The Hungarian government will provide 10.6 billion forints to support the project, said the foreign minister said, citing the high added value of the investment.

Péter Szijjártó said Thyssenkrupp employs about 1,000 people in Hungary. The project will take the form of a greenfield investment in Jászfényszaru, in central Hungary, which will become the third location for the group in the country in addition to its Budapest research and development competence centre and its plant in Győr, in north-western Hungary.

Car industry had a more than 30% share in Hungary’s industrial output last year, and its production value went up to 7.83 billion forints in 2015 from 6,690 billion, Szijjártó said. There are 740 companies operating in the segment, employing 144,000 people, he added.

The foreign minister also noted that there are 6,000 German companies operating in Hungary which employ about 300,000 people. One fifth of all foreign direct capital invested in Hungary is from Germany, which accounts for more than one quarter of Hungary’s foreign trade.

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MTI photo: Soós Lajos