Germany-based technology group thyssenkrupp will build a new automotive components plant in Jászfényszaru, just east of Budapest, with an investment of €100 million, according to a press release issued by the company today.
Construction of the new plant, which will produce electronic power-assisted steering systems and cylinder head covers with integrated camshafts from 2018, is set to begin in the spring of this year, the press release noted.
It is anticipated that approximately 500 new jobs will be created at the site in the coming years to accommodate an increase in large orders from international OEMs.
“This investment follows our strategy towards standardization and cost optimization in the automotive components business. For the first time in Europe we are localizing production of two different technologies at one site. That will be an immense help in offering competitive cost structures,” said Dr. Karsten Kroos, CEO of thyssenkrupp’s Components Technology business.
“Hungary offers good conditions for our growth plans. Its central location, good infrastructure and highly skilled labor force are the main reasons for expanding our business activities in Hungary,” added Kroos.
thyssenkrupp currently operates a software development center for steering technology in Budapest, where it employs approximately 400 software engineers, and it also opened a front and rear axle assembly plant for Audi Hungaria in Győr, northwestern Hungary, in 2013.