German plastic auto part and mouldmaker KRUG Kunststofftechnik has launched car component moulding in Hungary to serve a major customer and to exploit new regional markets.
Its local offshoot KRUG Hungary kft. recently opened the first 800m2 phase of production plant on a new site at Felsőzsolca, close to the Slovakia border. Two injection moulding machines of 500 and 1,000 tonnes are set to turn out auto components next month (Sept) for parts made by major tier one supplier Bosch in Miskolc, Hungary.
The plastics processor, part of family-run KRUG Group headquartered in Breidenbach, Germany, plans to expand the unit with the addition of two more injection lines in 2020/2021 and another two machines installed during 2021, according KRUG Kunststofftechnik.
Its initial Hungarian project will see KRUG operating a total of six injection moulding lines with a 30-strong workforce at the Felsőzsolca site, confirmed the firm’s customer management head Rüdiger Braun.
Future development could see KRUG adding to its plant area with the lease of further production hall space in north eastern Hungary, the company said.
The main motive for KRUG’s plan to mould parts in Felsőzsolca was based on the continuing growth of OEM demand for manufactured parts and the 2017 decision by Bosch to produce vehicle fans and frames in Hungary.
Local component moulding was essential as delivery of parts to Bosch’s plant from KRUG’s two German plants in Breidenbach, in the west of the country and Meerane, south of Leipzig would not be viable. The move reduces transport costs for KRUG considerably.
KRUG Kunststofftechnik, formed in 1994, earns around 80% of its sales income from the automotive sector, is also keen to develop fresh business from its new plant, taking advantage of growing opportunities with the rapid emergence of electric vehicles.
Apart from automotive, the company also moulds technical parts for household fittings such as lighting elements and bins as well as electrical switches and housings. Its 2018 turnover topped €50m and it expects to achieve sales worth €53m this year. Leading KRUG customers include Magna, Mahle and Brose, along with Bosch.
KRUG operates a variety of injection moulding machines from ranging in clamping force from 25 to 1,300 tonnes. Its plants employ technical processes including hybrid material moulding, MuCell technology, stack injection moulding and automation. KRUG Group has a total workforce of 300.