The government has so far given seven manufacturing companies affected by the global recession a total of €4,883,297 in financial aid, the Times Business has learnt.
The companies, Methode Electronics, Trelleborg Solutions, Stainless Steel Products, Dedicated Micros, Toly Products, Magro Brothers and Pamargan have all been given funds for the training of employees and capital investment in new technologies and product lines.
The government has been reluctant to disclose the individual financial packages given to the companies, saying this was a confidential matter.
In February Finance Minister Tonio Fenech set up a task force to identify what help can be given to industry in the wake of the global economic climate. The idea was to adopt a micro approach and to come up with tailor-made solutions for individual companies that needed assistance.
All the financial aid given by the government to these companies is within the framework of EU regulations. Some of the companies helped so far had been working on a four-day working week but have now reverted back to a normal five-day week.
Last June Toly Products announced its intention to invest €13 million on a new factory in Hal Far. Finance Minister Tonio Fenech had said that the company had been considering sacking 60 workers, but talks and an agreement on assistance by Malta Enterprise saved those jobs and resulted in the new investment.
Toly CEO Andy Gatesy had said the company also planned to invest €3.5 million on automation but will still increase its workforce by 10 per cent as new products are added. The company sacked 84 workers in October.
Pamargan Products Ltd, which makes bonded seals and O rings, reduced the working week for 91 employees in October but in January all of its 155 employees were made to work four days a week.
Last week Malta Enterprise chairman Alan Camilleri told The Times Business that the task force on industry has been negotiating aid packages with about 30 companies since it was set up in February.
“The negotiations principally involve trying to attract more investment to weather the current storm but at the same time help companies become stronger once the storm is over,” he had said.
Mr Camilleri said that for the last month and a half requests from industry for aid had declined. He said the fact that Malta Enterprise was still discussing possible help with some companies does not necessarily mean that an agreement will be reached with all the firms involved.