“Sanofi is expanding its plant in Miskolc with an investment of over 7 billion forints (EUR 19.5 million) and 1.2 billion forints (EUR 3.35 million) in government funding”, Minister of Foreign Affairs and Trade Péter Szijjártó announced at a press conference to launch the investment in Budapest on Thursday.

The Minister said the company will be significantly increasing its production capacity by almost 50 percent with the help of the government funding. The new production line will be capable of manufacturing up to 90 thousand syringes-an-hour. Sanofi will be marketing 95 percent of its products in 65 countries worldwide from spring 2022, he added.
Mr. Szijjártó said it was a lucky situation that in addition to Hungarian pharmaceutical factories with long and illustrious histories, large international corporations are also producing, providing a living for some 25 thousand employees. “Sanofi has been the Government’s strategic partner since 2013, and the years that have passed since then have confirmed the reasons behind the agreement”, he stated.

“The pharmaceutical industry has gained even more importance since the appearance of the coronavirus pandemic, in view of the fact that everyone is waiting for a vaccine”, he added. In addition to the significance of effective protection, Mr. Szijjártó also highlighted the economic advantages. “In Hungary, pharmaceutical companies spend the most on research compared to their turnover, the pharmaceuticals produced in Hungary are shipped to 129 countries worldwide, and annual exports now exceed 5.5 billion euros, which is double the 2010 value. Sanofi possesses a particularly high share of exports in view of the fact that it boasts the 15th highest export performance of all Hungarian enterprises”, the Minister emphasised.

CEO of Sanofi Hungary Tamás Rónay told reporters that the investment will result in the establishment of one of Europe’s most modern syringe plants. “However, the plant is already playing a significant role within the company thanks to the fact that some 24 billion forints (EUR 67 million) have been spent on it over the past thirty years. The company’s long-term commitment to Hungary is also underlined by the fact that every one of the company group’s strategic activities is present in Hungary, including active substance production, chemical research, and the production of medical equipment”, he added.

The region’s Member of Parliament György Hubay (Fidesz) welcomed the fact that the government has recognised the opportunities inherent in the pharmaceutical industry, and regards Sanofi as a strategic partner. “The company plays an important role in the lives of the people of Miskolc in view of the fact that the local plant provides a living for 400 local employees” he emphasised.

Sanofi operates five facilities in Hungary and employs over 2 thousand people. The company’s plants can be found in the Csányik Valley in Miskolc, in Újpest and in Veresegyház. In 2018, Sanofi-Aventis Hungary Zrt. achieved after-tax profits of 4.6 billion forints (EUR 12.8 million), followed by 5.9 billion (EUR 16.5 million) in 2019. Some two thirds of the company’s 200 billion forints (EUR 557.5 million) in turnover was generated by foreign sales. The enterprise’s French parent company appeared in Hungary following the 1989 regime change. In 1991, it acquired a 40 percent share of Hungary’s historic Chinoin pharmaceutical plant, which was increased to 98 percent in 1998.

(Ministry of Foreign Affairs and Trade/MTI)