US companies do not want to leave

Several US companies like to invest in R&D.

The car seat producer Adient runs a technology centre in Trenčín.The car seat producer Adient runs a technology centre in Trenčín. (Source: TASR)

Nowadays, almost forty-five thousand people work in US companies in Slovakia. The number has grown since 2014, when the American Chamber of Commerce in Slovakia (AmCham Slovakia) recorded about 41,000 employees.

“Particularly in IT and shared service centres we have seen growth in recent years,” Michal Krčméry, director of government affairs and spokesperson of AmCham Slovakia, told The Slovak Spectator.

Krčméry does not believe Donald Trump’s amendments to the US trade policy had a major impact on the Slovak economy. However, the future situation may not be favourable for further investment due to several factors.

Largest employer dismisses

Related articleFuture economic crisis should not affect US investment Read more 

Currently, the biggest problem has resulted from the unstable steel market, which influences the largest US employer in Slovakia, U.S. Steel Košice (USSK). The company now employs about 12,000 people, or almost 7 percent of the economically active population in Košice, according to Boris Tomčiak, an analyst with the Finlord company.

As a reaction, in July 2019, the management of USSK announced that by the end of 2021 it will reduce the number of employees working at the plant and its subsidiaries by 2,500. The current state in the plant has resulted from the European Union’s emission policy and non-functional protection against cheap steel from non-EU countries, stated the spokesperson of the Economy Ministry Maroš Stano, as written by the Hospodárske Noviny daily.

In an official statement, the company wrote about the controlled cost-cutting measures, including the reduction in iron and steel production by shutting down one of three blast furnaces.

In addition to many jobs for eastern Slovakia, the plant provides above-average salaries and has many subcontractors.

“If production in the Košice steel mill was stopped completely, it would be a very negative event for the entire Košice Region,” Tomčiak told The Slovak Spectator.

However, Tomčiak does not see such a scenario. The management of the company wants to ensure long-term production through a production optimisation plan, he said.

Mainly service centres

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Get daily Slovak news directly to your inbox

Top stories

COVID-19 causes restaurant owners to sell their businesses

Hundreds of gastro facilities are being advertised on real estate websites.

A waiter brings a meal to a customer in a Chinese restaurant in Bratislava on May 20, 2020.

Trianon is a trauma for Hungary even a hundred years later

Slovaks and Hungarians look at the events that led up to the Trianon Treaty differently.

Hungarian delegation is leaving the castle Big Trianon after signing the treaty on June 4, 1920.

Some borders start opening ahead of the summer season (news digest)

Matovič and co. visited Czechia. Even foreigners living in Slovakia can travel to Croatia.

PM Matovič, Deputy PM Veronika Remišová and Foreign Affairs Minister Ivan Korčok on board the flight to Prague for the official visit to the Czech Republic on June 3.

Iconic pharmacy Salvator in Bratislava is closer to new life

Bratislava city council wants to resurrect pharmacy after becoming exclusive owner.

The Salvator pharmacy has been closed for more than two decades.