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Audi expansion generates HUF 50bn of orders for Hungarian building sector

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German carmaker Audi’s Hungarian unit has so far signed more than HUF 50bn of orders with Hungarian building companies on the construction of a big addition at its plant in Gyor (NW Hungary), Audi’s managing director for financial affairs in Hungary Johannes Roschek told journalists on Tuesday.

The unit has so far signed contracts worth €200m for the €900m capacity expansion, and the majority were with Hungarian companies, Mr Roschek said.

About 70 Hungarian companies supply the unit in the area of engines and parts, but the start of production at the new capacity from 2013 will draw foreign suppliers to Hungary too, he said. Audi is in talks with the Hungarian government and the local council of Gyor on establishing a suppliers park, but a decision on a location has still not been taken, he added.

The revenue and profit of the unit this year will be announced by the parent company in March, but it is certain that this year was better than last, Mr Roschek said. Profit is expected to be similar to last year’s, he added.

Audi Hungaria had revenue of €4.77bn in 2010.

Audi expects the number of vehicles it assembles at the plant in Gyor this year to exceed the 38,500 in 2010. It sees the number of engines produced at the plant reaching almost 1.9m this year. The output includes 14 new engine families.

About 900 new hires have been made at the unit this year and headcount is expected to reach 7,400 by year-end.

The unit will start serial production of 20 new engine types next year, said managing director for production Achim Heinfling, adding that unit output was expected to rise.

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