Cheap labor isn’t every investor’s dream: Romania loses EUR 60 mln investment to Slovakia

Minebea, a Japanese automotive industry supplier, will invest EUR 60 million in a new factory in the city of Kosice, Eastern Slovakia. The investment may increase to EUR 100 million and may also include a research & development center, if all goes well. The company also considered Romania for opening the new plant, according to the Slovak newspaper Slovak Spectator. Although labor costs are lower in Romania, Minebea chose Slovakia for its higher availability of well-trained engineers and technicians. Slovakia competed with several countries in the region to attract the investment, said Slovak Economy Minister Peter Žiga. “In the final round, we remained (in the race) with Romania. Even if labor is cheaper in Romania, Minebea has decided to invest in Kosice,” Žiga added. “Slovakia might not be the cheapest environment for new investments, but we’ve decided not to go only for price,” said Minebea Slovakia CEO and Minebea Europe chief manager Joerg Hoffmann, quoted by TASR. “The style of production will be different here than in Asia. We’ll really focus on creating as high of production optimization as possible in Europe. We’ll need many engineers and technicians to help us to achieve this goal, so we’ve realized that the work price shouldn’t be the most significant factor to be considered.” The Japanese group will initially create 1,100 jobs in Kosice, but the number may increase to 2,000 in the future. The Kosice factory will become operational in 2018. It is the Japanese group’s second investment in Slovakia. Minebea has over 70,000 employees worldwide. Romania also lost the race for German group Daimler's new engine factory earlier this year. The factory will be built in Poland. Japanese group completes acquisition of Romanian engine factory editor@romania-insider.com