“The government regards the protection of workplaces as just as much its duty as overcoming the epidemic”, Minister of Foreign Affairs and Trade Péter Szijjártó declared at a presentation of competitiveness program funding certificates in Budapest on Wednesday.
According to the Minister, Hungarian enterprises could play an important part in the reconstruction of the Hungarian economy, and accordingly he is counting on their initiatives. “It is in their interests that the government has decided to exploit the easing of EU regulations, and use domestic resources to promote investment at a never before seen level”, he explained. “Benefits only lead to vulnerability and indebtedness, but the development and expansion of production creates jobs and forms a sound basis for an upturn following the crisis”, he added.
At Wednesday’s event, three more company directors were presented with funding certificates. Patec Precision Ltd’s investment of over 574.5 million forints (EUR 1.63 million) has been awarded 287 million forints (EUR 816 thousand) in state funding. The Singapore-owned company manufactures automotive industry parts in Miskolc. The company’s main local partner is Bosch, but two thirds of the company’s annual turnover of 1 billion forints (EUR 2.85 million) is derived from exports. The certificate of state funding was received by Deputy CEO Andrew Wong Chin. The region’s Fidesz Member of Parliament Katalin Csöbör said the company had retained all 80 of its employees and is preparing for the future with the acquisition of state-of-the-art production lines.
T-Plasztik Limited’s investment of 527.1 million forints (EUR 1.5 million) can count on receiving some 263.5 million forints (EUR 750 thousand) in budgetary funding. The Jászladány-based company manufactures industrial products from mainly rubber and plastic. The company exported over one and a half billion forints (EUR 4.25 million) worth of products to foreign countries both last year and the year before, and exports were responsible for more than a fifth of the company’s total annual turnover. Its partners include several large car manufacturers, including Audi, BMW, Ford, Mercedes-Benz, Honda, Skoda, Volvo and Volkswagen. Plant manager Attila Kerekes said he hoped the planned development projects would counterbalance the slowdown, explaining that orders had fallen by 40 percent as a result of the coronavirus pandemic. “By using its international contacts, the company will be able to acquire new markets if it modernises the plant and introduced new technologies”, he added. The region’s Member of Parliament János Pócs (Fidesz) recalled that the government was already making a major effort to protect jobs prior to the crisis. “Accordingly, the competitiveness program may also be regarded as proof of the government’s credibility”, he stated.
V-Casting Limited will be realising an investment of almost 522.5 million forints (EUR 1.49 million) with the help of 261 million forints (EUR 740 thousand) in state funding. The casting manufacturing company, which operates in the Pest County city of Ecser, has achieved significant turnover via its self-developed products. Almost half of the company’s 2018 turnover, over 1 billion forints (EUR 2.85 million), was derived from foreign sales.
Owner and Managing Director Miklós Vághi reported on the fact that the company has been unable to realise the planned development projects using its own resources because of the major reduction in orders. The company director said he regards automation and robot technology as the company’s primary take-off points, and trusts that though modernisation they will not only be able to regain their pre-crisis turnover, but significantly increase it. The region’s Member of Parliament Lajos Szűcs (Fidesz) said the southern area of Pest County is an extremely important area for investment. “Thanks to their favourable location, the area’s settlements not only provide a living for locals, but also contribute to a major degree to the performance of the Hungarian economy”, he stated.
12 enterprises applied for competitiveness-increasing funding on Tuesday, undertaking to realise 5 billion forints (EUR 14.2 million) in investments. As a result, the total number of applicants increased to 552 by Wednesday morning, raising the total investment value generated by the program so far to 265 billion forints (EUR 753.7 million).