According to an expert interviewed by Index, it is not only important from the point of view of wages and job creation that various large multinational companies choose Hungary as the location for their latest investments. In a recent article, Máté Konkoly-Thege, managing director of Thege-Plastic Kft., spoke about the importance of foreign companies’ investments in Hungary, their positive effects, the human resources available in Hungary and the acquisition of innovation.
“Without the foreign-owned, mainly multinational companies, there would probably be little presence of innovation: a factor of great importance for the industry,” the managing director said.
According to the expert, optimisation processes are inevitable and have an impact on the operation of new factories: he believes that this is how internal innovation is somehow developed in the life of an organisation.
He stressed that Hungary could no longer be called a mere assembly plant, as the employees of foreign companies operating in Hungary generate multiple added value points in terms of innovation.
The article also mentions the car factories that have been present in Hungary for years, even decades, and BMW’s plant in Debrecen, with a special emphasis on the battery assembly plant, announced at the end of last year, which will bring the total investment to HUF 800 billion instead of the HUF 400 billion originally planned.
The article also points out that the take-up of electric vehicles is undeniable, a process that will also lead to increased demand for electric batteries.
“This is also important because a number of companies – in the plastics industry – have also begun talks to locate next to the BMW plant and supply their products to meet the expected increase in demand. All these effects will be reflected in the growing number of jobs, GDP growth and the momentum of the Hungarian economy”, the expert said.
The importance of these automotive investments is reflected in the added value of labour, and their presence is also important in terms of wages, as “wages and other benefits paid by foreign-owned companies with subsidiaries in Hungary are roughly double those of domestic companies.”
The article also stated that it has long been worthwhile for foreign firms to outsource development, logistics or engineering work to external companies because the wages in these areas are more favourable in Hungary, and Hungarian professionals are reliable and highly skilled.
