The Slovenian Government Allocates 18 Million Euros to the Magna Steyr Company

The Slovenian Government has decided to allocate 18.61 million euros to the Magna Steyr Company for the construction of a varnish-and-paint workshop in the suburb of Maribor. The total sum of investments amounts to 146.4 million euros. The project will create 404 new jobs, according to the Government sources. The construction deadline is the end of October 2019.

The project envisages the construction of a fully equipped varnish-and-paint workshop for coachwork. Magna Steyr intends to spend 50.8 million euros on the purchase of land and construction of building, and another 95.6 million euros for the purchase of new equipment and facilities.

“The Government expects that the financial support for the investment project will be repaid in full, because in the next three years, the company will manage to save about 15 million euros in what refers to payment of taxes and levies only. The overall economic impact of the project will bring Slovenia almost 70 million euros,” according to the Government.

The Government representatives note that this initiative will improve the reputation of the country, stimulate receiving of foreign investments in Slovenia, reduce unemployment, increase the added value per employee and reduce negative impacts on the environment. The Government of Slovenia included the project of varnish-and-paint workshop construction in the suburb of Maribor into the current economy development strategy for 2017–2020.

“Magna Steyr is a leading brand-independent global partner. The company offers innovative solutions for the future of the mobility policy,” as stressed in the Government.

Magna Steyr is one of the leading distributors of automotive industry. In total 152,000 company employees work in 309 manufacture units and 99 centres for engineering, research and development in 29 countries around the world. Magna Steyr seeks to expand its presence in the growing markets of Asia and captures the rapid increase in sales within the BRICS countries (Brazil, Russia, India, China, and South Africa). The company expands its presence in the Eastern Europe and is a major player in the North America.

In 2016, the Government of Slovenia drafted a bill on a new industrial area in the municipality of Hoče-Slivnica, in which the production capacity of Magna Steyr will be located. Canadian automotive giant Magna International will build there a new varnish-and-paint workshop with more than 3,000 workplaces. In March 2017, the Government has allocated 3.6 million euros to this project.