This plant will ensure that the production of electric batteries will be carried out entirely without environmental pollution.Continue reading
The joint venture between South Korea’s LG and Canada’s Magna will set up its first joint European factory in Miskolc (northeastern Hungary), the Minister of Foreign Affairs and Trade announced on his Facebook page on Sunday.
In a video post, Péter Szijjártó said that LG is a leading supplier to the electric car industry and Magna is perhaps one of the world’s most “diversified” automotive suppliers, and their joint venture, LG Magna, has decided to set up its first European factory in Hungary.
The 20 billion forint (€52.3 million) investment will be made in Miskolc and will create 200 new jobs, with the government providing a 6 billion forint (€15.7 million) subsidy,
the minister emphasized.
Szijjártó noted that the factory will manufacture various equipment and components for electric cars, and electric motors, on-board chargers, and inverters.
The investment will further strengthen Hungary’s role in the transition to electric cars and help the Hungarian economy to remain on a growth path in the coming period, despite the extremely difficult international economic conditions. Szijjártó added that
the investment will also bring the country closer to not only breaking last year’s investment record of €6.5 billion, but also to doubling it to €13 billion by the end of the year.
The electric car industry “will be the biggest shaper of the world economy,” and the transition of the automotive industry to an electric base will determine which countries can benefit from the new global economic era and the revolutionary changes in the world economy, the minister underlined.
Szijjártó stressed that Hungary has been among the best in this race so far, as it has become one of the global leaders in the transition to electric cars, with a steady stream of investments in the production of electric cars and their batteries, guaranteeing that the Hungarian economy can continue to grow in the coming years.
The production value of the Hungarian automotive industry has increased three and a half times in ten years, exceeding HUF 12,000 billion (EUR 32.3 billion) last year, an annual growth rate of 31 percent. The sector’s competitiveness is also demonstrated by its 90 percent export share and by the fact that last year, Hungary exported automotive products to 173 countries around the world.
Via MTI, Featured image via Facebook/Audi Hungaria Győr
