“Austrian-owned furniture manufacturing group Ada is expanding its Hungarian production capacity with an investment of 5.2 billion forints (EUR 16.8 million), towards which The Hungarian Government is providing one billion forints in non-returnable funding, 20 percent of the total cost of the project”, Minister of Foreign Affairs and Trade Péter Szijjártó announced.
“Ada Hungária Ltd. and Nova Furniture Ltd. are expanding all three of their facilities in Hungary in Körmend, Zalaegerszeg and Nova, creating 100 new jobs”, he told reporters.
“Three out of the five plants owned by Austria’s largest furniture manufacturing company are in Hungary, and the number of people currently employed by the company will be increasing by 100 to 1,460”, the Minister continued.
“This latest investment by Ada with further increase Hungary’s export performance”, he added.
“More and more sectors of industry are investing in Hungary, which has one of the most favourable investment environments in Europe thanks to the fact that we have the lowest levels of income tax and corporation tax within the European Union”, Mr. Szijjártó highlighted.
The Foreign Minister stressed that last year a record number of 96 foreign investments were made in Hungary via the investment promotion system, following 71 in the previous year.
In Hungary, the furniture manufacturing sectors generated 180 billion forints (EUR 580 million) in production value last year, a year-on-year increase of 6 percent; the sector provides jobs for 15 thousand people and an average of 63 percent of the goods it manufactures go to export, he explained.
However, Mr. Szijjártó also indicated that last year’s record low level of Hungarian unemployment represents a new challenge, and the crucial requirement for the further promotion of investment is the availability of a suitably trained workforce.
“For this reason, the Government had decided to increase the benefits and tax allowances relating to accommodation provided by employers, thus facilitating workforce mobility from regions where the level of unemployment is still higher than average”, he recalled, adding that in addition, a 5 billion forint (EUR 16.2 million) fund has been opened for local authorities to construct workers’ hostels.
The Minister also highlighted the fact that the Austrian investor community is the fourth largest in Hungary and Austria is Hungary’s second most important trade partner, with trade flow exceeding 10 billion euros by the end of last year. “Hungarian-Austrian economic relations will become even stronger thanks to Ada’s investment”, Mr. Szijjártó emphasised.
Ferenc Szabó, the Ada concern’s financial director told reporters: the group is the largest furniture manufacturer in Hungary today. The Austrian company established its first furniture manufacturing subsidiary, Ada Hungária Limited, in 1992, followed by Nova Furniture Limited in 2002.
“Over 95 percent of the products manufactured by the company goes to export. The plants are working at almost full capacity, and the demand for furniture and matrasses means that further orders can only be met though expanding production capacity and installing modern production equipment. This requires a complex investment project at all three of the company’s Hungarian plants, which will be realised within the next five years”, he told reporters.
Local MP László Víg highlighted the vehicle test track and the container terminal as key new development projects underway in Zalaegerszeg, indicating that Zalaegerszeg is awaiting new investments and the city is doing everything possible to assure the availability of a suitable workforce, citing as an example the fact that the city is building a workers’ hostel at a cost of 600 million forints (EUR 1.94 million).
(MTI)
