The greenfield investment, which will create 2,500 jobs, is supported by a HUF 49bn government grant, Minister of Foreign Affairs and Trade Peter Szijjarto said in Bekescsaba.

"The insulation materials made by Vulcan Shield Global here in Bekescsaba will be purchased by the most successful European companies and used in the space industry, car manufacturing, the aircraft industry, solar panel manufacturing and the petrochemical industry," he said.

"This activity requires a very serious research and development background so there is a good chance that Vulcan Shield Global will give Hungary a key role not only in production, but later on also in research and development," Szijjarto added.

He said the company was committed to cooperating with local vocational schools as well as to purchasing raw materials and equipment from local suppliers as much as possible.

The plant is scheduled to be completed by 2033. The first two units, due to be completed by 2029, will employ 1,200 workers. When it reaches full capacity, the 140,000sqm plant will make 10,000 tonnes of product a year.

The plant will be the company's first European base.

Vulcan Shield Global rep fields questions at muni council meeting

David Kneale, the general manager of overseas sales for Vulcan Shield Global, detailed the Singapore-based company's local investment plans at a meeting of the Bekescsaba (SE Hungary) municipal council.

Peter Szarvas, the city's mayor, acknowledged the impetus Vulcan Shield Global's local plant could give Bekecsaba's economic development, but said Kneale had been invited to address questions that had been raised.

Kneale said the plant would not employ guest workers, rather Vulcan Shield Global, which supplies high-temperature insulation solutions to a range of industries, aimed to tap the local labour market and would work with vocational schools on recruitment.

Initially, Chinese staff will train the Hungarian workers at the plant, he added.

The plant will be built in a state-owned industrial park, next to the base of Linamar Hungary, he said. Vulcan Shield Global will rent a smaller factory from Linamar where 20 people will start production using special fiber from China by year-end, he added.

The first phase of construction at the base will finish by mid-2026 or 2027 and the second phase will be completed by 2028, he said. The third phase is planned to finish by 2033, he added.

Kneale said it was important for Vulcan Shield Global to enter the European market because of a 50pc tariff on the company's Chinese products by the United States.

He acknowledged the support of the Hungarian Investment Promotion Agency (HIPA) to find local suppliers.

The announcement of Vulcan Shield Global's EUR 700m investment in Bekescsaba was made on Friday. The government is supporting the investment, which will create 2,500 jobs, with HUF 49bn.


Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

*********************************************************************************************

You're very welcome to comment, discuss and enjoy more stories via our Facebook page: 

Facebook.com/XpatLoopNews + via XpatLoop’s groups: Budapest Expats / Expats Hungary

You can subscribe to our newsletter here: XpatLoop.com/Newsletters

Showcase Your Business to Expats in the Loop:

As an independent portal we’re grateful to all commercial supporters who help keep you in the loop with fresh insights and inspiration. Do you want your business to reach tens of thousands of potential high-value expat customers? If so please contact us here.