The Japanese group, which plans to invest in Slovenia through its Swiss subsidiary Lonstroff, has picked a brownfield site in an industrial zone adjacent to Logatec, where the Bank Assets Management Company (BAMC) has 110,000 m2 of land for sale.

Cantarutti said the government regretted Lonstroff not picking a site with higher unemployment - a site in Zasavje region was offered - but respected the investor's choice.

The government is yet to decide on the amount of support for the EUR 34m investment. Media reports suggest the state will cover 10-15% of the investment.

The ministry is also awaiting the final decision by two potential investors, the Scottish BSW Timber Group and Turkish car industry supplier TKG Automotive.

The Scottish firm plans to set up a wood processing centre in Gomilsko, central Slovenia. Cantarutti said the government supported the effort and had already informed the company about the size of the incentive, but noted Slovenia was restricted by EU state aid rules.

As for TKG Automotive, he said a meeting with the investors had been held at the ministry and the company would be offered all the requisite support if it decides to invest.