“In the unfavourable economic situation caused by the coronavirus epidemic, the government is funding enterprises that are capable of creating jobs, not financing unemployment”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Wednesday in Győr.
At an event to announce the construction of a new warehouse for the storage of lithium batteries by Innovative Warehouse Logistics Limited, the Minister highlighted the fact that the virus is on the one hand attacking people’s health, but is also endangering workplaces, and accordingly the government has opened two fronts in its efforts to protect against the virus. “One is healthcare protection, the first phase of which we have won, and the other is economic protection, which we will also win”, Mr. Szijjártó said, adding that within the framework of economic protection the state is paying half the investment volume of enterprises that commit themselves to retaining their employees, because it is the Hungarian people that make the Hungarian economy successful. “806 enterprises from 30 different sectors have announced investment projects to date at a total value of 377 billion forints (EUR 1.08 billion), towards which the government is providing 169 billion forints (EUR 483.7 million) in state funding. These enterprises are protecting 143,618 workplaces as a result of these investment projects. 33 enterprises from Győr-Sopron County have submitted applications for funding at a total value of 15 billion forints (EUR 42.9 million), towards which the government is providing 7.2 billion forints (EUR 20.6 million) in funding. They are protecting some 4300 jobs via these investment projects”, the Minister of Foreign Affairs and Trade listed. Innovative Warehouse Logistics Ltd. is realising an investment of 670 million forints (EUR 1.92 million), towards which the state is providing 282 million forints (EUR 807 thousand) in funding.
With relation to the investment project being realised by the Hungarian, family-owned medium-sized enterprise, Mr. Szijjártó said the company will be constructing a high warehouse on an area of two thousand square metres that will be suitable for the storage of lithium batteries. “These lithium batteries are used in electric vehicles, and accordingly this part is an essential element of the new automotive industry era”, he said, adding that thirty percent of Hungary’s processing industry output comes from the automotive industry, and the Hungarian government is making a major effort to ensure that Hungary, where the world’s largest electric battery plants are being built, also remains one of the flagships of the European automotive industry in the age of electromobility. “The investment project being realised by Innovative Warehouse Logistics Ltd., which is unique throughout Europe, is also facilitating this goal”, he stated.
The Minister also mentioned that many applications for funding have also arrived from the within the field of logistics, warehousing and freight transport, which indicates that Hungary “is finally exploiting the opportunity” that is afforded by its geographical location. “Because from a logistics perspective, we are in the best location in Europe”, he declared.
The region’s Member of Parliament Róbert Balázs Simon (Fidesz) highlighted the fact that the investment project being realised by Innovative Warehouse Logistics Ltd. represents a major investment at Győr’s International Industrial Park, where hundreds of enterprises from 13 countries currently employ seven thousand people. Managing Director of Innovative Warehouse Logistics Ltd. Tamás Lipovics said the company currently employs 157 people at six facilities in Győr, on total floor space of 25 thousand square metres. According to publicly available company data, the company realised 1.08 billion forints (EUR 3.09 million) in turnover last year, 620.9 million (EUR 1.78 million) more than in 2018. The company’s profits also increased by 61.8 million forints (EUR 177 thousand) to 182.5 million forints (EUR 522 thousand).
(Ministry of Foreign Affairs and Trade/MTI)
