REHAU, GERMANY (July 30, 1 p.m. ET) — Bavarian plastics auto component supplier Rehau AG + Co. began work on its new 60 million euro ($73.4 million) car bumpers plant in Gy"r, Hungary with its formal laying of the first foundation stone in mid July.
The 26,000 square meter bumper injection molding and painting facility is due to supply parts to the nearby vehicle assembly plant of the German car builder Audi from next year.
“The Gy"r site will become another showcase of our efficiency,” declared Rehau Automotive executive board member Markus Grundmann at the stone laying ceremony.
He said his company stands for “dynamics, innovation and a sense of responsibility”. That is why Rehau was concerned to establish the new plant building not only with economical but also environmental considerations in mind, the executive added.
Until now, Rehau has been molding the components for Audi at its Viechtach molding plant in Lower Bavaria, Germany and supplying the car maker's Hungarian site on a just-in-time basis. But pressure from the advent of mew models led to Rehau building its new plant nearby.
The Gy"r facility is due to mold and paint the front and rear bumpers for Audi's new Q7 and Audi TT car models from 2013.
Final assembly on the Audi TT and derivatives of the A3 model is carried out at present in Gy"r, and for the Q7 in an assembly and logistics centre in Bratislava, Slovakia. But, from next year, the bumber systems for the A3 convertible will also be produced in the new Hungarian Rehau plant, the firm said.
It said the new operation will eventually be capable of turning out up to 500,000 front and rear bumper units per year.
The Rehau project in G"yr received funding aid from both the EU and the Hungarian government of around 3.42 million euros ($4.2 million).