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The investment will start early next year, as a result of which Ózd can become one of the largest hot tub manufacturers in the world. However, the municipality may even be in a hurry.
The coronavirus epidemic in the international hot tub market brought a significant increase in demand for Wellis Magyarország Zrt. For this reason, the 100% Hungarian-owned Dabas company saw this year that the time had come to expand its capacity.
Investment could start in early 2021 at the Swiss-owned ABB plant site out of Ózd, promising 700-800 jobs to the vomited city in a few years. However, the deal can hardly wait for the business tax.
It was recently revealed that Wellis Magyarország Zrt., A manufacturer of hot tubs and other bathroom equipment, will buy the ABB factory site out of Ózd, promising jobs for the area. The news was jointly announced by Zsolt Czafik, owner-CEO of Wellis, Gábor Riz, Fidesz deputy for the region and Péter Szijjártó, Minister of Foreign Affairs and Trade. The HUF 8.3 billion investment will be implemented with a non-reimbursable state subsidy of HUF 3 billion.
In May-June, during the first wave of the coronavirus epidemic, the demand for our massage baths jumped in European markets. It was then that we contacted a company closely linked to the Ministry of Foreign Affairs to expand our production capacity and find a suitable location. Thus was born the ABB site, which Ózd left behind. We were also able to count on state support for investment there, and the presence of a skilled workforce made the site even more attractive. In Pest County, for example, it is very difficult today to find a sufficient number and with proper training of employees, said Zsolt Czafik, owner and CEO of Wellis Magyarország Zrt.
This could be the big leap
According to the entrepreneur, they plan to start production with undisclosed ABB employees, who can receive training mainly at their factories in Dabas. The Hungarian company expects a three-year preparation period, at which point the annual number of massage bathtubs produced in Ózd will reach 50,000 and the number of employees will reach 700-800. With this amount, the company can become one of the leading hot tub manufacturers in the world. Of course, this, as the director of the company said, also requires a favorable development of the world market.
Wellis also plans to build a 20,000-square-foot warehouse building with logistics functions in the immediate vicinity of the current ABB plant. The Ózd municipality also made an offer to the company for the purchase or lease of this area. Which one is accepted and how much revenue it means for the city will only be revealed in the near future, our article learned from David Janiczak, the mayor of Ózd.
The government can still intervene
The settlement of Wellis Ózdra is a great pleasure for me and for those who live here. However, I am concerned about one thing: the government has the opportunity to declare the area a special economic zone for investments of more than 5 billion HUF. If this happens, the local business tax (hipa) derived from it will not enrich the city, but the county government in the future. They will decide which municipalities will receive the amount received. With this, Ózd could lose significant income. I have already raised the issue with Mr. Gábor Riz, who did not confirm my suspicions, but did not deny the possibility, the mayor said.
Dávid Janiczak, Mayor of Ózd
Photo: Napi.hu, Ádám Kónya
With whom I speak, everyone is happy with the arrival of the company. Most are already wondering where to apply for a job at Wellis. However, business tax withholding is a real problem. Not only do I believe that the government is trying to prevent opposition municipalities from doing this, as there has already been an example of this in the case of a non-official city. On the other hand, it can be beneficial for the business to declare the investment as a SEZ, and it also sounds good for the county as it can manage more money. If this happens, I can only hope that most of the proceeds will be returned to Ózd by the county, a local resident who wishes to withhold his name told our news portal.
More companies can arrive
According to statements made in recent days by the parliamentary representative of the region, Gábor Riz, in addition to Wellis, who is settling in the city, four other companies are also negotiating their investments in Ózd. Possible participants included a bus manufacturer, a concrete element manufacturer, a solar panel and a special container plant, which are expected to arrive with state support.
Earlier this year, the city was devastated by news of ABB’s withdrawal, which employed some 1,200 people at its peak. The Ózd district is one of the poorest in Hungary. According to data from December last year, that is, even before the coronavirus epidemic, 8.6 percent of the working-age population was seeking employment, which is much higher than the national average of 3.5 percent. cent at that time. After the plant closed, this value could have risen above 13 percent without the negative economic effects of the pandemic. The city’s tax revenue ranges from HUF 1-1.2 billion a year, of which a third to a quarter of the local government could have fallen, as in 2018 the business tax paid by ABB was HUF 328 million . That is why startups are so important to the city, first of all the arrival of Wellis and the permanence of fashion in Ozd.
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