Eastern Slovakia loses another big investment

It is not that the country lost it but due to strict EU rules on state investment aid, the Chinese producer preferred a non-EU country, the Economy Ministry argues.

Košice industrial parkKošice industrial park (Source: Korzár - Judita Čermáková)

Linglong Tire, the Chinese rubber factory has been searching for a 100-hectare plot for its new plant in Europe, the Hospodárske Noviny economic daily wrote on August 24.

The daily explained that the Chinese firm was looking in the Czech Republic, Poland, Slovakia and Hungary. The potential Slovak location, an industrial park in the eastern-Slovak metropolis of Košice, was among its favourites, according to HN. Ultimately, however, the Chinese investor decided to build its new plant in Serbia.

Why not Košice?

“We have decided on Serbia due to low labour and energy costs,” reads a statement by The Linglong Tire company, published on the Shanghai stock exchange. The company closes the China Fortune 500, a list of the biggest companies in the country.

However, the ultimate winner is the Serbian town of Zrenjanin close to the Romanian and Hungarian borders, which will become the second production plant outside China and the sixth branch of the brand overall. The investment worth about €860 million will be launched in April 2019.

Eastern Slovakia lost out due to objective reasons

Košice lost the potential investment of BMW worth one billion euros and it has now lost another investment worth a billion.

The unofficial information suggests that the last remaining potential investor for the Košice Industrial Park is the Chinese car-maker, Zhi Dou – but as well as Slovakia, Romania is still an open possibility.

“To say that the state has lost this investment is nonsense,” said Maroš Štano, spokesperson for the Slovak Economy Ministry, as quoted by the TASR newswire. “The truth is that for the Linglong company, low costs and the amount of state aid are crucial from the point of view of its business. This was not an investment with high added value and we would have been limited by the rules of the European Union but countries like Serbia, where they ultimately decide to invest according to highly publicized information, are not limited by the rules and limits of the EU.”

Top stories

President Zuzana Caputova delivers her state of the republic address in parliament on September 27, 2021.

President Čaputová: We need to protect this world and Slovakia's place in it

In her speech about the state of the republic, the president offered a grim summary of the pandemic so far. Slovakia is in desperate need of stability.


1 h
Ahmedur Rashid Chowdhury (aka Tutul)

Bratislava reminds me of Bangladesh, says exiled writer

Ahmedur Rashid Chowdhury calls on the Slovak capital to help exiled writers and artists work through their trauma.


6 h

News digest: Fear of Covid vaccines behind low vaccination rate in Slovakia

PM does not expect national emergency to be declared. Romania toughens up rules for incomers from Slovakia. President will present her state of the republic address.


19 h
Most Slovak believe that “we” should also include foreigners, although they are quick to point out that efforts to integrate should be undertaken mainly by the foreigners themselves.

What Slovaks shouldn’t forget when they dream of the perfect foreigner

Bratislava’s mayor is right that integration is a two-way street, but even the capital still has some way to go to see foreigners as residents rather than just visitors.


23 h
Skryť Close ad