“Chinese companies are contributing significantly to Hungary’s economic successes, Hungarian exports to China are expected to continue to increase, as is the ratio of added value in these products”, the Ministry of Foreign Affairs and Trade’s Minister of State for Economic Diplomacy, Levente Magyar said on Monday in Budapest at a press conference announcing a new investment by Hong Kong-based electronics manufacturer Ten Pao.
The Minister of State highlighted the fact that the company’s 4.5 billion forint (EUR 14.4 million) new plant in Miskolc, where it will be employing 300 people, will combine the most important mottos of the 21st century industrial revolutions: digitalisation, energy efficiency, artificial intelligence and clever solutions.
“The investment is reinforcing a sector of industry that is one of today’s key sectors, in addition to which it will reinforce the Borsod County capital’s significance and an industrial city”, he added.
Mr. Magyar pointed that the presence of Chinese businesses in Hungary has increased several fold since 2010, with total Chinese working capital exceeding 4 billion dollars last year and 50 percent more Hungarian companies, mostly small and medium-sized enterprises, exporting to China than six years ago. “China is Hungary’s most important economic partner outside Europe, with Hungarian exports increasing by 36 percent year-on-year during the first six months of 2017 and doubling since 2010”, he added.
The Minster of State also highlighted the fact that Hungarian exports could hit an all-time record total of 100 billion euros this year.
The region’s Member of Parliament, Katalin Csöbör (Fidesz-KDNP) highlighted the fact that the new Chinese investment will mean the creation of at least 300 new jobs in the city of Miskolc, adding that in addition to its investor-friendly environment, Hungary’s political will also contributes to enabling industrial production to be the country’s key sector.
At the press conference, CEO of Ten Pao Jang Ping-ping told reporters that the new plant in Miskolc will be producing electric charging stations, printed circuits and automatic switches. He explained the choice of location with the good relations between the two countries and the benefits afforded by the Hungarian Government and the Municipality of Miskolc, highlighted the fact that the construction of the new plant is an important phase in the company’s plans to become global, after having been introduced onto the Hong Kong stock market in 2015.
“Production at the plant will begin on Thursday, with a planned production value of 100 million dollars-a-year, and the company plans to further increase the plant’s capacity by 2021”, he added. “One of the primary criteria during the plant’s construction was the establishment of energy-efficient and environmentally friendly production and the use of new resources”, he emphasised.
According to the CEO of Ten Pao, new investors could also appear in the region thanks to the company’s new investment.