Following the foundation stone-laying of Chervon Auto’s first plant outside China last October, the company is already expanding its production base in Hungary. In the second phase of the investment, they will establish new capacities in value of EUR 49.2 million in Miskolc to manufacture metal castings for electric vehicles which should entail the creation of 122 jobs. According to a decision by the Hungarian government, close to a quarter of the costs of the Chinese investment is covered by Hungarian taxpayers.
Chervon Auto will produce metal automotive parts as well as cast and machine-processed parts for e-cars in the capital of Borsod-Abaúj-Zemplén County. As a result of the second investment recently announced at the Shanghai Stock Exchange, the capacities of the first phase will grow, while one of Hungary’s largest cranes will also be installed. Accordingly, the size of the phase 1 production hall of nearly 26,000 sqm will go up to over 31,000 sqm of which construction has already begun.
As Gyula Gaál, company executive of Chervon Autó Precíziós Technológia (Európa) Kft. [‘Chervon Auto Precision Technology (Europe) Ltd.’] pointed out, the EU announced to reach full decarbonization by 2050, and according to another objective 50% of vehicles should be electric by 2030, so Chevron’s investment timing couldn’t be any better. Therefore, it is even more pleasant that the project succeeded in Hungary.
Europa and China will be the biggest markets for e-vehicles, so companies in Central-East-Europe have enormous potential to localize such manufacturing, Gyula Gaál said. The investment announced now will have its direct impact from 2024 on when it is projected to add 30% to revenues of phase 1 capacities; then by 2026 that ratio is to go up to 100%, he concluded.
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