“Jysk’s new headquarters in Hungary will create 300 workplaces, and as a result the investment project is contributing to the replacement of lost job opportunities in accordance with the government’s vision”, Minister of Foreign Affairs and Trade Péter Szijjártó declared at a press conference in Budapest on Tuesday.
The Minister told reporters that the Danish retail chain is constructing a regional distribution centre in the Pest County town of Ecser with an investment of 65 billion forints (EUR 184.5 million). The logistics centre, which will have 143 thousand square metres of warehouse space, will be supplying 7 countries with goods from 2022. The government has provided 3.6 billion forints (EUR 10.2 million) in funding towards the project. According to Mr. Szijjártó, the company made the decision concerning the construction of the new centre amidst a difficult situation, and this indicates that the company would like to continue to gain strength following the end of the global pandemic. “Hungary would also like to start the period following the pandemic from a favourable position, and job creation is the best solution to achieving this”, he added.
The Minister said he is calculating with long-term effects as a result of the coronavirus pandemic, stressing that as a result at least as many jobs must be created as were lost during the virus crisis. In addition to the promotion of job creation, Mr. Szijjártó promised strict fiscal discipline over the upcoming years.
Jysk opened its first store in Denmark in 1979. The company currently operates some 2800 stores in 52 countries, employing 23 thousand people. Jysk has been selling furniture and household furnishings in Hungary since 2005. According to a statement issued by the company, its annual turnover is close to 3.8 billion euros. Last year, the turnover of its Hungarian subsidiary approached 45.5 billion forints (EUR 129 million), following 42.3 billion forints (EUR 120 million) in the previous year. According to publicly available company data, its Hungarian subsidiary posted 5.24 billion forints (EUR 14.87 million) in after-tax profits in 2019, following 5.14 billion (EUR 14.58 million) in the previous year.
(Ministry of Foreign Affairs and Trade/MTI)