THE KOREAN carmaker KIA has taken a tough line on the Slovak government's handling of its car factory investment near north-western Slovakia's Žilina. In an official stand, the carmaker openly criticized the state for not providing subsidies to its 10 supplier firms.
KIA also said that the state had failed to meet several obligations, including road construction and the purchase of land needed for the factory, which has been delayed over 17 months, the daily SME wrote.
KIA officials claim that the company's expenses have risen sharply because of the Slovak government's poor management of its investment.
Former Economy Minister Pavol Rusko promised state aid worth Sk663 million (€17.46 million) to KIA's suppliers. However, the Slovak cabinet later rejected Rusko's offer, shortly before dismissing the minister over corruption suspicions, arguing that the suppliers wanted to invest in regions that are not eligible for state stimuli.
The carmaker is considering taking the case to court if its suppliers do not receive state incentives.
27. Feb 2006 at 0:00