Austrian automotive industry company AVL will build a HUF 12.5 billion R&D base in Érd, on the southwest outskirts of Budapest, supported with a HUF 3 bln government grant, Minister of Foreign Affairs and Trade Péter Szijjártó said on Tuesday.
The investment will create 350 jobs, including 250 for engineers, Szijjártó noted. He added that the testing base will be the second in AVLʼs network of R&D bases after Graz, Austria, and ahead of planned centers in China, Korea and Japan.
The foreign minister was cited by official government website kormany.hu as telling reporters that the company employs a total of 9,500 people worldwide and exports 99.2% of its Hungarian production value, which he said clearly indicates its competitiveness.
Szijjártó noted that Austrians represent the third largest investor community in Hungary, following Germans and Americans: the 2,500 Austrian companies operating in Hungary provide work for some 70,000 people. Last year, he added, bilateral trade flow exceeded EUR 10 bln, making Austria Hungary’s second most important trading partner after Germany.
AVL Hungary Managing Director Dirk Janetzko said the first office building will be completed by the end of 2019 and the new vehicle testing base by 2020.
The company is a frontrunner in engine and vehicle testing and the development of drive system simulation technologies, and wishes to develop its Hungarian facility into a true competence center, Janetzko added.