Edelmann Hungary Packaging Plc., a subsidiary of the German Edelmann Group, is expanding the capacity of its packaging material production facility in Zalaegerszeg with an investment of 3.15 billion forints (EUR 9 million).
At the press conference held to announce the investment in Budapest on Monday, Minister of Foreign Affairs and Trade Péter Szijjártó told reporters that the Government is contributing 786.9 million forints (EUR 2.24 million) in funding towards the investment project, which will create one hundred new jobs.
New machinery, including printing and gluing machines, will be put into commission and the company will be able to expand its range of products as a result of the development project”, Managing Director of Edelmann’s Hungarian subsidiary, György Czirkl told the press.
Mr. Szijjártó explained that Edelmann purchased the Zala County printing works in 2010, which later expanded to become the existing packaging materials plant that is now one of the Group’s 16 global factories, and the new project will make the factory the Group’s second largest worldwide. The Zalaegerszeg plant manufactures packaging materials for, amongst others, market leading companies operating within the pharmaceutical industry, the food industry and the hygiene sector. By the end of October this year, the company’s turnover had already exceeded the figure for the whole of last year, and over 30 percent of the products manufactured in Zalaegerszeg are exported, which indicates the plant’s international competitiveness, mr. Szijjártó told reporters.
The Government has awarded the maximum possible level of regional funding, 25 percent, in view of the fact that the development of Southwest Hungary is one of the focal points of Hungarian economic strategy. Edelmann’s investment project in Zalaegerszeg is fully in harmony with Hungarian economic strategy, according to which the added value of workplaces is now more important that the number of workplaces created. The valuable new machinery being added to the plant will lead to a significant increase in output, in addition to enabling a significant improvement in technology, the Minister said.
The Hungarian Foreign Minister also spoke about the fact that there are over 6000 German companies operating in Hungary, producing jobs for over 300 thousand people. “It is good news from the perspective of maintaining the growth trajectory of the Hungarian economy that the German companies operating here have confidence in Hungary. According to a fresh study by the German-Hungarian Chamber of Commerce and Industry, over two thirds of the German companies operating in Hungary regard the business environment as good, which is the highest ratio since 2005. 56 percent of respondents indicated that they would like to expand their existing investment, which 61 percent said they plan on increasing their staff”, the Minister recalled.
Mr. Szijjártó also said that Germany is Hungary’s most important economic partner. “22 percent of foreign trade is realised with Germany, and following last year’s record figures, German-Hungarian trade flow increased by a further 9 percent during the first eight months of this year”, he said adding: “This provides an excellent foundation for enabling total Hungarian exports to exceed 100 billion euros by the end of this year”. According to the minister, the newly announced investment also takes us one step closer to breaking last year’s record of 71 major foreign investment projects. “German enterprises are playing a major role in this, and 28 percent of the foreign working capital currently present in Hungary is derived from Germany”, Mr. Szijjártó indicated, adding that negotiations are currently underway with relation to 24 planned investment projects on the part of German-owned companies.
At the press conference, Member of Parliament László Vigh said that 3100 new jobs had been created in Zalaegerszeg during the past three years, and that while seven years ago the level of unemployment in the city was 12.7 percent, it has since fallen to just 2.7 percent. Around a thousand people are currently looking for work, while the number of available workplaces is 1500, he added.
The MP also reported on the fact that the City has adopted an 18-point package of programmes within the framework of which in 2018 worker accommodation will be built, building plots will be offered at preferential prices and interest subsidies will be provided at a total cost of 600 million forints (EUR 1.7 million). This is also required in view of the fact that construction work has begun on the 42 billion forint (EUR 120 million) test track for electric and self-driven cars. According to plan, the first stage will be completed by next spring, and three tyre manufacturers have already indicated that they would like to test their tyres there. 20-30 companies would like to open facilities on the neighbouring 200 hectare site, and if this is realised then the city’s current 4 billion forint in local company tax revenues will increase significantly. With regard to transport development projects, Mr. Vigh highlighted the contrition of the new dual carriageway that will directly connect Zalaegerszeg to the nearest motorway at ta total cost of 176 billion forints (EUR 500 million).