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Japanese TDK’s Automotive Investment Creates 250 New Jobs in Szombathely

MTI-Hungary Today 2024.06.03.
The new TDK building in Szombathely.

The HUF 26 billion (EUR 66.5 million) investment of Japanese company TDK will create 250 new jobs in Szombathely (western Hungary). The development is not only of local and Hungarian significance, but also of great international importance, Minister of Foreign Affairs and Trade Péter Szijjártó stressed.

The Minister of Foreign Affairs said that the Japanese company has implemented a large-scale investment program worth HUF 26 billion, and will expand its production area by 12,000 square meters. The state has contributed HUF 6.7 billion (EUR 17 million) to the development, helping to create 250 new jobs.

We are honored that one of the world’s largest electronics companies will manufacture products here that are not yet produced in Europe,

and that these sensors for various cars will be supplied to car manufacturers all over the world,” he highlighted. “This investment is therefore not only of Hungarian, but also of international importance,” he noted, adding that the project was awarded in a highly competitive environment.

Minister Szijjártó stressed that the global economy is undergoing huge changes as a result of the recent severe crises. He pointed out that this has not been able to stop the revolutionary development of the automotive industry.” In Hungary, too, there is an increasing number of investments that are already linked to the new era of the automotive industry. And not only are we in the queue, we are at the front of the queue,” he remarked.

The politician said that this is due to the fact that Hungary has become an important meeting point for companies from the East and the West. He also emphasized that it was unique that in addition to the three premium German car brands, Hungary is home to five of the world’s ten largest electric battery manufacturers.

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The Minister also pointed out that 200 Japanese companies are currently operating in Hungary, providing jobs for some 30,000 people. He noted that these companies represent the highest technological standards and have a high added value, thus making a significant contribution to the transformation of the Hungarian economy. He underlined that in the past ten years, the government has supported 70 Japanese companies, creating 5,000 new jobs and boosting bilateral trade to USD 3 billion.

Péter Szijjártó highlighted that

Vas County had performed excellently in recent years, with 55 major investments worth HUF 490 billion (EUR 1.2 billion) in the last ten years, tripling local industrial output.

TDK will carry out the largest investment in the company’s 30-year history in Szombathely, between 2022 and 2026, they emphasized. This will include a new production base of more than 12,000 square meters for the manufacture of automotive sensors, used to produce new components such as battery temperature sensors for electric vehicles, engine and gearbox oil temperature sensors for internal combustion engines, and air conditioning systems.

TDK Szombathely is a member of the Tokyo-based TDK Corporation, one of the largest European development and manufacturing centers for electronic components and systems. TDK is one of the largest companies in Szombathely, employing 2,200 people.

Photo via MTI/Katona Tibor

The company’s temperature and pressure sensors are used in the automotive industry as well as in household applications in washing and drying machines, dishwashers, refrigerators and freezers, heating, ventilation, and air conditioning systems.

TDK Hungary Components generated revenues of EUR 297.7 million in the financial year ended March 2023, compared to EUR 260.4 million in the previous period. In addition, it made a profit after tax of EUR 1.8 million after a loss of EUR 5.1 million.

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Via MTI; Featured image via MTI/Katona Tibor

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