Germany has successfully secured two substantial foreign direct investment (FDI) agreements with prominent South Korean corporations. The first involves battery manufacturer SungEel HiTech and electronics giant Samsung, while the second hails from LG Chem, a subsidiary of LG.
As reported by German media outlets, SungEel HiTech and Samsung have set their sights on constructing a state-of-the-art facility in Gera, a city nestled in the German state of Thuringia. This ambitious project, valued at €45 million (equivalent to 64.28 billion South Korean won), will span an expansive 60,000 square meters. It is expected to yield approximately 100 job opportunities and will be dedicated to the meticulous dismantling, crushing, and drying of 20,000 tonnes of lithium-ion batteries annually, a quantity corresponding to the power source of 60,000 electric vehicles. The raw materials derived from this disassembly process will be crucial in the development of new-age batteries.
This project received approval from the Gera City Council on the 7th of September, albeit by a narrow majority. The construction phase is slated to commence in March 2024, with the new facility anticipated to become operational in early 2025.
In a separate venture, LG Chem, a South Korean chemical conglomerate, unveiled its European Customer Solution Centre (CS Centre) in Frankfurt in mid-September, as reported by the Korea Economic Daily. This CS Centre, valued at a formidable $3.76 million (approximately €3.51 million), boasts an impressive floor area spanning 7,400 square meters. Its core objective is to provide comprehensive technical solutions encompassing product development, quality enhancement, and productivity improvements to customer companies and strategic partners.
These developments come at a time when Germany has been making headlines in the investment landscape, despite the backdrop of elevated interest rates within the eurozone and a somewhat stuttering domestic economy.
Back in August, UK-based real estate developer Verdion unveiled ambitious plans to establish a €100 million (£86.7 million) industrial and logistics park in close proximity to the German capital, Berlin. This initiative aligns with the ongoing efforts to bolster Germany’s industrial and logistical capabilities.
Notably, in a subsequent announcement in September, London-based data centre provider Virtus pledged to launch a colossal €3 billion mega-campus project in Germany. The project is strategically positioned to cater to the burgeoning demands of hyper-scale, government, and enterprise customers, further underscoring Germany’s growing prominence as an investment destination.
Despite the prevailing economic challenges, Germany’s ability to attract substantial FDI projects underscores its enduring appeal and resilience in the global investment landscape.