Canadian-owned automotive firm Linamar Hungary will build a 10,000 square-meter production hall at its base in Békéscsaba (SE Hungary) for HUF 17.6 billion, creating 250 jobs. The government will support the investment with a HUF 3.9 bln grant.
The unit will make electric power train parts for Daimler cars to be exported to the United States and China, as well as other markets, Minister of Foreign Affairs and Trade Péter Szijjártó said in Budapest on Wednesday.
“The future of the global economy is being determined by the automotive industry, and the success of the Hungarian national economy depends on it being able to attract the investments of new manufacturers and developers,” the minister was quoted as saying by official government website kormany.hu.
Linamar works with 1,500 Hungarian SME suppliers and has dual vocational training partnerships with the universities of Debrecen, Miskolc and Szeged, Szijjártó noted.
Local Fidesz MP Tamás Herczeg said he expects recent road and rail developments to attract more and more companies to the area. Highlighting investments in printing and packaging, agricultural processing and the machine industry, he stressed that Békés County is no longer an untapped area for investors, but urged more cohesion, since the productivity of the region remains behind the national average, while its workforce reserves are still significant.
CEO of Linamar Hungary Csaba Havas said the investment is expected to generate additional revenues of more than HUF 127 bln over six years and create hundreds of new jobs at suppliers.
“The Békéscsaba plant is Linamar’s third production center and fourth factory in the region, and assures long-term competitiveness as an e-mobility base of operations,” Havas added.
Linamar Hungary employs some 2,700 workers. The company’s annual turnover has increased more than tenfold since 1992, and it has spent more than HUF 34 bln on developments since 2010. It exports some 86% of its output.