China to realise 141 million euro geothermic power plant project in Hungary

China will be realising a 45 billion forint (EUR 141 million) power plant project in Hungary, in addition to which air passenger links between the two countries could also be expanded”, Minister of Foreign Affairs and Trade Péter Szijjártó, who is currently on an official visit to China, said in a statement to Hungarian news agency MTI on Wednesday.

Speaking from Shanghai, the Minister told the press that according to the agreement concluded on Wednesday, Zhejiang Kaishan Compressor Co. will be constructing a 40 megawatt geometric power station in the Pest County town of Tura, which in addition to generating electricity will also provide heating for agriculture and housing. In addition, the company will be setting up its geothermic division’s headquarters in Budapest, he announced.

The company is the world’s third largest producer and the East Asian region’s market leader within the power station compressor sector, Mr. Szijjártó added. According to the Minister, in addition to investments, the development of relations between the two countries is also confirmed by a marked increase in tourism. 230 thousand Chinese tourists visited Hungary last year, and this justifies the expansion of transport links, he said. Mr. Szijjártó told the press that advanced negotiations are ongoing with the world’s 7th largest airline, China Eastern Air Holding, on the establishment of a direct air passenger route between Budapest and Shanghai.

The Minister said with relation to his various meetings that China continues to regard Hungary as a state with one of the most attractive investment environments. A total of almost 4 billion dollars in investment have arrived in Hungary from the East Asian country to date, he added.