Hungary's Strauss Metal, which makes safes, weapons cases and other metal boxes, on Wednesday said it is building a HUF 225 mln production plan at its base in Pécs (SW Hungary).
Strauss Metal will spend HUF 195 million to build a 1,700-sqm production hall and HUF 30 million to outfit it with machinery, said owner János Strausz.
The company will make twelve new hires to man the new capacity, he added. Strauss Metal currently has 30 employees.
A grant from the state and the European Union is covering almost HUF 96 million of the investment. The new production hall is to be completed by November 2012.
Strauss Metal had profit of HUF 10 million on revenue of HUF 400 million in 2010. Revenue was up from HUF 326 million in 2009, when the company had a small profit of HUF 1.5 million.
Domestic sales generate more than half of revenue, but exports to Romania, Slovakia, the Netherlands and other countries account for 40% of sales.
Strauss Metal will open a shop in Budapest this year and it wants to establish sales points in other capital cities in the region too, Strausz said.