“Bosch is establishing a logistics centre in Hatvan that is unique within the Central European region and built exclusively on state-of-the-art digital technology”, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Wednesday following negotiations with the German industrial giant’s directors in Stuttgart.

“The 17 billion forint investment will create 250 new jobs, construction will begin within days and be completed by the end of February next year”, the Minister said in a telephone statement to Hungarian news agency MTI.

Mr, Szijjártó highlighted the fact that according to the agreement concluded with the company, which is among the world leaders in digital technology development and the application of new solutions, Bosch regards Hungary as one of the most important locations for its research & development and innovation activities.

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“This is indicated by, amongst other the construction of the new digital logistics centre in Hatvan, but also by the fact that Bosch is preparing to cooperate with Hungarian universities in the interests of performing its research & development activities”, the Minister said, pointing out that Bosch is the largest foreign manufacturing employer in Hungary, providing jobs for some 15 thousand people.

He stressed that thanks to digitalisation, which is also known as the fourth industrial revolution of Industry 4.0, “we are experiencing the dawn of a new era within the global economy in which the criteria for success are changing completely”.

“In this new era the most important prerequisite for success is the most rapid introduction and economic application of ‘previously unimaginable technological advances’. There is huge competition to achieve this, and not just among enterprises, but also between countries. The most important question in the competition between countries is who can convince enterprises that develop these new technologies that it is worth realising the investments that are required for the development of new solution there, in the given country”, the Minister of Foreign Affairs and Trade explained.

Mr. Szijjártó underlined the fact that “Hungary has entered the competition” with Europe’s lowest taxes, lowest corporation and personal income tax, and with tax benefits linked to research & development thanks to which increasing numbers of foreign enterprises are choosing Hungary not only as their production site, but also as a the location for their research @ development activities.

“This is also indicated by Bosch’s commitment to Hungary. The outstanding significance of the company is indicated by the fact that it is in first place with regard to the most patents submitted in Europe, and in Hatvan the company is establishing a logistics centre that is unique in Central Europe, and in which work is almost completely automated”, Mr. Szijjártó said.

The Minister also pointed out that Baden-Württemberg is Hungary’s second most important partner among the states of Germany, with bilateral trade flow exceeding 11 billion euros last year and increasing by a further 7 percent during the first four months of 2017.

With relation to his recent meetings with the state’s political leaderships, Mr. Szijjártó highlighted the fact that cooperation on education is also extremely strong in view of the fact that Baden-Württemberg is one of the founders and financers of the Andrássy Gyula German Language University of Budapest.

The Minister added that during his visit to Stuttgart an agreement had also been concluded on the fact that Hungary and Baden-Württemberg will also be tightening their cooperation within the field of dual vocational training.

Bosch has been active in Hungary for over a century, since 1898. It is leasing an area of over 60 thousand square metres in Hatvan’s industrial park for a period of 16 years via the National Industrial Park Management and Development Company, and the new centre will  serve the logistics requirements of the whole region.

(Ministry of Foreign Affairs and Trade/MTI)