The automotive industry and water management are the drivers of economic cooperation between Hungary and the State of Indiana which will contribute to the further expansion of the output of the Hungarian automotive industry in the future, Minister of Foreign Affairs and Trade Péter Szijjártó told the Hungarian news agency MTI on Wednesday by telephone.

The Minister highlighted that last year the Hungarian government and the State of Indiana entered into an economic cooperation agreement which was the first step of this nature for both parties. Hungary had never before signed such an agreement with any of the states of the United States, and the State of Indiana, too, concluded such an agreement for the first time with Hungary, he explained.

He pointed out that results of the agreement are already forthcoming: last year the volume of bilateral trade increased by 96 per cent which exceeded USD 175 million as a result, and there was a further 22 per cent increase in the first quarter of this year.

Mr Szijjártó said that he had talks with the executives of businesses operating in or with ties to the State of Indiana, almost all of which have interests in Hungary. “These companies are extremely satisfied with the opportunities offered by the Hungarian investment environment and the Hungarian fiscal regime”, he said.

He observed that the fact that Hungary “is the only country in Europe which boasts a flat-rate and single-digit corporation tax determines a great many investment decisions”.

The Foreign Minister said that in and around Indiana mostly automotive industry companies show further interest in Hungary, and these companies are of the utmost importance from the viewpoint of the Hungarian economy’s future growth because in the area of the automotive industry they are placing the emphasis on electromobility, i.e. new, innovative automotive industry developments.

He highlighted that the company BorgWarner now employs 1,700 people in Hungary, and one of the company’s largest European production units is located in Oroszlány. They agreed with the company to conclude a strategic cooperation agreement which will focus on further developments related to electromobility, he explained.

The Minister also said that the automotive supplier Dana is now engaged in production in four plants in Győr, and supplies from Győr not only large automobile manufacturers in Hungary, but also those in the surrounding countries in Central Europe. The company Allison Transmission conducts its activities in Szentgotthárd, in close cooperation with a factory forming part of Peugeot, he said.

Mr Szijjártó mentioned that he agreed with Secretary of Commerce Jim Schellinger that, in addition to the automotive industry, water industry and water management would also play a key role in bilateral economic cooperation. An Indiana water utility company has shown keen interest in the use of Hungarian water industry technologies and cooperation with the Metropolitan Water Works, and as the company is just beginning to extend it sewage treatment capacity, it would be happy to draw on the available Hungarian experience, he said.

(MTI)