Major Taiwanese electronics manufacturer AU Optronics is planning to move its LCD division from Brno in the Czech Republic to the company’s Trencin plant in Slovakia, reports Hospodarske Noviny today.
Some believe the company took the decision as security so as not to endanger the chance of receiving EUR 38 million in state assistance from Slovakia. The company rejects the claim that it has this hidden motive, citing instead “better co-ordination and better customer service” as the reasons for the move.
The company recently announced cutback plans as the LCD market slumps, with it sending its Slovak workforce home until January over a lack of orders.
The division of the Brno plant currently employs 150 people, which means another 150 or so jobs being created at the Trencin plant, taking its workforce in Slovakia to over a thousand, This would guarantee the investment assistance condition of generating at least 1,000 jobs.
Worldwide the company is posting decline, with AU Optronics Corp. announcing its preliminary consolidated October 2011 revenue of NT$31,210 million, down 5.2% month-over-month and 11.2% year-over-year.