Arconic-Köfém gets tax benefit for HUF 35 bln capacity expansion

Automotive

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Automotive industry supplier Arconic-Köfém is investing HUF 35 billion in a 17,000 square-meter production hall in Székesfehérvár, (64 km southwest of Budapest). The government is providing a HUF 8.3 bln tax break for the project, Minister of Foreign Affairs and Trade Péter Szijjártó said today at the start of the plantʼs construction.   

The investment will raise production of aluminum wheels by 500,000 units and create at least 200 jobs, Szijjártó was cited as saying by business news portal vg.hu. The investment will help ensure that Hungary remains a bastion of the auto industry in Europe, he added, noting that this is no mean feat given the competition for new investments on the continent and globally.

The performance of the vehicle industry as a whole is now vital for the Hungarian national economy as a whole, stated the minister, as some 28.6% of the output of Hungarian industry derives from the automotive sector, which he said attained a record production value last year of over HUF 8 trillion.

Arconic Inc. CEO Chip Blankenship said construction work will conclude in 2019, by which time the headcount at the plant will rise to 700. Arconic employs a total of more than 2,200 workers in Hungary at its bases in Székesfehérvár, Nemesvámos (128 km southwest of Budapest, near Veszprém) and Eger (139 km northeast of the capital). The company has invested USD 550 million in Hungary since 1993, noted Blankenship.

Arconic (formerly Alcoa) bought a majority stake in the then Székesfehérvár Light Metal Works in 1993. It plays an important role in Hungary, noted vg.hu, being one of the 100 largest companies and the 10 biggest investors engaged in manufacturing.

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