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Two major US investments announced in Hungary in a single day!
Hungary has secured two significant American investments within a single day, reinforcing the country’s position as a key destination for international capital in both the automotive and pharmaceutical sectors.
BorgWarner expands in Oroszlány with EUR millions investment
US automotive supplier BorgWarner has completed a HUF 24 billion (approx. EUR 60 million) development at its plant in Oroszlány. The Hungarian government supported the project with HUF 4.8 billion, helping to increase the workforce at the facility to around 1,000 employees.
The investment further strengthens Hungary’s role in the global transformation of the automotive industry. The Oroszlány plant will now produce not only turbochargers but also components used for heating passenger cabins in premium vehicles.
The expansion highlights Hungary’s growing importance as a manufacturing hub for leading automotive brands. The country is one of only a few in the world hosting production bases for all three major German premium carmakers, alongside several other vehicle manufacturers.
The development also reflects the continued growth of Hungary’s automotive supplier network, which has attracted numerous investments in recent years, creating tens of thousands of jobs nationwide.
Viatris invests in Komárom, securing hundreds of jobs
On the same day, US-owned pharmaceutical company Viatris announced a HUF 6.4 billion investment in Komárom. The Hungarian state is contributing HUF 1.3 billion to the project.
The investment will expand packaging and quality control capacities at the company’s local subsidiary, Viatris Komárom-Mylan Hungary Kft., securing more than 800 jobs.
Komárom already serves as a key hub within Viatris’s European operations. The development is expected to significantly increase the plant’s packaging output and further enhance its strategic importance, as it hosts the European Union’s largest pharmaceutical testing laboratory.
Hungary reportedly won the investment amid strong international competition from facilities in both the United States and Asia, largely thanks to the expertise of its workforce.
Hungary strengthens its role in key industries
The two announcements underline Hungary’s continued attractiveness to foreign investors, particularly in high-value sectors such as automotive manufacturing and pharmaceuticals.
The pharmaceutical industry, in particular, plays a crucial role in the Hungarian economy. Despite its relatively small population, the country ranks among the world’s top 20 pharmaceutical exporters, with the sector delivering production worth around HUF 1,300 billion last year.
Meanwhile, regions such as Komárom-Esztergom County have become major engines of economic growth. Over the past decade, industrial output in the county has increased significantly, while unemployment has fallen to low levels, supported by numerous state-backed investments.
A competitive environment for global investments
Both projects highlight Hungary’s strategy of attracting high-value foreign investments through state support and a skilled labour force. The simultaneous announcement of two major US developments reflects strong economic ties between Hungary and the United States, as well as increasing competition among countries to secure strategic industrial projects.
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Hungary is one of the few EU members that be relied upon for just plain common sense – go tizzy!
Absolutely all foreign investment seems to be the recipient of huge government grants, even if it’s a mere Coca Cola bottling plant. Fact is, Hungary doesn’t need more, and cannot cope with further offshored assembly plants. It simply doesn’t have the available labour pool to staff them all so these recents grants are really just funding future jobs for Asian guest workers. That’s aside from the fact that production line jobs tend to pay modest wages, require little in the way of education and offer low added value in economic terms. If an investor wants to bring a plant to Hungary making plastic window frames, bottle tops or even gearboxes for cars then fine, but they should fund the investment from their own resources without recall to Hungary’s parlous public finances. I recognise that other countries will offer generous grants if Hungary doesn’t, but most if not all the alternative destinations the investor will be considering have a greater need to attract foreign investment, to reduce unemployment and bring modern technologies where none might previously exist. Hungary’s surplus labour pool has long evaporated and the country now has more state of the art assembly plants than you can shake a stick at.
@Londonsteve – the economic model underpinning Hungary’s foreign investment success is funded by “Brussels!”. The large cash subsidies and incentive packages that HIPA – https://hipa.hu/ – uses to lure multinational companies are heavily bankrolled by EU cohesion and development funds and completely dependent on the EU Single Market.
Hungary’s investment attraction model is essentially as follows:
Low taxes + EU money + taxpayer-funded cash grants + our Politician’s personal deal-making (read: redistribution to friends and toadies – #ruleofinlaws)
You can actually drive the already low taxes even lower – IP Box regime, development tax allowance, R&D super deduction, social contribution tax reductions …
Fun fact – Hungary collects less tax revenue per capita than almost any EU member … Our Politicians “Sovereignty!” actually consists of a tax strategy subsidized by European taxpayers. Not even talking about companies lured from higher-tax EU countries.
Oh! Almost forgot – ever hear of the TAO System? As a company, you can redirect 1 percent (of nine) of corporate tax obligation to support spectator sports. The company simply opts to send 1 percent to a sports body instead of the treasury. This fund somehow gets channeled mainly (surprise!) to Politicians friends, family and toadies. Hence, all the stadiums and stuff. Bread, games and profit, baby! And eternal gratitude to the company.
Depending on your clout, you could even get Mr. Szijjártó on speed dial? Unfortunately, I’ve seen it, in practice. Embarrassing – as a Hungarian.