The Hungarian Government has continued to develop its portfolio of strategic partnerships with the addition of Tungsram. The agreement was signed by Péter Szijjártó, Minister of Foreign Affairs and Trade, and Tungsram CEO Jorg Bauer on the 7th of January 2019
Tungsram’s future in Hungary was in question after GE Lighting announced (February 2018) it was to sell its European lighting branch to Bauer. According to Mister Szijjártó Magyar Eximbank has lent a “significant amount” to Tungstram to increase competitiveness and boost innovation of units in Hungary.
The government acted swiftly to secure the continued presence of Tungsram in Hungary, and by doing so helping to secure jobs (Tungstram employs 5000 people in Hungary). In addition, many subsidiary companies from across Europe and further afield have joined the Hungarian based center creating a Hungarian multinational enterprise.
There is no doubt that Strategic agreements are great for job creation however, long will the community benefit? Businesses benefiting from tax breaks and low-cost loans must be seen to be giving back to the communities in which they develop.
