Swedish car maker Volvo Cars is set to build a new plant for the production of electric cars for €1.2 billion near Kosice, the Economy Ministry reported on Friday. In line with the car maker's aim to use climate-neutral production processes by 2025, the plant will deploy only climate-neutral energy. In addition, the facility will be designed to achieve the highest global standards of energy and environmental efficiency. The new plant will be focused purely on the production of electromobiles. The Swedish car maker is the 5th car producer to be active in the territory of Slovakia. The plant should invest over a €1 billion with production up to 250,000 vehicles per year and is expected to create several thousand jobs in the region. Prime Minister Eduard Heger finds the new investment to be a historical moment securing further development of the eastern region of Slovakia.
“This investment will provide 3300 new jobs in the years 2025-2027. However, we know that particularly in this industry there are many suppliers adding other several ten thousand positions,” said Heger.
“On behalf of Volvo Cars, it is a great pleasure to announce that we will build our third European factory here in Slovakia,” said executive director Volvo Cars Chavier Varela.
Economy Minister Richard Sulik also welcomed the construction of the 5th car maker’s plant in Slovakia. He pointed out the benefit of diminishing regional disparities.
“We did not promise any tax relief to Volvo, they will be provided with a direct investment aid of €267 million. This kind of aid would be provided by any country,” added Economy Minister.
Speaking at the press conference on Friday was also Finance Minister Igor Matovic: “Probably some Bratislava citizens who were born in the east of Slovakia will move back to the east. Their motivation might be to continue in their professional career in their region.”
The construction of the plant is scheduled to start in 2023, with installations of equipment and production lines slated for 2024. Series production of Volvo Cars' next generation of pure electric cars is expected to be launched in 2026.
Source: TASR
