The Economy Ministry has presented for interdepartmental review a proposal for a state subsidy for Kia Motors Slovakia.
Under the proposal, the car maker would receive Sk1.135 billion for expanding its plant near Žilina. The subsidy would come from the Economy Ministry budget in the form of a direct subsidy to cover capital investment costs.
The subsidy and its amount has been approved by the European Commission.
Kia asked the Slovak government for a subsidy in the summer of 2006. Its goal is to expand production in the Žilina plant by 100,000 cars to 300,000 cars annually.
The total investment is to amount to €216 million, which is more than Sk7.3 billion according to the current exchange rate. The project is expected to be completed by 2008.
With the increased production, the company would create 663 more jobs with an average gross monthly salary of more than Sk17,000.
The Kia car plant in Teplička nad Váhom is the first Kia plant in Europe. The company employs 2,500 people in two shifts.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
3. Oct 2007 at 14:00