Mercedes-Benz factory in Kecskemét | Dávid Harangozó

Daimler to double capacity in Hungary

August 21, 2012

The Hungary-based Mercedes-Benz plant of German carmaker Daimler plans to double its current 150,000-unit capacity. The expansion of the Kecskemét-based Mercedes plant, absorbing HUF tens of billions, may start in 2013 to boost the facility’s capacity to 300,000 units per year from the current 150,000, the local business daily Napi Gazdaság has reported.

The company has already started selecting consultancy, architectural and law firms that would help orchestrate the expansion. "Yes, it's true we can expand the production line, but no decision has been taken on this matter," a company spokesperson told the Reuters news agency. Hungary's Economy Ministry said any further expansion plans by car manufacturers would be welcome but declined to comment further.
Mercedes-Benz Manufacturing Hungary Ltd. has so far spent nearly HUF 150 billion (some EUR 500 million) on acquiring the plot of the new plant and setting up the factory. It received HUF 22 billion (over EUR 70 million) state subsidy for the project.
The company is expected to apply for further state funds for the expansion project. The plant is to be equipped with the new manufacturing line in 2014 and production may start in 2015. With this expansion, Mercedes plans to add several hundred employees to its headcount.


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