“Hungary could play a leading role in automotive industry innovation thanks to the fact that ThyssenKrupp is making a long-term commitment to Hungary”, Minister of Foreign Affairs and Trade Péter Szijjártó stressed following the signing of a strategic partnership agreement between the Government and ThyssenKrupp Presta Limited.

Mr. Szijjártó highlighted the fact that ThyssenKrupp is the world’s number one developer of electric steering systems. The German concern operates 497 subsidiaries in 77 countries and is a front runner within the field of automotive industry digitalization and development.

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“The signing of the 72nd strategic partnership agreement means that the worlds largest steel producer and car, machine and construction industry part manufacturer has become a strategic partner of Hungary”, the Foreign Minister told reporters.

Managing Director of ThyssenKrupp Presta Hungary Ltd. Marc de Bastos Eckstein said: “The concern operates seven subsidiaries in Hungary employing some 1000 people and achieved 500 million euros in turnover last year”.

Mr. Szijjártó explained that automatization, electro-mobility and digitalization have reached a level that was previously unimaginable. “The successful companies will be those that are the fastest in development and the application of innovation, while the successful countries will be those that can attract as many enterprises of this kind as possible”, he said.

On the subject of the strategic partnership agreements concluded by the Government, the Minister said that the Government’s 72 strategic partners provide employment to some 165 thousand people in Hungary and these companies have created some 13600 new jobs since signing the agreements, 1325 of which are in the field of research & development.

“The strategic partners have realised a total of 10,065 billion forints (EUR 32.4bn) in investments in Hungary and invested an additional 1595 billion forints (EUR 5.13bn) after concluding partnership agreements with the Government”, he told reporters.

Mr. Szijjártó highlighted the fact that ThyssenKrupp is in the process of realising a 30 billion forint greenfield investment project, which will create 500 new jobs, and operates a development centre in Budapest, where the new electric steering systems are developed.

DownloadPhoto: Szilárd Koszticsák/MTI

The Minister said that competition in the global economy is becoming increasingly tough and accordingly newer and newer instruments must be applied to attract investors to Hungary.

Among measures introduced to improve competitiveness, Mr. Szijjártó mentioned the new tax regulations which will come into effect in January according to which enterprises can deduct twice as much from their tax base as they spend on research and development.

“Also coming into force on 1 January is a new budget financing opportunity according to which the Government may award non-refundable funding for research development investment projects in Budapest within the framework of individual Government decrees”, he said.

Mr. Szijjártó also pointed out that the upcoming decrease in corporation tax and employer contributions are also measures that are designed to increase competitiveness, and which “will make Hungary the country with the best investment environment in Europe”.