Hungarian FM announces two major Chinese investments

BUDAPEST, Nov. 18 (Xinhua) -- Hungary's Minister of Foreign Affairs and Trade Peter Szijjarto announced two major Chinese investments in Hungary on Thursday, both in the automotive sector.

Szijjarto attended the cornerstone laying ceremony of a new car parts plant in Miskolc, eastern Hungary, to be built by Chinese automotive components supplier Chervon Auto. The investment is worth 17.5 billion Hungarian forints (54.5 million U.S. dollars). Hungary's government supports the project with a 5.3-billion-forint grant.

The investment will create 138 new jobs in the city and production could start in the second half of next year, according to Szijjarto.

"Chervon Auto makes its first greenfield investment outside of China in Miskolc, where it will manufacture automotive metal parts, initially with a capacity of two million units per year," Szijjarto said.

"Our cooperation with China, which is highly rational, pragmatic and based on mutual respect, has brought very serious economic benefits to the country," he said.

According to Szijjarto, bilateral economic relations only intensified during the coronavirus pandemic: "The value of trade turnover grew 21 percent in the first eight months of this year, reaching eight billion U.S. dollars by the end of August."

Earlier on Thursday, Szijjarto also attended the launch of another Chinese investment: the handover of S.E.G.A. Hungary Ltd.'s new production hall in Szirmabesenyo, a suburb of Miskolc.

The Chinese-owned company is setting up its largest plant in Europe in Miskolc, where it will produce state-of-the-art starter motors and generators, according to Szijjarto, who also said that the Hungarian state has provided 1.3 billion forints to support the 4.5-billion-forint investment. The company will hire 40 new engineers, in addition to retaining its current 1,426 employees.

The government's Eastern Opening policy has proved to be a clear success story, as Hungary is now the number one investment destination for Chinese companies in central Europe, Szijjarto said. (1 U.S. dollar = 320.97 Hungarian forints)