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Takata to expand in Hungary despite parent bankruptcy

Pharma

Despite its parent declaring bankruptcy in Japan and the United States, automotive firm Takata has promised to continue its capacity expansion in Hungary as planned, according to Hungarian news agency MTI.

Takata Safety Systems Hungary says it is committed to continuing its capacity expansion at its airbag plant in Hungary. In the following months, the automotive industry supplier expects to add 200 more jobs to the current staff of 1,400 at its plant in Miskolc.

The parent company, Japanese car parts manufacturer Takata Corporation, which is at the center of the largest vehicle recall in history as a result of a string of deaths due to faulty airbags, has filed for bankruptcy protection in the U.S. and Japan.

China-owned rival Key Safety Systems is reported to have offered USD 1.6 bln for Takata, and to take over production of seat belts, airbags and other automotive safety parts.

Takata Safety Systems is a strategic partner of the Hungarian government, which supported the opening of Takataʼs factory in Miskolc (an investment of EUR 68 million). Besides other things, the government agreed at the time to support the firmʼs investments in Hungary and promote exports of its products manufactured here.

No Insolvency in EMEA Region

Takata Group is legally divided into four independent regions: Japan, Asia, Americas and EMEA, according to a press statement sent to the Budapest Business Journal. "While the costs and liabilities related to airbag inflator recalls have mainly affected the businesses in Japan and the U.S., the other businesses continued to produce healthy profits and cash flows," Georg Lamerz, spokesperson to the press for Takata in Europe, told the BBJ.

"In particular, Takata EMEA (Europe, Middle East and Africa) continues to have a solid financial basis and stands on a strong foundation with good and supporting customer relationships. Takata EMEA is operating fully independent and its business does not depend on financial support from other Takata regions. Takata’s affiliates in EMEA, their business partners and employees should, therefore, not be directly negatively affected by the proceedings in the U.S. and Japan, or the proposed sale. It is not intended to initiate insolvency proceedings in Europe," the press statement added.

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