Debrecen to host EUR 100 mln Continental investment
German-owned automotive industry supplier Continental will build a EUR 100 million parts plant in Debrecen, Hungaryʼs second largest city in the east of the country, Minister of Foreign Affairs and Trade Péter Szijjártó announced in Budapest on Wednesday.
The government is supporting the investment, which will create 450 jobs, with a HUF 10.6 billion grant, Szijjártó noted. Construction of the plant on an area of 7,000 square meters, to be located in the industrial park in the south of the city, is set to begin in the third quarter of this year. Production is set to kick off a year later, in the third quarter of 2019.
José A. Avila, a member of the Continental executive board who heads the Powertrain division, said the company picked Debrecen for the investment because of its excellent infrastructure and well-trained workforce. The plant will make mechatronic products, sensors and transmission control units, he added.
The creation of a new factory in Debrecen is a strategic decision by which Continental will further strengthen its presence in Europe in order to serve ever-increasing demand from customers for automotive electronic solutions, Avila was cited as saying by online business news site vg.hu.
Debrecen Mayor László Papp noted that the Continental project is the largest and one of the most eagerly anticipated investments in the city in the past four years. Together with Continental, the period has seen 23 foreign and Hungarian companies decide on new or additional investments in Debrecen, thanks to which some HUF 200 bln in working capital has arrived in the city.
Continental employs about 8,000 people at six plants and a commercial center in Hungary.
In January, the firm announced it will open a HUF 5.5 bln software development center in Budapest employing 100 experienced engineers and fresh graduates from May 2018.
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