Another huge automotive investment is coming to Hungary

The automotive industry has been thriving in Hungary for 120 years, and there are currently 700 automotive companies operating in the country.

China’s Chervon Auto will bring an investment worth about HUF 17.5 billion to Miskolc, and the government will provide HUF 5.3 billion in non-refundable support for the development, Minister of Foreign Affairs and Trade Péter Szijjártó announced at a press conference in Budapest.

Szijjártó said that the company aims to produce 2 million parts a year for both conventional and electric automotive companies. The eight-hectare area of ​​Miskolc features 26,000 square meters where the company will set up a production hall, creating 138 new jobs in the first phase.

The minister called the investment significant in three respects:

1) The investment will further strengthen the Hungarian automotive industry.

2) The company will be creating its first plant outside China in Hungary.

3) The investment is another confirmation that Hungary is still an extremely attractive investment location thanks to the excellent work of the Hungarian people.

In ten years, Hungary increased its exports to the East by 22 percent, and in 2019, for the first time, a Far Eastern country made the most investments in Hungary, he added. Last year, 550,000 cars and more than 2 million car engines were produced in Hungary, and the sector’s export share is over 90 percent, the minister explained.

He added that the automotive industry has entered a new, modern era, where research, development and innovation are at least as important as manufacturing. He said that Miskolc’ industrial past as well as its rapidly developing infrastructure and technical expertise provided by the University of Miskolc all provide a reliable basis for such investment.

According to Szijjártó, the development of Chervon will further strengthen the cooperation between Hungary and China. In the first seven months of 2020, Hungarian-Chinese trade turnover increased by 19 percent, and within this, Hungary’s exports increased by 10 percent.

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