Yanfeng creates 450 new jobs in Pápa

Yanfeng – leading automotive supplier from China – is expanding its plant in Pápa within the framework of an investment valued at HUF 7.4 billion. The capacity increase of the company – manufacturing upholstered vehicle interior components exclusively for exports – has been qualified by the Hungarian Government as a major priority for the national economy; it provided funding – with the cooperation of the Hungarian Investment Promotion Agency (HIPA) – in the amount of HUF 1.85 billion based on an individual government decision.

Péter Szijjártó, Minister of Foreign Affairs and Trade at the announcement of the investmentYanfeng, the leading automotive TIER1 supplier, operating 93 plants in 17 countries around the world, and supplying products to all major car makers, plays a key role among Hungary's Chinese partners. The company's global sales revenue reached USD 8.5 billion in 2015.

József Vallyon, director of Yanfeng Hungary Automotive Interior SystemsYanfeng currently carries out production in Hungary on an area of approximately 20,000 m2. The plant in Pápa manufactures upholstered components for premium category car interiors, such as instrument panels, door panels and floor consoles. Last year, the automotive supplier was the biggest taxpayer of the Local Government of the City of Pápa, contributing HUF 1.2 billion annually to the revenues of the second most populated municipality in Veszprém County. The company's sales revenue amounted to HUF 11.3 billion in the 2014–2015 financial year, which is fully attributable to export sales.

The Hungarian Government qualified the investment of Yanfeng to be a major priority for the national economy. The capacity increase of the company's production plant will be implemented in the value of more than HUF 7.4 billion, where funding based on an individual government decision (EKD) exceeds HUF 1.85 billion. The expansion will result in the creation of 450 new jobs, and the company has concluded a dual training agreement with Pannon University.

According to figures provided by the National Bank of Hungary, direct Chinese capital investment in Hungary reached USD 245.3 million in 2014. The value of Chinese working capital in Hungary is probably significantly higher, as most companies invest in Hungary through subsidiaries established outside of China. According to an expert estimate, Chinese investment in Hungary amounts to approximately USD 2.5 billion.