“The Eastern Opening policy is not only facilitating the increased foreign market presence of Hungarian products and services, but also the Hungarian investments of well-capitalised Asian companies”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Friday in Budapest at a press conference to announce a new investment by the Indian SRF Group.
The Minister stressed that the ongoing changes to the global economy and global trade are increasing the importance of the Eastern Opening policy, because a high proportion of the innovations that are determining the digital revolution come from the East. “Accordingly, these days capital is no longer only flowing from West to East, but well-capitalised Asian enterprises are increasingly often acquiring western companies and their market share”, he added.
Mr. Szijjártó highlighted the importance of Hungary’s attractive investment environment in winning investment projects from the East, adding that it was also thanks to this that Hungary was able to win the race for SRF’s investment amid stiff international competition. “Amongst others, the flexible labour market, low tax burdens, dual training programmes and the successes of the Indian companies already operating in Hungary such as Apollo Tyres and the Tata Group, also contribute to this success”, he added.
SRF will be constructing its first facility in Europe, which will employ 100 people and cost 18 billion forints (EUR 56 million), in the town of Jászfényszaru, which is also home to plants owned by Samsung and ThyssenKrupp. “The Government is facilitating the establishment of the new plant with 1.13 billion forints (EUR 3.5 million) in non-returnable funding, and is currently also in negotiations with relation to 4 other Indian investments”, the Minister said. He highlighted the fact that the new plant in Jászfényszaru will be manufacturing packaging materials for the food industry, meaning it will be reinforcing one of Hungary’s most innovative production sectors, in addition to contributing to the performance of the chemical industry, which employs over 95 thousand people and generated a production value of 5300 billion forints (EUR 16.4bn) last year. “It will also serve to improve economic relations, thanks to which the trade flow between Hungary and India achieved an increase of over 17 percent last year, exceeding 666 million dollars”, he added.
Mayor of Jászfényszaru Márta Czeglédi Győriné (independent) welcomed the fact that SRF regards Hungary as the gateway to Europe and is further strengthening the settlement’s industrial zone, adding that the local government will be applying all possible instruments to support the company’s local education and training activities.
Managing Director of the SRF Group Asis Bharatram announced that production of packaging materials on the 15 hectare facility will begin in 2019 using state-of-the-art technology. Mr. Bharatram explained that he expects the construction of the Hungarian production facility to make SRF the world’s largest producer of packaging film and bring the company closer to its European clients, whom it will be able to serve more rapidly and efficiently as a result. “The choice of location was facilitated by the fact that the Hungarian Government reacted promptly to the company’s expression of interest and created transparent conditions for the realisation of the project”, he added.
The Managing Director told the press that the company, which is primarily involved in the chemical industry, has been manufacturing technical textiles, plastics and packaging materials for 50 years, performs significant research and development activities, and in addition to generating profits also regards social responsibility as extremely important. The India-based SRF Group operates 15 plants worldwide employing 6300 people, and distributes its packaging materials in almost 100 countries.
(MTI)
