Soon, a 175-million-euro investment will begin, within which the Hungarian-owned Magnus Aircraft Zrt. plans to establish an 18,000 square metre building complex for aircraft manufacturing in China, according to the company’s statement.
The company, located near Pécs at the Pogány Airport, is engaged in the production of self-developed small aircraft and the development of electric-powered aircraft. According to the information provided by the company to MTI, the management recently visited China to assess the progress of the project, which started in September last year. Based on a previous agreement, a showroom, a composite facility, an aircraft assembly unit, a maintenance unit, and a development centre in collaboration with Óbuda University will be realised near Shanghai, in the city of Wuxi.
As part of the 175-million-euro investment, 70 per cent of which is financed from a Chinese state subsidy and is being realised at a local airport, the showroom will be completed within six months, and the construction of the first production unit will start in July. After the completion of the investment, the Chinese–Hungarian joint venture, Jiangsu Magnus Aircraft Manufacturing, is expected to create a total of 300 jobs, with Hungarian employees playing a leading role.
Replying to an MTI question, CEO of Magnus Aircraft László Boros said that the company had planned stepping into the Chinese market since the start of their investment in Pogány in 2017. He added that the initial period of the Chinese investment will focus on assembly and development. He recalled that the investment was made possible after the obtaining of the type certification for the Magnus Fusion aircraft from the Civil Aviation Administration of China (CAAC) in early 2022.
During the Chinese visit, Magnus also signed a long-term cooperation agreement with Rizhao Wohe Aviation Service Co., Ltd., which ordered 50 Fusion aircraft for a value of 65 million yuan. The order will be fulfilled within three years. Following the signing of the strategic cooperation agreement, a commercial agreement was concluded between the Chinese company and the Chinese subsidiary of Magnus Aircraft Zrt., which includes the goal of selling 45 aircraft annually in the region, according to the CEO.
Boros also mentioned that as a result of these developments, the company has received more favourable customs and tax conditions and has signed a cooperation agreement with a Chinese company manufacturing radiological and medical technology equipment, as well as composite tools. The company, which established a 7,000-square-metre production base with a total investment of 6 billion forints at the Pogány Airport near Pécs in 2019 with a Hungarian government subsidy of 2 billion forints, previously stated that despite the pandemic, ten Fusion planes were produced in 2021 and 15 in the previous year, and this year the company expects to produce between 45 and 60 units.
Currently employing 80 people in Pogány, the company plans to provide jobs for an additional 40 people this year, focusing on energy efficiency investments. According to the company’s statement, they have achieved a net revenue of 550 million forints in 2022 and closed the year with a loss. The leadership expects to break even this year and achieve positive results in the following years alongside exponentially increasing revenue.
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