Knorr-Bremse Fékrendszerek, the Hungarian unit of German braking systems maker Knorr-Bremse is building a more than HUF 5 billion production hall and development laboratory in Kecskemét, the company announced on Tuesday.
Knorr-Bremse won HUF 1.2 billion in European Union support in the framework of the New Széchenyi Plan for the project. The investment will create 110 jobs.
Speaking at the announcement of the investment, Prime Minister Viktor Orbán said German industry was an ally of Hungary because these companies do not seek to acquire domestic market share, rather they come because they need Hungarian labour. He added that the project showed Hungary was distancing itself from the crisis zone.
Orbán said that in 1999, during his first term as prime minister, Knorr-Bremse was among the first such investors in Hungary who came not just for the labour, but to establish a development centre too. He added that Hungary would extend serious support for the company's investments that really aim to create jobs.
Knorr-Bremse Fékrendszerek managing director István Lepsényi said the unit's existing plant in Kecskemét could not undergo modernization, thus the company had decided to make a greenfield investment.
The new plant is expected to be completed by the end of 2013, and output is seen rising 10% by 2014.