Delta Group Opens New Plant in Slovakia

May 06, 2007 by Jeff Shepard

Delta Electronics Inc. officially announced the opening of its new factory in Slovakia. As the geographical center of Europe, Slovakia is said to be a strategic choice for Delta’s production and logistics. Slovakia offers an improving business environment, a favorable taxation system, a highly qualified and motivated workforce, as well as a flexible labor market. In addition, many of Delta’s global customers have an established presence there.

Delta’s Chairman Bruce Cheng expressed the vision that this new facility will become Delta’s Eastern European headquarters, enabling Delta to better serve its customers in the region as well as supporting its further growth. Cheng also voiced his appreciation for the assistance the government of Slovakia has provided. "The government of Slovakia has worked hard to improve its investment climate and it is attracting the attention of many world-class enterprises. This is our first major investment in Slovakia, and we look forward to achieving success. Our wish is to have a productive, competitive, and profitable enterprise that benefits everyone involved, while respecting our employees, the community, and the environment."

Delta’s Slovakia plant is equipped with modern technology for the production of complex power supply products (rectifiers, inverters, and controllers) as well as complete power systems. These products empower telecommunication, information technology, industrial automation and medical as well as solar power applications. The new location provides enough reserve area to allow for further growth of Delta’s business in Europe. The company plans to enhance the production scope to include further Delta products such as automotive products, fuel cell inverters, and components currently only produced in Asia. The central location of Slovakia and its strong automotive industry will also provide attractive new opportunities for Delta.

Delta invested over US$20 million in the new manufacturing plant and facilities, which will require 800 employees in its first phase of operation. This investment was supported by the Slovak government, which granted tax incentives in the range of US$7 million. Construction of the new factory began in July 2006 and its first production line commenced operations in February 2007. In accordance with Delta’s environmental policies, the new building was designed with a focus on good thermal insulation of the walls and roof with a K-value lower than 0.19W/m2K (the standard in Slovakia is above 0.30), the use of environmentally friendlier materials (e.g. rock wool/mineral wool), and the reuse of waste heat from production processes to heat the building.