Dana said it plans to construct a gear manufacturing facility in Europe.

“The establishment of this Spicer gear factory in Gyor, Hungary, will serve as a significant enabler to further satisfy the regional needs of Dana’s global customers,” the supplier said in a statement.

“The 140,000 square foot (13,000 square metre) factory will provide customers in the region with access to Dana’s advanced design, engineering, and manufacturing expertise to support their sourcing initiatives and technology strategies.”

With construction slated to begin in the first quarter of 2017, the company plans to invest around US$51m (EUR46m) in the new facility and expects to employ approximately 200 people by 2020.

The facility will produce Spicer AdvanTEK hypoid or spiral bevel ring and pinion gear sets.  Dana manufactures primary ring and pinion drive gearing for traditional banjo and beam axles, as well as all-wheel-drive systems.  Full axle assembly on the site is possible in the future.

The new plant will be the company’s fourth in Gyor. The decision to develop another plant within the country was made possible by the support of the Hungarian government which awarded Dana non-refundable cash grant based on the proposal of the Hungarian Investment Promotion Agency (HIPA).

“Dana is earning new business in the European marketplace, and to support this we are excited to add an additional gear manufacturing facility to our footprint,” said Bob Pyle, president of Dana Light Vehicle Driveline Technologies.  “This plant is strategically positioned in close proximity to our other Gyor operations and will enable us to deliver technologies to our European customers more quickly and cost effectively.”