Despite plans to expand its development activities in Hungary, Knorr-Bremse will continue to expand in Germany, too.

According to the dpa news agency, Knorr Bremse is planning to increase the number of engineers in Germany by 13% to 723. Earlier in the week, the company had announced that it would expand its activities in Hungary and invest EUR12m in new research and development centres in Budapest and Kecskemet.

The number of engineers in Hungary is expected to rise 30% to 315 by 2009. Knorr-Bremse currently employs 900 people at its manufacturing plants in Hungary.

At the beginning of December, Knorr-Bremse announced that it had signed an agreement to set up a joint venture with Russian truck manufacturer, KAMAZ, for the production of complete truck braking systems. Under the terms of the agreement, KAMAZ will incorporate its existing drum brake production into the new company, and Knorr-Bremse will set up a production facility for disc brakes, torsional vibration dampers and other components on the KAMAZ site. Both partners will hold a 50% share in the joint-venture.

The new joint venture will exclusively equip all KAMAZ trucks but will also supply other commercial vehicle manufacturers in Russia and neighbouring countries.