Johnson Controls to Get State Aid for Slovak Headrest Project

Johnson Controls Inc. will receive state aid from the Slovak government in exchange for a pledge to create jobs at a time when the economy is slowing.

Slovakia’s cabinet in the capital Bratislava approved 3.9 million euros ($5.2 million) in tax breaks and 240,000 euros in cash subsidies for a venture the U.S. auto-parts maker formed with Innotec Corp. to make headrests, the government said on its website today. The costs of the project, which would create 125 jobs, are estimated at 8.2 million euros, according to the document.

State aid combined with labor costs, which are lower than in western Europe, are helping the eastern euro-area member to lure investors, mainly from the automotive industry. The government relies on foreign investment to help cut unemployment that at 14 percent is among the highest in the European Union.

The cabinet also granted 3 million euros in aid for a unit of caravan-appliance maker Dometic Holding AB, while Austria’s car-parts maker Miba Sinter Austria GmbH will receive tax breaks worth 3.6 million euros.