Bratislava, Slovakia, May 26, 2006--Kronospan wants to invest more than Sk12bn in Slovakia asking the government for investment incentives worth Sk3.64bn, says a document published by the Economy Ministry.
Kronospan wants to build a Sk4bn plant in Presov, East Slovakia, employing 190 staff and a Sk8.13bn plant in Zvolen, Central Slovakia, where 360 people could find a job. It applies for income tax relief for ten years.
If Kronospan fails to get investment incentives, it will invest in Poland, the document said. The investor expects that there will be six-to-eight indirect jobs per one job opening.
The ministry said investment incentives per job have reached an average Sk1.2m in Slovakia since 2003. Tax relief for Kronospan's plant in Zvolen would reach Sk6m and for the Presov plant Sk7.8m. But, the investor says its investment per job opening has been much higher than an average Sk7.25m over the period.
According to Kronospan, its investment per job in Zvolen stands at an average Sk22.6m and in Presov at Sk20.9m on average. The Finance Ministry considers the proposed support too high, and it said in the coming years it would have a negative effect on the state budget revenues. Kronospan SK, a subsidiary based in Presov, raised sales by a third to Sk4.35bn last year.
