God to offer incentives to Samsung for Hungarian electric car battery plant

By bne IntelliNews August 30, 2016

South Korean electronics producer Samsung is set to invest HUF100bn (€322mn) in a plant close to the Hungarian capital that will produce electric vehicle batteries, local press reported on August 30.

The investment is one of several in the auto sector announced this year. While the trend is welcomed by Budapest, it is becoming clearer that the Hungarian economy risks growing too dependent on the auto sector. At the same time, with a €1.6bn investment due from Daimler, and suppliers also piling in, the tightening labour market is becoming a serious challenge to further expansion.

Peter Szijjarto, Hungary’s foreign minister, said Samsung’s investment in the town of God will create 600 new jobs. “Hungary will invest in local infrastructure and God will give Samsung corporate rebates,” Szijjarto said, adding that this was necessary because current EU regulations don’t allow the state to offer aid to support investment in the vicinity of Budapest.

The factory is planned to start production in 2018 to produce batteries for 50,000 electric vehicles per year. The plant will "help us save logistics costs and quickly cope with demand from customers, as European companies have manufacturing bases around Hungary," Reuters quoted a statement of Samsung SDI.

Related Articles

Explosion at Austrian gas hub interrupts supplies to Italy, Hungary and Slovenia

An explosion at the site of Austrian OMV’s Baumgarten natural gas hub has interrupted gas transit to Italy, Slovenia and Hungary, the Austrian government’s electricity and gas markets regulator ... more

Hungary planning to strike fair deal on INA, says Orban

Hungary is ready to strike a "fair deal to end the poisonous dispute" surrounding MOL and Croatian energy company INA, Hungarian PM Viktor Orban said after he met his Croatian counterpart Andrej ... more

Hungary gets ready for China-CEE “16+1” summit

The Hungarian government will join the China-Central and Eastern Europe Investment Cooperation Fund, a private equity fund organised by the Export-Import Bank of China, by investing €50mn, ... more