Motorola will begin semiconductor parts production at the former factory of Tesla Piešťany a.s. in September, said Milan Cagala, the Slovak Minister of Economy, on August 20. He also said that the government had fulfilled all its duties and had signed all necessary agreements with Motorola. "The government shall not sign any other agreement with Motorola. It's only a commercial question now," he stressed.
He said that the Ministry of Economy had signed an agreement with Motorola on taking over responsibilities for environmental damage resulting from the performance of the former electronics plant in Piešťany, for an agreement on tax allowances and on Motorola' capital entry to Tesla.
But Motorola representatives were cagey when confronted with the story. Václav Šmíd, Marketing Development Manager for Moto-rola Prague , said when contacted by The Slovak Spectator that he would say nothing about the stories that had appeared in the Slovak press regarding the planned investment. "If Cagala says it, then I guess it must be true," he said. "If you want any other information, call the Ministry. They should know, if they are making all these announcements."
The government announced a program of direct support for foreign investment on June 9, by which investors which esatblished a manufacturing company in Slovakia would be eligible for a 10 year holiday from value-added tax. The main pre-condition for the tax holiday was a promise to invest over 1 billion Slovak crowns ($28.5 million). Until now, Motorola is the only foreign investor to have been admitted to the program.
But Cagala explained that the program had not been designed exclusively for Motorola. "The government has never designed anything exclusively for Motorola," he said. According to him, the government supports foreign investments generally. All prospective investors are offered support as long as they comply with the conditions set by the law. Apart from Motorola and Volkswagen, which is planning further investments in Slovakia, he did not specified which prospective investors the government was considering.
On the basis of the investment project, Motorola should create 1520 new jobs by renewing semiconductor parts production in Tesla Piešťany. No information was forthcoming regarding the size of the investment.
27. Aug 1998 at 0:00