The Hungarian Investment and Trade Agency (HITA) and the Hungarian Tire Association (HTA) expressed their wish to tighten cooperation by signing an agreement on Friday in Budapest.

Péter Szijjártó, Deputy Minister of Foreign Affairs and Trade emphasized in relation to the agreement that large-scale developments in the Hungarian tire industry give boost to Hungarian automotive manufacturing and Hungarian exports.

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He added that last year the Hungarian tire industry managed to increase its production by 6 percent, sales amounted to HUF 380 billion and they employ 5,000 people directly and 15,000 people indirectly in Hungary.
Matej Zavrl, President of the HTA emphasized that the cooperation opens up a new opportunity for making further efforts to accomplish their goals.
Péter Szijjártó reminded that the Hungarian Government adopted a strategic decision in 2010 in order to transform Hungary into the production centre of Europe. This objective has become reality by now, and Hungary is actually one of the production centres of Europe, but it required significant structural changes, said Mr Szijjártó.

He pointed out that by transforming the tax system the Government supports those people who want to work more, while the changes implemented in higher education reinforce the training of engineers. Introduction of the dual vocational training ensures the availability of proper workforce and the Labour Code was also transformed to provide more flexibility.

Mr Szijjártó emphasized that the automotive industry plays an important role in the Hungarian economy, considering that the 712 automotive enterprises operating in the country employ over 112,000 people, the output of the automotive industry represents 19.4 percent of the performance of the processing industry, its annual production value amounted to EUR 18.3 billion, i.e. about HUF 5,433 billion and has a share of 18 percent in the Hungarian exports, therefore, the Government pays special attention to the development of automotive industry suppliers.

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The Deputy Minister reminded that the Government concluded strategic agreements with three of the seven tire companies operating in Hungary – with Continental, Hankook and Bridgestone -, and the agreement just signed will affect the entire industry.

Matej Zavrl, President of the HTA told the press that the Hungarian Tire Association was established in 2011, it comprises of the seven large international manufacturers and distributors operating in the Hungarian market, and the organization is member of the European association.
The President of the HTA regarded it important that legal requirements increasing safety through the use of proper tires shall be introduced in Hungary.

(Ministry of Foreign Affairs and Trade)