Written by 2:15 pm EU Investment

Another Several Million Chinese Investment in Hungary

The Chinese-owned Halms Hungary Kft. is investing more than 40 million euros to set up an electric car parts production plant in Debrecen in eastern Hungary, with the Hungarian government providing a 1.5 billion HUF (EUR 3.7 million) subsidy for the investment, which will create 300 new jobs, Levente Magyar, Parliamentary Secretary of State of the Ministry of Foreign Affairs and Trade, announced in Budapest on Tuesday.

He added that the new Chinese investment will be in the industry of the future, and the Hungarian government is paying special attention to the electric car industry and complementary industries, because these will turn the Hungarian economy into a modern, 21st century one.

Magyar said that

one of the world’s leading electric car parts companies is setting up its first plant outside China, and that the strategic decision to build in Europe was made after much deliberation, and eventually Hungary was chosen.

In his speech, the Secretary of State pointed out that in the second quarter of this year, the Hungarian economy achieved the third highest growth rate among the EU Member States. Although the economic effects of the war in Ukraine will also reach Hungary in the coming months, the fact that new investments are being announced in this difficult period shows the country’s economic strength and ability to attract capital, he added.

Matthew Shen, managing director of Halms Hungary Kft, said the owner Huashou provides innovative, integrated solutions for the world’s automotive and electric vehicle manufacturers, mainly aluminium components. They are confident in the future of electric vehicle manufacturing and have decided to invest in Debrecen, where they will operate digitalized, automated production lines, in order to have closer contact with European customers, the managing director stressed.

Related article

HUF 3000 Billion Investment Creates 9,000 New Jobs in Hungary

HUF 3000 Billion Investment Creates 9,000 New Jobs in Hungary

The world’s largest battery manufacturer has chosen to build its second European plant in Hungary.Continue reading

At the press conference, Debrecen Deputy Mayor Lajos Barcsa said it was a great achievement that in a time of global economic crisis, another Chinese investment is being made in the Southern Industrial Park of Debrecen, where Huashou’s investment will be the third Chinese investment. The deputy mayor stressed that

Debrecen will become a center of electromobility as the European city of the future.

The city’s many educational institutions, the airport, the well-developed industrial infrastructure, and the availability of expertise will contribute to an investment-friendly environment.

Debrecen will also be home to Hungary’s largest ever investment, worth HUF 3,000 million (EUR 7.5 billion), also with Chinese participants. China’s Contemporary Amperex Technology Co. Limited (CATL) will directly create 9,000 new jobs in Debrecen. Minister of Foreign Affairs and Trade Péter Szijjártó said that the world’s largest battery manufacturer had chosen Hungary to build its second European plant after two and a half years of negotiations, following huge international competition. He stressed that this is one of the five largest greenfield investments in Europe in the last ten years.

Featured photo: MTI/Bruzák Noémi

Source link