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TRENČÍN REGION

Dubnica draws industrial growth

Passed over by Kia, the town of Dubnica nad Váhom is nonetheless becoming a prime destination for machine industry investors, local officials say.
Delta Energy Systems, a Thai company that produces energy components, moved to the industrial park in Dubnica in May. The company invested around $20 million (Sk486.3 million, or €14.6) in land, the building, infrastructure and technical production equipment, said CEO Daniel Heri.

Passed over by Kia, the town of Dubnica nad Váhom is nonetheless becoming a prime destination for machine industry investors, local officials say.

Delta Energy Systems, a Thai company that produces energy components, moved to the industrial park in Dubnica in May. The company invested around $20 million (Sk486.3 million, or €14.6) in land, the building, infrastructure and technical production equipment, said CEO Daniel Heri.

"Depending on the further development of the Delta company and the European market, the investment could increase in the future," Heri told The Slovak Spectator.

The company is planning to increase production and enrich their portfolio with products that are currently only produced in Asia.

"Slovakia has a strong position in the world automotive industry, which creates attractive opportunities for Delta as well," Heri said.

The Delta investment has created 800 jobs for people from the region. Though Delta employs manual workers, there are opportunities for people with higher qualification as well, according to Heri.

"We are hiring people for industrial and test engineering positions, quality engineers, people for purchasing and sourcing, finance and business controlling," Heri said.

He added that the main problem for the Dubnica area at this time is the lack of qualified people.

Dubnica had originally prepared its industrial park for Kia Motors. Kia chose Žilina instead, but Dubnica became a site for several Kia suppliers, according to the town's website.

The most significant companies are the Korean company Hanil E-Hwa Automotive Slovakia, which makes textile and plastic materials for car interiors; the Slovak-Korean venture Matador-Dong Won, which makes components for car consoles; and American company Visteon, which supplies Kia with air conditioner components, the Sme daily wrote.

Dubnica has become an attractive destination for investors because of its proximity to Kia, as well as its engineering tradition and the infrastructure left behind in the region by the major machine industry enterprise from the communist era, ZŤS (Závody Ťažkého Strojárstva), local officials say.

Delta chose Dubnica nad Váhom as the location for their business because officials had already visited the town with their support staff.

Other reasons Heri listed include the availability of government incentives, infra-structure and logistics, the low cost of labour, the potential of the people in the area, and the presence of technical schools and universities.

The state supported Delta's investment with a tax allowance of $7 million (Sk170.2 million, or €5.1 million), according to the Dubnica website.

It took the company a long time to find a suitable parcel of land in the Dubnica area, according to the director of the development company that managed the factory construction.

"They wanted the site to match the philosophy of feng shui," Ivan Čarnogurský, the director of Ipec Management company, told the Pravda daily. "The whole point is to build with the maximum respect for the environment."

Čarnogurský said Delta did not follow the pattern of many other investors, whose priority is to build their enterprises at the cheapest cost possible. According to Čarnogurský, Delta's priority was to build it so that it doesn't waste energy and incorporates recyclable materials.

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