Slovakia might be starting to experience the reality of fears that it is becoming an increasingly unattractive haven for investments and production in the wake of the economic crisis and rising taxation in the country, as daily Hospodarske Noviny reports how two more companies have pulled the plug on production.
The first, automotive cable bunch producer Delphi Slovensko, has announced the redundancy of 540 of its 700 or so workers in Senica over four stages until the summer of 2014. The company says the redundancies are essential given the current market situation so it can increase its competitiveness, but they can be put down chiefly to the US parent company shifting more production to its 12,000 strong Romanian factory. The future of the remaining workers at the Slovak plant is therefore questionable.
The second case concerns Japanese LCD components producer Ryoka Global Europe, which has decided to close down its plant in Nitra altogether, putting 227 workers out of a job already in November thanks to a slump in orders. This is mainly due to its primary customer Foxconn announcing 600 redundancies in January 2012. Ryoka Global Europe insists that it is not moving production elsewhere, and at least its redundant employees will have a chance of finding work at the nearby plant of Samsung Electronics, which is currently recruiting.
Earlier this year even Samsung announced it might be pulling out, threatening the loss of around 4,000 jobs including suppliers, but it eventually stayed to enjoy the fruits of the additional EUR 28 million in stimuli that the government swiftly offered.