Austrian Kronospan completes €5.1 million capacity expansion in Hungary

The minister of foreign affairs and trade said in Mohács, in southern Hungary, on Monday that ensuring that all Hungarians benefit from the success of the government’s investment strategy and its positive impact in the form of new jobs, stable livelihoods, and developing infrastructure is an important goal of Hungary’s government.

Péter Szijjártó addressed the inauguration of an over 2 billion forint (EUR 5.1m) capacity expansion project of Austrian Kronospan’s wood-based panel manufacturing plant.

According to a foreign ministry statement, Szijjártó said the Hungarian state has contributed 286 million forints to the project.

He said the new equipment would increase the plant’s capacity to an annual 240,000 cubic meters. The plant in Mohács purchases more than 50 percent of its basic materials from Hungarian producers and sells 90 percent of its products in export markets, Szijjártó added.

The minister said that amid difficulties and changes in the world economy in the past years, Hungary had maintained its stability and remained an attractive country in the international competition for investments.

“This recent investment will largely contribute to the development of Hungary’ wood industry which employs 14,000 people and records a close to 500 billion forint volume of production. Its exports is well over 50 percent which is a proof of its competitiveness,” Szijjártó said.

Austria is Hungary’s fourth largest trading partner, he said, adding that there were more than 2,300 Austrian-owned businesses operating in Hungary which employ some 75,000 people.

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