CATL addresses shelving of Hungarian project and layoffs

Portfolio
The managing director of CATL's Debrecen plant has denied reports that the second phase of the project has been suspended and confirmed the company's long-term commitment to the HUF 3,000 billion investment, Index reported on Monday.
catl

Shen Feng, the managing director of CATL Debrecen, who was appointed this spring, categorically denied press reports about the suspension of preparations for the second phase in a statement.

Preparations for CATL's second factory unit in Debrecen are underway. The implementation of the second phase was never in question,

he said.

The managing director explained that the three cell factories would be built in stages during the investment process. In the case of the second factory unit, the most suitable products had to be selected first. Then, the manufacturing process had to be developed. Only then could the design of the production building begin. This deliberation process will be completed in the coming days.

Construction of the first cell factory is nearing completion, and equipment based on Industry 4.0 technology is currently being installed. Cell production is expected to begin at the end of the year, although the exact start date will depend on the outcome of the trial production phase.

Regarding labour market issues, Shen Feng said that the company continues to prioritise local labour. They currently employ almost 800 people and are constantly recruiting new staff.

He acknowledged that organisational changes had meant that some employees, including those on probation, had to be made redundant, but emphasised that the company had acted in accordance with Hungarian labour law.

Feng said that departing colleagues were offered outplacement opportunities, letters of reference and compensation packages that went beyond legal requirements.

More Chinese experts than originally anticipated will be involved in launching cell production at the end of the year, assisting with the commencement of mass production and the transfer of technological knowledge. He said that this process was similar at CATL's factory in Germany, where the proportion of Chinese experts could reach 30% during the ramp-up phase and then fall below 10% later on.

The company executive also confirmed that the company is cooperating fully with the authorities and the local government in connection with the labour market inspection launched by the Economy Ministry.

Cover photo: Portfolio

 

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