Cabinet approves state aid of SKK 1.4bn for six foreign investors.
Cabinet approves state aid of SKK 1.4bn for six foreign investors. The government confirmed its decision to grant SKK 1.4bn of investment aid for six foreign investors, economy minister Lubomir Jahnatek disclosed. The support was approved under a fast procedure in order to be passed before the end of the year and avoid a cumbersome procedure under new EC rules from the beginning of 2007. Around 50% of the investment incentives would be under the form of tax relief. Car component makers Johnston Controls and Visteon International would receive the larger part of the approved aid of SKK 496mn and SKK 415mn respectively. The cabinet also approved in a confidential document the new investment contract with car maker Kia Motors, which planned to expand its engine production in the country. The document is yet to be approved by the EC but reportedly, it included state aid, amounting to 15% of the total investment cost, which was estimated at SKK 8bn. The government also earmarked SKK 142mn for as state aid for preparatory works on the SKK 15-16bn investment of Korean electronics maker Samsung.