[IAA 2023] LG Magna Drives European Business with New Factory in Hungary

Establishing a 26,000㎡ Factory by 2025
Producing Drive Motors... Expanding Core Components like Inverters

LG Magna e-Powertrain (hereinafter LG Magna) is accelerating its global business expansion by establishing an electric vehicle parts production plant in Europe.

LG Magna announced at a press conference held on the 4th (local time) ahead of the opening of 'IAA Mobility 2023' in Munich, Germany, that it will build an electric vehicle parts production plant in Miskolc, northeastern Hungary.

LG Magna plans to build a plant with a total floor area of 26,000㎡ by 2025. This is the first plant constructed in Europe, a strategically important market.

The plant will produce drive motors and plans to manufacture core electric vehicle powertrain components according to customer demand in the future. The electric vehicle powertrain consists of drive motors, inverters, converters, etc., which generate and transmit power, serving as the heart of electric vehicles. Upon completion, approximately 200 new employees will be hired.

Image of LG Magna Hungary factory. [Photo by LG Magna]

LG Magna selected Hungary as its European production base considering accessibility to major European automakers and synergy with Magna. Miskolc, which has developed industries such as automotive and machinery, boasts excellent logistics and transportation infrastructure. Major European automaker plants are located nearby, and both the Hungarian government and Miskolc city authorities have been very proactive in supporting LG Magna's new plant construction.

LG Magna will strengthen its global market penetration by using the new plant as a base. In addition to plants in Incheon, South Korea; Nanjing, China; and Ramos Arizpe, Mexico, it will operate a total of four plants, with overseas production facilities expected to significantly contribute to strengthening its European and global business.

In July, Jo Joo-wan, President of LG Electronics, declared at the LG Electronics Future Vision presentation that they will enhance synergy with Magna and expand markets in North America and Europe to lead the future electric vehicle powertrain market.

Jung Won-seok, CEO of LG Magna e-Powertrain, said, "The establishment of the new plant will be an opportunity to actively respond to the demand in the European market and accelerate LG Magna's growth."

Eun Seok-hyun, Head of LG Electronics VS Business Division, emphasized, "The European plant reflects our commitment to meeting the demands of European automakers and providing innovative electric vehicle powertrain solutions."

This content was produced with the assistance of AI translation services.