BELGIAN FOCUS Interview with Ambassador Siegfried Peinen; Wallonia Export & Investment Agency; Borsodi; VPK; Flanders Investment & Trade; Soudal; Weerts Group, The Three Corners

BY SÁNDOR LACZKÓ

This year, Hungary and Belgium celebrate the 100th anniversary of the establishment of diplomatic relations. Looking back at the history of this century, Ambassador Peinen notes that at the very beginning, there was a bit of cautiousness from both sides as Hungary and Belgium came from opposite sides after the First World War. “It was noticeable, however, that during the 1920s, the relationship became much more friendly and much more intense, which, politically, had to do with the Treaty of Locarno in 1925. On a more human, humanitarian level, a very important event was the setting up of the Hungarian Belgian Child Relief project, the so-called children’s trains. It was a project that was originally started by the Netherlands, Sweden, Switzerland and Great Britain at the time, just after the First World War. Of course, there was misery and poverty everywhere in Europe but the people noticed that conditions were especially hard in Hungary after First World War. From 1923, there were a lot of Catholic organizations that stepped into this project and this way, almost 25,000 Hungarian children could make their way to Belgium where they stayed with local families mostly in Flanders, and to a lesser degree in Wallonia. Most of them came back after a couple of months or years, but a lot of them stayed also in Belgium. We estimate that about 10% of them ended up staying in Belgium, and, of course, their descendants. They're very much aware of this bond and this creates up until today a special bond for many Belgians with Hungary. As a matter of fact, very recently there was an interesting exhibition going on in the Budapest History Museum on the children’s trains. This was briefly, and on a much smaller scale, repeated after World War II.“ The Ambassador adds that following the Hungarian Revolution of 1956, numerous Hungarian refugees went to Western Europe with many of them also ending up in Belgium. “We estimate about 7,000 refugees arrived in 1956. Later on, as there were more waves of refugees, they were very warmly greeted and welcomed in Belgium where they called them freedom fighters. Some of them went on to other countries, but a lot of them stayed in Belgium. In conclusion of this issue, he states that relationship between Belgium and Hungary changed completely after the fall of the Berlin Wall when Hungary integrated into the Euro-Atlantic community, when it became member of NATO and EU.

Becoming Belgians

As to how Hungarians arriving to Belgium, in different time periods, managed to integrate into society and be good citizens of the country, Ambassador Peinen says the profile is sometimes very different, but overall, they integrated very well into Belgian society. They still have this strong bond with Hungary, some still visit their Hungarian families. “After the first wave, the children that remained eventually dispersed all over Belgium. With the waves after that, like that of 1956, a lot of them ended up staying around the region of Brussels, Liege and Genk, which had to do also with the fact that there was major industrial activity around these places at that time and there was a need for labor force. Others, academically brilliant students were employed also in the private sector.” He also highlights a few better-known Hungarians who ended up in Belgium. For example, Sándor Lámfalussy who later became known as the ‘father of the euro’, the common European currency. He received the Order of St. Stephen of Hungary in 2013. Another example is the current Honorary Consul for Hungary, Ari Epstein, who is based in Antwerp and who also has Hungarian heritage. He is now the CEO of the Antwerp World Diamond Council.

INTERVIEW WITH THE AMBASSADOR OF BELGIUM, SIEGFRIED PEINEN

STRENGTHENING BONDS THROUGH COOPERATION

Strengthening bonds

“Of course, this 100th anniversary is always a good occasion to strengthen the bonds that we already have. Since both Belgium and Hungary are members of the same club, both members of NATO and EU, there is already a lot of cooperation going on between our countries and I would say sometimes it's so obvious that we don't even notice it anymore. Both Belgium and Hungary are mediumsized countries with very open economies and thus, we are both very much dependent on free trade and a good functioning single market within the EU. So, everything that is related to that really is a good reason to look at areas where we could cooperate more,” the Ambassador highlights. Looking towards the future, he mentions logistics as something that is very important for Belgium. “We have major ports and we're looking more and more at how we can connect with the hinterland. Naturally, for example, we also look at Hungary being very centrally located, at the crossing point of the east-west and the north-south axes in Europe. So, it certainly offers a lot of possibilities. Nowadays, we live in

AREA country comparison to the world POPULATION country comparison to the world POPULATION GROWTH RATE country comparison to the world BIRTH RATE country comparison to the world LIFE EXPECTANCY AT BIRTH country comparison to the world NET MIGRATION RATE country comparison to the world GDP - PER CAPITA (PPP) country comparison to the world UNEMPLOYMENT RATE country comparison to the world TELEPHONES - MOBILE/CELLULAR country comparison to the world AIRPORTS country comparison to the world

HUNGARY BELGIUM

93,028 sq km 110 9,699,577 (2022 est.) 93 30,528 sq km 140 11,778,842 (July 2021 est.) 80

-0.3% (2022 est.) 216

0.59% (2021 est.) 151 8.65 births/1,000 population (2022 est.) 10.95 births/1,000 population (2022 est.) 211 170

77.2years 92

81.65 years 31 1.23 migrant(s)/1,000 population (2022 est.) 4.58 migrant(s)/1,000 population (2021 est.) 61 25

USD 31,000 (2020 est.) 63 USD 48,200 (2020 est.) 31

3.45% (2019 est.) 48 5.36% (2019 est.) 86

10,332,660 (2020) 88 41 (2013) 103 11,529,728 (2020) 78 41 (2013) 102

belgian focus

a different geo-political environment and I have to say that in terms of security and defense, Hungary has really been investing a lot in its own security in the last couple of years and will reach the NATO 2% defense investment guideline in a couple of years. Also, cooperation with Belgian manufacturers active in this area is increasing.” As for pure bilateral political relations, the Ambassador considers them good. “They could be of course a little bit more intense and that is always the job for an ambassador to deepen this relationship. Of course, there are some issues where sometimes we disagree but that's normal within the EU. For example, we all know the issue of the rule of law. But the proper procedural framework for these debates is in place. The European Union has been constructed in a way that it's also a forum where we can discuss these issues as partners that share responsibility for our European project. So, Belgium can, like any other member state, make certain remarks on these issues just as Hungary can point to certain areas where they wish to express themselves.” A good opportunity for the two countries working together will be when Belgium will form the trio Presidency of the Council of the European Union together with Hungary and Spain from 2023. “Preparations for this presidency will start pretty soon and from that point, we will have more and more contacts as well,” he adds.

Soaring trade relations

Belgium is among the ten largest foreign investors in Hungary with Belgian companies having invested nearly EUR two billion while the volume of trade between the two countries is around EUR 5.5 billion annually. Bilateral economic relations are on a good path but, of course, there is always room for improvement. Citing figures published by the Belgian Foreign Trade Agency, the Ambassador points out that, for example, “from 2017 to 2019, both exports and imports between the two countries were soaring, I would say on an average of about 15% a year. However, with the pandemic, it all took a little dive, but it's picking up very quickly again as you see from the most recent figures for the first nine months of 2021. In terms of the makeup of Belgian exports, it is mostly chemicals, machinery and equipment, plastics and pharmaceutical products. I would like to point out that Belgium is a world leader for pharmaceutical products. For example, Belgium constitutes about 2% of the total population within the EU and 3% of the EU’s GDP. But if you look at research and development (R&D) expenditure in the pharmaceutical sector, it is more than 12%. It generates almost half of our trade surplus worldwide. So, we really have a lot going in this sector and that's also one of the major sectors that our trade representatives are focusing on.” In terms of improvement, Ambassador Peinen notes that when it comes to investments, it is a bit of a one-way street, a lot of Belgian companies have invested in Hungary. “Belgium certainly has a lot of qualities and advantages for also younger company startups that want to scale up, for example, in the pharmaceutical or in the biotech sector. So, trying to attract more Hungarian companies to invest in Belgium is certainly one of the challenges, but there are certainly a lot of possibilities,” he adds. Regarding major investors from Belgium to Hungary, the Ambassador stresses that by far, it is K&H Bank (owned by the Belgian bankinsurer KBC Group) that is the biggest flagship investment that has been active in Central Europe for over 25 years. In Hungary, K&H is the second largest bank right now. “Other than that, most of the Belgian companies are bigger SMEs that are active here. They are active in a wide area of different fields like for example Delaware (ICT sector), Eltex (in waste management), Mono (automotive sector), SIC (industrial rubber products). Some are active in the hospitality sector like The Three Corners. Soudal is a major player in the construction industry etc. In short, the Belgian companies represented in Hungary really cover all economic fields.

Language-assisted cultural promotion

Cultural relations between the two countries also go back a long time. “Looking in the archives, I noticed that, for example, in 1927, the Belgian government organized a Hungarian concert in the Brussels Conservatory. Belgium is a multi-language country and the three official languages there are also very well represented here in Hungary through their respective governments. For example, if you look at Dutch language and literature studies, actually, there are three universities in Hungary that are active in this field: ELTE, Károli Gáspár and also the University of Debrecen. They have a full program where you can learn Dutch and learn about the Flemish and Dutch culture. The Flemish government is very active in this field. They promote the language along with the culture. Same goes for the Francophone side of Belgium where you have a representative for WBI (Wallonie Bruxelles International) working in the French language department at ELTE and whose job also includes the promotion of the French language and the Francophone culture from Belgium. As a matter of fact, a festival of the Francophonie is going on in Hungary right now. The German speaking community of Belgium is not represented here in Hungary, but it is also an official language in my country. We have some contacts, for example, with the Andrássy University, the only German speaking university outside the German Sprachraum. All these things create bonds and although Belgium has a complex institutional architecture with three different language communities, it also allows you to have contacts with different parts of society, which certainly is an advantage in my job. I have to say that there are a lot of Hungarians, in all walks of life, who speak either Dutch or French, or German very well,” the Ambassador highlights.

Planning anniversary events

As for the celebration of the 100th anniversary of diplomatic relations, Ambassador Peinen notes that the anniversary celebrations started on February 20th and “at the Belgian Embassy, we are planning several events in different sectors culturally, academically and politically. We also want to do something with alumni, for example, Hungarians who have been studying in Belgium. Just recently, along with the Flemish side, we organized an activity around the performance of Collegium Vocale at the Liszt Ferenc Academy of Music in Budapest. We used this opportunity to invite some VIPS and organize a reception. We are very proud that such a world-renowned ensemble performed in Budapest. The reaction of the public was astounding. You can tell that there are true connoisseurs among the Hungarian public. The Artistic Director, Mr. Herreweghe, admitted afterwards that performing in Budapest is always something special.” The Embassy is planning something similar for the Francophone side. “For a long time, we had the idea to organize something with the Liege Philharmonics Orchestra because their musical director is Hungarian, Gergely Madaras. Unfortunately, it didn't work out due to agenda conflicts. For most other events we're still in the planning phase. I assume that most events will take place in the second half of the year. There is also an idea to do something in the economic field together with our Belgian Business Club (Belgabiz) that celebrated its fifth anniversary in 2020. Because of the pandemic, the anniversary party could not take place but maybe the 100th anniversary could be a good occasion to put Belgabiz in the limelight as the economic bonds between our two countries are very strong. In the academic field, we have been talking, for example, with the Institute for Foreign Affairs and Trade to organize a seminar, probably also in the second half of the year. Our foreign minister, Sophie Wilmès, who is also Deputy Prime Minister, was to visit Hungary at the end of August last year. Unfortunately, we had to postpone it, but I’m sure that we will soon find another date for this visit,” the Ambassador concludes.

belgian focus

A WINDOW OF WALLONIA TO HUNGARY

THE REGION’S EXPORT AND INVESTMENT AGENCY COPES WITH NEWLY EMERGING CHALLENGES Belgium’s primarily French-speaking region, Wallonia and the (bilingual) Brussels-Capital Region maintain a joint representation office in Budapest, operating under the umbrella of the Belgian Embassy. The AWEX (Wallonia Export & Investment Agency) office, in charge of foreign trade promotion in Hungary and foreign investment attraction to these regions, is headed by Edit Ránky as Trade and Investment Counselor who explains to Diplomacy&Trade the tasks and activities they are entrusted with and how they have managed to cope with the challenging conditions of the past few years.

Since Belgium is a federal state, everything to do with exports and investment is a regional competence. At the federal level, there is a Ministry of Foreign Affairs in Belgium, but for everything that concerns the economy, exports and imports, there is a separate government agency. In relation to Wallonia, its agency is run independently by the Walloon Export and Investment Office (AWEX), which has more than a hundred representations all over the globe, all with an independent budget.

Assisting the firms of Wallonia

“In the case of the Budapest office, we represent not only the Walloon Region and the Brussels Capital Region but also the Grand Duchy of Luxembourg. In fact, we are supported by the Walloon companies' tax euros, so we provide a service to them, more specifically to those companies that AWEX considers exportable. They are entitled to this service throughout the world,” Edit Ránky highlights. In the different countries, they can contact the local representative office and tell them what they need: information, distributor, partner, etc. “In the case of Hungary, it is our job to receive this request and find the best channels and the best information to enable the company to export, find a partner, sell its goods. We don't just help them with information, we always encourage them to come in person, because there is a much bigger culture of personal contacts in Hungary. It is a question of trust. Then, they can see who they are dealing with, they can see the headquarters of the Hungarian company and they have a feeling about how serious this company is. In addition to our traditional methods, we also try to collect information through the contact system we have built up, so that we can offer the best to Walloon companies and provide them with the most accurate information. If they come, we also organize their trip. They can meet the potential Hungarian partner at their premises or even at our office. We also try to follow up the dossiers and collect feedback. We have a data sheet and we try to get feedback on how fast, how well we worked, how the Walloon companies found our service. This is not particularly demanded at AWEX, but I insist on seeing how successfully we are doing our job,” she adds. Valuable partners

Edit Ránky, who has been the head of the Budapest AWEX office since 2010, emphasizes that they are a small office with two people, herself and her assistant. At the top of the network that helps their work is the Belgian Embassy and Ambassador Peinen, himself, with whom they have very good relations, helping each other and sharing all relevant information. “We also have a good relationship with the various chambers of commerce and industry, not only at the Hungarian regional level, but also bilaterally. Whenever I visit the countryside with the Ambassador, we meet with the mayor, the president of the local assembly, the regional chamber of commerce, the agricultural chamber to try to get to know the region, its representatives and the outstanding sectors there,” she says. She also mentions the Belgian Business Club, which is a “very pleasant and excellent platform for networking among the Belgian-Hungarian business community” and has existed as a legal entity since 2015. Edit Ránky herself is a member of their board. Of course, the AWEX office also in contact with other organizations, such as Hungarian export and investment agencies (HEPA, HIPA).

Challenges to cope with

As Edit Ránky notes, AWEX CEO, Pascale Delcomminette, has recently given an interview about how the world has changed. On the one hand, the new coronavirus epidemic had quite a serious impact on the Walloon economy and on exporting companies. The situation has been exacerbated by the fact that last year, there was a huge flood, which caused a lot of damage to companies in the Liège area. This also had a very negative impact on economic development. Obviously, there are priority focus areas and related clusters that outline the main directions. Wallonia's strengths include engineering, aerospace, aeronautics or even agriculture; everything that goes on in pharmaceuticals, and that includes IT and film in all its forms, digitalization, mechanical engineering, smart solutions technologies, environmental protection. “In all these areas, there are very prominent companies in Wallonia. But more than that, it is not only the COVID-19 pandemic that has hit us all, but also the current economic situation, which is the result of politics, of war, which is creating a great crisis, not only in Wallonia but all over the world. We therefore need new strategies, new solutions, creative and precise objectives, especially in sectors that are very, very affected. In fact, there is hardly any sector that is not affected, and this is only the beginning,” the Counselor stresses. In conclusion, she says she is very optimistic. “I am in a position, or adapting to this situation – because it is a new situation for me too – to draw on the reserves of creativity and the new tools that have been brought, in part, by the pandemic and I am thinking here of Internet communication, such as ‘Zoom’, which has become an everyday means of communication. All these help us to achieve the objectives and overcome the problems of inflation and other shortages of raw materials that are affecting Wallonia, as I think they will affect also Hungary and others. It will definitely require flexibility, adaptation and creativity to survive this crisis.”

ECONOMIC TIES: FACTS AND FIGURES

The volume of exports from Wallonia to Hungary (which ranks 18th among the destination countries of Walloon exports) have shown a steady increase in the past few years. In 2020, they reached EUR 385.39 million while this figure for the first nine months of 2021 was EUR 289.82 million, predicting a slight annual increase despite the pandemic. As for Hungarian exports to Wallonia, their volume dropped by over a third to EUR 137.07 million from 2019 to 2020 but the figure for the first nine months of 2021 (EUR 109.37 million) again forecasts a slight increase. Hungary is the 27th largest exporter country to the Walloon region.

Regarding the largest Walloon investors in Hungary, they include Schréder, a company, producing lighting systems, founded 115 years ago in Liège, that operates the former Tungsram manufacturing facility in Pilisszentiván, near Budapest.

Carmeuse is involved in lime production, from a limestone quarry in Beremend, in southern Hungary, which is used in steel production, fertilizer production, etc. It is owned by a large Belgian aristocratic family.

Atenor is a real estate development firm focusing on the construction of eco-friendly buildings like the Váci Greens office complex in Budapest.

GSK (GlaxoSmithKline) Biologicals is present in Gödöllő, east of Budapest, and it plays an important role in the production of childhood, adolescent and adult vaccines.

Weerts Group, a family-owned Belgian enterprise is engaged in creating a huge logistics base in Ecser, just outside Budapest, near the capital’s airport.

FN Herstal: its subsidiary, Browning is to produce 30,000 weapons a year in Kaposvár, in southern Hungary.

GOLD SPONSOR OF GOLD SPONSOR OF

belgian focus

AT BORSODI, PEOPLE COME FIRST

ONE OF HUNGARY’S BIGGEST BREWERIES HAS THE HEALTH AND WELL-BEING IF ITS CUSTOMERS IN FOCUS Having started production in 1973, the history of Borsodi Brewery dates back almost half a century, and it went to private ownership 20 years later when privatized by the Belgian firm Interbrew. In 2012, the latter was taken over by the American-Canadian Molson Coors Brewing Company, the world’s fifth biggest brewer. Borsodi’s General Manager Zsolt Vuleta explains to Diplomacy&Trade how much ‘Belgian’ the brewery has become over the years and what achievements it has had in the fields of sustainability and corporate social responsibility, including the promotion of responsible alcohol consumption.

“One could say that Borsodi Brewery and Belgian beers have a very special and fond relationship. We were the first distributor to popularize the Belgian beer culture here in Hungary. As a company, we put huge emphasis on always improving our portfolio based on the needs and feedback of our customers. That is why we are proud to say that today, Borsodi has the most extensive Belgian beer portfolio on the Hungarian market, which includes popular brands such as Hoegaarden, Stella Artois, Leffe and BelleVue Kriek,” the General Manager highlights.

The elite of Belgian beers

All Belgian beers distributed by Borsodi fall into the premium and super premium category. As Zsolt Vuleta puts it, these beers have one thing in common: they are all high-quality premium beers, however, they all cater to a different taste of consumers. Belle-Vue Kriek is a fruity lambic beer that spontaneously ferments and, when matured, acquires a sour taste that is in harmony with the fruity character. Stella Artois is an elegant, restrained lager beer with more than 600 years of Belgian brewing experience reflected in its harmonious and balanced taste. Hoegaarden’s citrus-light refreshing beer is great to drink at any time of the year. “In Hoegaarden’s portfolio, we can even find Rosée, which is a pairing of Hoegaarden White with raspberries. The last members of our Belgian portfolio are the Leffes, which are abbey specialties. While Leffe Blond is a classic light-bodied, dry, bitter ale, Leffe Dark is a dark Belgian ale with pleasant malt and hop notes and a citrusy, fruity taste. The consumer feedback is very positive, and they are looking for Belgian beer specialties separately, but our Best of Belgium also has individual packaging, which is why we have created an Advent Beer Calendar, which includes 24 excellent Belgian brands,” he adds.

Diversity and successful team culture

One of the most important values cherished by Borsodi Brewery is the ‘Put People First’, stating that the key to inclusive diversity is collaboration and a successful team culture. “At Borsodi Brewery, our employees are at the heart of everything we do as they are producing the high-quality beers that our consumers demand. This value was demonstrated during the coronavirus pandemic. We are proud to say that despite all the challenges, we not only kept all our colleagues, we even managed to increase our headcount. We take care of everyone who works at the ‘frothy side of life’ by motivating them, providing opportunities to advance and improve themselves, and rewarding excellence,” the General Manager points out. He adds that diversity is not a new topic – neither at Molson Coors Beverage Company, nor at Borsodi. “We should be proud of our achievements to date, but we are on a neverending journey to strengthen our people and ensure that we have a workplace where everyone feels valued, safe and respected, regardless of who they are. In order to become the first choice for our employees, consumers and partners, we are working to build an even more inclusive culture that encourages and supports the diversity of our employees. In the spirit of diversity and inclusion, we all take responsibility for recognizing and valuing the individuality of our company and doing our best to promote positive change. Our commitment to this topic is shown by the fact that we joined the Hungarian Business Leaders Forum Diversity Charta last year.”

Helping those in need

At Borsodi Brewery, particular attention is paid to responsible alcohol consumption, environmental and social responsibility. As Zsolt Vuleta explains, “during the past two years, the pandemic situation has complicated matters, however, this has not prevented colleagues from participating in volunteering activities. In 2020, we organized a clothing collection for families in need and the homeless in Miskolc and Budapest, and we collected foodstuffs for them during the Christmas period. We also joined the national #non-luxury bag campaign, in which we organized fundraising for homeless women. In 2020, we organized two blood donations together with the Hungarian Red Cross with the participation of 39 helping colleagues. In 2020, the coronavirus epidemic posed significant challenges to families raising school-age children. With the help of the Hungarian Reformed Church Charity Public Benefit Foundation, our company distributed 20 tablets to families in need, thus supporting home learning.” Borsodi Brewery also regularly supports various charity events with its products. This included the National Blood Donation Day held in Miskolc last year, as well as the various activities of the Belgian, Czech and Mexican embassies. The company supported these events with more than HUF two million worth of beer donations.

Sustainability

Borsodi Brewery has a sustainability strategy running till 2025. The company considers its ‘Our Imprint’ goals set by Molson Coors Beverage Company for 2025 as guidance for its own operations and sustainability efforts. Since 2019, Borsodi has published a sustainability report to monitor its progress. The three main pillars of this strategy are ‘Responsibly Refreshing’, signaling the intent on educating the public on responsible alcohol consumption; ‘Responsibly brewing’, describing the company’s actions for a sustainable operation and ‘Collectively crafted’, meaning its efforts to give back to the community. “We are proud that Borsodi Brewery has reduced the environmental footprint of its plant in the village of Bőcs in 2020, maintaining the zero waste emissions from production achieved in the past, while reducing water and heat energy consumption,” the General Manager notes. In addition, the company focused on producing consistently high-quality beer. In recognition of this, Borsodi Brewery was awarded in 2020 the IFS International Food Standard Certificate with a high rating of 97.3%. This guarantees that the brewery's quality management and food safety management systems are operating at the highest possible level. “We are currently working on our next report for 2021. What we can already say as the most important result from 2021 is that we managed to further fulfill our goal of reducing the ecological imprint of our plant in Bőcs. Also, we have announced to cease the use of PET bottles in the production and distribution of our Borsodi beer,” he adds.

Responsible alcohol consumption

As a member of the Molson Coors multinational group of companies, Borsodi Brewery continuously trains its employees to become credible ambassadors of responsible alcohol consumption, and also places a strong emphasis on responsible brand communication. Zsolt Vuleta emphasizes that Borsodi Brewery is committed to promoting the responsible enjoyment of beer. “It is very important for us that our colleagues become ambassadors not just for our brands, but for responsible drinking. That is why we strive to ensure that when someone joins our company, they are introduced to the principles of responsible drinking during their induction training. This training includes responsible drinking, responsible communication and a beer champion training where colleagues can also learn about non-alcoholic products. At Molson Coors, we have created our global alcohol policy, which includes key principles and guidelines for responsible drinking. This is why all our employees are required to complete a regular training called ‘Alcohol Responsibility: Enjoying our Great Brands Responsibly’. The training offers insight into our employee alcohol policy, tips on responsible drinking and guidance on how to apply this to grow our positive Beer Print sustainability initiative at Borsodi as well. However, at all the events, we organize or support, we try to offer an alternative and make non-alcoholic products available.” In conclusion, the General Manager stresses that “alongside our colleagues, we are doing our best to promote responsible drinking among our consumers. The health and well-being of our customers is of utmost importance to us, as we have demonstrated during the coronavirus pandemic when we were the first brewery to broadcast an ad that was completely filmed during the quarantine to remind all our consumers to behave and drink responsibly and adhere to all health warnings. That is also why we put special emphasis on responsible alcohol consumption in all our campaigns. With our advertisements, we want to educate consumers to be open and familiar with beers of different characters and try different tastes. Beer should be the complementary element of a gathering with friends, an event or a family celebration but, of course, to the extent of responsible consumption!”

belgian focus

SMART SOLUTIONS TO PACKAGING CHALLENGES

VPK GROUP IS A EUROPEAN INTEGRATED PACKAGING GROUP WITH BELGIAN FAMILY ROOTS VPK Group looks back close to nine decades of history, providing the current management and staff with plenty of experience in this business. The company is present with production facilities all over Europe, offering economic and ecological packaging solutions to its customers.

As Bart Dobbelaere, the Managing Director at VPK Packaging Salonta in Romania, also responsible for the Hungarian market, highlights to Diplomacy&Trade that VPK started in Belgium in 1935 as a family business with the production of paper. “That is where we have our roots and that is where a family company developed into an international packaging supplier with more than 6.500 committed employees spread over 70 plants in more than twenty countries. What is the extra value of our group? The fact that the company has remained in the hands of the family, where the tradition has been handed over through generations, allows the group to focus on value creation on the long term. Moreover, VPK’s entrepreneurial spirit remained and is present in every fiber of our company. All around the world, our people are given full responsibility and trust, empowered to run our business as if it was their own, as taking ownership triggers initiative. It’s how we attract talent and manage to keep it, despite the fact that we have evolved from a family business into a powerful, privately-owned multinational. Our intrinsic level of accountability is what makes us so great to work for.”

The market in Hungary and Romania

When talking about the packaging market in Hungary and Romania, Bart Dobbelaere indicates that these are two completely different markets in terms of behavior, customers, prices, price setting, etc. “The Hungarian market is more saturated, and companies understand the packaging business generally better and realize what value packaging can create for them through the entire supply chain. In Romania, there is an overcapacity of production where competition, especially the ones with new capacity, are challenging the price levels and this unfortunately is detrimental to the service level and/or constant quality in many cases. At VPK Packaging, it is our challenge to explain to the customer that not only the final price as such is important, but also the total cost of using our packaging through their supply chain.”

Sustainability

VPK Group has a long tradition of sustainable entrepreneurship. “We have always involved our stakeholders in this journey and consistently applied best practices to optimize the use of resources such as raw materials, energy and water, while reducing emissions, effluent and waste. We recycle and re-use almost everything. We go full circle. Thoughtfully investing in patient capital, we outperform and challenge the market with our long-term thinking. Sustainable growth also means well-considered growth. As a reliable partner, we like to involve you in our way of doing business responsibly, by making our mission tangible and even measurable. We’re in it for the long term, and we’ll do it in our way. That’s what makes us great at what we do, the Managing Director explains. VPK Packaging Salonta has always been committed to quality. Proof of this endeavor is their long track record in quality certifications, including, among others, ISO 9001, ISO 14001 and BRC-IOP (AA grade). “With EcoVadis, we have raised the bar on our commitment to quality, and more particularly sustainability. As the world’s largest and most trusted provider of business sustainability ratings, EcoVadis has helped us translate and document our existing values and good practices regarding Labor and Human Rights, Ethics and Sustainable Procurement more elaborately into our quality management systems. It challenged us in questioning our approach regarding the above-mentioned subjects, allowing us to upgrade the sustainability of our supply chain upstream, as well as downstream. As a result, VPK Packaging Salonta received in 2021 the EcoVadis gold medal rating,” he adds.

Smart packaging

The VPK plant in Salonta has six people in their TCC (Technical Competence Center) creating smart and sustainable packaging solutions and revising existing packaging to be more sustainable. Moreover, there is a platform and a continuous coordinated exchange of information over the group for this purpose. Bart Dobbelaere notes that recently, the steep cost increase of raw materials, energy and others have pushed the customers even more to new solutions. “We go to the customers with our technical competence officers and we check through their supply chain together what we can do in terms of packaging. That can vary from reducing costs by using lighter types of paper, reducing printing surfaces or number of colors to completely rethinking the packaging.”

E-commerce as driving force

In logistics, the coronavirus pandemic resulted in a growing business with the increasing role of e-commerce. As to how – and how much – it affected the packaging business, the Managing Director states that “the epidemic had a huge impact in the short term. From one month to the other, business went down by as much as 50%. Then, it started to come back over the next two-three months with e-commerce being the big driving force there. Of course, e-commerce means more consumption and this higher demand compensated somehow for the losses suffered due to the pandemic situation. In the past for example, delivering 60 books to a bookstore meant using one box, while delivering 60 books to 60 different addresses means 60 smaller boxes. All this has its challenges including that of sustainability. Right now, next to managing the increasing costs, the challenge for our packaging business is to find the right solutions for every type of e-commerce business, reducing as much as possible the carbon footprint.”

belgian focus

INTRODUCING FLANDERS TO HUNGARY

FIT BUDAPEST OFFERS MARKET ANALYSES, RESEARCH AND POTENTIAL PARTNERS TO FLEMISH FIRMS The Flanders Investment & Trade (FIT) representation office in Budapest has two main missions: assisting Flemish companies in their export activities to Hungary and attracting Hungarian investors to Flanders.

As the head of the office, Trade & Investment Counsellor Szonja Bender, explains to Diplomacy&Trade, most of the Flemish companies who contact their office are newcomers to the Hungarian market. “We provide them with market analyses, research and a list of potential partners, linking them with sectoral associations. A small number of exporters already had experience in the CEE region, possibly also in Hungary. For them, we usually carry out a more targeted business partner search by compiling a short list with direct contacts to companies with whom they can expand their partner base in Hungary. In most cases, a representative of the Flemish company will personally visit us during this phase and our office will organize bilateral meetings. About once a year, we receive Flemish companies in the form of business delegations organized either by FIT or VOKA (Flemish Chambers of Commerce and Industry). The latest such mission took place this past September when 20 Flemish companies visited Budapest with a multisectoral delegation. We organized two days of business meetings in a hotel, bringing together nearly a hundred Hungarian partners for them. It was very successful and it actually was the first physical visit abroad organized by FIT since the pandemic closures. The Flemish companies were very happy to be able to travel again in person for export development. Feedback showed that more than half of the participants had already signed a contract with a Hungarian distributor after the mission.”

Bilateral trade

The Counsellor highlights that Flanders has active trade relations with Hungary, with trade increasing year by year. Although the year 2020 saw a 7-8% drop due to the global financial crisis, both exports and imports increased the following year by 20%, fully making up for the previous year's shortfall. In absolute terms, Flemish exports to Hungary amount to EUR 2.7 billion and imports EUR 1.8 billion. Flanders traditionally has a positive external trade balance in this relation. In terms of both exports and imports, machinery and mechanical appliances, chemical and pharmaceutical products and automotive products are the most important product groups. “Based on specific requests received by our office, I see a particular interest from food producers (organic, gluten- or lactose-free, beer, chocolate), machinery and equipment manufacturers, but we also receive frequent enquiries in the fields of sustainable energy, digital technology and pharmaceuticals. There is also high interest in the automotive industry, a key sector of the Hungarian economy. Flanders is a very open economy, the 16th largest exporter in absolute value worldwide. The region accounts for 80% of Belgium's exports, and this proportion is similar to Hungarian-Belgian and HungarianFlemish economic relations,” she says.

Main investors

Belgium is among the ten largest foreign investors in Hungary and Flanders has a fair share in investment relations with Hungary. The majority of Flemish investors established their subsidiaries in Hungary in the early 2000s. The flagship Flemish investor is KBC with its Hungarian subsidiary K&H bank. Among the larger manufacturing companies, Szonja Bender mentions Samsonite's plant in Szekszárd; Resilux's plant in Tuzsér, producing PET bottle preforms; Stephex's horse trailer company in Székesfehérvár; Krismar in Pákozd, with a similar profile; Soudal's logistics distribution center in Budaörs; and Pacapime's cardboard factory in Mórahalom. For Flemish investors, Hungary is still an attractive location, especially because of the improving absorption capacity of the Hungarian market, and there are ongoing expansions of Belgian-owned factories in Hungary, she adds.

Knowing the local market

As the Counsellor points out, Flemish exporters usually bring very high quality, good value-for-money products to the Hungarian market, for which it is not difficult to find buyers. “The biggest added value of our office is the local market knowledge, which helps to identify the right contact persons and take the first steps in establishing contacts. After that, it all comes naturally because excellent goods and services sell themselves easily. The major international fairs organized at Hungexpo in Budapest are an excellent way of building contacts and mapping new partners. We usually accompany companies to these fairs. From the Belgian investors' point of view, I would highlight the activities of the Belgian Business Club in Budapest, BelgaBiz. The club currently has about 50 members: representatives of Belgian companies in Hungary and Hungarian companies interested in Belgium. At least one event per month is organized by the club, which provides a very effective framework for networking and orientation. However, it is regrettable that there are so far very few Hungarian investors in Flanders. The pharmaceutical company Richter has a distribution office with 25 people there, but apart from that there are only smaller Hungarian companies with one or two people present in the region. We hope that this will change in the future and that Flanders will become a more popular investment destination for Hungarian companies.”

Contacts and partners

The FIT office in Budapest actively cooperates with chambers of commerce and industry, both at national and at county level. Szonja Bender says that “I am in a fortunate position because I spent the first half of my professional career, 11 years in total, working for the Hungarian Chamber of Commerce and Industry (MKIK) in the Budapest headquarters and as head of the Brussels representation, so I have good old contacts in these circles.” Another important group of partners are sectoral associations, innovation and industrial parks, and trade representations and agencies. “They understand and follow their particular area of the economy better than anyone else, and we can also work successfully with their members on the basis of mutual interests. During the pandemic, we organized several webinars, both for trade development and investment promotion. We have promoted Flanders to start-ups as a region with an innovative and supportive ecosystem, where Hungarian spin-offs and scale-ups looking for fast growth can find an excellent breeding ground. This was organized in cooperation with the incubators KBC Start it X and Start it @K&H, a subsidiary of the Belgian bank. In the meat sector, we organized a virtual business meeting with the Belgian Meat Office in Teams – more than 80 bilateral meetings. And we recently organized a seminar with the MKIK on business opportunities in Belgium, including Flanders. Among sectoral associations, we regularly work, for example, with the Association of Hungarian Automotive Component Manufacturers (MAJOSZ) and through them with the Zalazone automotive proving ground, where we will be taking a Flemish business delegation this fall,” she highlights.

belgian focus

FOCUS ON INNOVATION AND THE CUSTOMER

SOUDAL'S PRODUCT PORTFOLIO IS DEVELOPED TO MEET THE INCREASING DEMANDS OF THE CONSTRUCTION INDUSTRY The Soudal Group is the largest independent European manufacturer of sealants, adhesives and polyurethane foams for professional and private users. The Belgian family business was founded by Vic Swerts in 1966, with its Hungarian branch set up 33 years later, in May 1999, in Budapest.

As Country Manager János Oltyán explains to Diplomacy&Trade, “at that time, we rented a warehouse with offices in a suburb of Budapest. We started with the typical Belgian concept ‘step by step’ and so, the company was also built up like that in terms of personnel. For several years, we could count on customers who had been buying directly from the Belgian HQ. At that time, the competitors were raging on the market, and when we visited a customer, it looked like the market was already full and all cards had been played ahead. Of course, over the years, the Soudal team has proved that this is not the case. We have learned a lot and developed on the market. We focus a lot on product training for our own employees and especially for customers or professional end users. In recent years, we have put a lot of focus on online marketing and it has been proven that there is very good support for our promotion activities. We bought the current HQ building in the Budaörs Industrial Park, just outside Budapest, in 2005, which, in retrospect, was a very good decision for a long-term investment, which still serves us and will continue to do so in the future.”

Regional center

When Soudal bought the building, the idea was that it would be very suitable for an East European distribution center. It works as a consignment warehouse from where they supply the ex-Yugoslav countries and Bulgaria. As the Country Manager points out, it is quite a complex task, but “together with the Belgian planning team, we're doing it quite well. Over time, we would also have to do enormous remodeling to increase capacity in 2007. In addition, part of the warehouse had to be rebuilt to be fireproof. That was an investment of EUR 233,000. There is now space for more than 1,500 pallets with four forklifts, seven warehouse workers and with three logistics crews. We can say that we work with high efficiency, the total incoming and outgoing goods quantity is over 17,000,000 pieces, in PU foams and silicones, which is about 10,200 tons a year. Since starting supplying this southern region, this area has been expanding with new customers year after year, which spurs us on to be more effective.”

JÁNOS OLTYÁN AND VIC SWERTS

Market leader

Soudal is an international player and expert in chemical construction specialties and is the market leader in Hungary in this product segment. In 2021, with PU foams, they had over 50% market share and over 25% sealants – about 35% in total. “Our activity is highly dependent on the performance of the construction industry, so, in recent years we cannot complain because the government has made strong stimulating measures to make this industry the ‘main driver’ of the economy. We have developed our product portfolio in this direction in order to be able to meet the expectations dictated by the industry. The biggest part of the building industry has been the insulation in recent years and it will remain so in the future due to the energy crisis. Another strong segment is the window and door manufacturing and installation. Since the beginning, we have had a constant focus on this professional channel, and thus, Soudal has become a household name in this segment. Despite the war in Ukraine, an energy crisis, a shortage of raw materials and the still present epidemic, we are optimistic because our parent company has recently also come up with many innovative solutions for the end user who can save time and energy. There is also a strong trend for recycling products, a general trend in building material production. This could be a breakthrough in tackling raw material shortages, which have been a clear aspiration in recent months. We already have end products that are made from recycled materials and not just the packaging materials. That shows how quickly Soudal can adapt to a quick turnaround and it indicates that the focus on innovation is always there,” János Oltyán highights.

Hungarian contribution to R&D

Soudal has a long-term vision for innovation with substantial investment in research and development and with adaptations to local market requirements. Soudal was the first on the Hungarian market to spread hybrid adhesives and sealants instead of selling products with containing solvents. Their FIX ALL range is very popular. In addition, with their EASY BOND foam adhesive, they were also the first to start trading and shaping the market. I am convinced that SOUDAL is one of the most innovative companies in the world, sensitive to trends and expectations of different markets, which is only possible by paying attention to employees and clients. “The GENIUS GUN, a one-handed foam, is a world patent, which also received an innovation award and we are very proud of the fact that there is a Hungarian aspect to this development, a Hungarian engineer also took part in the design process. It was a big and risky switch from traditional foam in 2015, but it exceeded all of our expectations,” he adds.

Good reputation

The Soudal Group is a pioneer in developing sustainable products that are safe for people and the environment. The Country Manager notes that “after having been active in Hungary for 22 years, I can say that we have a very good reputation. Through these years, we have built a strong trust with our customers. Even during the crises (2008-2011, 2020), they could count on us and stayed loyal. We were only able to achieve constant innovation through the innovative products as well as in our organization. That is the only way to maintain stability. Of course, you also need strong support from the parent company, as this is the only way you can take on and keep responsibility. Using continuously improved IT and ERP system offers many opportunities for digitization, which makes the work processes more efficient and smoother and without paper-based documentation. In this area, too, innovative solutions are constantly being developed.”

SOUDAL HUNGARY MILESTONES:

1999 Year of foundation 2005 Purchase of the HQ central building 2006 The company achieved a turnover of HUF 1 billion 2009 SAP B1: introduction of a professional corporate governance system 2010 Start up technical manager concept in the professional segment 2012 Organization of a central European consignment warehouse 2017 Introduction of CRM customer management system 2018 SAP R3: introduction of a professional corporate governance system 2019 Start up on SEE region the Marketing and Technical sales support. 2021 The company achieved a turnover of HUF 5.5 billion (competitor for second place is at HUF 2 billion)

Top company – top team

Soudal is one of the main sponsors of Belgian cyclists participating at the Giro d’Italia race that starts from Hungary this year. As for the values that are common both at Soudal and cycling, János Oltyán puts it simply with a smile: “a TOP company can only have a top team! I could list all the common values like perseverance, will, organization, commitment. This decision of sponsorship was also a hit, we never thought that there would be so many fans among our customers. We joined this sponsorship at a time when the popularity of cycling is increasing in Hungary. It's a very strong motivation for our sales team, it's a very good reason to be proud, after all, LOTTO SOUDAL is one of the best teams in this sport,” the Country Manager concludes.

belgian focus

WEERTS: RIDING THE WAVE OF GROWTH

DEVELOPING INDUSTRIAL PARKS THAT WORK WELL FROM AN END-USER’S POINT OF VIEW

The Weerts Group is a Belgian family-owned business headquartered in Liège with operations also in four other European countries, including Hungary where the Group first appeared in the year 2000.

The Weerts Group was established before 1945 as an agricultural transport company with one truck driven by Hubert Weerts operating in and around Teuven, a small village in the Voeren region of Belgium. After a short break during WW II, the company was restarted in 1945 by Hubert Weerts and his only son, Joseph Weerts (Sr.). From 1960 onwards, the company began to develop into a national and international transport firm (‘Transports Weerts & Fils’), primarily driven by Léa Kremers (Joseph’s spouse) and her sons Pierre and Lambert, the CEO of the Weerts Group, Pascal Weerts highlights the major stages of the history of the Group to Diplomacy & Trade. “The company originally was a pure road transport company, but in 1989, construction started of our first industrial warehouse in Hauts-Sarts in the Liège region in Belgium (54,000 sqm). This marked our transition from a pure logistics player to an integrated services provider. In 1994, at the age of 26, Yves Weerts (Pierre’s son) became the CEO after the unexpected and sudden death of his father. After this time, we continued our expansion as an integrated transport and logistics services provider throughout Europe including expanding into Hungary in 1996. In 2008, we sold our transport division to focus on real estate, warehousing and addedvalue logistics services,” he adds. Since 2008, the Group has continued to grow its real estate business with expansion outside of big box logistics to residential, office, and (in Hungary) SME warehouse development. The group has also expanded into motorsport in 2009. Its racing team WRT is generally considered to be one of the leading endurance racing outfits in the world. Pascal Weerts joined the management team in 2017 as CEO, bringing with him a wealth of experience from his background in law. The Weerts Group now has over a million square meters of logistics warehouse space under development in seven countries throughout Europe. With Yves and Pascal Weerts being the sole owners of the group and both being involved in the day-to-day management, one of the strong points at Weerts Group is short decision lines. This, combined with a wealth of experience and an ever-stronger balance sheet, makes for a compelling proposition for its clients and partners.

High quality logistics buildings

The Group entered the Hungarian market in 1996 at the request of one of its clients. “We were supplying logistics and warehousing services to Danone and they wanted to expand to Hungary, so they requested that we be their provider here as well. We built a small (5,000-sqm) warehouse for them in Budapest’s 17th district, which was sold as part of our transport business in 2008. Following a pause of a few years, we re-entered the Hungarian market in 2016 with a focus on developing smaller warehouses for SMEs. Since then, we have sold over 65,000 square meters of SME warehouse space to over 60 companies. In recent years, we have built off our experience throughout Europe of developing logistics parks by adding big box logistics developments to our offerings here in Hungary. We now develop high quality logistics buildings for lease, as well as ready-to-build plots of land for developers. While there is plenty of land currently for sale throughout Hungary, we have found that many developers do not have the time (or want to take the risks) of rezoning and performing the necessary infrastructure developments to develop on what was previously farmland. It can be a bit time-consuming (compared to some countries) before you actually obtain the building permit. Because of this, we see a strong demand for properties that are ready to be built with a valid permit,” the CEO explains.

Reasons for growth in the logistics market

The logistics sector has been a winner during the epidemic as the rise of e-commerce is creating additional warehousing needs. As to what extent the Group has managed to take advantage of this sudden situation, Pascal Weerts points out that “while the growth of the e-commerce business has certainly been a boon for the logistics sector, we see this as only one contributing factor to the current growth in the market. Another change in the current business model is a move away from just-in-time (JIT) manufacturing. It worked well to reduce warehousing costs until the disruption in the supply chain, caused by the COVID-19 pandemic, resulted in factories shutting down. Companies became more aware of how much risk they accept by using a JIT model and are now moving more to a just-in-case model. Another major change is the re-consideration of where to store goods. As transport costs have gone up, companies are turning to re-shoring and becoming less reliant on Asia.”

Scaling up operations in Hungary

As one of the Group’s latest investments in Hungary, in the summer of 2020, Weerts purchased a plot in Ecser, next to the M0 ring road and near the Ferenc Liszt International Airport to create a 120,000-sqm warehouse. “This was (at the time) our largest investment to date in Hungary. After much work to make sure that we met both our own needs for the plot as well as the concerns of the local municipality, we finally started construction of the first 40,000-sqm building at the end of 2021. Around that time, we sold the project as a ready-to-build plot to CTP Hungary, a major real estate developer in this country, as part of a package deal that included a finalized 46,000-sqm development as well as another ready-to-build 15-hectare plot in nearby Nagytarcsa. We simultaneously used this opportunity to scale up our Hungary operation with the purchase of a 66-hectare plot in Vecsés, also in the area, that will have a total of 205,000 square meters of big box logistics as well as 36,000 square meters of smaller buildings for SME clients,” the CEO highlights.

Family involvement

The Weerts Group has major international operations but still, they have managed to preserve the family enterprise aspect of their business, according to Pascal Weerts. “We believe in the business model of family ownership with a strongly engaged shareholder with a long-term view. As stated earlier, our background is a family-run logistics company. Our chairman, Yves Weerts drove trucks himself in his early years after joining the family business. We feel that this history has given us a very valuable perspective in knowing exactly what it is like to be a tenant of a logistics building and this allows us to develop industrial parks that work well from an end-user’s point of view. In our experience, family involvement has been a strong motivator for our team.”

Continuing growth

As regards the European and Hungarian logistics markets in the years to come and the place of Weerts Group on these markets, the Group CEO is of the view that “there certainly are many challenges to the current market. Besides the pandemic in Europe, we see disruptions caused by the Ukraine war, the breakdown of global supply chains and China’s zero COVID-19 policy. Despite these challenges, the logistics market is still currently growing. We see this growth continuing in the coming years throughout Europe including Hungary. We believe that in Hungary, the growth will accelerate not just in the Budapest region, but especially in major industrial centers throughout the country. Weerts Group is in a good position to ride this wave of growth by having a strong local team backed by the expertise and experience of our team in Belgium.”

belgian focus

A TOUCH OF BELGIAN HOSPITALITY

THE THREE CORNERS HOTELS IS ABOUT TO OPEN A FOUR-STAR HOTEL IN THE HEART OF BUDAPEST It is already ten years that The Three Corners Hotels entered the Hungarian market, following previous 25 years of successful hotel operations at the Red Sea in Egypt. The acquisition of Hotel Art *** Superior, back in early 2013, was a milestone, and the company went steadily forward ever since. It is now operating three very successful boutique type hotels in Budapest, in the 3- and 4-star market, each with its own identity and character. All hotels have however one thing in common: a true Belgian Hospitality spirit!

When asked about the secret of success, the CEO of The Three Corners Hotels & Resorts, Didier Lambrecht, smiles happily. He simply says it comes down to encouraging and empowering the staff to deliver The Three Corners Promises under the umbrella of ‘A Touch of Belgian Hospitality’. He continues explaining the core values of the Budapest based hotels by saying that “all our Budapest hotels offer excellent locations and diverse services and facilities. The boutique type city hotels, each with its own personality and characteristics, offer accommodation in the 3-star Superior and 4-star category. Besides that, our staff is well trained and passionate on delivering our Belgian Hospitality Spirit: from our ‘Sweet Dreams’ concept with ultra-comfortable beds, fine linen and choice of pillows, to the ‘Wake-Up-With–Us’ experience offering you a delight full breakfast to start your day.”

Stay connected

The CEO adds that their ‘Surprise & Delight’ approach will enhance their guests’ perfect stay in Budapest, whilst enjoying the free coffee facilities, luggage services, friendly bar prices and much more. And last, but not least, Didier Lambrecht adds, “we focus on our technology promise ‘Stay Connected’, ensuring our customers’ personal entertainment and connectivity to their friends, work and family, be it from their room or our comfy lounge and lobby.”

Successfully coping with the challenges

In the previous Belgian Focus, published in the December 2019 issue of Diplomacy&Trade, Didier Lambrecht said “You must change in order to remain the same!“ As to how much The Three Corners lived up to this strategy since then, he stresses that “yes, we did change a lot. The worldwide pandemic taught us many lessons and I am very proud that we could secure our operations both in Egypt and in Budapest. In the past two years, constant change and flexibility was something which helped us to remain the same, namely being successful. Furthermore, the strategies we developed during the pandemic have contributed to maintain our ‘pole position’ in the Budapest market. We equally developed and invested in new technologies and launched a completely new website. I am proud to say that we managed to keep most of our employees and when the time arrived, we were ready to welcome our guests with the brightest smile!”

The Three Corners believes in the Budapest market

As regards to the Budapest hotel market today and in the near future, the CEO confirms that the pandemic was not an easy time for the global tourism industry “but the worst is already behind us and customers are eager to travel again! Budapest is not an exception to this global trend and we can see increasing occupancies for the last couple of months.” During these past two years, the hotel chain focused on their strengths and development opportunities as they firmly believe in Budapest and its future tourism growth potential. “As a result of that, we are very happy to confirm that we will open in early summer of this year, a brand new 4-star hotel in the very heart of the city!” Downtown Edition

Elaborating on this new hotel opening, Didier Lambrecht highlights that The Three Corners Downtown Edition Hotel**** enjoys a truly privileged location in the heart of the capital city of Hungary, hence its name. “We look at Budapest as the ‘Spice of Central Europe’: the city embraces unique architecture and this has been the main source of inspiration for our unique interior design,” the CEO continues. Besides the 70 guest rooms and four luxury suites, The Three Corners Downtown Edition Hotel offers a complete range of 4-star services and amenities, such as spacious lobby with bar, meeting rooms, complete wellness, outdoor facilities and on-site parking. “We are confident that this new hotspot in Budapest will please the most demanding traveller,” he adds.

With sustainability in mind

In conclusion, the CEO of The Three Corners Hotels & Resorts emphasizes that “we will continue our sustainable growth! A 5th new hotel project is in the pipeline, with yet again a fabulous location, just off Andrássy boulevard, nestled in a historic building of the 19th century in the Hungarian capital. This future 4-star hotel is now in its development phase and we anticipate the opening in late 2023.” (X)

FOR FURTHER INFORMATION on The Three Corners Hotels, visit www.threecorners.com