Novation Tech Also Favored by Government Subsidy Scheme

Similarly to Turkish Şişecam Automotive, Italian Novation Tech, also engaged in the automotive sector, also announced its latest investment this week as well. Close to 35% of the HUF 1.3 billion investment cost is covered by Hungarian taxpayers through a government decision.

The project that promises to create at least 50 jobs is also related to the most recently initiated VNT3 incentive improving schemes which concern capacity expansion and high-tech installation, respectively.

With this investment, Italian-owned Novation Tech intends to modernize its site in Szeghalom in Békés county, in the South East of Hungary. The company, which produces among others carbon fiber reinforced structural composite parts, plans to establish an automated painting department and upgrade the prepreg laminating rooms to meet the highest quality requirements.

An important part of the investment of the company is to purchase their rented production hall and a high-power transformer station to help a more economical operation and contribute to their green energy growth.

Competitiveness boosting programs have been gradually launched under government subsidy schemes (VNT) in Hungary to counter the economic effects of the pandemic. According to the Hungarian Investment Promotion Agency, these triggered developments in up to 30 different industries.