Budapest (MTI) – German carmaker Mercedes will build a new plant next to its existing one in Kecskemét, in central Hungary, Foreign Minister Péter Szijjártó said on Friday.
The plant to be built at costs of 1 billion euros is expected to produce 150,000 cars annually. The development project will create 2,500 new jobs and the Hungarian government has granted 12.9 billion forints of support (EUR 41m), he added.
The government has successfully achieved its target to make Hungary a production hub for central Europe, he said. Industrial output has increased by 26.3 percent in the past six years, he added.
Car manufacturing continues to represent the backbone of the economy, with record-high production value registered last year, which increased by another 5 percent in the first five months of this year, reaching 3,349 billion forints. The sector currently represents 31 percent of Hungary’s industrial output and employs 157,000 people, up by 13 percent from the end of last year, Szijjártó said.
The Hungarian Investment Promotion Agency (HIPA) said in a statement that the new plant will be the biggest-ever greenfield investment in Hungary. Preparations for the plant’s expansion are scheduled to start later this year, they added.
Christian Wolff, Mercedes’ Hungarian unit chief, told a press conference in Kecskemét that like the first factory, the second one will also include a chassis production line, a paint shop, a new assembly line and a supplier park.
By building its second factory, Mercedes is committing itself to the region for the long term and can therefore guarantee the city of Kecskemét a stable outlook for the future, he said.