At the foundation stone laying ceremony of Samvardhana Motherson Group’s (SMG) new factory said Minister of Foreign Affairs and Trade Péter Szijjártó said that the performance of the automotive industry increased by 17 per cent in the first nine months of the year, and its production value amounted to HUF 6,000 billion.
At the ceremony in Kecskemét, the Minister emphasised that more than 30 per cent of the Hungarian manufacturing sector output comes from the automotive industry and more than 140,000 people work in this sector.
Mr. Szijjártó announced that as part of the HUF 31 billion investment, a 96 thousand square meters bumpers manufacturing plant will be built and 450 new jobs will be created. The Government of Hungary supported the investment with HUF 7.7 billion and declared it as priority investment for the national economy.
The Minister stressed that 2015 has been a successful year for Hungarian-Indian economic cooperation, given the fact that SMR’s investment was the third significant Indian investment announced this year.
Mr. Szijjártó said that the Hungarian economic policy is successful: in the framework of the new tax system, in 2016 the personal income tax will decrease to 15 per cent and the administrative burdens will also be reduced by HUF 10 billion.
From the recent economy enhancing actions the Minister highlighted the fact that in order to increase Hungary’s competitiveness, the Government has doubled research and development spending, which will thus reach HUF 700 billion by the end of the 2014–2020 EU budgetary period. Also, development of transport investments will be speeded up and broadband Internet will be available in the whole country by 2018. Furthermore, in order ensure appropriate supply of labour force and suppliers, new support facilities will be introduced in the field of vocal training.
Mr. Szijjártó also mentioned that from 1 January on certain parts of investments related to practical trainings will become deductible, and companies will also have the possibility to decrease their training contributions and to receive additional support for the maintenance of vocational workshops.