Hungarian Investment Promotion Agency

Speaking on news channel Hír TV, Mr. István Joó emphasized that VSG’s EUR 700 million investment is of historic importance for the local economy, as it strengthens Békés County’s ability to retain its population.

The Singaporean specialist in ultra-high-temperature resistant insulation materials will create 2,500 jobs in Békéscsaba, which represents

a new opportunity for everyone who lives in Békéscsaba and wants to build a future there, and also for those who had to leave and seek work elsewhere

 – underlined Mr. István Joó.

The Government Commissioner for Investment Promotion and Implementation of Large FDI Projects told Hír TV that four countries had been competing for the investment project, and the final decision in favour for Hungary was made after a seven-month negotiation process.

Hungary’s success was due not only to the government’s creation of a competitive business environment and infrastructure improvements – such as the record-low 9% corporate tax rate or the new M44 motorway that connects Békéscsaba with the national motorway network –, but also the united support of all local stakeholders.

The municipality, the mayor, the local MP, and the county’s leadership all stood behind the project, showing VSG’s management that

everyone was pulling in the same direction and wanted these investments to happen

– emphasized Mr. István Joó.

The HIPA CEO stressed that securing VSG’s first European manufacturing base is particularly important also because it positions Hungary strongly in the next race for the next round of investments, for the location of the company’s research and development (R&D) center. He revealed that HIPA has already started negotiations with the Singaporean high-tech company on this matter.

In a separate interview with public broadcaster M1, Mr. István Joó noted that the project ranks among the ten largest handled by HIPA over the past four years. The first production unit is set to start operating in 2026, and over the following years, a plant complex employing 2,500 people will gradually be established.

VSG develops and manufactures advanced insulation materials that tolerate temperatures up to 1600°C. Their products are used in a wide range of industries, including aerospace, automotive, construction, energy and power.

HIPA was established in 2014 as a national investment promotion organisation, governed by the Ministry of Foreign Affairs and Trade. The agency’s most important task is to provide professional assistance to foreign and Hungarian companies wishing to invest in Hungary. Between 1 January 2014 and 31 December 2024, HIPA guided 2,200 projects in value of EUR 59.2 billion to create almost 170,000 new jobs.