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Elso Elbe to spend €7.3 mln on storage facility, equipment by 2010

German-owned car part maker Elso Elbe Hungária Bt is to open a 1,600 square meter storage facility at the Eger industrial park and has signed a long-term supply contract with ZF Hungária Kft, managing director Hans Gundram Elbe announced.

Construction of the new facility is to cost Elso Elbe Hungária €1.3 million, and the company expects to spend a further €6 million on equipment purchases by 2010. Elso Elbe has concluded a long-term supply contract with ZF Hungária Kft, which also operates at the Eger industrial park, as a result of the new development.
Elso Elbe, which produces drive shafts and other automotive parts, projects annual sales revenue of €23 million this year, a figure which it aims to increase to €30 million in 2010. The company has invested €12 million in developments at its plant in Eger since 1999. The plant currently employs 190 workers and plans to employ 240 in 2010. Elso is already the most important supplier of ZF Hungária, providing the company with 20% of its purchases. This figure will be doubled by 2010 under the long-term agreement between the two companies, according to ZF Hungária managing director Ulrich Diller.
ZF Hungária, which produces transmission systems, plans to increase production from the current 70,000 units to 230,000 over the long term. The company plans to increase the number of people it employs from the current 1,100 to 1,400, projecting sales revenue of €460 million by 2010, as compared to €260 million this year.