Slovakia hopes to lure new FDI worth $43 mln

BRATISLAVA, Nov 22 (Reuters) - Slovakia hopes to draw new foreign investments of up to 1.2 billion crowns ($43.34 million) to an industrial park near the western town of Sered this year, officials said on Wednesday.

Investment inflows into the European Union newcomer have picked up this year thanks to low taxes, cheap workforce and proximity to western markets. New businesses have helped fuel economic growth to record 9.8 percent in the third quarter.

"It is realistic to expect that we will finish the first phase of filling up the park before the end of 2006, given the progress in talks (with investors)," Sered Mayor Jan Lehota said in a statement.

"This should bring further 300 jobs into the region, and the overall investment is estimated at up to 1.2 billion crowns."

News of foreign investment deals are closely watched by financial markets as inflows of foreign capital and prospects of new export-oriented businesses could boost the currency.

Martin Badal, project manager at the Sered park administrator Devecom, told Reuters contracts with three new investors should be signed within the next two weeks.

Badal declined to name the investors, but said a Slovenian car parts maker was willing to invest some 400 million crowns in Sered to supply assembly plants of Germany's Volkswagen and France's PSA Peugeot Citroen.

Two Czech firms were expected to spend around 50 million Slovak crowns each to build a distribution centre and a metal processing workshop in the park, Badal said.

Foreign direct investments to Slovakia totalled 34.2 billion crowns in January-July, according to central bank data. FDI inflows fell to a total of 17.3 billion crowns last year, from 22.4 billion in 2004.

((Reporting by Martin Dokoupil, editing by David Christian-Edwards; Reuters Messaging: martin.dokoupil.reuters.com@reuters.net; +421 5341 8402)) ($1=27.69 Slovak Crown) ($1=27.69 Slovak Crown)

Keywords: ECONOMY SLOVAKIA FDI