Financial Assistance to the Novem Car Company Will Make 500 Thousand Euros

The Minister of Economic Development and Technology Zdravko Počivalšek signed a contract with the Novem Car Interior Design Company on the allocation of financial assistance. The Company, 100% shares of which belong to a foreign owner, will receive 500,000 euros of state aid for the expansion and modernization of its production.

The Government provides financial assistance under the provisions of the Act on Promotion of Direct Foreign Investments and Internationalization of Companies. The Novem Car will use the received earmarked funds to expand the paint shop, to modernize the infrastructure as well as to purchase the new machinery and equipment. Thus, the Company creates all conditions for the manufacture of high-quality wood products and carbon-carbon composite materials.

The project is scheduled for completion by the end of December 2017, and its total value amounts to 4,723,000 euros. A foreign investor is planning to invest 2.72 million euros in the purchase of new machinery and equipment, 1.613 million euros in the expansion of the paint shop, modernization of infrastructure, fire safety, occupational safety and health, and 390,000 euros will be still needed for the construction of the necessary working premises.

Zdravko Počivalšek: the Assistance to Novem Car Is the Assistance to the Slovenian Economy

When signing the agreement, the minister Zdravko Počivalšek stressed that the success of the Novem Car Company proved the growth of the Slovenia’s economy. This financial assistance, according to him, will be paid back a hundredfold, because in the next three years, the Company will bring to the state budget of Slovenia about 760,000 euros of taxes and payroll fees only.

According to the Minister, the economic benefit for Slovenia will total to 4,000,000 euros, and the project will yield positive intangible benefits, such as the improvement of the business reputation of Slovenia in the eyes of foreign investors and the growth of added value per employee.

Source: rtvslo.si