Swedish home appliances giant Electrolux is spending Ft 3.5 billion to boost output at its plants in Hungary, János Takács, who heads Electrolux’s units in the region, said at a press conference on Wednesday.
As a result of the investment, Electrolux’s plant in Jászberény, near Budapest, will turn out an annual 370,000 more products and its plant in Nyiregyháza (northeast Hungary) will produce 80,000 more refrigerators from 2009, Takács said. The company will hire 200 more staff as a result, he added.
Electrolux started moving some production from its refrigerator plants in Italy to Hungary in May. Electrolux is spending a combined Ft 6.5 billion on investments in Hungary this year. Next year it plans to invest a similar amount. Electrolux’s plant in Jászberény currently turns out an annual 1.3 million refrigerators and 560,000 freezers. The plant in Nyiregyháza makes 900,000 refrigerators a year.
From 2009, the Jászberény plant will take over production of an annual 250,000 built-in products, for sale mainly in Western Europe. It will also start making twelve new product families. By the H2 of 2009 , the plant will operate at full capacity.
Electrolux’s Hungarian unit had revenue of Ft 201.1 billion in 2007, 11% more than a year earlier. The unit exports about three-fourths of its products to Western Europe and the rest to Eastern Europe. The unit employs about 4,800 people. Electrolux invested Ft 75 billion in Hungary between 1991 and 2007.