Ministry of Economy and Transport - Newsletter

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January 28th 2009 | Week 5.

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LEGO Inaugurates Plant in Hungary

January 23rd, 2009

Danish toymaker LEGO inaugurated a plant it spent tens of millions of euros to modify in the Hungarian city of Nyiregyhaza Read more...

Jaguar Sales Grow Even as Vehicle Market Contracts

January 26th, 2009

EIB Opens EUR 440 Million Credit Line for Hungary

January 26th, 2009

As overall car sales dropped about 10 pct in 2008, Jaguar brand sales grew 11 pct Read more...

The European Investment Bank (EIB) has made available to Hungary a EUR 440 million credit line Read more...

General Information for Investors

ITD Hungary offers general information about investment regulations and company registration in Hungary. Read more...

Government Subsidy to Save Jobs

January 27th, 2009

The Hungarian office of PricewaterhouseCoopers published a brief about the initiative of the Ministry of Social Affairs and Labor providing financial support to entrepreneurs in order to save jobs. The subsidy offers assistance up to HUF 5,950 million between January 23rd and 5th November, 2009. The program also supports training to broaden labor skills of those, whose positions have become insecure due to the global crisis.

Taxation in Hungary
The Hungarian taxation system has developed to the level of complexity found in Western Europe. ITD Hungary supplies all important information for investors in order to organize their activity smoothly in Hungary. Read more...

Jaguar Sales Grow Even as Vehicle Market Contracts

January 26th, 2009

Corporate Legislation
Becoming familiar with local corporate legislation is a prerequisite for successful investments. Hungary has harmonized its regulations with the European and international systems. Read more...

As overall car sales dropped about 10 pct in 2008, Jaguar brand sales grew 11 pct, similar to the trend in other premium segments, data from Jaguar's distributor in Hungary Cel Motors shows. Cel Motors sold 71 Jaguar models in 2008. Cel Motors' sales of Land Rover models fell to 173 in 2008 from 291 in 2007. India's Tata Motors acquired the Jaguar and Land Rover brands from US car maker Ford last spring.

EIB Opens EUR 440 Million Credit Line for Hungary

January 26th, 2009

The European Investment Bank (EIB) has made available to Hungary a EUR 440 million credit line that can be used until 2013 to support economic competitiveness. The credit line will cover co-payments in the New Hungary Development Plan, the country's framework for paying out EU development funding.

Ernst and Young Names Music Festival Organizer Entrepreneur of Year

January 25th, 2009

Consultancy Ernst and Young named Karoly Gerendai, managing director of Sziget, which organises Hungary's biggest summer music festival, Entrepreneur of the Year at a gala evening on January 25th. "After paprika and palinka, a new 'Hungaricum' was born in 1993. The Sziget Festival

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Ministry of Economy and Transport - Newsletter

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shapes and expands the exposure of the domestic market and creates new opportunities for Hungary's artists. Karoly Gerendai's business activities are a decisive factor for Hungarian tourism, Hungary's international profile and its positive assessment," the jury said in its decision.

Five Old Hotels Are Undergoing Renovations in Hungary s Southern Part

January 23rd, 2009

Five old hotels in Hungary's Southern Great Plain region are undergoing renovations worth a combined HUF 11 billion, including EU development funding, business daily Napi Gazdasag reported on January 23rd. In Szeged, three hotels are being renovated. The Royal Hotel, which was closed in 2007, will undergo a HUF 1.5 billion renovation and reopen with four stars. The Regi Hungaria will get a HUF 2 billion facelift, and the Forras will be renovated by Hunguest Hotels at a cost of HUF 1.5 billion. Hunguest Hotels is also building a water park, together with the local council, next to the hotel. The local council of Morahalom is spending almost HUF 2 billion - including EU funding of HUF 500 million - to renovate the city's Hotel Colosseum, turning it into a wellness hotel. The Petofi Hotel in Szentes will undergo a HUF 4billion renovation, transforming it into a five-star hotel, the region's first.

NHH Asks for More Information from Bidders in Mobile Frequencies Tender
January 23rd, 2009

On Friday Hungary's National Telecommunications Authority (NHH) asked bidders in a tender for new mobile communications frequencies to submit further information, daily Nepszabadsag reported on January 23rd. The NHH asked bidders to detail the pace at which they can expand coverage and in which cities they will build up their networks. The request means either that competition is tight or the offers are unrealistically low in comparison with the networks the bidders promised to build, Nepszabadsag said. The two frontrunners each bid HUF 44 billion-48 billion and promised 70-76 pct coverage, the paper wrote.

Construction Industry Companies Set up National Council

January 23rd, 2009

Hungary's seven regional construction industry associations established a national council in Budapest on January 23rd. The body aims to see Hungary's 90,000 construction industry businesses consolidated in 10,000-15,000 viable companies that can employ staff and pay them well, instead of using cheap contracted labor.

LEGO Inaugurates Plant in Hungary

January 23rd, 2009

Danish toymaker LEGO inaugurated a plant it spent tens of millions of euros to modify in the Hungarian city of Nyiregyhaza on January 23rd. LEGO owner Kjeld Kirk Kristiansen and Finance Minister Janos Veres inaugurated the plant. The plant, which was earlier owned by electronics manufacturing services company Flextronics, a LEGO supplier, will produce about 10 pct of the 22billion LEGO pieces the company makes each year. It will employ 1,300 people. Plant director Jens Peter Clausen said 250 injection molding machines will run in a space of about 170,000 square metres to make LEGO System and Duplo products. The parts will be packaged on 30 different lines.

Aquaplus to Build HUF 1.2 Billion Hotel in Mohacs

January 23rd, 2009

Aquaplus will build a HUF 1.2 billion four-star hotel in Mohacs (SW Hungary), business daily Napi Gazdasag reported on January 23rd. The 44-room hotel is expected to be completed by 2010. The hotel is part of a HUF 3 billion tourism development program in the city.

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Egis Says Extraordinary Profit Boosted Q1 Income

January 21st, 2009

Hungarian drug maker Egis, majority owned by France's Servier, said extraordinary items boosted profits and revenues in Q1 of its business year that started October 1. Egis estimated its pre-tax profits reached HUF 5.8 billion and revenues of HUF 28.5 billion in the quarter ending December 31, 2008. Pre-deliveries made for business reasons added HUF 2 billion to profits and HUF 3 billion to revenues during the period. Egis will publish its preliminary Q1 report on February 9.

Government support to retain R+D staff

January 21st, 2009

The government will soon offer support to companies to retain their R+D staff, National Development and Economy Minister Gordon Bajnai said after a meeting of the Auto Industry Competitiveness Working Group on January 21st. The auto industry's existing competences have to be protected, as qualified labor will be difficult to replace when the economy picks up, said Istvan Lepsenyi, CEO of brake maker Knorr-Bremse and chairman of the working group. Europe's car industry is expected to contract 30-40 pct in Western Europe and even more in Eastern Europe, he added.

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