German engineering giant Bosch laid the cornerstone for a HUF 37 billion expansion of its Budapest Development Center on Tuesday, state news wire MTI reported. The investment, set to be completed in 2021, will add 90,000 square meters to the area of the facility.
Daniel Korioth, the head of Boschʼs local business, described the Budapest Development Center Campus II as an investment of strategic importance which confirms the commitment of Bosch to Hungary.
Speaking at the ceremony, Minister of Foreign Affairs and Trade Péter Szijjártó noted that the center will create new opportunities for the development of electric and self-driving vehicles, adding that a 10,000 sqm test track will also be built next to the center.
“Hungary is having a significant effect on the digital industrial revolution, because as a medium-sized and extremely open economy it is particularly sensitive to external factors,” Szijjártó was quoted as saying on official government website kormany.hu. He added that to ensure further success, investors must be encouraged to bring their development capacities to Hungary, in the same way that they previously transferred traditional production units here.
“Hungary offers a highly-trained workforce and low taxes, in addition to which it provides a high level of funding to enterprises that establish plants that create a significant level of added value,” the minister added.
Szijjártó noted that Bosch has invested HUF 130 bln in Hungary over the past two years and has concluded partnership agreements with 14 local colleges and universities.
The Budapest Development Center employs almost 2,500 engineers, said Oliver Schatz, the head of the center.
Klaus Peter Fouquet, president of Robert Bosch AG, said Hungary is of key importance to Bosch both in production and in development, adding that the company spent almost HUF 55 bln on the latter area in Hungary last year, and of the more than 13,000 people employed by Bosch in the country, 2,600 work in research and development. The investment will create almost 2,000 jobs for highly-qualified workers, he added.
Bosch celebrates the 100th anniversary of its first Hungarian unit this year. Today it is the biggest foreign employer in Hungary, operating nine units in the country, according to MTI.