“Dongwha Electrolyte Hungary Limited is establishing a plant with an investment of some 11 billion forints (EUR 31 million), with which it will be creating 91 new workplaces in the first phase”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Thursday in Budapest at a press conference to announce the investment project.

The Minister explained that investments in Hungary on the part of Samsung SDI, SK Innovation and other major Korean battery manufacturers have created a demand for suppliers that also made Dongwha’s investment in Hungary suitably justified. “There was major competition for the investment in view of the fact that the Dongwha Group has plants on four continents. On this occasion, however, the company decided to bring a plant to Europe, and accordingly the Group’s first European plant will be established in Hungary, in Sóskút, with a production area of 13 thousand square metres, where they will partly be producing the electrolytes needed during the manufacturing of batteries, as well as recycling the solvents and chemicals used during the production of batteries”, he added.

“Five years ago, Hungary was in 26th place in the world rankings relating to electromobility, and fundamentally concerning countries that export batteries for use in vehicles, but it is currently in 10th place”, Mr. Szijjártó highlighted. “Over the past four and half years, since the beginning of 2016, a total of 23 major investment projects linked to the production of batteries have arrived in Hungary. These represent a total investment volume of 1,300 billion forints (EUR 3.63 billion) and have created 6,300 new workplaces”, he stated. “The Koreans are leading the field in view of the fact that Samsung SDI and SK Innovation have brought, or are in the process of establishing, the world’s largest battery production capacities to Hungary. And the supplier base of these two large corporations are continuously establishing facilities in Hungary”, he added.

The Minister also mentioned that Hungary’s relations with South Korea are free of any kind of problem, with bilateral trade flow increased by a further 16 percent year-on-year during the first two quarters of the 2020, Hungarian exports increasing by 26 percent, and trade flow for the year already approaching 2 billion dollars by the end of June despite the global pandemic.

In a video message, President of Dongwha Enterprise Lee Si Jun said Dongwha is constructing an electrolyte and NMP (N-Methyl-2-Pyrrolidone) refining plant in Sóskút. “Dongwha will be the first enterprise in Hungary to begin the refinement of NMP, which will recycle the NMP generated during the production of secondary batteries. This reduces the use of resources and will lead to a reduction in the price of raw materials”, he explained. According to the company president, this kind of distribution of resources between Dongwha and Hungary will create efficient cooperation. “This will be an important springboard for Hungary to be among the frontrunners in Europe within the battery production industry”, he declared.

Member of Parliament András Aradszki (KDNP) said the Pest County No. 1 electoral district he represents welcomes those investments that have been able to contribute to the development of the Hungarian economy, to the standard of living of the people working there, and to the development of the region’s settlements.

(Ministry of Foreign Affairs and Trade / MTI)