The Hungarian Government and the Chinese automotive industry supplier Yanfeng Automotive Interiors entered into a partnership agreement.

Minister of Foreign Affairs and Trade Péter Szijjártó highlighted after the signing of the agreement: Yanfeng, a company which uses the latest cutting-edge technology, will help the Hungarian automotive industry to successfully switch to the new industrial era, and will further participate in the long-term development of Hungary.

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József Vallyon, Director of Yanfeng Hungary Automotive Interior Systems said: the company is implementing a major technological development at its site in Pápa. He added: they expect in the wake of the signing of the strategic agreement that, by relying on the positive relations maintained with the Government also to date, the parties will be able to cooperate in even more areas, including education.

Mr Szijjártó said that technological changes in the world economy even surpass the significance of the former industrial revolution, and industry 4.0 which is based on digitisation, electromobility and 21st century developments is opening a new era in production as well.

The Minister stated: a new era has set in in the Hungarian economy, the era of upgrades, and as a result, the costs of financing will decrease and the country will be better-equipped to attract capital.

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In the first ten months of this year, investments worth EUR 3.2 billion arrived in Hungary via the investment incentive system, while during the whole of last year this sum was EUR 1.4 billion. Thirteen thousand new jobs came into being with the aid of this system last year, while the number of new jobs up to the end of October this year is already in excess of 16,000, the Minister of Foreign Affairs and Trade said.

He highlighted that Eastern operating capital is coming to Europe increasingly, and it is the duty of Hungary to stand its ground in the keen competition. He added that one of the principal objectives of the policy of easterly opening has been achieved, namely that Hungary should become the regional centre of the European business expansion of Far-East countries.

Mr Szijjártó spoke in words of praise about Yanfeng which is a leading company on the world market of tier-one automotive suppliers, has 93 production units around the world, and provides jobs for 33 thousand people. In Pápa they manufacture interior parts for premium-category passenger cars, and employ 1,870 people at the Hungarian site where they provide ongoing training. They also cooperate with several Hungarian institutions of higher education, offer on-the-job apprenticeship training, and continuously increase the percentage of Hungarian suppliers which currently stands at 14 per cent.

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It testifies to the company’s long-term commitment in Hungary that they announced an investment worth HUF 7.5 billion a few months ago which will create 450 new jobs. The Government provided a cash grant of HUF 1.85 billion for the purposes of the project.

The Government entered into its 71st strategic partnership agreement with the Chinese company, Mr Szijjártó highlighted, adding: the strategic partners provide jobs for 164,425 people. Since the conclusion of the agreements, these business have created 13,633 new jobs, and employ 1,325 more people in the field of research and development than they did before.

The Minister of Foreign Affairs and Trade said: China is Hungary’s 11th most important trade partner, and Hungarian exports to China have increased by 22 per cent this year to date.

The automotive industry constitutes the backbone of the Hungarian economy: this sector accounts for 31.5 per cent of Hungary’s industrial output and provides jobs for 151,690 people. The production value of the automotive industry in the first nine months exceeded last year’s record for the whole year by 3 per cent, Mr Szijjártó added.