Flextronics, which employs 6,000 people in Hungary, will invest two billion forints (five million euros) in research and development in Zalaegerszeg (western Hungary), with the Hungarian Government providing 670 million forints (1.7 million euros) in support, the Foreign Minister reported at the announcement of the US-owned electronics company’s investment on Monday.
Speaking at the event in Budapest, Péter Szijjártó noted that since Donald Trump took office in January this year, six new US investments have been announced in Hungary, showing that good political relations also contribute to the development of economic cooperation.
He announced that the government had also signed a strategic cooperation agreement with the company, as its operations extend beyond itself, with 98 percent of its products being sold on export markets.
In addition, the company works with over 70 percent Hungarian suppliers and is also involved in the continuous development of the domestic workforce.
Through the newly announced investment, Flextronics will increase the number of employees in the Zalaegerszeg factory’s R&D department to 70.
The Minister said that Flextronics is now the 99th company with which such an agreement has been signed, and these partners employ more than 200,000 people. He added that with the signing, the number of American strategic partners has grown to 16, putting them on a par with the Germans at the top of the list.
Ágota Péter, Vice-President of Flex Hungary and Foreign Minister Péter Szijjártó signing a strategic cooperation agreement. Photo: MTI/Kovács Attila
He also pointed out that the industrial output of Zala County has grown by over 30 percent in ten years. He believes this is partly due to the fact that the state has supported 52 major investments here during this period, thereby facilitating the creation of roughly 3,000 new jobs.
Minister Szijjártó explained that the current era is the most tense since the end of the Cold War, with dramatic changes taking place in the world and a new global political and economic system emerging. He emphasized that Hungarian-American relations have also changed significantly since President Donald Trump took office. “Previously, Hungarian-American relations were characterized much more by accusations, stigmatization, and impatience. Since January, however, all of this has been replaced by friendship and trust as the cornerstones of this bilateral relationship,” he said.
He also noted that good political cooperation has led to increasingly strong economic ties between Hungary and the United States.
To support this, he highlighted that
American companies are the third largest investor community in Hungary, with 1,700 of them employing over 100,000 people, and that the value of bilateral trade in 2024 approached 10 billion dollars, a figure that will certainly be reached this year.
The Minister recalled that over the past eleven years, the government has provided support for 145 major American investments, contributing to the creation of approximately 20,000 new jobs.
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Via MTI, Featured image: Facebook/Flextronics Official Site Zalaegerszeg Hungary
The post US Electronics Company Announces Multi-Million Euro R&D Investment appeared first on Hungary Today.
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