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GKN Automotive Completes Construction of New Production Facility in Hungary

posted on 12/09/2023
GKN Automotive Completes Construction of New Production Facility in Hungary

GKN Automotive, the global leader in drive systems, has completed construction of a new manufacturing facility in Felsőzsolca near Miskolc, north-eastern Hungary, to remain close to its OEM customers and maintain its market-leading position.

The automotive industry has become a dominant industry in Hungary, with 420,000 cars and 1.9 million engines produced every year. With many of its current and potential OEM customers already present in the region, GKN Automotive’s new site will allow car manufacturers to benefit from a leading tier one supplier within close proximity.

The site, which will be in operation in October 2023, will be responsible for producing sideshafts. GKN Automotive estimates the site will produce approximately 230,000 sideshafts for customers between October and December 2023, with further capacity expected to follow. By increasing the production of components used in electric vehicles, GKN Automotive can continue to drive the transition to electrification.

Covering approximately 29,000sq. metres, the site consists of a production and logistics hall, office building, and engineering centre complete with testing facilities, and has been constructed with a focus on sustainable design and best-in-class flow production processes.

The plant will complement GKN Automotive’s existing network of production sites in the region, further improving its competitiveness. These include Oleśnica in Poland and Zreče in Slovenia. In the long term, these plants, along with other GKN Automotive sites globally, will also support the growing demand for eDrive systems and components.

Markus Bannert, CEO at GKN Automotive, said: “We’re delighted to be opening our new manufacturing facility in Hungary, which has become a key location for many of our customers. Once production begins in October, this site will be strategically important in delivering our market-leading sideshafts, for which there is growing demand.”

Following a comprehensive site selection process, the location – Felsőzsolca Industrial Zone – was decided on as the most suitable due to its advantageous position in terms of international transport and trade. Its nearby city, Miskolc, also has a strong and diverse education system and is home to the second largest technical university in Hungary, University of Miskolc, providing a pipeline of skilled technicians.

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