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Investments

Hungarian automotive industry still going strong

Hungary’s automotive industry was the backbone of the Hungarian economy before COVID-19 and looks poised to continue growing.

Péter Szijjártó, Minister of Foreign Affairs and Trade, announced that ACPS Automotive Kft., the German-based towing hook manufacturer, will increase its capacity in Kecskemét, an investment that will also save nearly 1,000 jobs, he highlighted.

In 2020, foreign investment fell by 42 percent globally, while it grew by 140 percent in Hungary. The Hungarian government’s investment incentive program is a strong response to the economic challenges of the pandemic, the minister said. Thanks to continuous investments and developments, the production value of Hungary’s automotive industry exceeded HUF 9 trillion in 2020, and new production capacities will be needed after the pandemic as well, he added.

Szijjártó emphasized that the continuous development of Hungary’s supplier chain is especially important for the government because this will be one of the most important conditions for the development of Hungary in the future. 

The minister noted that several large international automotive companies including Volvo and Volkswagen also procure towing hooks for their vehicles from ACPS Automotive Kft.’s factory in Kecskemét.

With the machinery to be acquired, the company will increase its production capacity of 1.2 million units to roughly 1.3 million this year. The investment will help ACPS Kecskemét strengthen its position as the largest production location for the multinational group, he said.

The Hungarian government’s investment incentive program has so far contributed HUF 32 billion to 67 county investments worth a total of HUF 90 billion, preserving about 17,400 jobs, Szijjártó added. 

Source
www.origo.hu
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