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project info
Start date: 1 May 2017
End date: 29 October 2020
funding
Fund: European Regional Development Fund (ERDF)
Total budget: 566 943,82 €
EU contribution: 397 314,23 € (70,08%)
programme
Programming period: 2014-2020
Managing authority: Nemzetgazdasági Minisztérium, Regionális Fejlesztési Programok Irányító Hatósága
European Commission Topic

Development of an industrial area in the City of Bük

a) PROJECT INFORMATION: Bük (Bükfürdő) is an internationally known bathing site whose economy is highly and well-knownly based on tourism. In addition, the opportunities offered by local industry and industrial areas at the border of the city are playing an increasingly important role in Bük’s strategic vision for development. The local industry contributes little to the city’s reputation, but also to local and regional employment, as well as to the quality of infrastructure and public services in the high environment of the municipality, through the activities of the two multinational companies operating in the industrial area and the local business tax revenue. In addition to Büki Gyógyfürdő Zrt., which determines the image of the settlement and the foundation of its reputation, and the companies that are dominant in local tourism, Nestlé Hungaria Kft. The presence of Gyára Büki and VOG Export-Import Kft. is of particular importance, whose weight and activity are far beyond the boundaries of the settlements. The fact that the number of employees of the seven largest companies exceeds the number of economically active people living in the city is characteristic of the local economic base, which also underpins the role of Bük’s strong regional and district labour force on the market. In addition to these large companies, there are a large number of (mostly family) micro and small businesses, whose activity is of great importance not only in terms of employment and self-employment, but also in terms of income generation and general civilisation. The strong presence of both larger and smaller enterprises points to the stability, balance and diversity of the employment structure of the local economy. Nestlé, operating in the industrial area, currently employs 950 people, and in April 2016 a HUF 20 billion development was announced, creating an additional 50-80 jobs and generating significant supplier activity in Buk and the county. From the point of view of local economic development, it is therefore of utmost importance to expand the supply side and to provide the set-up companies with adequate infrastructure. In terms of the four Hungarian factories, nearly 2000 Hungarian small and medium-sized enterprises supply goods or services to Nestlé Hungária Kft. worth more than 200 billion forints per year. Nearly 85 percent of the total external supplier palette is Hungarian. The Bük factory purchases particularly significant quantities of cereals and raw meat (tenths of thousands of tonnes per year) and thus provides predictable demand for a large agro-industrial base. This is also the potential of the planned industrial area development. Although the competitiveness of the local economy is essentially linked to the specific sectoral characteristics of the dominant tourism sector, particular attention should also be paid to the development of the general conditions of economic activity. In these circumstances, the availability of labour, the supply of premises and the availability of premises are of crucial importance. The supply of premises is unique in the City of Bük. For smaller, typically service or trading companies, municipal and private properties are available at different levels of infrastructure in several parts of the city. At the same time, the fact that the vast majority of properties do not have the necessary basic infrastructure (high-quality roads, utilities, etc.) is a significant disincentive for small and medium-sized enterprises, thus requiring significant basic investment, making the establishment of a usable site more expensive. The price level of potential premises is also quite high, which further increases the unit costs of investments. The City of Bük considers it necessary to undertake industrial development in the neighbourhood of multinational companies, in order to ensure that the first phase of investment is carried out by the city instead of the non-capitalised, potential supplying SMEs, thus ensuring the foundations of systematic site development. In the area of the development of the Bük industrial area, the quality of business infrastructure and services is only partially available to local businesses and investments to make employment-enhancing investments. Within the industrial area, the access to individual jobs, industrial and economic facilities is also a problem for the lack and quality of internal roads and rainfall, and the lack of public lighting is not negligible from the point of view of public safety and constitutes a task to be solved for the Municipality of Bük. Therefore, the development of the existing business infrastructure of the industrial area (road network, rainwater drainage, public lighting) is essential as a matter of priority. The development of the business environment at regional and local level, and the development and development of business infrastructure are key to the establishment of enterprises based on local conditions for the ope...

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