ZF Hungária, a Hungarian subsidiary of German auto parts manufacturer ZF Group, has announced its plan to invest HUF 31 billion (approx. €100 million) in its plant in Eger, northern Hungary, according to a press statement issued by Hungary’s Ministry of Foreign Affairs and Trade.
The Hungarian government will support ZF Hungária’s investment with a grant of HUF 6.7 billion (approx. €21.5 million). Péter Szijjártó, Hungary’s Minister of Foreign Affairs and Trade, has stated that the investment will create at least 770 new jobs and bring cutting-edge technology to the country.
The new investment will expand the Eger plant’s production activities to include the manufacturing of eight-gear automatic transmission systems, for local use and for global export, which the Ministry states could boost Hungarian export volume by HUF 200 billion (approx. €647 million) annually.
“Countries that can convince companies that employ state-of-the-art technology to invest in them will be strong in the future; those that are incapable of doing so will be the losers of the new world economic order,” stated Szijjártó.
2016 saw record production in the Hungarian automotive industry, valued at HUF 7,874 billion (approx. €25.5 billion). In his statement, the Minister noted that the automotive industry is a major driver of Hungarian economic growth. “Hungary has so far been an ideal production location,” he added, “and the task now is to become an ideal location for research & development.”
ZF Hungária’s Eger plant opened in January, 1996, and currently employs 854 staff. The plant supplies automotive parts to automotive manufacturers globally, including Volvo, MAN, Renault, Nissan, Volkswagen, Volvo, Leyland, Hyundai and Neoplan.