Hungarian authorities have ordered the immediate suspension of all activities at the Debrecen plant of Chinese battery separator manufacturer Semcorp Hungary Kft., citing serious fire safety deficiencies that they say pose a risk to people and property.
The decision marks the toughest regulatory action taken against the company so far. Unlike a previous order that halted only production, the latest measure prohibits all operations at the site, including manufacturing, maintenance, storage, and even cleaning. The Hajdú-Bihar County Government Office also imposed a HUF 3 million (approx. EUR 8,500) fire safety fine on the company.
Serious deficiencies found during inspections
According to the government office, fire safety inspectors carried out two on-site inspections in recent days. The first took place on 27 June following an incident the previous night, while the second was an unannounced inspection conducted during the night of 2 July. Officials reported several serious shortcomings, including:
- a non-functioning pump required to operate the fixed fire suppression system;
- improper modifications to acetone and oxygen concentration sensors;
- failure to ensure the continuous open water supply for the foam sprinkler system protecting the coating building.
The authority concluded that these deficiencies meant the safety of people and property could not be guaranteed. The shutdown order will remain in force until the plant’s foam fire suppression system can operate continuously and as intended. In addition, the company has been instructed to review both the design and operation of its fire protection systems to prevent future failures.
Decision follows environmental scandal
The decision comes just over a week after the environmental authority suspended separator film production at the factory following the discovery of severe groundwater contamination. Officials said aluminium concentrations exceeded the legal limit by more than 13,000 times, while laboratory tests also detected elevated levels of arsenic, lead, cadmium and lithium. That earlier order affected only production activities. The latest fire safety ruling now extends the ban to virtually every activity at the facility.
Mayor called on Semcorp to leave Debrecen
Earlier this week, Debrecen Mayor László Papp called on Semcorp to leave the city, saying the company had lost the trust placed in it through repeated regulatory violations. In response, Semcorp announced that it had launched a comprehensive investigation with the involvement of independent experts. The company said senior international executives from the Semcorp Group had travelled to Debrecen to oversee the inquiry and pledged to cooperate fully with the authorities.
A key supplier to Hungary’s battery industry
Semcorp manufactures separator film, one of the most important and sensitive components used in lithium-ion batteries. The material separates the battery’s anode and cathode, making it essential for both performance and safety. The company is a major global supplier to battery manufacturers, including CATL and Samsung, both of which have operations in Hungary.
According to G7, having separator film production close to battery plants offers significant logistical advantages, allowing manufacturers to reduce storage requirements and respond more quickly to changing production needs.
However, with battery production also expanding in Nyíregyháza and other parts of Hungary, alternative suppliers are gradually emerging. Meanwhile, the Hungarian government is planning to establish a dedicated authority to oversee the battery industry, with the new body expected to begin operating later this year.
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