The Hungarian economy must be made to enter a new dimension so that the country should not only be a production hub, but also Central-Europe’s most attractive research and development centre, Minister of Foreign Affairs and Trade Péter Szijjártó said at the opening of Itron’s new Center of Excellence.
The project worth HUF 2 billion of the US firm developing energy and water management solutions was awarded a fiscal grant of HUF 412 million thanks to the fact that, pursuant to the Government’s decision, research development projects may be given a 25 per cent state contribution, the Minister highlighted.
In consequence of the project, some one hundred new jobs requiring highly qualified work force will come into being in the Gödöllő Ganz Factory of Electric Measuring Instruments which constitutes the foundations of the project, and therefore the market leader American company’s investment is based on Hungarian traditions, he added.
Mr Szijjártó highlighted that the US investor community is the second largest in Hungary after the Germans: 1,716 businesses provide jobs for almost 100 thousand people.
There is „an incredibly fierce fight” world-wide for projects creating a high added value and jobs, and „hard, evidence-based arguments” are required in order to convince investors, he added. Hungary, as he said, has entered this competition, and therefore the Government is planning to further lower work-related taxes in addition to the reduction of the corporation tax that now qualifies as a record-low rate in the EU and the personal income tax.
The social contribution tax will decrease as of January, and a nation-wide network development has started in the interest of digitisation which facilitates the transition of the economy, the Minister said.
He reiterated that the investment record was broken last year with 71 projects, while this year 63 such agreements have already been concluded, and in consequence by the end of the year the 2016 record, too, may be broken. The investment negotiations currently under way „may easily turn into yet another success story”, and relations will further intensify next year as the Polish airline will launch direct services between New York, Chicago and Budapest, while American Airlines will start direct flights between Philadelphia and Budapest, Mr Szijjártó said.
The Hungarian economy could not thrive without the participation of US businesses, the Minister stressed.
According to information provided by the company, Bruce Douglas, Senior Vice President ad General Manager of Software and Services said: with the opening of its new research and development centre, Itron seeks to further reinforce its presence in Hungary. The software development team working in their Budapest office may take part in the shaping of the future of the energy industry, he added. He highlighted that Hungary is known world-wide for its highly qualified, knowledgeable workers who have earned particularly great recognition in the field of information technology, the communication reads.
Itron employs almost 8 thousand people in more than 100 countries around the world, and its annual sales revenues reach USD 2 billion. The company which is also a market leader in software services and smart city developments has almost one thousand registered patents or patents currently under registration.
(MTI)
