Diehl Aerosystems in new €11.9m expansion in Hungary

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The project is expected to create 230

Germany-based aviation components maker Diehl Aerosystems is boosting production of its plane interiors plant again with fresh investment at the site at Nyírbátor in north eastern Hungary.

Following an earlier expansion there in 2015, the company’s offshoot Diehl Aircabin Hungary plans to spend €11.9m to raise the plant capacity, according to the Hungarian government which is backing the project.

The project, which will involve the construction of new buildings and the installation of production machinery, is expected to create 230 new jobs. Nyírbátor plant, which currently employs over 500, already produces cabin components for the new A350 aircraft models being built by the Airbus, the firm’s leading customer.

Diehl Aircabin Hungary is being supported in its latest scheme by a government grant worth €4.46m, according to foreign affairs and trade minister Péter Szijjártó. Announcing the project in June, he stressed that Hungary remains competitive globally in attracting high added value industrial investment projects.

With the number of air travellers growing by 5.4% annually and the resulting need for more airliners, there is greater demand for avionics component suppliers and extra production capacity, said the minister.

“Last year, the performance of Hungary’s aviation industry increased by 11% and exceeded 34 billion (Hungarian) forints [€110m], and has increased a further 6% during the first four months of this year. There are 16,000 people currently working in the sector, 18% more than last year,” Szijjártó stated.

Diehl Aircabin Hungary, whose plant was the family run group’s first production unit outside Germany when it was launched six years ago, makes a range of aircraft interior sections including carbon fibre and  glass fibre based air ventilation systems.

Diehl Aerosystems is part of the Nuremberg-based industrial group Diehl Stiftung & Co. which supplies a range of products from metal/plastic compound systems, measuring equipment and controls to civil and military aerospace equipment and defence missiles.

In 2016, the Hungarian offshoot recorded sales turnover of €22.4m, up from €16.2m the previous year, posting a post tax profit of nearly €700,000.

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