'Slovakia' Party: Gov't Wants to Help Slovalco, But Other Plants Closing as Well

Bratislava, 13 January (TASR) - The 'Slovakia' party views it as incomprehensible that the Slovak government wants to provide extraordinary aid to the Slovalco aluminium plant while other factories across Slovakia are shutting down and laying off employees as well, said MP Julius Jakab ('Slovakia' party) on Tuesday in response to statements made by Premier Robert Fico (Smer-SD) earlier in the day. "Robert Fico is acting today as if only Slovalco existed in Slovakia. Meanwhile, factories are closing in Martin, Presov, Kosice and other regions, leaving thousands of people jobless," stated Jakab. While the government is focusing its attention on the aluminium plant in Ziar nad Hronom, it isn't extending a helping hand to other companies that are laying off hundreds of employees across various parts of Slovakia, stated the party. "Footwear producer Ecco Slovakia, with a 650-strong labour force, has left Martin; packaging firm DS Smith Turpak Obaly has announced that it's closing down after more than 100 years in business, leaving some 250 people jobless; and Martin-based printing house Neografia is shutting down its operations after 150 years as well," stated Jakab. The party noted that Slovalco had previously achieved significant profits, with a record one being posted in 2022. "In 2022, the aluminium smelter didn't report sales, but its net profit exceeded €200 million in that year," explained Jakab. He added that the factory made a managerial decision during the energy crisis to sell electricity purchased in advance at high prices and then subsequently scale down its production. "The government should first ask whether the shareholders are willing to return this money to Slovalco so that production can be resumed. Only after that should we discuss any form of state aid," stressed Jakab. The premier on Tuesday announced that the government plans to sign a ten-year memorandum of cooperation with Slovalco, not elaborating any details for now. As part of support for energy-intensive companies, Fico wants to propose a Europe-wide solution. He intends to present a proposal involving several years of exemptions from the emissions-trading system to other EU countries and to the European Commission. The aluminium smelter in Ziar nad Hronom originally operated over 220 electrolytic furnaces. Production of primary aluminium was scaled down in the summer of 2022, with the last furnaces being shut down in early 2023. At the time, Slovalco pointed to high energy prices and insufficient state compensation for energy-intensive industry. The company originally had up to 500 employees, while currently some 180 people work there. The plant continues to operate only as a recycling centre for scrap processing. ko/df