Hungary: A Meeting Point for East and West Investments
German and South Korean Automotive Firms to Invest Billions in Hungary
Two major players in the automotive industry, ZF and Hanon Systems, have announced large-scale investments in Hungary. German automotive industry supplier ZF will invest HUF 24 billion (EUR 63m) at its bases in Kecskemét and Debrecen, while South Korean automotive industry supplier Hanon Systems will invest HUF 43 billion (EUR 113m) at its local bases in Székesfehérvár, Pécs, and Rétság.
ZF Chassis Modules Hungary, a subsidiary of ZF, will focus on producing shock absorbers as well as front and rear axles for electric vehicles. These components will be used in the manufacturing of electric vehicles at the BMW plant in Debrecen and the Mercedes factory in Kecskemet starting in 2025. The investment is expected to create 313 jobs and is being supported by the Hungarian government with 2.4 billion forints.
Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó, highlighted Hungary’s leading position in the shift to electromobility and emphasized the importance of these investments for the country’s economy.
Meanwhile, Hanon Systems’ investment will involve upgrades and capacity expansions, as well as a training program for a staff of 200. The state is providing 5.7 billion forints in support for the project, which will create 250 jobs.
Szijjártó noted that Hungary faced tough competition to attract the investment from Hanon Systems, as the South Korean company has a strong global presence with 53 factories in 21 countries. He also highlighted the significant presence of South Korean companies in Hungary, particularly in the electric vehicle battery sector.
These investments are not only significant for the Hungarian automotive industry but also demonstrate the country’s attractiveness as a location for foreign direct investment. With the continued support from the government and the expertise of the local workforce, Hungary is poised to further strengthen its position in the global automotive supply chain.
