Prime Minister's Speech at MOL's New Butadiene Extraction Plant in Tiszaújváros

October 16, 2013 11:42 AM

Prime Minister's Speech at the Foundation Stone Laying Ceremony of MOL's New Butadiene Extraction Plant in Tiszaújváros. 16 October 2013.

Good Afternoon, Ladies and Gentlemen!

A warm welcome to the directors of the MOL Group, the managers of the plant and to the workers employed here. Thank you for coming. I never would have imagined that butadiene could be capable of attracting such media attention. I also never imagined, in 2010, that three years later we would be opening a new factory every week in Hungary. This means that the reindustrialisation of Hungary is making good progress. The foundation stone laying ceremony of MOL's new butadiene extraction plant fits nicely into the series [of similar plant inaugurations and development project launches. Ed.] with which we have been painting an increasingly clear picture of Hungary's ambitions over the past weeks and months. We, Hungarians, have set out no lesser goal than to establish a strong, national industry with the help of which we may once again achieve an economic performance that puts us in a leading position within the region.

Ladies and Gentlemen!

MOL is one of the flagships of this strong, national industry. We are proud of it, we value it, and if needed, we will protect it. The Hungarian state is MOL's largest shareholder. To us, this means that the largest slice of this company is in fact in the hands of the Hungarian people. And shareholders in Hungary, as they do throughout the world, like to see and know what is happening with their money and where their money is being invested.

Ladies and Gentlemen!

There is no cause for concern. Today, we are laying the foundation stone for a plant here in Tiszaújváros, which is being realised within the framework of a 30 billion forint, world class development project. The development project realised here is one that will preserve and strengthen Hungary's economic position within Europe for many years to come. As we have just heard from Zsolt Hernádi [President and CEO of MOL, Ed.], the 1,3-butadiene produced in Tiszaújváros is the most important raw material in rubber production, and as we have heard, it will later be used by tyre manufacturing companies. This means that MOL will soon become a partner to the tyre manufacturing companies operating in Hungary. One of the important strategic goals of our economic policy since 2010 is that development projects realised in Hungary using foreign working capital, such as the tyre manufacturers, should not be established as independent islands but are instead incorporated into the national economy and with the development of industrial contacts. To achieve this requires that we facilitate the linking of Hungarian enterprises into the supply chain. What we see here today is an example of just that. The butadiene plant will improve the Hungarian activities and profitability of TVK, and through it of Hungary's largest taxpayer, MOL, in addition to which it will create new jobs. And not just any kind of job! Because, although it is undoubtedly true, as we have heard Roland Mengyi [President of the Borsod-Abaúj-Zemplén County General Assembly. Ed.] speak of a little earlier, that today the situation is still such that we in Hungary must be glad of any new workplaces, but we also know that there can be significant differences between workplace and workplace. Research and development workplaces that are filled by highly educated, excellent Hungarian professionals who speak foreign languages are especially valuable to us, because there is huge competition in Europe for skilled professionals of this kind. We are working, and this is also an important part of our strategic cooperation agreements, to ensure that more and more development projects are realised in Hungary that provide workplaces for recently graduated Hungarian skilled workers and engineers.

Ladies and Gentlemen!

The developing new world order, of which we Hungarians may become winners, can only provide us with favourable opportunities if we ourselves realise that a new economic world order is under development. We can only be successful if, instead of drifting with the flow and instead of the compulsive adaptation that is often so characteristic of Hungarians, we take our destiny into our own hands. It is in this spirit that in recent years we have put the country' finances in order to save us from hitting our heads on the debt ceiling, have reduced government debt, have kept and are keeping the budget deficit low and have developed an attractive investment environment. We have introduced a tax system that supports enterprise and rewards work. Everything that is happening now, and that is a result of the 2010 elections, can be summarised by the fact that we have introduced a national economic policy that is built on work. I think we are making good progress, because as we have just heard from President Roland Mengyi, and this is not only true here, in this county, but it is true throughout the country: the number of people in employment in Hungary has been increasing continuously over the past three years. Instead of a social benefit-based society, we are building a work-based society. This, however, required that we first help the Hungarian economy to find its footing, and on both feet. One of the legs of the Hungarian economy is represented by the strategic cooperation agreements we have concluded with large, international companies. In these, we have set down on paper that we will develop mutually advantageous and long-term cooperation. It is clearly visible what each party has undertaken and what they expect from each other. Thousands of jobs are proof of the fact that this idea is a good one. The other leg, however, the other leg of the Hungarian economy is represented by the continuous strengthening of Hungarian national capital. It is important to support small and medium-sized enterprises, and I doubt anyone would argue with that in Hungary today, but it is also important for Hungary to have a significant number of large, international companies in European comparison, and that these large, international companies operate in sectors in which we have a history, in which we have professional knowledge, and in which we have a clear vision of the future.

Ladies and Gentlemen!

The energy sector in Hungary is just such a sector. This sector has excellent traditions and has become one of the most successful areas within the Hungarian economy. If we think back in history, we were one of the first in Europe to begin research and development, and at the time is seemed that we could even be the market leader within the region. But then came a change in world politics and there followed a period in which Hungary was closed off and isolated from this global market. But Hungary's energy professionals were successful even then and were able to retain their national prestige. And later they were able to prove not only that they were experts in their field, but they also used their expertise to preserve this sector, which is one of the most important within the economy, for Hungary. It is thanks to them, to these professionals, that MOL was able to stay afloat after the regime change; I'm sure you remember how many Hungarian companies went under, but MOL was able to stay afloat, it has since gained strength, and today it provides work for 12 thousand people.

Ladies and Gentlemen!

Not even the recent economic crisis could dissuade MOL from developing and expanding; nothing could prevent it from becoming the determinative international company in Central Europe it is today. All this could not have been achieved had the people of Hungary not had sufficient talent and expertise, and been sufficiently committed.

Ladies and Gentlemen!

It is the duty of the Hungarian Government to protect the workplaces of the Hungarian people and to take part in the creation of the conditions for further successes. Accordingly, when we became the largest shareholder in MOL -- you all remember the adventure story of how this came about -- then to us this meant not only an economic relationship, but also a strong, national and emotional bond. This bond does not permit us to ever abandon MOL and the 12 thousand people who work here. If someone from at home or abroad questions their merits, then we, the Hungarian Government, will never fail to react. This, however, also means that those who forge an alliance with MOL are also establishing a strong alliance that is destined for success with Hungary and the people of Hungary.

Dear Mr. President and CEO, Ladies and Gentlemen!

I wish the whole MOL group, all of its companies and subsidiaries and all of its employees similar success in the future.

Thank you for your kind attention.