The Government of Slovenia Provides Macro-financial Assistance to GKN Driveline Slovenija

The Government of Slovenia provided macro-financial assistance to the GKN Driveline Slovenija Company to implement the investment program “Production Line of Homokinetic Joints and Drive Shafts for the New Mercedes and Volvo Customers” in the amount of 580,000 euros. The project worth 4.64 million euros will create 53 new workplaces.

On 22 September 2016, the investor, according to the Law on Attracting Foreign Direct Investment and Internationalization, filed an application on direct-targeted investments to the Ministry of Economic Development and Technology. The Ministry Commission approved the application by confirming its compliance with all legal requirements.

The Automotive Industry in Slovenia Receives Investments in Equipment

The subject of the project is the investment in equipment, infrastructure and technology of manufacturing new products for the new customers and markets as well as an increase in the existing market share. Foreign investments will ensure the development of six types of the homokinetic AC/UF joints. This Slovenian automotive industry will manage to produce Mercedes A-class, B-class, CLA, GLA, Volvo V316, V323 and V320.

Project Budget: 4.64 Million Euros

It is expected to complete the project worth 4.64 million euros before the end of March 2018. As part of the project, the foreign investor is planning to invest 3.65 million euros in the purchase of new devices and equipment. Another 990,000 euros will be further invested in the warehouse expansion and rejuvenation of the office building.

According to the governmental experts, the macro-financial assistance will pay off, because in the next three years, the company will manage to save about 1.8 million euros in what refers to payment of taxes and levies only. The total economic effect of the project implementation will bring Slovenia a little over 15 million euros.

According to the Government’s representatives, the initiative to improve the business reputation of Slovenia and create favourable conditions for foreign investment will reduce the rate of unemployment in Slovenia, increase the added value per employee and reduce the negative impact on the environment.