Once a quiet town, Debrecen has transformed itself into a vibrant and bustling economic centre, attracting investors, and entrepreneurs from all over the world. Debrecen has earned its reputation as an important economic, cultural, and scientific hub in Hungary and the Central and Eastern European region. The city's strategic location, well-developed infrastructure, and government support have played key roles in its remarkable growth. Today, Debrecen is recognized as one of the 'investment champions' of the region.

Debrecen’s business landscape provides a promising environment for startups, multinational corporations, and everything in between.

Infrastructure and Facilities

One of the driving forces behind Debrecen's thriving business landscape is its commitment to fostering innovation and entrepreneurship. To lay the groundwork for its development, Debrecen has invested significantly in creating a robust business ecosystem.

Industrial Parks in Debrecen

Three new industrial parks have been established in the city which elevate Debrecen's business landscape. The parks encompass an area of approximately 1,400 hectares, and have been a crucial step towards attracting businesses from various sectors. These industrial parks offer state-of-the-art facilities, complete public road access, providing a conducive environment for companies to grow their operations. The availability of expansive land for development has been a significant advantage, allowing businesses to expand and scale with ease.

Below is a brief overview of the two industrial zones located in the city of Debrecen:

Southern Economic Zone

Debrecen's Southern Economic Zone has been awarded the title of Industrial Park of the Year 2021.' This recognition is a testament to commitment to fostering Debrecen’s business landscape. With its modern infrastructure, strategic location, and supportive business ecosystem, the park has attracted a wide range of industries, including manufacturing, logistics, and technology.

The Southern Economic Zone in Debrecen has already attracted notable international companies. Among them are Krones, Deufol, and Vitesco Technologies, all of which have established their presence within the expansive 600-hectare area of the industrial park. Furthermore, the park is set to expand with the upcoming addition of a new logistics centre by BHS Trans Ltd.

The growth and diversification of the park continue with the construction of ITK Holding's major bus factory and Semcorp's plant. Semcorp's investment of HUF 65 billion in the production of separator films for electric car batteries is expected to create 440 job opportunities. These developments further solidify the Southern Economic Zone's reputation as a thriving hub for industrial activity and investment.

Northwestern Economic Zone

The Northwestern Economic Zone has been a significant driver of economic growth in Debrecen’s business landscape. Its development began in 2018 with BMW's announcement to construct a sprawling plant covering 400 hectares within the zone. This car factory will serve as a major cornerstone of the Northwestern Economic Zone, creating job opportunities and attracting investments.

Moreover, the city's commitment to infrastructure development is evident through the HUF 55 billion investment allocated for its railway development. The 11.6-kilometer railway section that runs through the Northwestern Economic Zone will be renewed under this project. Moreover, Debrecen's main station will be located within this zone, further enhancing connectivity and facilitating the transportation of goods. The Northwestern Economic Zone is poised to become a thriving hub of industrial activity, bolstering Debrecen's business landscape.

Investments from Companies

The city's commitment to building a flourishing business landscape has not gone unnoticed. Numerous companies, both national and international, have recognized Debrecen's potential and chosen to invest in the city. This influx of businesses has not only led to job creation but has also sparked a vibrant economic ecosystem. This environment not only benefits the local community and stimulates further progress of the city.

Following are the two notable examples of such investments:

BMW’s NEUE KLASSE Battery Plant

The renowned automaker, BMW Group, has chosen Debrecen to build a high-voltage battery assembly for their NEUE KLASSE vehicles. The company plans to invest over two billion euros in the construction and launch of the entire plant by the end of 2025. The venture is expected to generate more than 500 new job opportunities, bolstering the Debrecen’s business landscape and investment potential.

Milan Nedeljković, a member of the Board of Management of BMW AG, Production, expressed their vision for the project, stating that Debrecen will host the most advanced plant in the world. With their cutting-edge iFACTORY, BMW aims to set new industry standards for vehicle production. This investment underscores their strategic approach to embracing and implementing e-mobility, positioning Debrecen as a pivotal player in the automotive industry.

The BMW Group's investment in Debrecen signifies a remarkable milestone for both the city and the automotive industry as a whole. As the project progresses, it is expected to bring forth new opportunities that will further enhance Debrecen's position in the global business landscape.

CATL’s Greenfield Investment

CATL, a leading global battery manufacturer, has chosen Debrecen as the location for its European electric vehicle (EV) battery manufacturing plant. The investment has not only created job opportunities but has also spurred Debrecen’s economic growth.

With an investment of 7.28 billion U.S. dollars, the plant aims to achieve a remarkable production capacity of 100 GWh. CATL's investment stands out as one of the top five largest greenfield investments by foreign companies in Europe over the past decade. Moreover, it represents the largest-ever investment in Hungary. Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto anticipates that the CATL factory in Debrecen will generate around 9,000 new job opportunities.

The establishment of the battery plant by CATL is expected to further invigorate an already thriving local electric vehicle (EV) ecosystem. The Hungarian Investment Promotion Agency (HIPA) confirms that the presence of the CATL factory will bolster the EV industry in the region. It is safe to say that CATL's battery plant will reshape Debrecen’s business landscape, driving growth and innovation in the region.

Economic Growth through Education

Debrecen is laying the foundation for a sustainable and thriving economy by aligning the educational offerings with the demands of the business sector. This substantial investment in the educational system reflects Debrecen's commitment to nurturing a highly skilled and competent workforce. This workforce will leverage its extensive expertise to enhance Debrecen's business landscape.

With the support of a government decree amounting to over EUR 108 million, Debrecen aims to bring about structural changes. It will enable the city to increase its student population from the current 78,000 to an impressive 100,000 by 2030.

Higher Education and Innovation

The city is home to several research institutions, including the University of Debrecen, which is renowned for its cutting-edge research and programs. The university provides a nurturing environment for aspiring entrepreneurs, offering mentorship, resources, and access to a network of industry professionals. In addition to the university's support, Debrecen boasts a range of initiatives and programs that encourage entrepreneurial ventures.

As prospective students of the University of Debrecen, you'll find yourself immersed in an environment that combines academic excellence with real-world business opportunities. The university's strong ties to the local business community provide students with internships, job placements, and research collaborations. These opportunities give them a head start in their professional journeys as they become a part of the Debrecen’s business landscape.

Conclusion

Debrecen has transformed into a thriving economic centre, attracting investors and entrepreneurs worldwide. Its well-developed infrastructure, industrial parks, and government support have fueled its remarkable growth. The influx of businesses and investments, including BMW and CATL, has further strengthened Debrecen's business landscape. The city's commitment to education and innovation ensures a skilled workforce for sustained growth. Debrecen's future as an investment champion and economic powerhouse looks promising.