Lego will expand its factory in Nyíregyháza with state support of HUF 53 billion, the Minister of Foreign Affairs and Trade announced on Friday at the press conference in Budapest announcing the investment of Lego Manufacturing Kft.
Péter Szijjártó announced that the development will create 250 new jobs in the county seat of Nyírség, so the government will support it with HUF 5.85 billion. Based on its value, Lego's investment is the third most significant of this year's, and the Danish corporate group is building its second most significant plant in Nyíregyháza.
The minister emphasized that a competitive tax system is also an essential element of an investor-friendly economic environment, Hungary therefore rejects the objections to its tax policy, wants to keep the right to levy taxes within the jurisdiction of the nation-state, and insists on its competitive advantage gained through low taxes.
The vice president of the Lego group justified the investment by saying that the company group increased its turnover by more than 20 percent last year despite the crisis. Jesper Hassellund Mikkelsen added that the Nyíregyháza factory has developed step by step since its opening in 2014, and has now reached the point where the injection molding capacity has increased by 50 percent and the packaging capacity by 30 percent.
Construction in Nyíregyháza will end in 2023, and the factory area will expand by more than 70,000 square meters. The Hungarian company of the world-famous Danish construction toy manufacturer was established in 2008. According to its public report, the turnover of Lego Manufacturing Kft. exceeded HUF 37.5 billion in 2019, and approached HUF 47 billion in 2020. In both years, the income came predominantly from export sales. The year before last, the profit exceeded HUF 1 billion, last year it was close to HUF 1.5 billion.
Source: MTI
