“German-owned Robert Bosch Power Tool Ltd. is establishing a European competence centre and will be expanding its tool assembly capacity in Miskolc; the investment will cost some 14 billion forints (EUR 43.3 million)”, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Tuesday in Budapest.

Mr. Szijjártó told reporters that the government will be contributing some 3.4 billion forints (EUR 10.5 million) in non-returnable state funding towards Bosch’s investment in Miskolc. “The relationship between Hungary and the German machine industry is traditionally excellent, and some 29 percent of the investments realised in Hungary are performed by German investors”, the Minister of Foreign Affairs and Trade added.

DownloadPhoto: Bernadett Fejér/ Ministry of Foreign Affairs and Trade

“Hungary, and the Hungarian economy, has practically reached the level of full employment, and beginning from now the focus of investment promotion is no longer on creating jobs, but on assuring that the jobs already created in Hungary give rise to and create the highest added value possible and represent a high level of technology”, Mr. Szijjártó said. “Accordingly, we are establishing a new investment promotion category, and in future the level of non-returnable state cash funding will be calculated based on what new technology the investment brings into the country and to what extent it increases the competitiveness of the given sector of industry”, he explained. “We are calling this technology-intensive investment funding; this is a new category, through the application of which Bosch will be performing a significant technological development project at a value of 14 billion forints”, Mr. Szijjártó told the press.

“According to a survey by the German-Hungarian Chamber of Industry and Commerce, the German companies operating here are satisfied with their Hungarian investments, and 84 percent of them would bring their investment to Hungary again”, the Minister pointed out.

DownloadPhoto: Bernadett Fejér/ Ministry of Foreign Affairs and Trade

Managing Director of Robert Bosch Power Tool Ltd. László Fükő highlighted the fact that Bosch, the leading international supplier of technologies and services, will be constructing a new production hall for its electric power tool plant in Miskolc. By transferring some of the plant’s activities to the new production hall, the company will be manufacturing on a larger area and thus reducing costs, in addition to which the reorganisation also provides an opportunity for further growth, he explained.

Mr. Fükő indicated that the new, 20 thousand square metre production hall will provide a working environment for 1200 employees from the Miskolc power tool plant, who will be moving there from a building that is currently leased. In the new hall, they will be manufacturing the company’s cordless power tools for DIY enthusiasts and gardeners (such as drills, jigsaws, multifunctional tools, chainsaws and hedge trimmers), as well as the related, generally industrial-use batteries. In addition to offices, the new building will also include a canteen, laboratories, and a new 100-vehicle car park. The construction of the hall has already begun and is expected to be completed by the end of 2019, the Managing Director told reporters.

DownloadPhoto: Bernadett Fejér/ Ministry of Foreign Affairs and Trade

Robert Bosch Power Tool Ltd. was established in Miskolc in November 2001, and by today has become a determining factor not only within the company group itself, but also within the whole region. The plant, which currently occupies 38 thousand square metres, employs some 2400 people. This year, Robert Bosch Power Tool Ltd. in Miskolc was awarded the “Plant of the Year” award from among enterprises with an annual turnover exceeding 10 billion forints (EUR 30 million). In addition, the plant also won the “Best Management Processes” award, and Bosch’s development aspirations were also acknowledged with the “Industry 4.0 Professional Award”, which was presented for the first time this year.