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Knorr-Bremse to build HUF 4.5bn plant in Kecskemét

German-owned Knorr-Bremse Magyarország wants to build a HUF 4.5 billion plant at a greenfield site next to its existing factory in Kecskemét, near Budapest, Knorr-Bremese Fékrendszerek managing director István Lepsényi said on Thursday.

Knorr-Bremse wants to build the plant with state and European Union funding, Lepsényi said. Construction is to start at the beginning of 2011 and finish by the end of the year, he added.

The plant would create 110 jobs.

Knorr-Bremse has bought an 8.6-hectare plot on which to build the plant from the local council.

The Hungarian unit, which makes brake systems for trucks and rail vehicles, is expected to generate revenue of HUF 30 billion in 2010, almost as much as turnover before the crisis, Lepsényi said.

Mayor Gábor Zombor said he expected Knorr-Bremse's suppliers to set up bases in the city too, just as a big Daimler plant under construction draws suppliers. Kecskemét has 60 hectares available for prospective investors after it bought plots near the city's industrial zone in 2007. (MTI-Econews)