January 12, 2017 / 3:30 PM / 2 years ago

Magna to build car paint shop in Slovenia, create 400 jobs

LJUBLJANA (Reuters) - Canadian car parts maker Magna International Inc. (MG.TO) is to build a new paint shop in Slovenia, expecting to create about 400 jobs, the company said on Thursday.

It said the facility would serve Magna’s contract vehicle assembly plant nearby in Graz, Austria.

“Construction is scheduled to begin in the second quarter 2017 and the company expects to create approximately 400 jobs,” Magna’s spokesman Rej Husetovic said in a statement.

In December the Slovenian parliament passed a new law to speed up the purchase of land in northeastern Slovenia where Magna is due to build its plant, the aim being to attract its investment, seen to be worth at least 100 million euros ($107 million).

The news comes a day after Revoz, a Slovenian subsidiary of France’s Renault (RENA.PA), said it would create 340 new jobs at the end of January with the start of production of its new Clio 4 car in March.

Cars and car parts constitute a large part of Slovenian exports which are the main driver of the country’s economy. The small euro zone state of 2 million citizens expects its economy to grow by 2.9 percent this year, following a 2.3 percent growth rate in 2016.

The jobless rate in Slovenia fell to a seven-year-low in September to 10.3 percent.

Reporting By Marja Novak; Editing by Greg Mahlich

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