German company CEO warns Malta to ‘ensure right conditions to compete’

German company CEO issues stern warning to Maltese to preserve right conditions to allow more room for competitiveness.

ProMinent Malta chief executive Viktor Dulger has warned that it was “up to Malta to ensure as a location for manufacturing, maintains the conditions which allow it to compete successfully. In order to achieve this, it is essential to promote the skills and knowledge of highly qualified employees and to keep wages, energy costs and taxes at the right level.”

Speaking in the presence of Prime Minister Lawrence Gonzi who inaugurated ProMinent Malta’s €5 million expansion programme, which includes a new electronic products assembly line, Viktor Dulger also stressed that "it is essential that the administrative processes do not become too complicated. As little bureaucracy as possible and fast ways of reaching the decision-makers are the secret recipe. We see how difficult it has become in Germany to solve issues related to these sectors Do not let it get that far in Malta. Then, I am sure that ProMinent Malta can continue looking ahead to a bright future."

Dulger said the plant now occupied an important position in the German-owned company's international activities and products made in Malta, such as sensors, electronic units and diaphragms, were used in various applications where sophisticated metering processes were required. Exports are made to 40 countries.

The German firm set up its subsidiary in Bulebel in 1988. It now employs 100 workers.

Viktor Dulger thanked the workers and the authorities, particularly Malta Enterprise, for their support

Prime Minister Lawrence Gonzi, stressed his government's commitment to invest in education so Malta could have the skilled workers whom investors were seeking.

Gonzi said that Malta had a flexible economy in which high value manufacturing was an extremely important component.

He commented positively on the fact that a large percentage of the employees at ProMinent are women who returned to employment after a career break, in line with government policy.

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Certainly there is a lot said in the speech by Herr Viktor Dulger and on the heels of Frau Helgar Ellul it is a timely reminder that Malta has more than a lot to offer. Having seen the mess of other Countries in the EU and elsewhere in the MEDA area behaving as though they were the only Countries with the capability of inviting new businesses to their shores it is noteworthy to recall that Malta has always had a welcoming hand in its promotion of such inward investments. The claims made by a writer that wages are not up to the EU average (or it is indirectly implied) cannot always be seen in isolation. If a company has to choose between a high wage base - as was the case recently in the Republic of Ireland - and one of a moderate wage base - as we see in Malta then in the natural course of events businesses will move to the lower of the two. But what should be remembered is the fact that in Global Economy businesses will move around the World to suit the bottom line of financial prudence. If they didn’t then businesses would fold up more often than they do! Take a look at what is going on in the UK if you don’t believe this! Remember what happened with Dyson (the electrical company that invented a "Vortex Vacuum Cleaner" - they moved from the UK to Malaysia for just those reasons. What seems to be happening here in Malta is the drive by the leaders of the Government (the PM, the Minister of Finance etc.) and their development agency (of which Malta Enterprise is leading the field) is the wish to invite new and inspiring companies to Malta for the long haul and not just for the immediate dash and grab of investment subsidies. This approach which the Government has firmly adopted is encouraging to all prospective businesses. We see this in the responses announced for the development of the Malta Bioethanol Projects which have been vetted by Malta Enterprise since last year. This programme which will bring to Malta a British Company in a €90+ million in a privately financed inward investment to Malta and as a result will provide Malta with around 10 to 15% of its fuel needs for cars . This project will by 2013 (or thereabouts) - the first project - will create upwards of 140 jobs for engineering technicians and craftsmen and be looking to pay salaries equivalent to around €25,000-00 per year - easily comparable to their equivalents elsewhere in the EU. But as we read further in the European Press and Biofuels Press this is just the beginning for the same British Company has made it known that it wishes to build a further project of twice the size in Malta or Gozo in an investment of up to €140+ million which would produce around 30%to 40% of the fuel needs for Malta's hard pressed motorists by a year later. Again this would create a minimum of 230 or so similar jobs in Malta. The potential for a third plant also exists by the same company provided the employees are there. This Company from the UK is currently working on similar programmes elsewhere in the EU including Yorkshire in the UK, Holland nearby in the Mediterranean with new developments scheduled to start in Israel and Cyprus and a forward plan for SE Europe and Africa. If Malta wants to be part of this development then the time is now just as the demand for renewable fuels gains momentum and Bioethanol becomes the real substitute for gasoline. It is said that one of the decision making issues that makes Malta so accessible to such industries is the close proximity of the Country to the EU and being just north of the African continents. Such a location is ideal for such a Bioethanol production operation and it must be looked forward to with relish by many of those that have recently found themselves out of work. And as if this wasn't enough good news on the prospective employment front the same Company is looking at bringing to the Mediterranean area (and potentially Malta) the latest ultra-thin photo-voltaic cell developments through its sister company. This has been looking around for a suitable location to build a totally new high-tec facility somewhere around the Mediterranean and as we understand it the short-list is Malta or Cyprus. The people of Malta sjould not miss out on such developments for without them prosperity will not happen.
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Quote: "German company CEO issues stern warning to Maltese to preserve right conditions to allow more room for competitiveness." Pray, tell us, Mr.chief executive, what your salary is, and how you intend to "keep it at the right level"
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i agree with you GSCERRI and thats how it is.......
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Joseph Pellicano
Viktor Dulger, if you pay peanuts you get monkeys.
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"to keep wages, energy costs and taxes at the right level" - meaning as low as possible