ElringKlinger to build automotive parts plant in Hungary

Dettingen, Germany – German auto parts supplier ElringKlinger is investing €21m to construct a new production plant in Kecskemét, Hungary to manufacture moulded thermal shielding for automotive components.

The Dettingen-based group, a specialist in the manufacture of gaskets, lightweight plastic parts and engine and underbody shielding, plans to launch its 10,000m2 injection moulding operation by the end of this year.

This project is part of a regional debottlenecking programme being undertaken by the group aimed at “migrating” ElringKlinger’s shielding production capacity from its Swiss Sevelen operation to Hungary.

In time, ElringKlinger intends to expand the new Kecskemét facility, aiming to create around 700 new jobs over several years, its chief financial officer Thomas Jessulat told the German media.

ElringKlinger, a global leader in the production of vehicle cylinder head gaskets, has been operating in Kecskemét for a number of years. The city is now an automotive industry centre and the supplier has chosen to stay there because of its good infrastructure, international rail connections, and “excellent (professional) training” locally, according to the CFO.

Jessulat stressed the progress speed of the latest project pointing out that planning consent for the 12 hectare plot was obtained in mid-February this year.

His group manufactures a range of multi-material mouldings used both to shield working parts in the engine, exhaust system and other under body areas of the vehicle thermally and acoustically.

Overall, ElringKlinger group aims to develop ‘green technologies’ and to focus on auto light weighting, cleaning up polluting emissions and producing drive system components including those for electric vehicles.

The firm also supplies high-performance plastic parts made with PTFE and PTFE compounds as well as its newly developed plastic material ‘Moldflon’ for applications in other sectors including medical, chemical and equipment engineering.

Globally, the German group, which also makes lightweight plastics bodywork and power train components, employs around 8,200 at 45 operations around the world. It achieved annual turnover in 2015 of €1.5 billion.