Linamar expands production facility in Hungary

Canada-based diversified global manufacturing company Linamar has set up a new factory facility with a HUF five billion (EUR 16 mn) investment in Orosháza, SE Hungary, 200 kilometers southeast of Budapest. The company, which has several units in the southern region of the Great Plain, received HUF 1.6 billion (EUR 5.16 m) non-refundable EU funding for the project which creates 150 jobs, Minister for National Economy Mihály Varga announced.

Csaba Havasi, the Vice President of Operations at Linamar Manufacturing Group Europe pointed out that this facility development provides Linamar with the possibility of realizing over EUR 250 million in further sales.

In his speech, Mihály Varga labelled Canada as an important economic partner for Hungary. He said Hungary is receiving the biggest volume of Canadian capital in the central and eastern European region.

Highlighting the role of Linamar Ltd. in economic recovery in the region, the minister said the company gives job to more than 2,000 employees and - via its nearly 1,500 local suppliers - to additional thousands of people in Hungary.

The company also actively takes part in the development of dual education/training, by which it ensures appropriate labour not only for itself but also for the development of the government’s new training system.

As regards the 2014-2020 programming period, Varga said it is a clear objective of the cabinet to maintain the favorable momentum of economic growth achieved in 2014. To this end, Hungary will receive EU funds totalling nearly EUR 40 billion (some HUF 12,000 billion), including local co-financing, over the next seven years.