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Samsung To Create 600 New Jobs With EUR 332m Mega-Investment In Hungary

Ferenc Sullivan 2016.08.30.

The South Korean multinational conglomerate company Samsung is to create 600 new jobs under a HUF 100 billion (EUR 322m) investment in Hungary to produce batteries for cars running on electricity, it was announced in Budapest on Tuesday.

Speaking at a press conference, Péter Szijjártó, the country’s minister for foreign affairs and trade, said that the company will produce batteries for the European market at the plant in Göd, near Buapest, with the fully production capacity of 50 000 electric vehicle batteries per year set to be reached by 2018. 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.

The town of Göd in the Budapest metropolitan area, north of the capital, will see the South Korean mega-investment completed by 2018, according to plans

With the investment, Hungary will be solidifying its status as an important car producer, Mr. 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, the foreign minister revealed.

Cho Nam Seong, Samsung SDI’s CEO, noted that Samsung built its first plant in Hungary in 2001 but the decline in demand for cathode ray tubes meant that the plant had to be shut down. Bence Tuzson, state secretary for government communications, said that whereas the Samsung plant in Göd had closed due to technological obsolescence, Prime Minister Viktor Orbán had visited South Korea two years ago, negotiating with the leaders of Samsung. This visit formed the basis for the current investment, he claimed.

via mandiner.hu and MTI