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Schaumberg, Ill.-based Motorola has set up a subsidiary in Slovakia to acquire the former wafer-making plant of Tesla Piestany. The subsidiary, Slovak Electronics Industries, has bought the plant with a view of operating it as a semiconductor plant. The purchase price was not disclosed. Motorola will be deciding how to use the facility over the next few months.
A Motorola spokesman said the fabrication plant had been idle for a number of years and had been acquired as part of a liquidation sale. The plant once made semiconductor wafers, but could, with some upgrading, be converted to other purposes, he said. "We haven't decided what we're going to manufacture," he said. Associated Press reported Motorola intends to invest about 90 million dollars into the plant and to employ 1500 people.
Motorola was motivated by the success it achieved in a joint venture with another Tesla plant, at Roznov, Czechia, that was aquired in 1992. "We have had great success with our operation in Roznov," the spokesman said. "A good, well-educated work force has made that very cost-effective. We are looking at this plant in the same way." (portions by Peter Clarke, EE Times)
In 1991 Whirlpool (world's #1 appliance maker) and Tatramat formed joint venture Whirlpool Slovakia a.s. to produce washers in Poprad, Slovakia. Whirlpool subsequently takes controling stake in 1994. Whirlpool is transferring production from Italy to the low-cost Poprad plant and has invested 200 million Sk ($5.7 million) in the facility. Whirlpool will produce close to 500,000 units a year in the plant. The Poprad facility, which Whirlpool bought when it took control of Tatramat in 1992, currently makes 340,000 top-loading machines a year.
The U.S. auto parts firm Delphi
Automotive Systems is to build its first Slovak plant in the western city of
Senica to produce cable systems for a subsidiary of the German car maker Volkswagen. The
investment is estimated at around Sk700 million (16 million, US$13 million). The
plant is to employ around 1,300 employees and produce wiring for the Volkswagen Colorado,
an all-wheel drive sports utility vehicle being jointly developed with Porsche. The
production should start in November 2001.
On Nov 24 2000 in Kosice, Slovakia, U.S. Steel officially took over the core business of VSZ, Eastern Europe's second largest steel mill.
The deal had already been approved by a VSZ shareholders' meeting in October, under an agreement in which U.S. Steel will pay $60 million up front, assume debts of $325 million and invest $700 million over a ten-year period, amongst other costs.
The takeover, U.S. Steel's first such investment in Europe in 20 years, will initially add VSZ's annual output of 3.4 million tonnes (and capacity of 4 mill.) of steel to the Pittsburg-based firm's 12.8 million tonnes, boosting U.S. firm's output by 25% (one third). And by 2003, U.S. Steel expects to install new tin-plate steel facilities and an automotive-grade galvanised steel line, which will boost the mill's annual production by 470,000 tonnes.
U.S. Steel also hopes to use the acquisition as a strategic hub on this side of the Atlantic with which it can supply Europe's car makers and other manufacturers. The new U.S. Steel subsidiary will be called U.S. Steel Kosice.
VSZ ran into financial trouble in 1998 when it defaulted on a $35 million loan, after what many analysts say was bad management following a non-transparent privatisation process under former Premier Vladimir Meciar.
In the first quarter of 2001 U.S. Steel Group's domestic steel segment reported a loss from operations of $151 million, or $62 a ton. On the other hand, U.S. Steel Kosice s.r.o (USSK) reported first quarter income of $41 million, or $55 per ton. The company said it was "quite optimistic" about USSK's future growth in the central European steel market.
More than 110 new job opportunities will be created in Kosice with the opening of a plant by one of the oldest American industrial companies Taylor-Wharton (founded in 1742), now part of Harsco Corporation that provides market-leading industrial services and products to the worldwide infrastructure development, steel, railway, transportation, gas and energy markets. The Kosice plant will produce high-pressure containers. Investments should total $4.5 million.
"I am very pleased that the first attempt on the part of U.S. Steel Kosice (USSK), to attract another strong American investor to Eastern Slovakia has been drawn to a successful conclusion, and that USSK is so successfully fulfilling its commitment towards the Slovak Republic," said USSK's President John H. Goodish. "The company USSK will continue to work together with our partners, for example in providing legal assistance so that this firm can become established in Slovakia as soon as possible. I am sure that they too will be successful, thanks also to the quality of material supplied by USSK and the quality of services provided by VSZ a.s. Kosice."
Derek C. Hathaway, President and CEO of the Harsco Corporation, explained
further: "The contracts for the expansion of the Harsco manufacturing base in Kosice
form the basis for Harsco's further investment in the region and create a visible presence
for other international companies seeking a favorable environment for future investment.
Up to 95% of production from this plant will be exported."
American Companies in Slovakia
Featured companies from this page are not listed
Coca Cola Beverages Slovakia, s.r.o. is the largest subsidiary of The Coca-Cola Company in the Central and Eastern Europe. Since 1993 four distribution centers were built in Bratislava, Banska Bystrica, Kosice a Luka (near Piestany), where also the production plant is located. The total investment is about 8,000 million Sk, number of employees 650.
Molex, world's second largest producer of interconnection products, should invest 90 million USD in a new plant in Kechnec near Kosice. The company will create 200 and in two years 600 jobs.
The company already has two joint-ventures in Slovakia: Sylex in Bratislava and Moltes in Liptovsky Hradok.
In Vrable, about 100 km from Bratislava, United Parts Slovakia (UPS), the subsidiary of Teleflex (NYSE: TFX) was founded in 1995. It produces gearshift systems for Opel, VW, BMW, Ford and DaimlerChrysler. 200 employess, 10 million DEM annual revenue.
August 2011 - Honeywell, a US-based company, chose eastern Slovakia for a new factory, starting construction work on the facility. The plant will manufacture turbochargers for passenger cars and trucks in the IPZ Prešov-Záborské industrial park. Honeywell will invest 38.3 million euros and employ nearly 450 people in the plant’s first phase.
August 2011 - Amazon.com officially opened its sales support centre in Bratislava. The company plans to create more than 200 new jobs in Slovakia by the end of 2012. The new centre will facilitate trade negotiations with the aim of helping Amazon's merchants to be more successful. The goods they sell represent 30 percent of all orders carried out on Amazon's website.
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