Iveco calls off plans for Bielsko-Biala plant, opts for Italy

Iveco has decided against Bielsko-Biala in the south of Poland as the site of a new euro 323 million diesel engine plant, and will instead modernize an existing facility at Foggia in southern Italy. The decision comes after the authorities in Rome promised to cover one third of the construction costs at the ailing Foggia plant. Only recently Iveco admitted that building the new plant at Bielsko-Biala would be much more profitable than the Foggia alternative. Nevertheless the company opted for Italy, after being promised a euro 122 million subsidy from the Italian government. Commenting on the affair European Union competition commission spokesperson Emilia Torres said Poland and other Central European countries are losing many potential investors because they cannot afford to offer the enormous subsidies being demanded. (Rzeczpospolita, p. B3) A.Z.