Automotive parts manufacturer Enmech Hungary is investing HUF 6.4 billion in expanding production capacity at its base in Pécel on the outskirts of Budapest, Minister of Foreign Affairs and Trade Péter Szijjártó said on Friday, state news agency MTI reported.
The government is providing a HUF 641 million grant for the project, the minister added.
Enmech is a subsidiary of German company Mektec Europe, which is in turn a subsidiary of Japan-based Nippon Mektron.
Mektec Europe CEO Wolfgang Bochtler said production at the new plant could start in October. The plant will produce parts for car batteries and sensors for self-driving cars. Staff at the Hungarian plant will also take part in development projects.
According to public records, Enmech Hungary had more than HUF 214 mln after-tax profit on sales revenues in excess of HUF 12 bln in 2017.
“Thanks to soon-to-begin and planned development projects, the annual production value of the Hungarian automotive industry could soon reach HUF 10 trillion,” Szijjártó was cited as saying at the press conference in Budapest to announce the Enmech investment. “The expansion of Enmech’s plant is also particularly important because it reinforces the positions of the Hungarian automotive industry on the self-driven vehicle and electromobility market.”