Mercedes-Benz is beginning construction of its new car plant in Kecskemét; the project is being realised with an investment of one billion euros and will create over 2500 new jobs.
According to plan, production at the new facility will begin in 2020.
Prior to the laying of the digital foundation stone of the new factory, which will be constructed next to Mercedes’ existing car plant, Minister of Foreign Affairs and Trade Péter Szijjártó said on site: “An investment project that represents an extremely high level of technology and which will produce extremely high added value is being realised in Kecskemét”. “Six thousand German companies operating in Hungary today provide jobs for 300 thousand Hungarians”, he added. “One quarter of the total foreign working capital invested in Hungary is linked to German enterprises and their investment decisions”, the Minister said.
Mr. Szijjártó said that in his opinion the realisation of the new factory is a historic moment not only in the life of Kecskemét and Hungary, but also in that of Daimler AG.
The Minister also spoke about the fact that according to the latest survey by the German-Hungarian Chamber of Commerce and Industry, 84 percent of the German enterprises operating here would choose Hungary again as their investment destination. “63 major German investments, including Daimler’s, have arrived in Hungary since 2014, generating an investment value of 3.6 billion euros”, he added.
He also mentioned that extremely rapid changes are ongoing that are having a highly deep effect on the global economy and on global trade, which are to all intents and purposes rewriting the rules that determine the activities of individual countries and large international companies. “New alliances are being forged, old ones are disintegrating and a few trade wars are also on the horizon, which it would be better to avoid, however”, he said.
“The global economy is entering a totally new era, the innovative industrial era, and the flagship of the transition is the automotive industry”, he explained. Mr. Szijjártó said that in Hungary 28.5 percent of industrial output is derived from the automotive industry, with over 176 thousand people currently working within this sector. Following last year’s record production value of over 8 trillion forints (EUR 25bn), the first three months of this year also indicate that “there is no slowing down”, in view of the fact that the Hungarian automotive industry has succeeded in increasing its production value even further, he said.
With relation to the new investment project, which is being realised with the help of 37.5 million euros in non-returnable state funding, the Minister said: It provides Hungarian enterprises, including Hungarian small and medium-sized enterprises, with the opportunity to become linked to global economic processes in view of the fact that following a figure of 30 percent in 2016, the ratio of the Hungarian suppliers working in partnership with the Mercedes plant in Kecskemet increased to 50 percent in 2017.
“Hungary has introduced the lowest level of taxes in Europe. In a manner that is unique in Europe, corporation tax in Hungary is in single digits and the burdens on employment are being continuously reduced, while tax allowances that facilitate workforce mobility have been introduced and cooperation between industry and education, and particularly higher education, is becoming increasingly close”, Mr. Szijjártó pointed out.
The Minister thanked the employees of the Mercedes plant in Kecskemét, which has been operating since 2012, for their performance, because as he explained, this is what provided the basis for the next investment. From among the other investment projects being realised in the region, Mr. Szijjártó mentioned the construction of the new A54 road between the M5 motorway and the factory. The Government has also earmarked 5 billion forints (EUR 15.7 million) for the development of the local airport, a new fire station is being built, and the electricity network is also being developed at a cost of 20 million forints, he added.
At the event, Managing Director of Mercedes-Benz Manufacturing Hungary Limited Christian Wolff said: “Kecskemét offered us a home, and we do indeed feel at home here”. This is also proven by the new investment, he added. This is a historic event in the relationship between Mercedes and Kecskemét, which has existed since 2009, and which is an industrial success story, he declared.
Mr. Wolff told the press that the two factories will look similar from the outside, but everything will be totally different on the inside. Production capacity will be significantly increased thanks to modern digital technologies, new workplaces will be created and there will also be many new tasks, he explained.
Mayor of Kecskemét Klaudia Pataki Szemereyné said the arrival of Mercedes had meant the beginning of a new era for the city. Kecskemét was thrust into the public gaze with the settlement of Mercedes, and had to face major challenges, but succeeded in conforming to the high expectations, she stressed.
The construction of the second Mercedes plant once again poses new challenges for the city in view of the fact that new transport development projects, homes, kindergartens and schools are required to ensure that Kecskemét’s retention power and attractiveness can be further increased, the Mayor added. “This time, however, the challenges are not accompanied by concerns in view of the fact that we already have sufficient experience and can rely on the support of the Government”, she added.
Member of the Board of Mercedes-Benz Cars for production and supply chain Markus Schäfer said that thanks to the one billion euro investment Mercedes-Benz will be establishing Hungary’s very first full-flex plant. Various models from compact cars to back wheel drive limousines and vehicles with various types of drives, including electric cars, will be able to be manufactured in the plant flexibly, using the same production line, he explained.
This will also lead to the further development of the Factory 56 production concept, and will mean the beginning of a new chapter in the history of Mercedes, he stated.
The new plant will be comprised of a pressing plant, a body plant, a surface treatment plant and an assembly plant, and will have a carbon dioxide-free electricity supply. Thanks to the full-flex plant, Mercedes-Benz Cars will be creating the capacity and technical conditions for the flexible production of the vehicles of the future, including electric vehicles that are capable of being self-driven.
(MTI)
