Thyssenkrupp is building an engine and electric motor parts plant in Hungary.

Construction of a new factory in Pecs in the southwest of the country starts in September at a cost of about EUR50m.

The site will make valve train parts and electric motor components.

Start of production is planned for the end of 2020.

The new plant will create around 200 new jobs in the coming years.

Karsten Kroos, CEO of Thyssenkruppss automotive division, said: "CO2 avoidance in fleet consumption remains one of the key challenges for our customers.

"Our powertrain technology offers them solutions precisely for this - both for highly efficient IC engines and for hybrid or all-electric powertrains.

"With our new investment in Hungary we are expanding not only our production network in Europe but also our product portfolio and manufacturing
electric motor components outside Germany for the first time."

Thyssenkrupp has recently received orders from customers to develop and supply assembled rotor shafts for major EV platforms. The company already manufactures these key electric motor components in Ilsenburg in Saxony-Anhalt, Germany, and will add production in Hungary with the new factory.

Thyssenkrupp claims to be one of the fastest-growing automotive suppliers in Hungary.

Over the past three years the company has invested EUR150m euros setting up and expanding new components plants in the country.

In addition to a software development centre in Budapest, the company operates production sites for steering systems, powertrain components, springs and stabilisers in Jaszfanyszaru and Debrecen.

It also has an axle assembly plant and a steel service centre for automotive customers in Gyor.

So far, Thyssenkrupp employs 2,000 people at six sites in Hungary.

In June, the supplier opened a new automotive components plant in Sibiu, Romania producing dampers for customers including Daimler, Jaguar Land Rover and Porsche. The company built the new factory at a cost of around EUR60m (US$68m).