The development was triggered by a steady growth in orders, mainly by a €2 million deal with General Motors (GM) and an option contract of the same value. The first stage of the capacity expansion is a new, 1,000 square meter factory for manufacturing and a painting factory – totaling at Ft 110 million -, and Femat GmbH decided to spend Ft 270 million (€1 million, $1.5 million) on various technical and technological investments, which are to be realized by February 2008. The parent had given up production activities in Austria, and the whole logistics division had been deployed to Hungary, which also made the current investments necessary. As a third reason for expansion, Takács mentioned a decline in cooperation with suppliers, who tend to fail in meeting requirements. Femat’s sales revenue this year is expected to surpass that of 2006 by Ft 1 billion. (Napi Gazdaság)