Decline Continues in Slovak Electronics Sector
As the electronics sector continues to suffer a shortage in demand, Korean-Japanese venture Daidong Slovakia is now also leaving Slovakia, having originally come here to supply plastic TV moulds for the former Sony plant in Nitra.
Sony packed up back in 2010 due to falling demand, with the plant being taken over by one of its suppliers, the company Foxconn, which had big plans for the plant, including expansion announced at the beginning of last year.
The market turned, though, and Foxconn itself released around 500 workers in January 2012, putting Diadong’s fate also in the balance, especially as the plastic boxes are now being replaced by metal and glass ones.
The electronics sector is a key industry in Slovakia, second only to the automotive sector, and other electronic companies have been saved only by government stimuli, like Samsung, which threatened to pull out of the country until it got an additional EUR 28 million investment incentive, or AU Optronics, which shifted part of production to Trencin from Brno in order to meet the conditions to receive EUR 38 million in state assistance, although it denies that as its motive.
Yesterday the outgoing cabinet of PM Radicova decided that the new investment stimuli for Samsung would be up to the government that comes out of the premature elections tomorrow.