Lego invests in expansion in Hungary


The Danish toy manufacturer Lego will invest 53 billion forints (149.6 million euros) to expand its factory in Nyíregyháza, in north-eastern Hungary, Péter Szijjártó, the Minister of Foreign Affairs and Trade, mentionned Friday.

The government is supporting the investment, which will create 250 jobs, with a subsidy of 5.9 billion forints, Szijjártó said.

The investment will be the third largest in Hungary in 2021, and will result in the second largest Lego factory in the world, he added.

Related article

Brick by Brick: LEGO Factory Tour in Eastern Hungary

Brick by Brick: LEGO Factory Tour in Eastern Hungary

“It is not a sin to make a mistake! Christiansen’s personal leadership style encouraged workers to come up with their own ideas, even at the risk of making mistakes. The company’s Hungarian factory in Szabolcs-Szatmár-Bereg, […]continue reading

Investments from leading international companies prove that Hungary offers an excellent environment for high-quality production, Szijjártó said. The “Hungarian system” combines companies with advanced technology, the high performance of Hungarian workers, good infrastructure and a supportive economic policy, he said.

To maintain this environment, Hungary rejects criticism of a key element, its competitive tax system, Szijjártó added, referring to debates over an international corporate tax. Hungary wants to keep taxation in the hands of the state and keep the competitive advantage provided by low taxes, he said.

Related article

Global Unfair Corporate Tax Proposal for Eastern Europe

Global Unfair Corporate Tax Proposal for Eastern Europe

The Biden administration recently announced that it wanted to implement a 21% global corporation tax. The reasoning behind this is that multinational companies are increasingly taking advantage of tax havens around the world to avoid paying taxes, resulting in massive losses in tax revenue. Another goal is to avoid a race to the bottom […]continue reading

Hungary’s rapid and efficient vaccination program has brought an economic advantage, which the country can only retain “by also winning the international investment competition,” Szijjártó said.

Lego deputy general manager Jesper Hassellund Mikkelsen said construction would be completed in 2023 and expand the factory by 70,000 square meters. The molding capacity will increase by 50% and the packaging capacity by 30%, he said.

Photo illustrated by József Balaton / MTVA

Previous Rich Father, Poor Father Robert Kiyosaki Warns of 'Biggest Crash in World History' - Expects Bitcoin Price of $ 24,000 - Bitcoin Planet Markets and Prices
Next Hong Kong seeks closer integration with mainland China, says Lam