Government aids tobacco factory expansion
The local unit of Germany’s Continental Tobacco inaugurated a HUF 1.1 billion expansion at its base in Sátoraljaújhely (257 km northeast of Budapest), with a HUF 544 million grant provided by the state, official government news portal kormany.hu reported.
The grant provided to Continental Dohányipari Zrt. by the government is the biggest the company has ever received, noted CEO Csaba Füzi.
Minister of Finance Mihály Varga said the grant was of a type the government awards to big companies ineligible for European Union funding. The investment will broaden the product palette to include tobacco for water pipes, as well as cigarillos. It will raise the companyʼs headcount by 20 to 420.
Being the third largest employer in Sátoraljaújhely, the role of the Hungarian-owned company is very important in the region, providing a living indirectly for some 4,000 agricultural workers, kormany.hu cited Varga as saying.
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