McDonald's supplier OSI Food Solutions Hungary will spend HUF 5.5 billion to raise its annual poultry processing capacity from 7,000 to 22,000 tons, managing director György Erdélyi said.
McDonald's buys about 90% of OSI Food Solutions Hungary's output. The company supplies chicken to McDonald's restaurants in 16 countries.
OSI Food Solutions Hungary will install a new production line and build a cold storage unit in the expansion, Erdélyi said. It will make 30-60 new hires, raising headcount from 95, he added.
As a result of the expansion, products earlier made by other OSI plants in Europe will be brought to OSI Food Solutions Hungary's plant in Bábolna (NW Hungary).
OSI Food Solutions Hungary had revenue of HUF 6.5 billion in 2010.
The company noted that McDonald's has bought HUF 88 billion of products from Hungarian suppliers over the past 15 years.