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Korean suppliers of Kia suing Slovakia

THE SUPPLIERS of the new Kia auto plant near Žilina are preparing to sue Slovakia over the government's refusal to provide them with investment incentives.

The nine supplier companies, mostly from Korea, are demanding incentives totalling Sk331.8 million (€8.8 million). The Slovak government has rejected their claims because, under new rules on state incentives, the firms do not qualify for state subsidies.

Kia is backing its suppliers. According to Kia spokesman Karol Dvořák, the companies are "disappointed with the unchanged attitude of the Slovak government on this issue", the Pravda daily wrote.

Slovak Economy Minister Jirko Malchárek has said the government will stick to its decision and will not provide incentives to the companies.

Compiled by Martina Jurinová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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