ContiTech switches hose and pipe production to Hungary

ERJ staff report (PRW)

Hannover, Germany -- Continental is switching vehicle hose and pipe production from Spain to two existing plants at Vác and Makó Hungary. The €500m project will expand the product range offered to the automotive sector in Central Europe. But, because of the impact of the world economic recession, earlier plans to create 100 Hungarian jobs after the move have now been dropped.

There is spare capacity in Hungary as a result of the global crisis and orders at the Makó facility have declined by 40% over the last two quarters, according to the country's Portfolio online news service. That unit currently employs 600 while Vac plant employs 300.

Machinery shipped from the Continental Industrias del Caucho site at Coslada near Madrid, one of two Continental plants in Spain, is already being installed at the Hungarian units. An extruding line, assembly equipment and three vulcanising units are set to begin operating at the new sites from September 2009.

The plants, operated by group offshoot ContiTech Fluid Automotive Hungaria will manufacture plastic and rubber hoses and pipe systems for the BMW Group Mini in Makó and for Volvo and Scania trucks at Vác.

ContiTech, based in Hanover, Germany, also runs 14 fluid technology product plants in Germany, with others in Belgium, France, Britain, Sweden, Romania and Spain. Its fluid technology business has 29 production sites across three continents.

From PRW.com (A Crain publication)