“Through their investment projects, the enterprises that are taking part in the competitiveness-increasing funding program are already preparing for the new global economic era, as corroborated by the fact that all three companies that were presented with their funding certificates on Wednesday have undertaken to increase their capacities, apply new technology and expand their product lines, and to appear on new markets with their products”, Minister of Foreign Affairs and Trade Péter Szijjártó said at a press conference in Budapest on Wednesday.

Mr. Szijjártó added that 806 enterprises have submitted applications within the framework of the competitiveness-increasing funding program, undertaking to realise a total of 377 billion forints (EUR 1.09 billion) in investments. 143,618 workplaces are been successfully protected thanks to the development projects, towards which the government has contributed a total of 178.5 billion forints (EUR 516.4 million) in funding.

He highlighted that the vast majority of applicants, 627, are Hungarian-owned, which according to the Minister means that “a strong, Hungarian private sector has been established, which is capable of being shock-resistant even in the most difficult times”. Following the Hungarian enterprises, the largest number of applications arrived from German and Austrian-owned companies.

Mr. Szijjártó evaluated the 377 billion forints in investment that will be realised over the coming months as a minor miracle because, as he explained, “amid the current global economic circumstances, there are very few national economies that can calculate with a similar total volume of development projects in the upcoming period”. “Both global politics and the global economy are transforming, and nothing will be like it was before the coronavirus epidemic. As a result, the Hungarian national economy, and within it Hungarian enterprises, will have to stand their ground in a totally new global economic competition”, the Minister said.

According to Mr. Szijjártó, 10 years ago Hungary already had to face similar challenges, but at the time the economy was in an almost totally weakened state. Now, however, as a result of 10 years of effort, the Hungarian economy has become one of Europe’s most competitive economies, which at the end of 2019 was able to boast the highest rate of economic growth in Europe and the highest rate of employment since the 1989 regime change.
Mr. Szijjártó said the government would continue to practice a work-based economic policy, and as part of that will protect jobs and create as many new workplaces as are ruined by the coronavirus epidemic. “However, this requires investment projects, and this is why the government decided to exploit the new EU regulations and provide 800 thousand euros in funding towards investment projects realised by enterprises that undertake to preserve their existing workplaces”, he explained. On Wednesday, three more company directors were presented with funding certificates at the Ministry of Foreign Affairs and Trade.

Honsa Parts Trading Limited’s 564.81-million-forint (EUR 1.63 million) investment project is receiving 282.4 million forints (EUR 817 thousand) in state funding. Parafix Hungária Limited’s 577.35-million-forint (EUR 1.67 million) investment project can count on receiving 287.27 million forints (EUR 831 thousand) in state funding. The Hungarian State will be contributing 262.91 million forints (EUR 760 thousand) towards the 525.82-million-forint (EUR 1.52 million) investment being realised by Simon Plastics Limited.
Managing Director of Honsa Ltd. Andreas Koller said the automotive industry supplier has been operating in Pécs for over 20 years. Thanks to the investment, the company will be able to manufacture products that have a higher added value, in addition to which it will also be able to increase its product range and market share.

Director of Parafix Hungária Dávid Krasznay said the company has been manufacturing adhesive technology solutions in Hungary for 17 years, primarily for automotive industry enterprises. The company began constructing its second plant in Ercsi in 2017, and will be able to fully complete the project thanks to the funding it is now receiving. In addition, the company has also undertaken to keep on its 80 existing employees and the some 80 subcontractors it operates with, and to increase the number of staff it employs.

Managing Director of Simon Plastics Ltd. Péter Simon said the company, which operates in Fejér County, primarily manufactures automotive industry parts, and in its application the company has undertaken to increase its capacities and efficiency.

(Ministry of Foreign Affairs and Trade/MTI)