BRATISLAVA, March 21, (WEBNOVINY) — The Cabinet in Bratislava did not discuss on Wednesday the plan to provide investment aid for Samsung Electronics Slovakia. “The debate has been suspended until the new Cabinet meets, which will again open the debate on this request,” said Prime Minister Iveta Radicova. She added that it would not be responsible of the outgoing government to decide on any financial investments several days before the new government is appointed.
Outgoing Labor Minister Jozef Mihal confirmed that they will leave it up to the new government to decide whether to approve investment stimuli in the form of tax allowances for the Korean company.
Two weeks ago, the ministers interrupted talks on the investment incentive for Samsung due to extension of the request by new materials based on which a portion of research and development of the company should be relocated to Slovakia. Based on the memorandum, if the investment incentive gets the green light, Samsung should sign an agreement with the Economy Ministry that would define the exact form and area of research in Slovakia. It should be in the form of cooperation with selected universities and research institutes.
According to the original material submitted to the Cabinet by the economy department, Samsung Electronics Slovakia plans to invest EUR 90 million in modernization of its plant in Galanta that will help preserve 950 jobs. Samsung should complete the production modernization for new models of LED TV sets and preparation for new types of 3D, SMART and OLED television sets in the Galanta plant within three years. The requested EUR 28 million investment stimuli represents nearly EUR 30,000 per job. Following the modernization, Samsung is expected to manufacture nine million TV sets and close to 200,000 TV monitors in the plant. The average monthly wage should be EUR 937.
SITA