Schaeffler Invests HUF 5 Billion in Expanding Szombathely Plant

Schaeffler Savaria Ltd invests HUF 5 billion in expanding its Szombathely, Hungary site, adding a logistics hall and office building. The company plans to increase electromobility component production, creating new jobs and solidifying Hungary as a hub for foreign investment.

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Schaeffler Invests HUF 5 Billion in Expanding Szombathely Plant

Schaeffler Invests HUF 5 Billion in Expanding Szombathely Plant

Schaeffler Savaria Ltd, a leading manufacturer of automotive components, has invested over HUF 5 billion (approximately EUR 12.9 million) in expanding its site in Szombathely, Hungary. The investment includes the construction of a new 6,200 square meter logistics hall and a 2,200 square meter office building featuring meeting rooms, changing rooms, and a conference center suitable for hosting international events.

Why this matters: This investment is significant as it demonstrates the growing importance of electromobility component production in the automotive industry, which is crucial for reducing carbon emissions and meeting climate change goals. The expansion of Schaeffler'splant in Hungary also highlights the country's attractiveness as a hub for foreign investment and its potential to drive economic growth in the region.

The new conference center has already hosted the Schaeffler European Works Council meeting, which brought together 60 participants from 15 countries. Tibor Szigeti, CEO of Schaeffler Savaria Ltd, stated, "We already operate two plants and two research and development centers, and have now inaugurated a strategically important logistics center and office building."

The expansion is part of Schaeffler's efforts to increase its electromobility component production. In 2021, the company completed a greenfield investment worth over HUF 23.5 billion, with HUF 5 billion in support from the Hungarian government, to build a new 15,000-square-meter manufacturing hall in Szombathely. This development created 200 new jobs focused on engineering skills.

Schaeffler has been operating in Szombathely since 1997 and has continuously expanded its site. The company now operates two factories in Hungary, located in Szombathely and Debrecen, with a sales center in Budapest. Schaeffler employs nearly 5,000 workers in Hungary, with over 3,000 in Szombathely alone, making it the largest employer in the region.

According to publicly available data, Schaeffler Savaria Ltd achieved a net turnover of HUF 333.944 billion in 2022, compared to HUF 274.715 billion in the previous year. The international Schaeffler Group, a German family-owned company, operates as an industrial and automotive supplier in over 50 countries, with a revenue of EUR 16.3 billion in 2022, marking a 5.8% increase from the previous year.

Looking ahead, Schaeffler Savaria announced a HUF 5.2 billion (EUR 13.5 million) research and development project in December 2023 focused on hybrid and fully electric vehicle components at its Szombathely plant. The Hungarian state will provide HUF 1.3 billion (EUR 3.4 million) in funding to create 100 new jobs based on engineering skills, further solidifying Schaeffler's commitment to innovation and growth in Hungary.

Key Takeaways

  • Schaeffler invests HUF 5 billion (EUR 12.9 million) in expanding its Szombathely, Hungary site.
  • New logistics hall and office building feature meeting rooms, changing rooms, and a conference center.
  • Expansion supports electromobility component production, crucial for reducing carbon emissions.
  • Schaeffler employs nearly 5,000 workers in Hungary, with over 3,000 in Szombathely.
  • New HUF 5.2 billion R&D project focuses on hybrid and fully electric vehicle components.