Two more Chinese companies to invest EUR 95 million in Hungary

Agreements have been reached with two Chinese companies on their investments worth a combined HUF 35 billion (EUR 94.7 million) in Hungary, Péter Szijjártó, the foreign affairs and trade minister, said in Tianjin, in northern China, on Tuesday.

The government aims to make Hungary the number one investment destination in the region for Chinese companies, Szijjártó said after talks with the Chinese business executives, according to a ministry statement.

The new investments will contribute significantly to maintaining Hungary’s economic growth and will create around 500 jobs, the minister said.

One investment will be a HUF 28 billion packaging materials plant in eastern Hungary supplying the biggest European drinks makers, Szijjártó said, adding that the project would create around 300 jobs. The government is also supporting the investment, he said, adding however that the size of the government’s grant would only be revealed after the project is approved by the European Commission.

The other company will invest HUF 7 billion in producing interior parts for BMW’s electric vehicles produced in Debrecen, in eastern Hungary, he said, adding that the investment will create some 200 jobs.

Chinese companies continue to regard Hungary as an attractive investment destination, “and our aim is to maintain our position as the top investment destination of Chinese businesses in central Europe”, Szijjártó said.

He said Chinese investments had played a significant role in keeping the Hungarian economy on a growth path in the recent period.

After 2020, Chinese companies are once again the top investors in Hungary this year, he said, underlining their use of cutting-edge technology and contribution to protecting jobs.

“And these investments are mainly going towards the electric vehicle industry, which we know is the industry of the future,” Szijjártó said. “The country that can attract EV industry investments will definitely be successful in the coming period.”

Szijjártó said there was “no turning back” when it came to the car industry’s transition to electric vehicles, arguing that it would determine the development of the European and global economy in the coming period.

He said the reason why most Chinese auto industry investments were being made in Hungary was because of the capacities of the German carmakers present in the country.