Termelés-Logistic-Centrum (TLC), which makes steel parts for the material handling equipment manufactured by German parent Sennebogen, is investing 10 billion forints (EUR 30.8m) in a 29,000 sqm factory in Litér, near Lake Balaton, Minister of Foreign Affairs and Trade Péter Szijjártó announced on Monday.
The government is supporting the investment, which will create 80 workplaces, with a 1.27 billion forint grant,
the minister said. The company will install state-of-the art production equipment and robot technology in the plant, he added.
The Litér factory is the Sennebogen group’s only production facility outside Germany where it has three plants in Bavaria, Szijjártó said.
By enhancing support for investors and cutting red tape, the government seeks to maintain Hungary‘s competitiveness even in the period of transformation from a manufacturing-based economy to technology-driven production, he added.
The factory is expected to be finished by the summer of 2020.
TLC managing director Michael Seiferling said capacity is being expanded to fill a growing stock of orders. Sennebogen decided to expand in Hungary because of the good infrastructure and transport, the investor-friendly environment and the state grant, he added.
Operating in Hungary for over 20 years, Sennebogen is satisfied with the skills of the local labour force, Seiferling said.
TLC expects to set up its own training centre in Liter in 2021.