British DS Smith’s Investment Boosts Economic Growth

DS Smith Packaging, a leading British manufacturer, is expanding its operations with an investment of over EUR 35M (HUF 12.7B) at three sites in Füzesabony (eastern Hungary), Nagykáta (central Hungary), and Győr (western Hungary).

The company, already operating at eight locations in Hungary, employs over 1,000 people and is a key player in the packaging industry. Minister of Foreign Affairs and Trade, Péter Szijjártó emphasized that this investment is a part of Hungary’s strategy to maintain economic stability and growth amid global challenges.

Minister Szijjártó also highlighted Hungary’s positive growth outlook, with GDP expected to expand by more than 3% next year. He pointed out that despite the current economic difficulties, the government is focused on creating a competitive environment to foster job creation and investments.

We are looking forward to a period of significant economic growth, driven by investments, especially from key sectors like the automotive and battery industries,” he said.

British investments remain crucial to the country’s economy, with the UK being the seventh-largest investor. Bilateral trade between Hungary and the UK reached a record EUR 6.5B, showing robust economic ties despite Brexit. “We regret the UK’s exit from the EU, but we are committed to strengthening economic cooperation,” the politician noted.

Hungary’s economy is also diversifying beyond the automotive sector. DS Smith’s investment highlights the country’s ability to attract a wide range of industries. Péter Szijjártó remarked,

this shows that the Hungarian economy exists beyond the automotive industry. It is a diversified, multi-legged economy.”

However, the war in Ukraine continues to impact the region, posing a threat to economic stability. Minister Szijjártó emphasized that peace and stability are essential for continued growth. “If peace returns, the Hungarian economy could experience a great period,” he concluded.

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