“German company ThyssenKrupp Springs and Stabilizers will be constructing a new factory in Debrecen with an investment of 35 million euros and the creation of 250 new jobs”, Managing Director of ThyssenKrupp Presta Hungary Ltd. Marc de Bastos Eckstein announced at a press conference in Budapest on Friday.
“The investment is a sign of our confidence in Hungary and the Hungarian workforce, and the decision will determine the future of the company in Hungary for years to come”, he added. “The ThyssenKrupp Group employs over 1000 people in Hungary, and in addition to the automobile industry it is also present in the elevator technology sector and together with Ferroglobus is also involved in the steel trade”, the Managing Director told reporters.
“The company has also been operating a software development centre for steering transmissions in Budapest with over 500 research engineers since 1999, where research is also being performed on self-driven cars”, he continued.
At the press conference, Minister of Foreign Affairs and Trade Péter Szijjártó said that the Government would be contributing 3.8 billion forints in cash funding towards the roughly 11 billion forint investment. “ThyssenKrupp will be manufacturing the world’s most modern parts, springs and stabilisers in Debrecen, which are used by the world’s largest car manufacturers”, he added.
According to the Hungarian Foreign Minister, investments such as this are required to enable Hungary to remain an engine of development in the new, development-orientated era. “Hungary can succeed in remaining successful if it can develop strategic alliances with companies who are the frontrunners of the new industrial era, including ThyssenKrupp, which is one of the world’s frontrunners within the fields of self-driven cars and electromobility”, he explained.
CEO of ThyssenKrupp Springs and Stabilizers Matthias Koll said that mass production would begin in 2018 and 6.5 million coil springs and stabilizers will be manufactured in Debrecen every year. “In addition to Debrecen being a County capital, the choice of location was also inspired by the city’s central geographical location, the excellent infrastructure, the good supplier structure, the highly trained workforce and the outstanding educational institutions”, he explained.
Head of the Fidesz Parliamentary Group, Lajos Kósa MP said that the investment by ThyssenKrupp is proof of the fact that Hungary’s economic policies are predictable and that the representation of Hungarian interests is consistent. “Hungary is only prepared to take part in mutually favourable cooperation; the era of ‘one-sided deals’ ended in 2010”, he declared.
According to publically available company data, ThyssenKrupp Presta Hungary Ltd. achieved 50.1 billion forints in revenues and 1.2 billion forints in after tax profits in the business year ending on 30 September 2015, following 31.2 billion forints in turnover and 31.6 million forints in profits in the previous year.
In reply to a question from reporters concerning the Paks Nuclear Power Plant expansion project, Mr. Szijjártó said that the Government regarded the previously concluded agreement as definitive; “It is a good loan”, he added. “We would only change this if a loan opportunity arose on the money markets that provided better conditions overall”, he noted, adding that in this case the Government would consider the possibility of switching loans, which is possible.
In reply to another question on the possibility of 100 percent financing, Mr. Szijjártó said that the Government had no plans to move in this direction with regard to the existing loan agreement.
Replying to another question form the press, the Hungarian Foreign Minister also said that with relation to Hungarian airline Malév there is a solution in development that could be acceptable to both the Hungarian Government and Russia’s Vnesheconombank; only technical issues remain to be agreed upon, and he would like to see the issue concluded no later than April.
(MTI)
