Slovakia’s Economy Ministry recommended granting Continental AG (CON) tax breaks worth 4.5 million euros ($5.7 million) after Europe’s second-largest auto-parts maker expanded production in the country.
The company has spent 25 million euros to add production of brake components in its existing factory in Zvolen, central Slovakia, according to a document posted on the government website today. The project will create 500 new jobs, the ministry said.
By expanding facilities in Slovakia, the Hanover, Germany- based manufacturer seeks to benefit from lower labor costs than western Europe as well as the country’s euro-area membership. The Slovak government has yet to discuss the proposal.
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