Around 450 jobs would be created if Honeywell green lights a EUR38.3m (US$50m) turbocharger plant in eastern Slovakia.

The Slovak economy ministry told AFP the investment, in the country's highest unemployment and poorest regionm should create 446 new jobs.

Slovakia, driven by the auto industry, used to be the world's biggest per-capita car producer before the global downturn hit plants run by Kia, PSA Peugeot Citroen and Volkswagen.

The ministry said Slovakia would consider giving Honeywell subsidies and tax breaks worth up to 50% of the total value of the investment.

Significance

Honeywell’s consideration of a new plant in Slovakia to increase still further its capacity in turbochargers is a clear reflection of rising demand for turbochargers and the continued attractiveness of Eastern Europe as a production location, especially for new factories which will attract subsidies and incentives from governments keen to maintain employment levels in the current economic uncertainty.  As turbocharger use approaches standard in the petrol/gasoline market, significant additional capacity will be required. Honeywell will have seen the entrance of two new potential major players into the turbocharger market in the last couple of years and needs to reinforce its leading position; an additional plant to supply rising European demand will certainly help in this regard.