Kirchoff plans big expansion, projects doubling revenue
Thursday, September 21, 2006, 17:39
German auto industry supplier Kirchoff is expanding its plant in the Esztergom industrial park, north of Budapest, building a new welding unit and die-cast unit, business daily Napi Gazdaság reported.
As a result of the expansion, Kirchoff Hungária Kft expects its annual revenue to nearly double by 2008 from a targeted Ft 4.6 billion in 2006. The expansion was necessary to meet growing orders from Magyar Suzuki Zrt, which shares the industrial park.
In addition to the welding and die-cast facilities, which will be 3,000 square meters apiece, Kirchoff will build a 450-square-meter office building at the site. When completed, Kirchoff will have 10,000 square meters of production space in Esztergom.
Kirchoff Hungaria had revenue of Ft 1.3 billion in 2005, when it employed 20 workers. This year, it has employed 66 people, and by 2008 it expects to have 185 on payroll. The company, established in 2004, supplies Opel, Scania, Ford, DAF, DaimlerChrysler, Audi and Volkswagen in addition to Suzuki.