The Answer to Growing Demand
Even the Hungarian Minister of Foreign Affairs and Foreign Trade, Péter Szijjártó, was impressed. He recently met with Arndt G. Kirchhoff to announce investment plans in our Hungarian plants.
In new production and logistics halls, we will manufacture body components for the electric car industry. The minister emphasized that this is of crucial importance for the growth of the economy; it is particularly important in the current difficult economic situation to decide where a company develops its capacity.
"A country that can succeed and invest in this new industry can guarantee that its economy will continue to grow in the future," the minister said. He added that KIRCHHOFF Automotive’s investment here is a "sign of confidence in the country and an indication of positive expectations for its future economic development."
Besides Germany and China, Hungary is the only country where all three German premium car brands have production capacities. Hungary is already the fourth largest producer of electric batteries in the world. "Hungary has become the European bastion of this new industry that is emerging before our eyes, and it is impossible to imagine this automotive revolution here in Europe without us," Péter Szijjártó emphasized.
The minister explained that German companies continue to represent, by far, the largest investor community in Hungary: “Around 6,000 German companies employed more than 300,000 people in Hungary, and more and more investments were coming from Germany. This shows that the confidence of German investors in Hungary is stable, it is not affected by political reasons, and that the investment climate remains attractive for German companies."
Bilateral trade between Germany and Hungary has also reached a new record, rising 12 percent last year to more than 60 billion euros. It exceeded 24 billion euros in the first four months of this year, with another record expected by the end of the year.
KIRCHHOFF Automotive is investing around 20 billion HUF (approx. 50 million euros) in new production and logistics halls in Esztergom and Dorog. This will create 80 new jobs. Series production for four customers will start in Dorog in 2024, in a modernized production and logistics hall covering 6,300 m². Two production and logistics halls with a total area of 6,200 m² will be built at the headquarters in Esztergom.
Info: In Hungary, KIRCHHOFF Automotive employs more than 700 people. KIRCHHOFF Automotive has been present here since 2004. At that time, the company began manufacturing body components exclusively for Suzuki. Since then, KIRCHHOFF Automotive has been expanding and can serve around 20 customers with its current capacity. In 2019, the Esztergom site was expanded. Having received orders for larger and more complex assemblies, KIRCHHOFF Automotive has embarked on a completely new expansion phase.