Business News

Contract on State Aid to Revoz Signed

Ljubljana, 22 October (STA) - Renault-owned carmaker Revoz will get EUR 22m in state aid according to an agreement signed on Tuesday. $We scrapped together all funds for foreign direct investments to help Revoz,$ Economy Minister Stanko Stepišnik told reporters.

Under the terms of the agreement, Revoz will hire at least 51 new workers for production of the new Twingo and the Smart four-seater.

If the demand is high enough to necessitate a two-shift operation, Revoz needs to hire 102 workers to comply with the deal, the minister said.

Revoz chairman Patrice Haettel said the subsidy would not only create new jobs but also preserve existing jobs. The aid will allow the company to wrap up the project.

The government had originally earmarked EUR 45.5m for Revoz, but it decided to halve it after the European Commission launched an inquiry into compliance with EU regulations on state aid.

The aid is earmarked for the EUR 450m Edison project, Revoz's assembly of the latest generation of the Twingo and Smart in conjunction with German car maker Daimler.

The payments will be spread in instalments out over four years through 2016.

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