Slovakia's Economic Landscape: Key Sectors and Production

Agriculture in Slovakia

Agriculture, encompassing forestry, mining, and fishing, is a primary sector of the economy. It produces:

• Food for the population
• Raw materials for industry

Historical Development

• Beginning of the 20th century: 60% of the population made a living by agricultural production.
• 1949: Collectivization of agricultural production (state property).
• 1970s: Agricultural cooperatives (poľnohospodárske družstvá) were established.
• 1989: Dissolution of agricultural cooperatives – land and property began to be returned to original owners (or descendants).
• Joining the EU: European agricultural policy – quotas.

Current State of Agriculture

• Agriculture employs less than 1.5% of the workforce.
• Contributes 0.9 – 1.5% to GDP.
• Agricultural land occupies 49.3% of the total area of Slovakia.
• There is a gradual loss of arable land to built-up areas.

Agricultural Production Overview

While animal husbandry predominates overall, crop production is significant in specific regions:

• Crop production predominates in the regions of Bratislava, Trnava, Nitra, and Košice.
• Cereals are grown on 60% of the sowing land, including wheat, barley, corn, rye, and oats.
• Fodder crops (krmoviny) and fodder root crops (kŕmne okopaniny) account for nearly 20% of production.
• Oilseeds, especially rapeseed (olejniny – najmä repka olejná), make up more than 20%.

Animal Husbandry

• There is a decreasing trend in the number of farmed livestock.
• Cattle farming is the most important (especially in Southwest Slovakia).
• Pig farming is prevalent in corn agricultural production areas (v kukuričnej poľnohospodárskej oblasti).
• Sheep farming utilizes traditional pastoral methods.
• Breeding of racehorses in Topoľčianky is primarily for export.
• Poultry farming is concentrated in specialized poultry farms.
• Fish farming has an increasing tendency, particularly around Levice and Stupava.
• Beekeeping.

Agricultural Production Regions

Slovakia's agricultural production is divided into distinct regions based on varying natural conditions:

A) Corn Production Area (Kukuričná Poľnohospodárska Výrobná Oblasť)

• Has the most favorable conditions for agricultural development.
• Lowlands and basins up to 200m (e.g., Danubian, Juhoslovenská, Košická, and eastern lowlands).
• Average annual temperatures: 9.5 – 10 °C.
• Rainfall: 550 - 600 mm, necessitating irrigation.
• Predominance of Chernozem soils.
• Key crops requiring warmth and fertile soil include corn, wheat (pšenica), sugar beet (cukrová repa), oilseeds, tobacco, vineyards (vinič), and various fruits.

B) Rapeseed Production Area (Repárska Poľnohospodárska Výrobná Oblasť)

• Higher parts of lowlands and basins.
• 200 – 300 m above sea level.
• Average annual temperature: 8 – 9 °C.
• Rainfall: 600 – 700 mm.
• Brown soils.
• Crops include sugar beet, wheat, corn, malting barley (sladovnícky jačmeň), and fodder grains (kŕmne obilniny).
• Viticulture (vinohradníctvo) is well-developed.

C) Potato Production Area (Zemiakárska)

• Lower and middle parts of the highlands (vrchovín) of central and northern Slovakia.
• 300 - 500 m above sea level.
• Average annual temperatures: 7 - 8 °C.
• Rainfall: around 700 mm.
• Predominance of Cambisols, suitable for potatoes, rye, and oats.
• Meadows and pastures form the fodder base (krmovinová základňa).
• Notable regions include the Orava, Kysuce, Podtatranská, and Hornádska basins.

D) Potato-Oat Production Area (Zemiakarsko-Ovsená Výrobná Oblasť)

• Lower foothill (nižšie podhorské oblasti) areas and high-lying basins.
• Areas 500 - 600m above sea level.
• Average annual temperatures: 6.5 – 7.5 °C.
• Rainfall: 700 - 800 mm.
• Crops include potatoes, fodder crops (krmoviny), and less demanding grains like oats.

E) Mountain Production Area (Horská Poľnohospodárska Výrobná Oblasť)

• Characterized by a cool and humid climate with a shorter growing season (vegetačné obdobie), typically in areas above 600 m above sea level.
• Foothill (podhorské) and mountain regions.
• Average annual temperatures: 6.5 - 7 °C.
• Rainfall: above 800 mm.
• Podzol soils support crops like rye, oats, potatoes, flax, and fodder root crops.
• Abundant meadows and pastures.

Forestry in Slovakia

• Forestry covers approximately 41% of Slovakia's territory.
• In the past, human impact on forests was negative: forests were cleared for arable land, pastures, and wood for mining. Original forests were later replaced by monocultures, mainly spruce.
• Slovakia is currently one of the most forested countries in Europe.
• The highest proportion of forests is found in the Žilina region, while the lowest is in the Nitra region.
• Deciduous forests (58.3%) predominate over coniferous forests (41.7%).
• Coniferous forests include spruce (the most widespread at 27%), pine, fir, larch, and dwarf pine.
• Deciduous forests are dominated by beech (30%), oak, hornbeam (hrab), maple, and birch.

Wine Growing Regions

Water Management

• Supply of water for the population, industry, and agriculture.
• Sewage networks and wastewater treatment, along with the protection and cleanliness of water sources.
• Flood protection.
• This sector addresses the uneven distribution of water resources, varying water quality, and diverse demand across different regions.
• Slovakia has 46 large reservoirs (and almost 300 smaller ones), primarily on the Váh River (Važská kaskáda), which serve for water supply, electricity generation, and irrigation.

Industry in Slovakia

Secondary Sector of Economy

Industrial History

The development of industry in Slovakia began in the 19th century, with early sectors including mining, metallurgy, wood, textile, glass, and paper industries.

In the lowlands, the processing of agricultural products led to the establishment of mills, sugar refineries, and breweries.

By the end of the 19th century, the chemical industry began to develop, notably with the oil refinery Apollo (later Slovnaft).

The development of railway transportation also played a crucial role.

After World War II, industry was concentrated in large enterprises, primarily focused on woodworking and heavy industries such as metallurgy, machinery, chemical industry, and construction.

After 1989, there was a decline due to changes in ownership, a period of transformation, shifts in company structures, a reduction in the number of employees, and a decrease in concentration levels.

After joining the EU in 2004, new markets opened up, attracting foreign investments and leading to the establishment of industrial parks. However, regional disparities also emerged.

Today, industrial development is primarily driven by foreign investments, with foreign companies either purchasing existing Slovak plants or establishing new ones, often within industrial parks.

Industry's Role Today

Industry employs 30% of the economically active population and generates two-thirds of the economic output, with its products forming the majority of exports.

Mechanical engineering (strojárstvo) is the predominant sector of Slovak industry.

Industrial Raw Materials

Fuels

• Oil: Malacky, Gbely
• Natural Gas: Malacky, Láb
• Brown coal: Prievidza, Handlová, Modrý Kameň
• Lignite: Nováky (youngest brown coal)

Ore Resources

• Iron and copper: Spiš (Rožňava, Rudňany)
• Silver, gold: Banská Štiavnica, Kremnica

Minerals

• Magnesite: Jelšava, Lubeník
• Salt: Solivar, Zbudza
• Limestone: Malá Fatra
• Talc (mastenec): Hnúšťa
• Asbestos: Dobšiná

Mechanical Engineering (Strojársky Priemysel)

As the predominant sector of Slovak industry, mechanical engineering encompasses all factories producing machinery of various types and specializations. Currently, the automotive industry is the most important sub-sector, with key players including Volkswagen (Bratislava), KIA (Žilina), PSA Peugeot-Citroen (Trnava), and Jaguar Land Rover (Nitra).

Beyond automobiles, other significant mechanical engineering industries in Slovakia include:

• Motorcycles: Považská Bystrica
• Riverboats: Komárno
• Manufacture and repair of railway wagons: Poprad, Vrútky, Trnava
• Production of agricultural machinery: Detva (forestry and construction machinery), Martin (tractors)
• Military machinery: Dubnica nad Váhom

Metallurgical Industry

Metallurgical products form the material basis for engineering production and have a long tradition in Slovakia; historically, mining towns were home to smelters, forges, and blast furnaces.

The largest metallurgical plant is U.S. Steel in Košice (producing iron, steel, metal products, and car bodies), alongside Železiarne Podbrezová (processing metal scrap).

Non-Ferrous Metallurgy

• Aluminum plant in Žiar nad Hronom (production of aluminum and its products)
• Kovohuty Krompachy (production of copper and copper products)

Electrical Engineering Industry (Elektrotechnický Priemysel)

This industry focuses on the production of electrical devices and equipment. Key factories in Slovakia include:

• Samsung: Galanta (LCD screens)
• Foxconn: Nitra (screens)
• Osram: Nové Zámky (light bulbs)
• Whirlpool: Poprad (washing machines)
• OVP Orava: Trstená

Many smaller companies across Slovakia also manufacture electrical components and cables.

Chemical Industry

The petrochemical sector is crucial, focusing on the production of fuels and oils. Slovnaft (Bratislava) processes oil and natural gas transported from Russia via the Družba pipeline.

Other significant players in the chemical and plastics industry in Slovakia include:

• Istrochem: Bratislava (chemical production)
• Henkel: Bratislava (laundry and cleaning products)
• Duslo Šaľa: (production of synthetic fertilizers)
• Plastika Nitra: (plastic products, packaging)
• Chemolak Smolenice: (paints, varnishes, solvents)
• Chemosvit Svit: (plastic packaging, films)
• Continental Matador Púchov
• Chemko Strážske

Pharmaceutical Industry

Large-scale drug production is one of the youngest industrial sectors in Slovakia. The pharmaceutical industry in Slovakia emerged in the 1950s, with companies such as Zentiva Hlohovec (formerly Slovakofarma), Biotika Slovenská Ľupča, and Imuna Šarišské Michaľany. Currently, several companies in Slovakia are engaged in pharmaceutical manufacturing.

Food Industry

• Mills: Nitra, Trenčín
• Bakeries: Sereď (Sedita)
• Chocolate factories: Bratislava (Figaro)
• Sugar refineries: Trnava
• Canning factories: Rimavská Sobota (Riso)
• Breweries: Hurbanovo, Nitra, Banská Bystrica

Textile, Clothing, and Footwear Industry

Historically a major industrial sector, the textile, clothing, and footwear industries have seen shifts over time.

Textile Industry

• Cotton industry (bavlnárstvo): Ružomberok
• Silk industry (hodvábníctvo): Levice, Liptovský Mikuláš
• Wool industry (vlnárstvo): Žilina
• Linen processing: Kežmarok (TATRAĽAN)
• Knitwear (pletiarstvo): Svit (Tatrasvit)

Clothing Industry

• Trenčín (OZETA)
• Púchov (MAKYTA)
• Bánovce nad Bebravou (ZORNICA)

Leather Production

• Liptovský Mikuláš
• Bošany

Footwear Industry

• Partizánske (Novesta, ZDA)
• Bardejov (Bosp)
• Bánovce nad Bebravou (Gabor)

Wood Processing and Paper Industry

Historically a major industrial sector, wood processing and paper production are currently experiencing a decline.

Wood Processing

• Zvolen (Bučina)
• Krásno nad Kysucou
• Turany
• Vranov nad Topľou (Bukóza)
• Žarnovica (Preglejka)
• Giraltovce (Kronospan)

Furniture Factories

• Bratislava
• Topoľčany (DECODOM)
• Spišská Nová Ves
• Lučenec
• Pravenec

Paper Mills

• Žilina (Tento)
• Štúrovo (Smurfit Kappa)
• Ružomberok (Mondi SCP)
• Harmanec
• Bujakovo (obálky)
• Slavošovce

Energy Production

Slovakia's energy sector produces electrical energy primarily for industrial and domestic consumption.

Nuclear Power Plants

• Mochovce
• Jaslovské Bohunice

Thermal Power Plants

• Nováky
• Vojany

Hydroelectric Power Plants

• 31 plants, mainly on the Váh and Hron rivers.

Photovoltaic Power Plants

• Mochovce
• Vojany

Information and Communication Technologies (ICT)

The Information and Communication Technologies (ICT) sector falls under services and is one of Slovakia's fastest-growing industries.

• Slovanet: Telecommunication and data services
• Eset: Software development
• Soitron: Integrated communication systems (e.g., for police cars)
• Asseco Central Europe: Innovations and IT solutions
• Game development studios: Pixel Federation, PowerPlay Studio, Inlogic Software, Bohemia Interactive