Minister of Foreign Affairs and Trade of Hungary Péter Szijjártó and U.S.-based company Dana Light Vehicle Driveline Technologies jointly announced plans for an investment totaling $49 million that will significantly expand production in Hungary at a gear plant in the city of Győr on Wednesday, April 5, 2017. The Hungarian government has pledged $1 million in grants to the investment project.

Speaking from the Hungarian city of Győr, Minister Szijjártó praised the high levels of bilateral economic cooperation between the United States and Hungary as well as the unprecedented levels of foreign investment in Hungary by US companies. “The United States has become Hungary’s number one export market outside the European Union, with exports increasing by 11 percent in January of this year,” said Szijjártó, adding that “1710 American companies are employing some one hundred thousand people in Hungary.”

Production by Dana at its 42,000 square-foot plant is expected to begin in January 2017 with an expected annual output of more than 50,000 automotive gear units, Hungarian news agency MTI reports. The investment is also expected to add an additional 200 jobs. Currently, Dana Holdings employs a staff of 600 at its factory in Győr.

Dana Holdings’ Hungarian subsidiary supplies Land Rover, Volkswagen, Jaguar, John Deere, Ford, General Motors and Manitou with a variety of gear and drive-train components. Dana Hungary’s net revenues surpassed $240 million in 2015.