HUF 5 Billion Factory Expansion at Nemak Győr Kft

Mexican-owned Nemak Győr Ltd, a manufacturer of cylinder heads and engine blocks, is to create 100 new jobs with a HUF 5 billion (EUR 17.8 million) expansion project in Győr, to which the Hungarian Government has provided a one-off subsidy of HUF 406 million, announced State Secretary of the Ministry of Foreign Affairs and Trade Péter Szijjártó at a press conference last week.

Mr. Szijjártó pointed out that the Hungary’s is to become the country with the highest share of industry within the GDP in the EU (Hungary is currently ranked third). To achieve this, it is important to ensure the development of suppliers to the four big car manufacturers in Hungary. Suppliers to the automotive industry bring world-class technology to Hungary, Mr. Szijjártó said.

He pointed out that the Government had to take a difficult decision in 2010 about the direction in which to steer the country. They opted for the path of reindustrialization, based on the belief that “Hungary can only be strong if it has a strong manufacturing sector”.

He noted that the tax, higher education and vocational education systems had needed reforming and a flexible labour law system had also been introduced to facilitate that goal. He pointed out that the economy had grown by 3.5% in the first quarter of 2014 and investments had risen by 2.6%.