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Canada-based Linamar Corporation Expands Production Facility In Hungary

By Tamás Székely // 2015.02.04.

Canadian-owned Linamar Corporation, a producer specialising in agricultural machinery and car parts, has extended its production hall in the town of Orosháza, in southeast Hungary,  using a budget of 5 billion forints (EUR 16m). The new facility offers 150 new jobs in the region. The new facility, which will produce agricultural machinery and car industry components, was ceremonially opened by economy minister Mihály Varga and Canada’s Ambassador to Hungary Lisa Helfand.

Canadian ambassador Lisa Helfald said that bilateral ties between her country and Hungary could even be made more closer if the European-Canadian economic and trade agreement is ratified next year. The agreement could facilitate a 20% increase in bilateral trade and contribute an annual growth of 11.6 billion euros in the European economy.

Mihály Varga called attention to the fact that Canada is a key economic partner for Hungary and we receive the largest amount of Canadian FDI within the Central and Eastern European region. As the Minister stressed Linamar Ltd, which has several production sites in the Southern Great Plain region, has received non-refundable EU grants of some HUF 1.6bn and the HUF 5bn project will create 150 new jobs in the town.

Speaking about the company’s role as one of the economic growth engines of the region, Mihály Varga emphasised that the enterprise employs more than 2000 people and through 1500 Hungarian suppliers it has generated several thousands of other jobs. In addition, the company has been an active partner in developing the dual vocational training system through which it does not only supply the skilled labour force it requires but assists the development of the Government’s new vocational training system.

As far as the 2014-2020 EU fiscal period is concerned, the Minister pointed out that the Hungarian government is determined to maintain the momentum Hungary’s economy has achieved in 2014. Mihály Varga also said that EU funds in the current budgeting cycle could facilitate “the largest programme of all times” to boost the Hungarian economy. Varga noted that the cohesion funding, together with co-financing from the central budget, would amount to 12,000 billion forints (EUR 39bn).

via kormany.hu and hungarymatters.hu photo: Tibor Rosta – MTI