Bosch To Strengthen Supply Chain Network By Betting On Automation and Capacity Extension
2023. 02. 17.
German giant Bosch invests heavily for the purpose of developing its Hungarian operation yet again: due to new investments worth nearly HUF 70 billion a logistics and distribution center will be set up and the manufacturing capacity of its site in Miskolc will be extended.
Bosch Group is known for being an exceptionally active investor in Hungary: it pumped HUF 100 billion into new investments in 2021 alone, whereas its R&D spending was close to HUF 93 billion. Employing over 17,000, it also qualifies as one of the largest industrial employers in the country.
Driven by the urge for continuous innovation, Robert Bosch Power Tool Kft. now announced two large-scale projects of a total value of HUF 70 billion that are scheduled to be implemented in Miskolc by the end of 2024.
Firstly, a logistics and distribution center will be set up for over HUF 54 billion to meet growing storage and distribution demand. The highly automated storage complex of nearly 100,000 square meters will become a flagship regional distribution hub for the electric power tool segment of the Group. Among others, the Regional Service Center that has been in operation since 2017 to deal with packaging will move there. The newly set up facility will also serve as storage for finished products and raw materials.
On the other hand, more than HUF 15.7 billion will be spent on extending manufacturing capacity of the power tool plant that by now has evolved into a competence center of European battery manufacturing in the Group’s electric power tool segment. The investment enables Bosch to produce and develop more innovative batteries and wireless hand and garden tools.
The announcements provide yet another piece of evidence for the unbroken trust German businesses place into the Hungarian economy that remain the top investors, accounting for 21.1% of the total FDI stock.