CAIP starts construction of first overseas factory in Hungary

Shanghai (Gasgoo)- On November 18, Chinese automotive supplier Jiangsu Changshu Automotive Trim Group Co., Ltd. ("CAIP") broke ground on its first overseas factory in Hungary, marking a significant milestone in the company's global expansion.

The new facility, located in the Southern Industrial Park of Nyíregyháza, spans an area of 60,000 square meters with a total investment of €60 million. Once operational, it is expected to produce 450,000 sets of automotive interior and exterior trim products annually.

CAIP said it aims to establish the plant as a benchmark for "digital green manufacturing," focusing on the production of intelligent cockpit modules.

Nyíregyháza's industrial park, which covers 950 hectares, has been attracting significant Chinese investment. Just a month earlier, Chinese battery supplier Sunwoda broke ground on its new electric vehicle battery factory in the same park. CAIP is now the second Chinese company to establish operations there, underscoring Hungary's appeal as a hub for Chinese enterprises expanding into Europe.

Tao Jianbing, General Manager of CAIP's Hungary facility, emphasized the strategic importance of the project. “Building a plant in Hungary aligns with our group's global development strategy. It enables us to provide better localized services to European clients while fostering trade and economic cooperation between China and Europe. We hope to contribute Chinese expertise and innovation strength to the sustainable growth of the global automotive industry.”

Hungary's central location in Europe, coupled with its reputation as a major logistics hub, makes it an ideal base for CAIP's European expansion. The country boasts a well-established automotive ecosystem, hosting production facilities for 14 of the world's top 20 automakers. The company said these strategic advantages solidified CAIP's choice of Hungary as a gateway to the European market, extending its reach to Africa and West Asia as well.