The plant will make electronic, power-assisted steering systems and cylinder head covers with integrated camshafts. Construction is set to begin this spring.

“The expansion of production capacities in Hungary is necessary because thyssenkrupp’s components division has recently acquired major orders from international OEMs. This will enable thyssenkrupp to continue its profitable growth and regionalization strategy for the components business,” the company said in a statement.

thyssenkrupp said that in recent months, it has received approximately EUR7 billion in orders for electronic, power-assisted steering systems. Meanwhile, the demand for cylinder head cover modules with integrated, assembled camshafts is high.