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Samsung to invest EUR 322m in battery plant near Budapest
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Budapest, August 30 (MTI) – South Korea’s Samsung will invest 100 billion forints (EUR 322m) in a plant in Göd, north of Budapest, to produce batteries for electric vehicles for European markets, Hungary’s minister for foreign affairs and trade announced on Tuesday.
After serious competition from other countries in the region, the investment in Hungary will create 600 jobs, Péter Szijjártó said in Budapest.
Hungary has undertaken to heavily invest in local infrastructure and the town will give Samsung corporate rebates, he said, adding that this solution was necessary because European Union rules preclude government cash subsidies being made in the vicinity of the capital city.
Production is scheduled to start in the second half of 2018 and 50,000 electric vehicle (EV) batteries are expected to be produced each year, a company representative said.
With the investment, Hungary will be solidifying its status as an important car producer, Szijjártó said.
He noted that the Korean and Hungarian investment authorities, together with Samsung, will embark on a scheme to boost the capacity of Hungarian small and medium-sized suppliers. So far eleven firms are high on the list and negotiations are ongoing, he said.