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Automotive in Hungary: Rehau to expand with 2nd plant; Continental to build auto electronics plant

Hungary is one of the most attractive countries for automotive investments in Europe. Relying on Hungarian expertise, productivity and creativity, the strategic geographical location and favourable manufacturing costs, automotive companies are continuously expanding their footprints and developing their products.

Rehau-Automotive-Kft

Rehau-Automotive Kft, a Swiss maker of polymer products with German roots, will build a EUR150 million car parts plant in Újhartyán (47 km southeast of Budapest) to fill orders for Daimler’s expanding base in Kecskemét, also in Hungary. The 63,000 sq m plant, which will start up next year, will make bumpers and other exterior components.

According to the Minister of Foreign Affairs and Trade Péter Szijjártó, the government is supporting the greenfield investment, which will create 727 jobs, with a US$27 million grant. This is the third largest investment of its kind under the current government term since 2014.

Szijjártó as said, "The automotive industry is the flagship of the transition to the digital age, so that this country, which is competitive in this sector, will be competitive in the economy of the future as a whole."

Rehau is also expanding its base in Győr (northwest Hungary) to supply Audiʼs plant there, Szijjártó added. Audi will set up a US$24 million R&D centre at its base in Győr, with a government grant covering about one-fifth of the investment.

Continental

Meanwhile in other news, German technology company Continental is constructing a new manufacturing plant in Hungary to expand its automotive electronics production footprint. Continental currently has six plants and a tyre sales and logistic centre in Hungary. By choosing Debrecen as the seventh Hungarian location, Continental is increasing the production of electronic components for European markets. The groundbreaking ceremony is scheduled for the third quarter of 2018. It plans to invest a total of EUR100 million and will create 450 new jobs.

“To expand our European presence with our new plant in Debrecen is an important pillar in order to diversify our manufacturing plants for state-of-the-art automotive electronics internationally. Together with the Hungarian government we are able to significantly expand our capacity and further drive our technology development", added Dr. Hans-Jürgen Braun, head of the 30 Continental central electronics plants.

Continental also said as the second largest city in Hungary and also a regional centre, Debrecen is the ideal location for its expansion.

Construction is expected to be completed by the middle of 2019.

Products of Continental’s Transmission and Sensors & Actuators business units will be the first to be manufactured on a production site of 7,000 sq m and assigned to EU markets.


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