A joint venture between South Korea’s LG and Canada’s Magna will set up its first common European factory in Miskolc, eastern Hungary, Minister of Foreign Affairs and Trade Péter Szijjártó announced on his Facebook page on Sunday.
In a video post, Szijjártó said that LG is one of the leading suppliers to the electric car industry and Magna is perhaps one of the world’s most diversified automotive suppliers, and their joint venture, LG Magna, has decided to build its first European factory in Hungary.
The HUF 20 billion investment (€50 million) will be made in Miskolc and will create 200 new jobs, with the government providing a HUF 6 billion subsidy, he said. Szijjártó added that the factory will produce various equipment and components for electric cars, various elements for electric motors, as well as on-board chargers and inverters. He added that the investment will bring the country closer to not only breaking last year’s investment record of €6.5 billion but doubling it to €13 billion by the end of the year.
“The electric car industry will be the biggest shaper of the world economy in the coming years, and the transition of the car industry to an electric base will determine which countries will be able to benefit from the new world economic era, which countries will be able to benefit from the revolutionary changes that the most important industry in the world economy will undergo,” the minister said.
Several major global automotive firms have production facilities in Hungary, where the weight of the auto sector is now approaching 21 percent of Hungary’s total exports.