Hungary’s vehicle manufacturing industry produced some EUR 18bn last year, which amount constitutes 18 percent of total Hungarian manufacturing industry output, 10 percent of Hungary’s GDP and 18 percent of total Hungarian exports, Minister for National Economy Mihály Varga said at the ceremony for presenting the “Award for Successful Enterprises”, the first such event this year.
Mihály Varga pointed out that winners of this month’s “Investor of the Month”, “SME of the Month” and “Start-up of the Month” awards were related to vehicle manufacturing. They are Hankook Tire, a company which has picked Hungary as the location for its first factory outside Asia where more than 12 million tires are produced each year; Magyarmet Finomöntöde Bt, an enterprise with annual turnover of some HUF 3bn and 200 employees; and Now Technologies Ltd., the developer, among others, of an innovative wheelchair controller module.
The Minister stressed that over the past year there was a positive U-turn not only in the Hungarian economy as whole, but also within the vehicle manufacturing sector. In September, October and November 2013 vehicle manufacturing output was up by 27 percent, 28 percent and 21 percent year-on-year, respectively, while for the entire year of 2013 the sector’s performance improved by 20 percent. Mihály Varga stated the fact that currently there are 700 vehicle manufacturers in the country shows how crucial these companies are for Hungary.
The Minister added that in November 2012 the Government of Hungary concluded a Strategic Partnership Agreement with Hankook Tire, winner of the “Investor of the Month” award in January 2014. In the history of Hankook Tire the year 2013 was another milestone as a decision was made to launch a development project of EUR 313 million (HUF 97bn) in Rácalmás. This new production hall is expected to create 950 new jobs. As a result of the new investment project, each year 17 million tires will be produced at the new facility which is planned to be completed in summer 2014 and reach full capacity production by 2015. With this project, Hankook’s investment in Hungary totals more than EUR 880 million. The company nowadays has more than 2600 employees in the country.
The “SME of the Month”, Magyarmet Finomöntöde Bt, has been a manufacturing sector supplier for castings products, with annual turnover of some HUF 3bn and clients such as market-leading component maker Knorr-Bremse. The company exports more than 85 percent of its products.
Awardee of the “Start-up of the Month”, Now Technologies, researches and develops such innovative therapeutical and medical appliances and equipment with which users may increase their quality of life and healthcare workers and professionals may obtain intelligent devices.
(Ministry for National Economy)
