“806 Hungarian enterprises are receiving state funding towards their job-protecting investment projects within the framework of the competitiveness-increasing funding program, the total budget of which has already been increased from an initial 50 billion forints (EUR 145.3 million) to 169 billion forints (EUR 491.2 million)”, Minister of Foreign Affairs and Trade Péter Szijjártó said at a press conference in Budapest on Thursday.

Mr. Szijjártó added that the state funding is being paid out continuously, meaning that all applicants will have received the funding they have been awarded within a few weeks. “The Hungarian government has exploited the European Union’s decision enabling it to provide a maximum of 800 thousand euros in funding to Hungarian enterprises, and this measure is also significant because the investment projects, capacity increases and technological development projects being realised now are creating the opportunity for Hungarian enterprises to successfully beat their foreign competitors in the new global economic competition”, the Minister declared.
“The global economic competition will be transforming following the first stage of the coronavirus pandemic; new participants will be appearing, and Hungarian enterprises must stand their ground within this changed environment”, said Mr. Szijjártó, according to whom, in contrast to 2010, on this occasion a robust Hungarian economy, and within it healthy Hungarian enterprises, are facing the challenges posed by the new global economic era.
The Minister also evaluated the fact that the 806 enterprises that are eligible to receive funding within the framework of the competitiveness program represent over 30 different sectors of industry as a positive, which he said indicates that the Hungarian economy is standing on several pillars. “The fact that the Hungarian economy is standing on several pillars serves as one of the guarantors that the country will be able to overcome the global economic challenges and difficulties”, he added.

Three more companies were presented with their funding certificates at the Ministry of Foreign Affairs and Trade on Thursday. BorsodChem Zrt’s 1.308-billion-forint (EUR 3.8 million) investment is receiving 287.27 million forints (EUR 835 thousand) in state funding. The 563.24-million-forint (EUR 1.63 million) investment project being realised by Fevita Hungary Zrt. can count on receiving 281.62 million forints (EUR 818 thousand) in budgetary funding. The Hungarian state is contributing 219.87 million forints (EUR 639 thousand) in funding towards the 439.75-million-forint (EUR 1.28 million) investment undertaken by NEUZER Limited.

Mr. Szijjártó said with relation to the three companies, which are protecting a total of 3234 workplaces, that Fevita Hungary Zrt. has the largest share of Hungary’s quick-frozen food products market, and produces some 32 thousand tons of quick-frozen products each year. The investment in cold storage technology being realised by the company will enable the enterprise to also enter the Far Eastern markets. NEUZER Limited is Hungary’s largest manufacturer of bicycles, and the new investment will enable the company to increase its ratio of Hungarian suppliers. BorsodChem Zrt. is a partly Chinese-owned company that will be able to increase the annual capacity of its polyol mixing plant to 30 thousand tons from the current 20 thousand tons thanks to the investment project it is realising with the help of state funding”, the Minister of Foreign Affairs and Trade told the press.

CEO of BorsodChem Zrt. László Krupa said the company is one of Europe’s leading chemical raw materials production companies, and last year some 90 percent of its annual turnover was derived from exports, and the company exported its products to 76 countries. In addition to Europe, the company also realises significant sales in Africa, and both North and South America.
President and CEO of Fevita Hungary Zrt. Csaba Perlaki said the 100 percent Hungarian-owned, 53-year-old company employs almost 200 people. Thanks to the investment project being realised, the company will be able to optimise its procurement of raw materials, in addition to which logistics and warehousing development projects will also be realised, the goal of which is to enable the company to enter new markets, including Japan.

Managing Director of NEUZER Limited András Neuzer said the medium-sized company realised 4 billion forints (EUR 11.62 million) in turnover last year. A significant proportion of the parts used by the company come from China, and it also has suppliers in Italy and France, but its supply chains have been broken as a result of the coronavirus pandemic. According to the Managing Director, it was as a result of this that the idea arose to manufacture the missing parts on site, and to increase the number of the company’s Hungarian suppliers. The investment projects being realised within the framework of the competitiveness program will facilitate the realisation of this goal.

(Ministry of Foreign Affairs and Trade/MTI)