Published: December 05 2023
South Korea's LG and Canada's Magna have joined forces to build their first European factory in Miskolc, Hungary. The factory, with a HUF 20 billion investment, will create over 200 new jobs and produce inverters and on-board chargers for electric cars.
Creation of Jobs and Investment
The joint venture between LG and Magna will bring HUF 20 billion of investment to Hungary's Miskolc, resulting in the creation of more than 200 new jobs. The factory will produce inverters and on-board chargers for electric cars, with trial production set to begin in 2025.
Government Support and Economic Growth
The Hungarian government is supporting this project with HUF 6.2 billion, demonstrating its commitment to investment and job creation. Despite the challenges posed by the coronavirus pandemic and the crisis in Ukraine, Hungary has not abandoned its economic policy of supporting investment and job creation, leading to significant records in investment, exports, and employment. Last year, Hungary achieved a record investment of €6.5 billion and exports of €142 billion, with 4.7 million people employed. This year, investment is projected to double to €13 billion, exports could grow by 6-8 percent to €150 billion, and Hungary is expected to climb the global ranking. The success of the automotive sector, which currently accounts for about 30 percent of manufacturing output, has greatly contributed to these achievements.
Impact on the Environment and Renewable Technologies
Péter Szijjártó, the Minister of Foreign Affairs and Trade, emphasizes the need to address emissions from the transportation sector, which currently accounts for 20% of emissions. Hungary's commitment to building green car factories aligns with the global shift towards environmental sustainability. By attracting Western and Eastern investments in electromobility, Hungary has positioned itself at the forefront of the global automotive transformation.
Continued Growth in the Automotive Industry
Over the past five years, Hungary has consistently been among the world's top 20 automotive exporters. The sector's production value has increased 3.5 times in the past decade, exceeding HUF 12 billion last year. This year is expected to be another record year for the automotive industry, with an 18 percent increase in performance in the first eleven months. The growth of the automotive industry is expected to contribute to the overall economic growth of Hungary.
Questions & Answers
Where is the joint European factory of LG and Magna being built? The joint European factory of LG and Magna is being built in Miskolc, which is located in North-East Hungary.
How much is the investment for the factory? The investment for the factory is HUF 20 billion (EUR 52.7 Million).
How many new jobs will be created by the factory? The factory will create more than 200 new jobs in Miskolc.
What products will the joint venture produce? The joint venture will produce inverters and on-board chargers for electric cars.
When will the trial production start? The trial production is scheduled to start in 2025.
How is the state supporting the project? The state is supporting the HUF 20 billion project with HUF 6.2 billion.
What are the records that Hungary has achieved in the field of investment and exports? Hungary achieved a record investment of €6.5 billion and exports of €142 billion last year. The country also has 4.7 million people employed.
How much is the expected investment and export growth for this year? Investment is expected to double to €13 billion and exports could grow by 6-8 percent to €150 billion this year.
How does the automotive sector contribute to Hungary's economy? The automotive sector accounts for around 30 percent of manufacturing output in Hungary.
What is the importance of Hungary's role in the automotive transformation? Hungary has become an important meeting point for Eastern and Western investment in the automotive sector, putting it at the forefront of the global automotive transformation.
What is the performance of Hungary's automotive industry in terms of exports? Hungary has consistently been among the world's top 20 automotive exporters in the last five years.
How much has the production value of Hungary's automotive sector increased in the past ten years? The production value of Hungary's automotive sector has increased 3.5 times in the past ten years, exceeding HUF 12 billion last year.
How much did the performance of the automotive industry grow in the first eleven months of this year? The performance of the automotive industry rose by 18 percent in the first eleven months of this year.