Strategic partnership agreement between Hungarian Gov´t and ZF

The four main areas covered by the agreement are expansion of the Hungarian supplier base, production development based on research & development, the increase of employment, and development of the system of vocational training.

Péter Szijjártó, State Secretary of the Ministry of Foreign Affairs and Trade emphasized at the ceremonial signing that in 2010, the Government decided to start reindustrializing the country, with a view to transform Hungary into the production centre of Europe.

Domestic reindustrialization is successful, and the automotive industry plays a significant role in that. The Hungarian automotive industry is in excellent form, said the State Secretary.

Szijjártó reminded that while the 712 companies operating in this sector employed 112,000 people last year, this number has increased to about 127,000 this year.

The production value generated by the automotive industry accounted for more than 20 percent of the total output of the processing industry in the first five months of the year compared with 18 percent last year, and the automotive industry already represents 20.4 percent within total Hungarian product export, reported the Ministry of Foreign Affairs and Trade.

“We need strategic partners to accomplish our strategic objective, that’s why the Hungarian Government concludes strategic partnership agreements. ZF is one of the ten largest automotive suppliers worldwide; the document signed with ZF Hungária is the 45th similar agreement. The company is our eighth German strategic partner”, said the State Secretary.

Szijjártó said that ZF Hungária manufactured 110,000 transmission systems last year, generating an income of about HUF 60 billion and investing EUR 145 million in various projects during its operation in Hungary.

The State Secretary emphasized: 45 percent of ZF’s suppliers are Hungarian companies, whereby domestic small and medium-sized enterprises could earn an annual income of EUR 53 million from ZF’s procurements. Efforts are made to increase this ratio to 60 percent from the current 45 percent.

Csilla Őszi, managing director of ZF Hungária Kft. explained, among others, that the company commenced its operations with 300 employees in 1996 in Eger. The company currently employs over 800 people, and gives work to further 1,500 people indirectly through its Hungarian suppliers.

Areas highlighted by the managing director included the manufacturing of 5- and 6-speed gearboxes for commercial vehicles, the company’s development and test centre as well as their IT centre, reported the Ministry of Foreign Affairs and Trade.