SamsungElectronics Inc., Asia’s biggest maker of chips, mobile phones and flat-screens, picked Slovakia over Hungary for the contract, said the two people, who declined to be identified. The company will receive the maximum amount of government aid allowed by European Union rules, the officials said, citing a draft investment contract approved today in Bratislava by the cabinet. Samsung’s investment will probably prompt the company’s suppliers to build plants in the country too, the officials said.
Slovakia expects the inflow of foreign investment to help the former communist country catch up with its western European Union peers. Samsung’s plant will be the third-biggest greenfield investment in the country after carmakers Kia Motors Corp. and PSA Peugeot Citroen invested €1 billion and €700 million, respectively, to open two factories last year. The South Korean company already makes television sets and audio equipment at a factory in Galánta, southwestern Slovakia. Last year, it also opened a logistics center, bringing its investment in the eastern European country to €131 million. (Bloomberg)
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