A new Chinese battery industry supplier is to establish operations in Nyíregyháza, strengthening Hungary’s position as one of Europe’s key battery manufacturing hubs. Sinomatech Hungary, a subsidiary of China’s state-owned CNBM Group, plans to invest EUR 114 million in a separator film coating plant that could create 275 jobs by 2027.
The project will be developed in the Southern Industrial Park of Nyíregyháza on a brownfield site previously occupied by Lego and earlier by Flextronics, Portfolio reports. According to company plans, existing industrial buildings, including a production hall and warehouse, will be renovated rather than constructing an entirely new facility.
Critical battery component to be produced in Hungary
The plant will specialise in coating polyethylene separator films used in lithium-ion batteries. Separator films are among the most important components inside electric vehicle batteries, helping prevent short circuits while allowing the movement of ions between battery electrodes.
Unlike some other battery-material facilities in Hungary, Sinomatech will not manufacture the base film locally. Instead, untreated separator film will be imported from the company’s Chinese factories and processed in Nyíregyháza before being exported as a finished product.
At full capacity, the facility could produce approximately 7,500 tonnes of coated separator film annually.
The company has already submitted a comprehensive environmental impact assessment to the regional government office, with trial production expected to begin in the first quarter of 2027, subject to regulatory approvals.
Part of a vast Chinese industrial empire
Sinomatech belongs to the China National Building Material (CNBM) Group, one of China’s largest state-owned industrial conglomerates.
Founded by the Chinese state in 1984, CNBM initially focused on construction materials such as cement and concrete, G7 writes. Over the past four decades, however, it has expanded into numerous strategic industries, including renewable energy, composite materials, wind turbine components, energy storage technologies and battery materials.
The company employs around 200,000 people worldwide and indicates a wider trend among major Chinese state-backed corporations, which have increasingly diversified into fast-growing sectors linked to the green energy transition.
Hungary’s battery supply chain continues to expand
The investment adds another link to Hungary’s rapidly growing battery manufacturing ecosystem.
The country has already attracted some of the world’s largest battery manufacturers and suppliers, including Chinese giant CATL in Debrecen, South Korea’s SK On in Iváncsa and Komárom, and South Korean battery maker Samsung SDI in Göd.
Hungary has also become an important destination for separator film production. South Korean company W-Scope selected Nyíregyháza for a EUR 720 million separator film factory in 2022, while Chinese-owned Semcorp established a similar facility in Debrecen.
The arrival of Sinomatech strengthens eastern Hungary’s role in the European electric vehicle supply chain, particularly as battery manufacturers seek nearby suppliers for critical components.
Environmental concerns in focus
Battery-related investments have become a major pillar of Hungary’s industrial strategy, but they have also generated significant public debate.
Semcorp’s Debrecen facility has faced environmental surveillance over the past year. Trial operations were previously suspended following environmental concerns, while authorities later imposed fines related to fire safety issues. Following one incident, chemicals were reportedly detected in a nearby watercourse.
Against this backdrop, Sinomatech has emphasised that its coating technology requires minimal chemical use and generates relatively low emissions. The company says similar production technologies are already operating successfully in several European countries, including Sweden and Poland.
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What does this mean for Hungary?
Supporters of battery-sector investments argue that they bring high-value manufacturing jobs, strengthen Hungary’s export performance and help integrate the country into the fast-growing European electric vehicle industry.
Critics, however, question the long-term economic benefits, pointing to concerns over environmental risks, energy consumption, foreign ownership and the extent to which profits remain in Hungary.
The Sinomatech project differs from many recent investments in one important respect: the company says it will receive no direct Hungarian government subsidy. According to current plans, at least 80% of the workforce will be recruited locally, while Chinese specialists will mainly assist with technology transfer and the plant’s initial start-up phase.
If completed on schedule, the facility will begin full-scale operations by the third quarter of 2027, adding another major Chinese-backed investment to Hungary’s increasingly extensive battery manufacturing network.
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