“Lidl will be constructing a new logistics centre in Hungary; the government is providing 1.2 billion forints (EUR 3.39 million) in non-returnable investment promotion funding towards the 35 billion-forint (EUR 98.8 million) investment project”, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Tuesday in Budapest.

“Hungary has won the first phase of healthcare protection against the coronavirus, and this success must be maintained, while also concentrating on the next phase of economic protection”, he highlighted. “Those who take action in a timely manner can be the winners of the new global economic era, and countries in which enterprises invest now can achieve a long-term competitive advantage”, he emphasised. The Minister said that in view of this it is particularly important that in the midst of the current international economic difficulties, Lidl has decided to realise its next major investment project in Hungary.

Mr. Szijjártó also drew attention to the fact that the company will be creating 400 new workplaces at its logistics centre. Chairman of the Board of Lidl Hungary Jenő Grósz told reporters that the new facility in the Pest County town of Ecser will be the company’s fourth logistics centre in Hungary, and according to plan the 62-thousand-square-metre centre, which is much larger than the company’s existing warehouse units, will be ready by November 2021.

“News reports concerning the global economy are currently usually about redundancies, bankruptcies or the closing of factories, and not about investments. Hungary is now an exception, but this required a lot of hard work”, the Foreign Minister said. As he explained, it is a particularly positive indication if a large international company gives Hungary its vote of confidence. “These companies, including Lidl, for instance, are present at many locations around the world and have operational experience and information from a host of places, and accordingly their decision is based on real experience and a true evaluation of the situation”, he stated. “Lidl operates some 11 thousand stores in 26 countries, and realised a turnover of over 80 billion euros in the previous financial year”, he added.

Mr. Szijjártó recalled that 377 billion forints (EUR 1.06 billion) in investment is being realised in Hungary thanks to the competitiveness-increasing program. “If we add the 35-billion-forint (EUR 98.8 million) investment being realised by Lidl, then over 400 billion forints (EUR 1.13 billion) in investment will be appearing in the Hungarian economy over the coming months”, he noted. The Minister also highlighted the fact that the further increase in Lidl’s capacity and turnover will open up new opportunities for Hungarian agricultural enterprises, farmers and food producers.

Chairman of the Board of Lidl Hungary Jenő Grósz told the press that the supermarket chain appeared in Hungary in 2004, and 16 years later it operates 183 stores and three logistics centres, and is now the second largest retail chain in the country with respect to annual turnover. The company employs over 7000 people, making it the sixteenth largest employer of Hungarians in Hungary.

Mr. Grósz highlighted the program launched by the company in 2013 for Hungarian suppliers. As he explained, Lidl’s aim with the program is to support the development and international competitiveness of Hungarian farmers and the Hungarian economy. The company currently operates with 490 Hungarian suppliers and the ratio of Hungarian goods in Lidl supermarkets is almost 60 percent. With relation to the export of Hungarian products, he said that Lidl distributes some 30 percent of total Hungarian bottled wine exports, making the company the country’s largest wine exporter.

The region’s Member of Parliament Lajos Szűcs (Fidesz) said the latest logistics investment is particularly important. As he explained, the new warehouse centre will not decrease the liveability of the settlement in view of the fact that road traffic to and from the logistics centre will not be passing through the town, but it will be creating jobs for people living in the area, in addition to which the increase in local business tax will facilitate the development of the municipality.

According to the information provided by Lidl Hungary Bt., the company realised a gross turnover of 685 billion forints (EUR 1.933 billion) in the business year from March 2019 to February 2020.

(Ministry of Foreign Affairs and Trade/MTI)