Last year’s Government decision which elevated partnership between the Government and large companies operating in Hungary to a new level was right, Mihály Varga stated at the ceremony for signing a Strategic Partnership Agreement between Scheider Electric and the Government of Hungary at the French company’s logistics centre in Szigetszentmiklós.
Speaking on the occasion of the signing of the agreement on developing production, extending services as well as boosting innovation and R&D activities, the Minister for National Economy stressed that the agreements concluded thus far have been beneficial for all participating parties.
The 36 large companies who became the Government’s strategic partners have recently implemented investment projects worth some HUF 650bn and created 5500 new jobs, Mihály Varga added.
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He emphasised that large companies aiming to increase capacities in Hungary, employees, small and medium-sized enterprises acting as suppliers as well as the Government have gained by the partnership agreements. The latter profited from these as the economy has grown, the employment increased and competitiveness improved, the Minister explained.
“I am certain that those who cannot comprehend the advantages offered by closer cooperation with large international companies are not capable of recognizing the Hungarian economy’s best interest,” Mihály Varga added.
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He underlined that large international companies operating in Hungary produce 25 percent of gross value added, 27 percent of investment and 70 percent of exports.
It is important and also in line with the Government’s objectives that these large companies play an outstanding role with regard to domestic research, development and innovation, he said. Innovation, he added, is the driver of employment and economic growth, therefore it is a welcome sign that Scheider Electric intends to engage Hungarian tertiary education institutions and research centres in R&D&I activities.
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In the opinion of the Minister for National Economy, the fact that the ratio of R&D&I spending as percentage of GDP was recently 1.3 percent, the highest figure in 20 years, which the Government aims to increase to 1.8 percent until 2020 proves the commitment of the Government to knowledge and innovation-based economic development.
Mihály Varga said that in order to utilize available EU and domestic innovation funds as efficiently as possible, from the beginning of next year the Ministry for National Economy will decide about the allocation of resources. Accordingly, the Government projects that within the next seven years 30 large companies with a global reach will settle their R&D centres or strengthen the existing ones in Hungary.
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The Minister welcomed the fact the Scheider Electric also plans to centralize the corporation’s development activities in Hungary which would boost Hungary’s economic growth that far exceeded prior analyst estimates in the third quarter.
Speaking about the partnership agreement concluded with Scheider Electric the Minister underlined that the Hungarian Government considers French investors to be important partners, as France is the fourth among countries with investment in Hungary, which totals some EUR 10bn, and the 300 France-based companies employ 52 thousand people.
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CEO of Scheider Electric Hungary Ltd József Spilkó stressed that at the logistics facility in Szigetszentmiklós, which serves 18 countries, they currently store goods valued at some HUF 27 million, but the company is continuously expanding capacities also outside Pest County: they are planning to increase capacities by 10 percent and significantly boost employment over the coming years. They also undertake to provide further education for employees as well as bolster and extend existing relations with tertiary education institutions.
Executive Vice President of Operations Julio Rodriguez said, among others, that the Szigetszentmiklós facility is expected to soon become the third largest logistics centre in Europe.
(Ministry for National Economy)
