industrial

Investments by Bavarian companies to save hundreds of jobs, says Hungarian minister

germany münchen

The Hungarian government has signed new investment agreements with Bavarian automotive industry supplier Rosenberger and motorhome, campervan and caravan manufacturer Knaus Tabbert, which will create and save hundreds of jobs, Péter Szijjártó, the foreign affairs and trade minister, said on Wednesday.

Rosenberger, which employs 4,000 people in Hungary, is investing 13.5 billion forints (EUR 38.0m) at its bases in Nyírbátor, Jászárokszállás and Jászberény, Szijjártó said on Facebook. The investment, which the government is supporting with a 3.7 billion forint grant, will create 150 jobs, the minister said.

Meanwhile, Knaus Tabbert will receive a 500 million forint grant for a 1.3 billion forint capacity expansion at its motorhome plant in Nagyoroszi, in northern Hungary, he said.

The company, which produces more than 8,000 vehicles a year, will also begin manufacturing self-driving motorhomes, Szijjártó said. Knaus Tabbert’s investment will save 400 jobs, he added.

The federal state of Bavaria is Hungary’s number one economic partner in Germany, Szijjártó said.

As we wrote on Monday, German car maker Mercedes-Benz will invest 50 billion forints (EUR 141m) at its plant in Kecskemét, in central Hungary, to add fully electric vehicles to the production palette, read more details HERE.

nemesvámos bock worker
Read alsoGerman Bock to invest EUR 1.7m at Western Hungary bases

Mercedes invests EUR 141m to make fully-EV cars in Hungary

Christian Wolff, CEO of Mercedes-Benz Manufacturing Hungary

German car maker Mercedes-Benz will invest 50 billion forints (EUR 141m) at its plant in Kecskemét, in central Hungary, to add fully electric vehicles to the production palette, Péter Szijjártó, the minister of foreign affairs and trade, said on Monday.

The government is supporting the investment, which will “cement the future of more than 4,400 jobs”, with a 15 billion forint grant, Szijjártó told an online press conference at the plant.

The minister called the investment “a milestone” for the Kecskemét plant, as well as for the Hungarian economy and car industry.

“One of the world’s largest car makers with cutting-edge technologies has decided to bring such a significant high-tech investment to Hungary at a time when the global car industry is not exatly about new investments,” Szijjártó said.

This new project has further strengthened Hungarian-German economic cooperation, he added.

Christian Wolff, CEO of Mercedes-Benz Manufacturing Hungary, said that

the production of Mercedes’s EQB brand fully electric vehicles could start in Kecskemét from Q4 in 2021.

The model will have its world premiere next spring, he added.

A new pressing plant, announced in March 2020, will start operation in 2022.

The plant in Kecskemét turned out about 190,000 compact vehicles last year.

As we wrote on July, important announcements were made at the Mercedes-Benz plant in Kecskemét: after the global pandemic, production will resume to normal in August, and for the first time in Hungary, Mercedes has started the production of plug-in hybrid cars. Details HERE.

Audi solar plant inauguration in Győr
Read alsoEurope’s largest rooftop solar park inaugurated at Audi Hungaria’s logistics center in Győr

Shanghai-based Semcorp to set up a EUR 182.6m plant in Debrecen

china hungary flag


Shanghai-based Semcorp, a supplier of parts for electric vehicle batteries, will set up a 65.5 billion forint (EUR 182.6m) plant in Debrecen, in eastern Hungary, Péter Szijjártó, the minister of foreign affairs and trade, said in a video message on Facebook on Tuesday.

The government is supporting the construction of the lithium battery isolation membrane plant, which will create 440 jobs, with a 13 billion forint grant, Szijjártó said.

The 100,000sqm plant will be Semcorp’s first outside of China, he added.

Szijjártó said

Semcorp had picked Hungary over three other European countries competing to become the site for the new plant.

With the plant, the volume of Chinese investments in Hungary will exceed 5 billion dollars. Chinese-owned companies employ more than 15,000 people in the country.

Budapest, Hungary, sightseeing, capital
Read alsoThe Chinese and Vietnamese bought apartments in Budapest by the dozen

Hungary to make sniper rifles

Hungary to make sniper rifles.

HM Arzenál Zrt., a company under the Hungarian Defence Ministry, will continue to make Unique Alpine AG’s sniper rifles and hunting guns in its factory in Kiskunfélegyháza. 

According to Index, Gáspár Maróth, the government commissioner for armed forces development, said before signing the relevant German-Hungarian industrial cooperation agreement that the Bavarian company will transfer not only the production facilities to Hungary but also its research and development units. The HM Arzenál Zrt. and the Unique Alpine AG

have been developing new weapons for one year.

He added that key players in the sector are already interested in the new products of the two companies. Furthermore, the police, the prison services, the military, and the National Tax and Customs Administration of Hungary will also buy the new weapons made in Kiskunfélegyháza.

Maróth stated that the investment can play a key role in the development of the Hungarian economy. The factory showed its newest TPG-3 sniper rifle made by Bavarian engineers and Hungarian developers for a Canadian tender and the AR–10 NX and AR–15 NX semi-automatic rifles allowing

more accurate targeting than other products in their category.  

HERE we wrote about six weapons made by Hungarians trying to introduce our readers to Hungarian inventions or products that might be less known. Some of them were only prototypes, but others have even influenced the conduct of modern warfare.

The emergence and number of the Soviet armoured vehicles and heavy tanks in 1942 incited the production of Hungarian anti-tank missiles, as at that time, the Germans were reluctant to hand over the blueprints of their own panzerfaust. The missile department of the Institute of Military Technology embarked on the development of two types. The smaller was the 60mm diameter 44M anti-tank hand-held missile launcher, the larger was the 215mm 44M mace projectile, which was

the first known heavy anti-tank missile in the world,

with a charge of more than four pounds. It had its own portable dual launcher that could be operated from a truck-bed or the ground. Hungary was the third state in the world – only after the Third Reich and the US – to build deployable anti-tank missiles.

The Turán was a Hungarian medium tank 

developed during WWII. It was inspired by and used solutions from the Czechoslovak Škoda T-21 medium tank. The Turán was produced in two main variants: the 40M (or Turán I) with a 40mm gun and the 41M (or Turán II) with a 75mm gun. There was also a prototype variant, the 43M (or Turán III).

In total, only 424 were made. The Turáns were employed by the 1st and 2nd Hungarian Armoured Divisions, as well as the 1st Cavalry Division, in 1943 and 1944.

 There is only one known surviving Turán tank, 

which is a Turán II on display at the Kubinka Tank Museum.

Featured image: illustration

Chinese telecommunications giant Huawei to set up R+D centre in Budapest

Huawei in Budapest hungary

Chinese telecommunications giant Huawei is setting up a research and development centre in Budapest, Minister of Foreign Affairs and Trade Péter Szijjártó said on Tuesday.

The investment, which will create jobs for at least 100 Hungarian engineers, is Huawei’s third in Hungary, Szijjártó said.

Szijjártó said cooperation between Hungary and China was better than ever. The investment represents a milestone in Hungary’s Opening to the East strategy, he added.

The new centre will focus on artificial intelligence, streaming, image processing, signal transmission technologies and extremely large distribution systems, he said. The development project will give the country an opportunity to further boost the reputation of Hungarian engineering skills, he added.

He noted that

Huawei was the first Chinese company that Hungary signed a strategic cooperation with seven years ago.

Players in the Hungarian telecommunications market have greatly relied on the company’s technologies over the years, he added.

The company’s logistics centre in Hungary is its largest outside China

, he said. He added that despite the pandemic, Huawei has announced a significant investment in Hungary, and he thanked the company for its donations to anti-pandemic efforts.

Szijjártó said the strategy of opening to the East had resulted in a 22 percent increase in Hungarian exports to the East over ten years and 25 percent growth in trade. Last year, 60 percent of investments, in value terms, in Hungary came from the East and 40 percent of new jobs were linked to such companies.

Huawei in Budapest hungary

He said one of the main objectives of the strategy was to develop close, pragmatic cooperation based on mutual benefits with China. Over the past ten years, 5 billion US dollars-worth of Chinese investments have been carried out in Hungary, and Chinese companies employ 15,000 Hungarians, he added.

Szijjártó said it was easy to understand why Hungary was the first EU country to join the Belt and Road initiative.

Last year, China was Hungary’s 10th most important trade partner, he added.

As we wrote yesterday, Chinese-owned Chervon Group will set up a 17.5 billion-forint car parts plant in Miskolc, in north-east Hungary.

Lenovo to build first European plant in Hungary
Read alsoLenovo to build manufacturing plant in Hungary

Breaking news – gas poisoning at bioethanol plant in Hungary

Hungary accident industry

Thirteen people have suffered severe gas poisoning and another 15 light injuries in an industrial accident at a bioethanol plant in Dunaföldvár, in central Hungary, on Friday. A seven-cubic-metre outdoor tank was refilled with an inappropriate substance, causing a chemical reaction which produced chlorine gas, the spokesman of Tolna County’s disaster management directorate told MTI.

Firefighters were at the site working to prevent the spread of the toxic gas, Péter Köves said. Also, industrial safety specialists and the disaster management’s mobile laboratory are on site taking measurements and appropriate action, he added.

Hungary accident industry
MTI/Vasvári Tamás

As no concentrated presence of the toxic gas has been measured in the air beyond the plant,

local residents are not in any danger,

he said. Pál Győrfi, the spokesman of the national ambulance service, told MTI that several ambulances, four helicopters and a medical unit specialising in mass accidents have been dispatched to the scene.

All those injured received medical aid

and were taken to nearby hospital for further medical assessments, he said.

Europe’s largest rooftop solar park inaugurated at Audi Hungaria’s logistics center in Győr

Audi solar plant inauguration in Győr

Hungary is in the forefront of the fight against climate change, Foreign Minister Péter Szijjártó said in Győr, in western Hungary, on Wednesday, attending the inauguration of a solar plant built by car maker Audi Hungaria.

In his address, Szijjártó noted Hungary’s commitment to increase the share of solar energy in its total energy production to 90 percent by the 2030s, but said that the government’s approach was “realistic and reasonable”, allowing equal room for the economy, competitiveness, and environment protection.

“We all want a greener future, clearer water and air, but we also have to retain jobs and the country’s competitiveness,” he said.

Addressing a separate press conference held by a cargo company that serves Audi, Péter Szijjártó presented the first of its newly developed electric lorries.

“The Innovative Group has developed and put into service a 40-tonne, fully electric lorry,” he said, adding that the lorry was “unique”. He noted that

by 2022, all of the company’s ten trucks delivering cargo between Audi’s plants will be fully electric.

The vehicle will reduce annual greenhouse gas emissions equivalent to its weight, contributing to the city’s environmental protection targets, Szijjártó said.

electric lorry
Gyõr, Hungary. Photo: MTI

“Hungary has taken a new step forward in fighting climate change,” the minister said.

Hungary Germany Viktor Orbán automotive
Read alsoProfit for silence: this is why the German industrial and political elite cooperates with PM Orbán

Lenovo to build manufacturing plant in Hungary

Lenovo to build first European plant in Hungary

Chinese tech giant Lenovo Group will build a manufacturing facility in Hungary, the country’s Minister of Foreign Affairs and Trade Péter Szijjártó said here on Tuesday.

The 8.2-billion-Hungarian-forint (26.3 million U.S. dollars) plant will be built in Üllő on the outskirts of the capital, with a two-billion-forint government grant, according to Szijjártó.

“The investment will create 1,000 jobs and introduce advanced technological solutions. Production at the plant could start in early 2021,”

the minister said, adding that the investment would accelerate industrial production based on development, meaning it offers great opportunities for the Hungarian economy and Hungarian engineers.

Szijjártó stressed that

Lenovo’s decision confirmed that leading technology companies trusted Hungary and justified the country’s “Eastern Opening” policy, underlining that global competition for Chinese investment was fierce.

Read alsoNext-generation combat vehicles to be manufactured in Hungary − VIDEO

The Hungarian meat industry to collapse?

swine flu animal

The appearance of the African swine fever in Germany can result in severe problems both in the European and the Hungarian meat industry. China already banned German pork products which means that they are going to flood the European markets, causing a significant decrease in the prices and long-lasting headache for most of the farmers.

According to Magyar Nemzet, the African swine fever is harmless on humans, but it is already present in wild boars in Germany. That fact was enough for China to ban all German meat products from its markets. China is one of the most important markets of the pork products since

swine fever killed masses in the country, and authorities did that, as well, to contain its spread.

Tamás Éder, president of the Hungarian Meat Association, confirmed that the German pork products stuck in Europe might cause severe problems for the sector in Hungary, as well. The German prices already started to fall, which can cause a similar effect in Hungary, too, he added.

 

 

On the market of the European Union, pork meat products will be cheap since they will appear in large quantities. However, those countries, that can export their meat products to China can take advantage of the current situation. 

Therefore, Mr Éder added that retailers should not buy cheap German products but should choose the Hungarian ones like before to avoid the collapse of the sector. The biggest trade union of the European farmers, the Copa-Cogeca, said in its statement that all stakeholders in the industry should remain calm. They highlighted that thanks to the strict European regulations and the quick reaction of the German authorities,

there is a real chance that the further spread of the African swine fever can be stopped.

They reminded that the German authorities found infected wild boars near the Polish border, in Brandenburg, but there are not too many pig farms in the region. Thus, the organisation asks all market players to take into consideration all measures authorities introduced to stop the spread of the virus.

Between January and May, the Hungarian meat of swine export volume decreased by 19 pc to 12 thousand tonnes compared to the quantity sold abroad in 2019. Hungarian companies export most of the meat to Romania, Croatia and Italy. György Vámos, general secretary of the Hungarian Trade Associations, said before that German meat products could appear in the Hungarian market but 

retailer chains have long term contracts so they would not have that massive effect on the sector.

Profit for silence: this is why the German industrial and political elite cooperates with PM Orbán

Hungary Germany Viktor Orbán automotive

Real investigative journalism is rare in Hungary, but Direkt 36 is one of the flagships of such Hungarian media outlets. They published an article about the interconnectedness of the German automotive industry and the Orbán-government, from which it is clear how they serve the interests of Audi or Mercedes and, in return, these companies use their influence to edge off criticism towards PM Viktor Orbán in the German political elite. Details below.

According to Direkt 36, the leader of a big German automotive company revealed at a reception in Frankfurt that he has the private number of Péter Szijjártó, minister of foreign affairs, and he can call him anytime, provided the problems are connected to one of their Hungarian factories. He added that it happened once that even PM Viktor Orbán helped “them” out in 2015 during the Volkswagen emissions scandal, during which

he represented the interests of the automotive companies

in the European Council and, thanks to that, the relevant new regulation was full of loopholes. That is not surprising if we take into consideration that almost 13 pc of the Hungarian GDP comes from the German automotive industry and its suppliers, so it is good to be in a good relationship with them.

Direkt 36 talked with dozens of diplomats, analysts, and business leaders about the issue and summarised their findings in 5 important topics.

The German mentors of PM Viktor Orbán

When Orbán started his political career, his first ally in Germany was the liberal Otto Graf Lambsdorff. However, when he changed his political agenda and became conservative in the mid-90s, Helmut Kohl became his greatest mentor. Kohl taught him many things about politics, but Gerhard Schröder defeated him in 1998. Therefore,

Orbán could not develop good relations with Berlin, so he changed his focus to the conservative southern German states (Bavaria and Baden-Württemberg)

where Audi, BMW, Mercedes, and Bosch have their headquarters.

PM Viktor Orbán’s foreign strategy

Apart from the official communiqué, PM Viktor Orbán sees Hungary as the centre of the Russia-Germany-Turkey triangle. Furthermore, they should be aware of what leaders think in Beijing and Washington as well. However, according to a high-ranking US government official, Orbán thinks that, materially, Hungary depends on Russia and Germany the most. He also added that the USA only had values which Hungarians also have.

The new pact between the German automotive sector and the government

According to Direkt 36, the Hungarian government thinks that the jobs the German automotive industry creates in Hungary are indispensable. However,

they try to expel German capital from other sectors, for example, the media.

Since the automotive companies get tremendous allocations, they do not protect other German companies, for example, the Deutsche Telekom’s Hungarian interests in 2012. And that is how county newspapers and the biggest Hungarian news portal, Origo.hu, went to pro-government oligarchs in the last few years.

Furthermore, even though Orbán wanted to boost the Hungarian economy with loans, he accepted the denial of the German government about the plan and promised to keep the state budget in balance. His calculations were correct because the German government appreciated the step.

The independent Hungarian media and Germany

There are still some independent media outlets in Hungary that try to survive in Hungary with the financial support of the people and the advertisements of companies. For example, Magyar Hang, the second-biggest Hungarian weekly, started to negotiate with German companies about possible advertisements. However, it came to light that even though cooperation would be worth it for the company,

they do not want to risk their good relationship with the government. 

And Orbán knows that the Germans are rational people, and if business goes well, they will not hesitate to cooperate with the government. To edge off all conflicts, there are hotlines between German companies and the Hungarian government and people, like Klaus Mangold or even former European Commissioner Günther Oettinger, who help everything go smoothly. If Mr Orbán had luxury cars and many girlfriends, it would be a completely different story.

The relationship with Angela Merkel

Even though PM Orbán thinks that politics is not for women, they have a good work relationship, and the Hungarian PM tried to convince her not to resign in 2021. In 2015, on the edge of the migration crisis, they were each other’s main antagonist but, interestingly, that helped them to win elections at home.

According to Direkt 36, even though pro-government papers always support the German nationalist Alternative für Deutschland (AfD) and criticise the conservative CDU,

the government knows that the AfD cannot win the elections,

so they regard CDU as their partner in Germany. Moreover, it was best for Angela Merkel that PM Orbán led the campaign against Manfred Weber last year, with which he also acquired some plus points in the eyes of the German chancellor. 

PM Orbán’s future chances

In return, for example, Angela Merkel said in August 2019 that the EU money Hungary receives is well-spent even though the government’s opposition always states that Orbán and his family and friends steal most of that money. And the mutual gestures did not stop: Hungary is Germany’s biggest arms purchaser – the country buys more weapons from the German arms industry than the Bundeswehr. Moreover, they gave further billions of forints to the German companies during the coronavirus crisis.

And that is why most people talking to Direkt 36 cannot imagine that Germany would support linking the EU funds to rule of law. Interestingly, the CDU is not clear regarding that question because its groups in former West Germany would support it while the

party members from former East Germany see Mr Orbán as a hero.

The other important question is the future of Fidesz in the European People’s Party. However, Direkt 36 says that negotiations in both issues went well between the two governments. To have an agreement in both issues, Gergely Gulyás, Minister of Prime Minister’s Office, was in Berlin, and CDU-president and German Minister of Defence Annegret Kramp-Karrenbauer came to Budapest as well.

An expert of the EPP says that many would like the Germans to lead the anti-Orbán campaign inside the party, but the CDU does not want to take the flag. Germans think that they can influence Orbán in Brussels, but

they no longer care what he does at home.

Next-generation combat vehicles to be manufactured in Hungary − VIDEO

Hungary signed an agreement with Rheinmetall, Europe’s leading provider of army equipment, to establish a joint venture and production facility to manufacture the most modern Lynx infantry fighting vehicle.

As Hungary’s Secretariat of the Ministry for Innovation and Technology and the Commissioner for Defence Development announced, Hungary has started one of its most significant programs to help develop and modernise the country’s military capabilities. The agreement – that is worth over two billion euros – was signed on the 17th of August in Unterlüss, Germany, Infostart reported. As part of the cooperation,

Rheinmetall, the European defence industry company and the Hungarian government will establish a joint venture and build a production plant in Hungary which will manufacture the state-of-the-art Lynx infantry combat vehicles.

Hungary is the first NATO and EU member state who decided to order the newly developed combat vehicle of the Düsseldorf-based company. Currently, the Lynx is only an innovative prototype. Still, its capabilities are already known, and countries like the U.S., Australia and the Czech Republic are among the potential future buyers of the vehicle.

The deal constitutes a central part of the Hungarian military and defence force development program. This program aims to make the Hungarian military a world-class force and one that contributes to addressing the security challenges in the Euro-Atlantic region. In a joint statement, László Palkovics, the Minister of Innovation and Technology and Gáspár Maróth, the Commissioner for Defence Development emphasised that Hungary is aiming to restore the heavy weaponry of its ground forces as part of its commitments to NATO.

Rheinmetall Lynx combat vehicle-military
Photo: Wikimedia Commons by Wolpat

“After the tanks and artillery, it is now the turn of the infantry combat vehicles, which are the backbone of the capability package” – they also added that – “in its category, the Lynx proved to be the most appropriate choice to serve this pivotal role in the Army’s capabilities spectrum for decades to come.”

They also noted that

this cooperation extends beyond military technology modernisation; it is a partnership with a leading European company that can help the recovery of the Hungarian military industry, and it expands the Hungarian industrial portfolio as well.

As Armin Papperger, the chairman of the executive board of Rheinmetall AG said in his announcement: “We are proud to make a significant contribution to expanding Hungary’s defence technology capabilities in cooperation with the local industry. We are looking forward to working with our Hungarian friends and partners and we will do everything for the long-term success of our agreement.”

Hungarian Defence Forces New Leopard Tank
Read alsoThe first Hungarian Leopard tanks are ready

Hungary industrial output drops by 7.8 pc in June

Daily News Hungary economy

Output of Hungary’s industrial sector fell by an annual 7.8 percent in June, data released by the Central Statistical Office (KSH) in a second reading on Thursday show.

Adjusted for workday effects, industrial output dropped by 12.2 percent in June.

In a month-on-month comparison, industrial output rose by a seasonally- and workday-adjusted 17.1 percent in that month, KSH said.

The automotive sector accounted for more than 28 percent of manufacturing sector output in June.

Output of the computer, electronics and optical equipment segment, which made up 13 percent of manufacturing sector output, rose by 4.5 percent, after declining for two consecutive months.

Output of food, drink and tobacco companies, which accounted for 12 percent of manufacturing, increased by 1.7 percent, also after falling for two months in a row.

For the period January-June, industrial output dropped 12.8 percent year-on-year, KSH said.

Mercedes-hybrid-Kecskemét
Read alsoImportant: plug-in hybrid models are in production at Mercedes-Benz Hungary

Samyang Biopharm to build EUR 24.9m medical equipment plant in Hungary

Samyang Biopharm to build HUF 8.6 bn medical equipment plant in Hungary

South Korean biopharmaceutical company Samyang Biopharm is investing 8.6 billion forints (EUR 24.9m) to build a medical equipment plant in Gödöllő, on the outskirts of Budapest, Péter Szijjártó, the foreign affairs and trade minister, said on Tuesday.

The investment will create 55 jobs in its first phase, the minister said, adding that the government is supporting the project with a 1.3 billion forint non-refundable grant.

The Gödöllő base will be the Samyang Group’s first European plant as well as the first South Korean pharmaceutical investment to be brought to Hungary, Szijjártó said.

He said the novel coronavirus pandemic had underscored the importance of capacities to produce medical equipment, adding that Samyang’s investment would reduce Hungary’s vulnerability “in difficult times”.

South Korean investments bring the highest technological standards to Hungary,

the minister said, adding that they were based on extensive R+D and represented high value-added that could help advance the “dimensional shift” of the Hungarian economy.

South Korean companies continue to view Hungary as a favourable investment destination and business environment, Szijjártó said, adding that hundreds of millions of euros were expected to flow into Hungary in investments from South Korea over the coming months.

hungary south korea ties
Read alsoForeign minister: Hundreds of millions of euros to flow into Hungary from South Korea

BMW to reduce CO2 emissions per vehicle by one third by 2030

car BMW

German carmaker BMW said on Monday that it would reduce CO2 emissions per vehicle by “at least one third” across its entire fleet by 2030.

“As a premium car company, it is our ambition to lead the way in sustainability. That is why we are taking responsibility here and now and making these issues central to our future strategic direction,” said Oliver Zipse, chairman of the board of management (CEO) at BMW.

car BMW
Read alsoBMW to reduce CO2 emissions per vehicle by one third by 2030

The targets should be reached throughout the entire lifecycle of BMW vehicles, from the supply chain through production to the end of the use phase, said BMW.

For around 2.5 million vehicles, which BMW produced in 2019, a reduction of CO2 emissions by one third would correspond to an annual reduction of more than 40 million tons of CO2.

Having already lowered production emissions per vehicle by more than 70 percent since 2006, BMW would now aim to reduce its emissions by a further 80 percent from 2019 levels by 2030 at its own plants and sites responsible for around 90 percent of BMW’s overall emissions.

In addition, BMW set a target of more than 7 million electrified vehicles with around two-thirds of them with a fully-electric drive train within the next ten years. By the end of 2021, BMW is planning to offer five fully-electric production vehicles.

ambulance
Read alsoA BMW crashed at 150 km/h into a Hungarian family of three – VIDEO

Already at the beginning of July, BMW announced plans to produce electric drives for more than half a million electrified vehicles per year by 2022 at its largest European production site in Dingolfing, Germany.

To that end, the German carmaker also announced to expand its plants in order to increase “production capacity significantly” in the coming years as BMW was seeking to “ramp up electromobility and set standards for the transformation of our industry.”

Important: plug-in hybrid models are in production at Mercedes-Benz Hungary

Mercedes-hybrid-Kecskemét

On July 21, important announcements were made at the Mercedes-Benz plant in Kecskemét: after the global pandemic, production will resume to normal in August, and for the first time in Hungary, Mercedes has started the production of plug-in hybrid cars.

As portfolio.hu reports, Christian Wolff, CEO of Mercedes-Benz Manufacturing Hungary Kft. has made three important announcements concerning the manufacturer’s plant in Kecskemét. The plant has started the production of the first plug-in hybrid cars, making Mercedes the first manufacturer of such models in Hungary. It was also revealed that the plant will resume regular production after disruption by the COVID-19 pandemic.

Production back to normal from the beginning of August

Mercedes is not the only car manufacturer in Hungary that has successfully overcome the global pandemic and is now back in production. Audi in Győr announced similar news earlier this year, and now Christian Wolff said that Mercedes would return to the regular, three-shift working system starting 1 August.

A green revival

The most exciting news is that the plant has started the production of two hybrid models, CLA 250 e Coupé and CLA 250 e Shooting Brake. This makes Mercedes-Benz the first manufacturer of plug-in hybrid models in Hungary.

At the event, the performance of CLA models was also presented. With the 75 kW electric output and the 1.33-litre four-cylinder engine, these models can produce a system output of 160 kW (218 hp) and a system torque of 450 Nm. This makes it possible to speed up from 0 to 100 km/h in just 6.8 seconds. And for the plug-in feature, these models can be charged from 10% to 100% in less than two hours. They have an electric operating range of 69–79 km. 

László Palkovics, minister of the Hungarian Ministry for Innovation and Technology, was also present at the announcement and said that:

“After production was suspended in mid-March at several Mercedes plants in Europe, we are happy to see that this resumption is now is also a green revival, as today we can welcome the first plug-in hybrid car at the Kecskemét plant; the first car of the future.”

He also added that it is a great achievement in that the production of these models had been taking place in these challenging times. At the event, it was also revealed that production had been preceded by months of training to prepare 2,000 employees for the unique workflow process. The appraisal was also given to the entire staff as all the preparation work took place without any disruption in production.

Kecskemét: a partner in long-term investment

Wolff’s third important announcement was that later this year, the production of A-class plug-in hybrid models would also start at the plant in Kecskemét. According to portfolio.hu, all these news suggest that Daimler does have long term plans with the Hungarian plant. And with the increasing importance of reducing CO2 emissions in the entire market, it is also a big step forward in orientating customers towards more environmentally friendly consumption.

The above announcements also mean that hybrid model production is now present at all the three car manufacturers in Hungary. The Audi plant in Győr started the production of Q3 and Q3 Sportback models last December, and the Suzuki plant in Esztergom announced that from 2020, it would only make hybrid models for the EU market. You can read more about this here.

Thousands working in the automotive industry to remain without work in Hungary?

audi_factory_győr_automotive_sector_hungary

In May, the whole sector decreased significantly, and the huge producers are going to stop shortly. As a result, 10-15 thousand workplaces may be in danger, and the problem is not only with the big factories but the companies in their supply chains.

According to Nepszava, the problem is with the companies in the supply chain of the huge factories which already depleted their resources during the epidemic. Furthermore, their employees do not have any more paid holidays, so Zoltán László, deputy leader of the Vasas Trade Union Association, said that

thousands could remain without income in the automotive industry.

In the automotive industry, it is not surprising that production stops for a couple of weeks during the summer, allowing companies to do the necessary maintenance work, replace production lines and machines, and, of course, to send their employees on holiday. However, these are planned pauses. In spring, of course, nobody planned to stop, but they had to because of the coronavirus epidemic.

From March until May, production went on with decreased volume or nothing at all. However, in the meantime, they replaced the machines and did the necessary maintenance work so suppliers rightfully thought that there would be no stops during the summer. However, the emission scandal of 2015 ravaged the sector, so demand fell for traditional cars while it is not enough for the new technologies. 

 The huge automotive companies offer paid holidays for their workers during the pause, but the suppliers cannot do so in most cases. This problem is significant because 90 pc of the 170 thousand Hungarians working in the sector are employees of the suppliers which are now in trouble. Therefore, they plan to fire their workers, and if the situation stabilises, they will employ them again.

And this is the scheme the government’s grant system encourages as well since they pay the wages of the workers for only 6 months. Therefore, the

suppliers are not interested in keeping their employees

if they do not have enough orders. Népszava said that, probably, this is why the government changed the rules of claiming wage help.

The Hungarian Central Statistical Office said that the recovery would not be quick in the sector which decreased by 30 pc in May. The bottom was in April, but demand is still low for new vehicles. Dávid Németh, a leading analyst of K&H Bank, said that it could not be excluded that

the decrease rate of the Hungarian industry would reach two-digit by the end of the year. 

  • On the bright side learn how can you protect your vehicle from dust and increase it’s longevity by visiting Auto Bache

Hungary’s industrial output falls 30.7 pc in May

Daily News Hungary economy

Industrial output in May was 30.7 percent lower than a year earlier, after a 36.8 percent contraction in April, the Central Statistical Office (KSH) said on Tuesday in a second estimate.

Adjusted for working day effects, industrial output dropped by an annual 27.6 percent in May.

Output of Hungary’s automotive sector, an engine of industrial growth under normal circumstances, fell by 53.3 an annual percent in May,

slowing from a 79.5 percent decline in April. The automotive sector accounted for 21 percent of manufacturing sector output in May.

Output of the computer, electronics and optical equipment segment, which made up 13 percent of manufacturing sector output, dropped by 21.2 percent in May, close to the 20.8 percent decline in April.

Output of food, drink and tobacco companies, which also made up 13 percent of manufacturing, dropped by 12. percent in May,

declining at a faster rate than the 7.9 percent contraction in April.

In a month-on-month comparison, industrial output rose a seasonally- and workday-adjusted 15.6 percent in May.

For the period January-May, output fell by an annual 13.8 percent.

Switzerland’s Sensirion to set up plant in Hungary

sensirion_debrecen

Swiss sensor maker Sensirion on Monday announced plans to establish a production base in Debrecen, in eastern Hungary.

The plant, being built and financed by a local “build-to-suit” partner, will meet growing demand for sensors.

Sensirion said it chose Debrecen because of the city’s proximity to clients in Europe, the well-educated local workforce and support offered by the Hungarian Investment Promotion Agency (HIPA) and the Debrecen Urban and Economic Development Center.

“Debrecen’s excellent infrastructure, especially education facilities such as the University of Debrecen and the vocational training institutions, combined with an established industrial base, was the decisive factor in Sensirion choosing to establish a new production site there,”

said Patrick Good, Sensirion’s director for maintenance and infrastructure.

State Secretary Levente Magyar welcomed the announcement, saying that the government had “great plans” concerning Debrecen, which he referred to as “the fastest developing city” in Hungary.

Production at the site is expected to start by Q3 2021.

Initially, the plant will employ about 50 people; however, starting in 2022 Sensirion will add newly engineered products and production technologies to its portfolio in Debrecen, raising headcount there by about fourfold by 2025.

Budapest, Chain Bridge, view
Read alsoKhalaf Ahmad Al Habtoor: Hungary, Europe’s rising star