China's automotive company Xinzhi is establishing a plant in Hungary through a HUF50bn (€120mn) investment.

Headquartered in Taizhou, the company, is a national high-tech enterprise and one of the top ten enterprises in China's automotive electronics and electrical appliances' industry.

The Tier 2 company, with 4,000 employees, is a market leader in the production of one of the most important basic units of electric motors.

According to its website, the company has formed strategic partnerships with Valeo, Bosch and Denso. In China, it also collaborates with major manufacturers such as BYD, Nio, Dongfeng and Geely.

The investment in Hatvan, 60 km north of Budapest, will create 900 new jobs, Minister of Foreign Affairs and Trade Peter Szijjarto said on January 13. The city's industrial park, with a population of 20,000, also hosts Bosch Group's automotive electronics division, the largest of its kind globally.

Hungary remains a preferred destination for Chinese investments due to its strategic geographic location and there are over HUF4 trillion worth of projects currently underway, Hungarian officials said earlier.

According to Szijjarto, the investment by Xinzhi further strengthens Hungary's position in the global market for transitioning to EVs.

Szijjarto said Hungary is at the forefront of the electric automotive transition and leader in global automotive renewal.

The company is also bringing serious research and development activities to Hungary, in addition to production, and will be hiring 30 highly trained engineers, he added.