Samsung will start manufacturing batteries for electric cars intended for the European market in Göd, and some 600 new jobs will be created within the framework of a project worth one hundred billion forints, Péter Szijjártó said at a press conference.
Download
The Minister highlighted: the project was awarded at the end of a fierce regional competition, in return for which major infrastructure developments were undertaken in the region, and Göd agreed to reduce the burdens of the Korean company. He added: this was necessary because, due to EU regulations, the Government cannot provide cash grants for a project in the vicinity of the capital.
Mr Szijjártó told the press: two processes of the renewal of the world economy meet with the Göd project. On the one hand, capital is no longer flowing only from the West to the East, but also in the reverse direction as successful Far-East businesses are creating manufacturing facilities in Europe. On the other hand, the development of the automobile industry in the 21st century is about digitisation, and the spread of electric vehicles, he explained.
As he said, one of the world’s most significant companies is implementing a project in Hungary now. Samsung has half a million employees world-wide, and its sales revenues amounted to USD 300 billion last year.
The Minister took the view that with this project, Hungary will increasingly attract the attention of the most important car manufacturers.
He remarked: the Korean and Hungarian investment agency and Samsung launched a joint programme with a view to increasing the supply capacity of Hungarian small and medium-sized businesses. As part of this, 11 companies were awarded high grades, while there are ongoing negotiations with another seven.
Jung Se-Woong, one of the Vice-Chairmen of Samsung said that they are planning to reach full manufacturing capacity by 2018 when they will service some 50 thousand electric vehicles.
He reiterated: Samsung SDI first started out as a picture tube manufacturer in 1970, and became one of the premier cutting-edge businesses in the sector. In 2000, the company switched the focus of its activities to the production of batteries, and gained the number one spot in the world. The company first built a plant in Hungary in 2001 which manufactured picture tubes for the European market, but decline in demand forced them to close the factory, he said.
He told the press: we may expect a dramatic increase in the sale of electric cars in the near future, and therefore the company is making strenuous efforts to start production in Europe, and to reinforce its presence on the continent.
Jung Se-Woong said: they looked at a great many countries before they chose Hungary. The plant – where in addition to the existing buildings, new ones will also be built – will feature the latest, cutting-edge technology, and they will pay great attention to the protection of the environment, he said.
State Secretary for Government Communication Bence Tuzson, Member of Parliament for the constituency, reiterated: the Göd factory closed down earlier due to technological progress, but two years ago when Prime Minister Viktor Orbán paid a visit to Korea, he consulted with the executives of Samsung, and together they laid down the foundations of the project now announced.
He took the view that, with this factory, Hungary is taking a major step forward as another mega-project is coming into being which points in the direction of the future: electromobility.
The State Secretary believes that the project will bring progress to Göd as well, as it will raise revenue and will create jobs. Additionally, major projects worth some two billion forints will be launched in Göd, he said.
Samsung SDI Magyarország Zrt., which had a sales revenue of HUF 76 billion in 2012, closed down its 322,000-square metre picture tube factory in Göd in 2014 as demand for picture tubes sharply declined due to the high electricity consumption of the plasma technology.
Samsung’s current decision regarding the project in Göd was induced by the fact that all European car manufacturers are dynamically developing their electric cars, and the significance of batteries is therefore continuously increasing.
(Ministry of Foreign Affairs and Trade)
