EMCC European Monitoring Centre on Change

Dongil Rubber Belt Slovakia

Dongil Rubber Belt Slovakia

Geographic Location

Country: Slovakia
Region: Trenciansky kraj; Zapadne Slovensko
Location of affected unit(s): Povazska Bystrica


Sector: Manufacturing
Manufacture of transport equipment
29.32 - Manufacture of other parts and accessories for motor vehicles
Number Employed: 700
Group: Dongil

Employment Effects

Announcement Date: 21-02-2016
Type of Restructuring: Business expansion
Employment Effect Start: 01-10-2016
Foreseen End Date: 30-11-2016
Planned Job Creation: 150

Additional Information

The subsidiary of the South Korean producer of rubber seals for vehicles, Dongil Rubber Belt Slovakia, is to expand its business in Povazska Bystrica, where 150 new jobs will be created  in the first stage - most of the new workers will be women. The business expansion is attributed to Dongil's contract to manufacture car seals for Hyundai Motors in Russia. A new investment of €27 million will be spent on a new production hall and technology. Presently, the company in Povazska Bystrica employs 500 permanent and 200 temporary agency workers. The start of production is planned for September-October 2016, all of which will be exported to Hyundai in Russia. It is expected that a further 150 jobs will be created there in the next stage.

According to the Deputy Minister of Economy, Rastislav Chovanec, Dongil has applied to the Slovak government for investment aid of €3.75million in the form of tax relief. Although the investment is aimed at the automotive industry, by nature it also concerns the rubber industry based in nearby Puchov. It is assumed that more than 55% of the components for the seal's production will be supplied by Slovak firms. Dongil's biggest customers are Hyundai, Kia and Volkswagen Skoda.