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Four Chinese Construction Giants Want to Invest in Slovakia
Monday 07 June 2010 Zoom in | Print page
Bratislava, June 7 (TASR) - Four major investors from China are interested in placing their investments in Slovakia, Chinese Ambassador to Slovakia Chen Jianfu confirmed for TASR.
The four companies, all of which in the construction industry, include Beijing Urban Construction, China Road and Bridge Corporation, Shanghai Construction Group, and China Railway Group.
Given that the investors are interested in large-size and financially demanding projects, the talks are complicated, said Chen. "That's why it can't be expected that the talks will move quickly, but they're in progress," said the ambassador.
However, Economy Ministry spokesman Branislav Zvara told TASR that no talks are currently going on between the companies and the ministry.
According to Chen, Chinese companies see great potential in Slovakia and its construction industry. "However, much will depend on the prospects for Slovakia's economy, meaning that the conditions have to be there for investing," he said. He added that the time schedules (that is, when big construction projects can be launched - ed. note) is also an important factor.
When it comes to what projects the Chinese firms want to invest their money in specifically, Chen said that those of public-private partnership (PPP) are "a good opportunity", but what will be important is if both sides (the state and the private company) will profit from them. This factor will also decide on the definitive result - whether the Chinese firms go for it eventually. "If the Chinese side finds out that there's no profit to be had out of it, the talks definitely wouldn't be continuing," noted Chen.
China Railway Group was in several talks with Slovakia in the past, while Beijing Urban Construction and China Road and Bridge Group have explored the Slovak market recently. The fourth company, Shanghai Construction Group, visited Slovakia in April, expressing their interest in joining the PPPs, which they claimed they could also handle financially.
As with most countries, Slovakia's had a foreign-trade exchange with China was in the red. Imports from China stood at €2.25 billion, while exports to the Asian country were only on €551.2 million. Chen says there is a historical reason for this. "The difference is shrinking ... although the balance is still unfavourable, it's better than before," closed Chen.
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