The Singapore-based company has laid the cornerstone of a 280 million HUF plant in Békéscsaba, which will employ 2,500 people.
Singapore-based Vulcan Shield, which supplies high-temperature insulation solutions to a range of industries, laid the cornerstone of a HUF 280bn plant in Bekescsaba (SE Hungary) on Thursday, the Ministry of Foreign Affairs and Trade said in a statement – the MTI reported.
The government is supporting the investment, which will create 2,500 jobs, with HUF 50bn, Minister of Foreign Affairs and Trade Peter Szijjarto said at the ceremony. Vulcan Shield has also decided to establish an R+D base in Budapest, he added.
The plant in Bekescsaba is Vulcan Shield’s first manufacturing base in Europe. Vulcan Shield is starting production at a temporary site in the city in April, while the plant is under construction.
Sixty local businesses participated at a suppliers forum Vulcan Shield organised earlier, and 1,500 Hungarians have applied with the company following a jobs fair.
According to an earlier press release, within the framework of the development, „world-class manufacturing plants” will be established that will produce the most advanced ceramic and alumina fiber materials.
These are exceptional high-resistance materials that are indispensable for the automotive industry, aircraft manufacturing, electronics, and other key sectors. As such, they serve as critical components in aircraft and rocket engines, heavy industrial facilities, and next-generation consumer electronics.
In the first phase of the investment, a 50,000 m² plant will be built for the production of ceramic fiber textiles capable of withstanding temperatures of up to 1,600 °C. At the same time, a 40,000 m² facility will be constructed for the continuous production of alumina fibers, which also offer outstanding resistance under extreme operating conditions.
Both plants will have an annual capacity of 450 tons and will create a total of 1,200 skilled jobs by the end of 2029.
In addition, as part of a separate third project, VSG plans to launch the production of next-generation automotive materials. This third project will require a further 1,300 skilled workers from 2033 onward, once the factory reaches its full planned annual capacity of 9,000 tons. As a result, the total number of employees could grow to 2,500, making the VSG investment comparable in scale to the Mercedes plant in Kecskemét — which was previously the second-largest investment in the Southern Great Plain region after the BYD development in Szeged.
