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American automotive companies BorgWarner and Jabil are launching investments in Hungary worth a combined 12 billion forints (EUR 33.5m) and will receive 4.4 billion forints of government support, the minister of foreign affairs and trade said on Tuesday.

Péter Szijjártó said BorgWarner is planning to invest 6.6 billion and 4.3 billion forints in two developments in Oroszlány, in north-eastern Hungary, while Jabil will complete project in Tiszaújváros, in the north-east, worth just over 1 billion forints.

The projects will help retain 5,300 jobs and create over 200 new ones, Szijjártó said.

The minister said both companies would contribute to the performance of Hungary’s automotive sector, helping the country strengthen its position in the European and global auto industries.

The automotive industry accounts for 30 percent of the output of Hungary’s manufacturing sector, the minister said, adding that every investment in the sector gives a boost to the national economy as a whole.

Deal Reached to Hike Minimum Wage 4%
Deal Reached to Hike Minimum Wage 4%

A deal was reached on Monday to hike the minimum wage by 4 percent from Feb. 1. The monthly minimum wage for unskilled workers before tax will rise from 161,000 forints (EUR 450) to 167,400 (EUR 466), while skilled workers will receive 219,000 forints (EUR 610), up from 210,600. The agreement struck by unions, employers […]Continue reading

Attila Bogár, chief executive of BorgWarner’s Hungarian unit, said the company had managed to retain its staff in spite of the pandemic and had even increased headcount.

Tibor Czakó, Jabil’s director-general for central Europe, said the company employs more than 4,000 people in Hungary, adding that the new investment would contribute significantly to the retention of its staff and further developments.

featured image: BorgWarner’s factory in Oroszlány; via Boglárka Bodnár/MTI