Hungary will remain European bastion of the automotive industry, says ministerStaff Writer | March 9, 2018
"This latest investment also assures that Hungary will remain the European bastion of the automotive industry, despite major competition for investment on the continent and throughout the world."
Auto industry Minister of Foreign Affairs and Trade Péter Szijjártó:
Mr. Szijjártó highlighted the fact that thanks to the new project, U.S. company Arconic will be manufacturing half a million more allow wheels and creating a minimum of 200 new jobs, noting that the Hungarian Government is providing a development tax allowance to aid the investment project, which equates to 8.3 billion forints (EUR 26.4 million) in savings for the company.
CEO of Arconic Chip Blankenship stressed that since the company began its Hungarian operations in 1993 it has invested over 550 million dollars and currently employs 2300 people.
According to the Minister, the tax allowance is a “good deal for all of Hungary” in view of the fact that analysts are expecting a 70 percent increase in demand on the alloy wheel market by 2022, and the increase in capacity of the plant could result in a 100 million dollar increase in revenues.
Mr. Szijjártó pointed out that Arconic is a global market-leading supplier for the aviation and automotive industries, the economic performance of which has become a determining factor for the whole Hungarian national economy.
28.6 percent of the total output of Hungarian industry is derived from the automotive industry, which achieved a record-breaking production value of 8038 billion forints (EUR 25.6bn) last year, he added.
The Minister reported on similar developments within the Hungarian metallurgical industry: the sector grew by 19 percent last year and achieved a production value of almost 2300 billion forints (EUR 7.3bn). Some 120 thousand people are employed within the sector in Hungary, and 60 percent of the goods produced are exported, he noted.
Mr. Szijjártó also spoke about the fact that American enterprises are the second largest investors in Hungary after Germany.
The 1700 American companies currently operating in Hungary provide jobs to 100 thousand people and significantly contribute to enable the growth of the Hungarian economy to remain in the 4 percent range, he added.
Chip Blankenship told reporters that the company’s new plant is contributing significantly to the production of the highest quality alloy wheels, and indicated that the number of people employed at the plant will increase to a total of 700 before the expansion of the facility is completed in 2019. ■