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New giga-investment in Hungary: Bosch announces huge expenditure
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Robert Bosch Power Tool, a local unit of German engineering giant Bosch, has announced a HUF 70 billion (EUR 181 million) investment to set up a logistics centre and expand battery and tool manufacturing capacity in Miskolc, in northern Hungary, Péter Szijjártó, the minister of foreign affairs and trade, said on Friday.
The government is supporting the investment
The government is supporting the investment with a HUF 10 billion (EUR 25.8 million) grant, he said. Hungary has weathered the past years’ crises well thanks to “one of the most competitive tax systems in the world, which created the most attractive environment to investors in central Europe,” he said.
Despite all difficulties, Hungary’s economy grew by 4.6 percent last year, the number of jobholders was above 4.7 million for six consecutive months, and exports jumped by 19 percent to EUR 142 billion, he said. Meanwhile, investments worth EUR 6.5 billion flowed into Hungary last year, creating high value-added jobs, he said.
Bosch, which employs some 20,000 people in Hungary, has brought hundreds of billions of forints worth of investments to Hungary in the past years. The investments helped improve Hungarian technology, Szijjártó said. Bosch is contributing to the government’s goal to “reindustrialisation and to move from Made in Hungary towards Invented in Hungary,” he added.
German companies are the largest group of investors in Hungary, and bilateral trade between the two countries hit a record EUR 60 billion by November last year, he said.
A huge investment
The company will invest more than HUF 54 billion to create a logistics and distribution center in Miskolc to meet the ever-increasing storage and distribution needs, and more than HUF 15.7 billion to expand its production capacity. The Hungarian government will provide a total of around HUF 10.2 billion in post financing non-refundable cash subsidies for the two investments on the basis of an individual government decision (EKD).