Spar Opens New Logistical Center near Budapest

August 25th 2008

The Hungarian unit of the Austrian supermarket chain Spar has opened its new logistical hub on a 47,000-square-meter (505,890 sq feet) site outside of Budapest, on August 25th 2008.
The communications director declined to reveal the cost of the new logistical center. The company would initially employ 300 people at the facility located to the South East of Budapest in Ullo, but this number would eventually rise to 600.
Spar currently operates 378 supermarkets in Hungary, including 174 Plus stores that the chain acquired from Germany's Tengelmann Group in March 2008.

Government, NBH Keep Mid-Term Inflation Target Unchanged at 3 pct

August 25th 2008

The government and the National Bank of Hungary (MNB) have set a joint mid-term inflation target at 3 pct for 2010, unchanged from the previous target for 2009, Finance Minister Janos Veres and NBH governor Andras Simor said at a press conference on August 25th 2008.
The government and the NBH set a mid-term inflation target every three years. The last target, for 2009, was set on August 22nd 2005.
An agreement on the inflation target published on the NBH website, said the NBH's rate-setting Monetary Council, will make rate decisions with a view to expected inflation developments in the subsequent 5-8 quarters, which is the time frame in which monetary policy decisions affect prices.

Fall in Hungary Retail Sales Accelerates to 1.9 pct in June - Extended

August 26th 2008

Twelve-month retail sales volume in Hungary fell a calendar year-adjusted 1.9 pct in June, dropping at a slightly faster rate than the 1.6 pct decline in May, the Hungarian Central Statistical Office (KSH) reported on August 25th 2008. Twelve-month retail sales have dropped every month in 2008, falling 1.4 pct in April, 3.4 pct in March, 2.5 pct in February and 2.7 pct in January.
Retail sales in January-June dropped 2.2 pct from the same period a year earlier.
In a month-on-month comparison, retail sales dropped 0.3 pct in June, accelerating from a 0.2 pct decline in May, according to seasonally and calendar year adjusted figures.

Environmental Cleanup of Debrecen Airport Completed

August 22nd 2008

The environmental cleanup of the Debrecen airport was completed on July 31st 2008, head of department at the mayor's office Laszlo Varga said at a press conference on August 22nd 2008.
Peter Habi of the Environmental Ministry added that 75 pct of the project was covered by EU grants, while the Environmental Protection and Infrastructure Development Operative Programme (KIOP) provided the city of Debrecen with HUF 818 million (EUR 3.48 million) in support.

Hungarians Spend 28 pct More Abroad in the First Half 2008 – Extended

August 22nd 2008

Hungarians spent HUF 302 billion (EUR 1.29 billion) when traveling abroad in January-June 2008, 28 pct more than a year earlier, figures published by the Hungarian Central Statistical Office (KSH) on August 22nd 2008 reveal.
During the same period, foreign visitors' spending in Hungary rose 12.0 pct to HUF 449 billion (EUR 1.9 billion).
The surplus decreased HUF 18 billion (EUR 76.6 million) (or 10.3 pct) from H1 2008 to HUF 148 billion (EUR 630 million).
Based on current account statistics excluding international transport-related spending, the H1 tourism surplus fell 12 pct from a year earlier to HUF 136 billion (EUR).
The number of Hungarians who traveled abroad in the first six months of 2008, rose a mere 0.1 pct to 7.89 million. The number of foreign visitors to Hungary dropped 2.0 pct from a year earlier to 16.922 million.

Generali-Providencia Wins Tender to Insure MAV

August 26th 2008

Hungarian insurance company Generali-Providencia Biztosito has won a public procurement tender to provide state-owned Hungarian railway company MAV with liability insurance, the latest issue of the Public Procurement Gazette reveals.
Generali-Providencia won the tender over the Allianz Hungaria and Union insurance companies with the lowest bid of HUF 117 million (EUR 501,167).

Hungarian Farmers Harvest 17 million Tons of Wheat in 2008

August 26th 2008

Hungarian farmers harvested 17 million tons of wheat in 2008, while the maize harvest is expected to yield 9 million tons for the year, Agriculture Minister Jozsef Graf said on August 21st 2008.
The investments of HUF 230 million (EUR 970,000) in the livestock sector will improve technology, raise productivity and competitiveness in this area, noting, however, that automation will result in a lower employment in the sector.
The minister proposed that the wheat surplus be stored and sold later, since neighboring countries have also recorded big harvests.

E.ON Foldgaz to Begin Gas Import Negotiations with Panrusgaz

August 22nd 2008

E.ON Foldgaz, the Hungarian unit of German energy corporation E.ON Ruhrgas, will soon begin negotiations with Hungarian gas-trader Panrusgaz regarding a long-term contract for gas imports from Russian oil and natural gas company Gazprom, Chairman of the Board of Directors of E.ON's Hungarian gas-trade unit Klaus G. Hammer told the Hungarian business daily Vilaggazdasag on August 21st 2008.
Panrusgaz is jointly owned by Gasprom and E.ON Foldgaz.
This spring, Hungary's Parliament approved the Gas Act, which includes articles regarding automatic termination of gas-trade contracts as well as the definition of significant market power at which the state would intervene in the market.

EU Funds Cover 10 pct of Hungary's Needed Road Development Costs Until 2013

August 26th 2008

EU funds available between 2007 and 2013 will cover only about 10 pct of the HUF 2,500 billion (EUR 10.66 billion) required for the development of Hungary's 30,000 kilometres (18,640 miles) of public roads, CEO Sandor Laszlo of Hungary's road maintenance company Magyar Kozut said in an interview published in the business weekly Figyelo.
Mr Laszlo said 26,000 kilometres (16,155 miles) of Hungary's roads do not meet EU standards, noting that a large proportion of the country's public roads, which have a lifespan of just 16 years, was built in the 1970s.

Daimler-Benz Establishes Hungarian Manufacturing Unit

August 26th 2008

German car company Daimler-Benz, which announced in June that it would build a EUR 800 million manufacturing plant in Hungary, has established a Hungarian unit, Mercedes-Benz Manufacturing Hungary Kft., the Hungarian weekly HVG reported on August 21st 2008.
Director Beno Zseni of Mercedes-Benz Credit Penzugyi Szolgaltato Hungary will serve as the CEO of the Hungarian unit, the weekly wrote.
Daimler-Benz plans to begin producing next-generation Mercedes A- and B-Class compact models at its new plant in Kecskemet (C Hungary) in 2012. The company is expected to employ 2,500 people at the plant, which will be the largest greenfield investment in Hungary.
Mercedes-Benz Manufacturing Hungary Kft. set up with registered capital of HUF 500,000 (EUR 2,133), HVG reported.