“International Flavours & Fragrances (IFF) is moving its global financial service centre to Budapest”, Minister of Foreign Affairs and Trade Péter Szijjártó announced at a press conference in Budapest on Tuesday.
Mr. Szijjártó announced that IFF will be receiving 4 thousand euros in training subsidies per head towards the investment project.
“The Budapest service centre, which will provide the full financial coordination for the New York-based corporation, is expected to employ over 100 people”, he added. The Minister also pointed out that Hungary had once again won the investment amidst stiff international competition, in view for the fact that IFF is present in 37 countries worldwide. He said the fact that Hungary is one of the most attractive investment opportunities even in international comparison, and Budapest is a popular destination for international service centres, may be attributed to, amongst others, Hungary’s continuous economic growth and favourable tax environment.
“Through employing highly-trained workers and generating high added value, service centres contribute to the transformation of the production-based economy”, he stated. Mr. Szijjártó welcomed the fact that 15 percent of all foreign investment in Hungary comes from the United States, adding that he expects economic relations to improve even further.
“Last year, 15 major American investments arrived in Hungary following negotiations with the Government, and talks are currently ongoing with relation to another 16 investment opportunities”, he stated.
At the press conference, IFF Executive Vice President and Chief Financial Officer Rich O’Leary told reporters that the company is planning on remaining in Hungary in the long term in view of the fact that it has found a cost-effective and business-friendly environment in Budapest.
The highly-developed infrastructure and highly-trained workforce were also taken into account during the course of the decision, he added.
The planned number of employees is expected to be hired by the end of this year, and the company’s existing Hungarian centre, which currently employs 50 people, will begin searching for new recruits this month, he explained.
János Bácskai, Mayor of Budapest’s Ferencváros district, which will be hosting the new service centre, said that it was amongst other thanks to investments on the part of international companies that the district has been able to transform from being an industrial centre to a hub for service centres in recent years.
“A host of global corporations employ thousands of people in the district, and the local government is confident that in addition to services, research & development activities will also find a home in Ferencváros”, he added.
(MTI)