Japanese automotive components manufacturer Denso will carry out a 29 billion forint capacity expansion at its plant in Székesfehérvár in central Hungary, President of Denso Hungary Jiro Ebihara said on Tuesday at a joint press conference with Prime Minister Viktor Orbán.
The Prime Minister called the long-term thinking of Denso exemplary and praised the investment affected by the firm, which will create 500 jobs.
This event proves that the company’s decision 17 years ago to place its manufacturing unit in Székesfehérvár, Hungary, was a wise one. The Government also granted nearly HUF 2 billion in funding for the investment project, Mr. Ebihara said.
Prime Minister Orbán said that we should look upon the future with high hopes rather than with fear – this is the essence of Hungarian economic policy, this is the goal. He emphasised that the success of Denso is also the success of the Hungarian people and the success of Hungary.
During his visit to Japan last November, Viktor Orbán signed a comprehensive agreement with his Japanese counterpart, in which they recorded that it is in the interests of both countries to expand Japanese investments in Hungary. The Prime Minister recalled that when the Hungarian economy collapsed in 1990, the Japanese companies were among the firsts to come and invest, developing the economy at the same time. This special friendly relationship lives on, and Hungary has always given respect and assured the necessary conditions to the Japanese companies operating here. Viktor Orbán said "we agree with the Japanese in that if someone wants to be successful in the future, the job and family have to be respected, these values should be in the focus, because these are the principles that will make any country successful in the upcoming period."
The Prime Minister informed the director of Denso about Hungary’s well-defined industry policy: while the average share of industry in GDP is 15% within the EU, it is 23% in Hungary. During the next 4 years, the Government’s goal is to increase this ratio to 25-26%, which would result in turning Hungary into the most industrialised country in Europe. The next goal for the country is to turn Hungary into an R&D hub, to accommodate more modern technology.
Regarding Denso, Prime Minister Orbán said that the company is an outstanding partner to Hungarian SMEs. The factory in Székesfehérvár has 18 local suppliers, providing jobs to some 5,000 people. He underlined that the most important reason for Denso's expansion was not the support provided by the Hungarian Government, but the workers of the company, who were doing an extraordinary job at the factory and were capable of realising the world-renowned Japanese level of technology with Japanese punctuality, precision and discipline.
Denso, the world's second largest automotive components manufacturer, has invested 500 million euros in Hungary since setting up its manufacturing unit in 1998. It supplies parts to all four car manufacturers operating in Hungary.
(Prime Minister’s Office)
