“Applicants for funding within the framework of the competitiveness-increasing program have undertaken to realise 376 billion forints (EUR 1.08 billion) in investments, and to retain a total of 143,600 jobs”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Tuesday in Budapest at a ceremony to present funding certificates to successful applicants.

The Minister said he will be asking the Cabinet to provide further funding in view of the fact that demand on the part of applicants has exceeded the program’s already tripled budget. Hungarian enterprises that are planning to realise investment projects had a total budget of 150 billion forint (EUR 434 million) available, but he said he expects a final total of around 178 billion forints (EUR 515 million) in state contributions to be paid to applicant enterprises.

Mr. Szijjártó said the territorial distribution of the successful applications is balanced, with a diverse field of activities. 772 out of the 948 planned investment projects would be realised outside the capital, and over 10 applications have arrived from ever single county. Applicants are producing in over 30 different sectors of industry. The largest ratio are food industry enterprises, with 122 applications, but with only slightly fewer, 101, applying from within the construction industry, while 97 applicants are performing metal industry production.

“80 percent of applicants not only operate in Hungary, but are also Hungarian-owned enterprises, meaning economic development can rest on strong private sector foundations”, the Minister said in evaluation of the prospects of the competitiveness program.

He said that in his opinion it is impossible to know in advance when we can finally begin talking about the era following the epidemic, but what is certain is that the success of the Hungarian economy depends on the success of Hungarian enterprises following the crisis. Mr. Szijjártó said this is why it is the duty of the state to contribute to the success of the private sector now, just as it has been doing for the past 10 years. “It is thanks to job-creating investment projects that Hungary is able to enter the totally transformed international competition from a favourable position despite the virus epidemic”, he added.

Three more companies were presented with funding certificates on Tuesday at the Ministry of Foreign Affairs and Trade.

The 615.8 million-forint (EUR 1.78 million) investment planned by Ferro-Press Limited will be receiving 282,408 million forints (EUR 817 thousand) in state funding. In recent years, almost 1 billion forints (EUR 2.89 million) out of the company’s annual turnover of 20 billion forints (EUR 57.8 million) has been derived from exports. At the event, Managing Director Tibor Birgés said the company would like to develop its packaging materials production with the help of the funding, in line with customer demand. “The already planned investment project was postponed because of the epidemic, and accordingly the state funding is enabling us to realise a development project that we have been planning for some time”, he added. Member of Parliament János Pócs (Fidesz) recalled that the government has helped the people of the Jászság region already on several occasions when jobs were endangered.

The 601.882 million-forint (EUR 1.74 million) investment project being realised by S.E.G.A. (Starters E-Components Generators Automotive) Hungary Ltd. has been awarded 282,408 million forints (EUR 817 thousand) in state funding. The automotive industry company operates the Chinese SEG Automotive group’s largest facility in Europe in Miskolc, Northern Hungary, in addition to which it also has its own development centre. Almost all of the company’s annual net turnover of 400 billion forints (EUR 1.157 billion) is derived from foreign sales. The company’s technological development project is also aimed at improving international competitiveness. Technical Director Béla Szabó-Lukovszki said the company’s new facility will be completed next year, and the funded development projects will be realised together with it in Miskolc. The city’s Member of Parliament Katalin Csöbör (Fidesz) said protecting workplaces, and ensuring that as few people as possible are forced to live off benefits, is the most important task of decision-makers. According to the MP, the government and enterprises must show an exemplar level of solidarity to assure the livelihoods of families.

The 538.635-million-forint (EUR 1.557 million) investment project planned by FF Metal Processing Zrt. can count on receiving 269.317 million forints (EUR 778.9 thousand) in state funding. The Budapest-based company operates its plant in Mezőtűr, in Jász-Nagykun-Szolnok County. It achieves the vast majority of its turnover as a suppler to German companies. In 2018, over 5.9 billion forints (EUR 17 million) of its a little over 6 billion forints (EUR 17.35 million) in turnover was derived from exports. The development project that is receiving state funding is also aimed at facilitating foreign sales, and will create the conditions for the manufacturing of new types of products. President and CEO András Rév said it is an important piece of assistance that enterprises can rely of flexible development opportunities during the current crisis. Member of Parliament István Boldog (Fidesz) said he hopes the investment project will also be creating new jobs, thus contributing to enabling the rate of employment in the county to return to its pre-crisis level of around 4-5 percent, adding that it is by no means inconceivable that the rate of employment could surpass the previous record low during the second half of the year.

Beneficiaries can utilise the awarded funding until the end of this year. The Cabinet has decided to award funding to a total of 72 enterprises to date.

(Ministry of Foreign Affairs and Trade/MTI)