One of China's largest automotive suppliers expands in Hungary
The expansion will enable PEX it to start producing products related to the electric and intelligent vehicle industry, in addition to the brake wear indicators and cables it traditionally produces. The investment will create 35 jobs.
PEX Automotive is part of Baolong, one of the largest automotive supply groups in China, which employed more than 4,500 people and had sales of nearly HUF 150 billion in 2020. PEX Automotive develops and manufactures brake pad wear indicators, distance measurement sensors and EGT sensors for exhaust gas temperature measurement for the automotive industry.
The greenfield investment will include a 7,500 square metre production hall, 2,100 square metres of office space and 2,500 square metres of warehouse, with production expected to start in early 2023.
The investment is an integral continuation of Baolong's growth strategy in Europe following the establishment of the BH SENS joint venture and the acquisition of PEX Automotive Systems Ltd.,
said Zuqiu (Charles) Zhang, CEO of Shanghai Baolong Automotive Corporation.
The plans are to develop the factory in Inselszentmiklós into the European headquarters of the company's automotive sensor division.
The investment will give a new impetus to economic co-operation between Hungary and China, Minister of Foreign Affairs and Trade Péter Szijjártó said on Thursday.
He also said that the HUF 5 billion development will be supported by the state with HUF 1.5 billion, which will create 35 new jobs in addition to the existing 180.
The minister highlighted that the automotive industry employs 160,000 people in Hungary and accounts for almost 30% of total manufacturing output. With a 90% export share, the sector's production value last year exceeded EUR 9,400 billion.
Szijjártó underlined that Hungary benefits a lot from its economic and political co-operation with China. Bilateral trade turnover, for example, is constantly breaking records, he said, adding that it exceeded USD 11 billion last year after an 11% annual increase. And the value of Chinese investments in Hungary exceeded USD 5 billion.
Cover photo: MTI/Lajos Soós
