Mihály Varga: 25 billion will be spent on Investment Support for Large Enterprises this year
EnglishThe Large Enterprise Investment Support Program is a real success story, and the government will spend 25 billion forints this year to continue the program, Minister of Finance Mihály Varga said on Friday at the foundation of the new mill of the pasta factory in Gyermely.
The Minister emphasized that in the last six years, 179 mainly Hungarian producer investment projects in Hungary have received support from the program's resources.
So far, 160 billion has been spent for this purpose, helping the realization of investments worth 380 billion.
Mihály Varga pointed out that if the 25 billion budget planned for this year were to run out, the government would be ready to reallocate new resources for this purpose, as the program launched in 2015 played a major role in ensuring that the Hungarian economy did not collapse during the pandemic.
He explained that Gyermelyi Zrt is now building its third mill worth 5.5 billion forints, for which the government provided 1.7 billion in assistance under the Large Enterprise Investment Support Program. The future plant of the company, which is also a major player in the milling industry, will be able to grind 300 tons of soft wheat per day.
In addition, the company's 1.6 billion forint capacity expansion was completed, with 500 million forints of government support.
Gyermely has one of the largest pasta factories in Central Europe. The six production lines are capable of producing 70,000 tons of dry pasta per year. The plant uses raw materials produced at the company’s own farms and plants.
In Hungary, Gyermelyi is the market leader; almost half of the dry pasta consumed domestically is produced by them.
In recent years, export sales have also increased significantly, accounting for 35 percent of the pasta turnover today.
Gyermelyi Zrt, which will turn 50 years old this year, managed to increase its revenue during the pandemic as well. It achieved consolidated sales of 24.5billion, 28.2 billion and 29.2 billion forints in 2018, 2019 and 2020 respectively. The company's investment projects also continued, with 2.8 billion spent on investment in 2018, 2 billion in 2019 and 4.6 billion in 2020.
The group employs nearly 500 people and creates more and more jobs with its investments.
