Korean Firm to Set Up First European Units in Hungary

Within the framework of its investment of EUR 32.1 million, the South Korea-based company Dongwha is building already two units in Sóskút, NW of Budapest: one for producing electrolyte and another to recycle the solvent NMP. Both activities are closely linked to the EV (electric vehicle) battery manufacturing value chain, creating an additional 90 jobs, mainly for engineers.

Dongwha was founded in 1948, initially as a company focusing on wood-based products. Today, however, it has an extensive scope of activities, including the production of chemicals as a new key sector. The company group, with its headquarters in Seoul, has been listed on the South Korean stock exchange since 1995. Its global turnover reached USD 923 million in 2019, giving work to almost 2,800 employees.

Dongwha Electrolyte manufactures electrolyte-based lithium ion batteries – its products are primarily used in portable electronic devices. Outside South Korea, where an R&D centre has also been established, the company has units in China and Malaysia, with a total of 160 employees, according to recent data.

The two units to be built in Sóskút will create another 90 jobs in the Dongwha Electrolyte division. The electrolyte producing plant, of 5,400 square metres, will supply Hungary and the region's battery manufacturers with electrolyte, whereas the NMP recycling unit, occupying an area of 7,200 square metres, will contribute to sustainability in battery manufacturing.

With these two investments in Hungary, the South Korean company is set to establish itself on the European market, further strengthening our country's position in the field of electro-mobility, the Hungarian Investment Promotion Agency reports.