“The crisis has made global market prospects uncertain, and for this reason the best domestic conditions must be provided for enterprises that are preparing to reboot their operations”, Minister of Foreign Affairs and Trade Péter Szijjártó declared on Thursday at the Ministry of Foreign Affairs and Trade, where he presented three more company directors with certificates of funding being provided within the framework of the competitiveness-increasing program.

According to Mr. Szijjártó, the only certain thing within the global economy is change, and it is not enough to only protect against the direct effects of the epidemic. “Because in addition to human lives, the virus is also threatening livelihoods, and accordingly the government will be continuing its economic policy built on work”, he stated.

The Minister said the Competitiveness Program will not be rejecting applicants because of a lack of resources. “In view of the extremely high level of interest, the government has increased the Program’s budget from 50 billion forints (EUR 143 million) to 150 billion forints (EUR 429 million), and is prepared to increase the available resources even further if applications for funding exceed the expanded budget”, he added.

Member of Parliament for Debrecen Lajos Kósa (Fidesz) explained: “We must occasionally face crises, and accordingly we must not forget that economies that are in good condition can stop recession more easily”. “The austerity measures and cutbacks introduced by the Gyurcsány and Bajnai governments led to total bankruptcy, but now crisis management is characterised by increasing employment, tax cuts and development projects. As a result, Hungary may regard itself as lucky even in the current epidemic situation, in view of the fact that its economy is in the starting blocks, ready to be rebooted”, he added.

From among the companies receiving funding, Radel & Hahn Zrt. will be realising an investment of over 575.8 million forints (EUR 1.65 million), towards which it is receiving over 287 million forints (EUR 820 thousand) in state funding. The Debrecen-based air conditioning and air technology company’s turnover is mainly derived from domestic sales, but according to its latest annual report, over 110 million forints (EUR 305 thousand) of the company’s total turnover of around 4 billion forints (EUR 11.44 million) were derived from exports. The company fell under Austrian ownership following the 1989 regime change, operates a plant with almost 2 thousand square metres of floor space, and serves as a supplier to both Continental and Samsung. CEO János Tar said the company will be acquiring new equipment within the framework of the development project, in the interests of improving production output and quality.

Hi-Lex Hungary Limited will be realising an investment of 571 million forints (EUR 1.63 million), towards which it will be receiving 282.5 million forints (EUR 808 thousand) in state funding. The cable systems manufacturer is a member of the Japanese Hi-Lex Corporation, and the company’s plant operates in Nógrád County in the Rétság Industrial Park. The vast majority of its net annual turnover of 50 billion forints (EUR 143 million) is derived from foreign sales. In addition to Suzuki’s plant in Esztergom, the company also serves as a supplier to Ford, Toyota, Renault and Nissan, and since 2016 has also been a partner of BMW and Audi.

According to plan, the plant will be receiving a new production line, which will enable the company to adapt more flexibly to customer requirements. Operations Manager Péter Miskei emphasised that the epidemic has only reduced demand, but technological development has not stopped, and accordingly by 2021 the company will be establishing both a development centre and a testing laboratory. At the award ceremony, the region’s Member of Parliament Mihály Balla (Fidesz) thanked the company for finding a solution even during this most difficult period, and successfully retaining all 400 of its employees.

The 180-million-forint (EUR 505 thousand) investment being realised by Tboss Limited is receiving 89.6 million forints (EUR 256 thousand) in state funding. The joinery company manufactures bathroom furniture. In 2018, it realised outstanding profits of 220 million forints (EUR 630 thousand), doubling the results of the previous year. The reduction in demand has also affected Tboss Ltd., but they did not want to lay off staff and in fact see an opportunity for acquiring new markets, it transpired from the company director’s report.
At the event, Managing Director Ferenc Tüdő said a new plant will be built in Székesfehérvár within the framework of the development project, and the company will also be taking on new employees. The 2 thousand square metre plant will increase the company’s production output by 20 percent. Member of Parliament Gábor Törő (Fidesz) said with relation to the announcement that the government’s measures have saved 11 thousand local jobs so far. “Fejér County is the country’s third most important industrial region, and accordingly the people living here regard the provision of support to enterprises during a period of crisis as especially important”, he added.

A total of 678 enterprises applied for competitiveness-increasing program funding until Thursday morning. The applicants have undertaken to realise 320 billion forints (EUR 915 million) in investment, and to preserve 122 thousand jobs. The government is providing a total of 151 billion forints (EUR 432 million) towards their investment projects thanks to the fact that the European Commission has authorised member states to provide a higher than before level of state assistance in view of the coronavirus pandemic.

(Ministry of Foreign Affairs and Trade/MTI)