Company Furukawa is allowed to receive investment incentives

22 Apr 2003

The Office for the Protection of Competition approved with conditions the exemption from the prohibition of state aid in form of investment incentives for the company Furukawa Electric Autoparts Central Europe.

The exemption concerns the reduction of income tax, substantial aid with creation of new working positions in amount CZK 80,000 per position and substantial aid for employees’ re-qualification in amount of 25% of totally spent costs of the state aid beneficiary for training and re-qualification of total number of newly employed persons.

“Total value of the state aid, with exemption of substantial re-qualification aid, may not exceed 40% of really spent investment costs suitable for state aid provision, and simultaneously they do not exceed the amount of CZK 154 million. Further conditions state that the investment must be maintained during the real consummation of the reduction of income tax, at least for five years. The aid for creation of new working positions was approved similarly subject to condition of its maintenance for five years,” stated the Chairman of the Office Mr. Josef Bednář.

The company Furukawa is active in the area of production of low voltage board panels and batteries, cables and wires and production of electronic gadgets and electric machines and devices. The company concerned is investing in Unhošť (Central Bohemia) in new facility for production of car airbags switches.

Press and Information Department of the Office