Posted by on 16 Nov 2011. Filed under Business, Top news. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Samsung Stays Thanks to EUR 28m Tax Relief

Earlier this week the massive investment of South Korean electronics producer Samsung was under threat as the owners were allegedly contemplating pulling their operation out of Slovakia, but with a little financial nudge the company has decided to stay.

Samsung plant in Galanta, Samsung

Rumours that Samsung was thinking of closing down its LCD panel plants near Trnava and Galanta first appeared on TV Markiza on Monday, and the government was swift to react, offering the company more state assistance for its investment. If the company were to pull out, some 4,000 jobs could vanish with it, when considering the supplier, distribution and sales network.

Labour minister Jozef Mihal confirmed that he had been assured by the company’s headquarters in Seoul that the company would keep its Slovak operation in motion. Samsung admits that the LCD market is currently in a dire situation, but that it would keep its Slovak plants in production, even though it is downsizing its operations worldwide.

Thanks to an additional EUR 28 million in tax relief that economy minister Juraj Miskov dangled in front of the company’s nose, on top of tens of millions already received over the past five years, the 1,000 or so direct jobs in the company are secure for now at least.

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