The new Košice factory of the Chinese Shenzhen Uniconn

Shenzhen Uniconn,which also cooperates with the world's largest manufacturer of batteries for electric vehicles, CATL, is building a production facility in Košice.

The new factory received support from the fourth Smer government,although significantly less than it expected.

Robert Fico's fourth government has failed to announce the arrival of new major investors during its frequent trips to the regions. Foreign companies' interest in the country has significantly declined in recent years. Not only because of the slowdown in the global economy, but also because the cost of labor in Slovakia is growing rapidly, and Western companies are also becoming increasingly frustrated by the current government's pro-Russian orientation.

At several off-site meetings, the government did not announce any new investors, and it was also a success when it was able to allocate an investment incentive at least for the expansion of an existing company. However, this week's government meeting in Borša,eastern Slovakia, was an exception.

The government boasted of incentives for two smaller expansions of existing factories - the Slovak SR sheet metal processing plant 1. Deliace centrum from Strážské and for theCanadian automotive subcontractor Magna in Kechnec.

The third incentive was awarded to a new investor for its production in Košice. This is the Chinese company Shenzhen Uniconn Technology, which is an important subcontractor of components for the new Košice production of electric cars by the Volvo car manufacturer. It is scheduled to start up at the turn of 2026 and 2027.

The arrival of Shenzhen Uniconn is not so much the result of the economic diplomacy of the Slovak government, but mainly the fact that this company has long been closely cooperating with Volvo Gheely's Chinese parent company.

The planned battery plant for the Chinese company Gotion in Šurany is not the sole success of the current government. Although this cabinet granted it investment incentives last summer, this project was discussed by previous governments of other parties.

More about the new investment

Shenzhen Uniconn will produce components for assembling electric vehicle batteries in Košice. Specifically, it will be battery cell contact systems for battery modules.

These are used to connect battery cells and their other function is to monitor battery temperature. This manufacturer's contact systems also insulate battery cells and their aluminum covers, thus protecting the battery from short circuits.

The Chinese plan to produce over a million such contact systems annually in Košice. They will supply the nearby Volvo plant, as well as other car manufacturers. The government The material on the approval of the investment incentive states that over 60 percent of the production of the new Košice factory will be exported to other EU countries.

The company's first ever foreign production plant is being built in Slovakia. The investor is investing 23.5 million euros here, for which he has now received a 3.5 million tax break from the government.

The Chinese originally expected a 12 million euro break from Slovakia, wanting to have half of the investment paid for.

The Chinese have had a factory to start production in the CT Park Košice II industrial park since last year and have been hiring employees for some time. They started the investment even before receiving government support. They want to employ approximately 130 people in Košice by the end of next year.

The other two companies supported by the government this week will employ only 30 new people in total. Magna will also expand its production of components for electric motors in Kechnec.

When announcing the new Chinese investor, the government emphasized that he would offer a significantly above-average salary of 2,325 euros per month in eastern Slovakia.The average in the district in 2023 was 1,669 euros.

The Chinese are implementing the Slovak investment through the newly established subsidiary Uniconn Technology Slovakia.

More about the Chinese investor

Shenzhen Uniconn Technology was founded in 1991. In addition to battery cell contact systems, it also produces flexible printed circuit boards, high-voltage and low-voltage cable harnesses.

In addition to batteries for electric vehicles, its components are also used in industrial equipment, consumer electronics, and energy storage.

Shenzhen Uniconn has more than five thousand employees, has seven production plants and a research and development center in China, and has a sales office in Germany center.

Since 2014, the company has also been a supplier of components to the world's largest manufacturer of electric vehicle batteries, CATL, and since 2017, it has also been a supplier to Geely.