“German company ElringKlinger will be opening a new plant in Kecskemét with an investment of 21 million euros”, the automotive industry supplier’s financial director announced on Friday in Budapest.

Thomas Jessulat added: the new plant will produce heat shields for automobile parts using plastic injection moulding machines. Mass production in the highly automated, 10 thousand square metre production facility will being by the end of 2017.

Mr. Jessulat told reporters that the company has been operating in Kecskemét for many years and knows the region well. The location is of particular importance to the international automotive industry, and Kecskemét was chosen, amongst others, because of its good infrastructure, its close proximity to the international rail network and the high standard of professional training, he explained.

DownloadPhoto: Ministry of Foreign Affairs and Trade

He highlighted the rapidity of the project, mentioning that the company had received planning permission for the 12 hectare plot in mid-February. Mr. Jessulat also stressed that ElringKlinger focuses on using green technology and feels it is important to reduce pollutant and CO2 emissions.

Mayor of Kecskemét Klaudia Pataki Szemereyné stressed that ElringKlinger is crowning its 25-year history of excellent cooperation with the city by establishing an innovative production capacity in the city that represents the technology of the future, in addition to already operating the city’s industrial park.

She also told reporters that in recent years international working capital and corporate capital invested some 1.6 billion euros in Keckemét, in addition to some 650 million euros in funding in government and local government development funding.

The multiplicative effect of the automotive industry and the presence of international corporations can be felt to a major extent in Kecskemét. Infratructure, transport, vocational and higher education institutions, the social supply network and cultural and sporting life in the city are all developing, she added.

DownloadPhoto: Ministry of Foreign Affairs and Trade

Minster of State for Economic Diplomacy Levente Magyar, from the Ministry of Foreign Affairs and Trade told reporters that German industrial presence in Hungary is growing at a continuously steep rate and that together, the countries of the Visegrád Group are now realising a higher level of bilateral trade flow with Germany than France of the United States.

According to Mr. Magyar, what this absolutely requires is on the one hand that the most outstanding German enterprises recognise the opportunity that exists in Hungary and in Kecskemét, in addition to which an innovative and productive environment is needed that is capable of incorporating these investments and facilitating their success.

According to data available on the internet, in 2015 the ElringKlinger Group, which is based in Baden-Württemberg, realised total sales revenues of 1.5 billion euros following 1.3 billion in the previous year, with after tax profits of 95.8 million euros following 110.6 million euros in 2014.