“The 8 billion-forint (EUR 55.5 million) production capacity and product portfolio-increasing investment by Serbian-owned paper manufacturing company Drenik Hungary Ltd. in Szolnok will create 110 new jobs”, Minister of Foreign Affairs and Trade Péter Szijjártó announced in Szolnok on Thursday.

“The Government is providing 360 million forints (EUR 1.1 million) in non-returnable cash funding towards the project”, Mr. Szijjártó told reporters.

“The plant’s production capacity will double thanks to the investment”, he added.

“In addition, following the investment the company will also begin shipping its products to Romania, Slovakia and other countries in the region”, he stated.

“The investment is contributing to the further increase in the production value of the Hungarian paper industry, which grew by 11 percent to over 526 billion forints (EUR 1.62bn) last year, and by a further 15 percent year-on-year during the first two months of this year.

“In February 2019, the number of people employed by the sector showed a year-on-year increase of over 20 percent to 16,500”, he added.

Mr. Szijjártó also spoke about the fact that the investment will further tighten Hungary’s alliance with Serbia, with whom he said they had successfully established a never-before-seen good relationship.

“Hungarian-Serbian trade and business relations are continuing to increase, and last year bilateral trade flow between Hungary and Serbia exceeded 2.5 billion euros breaking all previous records, within which Hungarian exports exceeded 1.6 billion euros”, the Minister pointed out.

The Minister said one of the main foundations for Hungary’s success is provided by county capitals.

“Szolnok is an example of this, where Swiss-based rail vehicle company Stadler received planning permission last year, Béres Pharmaceuticals’ new building was inaugurated in 2018, and Spanish company Segura is launching a capacity expansion investment that conforms to the challenges posed by Industry 4.0”, he said.

“Three of the most important conditions for investment are given in Hungary: we have the lowest rate of taxes in the European Union, we can provide a highly-trained workforce, and our infrastructure is achieving an increasingly high level of development. It is most welcome that the M4 motorway will reach Cegléd by the end of 2019. The M4 will link Budapest to Abony by the autumn of next year and Törökszentmiklós by the end of 2021”, he added.

The politician said that it is also thanks to the investments realised in Szolnok that the Hungarian economy achieved an outstanding level of growth in 2018; the rate of increase of the GDP was 5 percent.

“The country’s 4.5 million people in employment provide the Hungarian economy with a high level of stability. 820 thousand new jobs have been created in Hungary over a period of nine years, and the increase in employment is ‘far from over’, as also indicated by the investment projects being realised in Szolnok”, he declared.

(MTI)