SK On's battery factory in Komárom at risk of closure

SK opened its first factory in Hungary in Komárom in 2020, followed by an even larger plant in Iváncsa in early 2024. However, the decline in demand for electric cars has had a significant impact on the company's market position, leading to underutilisation of production capacity.

According to the company, the number of internal staff has been reduced by 565 in seven months, while the reduction of external staff started earlier. The downsizing is being carried out through various methods, including not giving pay raises, dismissals for minor infractions and traditional layoffs, the newspaper's sources said.

The seriousness of the situation is also indicated by the fact that the possible closure of the factory in Komárom has been raised.

Although no official confirmation has been received, workers report that current orders will run out in April or May, and no new orders have been received so far.

SK's situation is further complicated by the fact that it can only use a fraction of the capacity of its factory in Ivánca due to falling demand. This raises the possibility that production may be transferred to Iváncsa, creating further uncertainty for workers in Komárom.

The Ministry of Foreign Affairs and Trade did not respond to Telex's request, while SK's brief reply was that "our factories are up and running" and that they react flexibly to market changes.

Cover photo (for illustration purposes only): Getty Images