“As a result of well-thought-out strategic construction, Debrecen is now not only the number one investment destination in Hungary, but also in Central Europe”, Minister of Foreign Affairs and Trade Péter Szijjártó declared on Thursday at the inauguration of National Instruments’ new service centre building in Debrecen.

The Minister said the government had provided 2.5 billion forints (EUR 7.5 million) in non-returnable cash funding towards the 5.5 billion-forint (EUR 16.5 million) investment on the part of National Instruments (NI), which has created 216 new workplaces. “1481 billion forints (EUR 4.43 billion) in investment has arrived in Hungary so far this year”, Mr. Szijjártó said in summary, pointing out: “We will be able to celebrate new investment and export records this year”. According to the Minister, the industrial revolution of the modern age is bringing modern technologies into everyday use about which “we could previously never even have dreamed of”. “The new technology is creating a new competitive situation, and Hungary is standing its ground amidst the new competition”, he added, noting the above 5 percent rate of economic growth, which is outstanding within the European Union.

Mr. Szijjártó said a fundamental prerequisite to success is that the Hungarian economy is transformed from a production-oriented economy into an economy that is orientated towards innovation and development projects. “This requires major measures”, he added, mentioning from among these the fact that from 1 October job creation is no longer a prerequisite for receiving state funding within the investment promotion system, the further reduction of social contribution tax, and the system of tax benefits associated with research & development. As an example of the fact that the Hungarian economy represents a higher added value than even just six months ago, he told reporters that at the end of 2017 the average gross salary payed with respect to the workplaces created by the investments arriving in Hungary was 304 thousand forints, while today it is 460 thousand forints.

According to Mr. Szijjártó, this increase of some 50 percent also proves that the investments arriving in Hungary represent a different added value and a different level of technology than previously. “This is also verified by NI’s 18-year history in Debrecen: first, the American company took production to the Hajdú-Bihar County capital, then it modernised technology, and we are now inaugurating an information technology, research and technology development division”, he explained. Mr. Szijjártó told the press that the electronics industry realised 11 percent growth last year, which represents a production value of 5100 billion forints (EUR 15.26 billion), and further growth of 10 percent between January and September of this year, equating to a production value of 4100 billion forints (EUR 12.27 billion). “The Hungarian electronics industry, which employs 145 thousand people, operates with an export rate of 93.4 percent”, he added. According to the Minister of Foreign Affairs and Trade, there are currently 1700 American companies operating in Hungary, employing 105 thousand people, predominantly Hungarians.

Mayor of Debrecen László Papp said: “A new era in economic development began when NI settled in the city 18 years ago, and the company’s success story has proven that Debrecen is capable of serving enterprises that have the highest possible demand for technology and knowledge”.

The Mayor praised NI’s local mentor programme, within the framework of which over six thousand students from 145 institutions in the city and the region have come into contact with the company over the past 10 years. Managing Director of the NI Group Alex Davern also praised the company’s successful operations in Debrecen, pointing out that 18 years ago Debrecen had been in competition with far eastern locations for the construction of the Texas-based corporation’s first ever plant outside the United States. “The environmental impact of the newly inaugurated six thousand square metre office building is minimal; its energy use and maintenance conform to the strictest American environmental protection standards”, he indicated. To mark the inauguration of the new building, Managing Director of NI Hungary László Ábrahám and Rector of Debrecen University Zoltán Szilvássy signed a strategic cooperation agreement. According to publicly available company data, NI Hungary Ltd.’s sales realised a net turnover of 650 million dollars last year, following 600 million dollars in 2017.

(MTI)