PMP, a member of India's Ashok Piramal Group, will close down its Veszprem (W Hungary)-based plant after three years to move production of windscreen wipers to Prague, the business daily Napi Gazdaság said on Friday.
Bakony Windscreen Wiper Systems Kft is to lay off around 70 workers, the paper wrote.
The company was established in January 2006 by the car parts manufacturer Bakony Művek Autóalkatrész-gyártó, already struggling with major financing difficulties at the time and later liquidated. Initially employing 150 workers, the company had average annual net sales of HUF 1 billion, primarily filling orders from Suzuki, but it soon turned out to be a loss-making business.
One year later the company was sold to PMP, which also makes generators, automotive starters and oil sensors. PMP also acquired a company called Pal in the Czech Republic, Napi said, quoting regional Veszprémi Napló.
As the company could not find an appropriate industrial area for its planned investment and it can no longer supply windscreen wiper systems for Suzuki's new models, it has decided to move production from Hungary to the Czech Republic. (MTI-ECONEWS)