“Linamar Hungary Cls. will be realising a 17.6 billion-forint (EUR 54 million) automotive industry investment in Békéscsaba”, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Wednesday in Budapest.
Mr. Szijjártó said that in view of the advanced technology, the outstanding added value and the 250 new jobs being created, the Government is providing 3.9 billion forints (EUR 12 million) in funding towards the project. “In the 10 thousand square metre new production hall, the Canadian-owned company will be manufacturing its self-designed electric power trains for Daimler’s new cars, which will be marketed in America and China”, he added. “Linamar provides 1500 Hungarian small and medium-sized businesses with orders, and has signed dual training agreements with the universities of Debrecen, Szeged and Miskolc, and its latest investment proves that Hungary has successfully transitioned to the new, automotive industry era”, Mr. Szijjártó emphasised.
“Through the drawing up of the Jedlik Ányos Plan, Hungary was the first in the region to introduce an electromobility programme, thanks to which it can also be traversed using electric vehicles, and the proliferation of such vehicles is being assisted by government funding”, he said. “The future of the global economy is being determined by the automotive industry, and the success of the Hungarian national economy depends on it being able to attract the investments of new manufacturers and developers” the Minister highlighted.
Tamás Herczeg, the region’s Member of Parliament, said he expects the recent road and rail developments to attract more and more companies. Highlighting the investments made by the printing a packaging industry, the agricultural processing industry and the machine industry, he stressed that Békés County is no longer an untapped area for investors. He called for the acceleration of cohesion, however, since the productivity of the region remains behind the national average, while its workforce reserves are still significant.
CEO of Linamar Hungary Cls. Csaba Havasi justified the new investment by the fact that the company is suffering from a lack of space in Hungary because of the expansion of the automotive industry. He explained that the company expects 127 billion forints (EUR 390 million) in increased turnover over a period of 6 years thanks to the investment, while hundreds of new workplaces could be created at the company’s various suppliers. “The Békéscsaba plant is Linamar’s third production centre and fourth factory in the region, and assures long-term competitiveness as an e-mobility base of operations”, he added.
The Canadian-based Linamar Corporation employs a total of 29 thousand people in 60 plants worldwide. Its Hungarian subsidiary, Linamar Hungary Cls. maintains 2699 workplaces. The company’s annual turnover has increased from 58 billion forints (EUR 179 million) to 602 billion forints (EUR 1.86bn ) since 1992, and it has invested over 34 billion forints (EUR 105 million) since 2010; it paid out almost 30 billion forints (EUR 93 million) to its suppliers last year, and exported 85.7 percent of its products.
(MTI/kormany.hu)
