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.
Fact LG Magna
was launched in July 2021, as a joint venture between LG Electronics and Magna. Their aim is to combine LG’s capability in EV component and Magna’s experience in traditional automotive business. More than 1,900 LG Magna employees in Korea, North America, Europe, South America, and Asia are working organically throughout technology innovation, marketing, Research&Development, purchasing, and manufacturing.
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.
This year has seen a succession of automotive investment news. Whether it is a battery factory or a car manufacturer, there have been all kinds of announcements. Among battery factories, there is China’s Eve Power in Debrecen (eastern Hungary), the Chinese manufacturer Sunwoda
in Nyíregyháza (northeastern Hungary), and Contemporary Amperex Technology Co. Limited (CATL) in Debrecen. The Chinese electric car manufacturer, BYD, is building its plant in Fót
(near Budapest). Furthermore, the construction of the BMW
factory in Debrecen is progressing well and Japan’s Suzuki is expanding it’s plant in Esztergom (northern Hungary) as well.
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