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Land for Magna's expansion purchased

Hoče, 22 December (STA) - Canadian-Austrian automotive multinational Magna Steyr is tight-lipped about its plans to expand production in Slovenia, but the Hoče municipality, where Magna launched a paint shop this year, has already bought all 92 hectares of land needed for a potential expansion.

The land was bought by the municipality, but the funds were provided by the state. Once the land is sold to Magna, the municipality will reimburse the state.

Mayor Marko Soršak told the STA that contracts had already been signed with all land owners.

The government and Magna reached a deal under which some 400 workers should be employed at the EUR 150 million paint shop - the first stage of Magna's planned investment in Slovenia - by November 2022.

In order to be entitled to over EUR 18 million in state aid, Magna should hire 1,000 people in ten years, that is until 2027.

In a recent interview, Economy Minister Zdravko Počivalšek said that the company had already launched preparations for stages two and three of the investment.

Those would involve a production facility for bodywork and another for car assembly.

As the minister told the weekly Mladina in October, the entire investment should cost EUR 540 million and construction work is expected to be launched before July 2020.

Magna, on the other hand, is much more reserved in announcing further details of the investment, noting everything would depend on orders.

Soršak, meanwhile, told the STA that the procedure to obtain an environmental permit for the production facilities for bodywork and car assembly was underway.

The municipality is also in the process of changing its zoning act. "Once it is adopted, all conditions will be met [for Magna] to file an application for a building permit."

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