ContiTech is mulling the construction of a rubber compounding facility in Nyíregyháza, Hungary in addition to its existing plant in the country under the name of Phoenix Légrugó Technológia which has 230 employees and produces air spring systems.

"We are currently in talks with the authorities. I'm expecting a decision to be made by the end of the year", said Hannes Friederichsen, general manager of ContiTech Air Spring Systems and member of the supervisory board of Phoenix Légrugó Technológia, during a meeting with Ferenc Kovács, the mayor of Nyíregyháza.

Construction on the new facility could start at the beginning of next year, and would then be completed at the end of 2012.

ContiTech, based in Hanover, Germany, could invest around EUR5m (US$6.6m) in the compounding facility, with the latter then serving the air spring plants in Nyíregyháza, the hose production plant in Carei, Romania, as well as external customers in the region.

Some of the compounds are currently being produced in Germany, while the new facility would help ContiTech build up additional capacity which is urgently needed.

According to current plans, about 30 new jobs would be created under the first stage of expansion.

ContiTech has a total of around 3,000 employees in Hungary working at its sites in Szeged, Makó and Vác. Its parent company, Continental, operates plants in Budapest and Veszprém, as well as a sales office in Budaörs.