He hopes that the new production line will create new jobs in the Savinja valley, north-east.

Also present at the launch was Economic Development and Technology Minister Zdravko Počivalšek, who praised the management for taking this step.

Moreover, a cooperative of hemp growers has been established in the town of Polzela today.

The launch comes a day after the government decided to put the troubled state-owned company, which is undergoing business restructuring, up for sale next year.

The state holds lamost 60% in Polzela through the Slovenian Sovereign Holding (SSH), as well as the Bank Asset Management Company, which it acquired in a debt-to-equity conversion in early 2015.

The management is now negotiating a EUR 2m recapitalisation with the SSH. Klemenčič expressed hope that it would be carried out next year.

Klemenčič also said that the company, which employs more than 260 workers, has enough orders for next year.