“The investors of the Eastern region are playing an increasingly determining role within the global economy; the distribution of power is being totally transformed”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Friday in Szirmabesenyő, near Miskolc, where Chinese-owned Starters E-Components Generators Automotive Hungary Limited (SEGA) is constructing a new production hall.

At the project’s foundation stone laying ceremony, the Minister pointed out that while in 2007 81 percent of total global investment was realised from Western capital, this ratio was reversed by 2018, when 58 percent of investments were realised from the capital of Eastern countries. “The large Eastern corporations have not only begun to compete with investors from Western countries, but in many instances are also beating them on their home field”, Mr. Szijjártó said.

“There are currently sixteen Chinese-owned large corporations operating in Hungary, many of which were previously under German, French, American or Swiss ownership. Chinese investors are significantly involved in the Hungarian economy”, the Minister indicated. “In recent years, 101 major investment projects have been launched or completed throughout the country at a total value of 1705 billion forints (EUR 5.05 billion). Some two thirds of these investments have arrived from Eastern countries, and 40 percent of new jobs are now being created thanks to Eastern capital”, he added.

Mr. Szijjártó told the press that SEGA’s plant in Miskolc is the company’s largest European production unit, and has been operating in the Borsod County capital since 2003. The company is involved in the development and production of automotive industry products, and the new production hall in Szirmabesenyő will have an area of 25 thousand square metres. The value of the investment was not disclosed at the event.

SEGA has manufactured over 15 million generators and 70 million automatic starters in Miskolc to date, and achieved a turnover of 400 million euros in 2018. The goal of the company is to contribute to the fight against climate change via a significant reduction in the pollutant emissions of passenger and commercial vehicles, it was stated at the event.

“The automotive industry will remain the flagship of the Hungarian economy, also thanks to this investment project”, Mr. Szijjártó declared. During the event, the Minister of Foreign Affairs and Trade signed a strategic partnership agreement with the plant’s directors.

(MTI)