By: The Quinnipiac University Economics Research Team, Jack French
Two US-based automotive companies, BorgWarner and Jabil, are investing a combined HUF 12 billion through their existing operations in Hungary. The Hungarian government is providing an additional HUF 4.4 billion in the form of grants. Those investments will preserve 5,300 jobs and create at least an additional 200.
BorgWarner’s 10 billion forint injection will go to the firm’s existing base in Oroszlány, Hungary. The company has a history of manufacturing in Hungary and currently produces various auto components like turbochargers and all-wheel drive solutions for multiple global automakers. BorgWarner Orozlány’s managing director Attila Bogar said this financial support would improve his firm’s ability to compete. Furthermore, the Orozlány facility has not laid off any workers during the pandemic period.
Jabil is investing over HUF 1 billion in Tiszaújváros. The business has been operating in Hungary since 2000 and serves customers in the automotive, computing and storage, industrial, and healthcare industries. It’s a strategic location, close to major European cities, and produces products for major companies. The funds, along with the government grant, will go towards future developments and preserving workplaces.
Sources: https://bbj.hu/business/industry/automotive/borgwarner-jabil-to-invest-in-hungarian-operations, https://www.borgwarner.com/newsroom/press-releases/2015/08/05/borgwarner-celebrates-grand-opening-in-hungary