The Slovak government approved state aids of €45.8 million ($61.3 million) for Johnson Controls and eight other manufacturers investing in the eastern European country.
After a meeting in the Slovak capital Bratislava on Wednesday, the government granted Johnson Controls tax breaks and cash subsidies worth €5.7 million in exchange for expanding production capacity in Namestovo, in the north of the country. The U.S.-based supplier of auto interiors, which has created 251 more jobs in the Slovak plant, will invest about €19 million in the project.
Slovakia is seeking to attract foreign investment to preserve jobs at a time when economic growth is slowing as the euro-region’s debt crisis is spreading. The projects that were granted aid on Wednesday are mainly in the electronics and car making industries, the country’s key export sectors. The nine projects are expected to create around 1,674 jobs and invest €222 million in Slovakia.
Johnson Controls is ranked seventh on the Automotive News Europe list of the top 100 global suppliers with worldwide sales to automakers of $16.6 billion in 2010. 49 percent of total sales were in Europe.