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BRATISLAVA, Jan 14 (Reuters) - The world's top steel maker Arcelor said on Wednesday it would invest nearly 15 million euros ($19.1 million) in a steel-sheet processing centre in Slovakia, confirming earlier comments by government officials.
A Slovak official had told Reuters on Tuesday the project would process 50,000 tonnes of steel sheets a year into parts to be used for the manufacture of cars and white goods from 2005.
"Arcelor is going to invest in a steel service centre near Bratislava. We want to reinforce our presence on this market," said an Arcelor official, who did want to be identified due to company policy.
A number of car makers and car-parts suppliers have set up operations in Slovakia, a future EU member which has become a favourite destination for auto industry investors because of its low wages, proximity to western markets and one of the most liberal tax regimes in Europe.
The Arcelor official said it plans to increase the capacity in the centre, designed to supply the firm's clients in the region, to 200,000 tonnes a year at a later stage, but he did not elaborate.
Slovak authorities had said that Arcelor might expand the plant starting in 2006 if market developments are favourable.
Germany's Volkswagen , whose local operation is the backbone of Slovakia's booming car sector, will be soon joined by its French rival PSA Peugeot Citroen , which is building a plant with a capacity of 300,000 cars a year in a town north of the Slovak capital.
Both firms are key clients of the European steelmaker.