosnian firm Unis plan to spend 48 million marks ($26.6 million) to renovate a plant that is to build the Skoda Felicia model, Volkswagen said.Some 1,200 jobs are anticipated, and the plant is to produce up to 30,000 cars per year by 2000, the company said in a statement from its Wolfsburg headquarters.

Volkswagen produced Golf models in Sarajevo before the Bosnian war but ended production there in 1992. The new plant is to incorporate parts of the old one.

Skoda will own 58 percent of the new venture and Unis 42 percent, under the agreement the two companies signed Friday, Volkswagen said.