Austrian disposable health care products manufacturer Greiner Bio-One International is considering expanding its production facilities in Hungary.
The company, part of Kremsmünster, Austria-based foam and plastics processor Greiner Group, is mulling alternative sites for its latest investment, including the Hungarian plant at Mosonmagyaróvár. But, Greiner Bio-One may still opt to extend one of its other units in Germany, Austria, Brazil, Thailand and the US.
The processor expects to make a final location decision for its planned investment of up to 5 million euros ($6.8 million) within a month, likely July, Bio-One Hungary managing director László Balogh told the Hungarian news agency MTI.
If the firm selects Hungary for the expansion scheme, the manufacturing area at Mosonmagyaróvár would rise to around 10,000 square meters. Preliminary design work has already been carried out and, given the green light, additional production of laboratory products could begin next year, he suggested.
An enlarged site there, where Bio-One already employs about 140, is likely to increase the workforce by between 40 and 60, the executive said.
Benefits of proceeding with the project in Hungary include lower labor costs and the potential of incentives and other financial support from both the national government and European Union funds. A rival location abroad has the advantage of a large market and saving on shipping costs.
Greiner Bio-One International, employs around 1,700, and operates worldwide in the biotechnology, pharmaceutical, medical and in-vitro diagnostics fields. Last year, its Hungarian subsidiary, which focuses on production of injection molded disposable petri dishes for laboratory use, turning out up to 160 million units per year, had sales of 11.7 million euros ($15.9 million) last year.
The family owned Greiner group established its Hungarian plant in 1996 as Greiner Labortechnik. Its subsidiary company was renamed Greiner Bio-One International in 2000. Bio-One Hungary expects to increase its annual sales this year to around 12.7 million euros $(17.3 million).
Greiner is already investing heavily in the Bio-One business in Austria with a 14 million euro ($19 million) project to expand its Mediscan product sterilization site at Kremsmünster. A groundbreaking ceremony is due to take place there in the third quarter of 2014, the group said.