hottweelz
Dedicated LVC Member
BRATISLAVA, Dec 2 (AFP) - Getrag Ford Transmissions announced on
Thursday that it planned to invest 300 million euros (400 million
dollars) to build a factory for new technology transmissions in
eastern Slovakia.
But the plan involves state aid which exceeds European Union
limits.
CEO Tobias Hagermayer said that the plant would be built at
Kechnec, 21 kilometres (13 miles) from the city of Kosice and would
create 750 jobs. The factory would beging producing in early 2007,
making 300,000 units per year all of which would be exported.
"We chose Slovakia because of the political stability which is
guaranteed by the implementation of reforms and EU accession," he
said at a press conference. Slovakia joined the EU in May.
Slovak Economy Minister Pavol Rusko acknowledged that state aid
for the project amounting to 3.0 billion Slovak koruna (77 million
euros, 103 million dollars), represented 25 percent of the total
investment and was more than the EU-approved state aid limit of 15
percent.
The minister said that he hoped an exception would be made.
The company said it hoped to develop its plans successfully with
the Slovak government and reach a final agreement shortly. Annual
turnover was expected to be 300-400 million euros.
Rusko said that the plant would be built 21 kilometres (13
miles) from Kosice in the east of the country.
He said that the plant would provide employment to 1,000-1,500
people in addition to the 750 people employed directly.
Getrag Ford Transmissions, a joint venture between Ford and the
German company Getrag, specialises in producing transmissions for
the automotive industry. It manufactures almost exclusively for
brands within the Ford group - Volvo, Mazda, Landrover and Jaguar -
as well as for MG Rover.
The company produces 1.6 million transmission boxes annually;
680,000 at its site in Cologne, Germany; almost 500,000 in Bordeaux,
France and 400,000 in Halewood, England. It employs 3,800 people.
"The size of the investment is quite high because the production
of transmissions is the most difficult part of producing cars,"
Hagermayer said.
The investment cements Slovakia's position as the major new
player in the European automobile industry. By 2007 it will have
three car manufacturing plants.
Volkswagen, Europe's biggest car maker, already has a plant in
the Slovak capital Bratislava while French car maker PSA Peugeot
Citroen and South Korean rival Hyundai's Kia division are due to
launch production at separate new factories in Slovakia in the next
two years.
PSA's plant in Trnava, western Slovakia, is due to manufacture
300,000 cars annually after it launches in 2006.
Work got under way in October on the Kia car plant in the
northern town of Zilina. After a launch planned for early 2007, it
is expected to produce 300,000 cars annually.
By 2007, Slovakia will be the world's largest per-capita car
manufacturer, producing 800,000 to 900,000 units per year.
The automotive industry currently employs around 55,000 people
in Slovakia and represents 20 percent of gross domestic product.
Thursday that it planned to invest 300 million euros (400 million
dollars) to build a factory for new technology transmissions in
eastern Slovakia.
But the plan involves state aid which exceeds European Union
limits.
CEO Tobias Hagermayer said that the plant would be built at
Kechnec, 21 kilometres (13 miles) from the city of Kosice and would
create 750 jobs. The factory would beging producing in early 2007,
making 300,000 units per year all of which would be exported.
"We chose Slovakia because of the political stability which is
guaranteed by the implementation of reforms and EU accession," he
said at a press conference. Slovakia joined the EU in May.
Slovak Economy Minister Pavol Rusko acknowledged that state aid
for the project amounting to 3.0 billion Slovak koruna (77 million
euros, 103 million dollars), represented 25 percent of the total
investment and was more than the EU-approved state aid limit of 15
percent.
The minister said that he hoped an exception would be made.
The company said it hoped to develop its plans successfully with
the Slovak government and reach a final agreement shortly. Annual
turnover was expected to be 300-400 million euros.
Rusko said that the plant would be built 21 kilometres (13
miles) from Kosice in the east of the country.
He said that the plant would provide employment to 1,000-1,500
people in addition to the 750 people employed directly.
Getrag Ford Transmissions, a joint venture between Ford and the
German company Getrag, specialises in producing transmissions for
the automotive industry. It manufactures almost exclusively for
brands within the Ford group - Volvo, Mazda, Landrover and Jaguar -
as well as for MG Rover.
The company produces 1.6 million transmission boxes annually;
680,000 at its site in Cologne, Germany; almost 500,000 in Bordeaux,
France and 400,000 in Halewood, England. It employs 3,800 people.
"The size of the investment is quite high because the production
of transmissions is the most difficult part of producing cars,"
Hagermayer said.
The investment cements Slovakia's position as the major new
player in the European automobile industry. By 2007 it will have
three car manufacturing plants.
Volkswagen, Europe's biggest car maker, already has a plant in
the Slovak capital Bratislava while French car maker PSA Peugeot
Citroen and South Korean rival Hyundai's Kia division are due to
launch production at separate new factories in Slovakia in the next
two years.
PSA's plant in Trnava, western Slovakia, is due to manufacture
300,000 cars annually after it launches in 2006.
Work got under way in October on the Kia car plant in the
northern town of Zilina. After a launch planned for early 2007, it
is expected to produce 300,000 cars annually.
By 2007, Slovakia will be the world's largest per-capita car
manufacturer, producing 800,000 to 900,000 units per year.
The automotive industry currently employs around 55,000 people
in Slovakia and represents 20 percent of gross domestic product.