Magyar Suzuki Rt (MS), a car factory in Hungary owned 88.87% by Suzuki Motor Corp, will hold an extraordinary shareholders meeting on 29 January 2001 to vote on increasing its share capital of 19.86bn forints by 62bn forints, the company told just-auto.com today.
Suzuki wants the equity raise for MS to expand operations, repay debt and replenish its working capital, according to officials at the Hungarian plant.
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The Japanese automaker declined to specify any improvements planned for MS’s facilities. But, in October 1999, the Hungarian company said it would boost annual production capacity from 70,000 to 100,000.
Each MS stockholder may partake in the capital increase in proportion to its stake in the Hungarian factory. Suzuki has pledged to purchase all new shares not bought by MS’s other owners.
The Hungarian facility, the only manufacturer of Japanese vehicles in Eastern Europe, is owned 10.14% by Japanese trading house Itochu Corp and 0.99% by banks, enterprises and individuals.
In 2000, MS produced 77,253 cars, including 42,137 Suzuki Swift, 31,843 Suzuki Wagon R+ and 3,273 Subaru Justy (the Swift re-badged under contract with Subaru parent Fuji Heavy Industries Ltd). The plant stretched its annual capacity to 80,000 by reorganising workspace.
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By GlobalDataLast year, MS exported 49,522 cars. The main foreign markets were Belgium, France, Germany, Italy, the Netherlands and the UK. The company’s domestic sales totalled 28,072, sustaining Suzuki as market leader in Hungary, the biggest country in Europe with a Japanese brand ranked first in auto sales.
MS produces Wagon R+ in cooperation with a plant in Poland owned by General Motors Corp’s Adam Opel AG. (Opel Polska Sp z oo makes a version of the vehicle named Agila.) On 17 January 2001, GM increased its stake in Suzuki from 10% to 20.1%, but officials from both companies said the US automaker has no interest in taking equity in the Hungarian factory.
In April 2001, MS will hold its annual shareholders meeting.
(Exchange rate: $1 = 281.61 forints.)
Contact Ryan James Tutak, associate editor of just-auto.com for Eastern Europe: E ryan.tutak@just-auto.com F +36-1 / 317-7257 T +36-1 / 266-2693 |
