An agreement has been reached with the German automotive company Vitesco Technologies (VT) to build a new factory in Debrecen as part of a greenfield investment, in which high-tech automotive electronic components will be produced, announced on Tuesday the Minister of Foreign Affairs and Foreign Affairs Péter Szijjártó.
According to the Ministry’s announcement, the Minister reported that the Hungarian state will provide HUF 10.5 billion in non-refundable support for the HUF 47 billion investment, as 450 new jobs will be created with the construction of the approximately 7,000-square-meter plant.
He added that the value of the project is enhanced by the fact that it concerns the production of electromobility devices, namely, “whoever wins the investment that underpins a new era in the automotive industry can guarantee the continued growth of his national economy in the long run”.
He emphasized that the project could help the Hungarian economy to two new records this year. On the one hand, the country is very close to the previous plan that the production value of the automotive industry, after growing by 31 percent in the first half of 2021, will exceed HUF 10,000 billion by the end of the year. On the other hand, the Hungarian-German trade turnover will be able to show the highest result ever, after its volume increased by 22 percent in the first five months of this year. In this connection, he underlined that about a quarter of Hungary’s exports go to Germany.
Péter Szijjártó stated: from an economic point of view, a goal now floats in the eyes of the government, so that the growth of the Hungarian gross domestic product (GDP) this year will reach 5.5 percent, because in this case the state will repay the 2021 their personal income tax paid in.
“We are asking the hurtfully simplistic question of what it takes in the next four months to achieve guaranteed growth of 5.5 percent on December 31. The answer is simple: investment, investment and investment,” he said.
He also said that an annual conference of ambassadors was taking place, at which the goal was set for the participants to discover all investment intentions at their station as quickly as possible, as this could create jobs in Hungary.
Finally, the Minister emphasized that such a mass of supplier companies had settled in Debrecen in recent years that the city had clearly become one of the strongholds of the Hungarian automotive industry. In connection with this, he announced that in the next two years the government will spend about HUF 100 billion on development resources to create an infrastructure in Debrecen that can provide a suitable basis for further investments.