HUF 5 Billion Factory Expansion at Nemak Győr Kft

Mexican-owned Nemak Győr Ltd, a manufacturer of cylinder heads and engine blocks, is to create 100 new jobs with a HUF 5 billion (EUR 17.8 million) expansion project in Győr, to which the Hungarian Government has provided a one-off subsidy of HUF 406 million, announced State Secretary of the Ministry of Foreign Affairs and Trade Péter Szijjártó at a press conference last week.

Mr. Szijjártó pointed out that the Hungary’s is to become the country with the highest share of industry within the GDP in the EU (Hungary is currently ranked third). To achieve this, it is important to ensure the development of suppliers to the four big car manufacturers in Hungary. Suppliers to the automotive industry bring world-class technology to Hungary, Mr. Szijjártó said.

He pointed out that the Government had to take a difficult decision in 2010 about the direction in which to steer the country. They opted for the path of reindustrialization, based on the belief that “Hungary can only be strong if it has a strong manufacturing sector”.

He noted that the tax, higher education and vocational education systems had needed reforming and a flexible labour law system had also been introduced to facilitate that goal. He pointed out that the economy had grown by 3.5% in the first quarter of 2014 and investments had risen by 2.6%.

Mr. Szijjártó announced that the Government wishes to conclude a strategic cooperation agreement with Nemak Győr Ltd.

Managing Director of Nemak Győr Ltd Mr. David Toth said that the project, which is focussed on improving infrastructure and equipment at the thermal treatment plant, is going to allow the company to increase staffing levels to 898 employees by the end of 2016.

He noted that the Nemak Group is the world’s largest independent manufacturer of cylinder heads and engine blocks for the automotive industry. It has 34 plants and supplies components to 48 carmakers, including Audi, BMW, Opel and Renault.

According to the official press release about the event, the realisation of the HUF 5.6 billion will begin next year and be completed in 2017.

In February, David Toth told Hungarian news agency MTI that Nemak Győr Limited had posted revenues of EUR 150 million in 2013, an increase of over 10% compared to 2012. As a result, the company is back on the expansion trajectory it had been experiencing prior to the 2008 financial crisis. The revenue target for this year is EUR 165 million.

Ministry of Foreign Affairs and Trade

Photo: MTI – Peter Nyikos

Source: http://kormany.hu/