Chinese electric vehicle giant BYD will open its first European electric vehicle factory in Hungary, Foreign Minister Peter Szijjarto confirmed on December 22.
BYD, one of the world's largest electric vehicle manufacturers, also said in a statement on its official WeChat account on December 22 that the new facility will be built in the southern Hungarian city of Szeged and is expected to provide thousands of jobs for local workers.
Calling the event the latest step in the Central European country's efforts to become a global hub for electric vehicle production, Foreign Minister Szijjarto said on Facebook on December 22 that the project "will be one of the largest investments in Hungary's economic history."
The Hungarian government will provide financial incentives for BYD to build the factory, Mr. Szijjarto said, adding that details would be announced later.
The construction of the plant will “further strengthen the position of the Hungarian economy, further strengthen the foundations of long-term economic growth and further strengthen Hungary's position in the global electric vehicle transition,” Prime Minister Viktor Orban's top diplomat said.
Hungary has in recent years sought to become a global hub for lithium-ion battery production in an era when governments are increasingly looking to curb greenhouse gas emissions by shifting to electric cars.
BYD is producing electric buses at its plant in Komarom, northwestern Hungary. Meanwhile, the Szeged plant is planned to be the first major European production facility for a Chinese EV manufacturer. Photo: Sustainable Bus
South Korea's Samsung, China's CATL and other companies have built factories across Hungary, sparking backlash from some locals and environmental groups worried about the environmental consequences.
CATL’s 100 GWh battery plant in Debrecen, which is expected to create around 9,000 jobs, is Hungary’s largest electric vehicle battery factory to date, part of Mr Orban’s government’s strategy to cater to foreign carmakers present in the country – such as German carmakers Audi, BMW and Mercedes-Benz – as they switch to battery-powered vehicles.
BYD, Tesla’s biggest global rival in electric vehicles, already has an electric bus assembly plant in the northwestern Hungarian city of Komarom. The Komarom plant, which opened in April 2016, is BYD’s first in Europe, according to the company.
Meanwhile, the planned Szeged plant will be the first major European production facility for a Chinese EV maker. In addition, BYD currently has more than 30 industrial parks and manufacturing facilities globally, with factories in the US, Brazil, Japan and India.
Szeged's “geographical location and logistical development” helped the city win the bid to build BYD's factory, Mayor Laszlo Botka said, adding that preparation of the 300-hectare site for the future factory has already begun.
Szeged is located near Hungary's border with Serbia and is home to a rail corridor that the Hungarian government is developing with Beijing as part of China's Belt and Road global trade initiative (BRI).
On December 22, Foreign Minister Szijjarto also said that BYD's decision to open a factory in Hungary was made after 224 rounds of negotiations between the company and the Hungarian Government.
“This investment underlines the fact that Hungary is at the forefront of the technological revolution,” the diplomat said .
Minh Duc (According to AP, Reuters)
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