Siemens expanding its gas and steam turbine blade plant at its Power and Gas plant facility in Budapest with an investment of some 10 billion for tins (EUR 32.5M).

At the foundation stone laying ceremony, Minister of Foreign Affairs and Trade Péter Szijjártó stressed that Siemens had chosen Hungary as the site for its latest state-of-the-art technology investment, and the company’s investment of 10 billion forints will serve to expand its current production area by 2500 square metres and construct a new 10 thousand square metre production hall, with which it will create 150 new jobs for technicians.

DownloadPhoto: Zoltán Máthé/MTI

“The significance of the investment is increased by the fact that the world’s energy industry is changing, with both renewable energy sources and nuclear energy gaining in importance. Siemens of one of the global leaders in realising power plant projects of this nature, and the company’s investment in Budapest means Hungary will now be among the world’s frontrunners in yet another sector of industry”, the minister said.

Mr. Szijjártó stressed that the investment was a joint step towards moving the Hungarian economy and Hungarian industry forwards into a new dimension, a digital era based on research & development and innovation.

“There is huge competition between the world’s international corporations with relation to technological development, and countries are competing for the research, development and innovation-based investment of large corporations that represent the flagships in the transition to the new industrial era, and which create better paid workplaces and represent higher added value”, the Minister highlighted.

DownloadPhoto: Zoltán Máthé/MTI“Hungary has offered these corporations an alliance, within the framework of which the Hungarian Government has created one of Europe’s most favourable investment environments. Hungary has the lowest level of corporation tax in European comparison, we have the lowest, flat rate of personal income tax, we offer tax benefits for research & development and the burdens on employers are being continuously reduced”, Mr. Szijjártó pointed out.

“The recent investment decisions of several large international companies prove that it was the right decision to offer up such an alliance”, the Minister declared.

“Both Germany and Siemens are Hungary’s strategic partners, and the German company employs 3 thousand people in Hungary. The Budapest investment further reinforces Hungarian-German economic relations, and according to figures for the first quarter of this year, last year’s record level of trade flow between the two countries has been successfully surpassed by a further 10 percent”, Mr. Szijjártó highlighted.

At the ceremony, President and CEO of Siemens Cls. Dale A. Martin highlighted the fact that continuity, innovation and expertise play and important role in the company’s success in Hungary.

DownloadPhoto: Zoltán Máthé/MTI50 Hungarian colleagues are currently studying in the Siemens plant in Berlin so they can become in involved in the high quality task of manufacturing turbine blades, and they will soon be joined by another 9 staff, he told reporters.

Chief Financial Officer of the Siemens Power and Gas plant in Budapest, Árpád Goszták, said the realisation of the new facilities had been entrusted to Hungarian contractors because they had submitted the most favourable offer during tendering.

According to information provided by Siemens Cls., production of the new products at the Power and Gas plant in Budapest will begin in 2019.