SPA Profiles Ltd. is constructing a new pressing plant in Székesfehérvár; the 6.8 billion forints (EUR 22.2 million) investment by one of the world’s leading automotive industry suppliers will create 120 new jobs”, Minister of Foreign Affairs and Trade Péter Szijjártó announced at a press conference in Budapest on Wednesday.
“The Government has provided 1.15 billion forints (EUR 3.75 million) in cash funding towards the investment by the Norwegian-owned company, with which it is facilitating the further development of electric car production in Hungary”, he highlighted.
“The city was chosen among stiff regional competition for the site of the plant, where SAPA will be manufacturing high added value machine aluminium parts and shock-proof alloys for next generation electric vehicles.
The new pressing plant represents state-of-the-art technology, and will open a new chapter in the company’s Hungarian activities”, the Minister told the press.
Mr. Szijjártó also told reporters that SAPA is a direct supplier to large car manufacturers such as Audi, jaguar, Aston martin and Porsche, and generated an annual turnover of some 6 billion euros. It employs over 22 thousand people worldwide, with 1500 employees in Hungary.
“The international competitiveness of the company’s activities in Hungary so far have left no question mark; 89 percent of the Székesfehérvár plant’s production goes to export. This latest investment will also increase the performance of Hungarian exports”, Mr. Szijjártó underlined.
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The Minister also spoke about the fact that new technologies are being introduced during the course of the radical transformation of the global economy, and this transformation is being spearheaded by the sectors of industry, including the automotive industry, that serve as a backbone of the Hungarian economy. “The production value of the automotive industry was 4127 billion forints (EUR 13.5bn) during the first six months of the year, and there is a good chance that it will exceed the current record of 8 billion forints by the end of the year. Growth is well-indicated by the fact that the number of people employed in the industry increased by 11 percent to 168 thousand over the course of six months. 92 percent of the sector’s production goes to export, which indicated Hungary’s level of competitiveness”, the Minister of Foreign Affairs and Trade listed.
“The success of the Hungarian automotive industry also required the introduction of the lowest levels of personal income tax and corporation tax in Europe, the budgetary funding of research & development-based investment projects, and the beginning of construction work on the test track in Zalaegerszeg”, he added.
Managing Director Frank Iepema thanked the Government for its contribution towards the project, telling reporters: “Our first Hungarian plant was established over 10 years ago, the focus of which has shifted gradually from volume to value. Parallel with the development of the automotive industry, demand for aluminium products has increased significantly in recent years”.
According to Mayor of Székesfehérvár András Cser-Palkovics, the Government has created a favourable tax and legal environment for similar investment, which is extremely important for the city in view of the fact that cooperation with the company has been favourable for many years, and the latest investment means the arrival of 21st century technology in the city. “The company is also a front-runner with regard to social responsibility: it sponsored our ice hockey team and is funding dual and vocational training”, he said.
According to the SAPA website, with its five aluminium pressing production lines, many types of surface treatment technologies and over 200 pieces of heavy machining equipment, the plant in Székesfehérvár is one of Europe’s largest extrusion plants. SAPA provides innovative aluminium solutions to several sectors of industry, including the construction industry, infrastructure, passenger and goods transport, and energy industries, in addition to the automotive industry. Over 50 percent of its production occurs using recycled aluminium. SAPA AS is a joint venture owned in 50-50 percent proportions by Norwegian companies Norsk Hydro ASA and Orkla ASA, and its 22800 employees are active in some 40 countries.
(Cabinet Office of the Prime Minister/MTI)
