KSPG's MS Motorservice International has set up a new plant for the production of small pistons on a site of around 50,000sq m in Chabarovice, Czech Republic. The location has now been officially opened.

The new facility of this international aftermarket specialist has a production area of 4,500sq m and a workforce of 42 which, as business progresses, will rise to around 60 by year end and even higher next year. The new plant represents an investment of double-digit million euros.

The global first-tier auto-industry supplier KSPG and member of the Rheinmetall Group now has three production sites in the northwest Czech Republic. Metal in Ústí, a piston plant with a longstanding tradition, has been run by KS Kolbenschmidt since 1995. In 2005, a further plant was added where affiliated company Pierburg manufactures such products as eco-friendly exhaust-gas recirculation and secondary air systems as well as exhaust gas flaps.

KSPG CEO Horst Binnig said, "This location on the river Elbe is becoming more and more important for us. With a planned output of 12m units per year, this is one of our biggest piston plants, and construction work is continuing. Pierburg, too, has significantly grown with two additions and established itself as a significant member of the auto industry supplier sector in this country. In all, the KSPG Group has since 2004 spent around EUR130m (US$145.92m) in the region."

The new plant at Chabarovice will produce high tech pistons for world markets. Due to their extremely complex production process, these pistons are often manufactured in relatively small batches. Nonetheless, the close proximity of the two piston plants to each other will help boost combined workloads and productivity. Moreover, the use of the infrastructure of the large sister plant will generate benefits in the production of the small batch pistons.

The KSPG Group has a workforce of around 1,200 in the Ústí region. Sales in 2015 will total EUR360m.