Chinese interest in Hungary's car industry

New investors and Chinese-owned companies that are already active in Hungary but in different sectors show interest and can enter the local car parts production scene, the business daily Napi Gazdaság reported on Wednesday.

László Bogdanovits, managing chief secretary of the National Association of Hungarian Vehicle Parts Manufacturers, said China’s Precision Products Manufacturing (PPM) Ltd. has already announced its intention to enter a medium-sized (EUR 20-150 million annual revenues) Tier 1 or Tier 1 supplier in Hungary.

The Hungarian financial web site portfolio.hu reminds  According to Opten data, there are 30 vehicle parts makers in Hungary that meet this criterion.

The Hungarian Investment and Trade Agency (HITA) confirmed that Hungary could be an attractive manufacturing target in at least two sectors for Chinese investors. One of these is the automotive industry and the other is the production of unique and branded electronics.

HITA is presently in talks with nine Far East (not only Chinese) investors on potential parts production in the Hungarian automotive industry. As for the venturing of Chinese companies already in Hungary into the automotive sector the agency said that even if it did have information of such plans, it would not be able to disclose information about it in the planning phase at the request of the investor.

(A Tier 1 supplier is a company that makes products specifically for one of the OEMs (original equipment manufactuters). A Tier 2 supplier sells products to a Tier 1 supplier, while a Tier 3 supplier sells products to Tier 2s. Basically, Tier 1s are manufacturers, Tier 2s are dealer associations and Tier 3s are local dealers.)

(Source: portfolio.hu)