“A highly developed economy is unimaginable without the future of industry, and the automotive industry is contributing to Hungary’s performance to an outstanding degree”, the Ministry of Foreign Affairs and Trade’s Parliamentary State Secretary, Levente Magyar said on Wednesday in Budapest at a press conference to announce a new investment by Valeo Auto-Electric Hungary Limited.
Mr. Magyar stressed that the automotive industry has been making an outstanding contribution to the performance of the Hungarian economy for many years and is experiencing a never before seen rate of development. “Within a few years these changes could determine both our everyday lives and the future of other areas of industry”, he added.
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The State Secretary confirmed that as a partner of national economic significance, the French auto-electric company that is investing in Veszprém can, similarly to other domestic industrial enterprises, continue to count on the support of the Government in the interests of enabling Hungary to be one of the winners of the industrial and technological changes that are ongoing throughout the world. He highlighted the fact that French companies are the fifth largest investors in Hungary.
“A few years before the end of the year it can be stated that the Hungarian economy, and within it the foreign economy, will once again realise a record year. Exports are approaching and could exceed 100 billion euros, which is some 20 percent more than in 2010, while the total value of foreign investments in Hungary brokered by the state is approaching 1 trillion forints (EUR 3.18bn).
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Manging Director Levente Fonyódi recalled that the company announced its largest plant construction project to date only two years ago, the establishment of a 21 thousand square metre multifunctional complex that in addition to office and social functions facilitates logistics processes and also includes a training centre. “The complex, which will be constructed within a year, will also make possible the latest 59.7 million euro package of investments that will be realised by 2020, 8 percent of which will be put towards product and technology development, with the remaining sum earmarked for research & development tasks and increasing productivity”, he added.
The company’s director announced that thanks to the developments, the number of people employed by the plant will increased by 220, including 40 engineers, while annual turnover could increase by over 113 billion forints (EUR 360 million), thanks to which Valeo could “increase the outstanding role it has already achieved within the region“. The company wishes to continue the cooperating it has begun after 2020, and will continue to count on the knowledge and experience of Hungarian experts with relation to future projects, he added.
Mayor of Veszprém Gyula Porga (Fidesz-KDNP) called Valeo’s operations in Veszprém a success story, adding that the company’s success has contributed significantly to the city’s achievements in view of the fact that Valeo not only creates jobs and increases the city’s revenues, but also supports the local community through its corporate responsibility. The company sponsors several social, cultural and sports programmes, meaning its latest investment will be going to a good place, the city’s Mayor added.
Valeo Auto-Electric Hungary Ltd. Realised 7.4 million euros in after tax profits in 2016 following 1.1 million in the previous year. Its net turnover was 472 million euros, following 345 million euros in 2015 (one euro was worth an average of 311.36 forints last year).
(MTI)
