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Slovakia approves major state aid package for Kia to increase EV production

Slovakia’s Ministry of Economy announced last Wednesday (10 January) that the Slovakian government has approved a 29.95 million-euro state aid package in the form of an income tax relief for Korean automotive manufacturer Kia. 

The company plans to invest over 109 million euros between 2024-2027, maintaining 3,693 existing jobs, the Slovakian ministry said in a press release. 

“This is a strategic investment in the Slovak automotive industry, which will enhance its competitiveness and significantly support the sector’s transformation towards electromobility. I consider the retention of highly skilled jobs in the region and the support for the entire supply chain in Slovakia, which is a participant in this chain, as important,” said Slovakia’s Deputy Prime Minister and Minister of Economy Denisa Saková.

The state aid package aims to expand the capacity of the existing plant, expected to enable the production of two new electric models of mid-sized cars and SUVs and increase overall production by 36 per cent. Almost the entire production would be destined for export.

“Kia represents a key investor for Slovakia. This investment will not only lead to the transformation of the plant and its sustainability in Slovakia but, above all, to gaining new competencies in the field of electromobility,” said Deputy PM Saková.

Kia has been operating in Slovakia since 2004. The company’s facility in Teplička nad Váhom (northern Slovakia) is the only Kia manufacturing plant in the EU.

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