“Automotive industry parts manufacturer Ames Hungaria Ltd. is expanding the capacity of its manufacturing plant in Szentgotthárd with an investment of 3.5 billion forints (EUR 10 million), which will lead to the creation of 75 new jobs, and the Hungarian Government is providing 349 million forints in non-returnable funding for the development project”, Minister of Foreign Affairs and Trade Péter Szijjártó announced.
“Ames’s investment in Hungary is a clear indication of the fact that interest and confidence in Hungary’s investment environment on the part of foreign investors is unbroken”, he stressed.
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“The fact that Hungary has the lowest rates of personal income tax and corporation tax in the European Union is a major positive factor working to Hungary’s advantage”, he added.
Mr. Szijjártó told reporters that Ames is Spain’s largest steel and metal manufacturer and the fourth largest in the European Union within the field of powder metallurgy. The company has production capacities in four countries: Spain, Hungary, China and the United States.
“Following the expansion, the plant in Szentgotthárd will be the company’s largest production unit. Ames is a supplier to major automotive industry corporations, meaning there will be a major market demand for the metal and steel products manufactured here”, he added.
The Minister also explained that some 90 percent of the plant’s products are exported, meaning Ames is also contributing to the success of Hungarian exports, adding that exports could realistically reach 100 billion euros by the end of the year, breaking last year’s record of 93 billion euros.
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Mr. Szijjártó said the automotive industry provides the backbone of the Hungarian economy and achieved the sector’s all time highest production value last year, exceeding 7900 billion forints (EUR 22.7bn). “During the first nine months of this year the sector achieved further growth of 1 percent, and the fact that the number of people employed within the automotive industry increased by 11 percent during the past quarter, with 168 thousand people in Hungary now working within the sector, suggests further growth”, he explained.
On the subject of Hungarian-Spanish economic relations, the minister highlighted the fact that Spain is Hungary’s 13th most important trade partner and 18th most significant foreign investor. The some 300 Spanish companies currently operating in Hungary provide jobs for 4000 people, he told the press.
At the press conference, CEO of Ames Hungaria Limited Cesar Molins said the company sees an opportunity to expand its market, and this is why it is expanding its Szentgotthárd plant and establishing its largest production unit to date.
Mayor of Szentgotthárd Gábor huszár told reporters that the city is attractive for industrial development in view of its favourable geographic location and highly trained workforce.
Ames opened its Hungarian plant, where half-finished products manufactured in Spain are mechanically machined, in 2014 and the new production unit will include a full powder metallurgy process and state-of-the-art technology.
According to publically available company data, in the 2016 business year Ames Hungaria Limited generated a net turnover of 363.5 million forints, an increase of over 170.7 million forints compared to the previous year. Ames Hungaria Limited closed the business year with a loss of 12.8 million forints, compared with a profit of 51.04 million in the previous year. Last year, the average number of people employed by the company was 31.
(MTI)
