Chinese Auto Giant Xinzhi to Invest in Hungary with Major Electric Vehicle Component Production Plant
The investment, valued at HUF 50 billion, promises nearly 900 new jobs and underlines Hungary’s pivotal role in the global electric vehicle industry.
In a significant boost to Hungary’s burgeoning role in the global electric vehicle (EV) industry, the Chinese automotive company Xinzhi has announced plans to establish a new manufacturing plant in Hatvan.
The investment, worth approximately 50 billion Hungarian Forints (HUF), is set to create nearly 900 jobs, as stated by Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó.
The facility will focus on the production of critical components for electric motors, which are central to the operation of electric vehicles.
This initiative not only underscores Hungary’s strategic positioning within the global shift towards electric transportation but also signifies an important step in the country’s ability to attract high-value foreign investments.
Alongside manufacturing, Xinzhi plans to invest in research and development (R&D) activities within Hungary, aiming to hire 30 highly skilled engineers.
According to Minister Szijjártó, the burgeoning field of EVs places a premium on innovation, making R&D a crucial area for growth.
"The EV industry is still in its early stages, so research and development play a critical role," Szijjártó remarked.
"Hungary is not only gaining significant manufacturing capacity but is also attracting high added-value R&D capacities that operate in the sphere of innovation."
Xinzhi, established in July 1990, is one of the top ten enterprises in China’s automotive electronics and appliance production sectors.
The company specializes in the production and distribution of various motors and core accessories, providing professional support services to major motor and electronics manufacturers globally, including multinational giants like Valeo, Bosch, and Denso.
Xinzhi is recognized as the world's largest supplier of stators for automotive generators, reinforcing its position as a key player in the industry.
The announcement is considered a positive development for Hatvan and its surrounding region, as well as for the broader Hungarian economy, as stated by the Foreign Minister.
Szijjártó emphasized the broader geopolitical and economic context, highlighting Europe’s decreasing economic competitiveness and security in recent years.
He stressed the importance of the continent asserting a significant role in the electric vehicle transition, a process in which Hungary is seen as a leading contender.
"It is essential for Europe to strengthen its position in the electric vehicle transition and not yield this opportunity to others.
Hungary stands at the forefront of this process, serving as one of the bastions and leaders of the global automotive renewal," Szijjártó concluded.
This development reflects a broader trend of Chinese companies looking toward Central and Eastern Europe for investment opportunities, leveraging the region’s strategic location, skilled workforce, and favorable business environment.
The investment, worth approximately 50 billion Hungarian Forints (HUF), is set to create nearly 900 jobs, as stated by Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó.
The facility will focus on the production of critical components for electric motors, which are central to the operation of electric vehicles.
This initiative not only underscores Hungary’s strategic positioning within the global shift towards electric transportation but also signifies an important step in the country’s ability to attract high-value foreign investments.
Alongside manufacturing, Xinzhi plans to invest in research and development (R&D) activities within Hungary, aiming to hire 30 highly skilled engineers.
According to Minister Szijjártó, the burgeoning field of EVs places a premium on innovation, making R&D a crucial area for growth.
"The EV industry is still in its early stages, so research and development play a critical role," Szijjártó remarked.
"Hungary is not only gaining significant manufacturing capacity but is also attracting high added-value R&D capacities that operate in the sphere of innovation."
Xinzhi, established in July 1990, is one of the top ten enterprises in China’s automotive electronics and appliance production sectors.
The company specializes in the production and distribution of various motors and core accessories, providing professional support services to major motor and electronics manufacturers globally, including multinational giants like Valeo, Bosch, and Denso.
Xinzhi is recognized as the world's largest supplier of stators for automotive generators, reinforcing its position as a key player in the industry.
The announcement is considered a positive development for Hatvan and its surrounding region, as well as for the broader Hungarian economy, as stated by the Foreign Minister.
Szijjártó emphasized the broader geopolitical and economic context, highlighting Europe’s decreasing economic competitiveness and security in recent years.
He stressed the importance of the continent asserting a significant role in the electric vehicle transition, a process in which Hungary is seen as a leading contender.
"It is essential for Europe to strengthen its position in the electric vehicle transition and not yield this opportunity to others.
Hungary stands at the forefront of this process, serving as one of the bastions and leaders of the global automotive renewal," Szijjártó concluded.
This development reflects a broader trend of Chinese companies looking toward Central and Eastern Europe for investment opportunities, leveraging the region’s strategic location, skilled workforce, and favorable business environment.
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