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Govt approves EUR 10m subsidy for industrial zone

By   /   14/10/2016  /   Comments Off on Govt approves EUR 10m subsidy for industrial zone

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Ljubljana, October 14, 2016/Independent Balkan News Agency

The government on Thursday approved a EUR 10m subsidy for the creation of a production zone in the north-east of the country, which is unofficially related to plans by automotive supplier Magna to set up a paint shop there.

Speaking to reporters after the session, Economy Minister Zdravko Počivalšek said that the government decided to support activities for the creation of the Hoče-Slivnica production zone (Photo: vlada.si, Tamino Petelinšek/STA)

Speaking to reporters after the session, Economy Minister Zdravko Počivalšek said that the government decided to support activities for the creation of the Hoče-Slivnica production zone (Photo: vlada.si, Tamino Petelinšek/STA)

Speaking to reporters after the session, Economy Minister Zdravko Počivalšek said that the government decided to support activities for the creation of the Hoče-Slivnica production zone.

He said that the measure would expand the amount of funding for development support for areas with high unemployment by EUR 10m.

While the government or the minister would not give concrete reasons for the aid, the measure is related to plans by Magna Steyr, the Graz-based subsidiary of automotive supplier Magna International, to open a paint shop in the region that would in the future create up to 3,000 jobs.

In a confirmation of the seriousness of its plans, the Graz company incorporated a subsidiary in Slovenia today.

Information available on the website of the Agency for Public Legal Records (AJPES) shows Magna Steyr d.o.o. with headquarters in Ljubljana was entered into the company register today. Its owner is the Austrian company Magna Metalforming.

The government approved aid for the industrial zone in the region because of a lack of a facility that could be offered to potential larger investors.

The plot is located between the Maribor international airport and the industrial zone in Hoče in the direct vicinity of the motorway crossroads of two major European corridors linking Vienna, Budapest, Zagreb and Ljubljana.

Počivalšek said that the initial EUR 1.3m would be secured this year and the rest in the coming two years.

He said the plot in case was about 100 hectares in size and had an excellent geostrategic location suitable for activities of large domestic or international companies.

“We are doing this to secure new jobs in Maribor and its broader area,” the minister said, adding that the ministry was in talks with concrete investors, while more information would be available once the talks were concluded.

Magna Steyr’s plans were first reported by the Maribor-based newspaper Večer and PM Miro Cerar later confirmed the Ministry of Economic Development and Technology was trying to ensure competitive conditions to attract the company, but would not talk about details.

Source: The Slovenia Times

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