Ningbo Zhenyu Technology, a China-based manufacturer of progressive lamination dyes and high-precision machining equipment, has announced that it plans to invest $65.9m (471.86m yuan) to construct a new factory in Debrecen, a city in eastern Hungary. The factory will manufacture precision structural parts used in electric car batteries and will enable the company to better serve its European customers. The new site is expected to be operational by the end of 2027.

Hungary has risen to become a global automotive hub for foreign direct investment in recent years, in spite of concerns in some circles about the authoritarianism displayed by the country’s prime minister, Viktor Orbán. Earlier in July, Huayou Cobalt of China announced a $1.4bn lithium battery plant investment in Hungary, demonstrating just how strong a reputation the country has for automotive investment. Hungary has also had a strong record of attracting German carmakers, drawn by the country’s abundant talent, cheap labour and plentiful clusters.

Debrecen sits in eastern Hungary, close to the border with Romania, and is the country’s second-largest city after capital Budapest. It hosts operations by automotive companies such as BMW, Continental and CATL, as well as facilities for National Instruments, IT Services Hungary and BT.