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.
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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.
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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.