ContiTech Expands Fuel Lines Production Capacity in Hungary

VÁC, HUNGARY – April12, 2013: ContiTech Fluid Automotive Hungária, has opened a new fuel line production hall at its Vác site. This has the Fuel Supply & Exhaust Gas Management segment expanding its current 1,100 m2 production hall to 3,300 m2. "By this summer, Vác will be the production center for all fuel lines destined for the European market," says segment head Petra Beckmann. ContiTech has invested several million euros in the requisite production lines and laboratory facilities.

Tapped into new Markets

The investments form part of a €5 million program, which has already seen construction of a new warehouse in Vác and commissioning of a highly automated machining center for steel tubes for fuel lines. This expansion of capacity ups the number of employees in Vác by around 10% to 671 employees. "With the expansion of our product range, we have tapped into new markets," says Mihály Nagy, managing director of ContiTech Fluid Automotive Hungária, explaining the investments.

Strategic collaboration

On the occasion of the opening ceremony, Continental AG and the Hungarian government forged an even stronger strategic collaboration with regard to product innovations, training, and supplier development. Among other things, Continental has declared itself willing to give Hungarian training and research facilities a greater role to play in product development. It has also agreed to create new jobs and to provide the new employees the kind of training that will improve their chances on the labor market. Continental also intends to increase its use of Hungarian suppliers.

Biannual meetings under the direction of the Hungarian Ministry for National Economy are a central element of the collaboration. At these meetings, the contracting parties will discuss forthcoming projects and seek ways of supporting each other. The contract was signed by Mihály Varga, the Hungarian Minister of National Economy, Heinz-Gerhard Wente, member of the Continental Executive Board, and Mihály Nagy.

"The relationship between our company and the Hungarian government developed very positively in the past," said Wente, commenting on the agreement. "This contract supports our plans for further growth and strengthens our continued involvement in the Hungarian economy."

On a growth curve in Hungary

ContiTech Fluid Automotive is on a growth curve in Hungary. Last year a new building was already completed for product development at the site of headquarters in Makó. At this location, tubing for heating and cooling systems and the tools for manufacturing them will be designed. In addition, investments were made in the expansion of production capacities and series production of plastic products was initiated.

ContiTech Fluid Automotive is supported by an equally new compounding facility in Nyíregyháza, Hungary, which supplies primary materials to hose production in Makó and ContiTech air spring production in Nyíregyháza. At the site in Szeged, Hungary, ContiTech also produces industrial lines, lines for oil and gas extraction, and conveyor belt systems.