Bosch is winding down production in Prešov, eastern Slovakia. (source: Facebook/Bosch eBike Systems)
The German company Bosch, originally alleged that it would create at least 4,000 new jobs in Záborské near Prešov, eastern Slovakia, will halt its production of electric motors for e-bikes in the country instead.
Demand for electric bicycles is not increasing as initially expected, the firm said.
“Bosch has decided to wind down the production of e-bike drives near Prešov from March 2024,” Director of Corporate Communications of the Bosch Group for the Czech Republic and Slovakia, Pavel Roman, told the TASR newswire. He added that the workers, approximately 200 people, were told about their dismissal on February 26.
About 400 people have worked in Bosch’s rented production hall in Petrovany, a town neighbouring Záborské and Prešov.
“Bosch is also abandoning the expansion of the existing production site near Prešov [in Petrovany],” Roman continued.
The firm believes that existing e-bike production capacity at its main plant in Miskolc, Hungary, is sufficient to meet current demand. Still, Bosch says that it sees Prešov as an interesting economic region.
Original plans were ambitious
Former economy minister Richard Sulík (SaS) talked about the investment of the Bosch Group for the first time in August 2022. He indicated that the investment of several hundred million euros would provide jobs to between 4,000-8,000 people. In the end the investment, at a reduced size, was confirmed in October.
The investment was seen, along with the Volvo car maker that was building its new e-car production plant near Košice, as a flagship investment for eastern Slovakia.
The plan was for the group’s Bosch Electrical Drives division to expand its production of components for its electric bikes, known as Bosch eBike Systems, in eastern Slovakia.
The planned investment shrank over time, from the 4,000 jobs indicated by Sulík to 400 jobs signalled by his successor Karel Hirman. Production should have started in late 2023.
Who's to blame?
Today, Hirman says that he is disappointed that the current government did not use all the tools to keep Bosch in the east of Slovakia.
“However, I'm afraid that due to the decisions of the current government, Bosch will be the first company [to leave], not the last,” Hirman (Demokrati) told the Korzár website.
“What we created, Fico destroyed,“ Sulík said on Tuesday, adding that it is understandable that the German investor decided not to proceed with its plans. “They already have one operation in a country with a dubious level of democracy, neighbouring Hungary. Slovakia is dangerously close to Orbán’s level due to the statements of its leading representatives.“
The company did not mention the political situation in Slovakia as the reason for halting production in Prešov.
On Tuesday, Slovensko leader and former PM Igor Matovič said that Sulík is also responsible for ruining the investment. Sulík served as minister under Matovič. The ex-PM claims that Sulík revealed the investment, in 2022, before the firm made a final decision about it.
Despite the latest decision, the group will continue to run its three other plants in Slovakia, in Michalovce - BSH Drives and pumps - and Bernolákovo - Robert Bosch Production. Its third firm, Robert Bosch, is headquartered in Bratislava.
