Prime Minister Kyriakos Mitsotakis participated in a teleconference between Enterprise Greece and Next.e.GO, an electric vehicle manufacturer, which has signed a Letter of Intent for the production of electric cars in Greece. “We do not envision Greece simply as a country that is competitive when it comes to services. We also want to be competitive when it comes to real cutting-edge manufacturing. And I think that we are taking an important first step in that direction”, the Prime Minister said during the discussion.
Kyriakos Mitsotakis pointed out that “this is not just about building a new car. It is about a different way of envisioning how manufacturing is going to be done in the age of the ‘internet of things”, which will allow for this project to be completed in a much shorter time scale compared to traditional automotive manufacturing plans”. He also stressed the need for the “first ‘made in Greece’ electric vehicles will be produced within the envisioned time framework”.
“Greece is quickly transforming itself, as a country which is open to sophisticated foreign direct investments, such as the one we are contemplating today. We are offering not just strong financial incentives, but also access to a very talented and skilled labour force”, Kyriakos Mitsotakis added.
The investment plan
Enterprise Greece (Greek Company of Investments and External Trade), the competent national authority, under the supervision of the Ministry of Foreign Affairs, for attracting investments in Greece and promoting exports, signed a Letter of Intent with Next.e.GO SE, which The Letter lays the foundation for a strategic investment for the production of electric cars in Greece.
The investment plan, as things stand, anticipates the construction of a Next.e.Go plant in Greece, which will have an initial annual production capacity of up to 30,000 e-cars, as well as the establishment of a Technology and Innovation Campus for research purposes.
The investment is expected to amount to 100 million euros and during the initial phase. It is expected to create 1,000 jobs in the plant, many of which will be filled by specialized workers, while also indirectly creating 5,000 jobs in the wider supply chain and services sector that will support the production unit.
Given that the investment plan includes the production of metal components, the external thermoforming, the final assembly of the vehicles and quality control, the investment is expected to create a strong local network of suppliers, who will cover the needs of the plant, thus further boosting the economy.
This planned investment is “green” and promotes the circular economy, while based on exceptionally low carbon dioxide emissions. At the same time, it clearly shows that the green transformation, which is a central government policy, attracts powerful players from the private sector.
Along with Volkswagen’s investment, which aims at converting the island of Astypalaia into an e-mobility island, this serves as evidence that Greece is building up a brand name regarding the development and application of new technologies that are friendly to the environment. Following the investment announcements by Microsoft, Volkswagen and Pfizer, the advanced interest expressed by Next.e.GO reveals that, despite the pandemic and the economic fallout it has caused globally, the country continues to successfully attract strategic investors, especially in the sectors of research and technology.
At the same time, the investment plan ensures a constant flow of expertise and knowledge, which contributes to the fight against the brain drain phenomenon, given that Next.e.GO’s plan includes the regular training sessions in Aachen, Germany, where the company is based and which is a major research hub.
The teleconference was joined be the Minister of Development and Investments Adonis Georgiadis, the Deputy Minister of Development, in charge of Private Investments and Public – Private Partnerships Nikos Papathanasis, the Deputy Minister for Research and Technology Christos Dimas, the Deputy Minister of Foreign Affairs for Economic Diplomacy and Openness Kostas Fragogiannis, the Secretary General for International Economic Affairs and Chairman of Enterprise Greece Yannis Smyrlis, and by Enterprise Greece CEO Georgios Filiopoulos.
The Prime Minister’s full opening statement
Thank you Minister. It’s a real pleasure to be with you and I am very happy that we have proceeded with signing this Letter of Intent between Enterprise Greece and e-Go to set up a manufacturing plant that will build next-generation electric vehicles, purpose-built for urban mobility.
Since the early 80’s, Greece has not been part of the global manufacturing supply chain regarding the automotive industry. And that is indeed a pity, but we have an opportunity to rectify that now that we move into the next phase of mobility, which is inevitably going to be electromobility. We want to make a very clear case that we want to be part of this ecosystem.
We have a very ambitious plan to roll-out e-mobility services in Greece. As you know we have already signed a partnership agreement with Volkswagen to transform one of our islands into a fully electric mobility island, which will serve -I think- as a wonderful example of the advantages that electric mobility has to offer, especially for islands. And I am so happy that today we are taking the first step in the direction of actually setting up a manufacturing plant in Greece to produce these types of vehicles.
This is an important step for us, as we have made very clear that we don’t envision Greece simply as a country that is competitive when it comes to services. We also want to be competitive when it comes to real cutting-edge manufacturing. And I think that we are taking an important first step in that direction.
I know that there is still a lot of work to be done in terms of finalizing the agreement, identifying the prosperous site. Various regions of Greece will be competing in this type of investment. But I am sure that we will proceed according to plan.
I was fascinated by what the Professor said regarding the innovation of the manufacturing process itself. So, this is not just about building a new car. It is about a different way of envisioning how manufacturing is going to be done in the age of the “internet of things”, which will allow us for this project to be completed in a much shorter time scale compared to traditional automotive manufacturing plans.
I think we have a lot to offer. Greece is quickly transforming itself, as a country which is open to sophisticated foreign direct investments, such as the one we are contemplating today. We are offering not just strong financial incentives but also access to a very talented and skilled labour force.
Hopefully, once this project is completed, we will be talking about 1,000 direct jobs, and maybe 5,000 indirect jobs. Because around these types of investments, usually a whole cluster is being built.
And I am sure that this may be an opportunity for us to make our presence felt in the entire supply chain of electric mobility vehicles.
So this is an important day for us. We are very very happy that we have made progress. Congratulations to Enterprise Greece and the entire team that has worked on this project.
It is up to us, both the Greek government and the company e-Go, to make sure that we stick to the timetable and that we start the construction of the manufacturing site as quickly as possible, so that the first “made in Greece” electric vehicles will be produced within the envisioned time framework.
Again, congratulations to everyone. We will be closely monitoring the progress of the project.
The Prime Minister’s short statement at the end of the teleconference
I don’t have much to add. I just want to tell you how excited we are about proceeding with this project. I want to reiterate the full commitment of our government to support the company throughout the various stages from licensing to building the site, to final production. And to reiterate our commitment to make Greece a case study that can attract these types of cutting edge innovative investments that will also allow us to charter a path towards a greener and more sustainable future.
So again, merry Christmas, happy New Year. I am looking forward to implementing what has been agreed in the Letter of Intent.
“Long-term benefits not only for the environment, but also for local communities”
“Today marks the beginning of a new history, a new beginning for sustainability in one of the cornerstones of Europe,” said Ali Vezvaei, ND Group CEO and member of the Management Board of Next.eGO. “I congratulate you on your vision and leadership, your Excellency Prime Minister and also the Distinguished Ministers, for believing in electromobility but more importantly for effectively leading and driving this process,” he added.
Mr Vezvaei pointed out that Next.e.GO focuses on real sustainability concerning the lifecycle of its products, explaining that “This includes not only the electric car and its innovative manufacturing system, but also the positive impact to the host countries of the investment, rising employment, highlighting technology and widening the ecosystem of supporting businesses. Our cooperation with Greece is an exceptional example of how the partnership between the public and private sector could offer long-term benefits not only for the environment but local communities too”.
From Greece, to the entire world
Professor Hemann, Next.e.GO SE CEO pointed out that “the planning and industrial characteristics of 4.0 production technology of e.GO Life on one hand and the flexible business cooperation models offered on the other hand offer Next.e.GO SE the opportunity to transform urban transport all over Europe and beyond.
He also stressed that “the political choice of the Greek government for carbon-free mobility perfectly corresponds to our mission at Next.e.GO SE. We are determined to make this cooperation work and we are looking forward to reporting significant progress within the next weeks and months”.
“Greece is the perfect for our strategy to globally roll-out our footprint with our concept into the world and the support of the Greek government shows how e.GO’s concept is perceived as the next generation of industrial productions,” Mr Hermann said, adding that he is really proud to have this opportunity to be the CEO of this company and to have “the opportunity to start in Greece as one of our strong locations in the future”.
Deputy Minister for Economic Diplomacy Kostas Fragogiannis said
“Greece dynamically returns to the investment map of major companies. This deal brings a new perspective to our country. The facility will have a productive capacity of up to 30,000 cars annually, with an initial investment of an estimated 100 million euros and it is expected to employ some 1.000 employees.
Through this deal, Entreprise Greece highlights the political value of the reform reinforced by the Economic Diplomacy. We have a lot of work ahead awaiting for the materialization of this deal, as well as the facilitation of more business opportunities, fueling the industry of Industrial production in our company”.
Minister of Development and Investments Adonis Georgiadis said
“Having a car that is reliable, environmentally friendly and easy to be bought from the average consumer could totally change our market. This is something that we care about. This is something that we want to happen in Greece and we are here to help in any way we can. So you can be totally confident that when you start your production here, you will have a friendly government and friendly people to help you”.
Once this investment is launched, you will be surprised with the average skill of our workers, who are very well-educated and they will be very productive in the production of these vehicles -much more than you would expect from a country like Greece. This is something that all foreign investors that have come these months here and have started their production say. They share with us every day that they are surprised with the skills people have in the country. So am totally confident that when all this starts, it will be a big success”.
Nikos Papathanasis, Deputy Minister of Development and Investment said
“Innovation is our number one priority. And we would like to create a friendly environment, as this could contribute to reversing an effect that we had during the financial crisis, the brain drain and to change that into brain gain”.
“We want Greece to become a strategic hub for multinational firms in the wider area of central and Eastern Europe, while we are transforming to a global R&D point of reference”.
Deputy Minister for Research and Technology Christos Dimas stated
“Greece is a very attractive country for innovative Research and Development (R&D) investments”.
“We might not have the traditional automotive cluster within the country, but what we want to do is build around the agreement with e.GO in order to create an innovative automotive cluster”.
Yannis Smyrlis, Secretary-General for International Affairs at the Ministry of Foreign Affairs and Enterprise Greece Chairman mentioned
“This deal highlights not just our country’s potential to attract high-caliber investments, but also the government’s commitment to put together and implement a strategic plan that will generate the right business ecosystem for mobility companies to operate in. The e.GO investment is also expected to provide valuable know-how which will remain in the country and will elevate other Greek companies as well. And of course, it will attract other investors acting in the production and sale of electric vehicles, gradually turning Greece into a reference country for e-mobility”.
