Good practice:

Railway industry as new opportunity for the coal mining region

Region of Upper Nitra was for many years known for its dependence on the coal mining industry. Depletion of coal mines reserves, lack of profitability and competitiveness as well as environmental request of the EU lead to their closure not only in Slovakia, but within the whole union. For this reason, Action plan for the transformation of the coal region of Upper Nitra have been developed, with the financial support by European Commission (Structural Reform Support) defining the new opportunities for the regional economy.
One of the most innovative case study is partnership of Upper Nitra mines and TATRAVAGÓNKA developing the new joint Innovative production of railway freight car bogies, which is repurposing the existing coal mine manufactory infrastructure for the production and R&I activities in promising railway sector, at the same time re-educating the workforce of the coal mine and providing them with job opportunities within new industry, tackling the sensitive social issues of this transformation process.
Project brings benefits as enables to significantly shorten the time of set-up as well as financial costs, thanks to the support by European Commission as creates 800 new jobs.
And the potential of future regional development is even higher as TATRAVAGÓNKA plans to create the positions for the research department what can be even more attractive for people from other, more-developed region, to come here and help to support the transition of the regional economy.

Overall expected budget: 100 000 000 EUR
The investment is planned to be covered partially by EU Funds - The Just Transition Mechanism. The possibility to raise the financing rate from 20-25% to the needed 50% is currently discussed between the government of the Slovak republic and EU Commission.

Project tackles the social impacts related to transformation, thanks to repurposing of infrastructure and improvement of existing workeforce skills-800 jobs will be created.

Significant waste prevention thanks to the implementing the previously used technical infrastructure.

Regional development, raise of competitiveness and innovation potential is expected as innovative type of production can attract additional companies creating supply-chain leading to the new job opportunities.

European regions today face the challenge of the regional transformation due to the closure of coal mines. New opportunities are sought out and this case study can be valuable inspiration how should the process of economy transformation on the regional level be planned, including not only renovation and adaptation of buildings and mechanical infrastructure for new functions, but also education of the inhabitants who will change their job due the structural industrial changes.

Regional transformation is particularly important decision and is followed by the change of the strategic goals by local companies, which is naturally critical and sensitive topic for employers, as well as employees. In the process, the communication and cooperation with all stakeholders are crucial and the case study of Upper-Nitra region can be good example. Action plan for the transformation of the coal region of Upper Nitra which was developed in a cooperation with all quadruple helix stakeholders.