Otto Fuchs to double production with HUF 12.8 bln investment
German automotive supplier Otto Fuchs will double production capacity at its plant in Tatabánya with a HUF 12.8 billion investment, Minister of Foreign Affairs and Trade Péter Szijjártó said yesterday, according to Hungarian news agency MTI.
(Photo: Official website of the company)
The company will receive a HUF 1.2 bln grant from the Hungarian government for the project.
Aluminium wheel hub production at the plant in Tatabánya could reach two million pieces by the end of the year, up from one million pieces in 2014, Szijjártó said.
The plant currently employs 380 workers and the investment could create 180 new jobs.
The Hungarian unit of Otto Fuchs supplies wheel hubs to Audi, BMW and Mercedes.
Richard Hussmanns, the CFO of Otto Fuchs KG said that with the doubling of production capacity they are expecting annual revenue to climb to €70 million at the Hungarian unit.
According to public records revenue at the unit increased to €43.8 mln in 2014 from €34.78 mln in 2013. Net income grew from €472,000 to €5.17 mln during the same period.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.