Croatia is looking to persuade German auto giant Volkswagen to construct its planned €1.3-billion plant in the Balkan country following the car maker's suspension of a final decision about whether or not to build the factory in Turkey.
Peter Altmaier & Darko Horvat
German Minister for Economic Affairs, Peter Altmaier (left), meets Croatian Minister of Economy, Entrepreneurship and Crafts, Darko Horvat, in Zagreb. Photo: Croatian Ministry of Economy
According to reports by local news daily Jutarnji List, Darko Horvat, the Croatian Economy Minister, discussed the issue with his German counterpart, Peter Altmaier, during the latter's official visit to Zagreb. Thus far, neither minister has made any official statement on the matter.
Earlier this month, Volkswagen's executive board decided to postpone a final decision on whether or not to go ahead with construction of the plant in Turkey following the country's military incursion into northern Syria to take on Kurdish forces in the region, which it sees a threat.
The military assault has been widely denounced by both the EU and the US, with President Donald Trump threatening to "swiftly destroy Turkey's economy", although his stance appears to be already softening.
Since VW's decision to hold off the final decision, Serbia, Bulgaria and Romania have renewed their own bids to host the planned manufacturing facility.
Following the meeting with Altmaier, Jutarnji quoted Horvat as having said that if there was a will to build the plant outside Germany, Croatia was "ready in terms of workforce, business zones and legal incentives to accept it and fight for it".
However, Reuters has quoted Andreas Tostmann, VW's production and logistics chief as saying that the company was "not actively looking at alternative locations" for the planned facility.
Simultaneously, Mate Rimac, head of Rimac Automobili, the Croatian electric vehicle company, told another new daily that the company and its affiliates had made a presentation to Prime Minister Andrej Plenkovic and his cabinet outlining measures the country needed to take to attract such investors.
"The meeting was attended by the leading people of Porsche (a member of the VW Group) and Hyundai, and in this way we opened a channel of communication between the government and the big players in the automobile industry," Rimac is quoted as having said.
Porsche, Hyundai, Kia and China's Camel Group all own minority stakes in Rimac Automobili. Last month, Porsche increased its stake in the company to 15.5% from the 10% which it acquired in 2018.
"I am glad it has been recognised how much such an investment would mean for Croatia and I hope the government will use the analyses and proposals we have given them as well as the contacts we have established to attract such an investment," said Rimac.
"If we could be of any help in this process, we are certainly at their disposal. We have attracted more than €150 million of foreign investment in Croatia's automobile industry and are working with all main players in the field, therefore we believe we have the relevant knowledge and experience to help," Rimac added.
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