Blow moulding and packaging machinery supplier Krones AG has begun to build a new manufacturing plant at Debrecen in eastern Hungary.
Neutraubling, Germany-based Krones launched the project at a formal groundbreaking ceremony on site in Hungary’s second biggest city earlier this month.
With a workforce of 500, the new facility is reportedly due to start production in the second half of next year - later than originally scheduled. It will manufacture machinery components and assemble line parts.
Between this year and 2020, Krones plans to invest up to €49m on the Hungarian project, including the cost of the site, the unit construction and the required production machinery and plant equipment.
The firm received a Hungarian government grant of almost €17m towards its Debrecen development project.
Krones’s plant is the first industrial unit to be constructed Debrecen’s newly opened Industrial Park South located adjacent to the city’s international airport.
The company selected Debrecen for its first manufacturing site outside Germany mainly because of the city’s good logistical links, relevant local infrastructure and readily available, qualified specialist labour. Krones said it also plans to collaborate with the city’s university.
Krones, a specialist in PET container beverage/liquid food filling, stretch blow moulding and packaging machinery, suggested it is also considering relocating certain engineering planning processes to Hungary.
The German supplier group has 90 subsidiaries and plants around the world employing 15,000 globally.