The new production facility of the car industry supplier – an automotive leather manufacturer -- with its headquarters in the United States will increase the output capacity of the company’s Hungarian subsidiary by 55 percent and add 200 new jobs.

Minister for National Economy Mihály Varga emphasized at the inauguration ceremony that forty out of the fifty largest American multinational companies have representations in Hungary and the investments and development projects of these enterprises have created more than 40 thousand new jobs over the past ten years.

The Minister stressed that the investment and development objectives of Ottawa match the Government’s economic policy goals in several aspects, as these create jobs and provide a living for hundreds of families.

Mihály Varga also expressed hope that the current investment project will increase the number of domestic suppliers and environmental protection will continue to be a priority for the enterprise.

The Minister for National Economy informed the press that Ottawa exports 100 percent of its products to several continents, and this sector has a key role to play in Hungary’s economic recovery.

General Manager of Eagle Ottawa Hungary Bryn Kahrl said that the value of the development project for enlarging their production site is HUF 2bn, and the number of full-time employees will thereby increase from the current 800 to above 1000.

He recalled that Eagle Ottawa Hungary opened its first leather cutting facility in Szolnok in 2001, and the company was the first to move to the Szolnok industrial park in 2005, with a new tanning facility. Since 2009, Szolnok has also hosted the company’s European R&D center. The premium category vehicles manufactured by, among others, BMW, Daimler-Benz, Ford, Nissan, Hyundai/Kia, Renault and Toyota are fitted with leather products manufactured in the city.

Mayor of Szolnok Ferenc Szalay (Fidesz) spoke about the one-time debate within the local government over the usefulness and viability of an industrial park in the city. Fortunately, he added, the right decision was made, because the importance of to what extent the municipality can profit from it is second to the significance of the number of jobs created.

Szolnok’s local government approved the sale of a 5.8-hectare building site to Eagle Ottawa for the construction of a 5500sqm production facility. The price of the deal, brokered with the help of commercial banks, has not been revealed yet; it will be made public after the purchase contract has been signed.

(Ministry for National Economy)