“526 investors applied for competitiveness-increasing funding until Monday morning, and have undertaken to realise a total of 254 billion forints (EUR 715 million) in investments”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Monday in Budapest following the presentation of investment funding certificates to three Hungarian enterprises.

Mr. Szijjártó welcomed the fact that 416 out of the over five hundred enterprises that are planning to realise investments are Hungarian-owned. “The government would like to contribute to every investment, and accordingly last week the budget for the program was doubled from 50 billion forints to 100 billion forints (EUR 280 million), and may be increased even further if there is sufficient demand from prospective investors”, he added.
With relation to the background of the funding program, the Minister explained that the Cabinet decided on providing the funding in line with the authorisation of the European Commission. In view of the crisis, the Brussels body has enabled the governments of member states to provide a maximum of 800 thousand euros in funding to individual enterprises. Mr. Szijjártó said that in view of the importance of protecting and creating jobs, up to half of the value of investments may be awarded in the form of state funding. “The current situation is not unknown to the government in view of the fact that we had to solve similar difficulties in 2010. But construction can begin from a much more stable foundation on this occasion, because prior to the crisis Hungary achieved an outstanding level of development, even in European comparison”, the Minister emphasised.

On Monday, the Ministry of Foreign Affairs and Trade’s Parliamentary State Secretary Levente Magyar officially presented funding certificates to the directors of three Hungarian automotive industry enterprises.

Bálind Ltd., which is based in Balatonöszöd and manufactures engine parts and body and braking system elements, is receiving 287 million forints (EUR 807 thousand) in state funding with respect to its new investment of 574 million forints (EUR 1.61 million). At the event, managing Director János Bálind said the company’s goals were to protect jobs and achieve permanent growth. “New production lines, production equipment and production technologies will be arriving at the company thanks to the investment”, he stated. The region’s Member of Parliament Mihály Witzmann (Fidesz) added that the effect of the coronavirus epidemic could be mitigated thanks to cooperation between enterprises and the government. “The investment is particularly favourable for Somogy County, in view of the fact that relatively few industrial initiatives have arrived in the region to date”, he added.

Dana Hungary Production Limited, which manufactures and distributes car parts, is planning an investment of 428 million forints (EUR 1.2 million) with government funding of 214 million forints (EUR 600 thousand). According to Managing Director of the Győr-based company Charles Wassen, Hungary has reacted well to the danger posed by the epidemic, and Dana Hungary has successfully overcome the associated challenges. “The reduction in volume has primarily affected suppliers, not the company itself”, he added. From among the measures introduced during the period of emergency, he highlighted the fact that development projects scheduled for holidays over the summer or Christmas period have been successfully realised over recent weeks, and thanks to the government funding new production lines will now be arriving at the company. Member of Parliament for Győr Róbert Balázs Simon (Fidesz) welcomed the fact that enterprises are gaining access to government funding quickly, since in his opinion speed is the most important criteria in the current, extraordinary situation.

Valeo Siemens eAutomotive Hungary Limited is realising an investment of 597 million forints (EUR 1.65 million), towards which it is receiving 287 million points (EUR 800 thousand) in state funding. The Veszprém-based plant manufactures electronic parts and systems for vehicles. Managing Director Yann Keraudren said that in his opinion the role of electric vehicles could gain further importance in the period following the pandemic. “This already justifies an expansion of the plant’s performance, despite the fact that the recession is hitting all enterprises”, he added. Péter Ovádi MP (Fidesz) said he hopes that cooperation between enterprises and the state will enable Veszprém’s development momentum to be maintained despite the difficulties, and that jobs are not lost within the region.

During the upcoming days, the Ministry of Foreign Affairs and Trade will be presenting further certificates to enterprises that have acquired state assistance aimed at improving competitiveness.

(Ministry of Foreign Affairs and Trade/MTI)