Denso Capacity Expansion in Székesfehérvár

Denso Manufacturing Hungary Ltd. installs three new production lines at its Székesfehérvár site and launches a large-scale reskilling program to adapt to electrification. The investment scheduled to be completed by April 2024 is worth EUR 64.4 million (over 14% of which is covered by Hungarian taxpayers through state subsidy) with up to 55 new jobs expected to be created.

Established over 70 years ago, Denso is one of the world's top automotive suppliers. The Japanese company is specialized, among others, in power transmission, electronics and safety systems, and has 211 representations in 35 countries.

The Hungarian subsidiary, Denso Manufacturing Hungary Ltd. has been operating since 1997, and it now has announced to implement an ambitious investment of EUR 64.4 million. Under the project three new production lines will be set up to manufacture inverters for electric and plug-in hybrid electric vehicles (EVs and PHEVs).

As the Hungarian Investment Promotion Agency reports, the development is set to equip the company with the capability to adapt its operation to the rapidly changing market demand driven by electrification. The measure will therefore allow the Hungarian subsidiary to continue to play a key role in serving its buyers and functioning as a stable manufacturing hub within the Denso Group. A diversified product portfolio that will result from the investment can also pave the way for further future developments.

In parallel to the capacity expansion, the company also takes measures in terms of its staff. Up to 55 workplaces will be created to hire new talent, and 135 of those employees that are currently on payroll can look forward to comprehensive reskilling to allow them to master the skills needed for complying with the requirements triggered by electrification. As a result, the planned substantial knowledge transfer is set to take manufacturing to the next level at Denso Manufacturing Hungary.