The construction of BYD’s massive new electric vehicle (EV) plant in Szeged, Hungary, has been marred by a second tragic fatality, raising serious concerns about safety protocols and labor practices at the ambitious project. This latest incident, which occurred on June 18, follows a previous death at the site in February.
The Hungarian National Ambulance Service confirmed to CNBC that paramedics attempted resuscitation on the worker, but their efforts were unsuccessful. The gravity of the situation was underscored by the dispatch of multiple emergency units, including a rescue helicopter, to the scene. Local media reports indicate the worker was struck by a lorry. Authorities have launched an investigation into the circumstances surrounding the accident.
This string of unfortunate events casts a shadow over BYD’s significant investment in Hungary, a move seen as a strategic expansion into the European market. The Shenzhen-based EV giant is establishing one of its largest overseas manufacturing hubs in Szeged, a facility poised to become a cornerstone of its European production strategy.
The latest fatality comes on the heels of BYD executive vice president Stella Li’s recent statements to CNBC, where she vehemently denied allegations of labor abuse at the construction site and welcomed labor inspectors. While BYD has not yet responded to requests for comment on the most recent death, the recurring safety incidents will undoubtedly put the company under increased scrutiny.
Further compounding these concerns, AIM Construction Hungary Ltd., a subsidiary of the construction company involved in the project, has been fined 34,500,000 forints (approximately $110,350) for occupational security violations by the Csongrád-Csanád County Government Office. This penalty follows a previous labor scandal linked to BYD’s EV factory in Brazil in 2024. Beyond the fine, AIM Construction also received warnings for a range of other non-compliance issues, including late employee registration, breaches of working time regulations, and deficiencies in employment contracts.
The scrutiny doesn’t end with AIM Construction. Two other firms, LÉVAI-SECURITY Ltd. and Plusz Kéz Ltd., were also found to be non-compliant. LÉVAI-SECURITY Ltd. was penalized for employing workers without proper registration, while Plusz Kéz Ltd. faced warnings regarding labor supervision issues.
These developments echo concerns previously raised by watchdog organizations. Earlier this year, New York-based China Labor Watch published a report alleging forced labor at the BYD Szeged construction site, citing instances of seven-day work weeks and withheld wages.
BYD began moving production machinery into the Szeged facility in January, with full production slated to commence in the third quarter of 2026. The scale of this investment and its potential to reshape the European EV landscape are undeniable. However, these tragic incidents and labor practice allegations cast a significant pall over the project’s rollout, highlighting the critical importance of robust safety management and ethical labor standards in large-scale international construction projects, particularly in the rapidly expanding electric vehicle sector. The company’s ability to address these concerns transparently and effectively will be crucial for maintaining its reputation and navigating its ambitious European expansion.
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