Rehau invests €60m in new Hungarian plant

Bavarian plastics component moulder Rehau Group is investing €60m in constructing a new automotive parts plant in Györ, Hungary, designed to meet expanding demand from the car builder Audi.

Work will start in a few months to build Rehau's new unit on a 26,000m² site at the Györ international industrial park, close to the Audi assembly plant in Györ. The injection moulding and painting operation, to employ around 200, is due to start up in 2013.

Since 2005, Rehau has been producing car bumpers for various Audi models manufactured in Györ at its Viechtach moulding plant in Lower Bavaria, Germany.  These are delivered to the Hungarian vehicle assembly line on a just-in-time basis.

But, with increased demand for parts for new Audi model start-ups, Rehau decided to construct its first components plant in Hungary. The processor will use its new local capacity at Györ to produce front and rear bumper systems for the new Audi TT and Q7 models, confirmed the Rehau, Germany-based firm.

"The decision to purchase the plot and build the new plant is part of our international growth strategy", explains Niklas Braun, chairman of Rehau's automotive division executive Board.

From the 2013 Györ start up, an initial labour force of 150 will work on a three-shift system with backup from a further 50 administrative staff.

At the heart of the new production operation will be a modular painting unit with a sustainable CO2 cleaning system developed by Rehau. Similar units have already proved themselves at plants in Viechtach and Port Elizabeth, South Africa, the company said.

Already, Rehau has a Hungarian workforce of around 40, located at its Budapest sales office, which markets mainly products for the construction sector and furniture industry, and a logistics centre in Györ.

The Hungarian auto parts plant will bring to 15 the number of facilities worldwide serving the automotive sector.