Compagnero to settle in Rimavská Sobota

RIMAVSKÁ Sobota may not lose an investment by the Italian electro-motor producer Compagnero after all, despite the cabinet's decision not to sell any more state property until after June elections.

In line with its overall decision to halt sales of state assets, the cabinet recently blocked the sale of a former tobacco factory and penitentiary in Rimavská Sobota to Compagnero, which plans to start production in the second half of this year. The town had been preparing the investment since May 2005.

Labour Minister Iveta Radičová has said the Sk300 million (€8 million) investment, which will give work to 200 people, is not in danger and that talks are continuing, the SME daily wrote.

"I don't know whether there have been any delays, but I talked to Justice Minister [Lucia] Žitňanská and she said that the former penitentiary would be rented out. An investor is interested and will continue to negotiate after April 10," Radičová said.

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