Slovakia is the 3rd most relevant electronics manufacturing country in Central- and Eastern Europe, achieving 60,000+ employees in 2012. Eastern Slovakia provides more benefits for newcomming electronics companies.
#1: Developed transportation infrastructure
The Kosice International Airport has daily flights to Vienna, Prague and Bratislava. The motorway access + the daily airflights to main hubs are a rare combo in the low-cost locations of CEE.
#2: Large labour supply
Eastern Slovakia has a proven track record in electronics industry, representing companies like Panasonic, BSH or Tesla (see the map), but not overloaded with competing electronics companies than Western Slovakia, Western Hungary or some Czech regions.
Eastern Slovakia has an unemployed rate over 18%, much higher than e.g. the Western Romanian electronics cluster has. It means low labour costs, low wage inflation and good HR costs projection opportunities.
#3: Focused education
There are over 40 secondary and vocational schools with specialisation on electrical engineering in Slovakia. Number of secondary school student in the field of electrical engineering and related studies is 25,000. And there are over 27,000 students (2,000 doctoral studies students) at 4 universities oriented towards electronics and electrical engineering industry. (source: Sario, 2011)
The Technical University of Kosice has 2,500 students on electronics and IT engineering, 1,000 students on manufacturing technologies, and the university also provides studies on mechanical engineering, aeronautics or economics.
#4: Full infrastructure real estate options
The Kechnec Industrial Zone is located south from Kosice, closed to the Hungarian border. The business park is one of the most successful facilities in Slovakia and Central- and Eastern Europe. The large (332 hectares/820 acres) business park has large scale infrastructure, good labour market conditions (between two metropolitan areas, Kosice and Miskolc, Hungary). Electronics companies like Magneti Marelli, IEE Sensing are running business in Kechnec.
ImmoPark Kosice belongs to the Austrian banking group Erste. The project with the total area of 60 hectares next to the Kosice Airport will offer over 250.000 sqm of lettable area. The halls were designed to fit any special requirements. The first phase will be available from Q3 2012.
#5: Governmental incentives are focusing on Eastern Slovakia
The Slovakian Act on Investment Aid defines the framwork of national incentives in Slovakia. The incentives are provided in the form of:
a) a subsidy for the acquisition of material assets and immaterial assets,b) an income tax relief,
c) a contribution for created new jobs,
d) transfer of immovable property or exchange of immovable property at a price lower than a general asset value
The goal of governmental incentives is to orient foreign direct investments into underdeveloped regions with high unemployment. One of the main target area is Eastern Slovakia, so prepare for a pleasant surprise thinking about investing there.
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About Sario
The Slovak Investment and Trade Development Agency (SARIO) is a government-funded allowance organization that works under the supervision of the Ministry of Economy of the Slovak Republic. SARIO’s primary objective is to improve the standard of living of Slovak citizens by increasing employment and reducing regional disparities.
After the first international award for SARIO, the ‘European IPA Award‘ of 2003, the international prestige of foreign investment’ services delivered by the Slovak Investment and Trade Development Agency was recognized again in 2007 when SARIO won ‘Best European Investment Agency Award for High-Tech‘ at the World Investment Conference in La Baule (France).
 | Slovakia - Global Best to Invest 2010
by Site Selection Magazine 2011
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