Hungary is further expanding its role as a technology hub in European high-tech manufacturing. IT specialist Kontron Electronics is relocating its existing production from China to southwestern Hungary, Foreign and Trade Minister Péter Szijjártó announced on Tuesday in Pécs. The investment not only secures existing jobs, but also sends a clear signal about the attractiveness of the location.
With an investment volume of 2 billion forints (5 million euros), Kontron Electronics GmbH, a leading global provider of industrial IT solutions, is relocating its manufacturing capacities from the Far East to Hungary. Highly complex electronic assemblies and automated control systems are produced in Pécs. These products are used in sensitive and promising industries such as medical technology, the aviation industry, and robotics.
This is another great achievement: production activities are coming to Hungary from China,”
emphasized Péter Szijjártó.
It should be particularly emphasized that Hungary is not only producing, but also creating a complete service chain that covers the entire life cycle of the products, he continued. The Hungarian government is supporting the project with a grant of 400 million forints (1 million euros), the minister explained. This funding serves a clear goal: to create 30 new jobs and secure another 300 existing jobs in the long term.
In Péter Szijjártó’s view, the competitiveness of the location is also reflected in the export quota. 99 percent of the products manufactured in Pécs are destined for the global market.
Kontron, a company with branches in over 20 countries, is thus increasingly focusing on the stability of European supply chains.
The settlement is part of an impressive track record for the region. Over the last decade, the value of industrial production in Baranya County has more than tripled from 350 billion forints (922 million euros) to over 1,120 billion forints (2.9 billion euros). At the same time, the unemployment rate fell from 11 percent to below 6 percent, the minister recalled.
In his view, this is no coincidence, but the result of a targeted settlement policy. “International companies opt for security and predictability. Despite a difficult global environment, the last four years have been the most successful in Hungarian economic history in terms of new investments,” Péter Szijjártó emphasized.
With Kontron’s move from China to Hungary, the country is underlining its claim to be a “haven of stability” for global high-tech companies.
Via MTI; Featured image: MTI/Ruprech Judit
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