Danish toy manufacturer Lego will invest 53 billion forints (EUR 149.6m) to expand its plant in Nyíregyháza, in northeast Hungary, Péter Szijjártó, the minister of foreign affairs and trade, said on Friday.
The government is supporting the investment, which will create 250 jobs, with a 5.9 billion forint grant, Szijjártó said.
The investment will be the third largest in Hungary in 2021, and will result in the second largest Lego plant worldwide, he added.
Investments by leading international companies prove that Hungary is providing an excellent environment for high-quality production, Szijjártó said. The “Hungarian system” combines companies with cutting-edge technology, the high performance of Hungarian workers, good infrastructure and a supportive economic policy, he said.
To maintain that environment, Hungary rejects criticism of a key element, its competitive taxation system, Szijjártó added, referring to debates of an international corporate tax. Hungary wants to keep taxation in the state’s hands and hold onto the competitive edge achieved by low taxes, he said.
Hungary’s swift and effective vaccination programme has brought an economic advantage, which the country can only maintain by “winning the international investment competition too”, Szijjártó said.
Lego deputy CEO Jesper Hassellund Mikkelsen said the construction will be finished in 2023, and will expand the plant by 70,000sqm. Casting capacity will grow by 50 percent, and packaging capacity by 30 percent, he said.
Featured photo illustration by József Balaton/MTVA