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Briefing notesInvestments

All previous investment records already broken this year in Hungary

From Asia to Germany, foreign companies continue to pour money into Hungary for electric cars, pharmaceuticals, high-tech farming, and more.

Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó spoke at a hearing of the Economic Committee in the National Assembly, announcing that the government had provided cash support of HUF 129 billion by the end of October for 62 large-scale investments that will bring 9,682 new jobs. 

Szijjártó was pleased that the Hungarian economy was shifting from a production-oriented to a development-oriented economy. New jobs created through the country’s investment incentive scheme also saw an average gross salary of HUF 420 thousand last year and HUF 458 thousand in the first ten months of this year. 

The foreign minister outlined the new investment incentive system, launched on October 1st, wherein job creation will no longer be a prerequisite for obtaining subsidies. The government hopes to support more technology-oriented investments that bring new processes, procedures, and technologies to the country and add value to existing jobs.

Most notable in the FM’s testimony were a number of historic FDI investments. These included a total of 10 major investments from South Korea and four from Japan having already been negotiated in the first 10 months of the year and totaling some EUR 3 billion; the investments are related to the electric car industry. One of these is SK Innovation’s plant in Komárom, which will start producing electric vehicle batteries in 2021-2022; the South Korean company invested HUF 239 billion, and 1,000 new jobs will be created. 

One of the largest foreign direct investments was by BMW for its factory in Debrecen, which will produce both conventional and electric cars on a single production line. The first phase of construction has begun this year; the total investment amounts to more than one billion euros and will create 1,000 jobs.

Samsung SDI will expand Göd’s battery manufacturing plant by some HUF 390 billion, creating 1,200 new jobs. Out of its three factories, Samsung”s Göd factory is the only one outside of Asia. 

The Hungarian government also contributed to MOL’s polyether polyol plant in Tiszaújváros via support of EUR 131 million; the entire complex for the globally recognized Hungarian brand represents an investment of EUR 1.2 billion. 

And another largest-ever investment came by way of German FAKT AG: one billion euros (HUF 313.7 billion) for Central Europe’s most modern horticultural production, processing, and logistics center to be located on the border of Hegyeshalom and Bezenye. Complete with a 30-hectare greenhouse, the 130-hectare complex will serve to export Hungarian fruits and vegetables to European markets. 

Additional large investments were made by Audi (HUF 41 billion in Győr), Doosan (yet another South Korean company investing HUF 31 billion for copper foil manufacturing in Tatabány’sindustrial park), and GlaxoSmithKline (HUF 18 billion for vaccine manufacturing in Gödöllő).

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