April 12, 2018 / 1:49 PM / 6 months ago

Slovenia to grant financial aid for Lonstroff factory

LJUBLJANA, April 12 (Reuters) - Slovenia will grant 657,000 euros ($809,292) in financial aid to Swiss elastomers company Lonstroff AG to support its plan to build a factory in Slovenia, the government said on Thursday.

Lonstroff is a member of Japanese Sumitomo Rubber Group . The factory, to be built in Logatec, 30 kilometers Southeast of Ljubljana, will make medical elastomer products.

“The signing of the contract on financial incentive is expected on April 18 ... while the building of the new factory is due to start on May 17,” the government said in a statement after its regular weekly meeting.

The centre-left government has been trying to increase foreign investment in the country to boost economic growth and create new jobs. It expects the country’s economy to expand by 5.1 percent this year versus 5 percent in 2017, mainly on account of higher exports and investments.

In the past years, Slovenia has provided financial incentives to various companies, including Canadian car parts maker Magna and Japanese electrical equipment producer Yaskawa which are both building new factories in the country. ($1 = 0.8127 euros) (Reporting By Marja Novak. Editing by Jane Merriman)

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