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Cabinet approves investment aid for Trnava carmaker

The Slovak cabinet approved investment aid of €18.6 million for Peugeot Citroen Automobiles Slovakia (PCA Slovakia). Slovakia fought for the investment with France, Economy Minister Peter Žiga stated.

PSA Peugeot Citroën (Source: TASR)

The cabinet approved the investment incentive for the Trnava-based plant of French carmaker on May 10, the SITA newswire wrote. The whole amount is intended for a new investment project to expand production of a new “B segment” model and it will be provided in the form of tax relief.

The investment project will create 420 new jobs and the car producer will invest another €165 million. Once the investment plan is completed, the current production capacity will be boosted from 300,000 to 360,000 vehicles per year. Of the company's new model, 180,000 units should be made in Trnava. Production of the new model should begin at the end of next year. Full production capacity will be achieved in 2020.

“We fought for this investment with France, which is the mother country of PSA,” minister Žiga said, as quoted by the TASR newswire. “Had we not offered the investment stimulus, it is possible that the company would move production back to France,” he added.

“The implementation of the investment plan with justified investment expenses of the nominal sum of €99 million is spread over 2016 to 2021, the ministry writes, as cited by TASR. “In direct connection with the investment plan, the applicant will create 420 jobs by the end of 2018.”

The French car company started to produce its fourth model in the Trnava plant at the end of 2016: the new Citroën C3 model.

Topic: Automotive

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