Hungarian automotive industry supplier Pannon Tools Kft has signed a six-year contract worth Ft 1.5 billion to supply Magyar Suzuki Zrt, the Hungarian unit of Japanese carmaker Suzuki, business daily Napi Gazdaság reported on Monday.
Pannon Tools managing director Lajos Tóth confirmed that the contract to supply Suzuki's plant in Esztergom, north of Budapest, had been signed a few days earlier. He said Pannon Tools, which has been a supplier of Magyar Suzuki earlier as well, will now deliver parts that have so far been made in Japan. Suzuki will supply the necessary tools to make the parts and Pannon Tools will spend Ft 550 million to build a 2,000 square meter production hall and outfit it with two new casting machines. The investment, to be completed by the end of 2007, will also require Pannon Tools hire 40 more staff. Tóth said Pannon Tools recently won a bigger order from Toyo Seat as well, which also supplies Magyar Suzuki. Altogether, Pannon Tools supplies the Hungarian units of six Japanese automotive companies. It also signed last year a ten-year contract to supply EMT, which delivers to French automotive company PSA.