Kia contract leaked

THE CONTRACT between Slovakia and the South Korean carmaker Hyundai/Kia was leaked and parts were published in the Domino fórum weekly.

According to the document, which was approved in March, Kia will receive additional state assistance if it decides to invest more than the originally announced Sk30 billion (€746 million), the Slovak daily SME wrote. Kia, on the other hand, is not bound to invest any concrete sum of money.

Economy Minister Pavol Rusko would not comment on the information and also refused to confirm its veracity.

Slovakia has committed itself to contributing €1,750 per new job created by the carmaker and the country will thus pay Sk210 million (€5.2 million) to Kia, which plans to employ 3,000 people in a new plant near Žilina.

Slovakia is committed to paying interest on loans that Kia will have in relation to the construction of the plant. The Slovak cabinet also pledged that it would do all that is possible to keep businesses near Žilina from making automotive products other than those for Kia.

According to the contract, Slovakia is also bound to represent Kia if the European Commission finds the Slovak state assistance to the carmaker problematic.

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

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