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Car Electronics Maker Acquires R&D Loan for EUR 24m Project

Sempeter pri Gorici, 21 June (STA) - Car electronics manufacturer Iskra Avtoelektrika acquired on Monday a EUR 12m loan for the next 10 years from state-owned export and development bank SID Banka that will cover 50% of a project developing mechatronic systems and environmentally-friendly means of transport.

The project is valued at EUR 24m, with the rest of the funds provided by the company. Iskra Avtoelektrika CEO Edvin Sever and SID banka chairman Sibil Svilan signed the loan contract at a press conference in Sempeter pri Gorici today.

Sever said that the project would be staffed by 400 workers, including 200 newly-employed. The project involves a number of Slovenian companies, including companies from the field of car manufacturing and nautical equipment, as well as science and research institutions.

New technologies and new generations of products will help decrease the use of fuel by 3 billion litres a year and will cut CO2 emissions by around 2 tonnes, and emissions of nitrogen oxide by 11,000 tonnes a year.

The project is expected to create EUR 450m in sales revenues and a value added of EUR 50,000 per employee. Positive effects are expected to show also in other Slovenian companies.

According to Sever, the company is planning to increase its R&D investments to 5% of sales revenues. The car electronics maker exports 60% of its products to the countries of western Europe, 13% to the US, 12% to Asian markets, 4% to South America, and only 1% of its production is sold in Slovenia.

Svilan meanwhile told the press that the SID bank has already earmarked EUR 156m for 25 R&D projects by 15 Slovenian companies. Another EUR 50m in loans is to follow.

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