FAG invests EUR 38 million in Hungary
Shaeffler group member and rolling bearing manufacturer FAG will carry out a HUF 12 billion (EUR 38 million) investment in Debrecen, Hungary, creating 72 jobs as a result, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Friday.
Péter Szijjáró said the government is supporting the project with a HUF 772 million (EUR 2.5 million) subsidy. The investment project involves developments in logistics, new machinery and an increase in production capacity.
Thanks to the investment, the current annual production capacity of 20 million rolling-element bearings will increase to 30 million. Plans of a third production site is currently under negotiations between the group and the Hungarian government. Once an agreement is reached, it could result in hundreds of new jobs in Hungary.
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The Minister of Foreign Affairs and Trade said that the Hungarian Investment Promotion Agency (HIPA) is currently in talks regarding 109 large-scale investment projects with potential investors. Half of these companies already have a presence in Hungary.
"It shows that there is an unbroken trust towards Hungary in the international economic life," said Péter Szijjártó.
As a Debrecen-based subsidiary of the Schaeffler group, FAG Magyarország Ipar Kft. primarily produces bearings for automotive applications.
In recent years, the company, employer of 1,400, has become a European centre for the production of tapered roller bearings under 120 mm. FAG Magyarország supplies OEMs such as VW, Audi, Opel and luxury brands such as Maybach.
Shaeffler group-member LuK manufactures 26,000 clutch systems and disk at its Szombathely-based assembly plant.
The company, established in 1997, has manufactured over 75 million clutch disks and 25 million double-mass flywheels. LuK Savaria is a supplier of a number of OEMs, including Audi VW, BMW, Opel, Ford, Renault, Peugeot, Fiat, Toyota, Mitsubishi, Hyundai, Mazda and Nissan.
