“The United States has become Hungary’s number one export market outside the European Union, with exports increasing by 11 percent in January of this year”, the Minister of Foreign Affairs and Trade said in Győr at the foundation stone laying ceremony for Dana Hungary Limited’s new 13 thousand square metre factory, which is being built with an investment of 46 million euros.
“1710 American companies are employing some one hundred thousand people in Hungary”, Péter Szijjártó highlighted, adding that he hoped the new investment by Dana, which will be the company’s central manufacturer of cogs in Europe, would serve to further reinforce Hungarian-American economic cooperation.
The Minister also spoke about the fact that America is the source of policy changes that are having a major effect on the global economy. He cited as an example the fact that the U.S. in future be practicing “much more patriotic politics”, which according to the Hungarian Government is perfectly normal. “Accordingly, the most important task for the world’s countries is to create an environment that leads to the establishment of the most attractive, best and most competitive investment environment”, he said. “This is also the goal of the Hungarian Government, and Dana’s latest investment, which is receiving 2.9 billion forints (EUR 9.4M) in funding from the Government, corresponds to this endeavour”, the Minister said.
Mr. Szijjártó explained that this was why Hungary had introduced the lowest level of corporation tax in Europe and is significantly reducing the level of social contributions payable by employers from 27% to 22% this year, and from 22% to 20% next year.
Hungary has also introduced a new tax benefit according to which companies can deduct twice the sum they spend on research and development from their taxable base, he added. Mr. Szijjártó also said that in his view Hungary was at least two years ahead of the EU with relation to the digital development programme, because next year the whole country will have access to at least a 30MB/s internet connection, and according to plans the majority of the public will be able to enjoy 100MB/s internet access by 2020.
Mr. Szijjártó also highlighted the fact that the automotive industry continues to be one of the flagships of the Hungarian economy, realising a production value of 7874 billion forints (EUR 25.5bn) last year, breaking all previous records, which increased by a further 7 percent in January of this year. The sector employs 154,957 people.
The Hungarian Foreign Minister also said that major investmentd not only provide a development opportunity for Hungary, but also for neighbouring countries via suppliers, citing as an example Slovakia, with which recent relations “have never before been so balanced”.
Dana Hungary Limited is a member of the Dana Group and has been present in Hungary since 2005 with three plants in Győr, where it employs around 600 people.
President of Dana Light Vehicle Driveline Technologies Bob Pyle spoke about the fact that the fourth production unit would lead to the employment of a further two hundred people, making the company the County capital’s second largest employer. The company’s central cog production plant will facilitate the development of the European automotive industry, he said.
The Dana Group employs a total of some 27 thousand people in 34 countries on 6 continents. In February, the Group opened a new plant in Australia, and will be opening other units in China and America during the course of the year.
Dana Light Vehicle Driveline Technologies’ Managing Director for Europe Arjan Birk told reporters that earthworks for the new plant in Győr have already begun, and the plant itself will be ready in the autumn, with production beginning next January. The plant will produce fifty thousand drive units-a-year, and according to plans will also manufacture full drive shafts in future.
Dana Hungary Limited’s partners include, amongst others, Land Rover, Volkswagen, Jaguar, Deere, Ford, General Motors and Manitou.
According to figures from the Ministry of Justice, the company realised total turnover of 225 million euros in 2015, an increase of 25.4 million euros compared to the previous year. The company recorded after tax profits of 16.1 million euros, 6.8 million euros more than in 2014. The figures for last year are as yet unavailable.
(MTI)
