Bosch will be expanding its Budapest development centre by 90 thousand square metres with an investment of 37 billion forints (EUR 101 million); construction will be completed in 2021.
At the foundation stone laying ceremony of Bosch’s Budapest Development Centre Campus II on Tuesday, Minister of Foreign Affairs and Trade Péter Szijjártó stressed that it is countries that provide an attractive investment environment that will be able to remain competitive in view of the fact that it is only worthwhile for enterprises that dictate the current tempo for the transformation of the global economy to develop and apply new technologies in these countries. “Hungary is having a significant effect on the digital industrial revolution, because as a medium-sized and extremely open economy it is particularly sensitive to external factors”, he said. According to the Minister, in the interest of further success we must assure that investors bring their development capacities here in the same way that they previously transferred their traditional production units here.
“Hungary offers a highly-trained workforce and low taxes, in addition to which it provides a high level of funding to enterprises that establish plants that create a significant level of added value. In addition, the Government is also striving to be the region’s frontrunner with relation to creating technological conditions, for instance with relation to extending broadband internet access to every part of the country”, the Minister said.
Mr. Szijjártó highlighted the fact that Bosch, which is a determining company at global level, is bringing to Budapest an investment that will further expand the development capacity of the automotive industry, which is particularly important to Hungary and last year generated a production value of over 8 trillion forints (EUR 21.9bn). “The Bosch facility, which will be based on Hungarian engineering expertise, will be the Group’s second largest European development centre and create new opportunities for testing electric and self-driven vehicles, in addition to which a 10 thousand square metre test track will also be constructed next to the development centre”, he added.
According to the Minister, the strategic alliance between Bosch and Hungary is also being reinforced by the mutual advantages, in view of the fact that the German company realised 1300 billion forints (EUR 3.56bn) in turnover last year, while the Hungarian economy has been expanded by 130 billion forints (EUR 155 million) in Bosch investments over the past two years and the company has concluded cooperation agreements with 14 institutions of higher education.
Head of Bosch Hungary Daniel Korioth said the expansion of the Budapest Development Centre is a strategic investment in view of the fact that it reinforces the company’s commitment to Hungary. “As an investor, Bosch finds large numbers of talented and highly-trained workers here, and offers them commissions that represent an interesting professional challenge”, he added.
Mr. Korioth told reporters that the Budapest Development Centre employs some two and a half thousand engineers and is independently capable of realising major development projects. Bosch Hungary’s Senior Vice President Oliver Schatz added that the new investment will add unique technical opportunities and assure the conditions for creative engineering.
President of Robert Bosch AG Klaus Peter Fouquet stressed that Hungary is vital to Bosch with relation to both production and development. “The company spent some 55 billion forints (EUR 150 million) on the latter field in Hungary last year, and 2600 of the company’s 13 thousand Hungarian employees work within the field of research & development”, he added. Mr. Fouquet said he expects the investment to assure long-term growth and create some two thousand new jobs for highly-trained employees.
This year, Bosch is celebrating the 100th anniversary of the establishment of its first Hungarian office. The regional distribution company re-established in 1991 operates 9 subsidiaries in Hungary and is the country’s largest foreign employer. Last year, the Bosch Group achieved over 78 billion euros in global turnover.
(MTI)
