ThyssenKrupp is building a new 100 million Euro automotive plant in Hungary where it plans to produce engine components and steering systems.

Construction beings in the spring and by 2018 production of electronic power-assisted steering systems and cylinder head covers with integrated camshafts will begin.

The site is 70 km east of Budapest at Jászfényszaru and, once open, will create 500 new jobs.

ThyssenKrupp’s components division has recently acquired major orders from International OEMs, which, it claims, will enable the company to continue the division’s profitable growth and regionalisation strategy for its components business.

“This investment follows our strategy towards standardisation and cost optimisation in the automotive components business,” said Dr. Karsten Kroos, CEO of ThyssenKrupp’s components business. He explained how the company was localising production of two different technologies at one site. “We have already enjoyed success with this strategy in China and will also be employing it in other growth markets,” he said.

In 2014 ThyssenKrupp opened a chassis components plant in Shanghai where both steering and damping systems are produced. According to the company, central project planning, joint use of plant infrastructure, faster implementation of improvement measures and lower administrative costs are the key benefits of dual production plants.

Kroos said that Hungary offered ThyssenKrupp the right conditions for its growth plans thanks to its globally central location, good infrastructure and skilled labour force.

• Budapest is home to ThyssenKrupp’s steering technology software development centre. The company has opened a front and rear axle assembly plant for Audi in the Hungarian city of Györ.