GKN Automotive has completed construction of a new factory in Felsozsolca near Miskolc, north east Hungary, "to remain close to its OEM customers and maintain its market-leading position".

The British supplier said automotive had become a dominant industry in Hungary with 420,000 cars and 1.9m engines produced every year. With many of its current and potential OEM customers already in the region, the new site will allow car manufacturers to benefit from a tier one supplier close by.

The site, which will be in operation in October 2023, will produce approximately 230,000 sideshafts for customers between then and December 2023 with further capacity expected to follow.

Covering 29,000 square metres, the site houses a production and logistics hall, office building, and engineering centre with testing facilities, and has been constructed with a focus on sustainable design and optimum flow production processes.

The plant will complement GKN Automotive’s existing production sites in the region, further improving its competitiveness. These are Olesnica in Poland and Zrece in Slovenia.

Markus Bannert, CEO at GKN Automotive, said: “This site will be strategically important in delivering our market leading sideshafts for which there is growing demand.”

Felsőzsolca Industrial Zone was picked as the most suitable site due to its advantageous position for international transport and trade. Miskolc has a strong and diverse education system and is home to the second largest technical university in Hungary, providing a pipeline of skilled technicians.