EMCC European Monitoring Centre on Change

SK Battery Hungary

Company/Organisation:
SK Battery Hungary

Geographic Location

Country: Hungary
Region: Komarom-Esztergom; Kozep-Dunantul; Dunantul
Location of affected unit(s): Komárom

Company

Sector: Manufacturing
Manufacture of electrical equipment
27.20 - Manufacture of batteries and accumulators
Number Employed: 856
Group: SK Group

Employment Effects

Announcement Date: 04-04-2020
Type of Restructuring: Business expansion
Employment Effect Start: 04-04-2020
Foreseen End Date: 31-03-2022
Planned Job Creation: 550

Additional Information

The Hungarian subsidiary of South Korean chemical enterprise SK Innovation is expected to launch production in its first Hungary-based electric battery plant in Komárom in August 2020. At the same time, another battery plant is under construction as well – in the same town – that is expected to begin operation in late 2021. Together, the two plants are projected to create some 1,410 jobs. By 2023, however, the combined workforce of the two plants together might even reach 2,500. The factories will manufacture batteries for electric cars.

The investment cost of the two factories amount to a combined HUF 416 billion (roughly €1.2 billion as at 23 April 2020).

The Hungarian site is the Korean firm’s first foreign location. SK Innovation has expanded its Hungarian investment plan due to fact that the explosion of demand for electric vehicle batteries kept defying expectations.

There is no indication of any change in the expansion plans of SK Innovation due to the COVID-19 pandemics.

Samsung SDI, Inzi Controls and GS Yuasa have also chosen Hungary as sites for electromibility-related battery production, establishing Hungary as a prominent hub of battery production.

Sources: