SK Innovation to build second battery plant in Hungary
Image by Pixabay
South Korea’s SK Innovation will invest a total of some HUF 239 billion (approx. EUR 750 million) to build its second battery plant in Komárom (NW Hungary), creating 1,000 new jobs, Minister of Foreign Affairs and Trade Péter Szijjártó announced at a press conference in Budapest on Wednesday.
Szijjártó told the press that construction of the facility, which will manufacture batteries for electric vehicles, will begin in March, with production expected to begin in late 2021 or early 2022, according to official Hungarian government website kormany.hu.
SK Innovation earlier purchased a 430,000 square-meter plot of land in Komárom for the construction of the 112,000 sqm building, he added.
The announcement follows less than a year after the company began construction of a first, HUF 97.5 billion plant to make lithium batteries for electric vehicles in Komárom, for which the government awarded a non-repayable grant of HUF 8.17 bln at the time.
“The government will be contributing to the project with non-returnable funding, but negotiations with the investors are still underway with relation to the level of that funding,” the minister stated of the new investment, adding that the high added value-generating production and deployment of state-of-the-art technologies in Hungary justified the state assistance.
SK Innovation picked Hungary for the investment amid fierce regional competition, drawn by the quality of the local labor force, Szijjártó asserted. He noted that three of the big five Asian battery makers - SK Innovation, Samsung and GS Yuasa - now have manufacturing capacity in Hungary.
Szijjártó said the region is capable of meeting the workforce requirements of the new battery plant in Komárom, as the city and surrounding settlements have a high level of skilled labor and higher education is following the demands of the labor market.
Hungary Gasoline Prices 3% Over Regional Avg
Hungary to Address Future of Cohesion Policy During EU Presi...
Cordia’s Marina City Project Begins
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
