“The Hungarian economy is small, but extremely open, and accordingly international corporations are paying a major role in its improving performance, but it is Hungarian enterprises that are the soul of the economy”, Minister of Foreign Affairs and Trade Péter Szijjártó said at the inauguration of Kovács Ltd.’s new plant in Mezőkövesd on Friday.

“One of the most important results of recent years is that many Hungarian enterprises have increased in size and become stable suppliers to the largest multinational corporations”, Mr. Szijjártó highlighted. “These Hungarian family businesses have stood the test of time and competition, and are continuously working at world class level with relation to both quantity and quality”, he stated, pointing out that: “Their performance and continuous development is the most secure foundation for ensuring that the Hungarian economy succeeds in maintaining its rate of growth in the upcoming years and keeping its level of growth at least 2 percent above the European Union average”.

“Kovács Ltd.’s new forging plant, which is creating 60 new jobs and was constructed with an investment of 9.5 billion forints (EUR 28.5 million), towards which the Government is providing 1.1 billion forints (EUR 3.3 million) in funding, is a major step along this path”, the Minister stated.

“The development project is also important with relation to the dimensional transition of the Hungarian economy, in view of the fact that the company is putting into commission a state-of-the-art Swiss forging machine, of which there are 5-6 operating in the whole of Central and Eastern Europe, and which will be unique in Hungary”, Mr. Szijjártó explained, adding: “The new technology will be increasing the company’s manufacturing capacity to 25 million units from the current 2 million”.

The Minister of Foreign Affairs and Trade also expressed his appreciation to the company’s owners with relation to the fact that it is playing a determining role in local vocational training.

In evaluation of the performance of the Hungarian economy, Mr. Szijjártó said that while in 2010 it was “in the dunce’s seat of Europe”, it is now in competition for the title of fastest developing economy with a rate of growth in excess of 5 percent. “In the meantime, we have achieved a state of full employment, after starting out from an unemployment rate of 12 percent”, he said.

“Export and investment records have been broken every year for the past five years”, he pointed out. “The key to success is the country’s reindustrialisation”, he declared, pointing out that an economic policy has been realised that has successfully created 800 thousand jobs, based on industrial tradition, and the diligence and expertise of the Hungarian people.

“In 2018, industry generated a production value of 32 thousand billion forints (EUR 96 billion), which is one and a half times the 2010 figure. During the first 7 months of this year, this index stood at 20 trillion forints (EUR 60 billion), a year-on-year increase of 8 percent, and almost as much as the figure for the whole of 2010”, he stated. According to the Minister, the automotive industry, which employs 176 thousand people in Hungary, is playing a leading role in this growth.

“The goods processed here are competitive, marketable and high quality, even against the toughest competition”, he stated. Mr. Szijjártó noted that despite forecasts relating to a slowdown of the global economy, the performance of the Hungarian automotive industry increased by 13 percent between 1 January and the end of July this year, and by the end of the year is expected to exceed 9 thousand billion forints (EUR 27 billion), which will be the highest figure ever recorded.

Mayor of Mezőkövesd Zoltán Fekete (Fidesz-KDNP) spoke about the fact that Kovács Ltd. provides work to 470 people, and is one of the settlement’s largest enterprises. He expressed his joy with relation to the fact that local companies are regularly announcing new development projects, thanks to which the city’s business tax revenues have been increasing continuously since 2015.

(Ministry of Foreign Affairs and Trade/MTI)