A 45.8 million euros ($61.3 million) state aid for Johnson Controls Inc. and eight other manufacturers that intend to invest in Slovakia has been approved by its government. Last Wednesday, the Cabinet had its meeting in the Slovak capital Bratislava where it granted tax breaks and cash subsidies amounting to 5.7 million euros in exchange for increasing production in Namestovo, northern Slovakia, and resulting to the creation of 251 jobs.
Johnson Controls, which is based in the U.S., supplies auto interiors. Johnson Controls intends to invest around 19 million euros in the project. Slovakia is hoping to bring in foreign investment so that jobs could be preserved at a challenging time when the growth in the economy is slowing down with the widening of the reach of the euro-region's debt crisis.
These projects are primarily in the electronics and car making industries, which are the key export sectors in Slovakia. The nine projects will result to the creation of 1,674 jobs in total. They all stand for a total investment of 222 million euros. Johnson Controls places seventh on the Automotive News Europe list of the top 100 global suppliers. Its global auto sales amounted to $16.6 billion in 2010. Around 49% of which were made in Europe. [source: BusinessWeek]