Ljubljana, 12 April (STA) - The government has approved a EUR 657,000 incentive to Lonstroff, the Swiss subsidiary of Japanese Sumitomo Rubber Industries group, which plans to build an elastomer production in Logatec. The contract will probably be signed next week and works will begin in mid-May, the government said in a press release in Thursday.
The outgoing government, which is acting in caretaker capacity at this point, approved the incentive so as not to leave the investor in limbo over the funds the cabinet has previously indicated would be granted for the investment.
The government also believes that a delay in approving the incentive could cause the company damage.
The Economic Development and Technology Ministry said later in the day that in total the state's incentive to Lonstroff would amount to 10% of the investment valued at EUR 48m. Moreover, minister Zdravko Počivalšek tweeted that the total figure would amount to EUR 5.04m.
Lonstroff filed a request for environmental approval from the Environmental Agency in December and the procedure is ongoing.
According to Sumitomo Rubber Industries and Lonstroff, which makes among other things rubber parts for the pharmaceutical industry, the 30,000 square metre plant in Logatec will produce 2.5 billion parts per year.
Production is to be launched next year and the plant is projected to create 200 jobs in the next three years.