Are you sure?

Stadler Group CEO says company considering expansion of unit in central Hungary

Swiss rolling-stock maker Stadler Rail Group is considering expansion of the company's production base in central Hungary, company CEO Peter Spuhler told MTI. Spuhler was in Budapest for talks on Friday.

Spuhler said that Stadler's board will decide by this summer whether to expand the group's aluminum train-body plant in Szolnok (C Hungary).

Potential new Hungarian orders for Stadler trains in Hungary would provide encouragement for the group to expand the company unit in Szolnok, though does not represent a prerequisite for doing so.

Under the plans they would bring the assembly of FLIRT multiple-unit trains to the Szolnok base in the first phase of the expansion, and they do not rule out the manufacturing of new KISS trains in Hungary in the future and the establishment of a mechanical-engineering technical-development unit at the site is among the options to be considered.

Stadler would spend CHF 10 million on the first phase of the planned Szolnok expansion.

Preliminary data indicate that Stadler maintenance unit Stadler Magyarorszag Vasuti Karbantarto in Pusztaszabolcs (C Hungary) posted operating profit HUF 300 million and net profit of HUF 120 million in 2010, while Stadler Vasúti Járműgyartó in Szolnok generated revenue of HUF 5 billion and broke even last year.

Stadler has invested HUF 2.3 billion in the Pusztaszabolcs maintenance unit and it has invested HUF 6.7 billion in the Szolnok plant.

Hungarian state-owned railway MÁV signed a contract for the purchase of 30+30 FLIRTS from Stadler in 2006.