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.
Facebook has reversed its decision and restored a video posted by Janos Lazar, head of Viktor Orban's Prime Minister's Office, in which he allegedly made racists comments while walking around a ... more
An independent candidate backed by opposition parties scored a stunning upset at a mayoral by-election in the town of Hodmezovasarhely, a Fidesz stronghold, on February 25, in a vote widely perceived ... more
A survey has found that most Czechs remain positive towards Europe, with 54% of respondents saying they would like to stay in the European Union and 34% stating they would be in favour of a ... more