Germany Rui good company plans to invest 150 million euros in the Hungarian capital near Budapest to build a new auto parts factory for Daimler in the local production services.
Rehau-Automotive Kft, a Hungarian unit, plans to build 63,000 m² of facilities at Újhartyán, 47 km southeast of the capital, to produce car bumpers and other exterior parts.
The company said the plant will start construction next month and is expected to be completed by April 2019.
February 20, at a joint press conference with the Hungarian government in Budapest, the company announced the details of the latest plan.
Péter Szijjártó, Hungarian Minister for Foreign Affairs and Trade, said at a news briefing that greenfield investments are expected to create 727 new jobs at Rehau's company and nearly 23 million euros from the state and receive tremendous financial support.
He stressed that this is the third largest investment made by the Hungarian government since 2014.
Szijjártó said: "The automotive industry is the flagship in the transition to the digital age. As a result, countries that are competitive in this industry will also be competitive in the economy of the future."
Its subsidiary in Jiel, the western city of Hungary, is also expanding its existing automotive components manufacturing business, servicing local automotive assembly at Audi's assembly plant and responding positively to the automaker's own capacity expansion.
The supplier's goal is to expand the production of automotive bumper systems at its plant and plan to add an additional 75 to its existing 400 employees. Audi just announced that it plans to invest 20 million euros in Győr and set up a new research and development center. The government will allocate one-fifth of the total investment.