Bratislava, Slovakia, June 5, 2006--The Slovakian government has approved an investment package worth Sk3.6bn ($123m) to support the investment plans of leading wood-panel producer Kronospan (Austria).
The EIU Viewswire reported that the company, which currently operates a production plant in Presov, in the east of the country, has announced that it plans to invest Sk12bn to open two new production plants in the country and to employ an additional 550 people; the company currently employs over 400 people at its Presov plant. The incentives package is to take the form of tax relief for ten years.
The incentives agreement requires approval from the European Commission. Generally, EU rules limit incentive packages to 15% of the value of an investment project, while in this case the agreed tax holiday represents around 30% of the planned investment.
