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Mercedes In Talks With Hungarian Government Over Possible Factory Expansion

Tamás Székely 2015.06.11.

The German Daimler has started talks with the Hungarian government on the possibilities of expanding in Hungary, an official at the foreign ministry said. Daimler is considering raising capacities at the Mercedes factory in Kecskemét, central Hungary, as well as upgrading technology, state secretary in charge of economic diplomacy Levente Magyar said after holding talks with a Daimler senior executive in charge of investments during a visit to Stuttgart. Daimler is “extremely satisfied” with the plant in Kecskemet which has produced outstanding results as part of the Stuttgart-based global Daimler network, Magyar said. The expansion could be completed in one or two years, he said.

Levente Magyar also attended an investor forum in Stuttgart where medium-sized firms with holdings in Hungary were mulling further investment. Talks with Reinhold Gall, Minister of the Interior of Baden-Württemberg, focused on responses to migration targeting Europe. Magyar said Hungary’s handling of entrants to the EU at its borders had a direct effect on Baden-Württemberg, which is one of the most popular destinations in Germany for economic migrants. He said talks between Hungary and Baden-Württemberg must start soon on how this “shared problem” can be tackled.

Earlier in the day Levente Magyar reopened the consulate general in Stuttgart, which closed in 2005. He said the state had tens of thousands of German residents with strong ties to Hungary. Baden-Wurttemberg is one of Hungary’s leading economic partners in Germany with the state’s 25 percent share in Hungary’s 40-billioneuro bilateral trade with Germany. “Based on their population and economic size, Hungary and BadenWurttemberg can be considered equal partners,” Magyar said. Addressing the ceremony, Reinhold Gall welcomed the consulate’s reopening, which he said was “timely”.

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