“The production value of the Hungarian automotive industry increased by six percent during the first half of 2018 compared to the similar period last year”, Minister of Foreign Affairs and Trade Péter Szijjártó said at the inauguration of Qualitative Production (QP) Plc’s new six thousand square metre production hall in Győr on Friday afternoon.

The Minister of Foreign Affairs and Trade explained that the production value of the Hungarian automotive industry had already reached 4.5 trillion forints (EUR 13.8bn) by the end of June this year, while the value for the whole of last year was 8 trillion forints (24.4bn), and all-time record. The automotive industry provides 29.3 percent of the total performance of the processing industry and currently employs over 167 thousand people, he added.

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As he explained: “The modern industrial revolution is being led by the automotive industry”, and according to the world’s leading automotive industry companies it is worth investing in Hungary. This is indicated by the fact that Audi recently began manufacturing of e-motors in Győr, Mercedes has begun construction of its second plant in Kecskemét, Peugeot is manufacturing motors for its new models in Szentgotthárd, BMW will be constructing a new plant near Debrecen, and the new track and facilities for testing self-driven vehicles is being built near Zalaegerszeg, Mr. Szijjártó explained.

“The winners of these investments are Hungarian small and medium-sized enterprises”, the Minister added. QP’s new production hall, constructed at a cost of 6.2 billion forints (EUR 19 million) and state funding of 1.5 billion forints (EUR 4.6 million) based on an individual government decision, indicates that “this should be the final step in ensuring that QP becomes Audi’s first tier supplier of cylinder heads”, he explained.

QP is a Hungarian family-owned manufacturer of cylinder heads and engine blocks, which was established 25 years ago. Thanks to its latest investment it will be doubling its annual production capacity, enabling the company to manufacture some 500 thousand cylinder heads-a-year and become the strategic supplier of Mexican-owned Nemak Győr Limited.

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Mr. Szijjártó also spoke about the fact that Győr provides excellent economic opportunities for companies wishing to invest here.

Owner and CEO of QP Ferenc Bogisich spoke about the fact that the company’s third production hall uses a robotic production line, and this latest investment on the part of the company is creating some 120 new jobs. The production cells were imported from Japan, and full production capacity will be achieved by the end of next year.

Member of Parliament for the region Róbert Balázs Simon spoke about the fact that Hungary’s latest strength lies in its high quality workforce, and the production hall, which was realised as a greenfield investment, is a historic moment in the life of the 25-year-old Hungarian-owned company.

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Mayor of Győr Zsolt Borkai said QP is not only creating jobs, but is realising investments that are about innovation and technological development.

QP began life 25 years ago with ten employees, but currently provides jobs to some two hundred people. According to publically available company data, last year the company achieved an annual turnover of 2 billion 455 million forints (EUR 7.5 million), around 180 million forints less than in the previous year, while posting profits of 97 million forints. The company realised 267 million forints in turnover from exports.

(Cabinet Office of the Prime Minister/MTI)