The construction of the Chinese company’s plant is proceeding according to plan, and the government is already in talks to double the value of the investment.

Minister of Foreign Affairs and Trade Péter Szijjártó recalled that the Chinese company is spending HUF 65 billion to build its plant in Debrecen in the Southern Economic Zone, where it will produce separator foils for batteries. Semcorp will create 440 jobs in Debrecen and has already started recruiting applicants. Production at the 100,000 square meter separator film plant is expected to start in the first quarter of 2023.

Semcorp’s Debrecen development was awarded “The largest greenfield investment of the year” at the National Investment Agency’s Investor of the Year 2020 gala event.

The minister announced the company’s intention to substantially double the value of its investment in Debrecen, which is currently under discussion.

Semcorp’s current investment in Debrecen is receiving HUF 13 billion in state aid. According to Szijjártó, if an agreement can be reached, Semcorp could create significantly more jobs in Debrecen than announced, up to 1,000 in total. The minister added that Debrecen will become an automotive stronghold, as not only BMW is building a factory here, but also many automotive suppliers.

Semcorp Director James Shih said earlier that they had initially planned to build the plant with an initial estimate of EUR 180 million, but that their plans were evolving and they could adjust this figure upwards during the planning process.

Semcorp Group is the largest separator film supplier for lithium-ion batteries in the world. The director also said that by 2020, 10 percent of the world’s separator foils for electric car batteries will be produced in Debrecen.

He added that they had looked at a number of countries and cities as potential investment locations and had chosen Hungary because of its investor-friendly environment, especially for Chinese companies, and the availability of a highly skilled workforce with a decent wage structure. He added that Hungary has become a hub for the e-mobility industry, and their Debrecen site will be close to many of their customers using lithium-ion batteries.

In the Southern Industrial Zone, Semcorp’s plant is located between the Krones and Vitesco Technologies factories. The industrial park already houses the Deufol plant and the logistics center of BHS Trans Kft. It will also house the Debrecen plant of EcoPro BM and the larger bus factory of ITK Holding.

Source: dehir.hu

Author: Debrecen4U