Krones AG is launching a project worth almost HUF 15 billion in Debrecen, and the Government has provided a non-repayable grant of HUF 5.5 billion for the operation of the new plant which will create some 500 jobs in the next few years, Minister of Foreign Affairs and Trade Péter Szijjártó said.
The Minister stressed: Hungary has achieved a major result in the international competition for investments by virtue of the fact that the company which manufactures packaging and bottling equipment is building a new plant in Debrecen.
He added that Krones AG is the third large German investor this year at the Hajdú-Bihar County seat, and this is an achievement of the investment-friendly policy of the city and the Government among others. He highlighted that 63 investment talks had been successfully concluded with foreign investors so far this year, while last year there were 71 successful negotiations. Consequently, in light of the pro rata figure, a new investment record may be achieved in Hungary in 2017.
The Minister mentioned among investment-friendly measures the significance of the uniquely low corporation tax rate by European standards, fiscal discipline which permitted the reduction of taxes and the low unemployment rate which has fallen to one third since 2010. He added that the Hungarian model is a successful response to the challenges in the world economy and has proved that it is possible to reduce debts and to create jobs at the same time.
Mr Szijjártó said that the investment of Krones AG will further strengthen economic relations between the two countries. He highlighted that the products of the German company are used by the most advanced food industry businesses, the company’s annual sales revenues almost reach EUR 3.4 billion, they have spent more than EUR 170 million on research and development, they employ more than 14 thousand people world-wide, and the company has more than 5 thousand patents. He added that the 6 thousand German businesses present in Hungary have created 300 thousand jobs, and according to a survey, three quarters of investors would invest in Hungary repeatedly.
László Papp, Mayor of Debrecen stated that the Government’s development goals had been achieved at the county seat and in Eastern Hungary in the past three years, thanks to a coordinated and conscious economic policy. A new industrial revolution has started in the city, and 4 thousand jobs have come into being.
He reiterated that in the World Bank’s regional survey, Debrecen came first among 22 Eastern-European cities thanks, inter alia, to the state of its infrastructure and the speed of licensing procedures.
The Mayor said that they had transformed the city’s secondary and tertiary training programmes in a way that allows them to satisfy the work force needs of investors as, for instance, Krones AG wishes to employ highly trained vocational workers and development engineers.
Ralf Goldbrunner, a member of the Executive Board of Krones AG described the construction of the new plant as a major milestone as, he said, they also wish to reinforce their production on an international level. He added that in the stringent selection process, the favourable logistic features, the excellent infrastructure and the availability of highly trained experts were the considerations in favour of Debrecen.
The company’s representative said that they will manufacture machine industry parts and other equipment parts in the plant, while they will also carry out engineering work. They offer their workers first-class working conditions and competitive salaries. He added that Krones AG is a market leader in the field of the packaging of liquid foodstuffs and beverages, and every fourth glass bottle or PET bottle in the world is manufactured by machines made by them.
The German company supplied machinery to the Szentkirályi mineral water plant in 2007, to the Sárbogárd plant in 2008, to the Piliscsév mineral water bottling facility in 2010, and to the Szikszó plant of Hell in 2011.