Szijjártó boasts record investment promotion in 2017
Bernadett Fejér/Ministry of Foreign Affairs and Trade
“The largest ever number and highest ever value of investment arrived in Hungary last year via the government’s investment promotion system; 96 projects brought a total of EUR 3.5 billion in investments,” Minister of Foreign Affairs and Trade Péter Szijjártó said at a press conference Wednesday to announce an investment by Turkish-owned concern Metyx.
Szijjártó at the Metyx press conference Wednesday (photo: Bernadett Fejér/Ministry of Foreign Affairs and Trade).
The investments created more than 17,000 jobs, Szijjártó said at the press conference in Budapest, held to announce a new investment by Metyx Hungary Limited in Kaposvár. By contrast, a year earlier government incentives produced 71 investments worth EUR 3.2 bln, official government website kormany.hu recalled.
Investments in the automotive sector accounted for 36 of the total last year, seven were in the electronics sector, seven in the food industry, and five in the IT sector. Ten shared service center investments were made, recalled the minister.
German-owned companies made 29 of the investments and Hungarian-owned firms 18, while U.S.-owned companies made ten investments and Indian firms four. Chinese, South Korean and Japanese companies each made three investments,while Turkish concerns accounted for two.
Szijjártó stressed that during the course of investment promotion, greater emphasis is being placed on companies that also bring research and development divisions to Hungary in addition to production bases, as this means they will be able to provide work and competitive salaries to highly-trained professionals.
Metyx expands production
At the press conference, Szijjártó announced that Turkish-owned composites maker Metyx Hungary is investing HUF 3.2 bln to expand its base in Kaposvár (southwest Hungary). The company will add four production lines and expand its base by almost 6,000 square meters, creating 182 jobs, he added.
The government is supporting the Metyx investment with a HUF 903 million grant, the minister revealed. The plant in Kaposvár mainly supplies parts for wind turbines, but also has partners in the automotive industry.
“Investments that create high added value and represent an advanced level of technology correspond best to Hungary’s economic strategy,” Szijjártó was quoted as saying by kormany.hu.
Ugur Üstünel, managing director of Metyx Hungary, told reporters that the company is planning additional projects in Kaposvár, noting that in view of the rate of growth in recent years Metyx is able to further develop its European activities here in Hungary.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.