Nypro Inc. has expanded in Europe by forming a joint venture in Hungary.
Nypro chose Karsai Holding plc as its partner for precision injection molding. The venture will occupy a 32,000-square-foot factory that Karsai Holding has been constructing since early this year. Nypro said the new operation should begin production in September.
The plant in Tata, in northwestern Hungary, initially will focus on telecommunications parts, but Nypro expects to add automotive and other core markets, according to Nypro President and Chief Executive Officer Gordon Lankton. Most of the plant's output will be sold within Hungary, Lankton said in a telephone interview from his Clinton, Mass., office.
Hungary's manufacturing sector is growing as some European original equipment manufacturers migrate there from other parts of Europe, Lankton said. The formerly Communist country has a skilled and dedicated work force, a stable political system, a strong economy and modern infrastructure.
The joint venture, Nypro-Karsai Ltd., initially will have about 20 injection presses, a mold maintenance facility and automated assembly space in the Tata plant. The partners will invest about $5 million in the facility and machinery. They estimate it will employ about 60. The operation already has ISO 9002 quality registration, and the partners are seeking ISO 14000 environmental registration.
The partners signed their agreement July 12 after more than a year of negotiations. Nypro is attracted to Karsai's entrepreneurial spirit and expertise in molding, Lankton explained.
Karsai Holding, based in Szekesfehervar, Hungary, was founded in 1988. It runs a dozen companies in six plants, including one in Romania. Several of its companies do plastics processing, including blow molding of bottles and extrusion. It forecasts sales of 10 billion Hungarian Forint ($35.7 million) this year.
Nypro's other European plants are in Ireland, Wales, Germany, France and Russia. It expects its total 2001 sales to exceed $700 million generated from 27 molding operations in 12 countries. Nypro claims to be the 18th- largest employee-owned company in the United States.