German manufacturer of beverage industry machinery expands in Debrecen

German manufacturer of beverage industry machinery expands in Debrecen

Péter Szijjártó and Ralf Goldbrunner

Germany's Krones AG is to build its first production unit in Hungary in the framework of an EUR 49 million greenfield investment. The plant in Debrecen will be equipped with state-of-the-art technology and, just as in Germany, it will employ highly trained skilled workers and engineers in the manufacturing and assembly. With the help of the Hungarian Investment Promotion Agency (HIPA), the project will create around 500 new jobs.

Founded in 1951, Germany-based Krones Group designs, develops and manufactures machines and complete systems for process, filling and packaging technology. Their equipment processes millions of bottles, cans and shaped containers daily, mainly in breweries, soft drinks factories, as well as in the chemical, pharmaceutical and the cosmetic products industries. The dynamic growth of the company is due to the fact that it already very early turned towards production for export, which still accounts for 90% of its turnover. Today, the Group has more than 90 subsidiaries and sites worldwide, employing a total of 14,500 people. The company, which has over 5,000 patents, spent EUR 171 million on research and development in 2016.

As the latest step in expanding the scope of its foreign affiliates, the company opted for the location in Hungary. Debrecen was favoured primarily due to its good logistics connection, its great infrastructure, highly qualified professionals and the training opportunities provided by the university and the dual vocational training. The plant in Debrecen will be equipped with state-of-the-art technology and, just as in Germany, in Hungary, too, it will employ highly trained skilled workers and engineers in the manufacturing and assembly.

Krones considers the Debrecen unit to be its second European pillar in terms of both the manufacture of machine parts and the assembly of the components of the equipment. The company is also planning to bring engineering design processes to Hungary. The total volume planned for the period between 2018 and 2020 is EUR 49.2 million..

Minister of Foreign Affairs and Trade Péter Szijjártó stressed that Hungary managed to pick Krones's investment in a competition with a very strong regional rival, for which the convincing performance of the Hungarian model was indispensable, just as the approach of the city of Debrecen. This investment demonstrates the German companies' confidence in Hungary, just as the fact that HIPA is currently leading 22 investment negotiations with German companies.