Coca-Cola HBC Hungary Makes Biggest Investment in 16 Years in Dunaharaszti
Coca-Cola HBC Hungary, which claims to be the largest beverage company in the country, says it is investing around EUR 23 million (about HUF 8.7 billion) to upgrade its production and logistics capacities. The firm is expanding its headquarters at Dunaharaszti (just 21 km south of central Budapest by road) with a new production hall that will house a high-performance production line by the end of the year.
The company, part of the Coca-Cola HBC Group, says it is also improving loading and warehousing efficiency. The investments demonstrate the Hungarian subsidiary’s commitment to the local market and mark another significant step towards building the largest Central European production hub “of the Coca-Cola System” in Dunaharaszti, the business says.
“We are proud to contribute to the growth of the Hungarian economy with a major new investment. We are committed to the domestic market and supporting our business operations in all areas of the value chain through continuous improvements. We have made several investments in recent years that bring us closer to building a modern production hub in Dunaharaszti that meets the requirements of the 21st century,” says László Békefi, general manager of Coca-Cola HBC Hungary.
“To support this goal, we invested more than HUF 1.5 billion in our supply chain last year: we were the first in the Coca-Cola HBC Group to introduce artificial intelligence-driven robot technology into our warehousing processes, our colleagues use smart glasses during the picking process to work more efficiently and accurately, and thanks to a sustainable packaging technology innovation, we have replaced the secondary packaging of our aluminum multipacks with 100% recyclable cardboard packaging, reducing our plastic consumption by 230 tons per year,” he notes.
The firm has been developing its production operations in Hungary since 1996. The company has thus far invested HUF 125 bln in the country over the past 27 years, and today has two production plants and eight logistics distribution centers (including what it says is Hungary’s largest food industry warehouse) that employ 1,000 people. Nearly two-thirds of the materials used in production come from domestic suppliers. The entire Hungarian market and most products for 17 export countries are supplied from here.
Coca-Cola HBC Hungary says the capacity expansion investment is the second most significant development in Dunaharaszti following the installation of a second non-carbonated production line in 2007, worth EUR 27 mln (about HUF 10.2 bln) at the time.
Planning of the investment started in 2020, with the installation of the new production line and the construction of a new production hall, as well as the completion of logistics and other infrastructure improvements to support the increased volume, approved in 2022. The construction works started in February, with the handover is expected in November.
This article was first published in the Budapest Business Journal print issue of June 2, 2023.
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