Chinese Battery Parts Firm Faces Ohio Tax Break Scrutiny and Hungarian Water Pollution Allegations
SEMCORP Manufacturing USA, a Chinese-owned battery separator maker, received generous Ohio tax incentives while employing Mandarin-speaking workers, and its Hungarian plant has been accused of massive aluminum contamination of groundwater.
In Sidney, Ohio, SEMCORP Manufacturing USA Inc., a Chinese battery separator producer, secured a 15-year, 75% property-tax break and a job-creation credit after pledging 1,199 full-time positions, but on-site evidence shows many staff are Mandarin-speaking Chinese nationals on L-1 visas housed in motels and shuttled at odd hours. The Ohio Tax Credit Authority later cancelled the incentive after the firm reduced its job promise to 300 and failed to meet its commitments.
Across the Atlantic, SEMCORP’s first overseas plant in Debrecen, Hungary, was cited for releasing aluminum into groundwater at concentrations 13,000 times the legal limit, leading to a suspension of its production license. Company spokesperson James Shih disputed the link between the pollutants and the manufacturing process and said the firm would partner with an American company to comply with regulations, though no schedule was given.
Hungarian officials, including Debrecen Mayor László Papp, have demanded a full investigation and possible revocation of the plant’s environmental permit. The case highlights concerns about U.S. tax subsidies flowing to Chinese-controlled firms and the environmental risks of rapid EV-battery expansion.
Why it matters
Tax incentives may be funding foreign firms that provide few local jobs and cause environmental harm.
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