Sanmina will be developing its existing plant in Tatabánya by 2022 with an investment of 6.2 billion forints (EUR 19,5 million); the Government is contributing 1.2 billion forints (EUR 3.7 million) in non-returnable funding towards the project.
At the press conference in Budapest on Thursday to announce the investment by the American electronic equipment manufacturer, Minister of Foreign Affairs and Trade Péter Szijjártó justified the state contribution with the fact that the project will also create 220 high added value workplaces within the next few years. The Minister said the fact that yet another innovative automotive industry investment is being brought to Hungary by one of the world’s most important suppliers, which operates 75 plants in 25 countries and employs 47 thousand people, is another success story for the Hungarian economy.
The Minister stressed that together with the conditions for economic success, the conditions of economic competition have also completely transformed; investors are racing with each other to develop the latest technologies and countries are competing for enterprises that apply these stat-of-the-art technologies. “The Government needs to convince these enterprises to develop and use the latest technologies here, so that the result is also a success for Hungary”, he added. “What swayed Sanmina’s decision were the low burdens on employment, the modern training and education system and the flexible job market regulations, in addition to which Tatabánya’s heavy industry traditions also represent a foundation for a modern investment”, he explained.
Mr. Szijjártó welcomed the fact that Sanmina’s investment has reinforced the second position occupied by American investors, in view of the fact that the United States is Hungary’s most important export market outside the EU and the 1700 enterprise currently operating in Hungary provide jobs for 100 thousand people. “8 new major American investments were realised during the first six months of this year, creating 1250 new jobs”, he added.
According to the region’s Member of Parliament and former Mayor of Tatabánya János Bencsik (Fidesz), Sanmina’s operations in the city have refuted previous opinions according to which multinational companies come and go from country to country without making themselves a permanent home.
In addition, the company reinvests a significant proportion of its profits locally, he added. Furthermore, the company is no longer solely involved in assembly activities in Hungary, in view of the fact that the ratio of added value and professional expertise is continuously increasing at the Tatabánya plant, he indicated. The MP also welcomed the fact that Hungarian managers are also employed by the company, which has an international network.
Managing Director of Sanmina’s plant in Tatabánya Károly Hoffman told the press that the cost of the investment will primarily be spent on purchasing state-of-the-art production lines. Over the past 5 years Sanmina has invested over 7 billion forints (EUR 21.5 million) in Tatabánya, as a result of which the plant has become one of the company’s largest European production centres, he added.
On the 20th anniversary of it Hungarian operations in October of last year, California-based car electronics and telecommunications equipment manufacturer Sanmina-SCI announced that it will be increasing the number of staff employed at its Tatabánya plant by some 200, and will be installing new production lines.
In addition to the 40 thousand square metre plant, Sanmina also employs a further 30 people in its plant in the Alsózsolca Industrial park, which is involved in precision metalworking and the assembly of telecommunications switchboards and base stations. In 2016, the company, which was established in 1980, realised a global turnover of 6.5 billion dollars, increasing to almost 7 billion in the 2017-2018 business year.
(MTI)
