REHAU, GERMANY (March 7, 12:15 p.m. ET) — Bavarian plastics component molder Rehau AG + Co. is investing 60 million euros ($78.7 million) in constructing a new automotive parts plant in Gy"r, Hungary, designed to meet expanding demand from the car builder Audi.
Work will start in a few months to build Rehau's new unit on a 280,000 square foot site at the Gy"r international industrial park, close to the Audi assembly plant in Gy"r. The injection molding and painting operation, which will employ around 200, is due to start up in 2013.
Since 2005, Rehau has been producing car bumpers for various Audi models manufactured in Gy"r at its Viechtach molding plant in Lower Bavaria, Germany. These are delivered to the Hungarian vehicle assembly line on a just-in-time basis.
But, with increased demand for parts for new Audi model start-ups, Rehau decided to construct its first components plant in Hungary. The processor will use its new local capacity at Gy"r to produce front and rear bumper systems for the new Audi TT and Q7 models, confirmed the Rehau, Germany-based firm.
“The decision to purchase the plot and build the new plant is part of our international growth strategy”, explains Niklas Braun, chairman of Rehau's automotive division executive board.
The plant will be Rehau's 15th facility worldwide serving the automotive sector.