Kecskemet, Hungary – Freudenberg Sealing Technologies has completed and celebrated its expansion in Kecskement, doubling capacity for sealing products at the Hungary site.
The firm said in a 1 July news release that the building doubled its production space by about 64,500 square feet, representing a €13 million investment and creating 75 new jobs, bringing the facility’s total employment to 700 people.
Kecskemet produces radial shaft seal rings for transmission and drivetrain applications, including its Energy Saving Seal, which Freudenberg said contributes to a significant reduction in vehicle fuel consumption and emissions.
“In Kecskemet, we have established one of the most modern factories in our worldwide production network,” Freudenberg Sealing Technologies CEO Claus Mohlenkamp said in a statement.
The executive added that the facility will produce about 9 million seals per month and primarily service the automotive industry.
Freudenberg said that Hungary is an important manufacturing centre for its Sealing Technologies unit, citing a growth rate of more than 17 percent in recent years. The government also provides tailored programs to help foreign companies with investments in the region, the firm said.
“Thanks to this major expansion, we now have a competitive facility here in Kecskemet offering excellence in production, quality and logistics,” Plant Manager Zoltan Augusztiny said in a statement.
The Hungarian Investment Promotion Agency, part of the Hungarian Ministry of Foreign Affairs and Trade, provides financial support to foreign investors, Freudenberg said. The country also has additional assistance available in the areas of language training and special technical education.
Freudenberg said because of the high concentration of industry, there is nearly full employment in the region. The firm said to meet skilled labour demand in the future, Freudenberg Sealing Technology will intensify its internal employee training and become strongly involved in local education programs.
“Hungary offers outstanding conditions for automakers as well as the supplier industry,” Mohlenkamp said. “Leading companies in the industry, including many of our customers, appreciate this and have built major facilities in Hungary. “With our plant in Kecskemet, we can quickly supply our customers in the region with high quality sealing solutions.”
Freudenberg said its Kecskemet facility has been producing seals since 1998, with operations steadily expanding since then. Freudenberg Sealing Technologies reported sales of about €2.3 billion in 2015 with more than 15,000 employees worldwide.