FAG Hungary to Become European Supply Base

Schaeffler Group (Germany, parent of INA/FAG Bearings) revealed its aggressive expansion program in Hungary will also produce a new European market center for ball bearing production. Already one of the largest follow-on investments ever made in Hungary, FAG's plant expansion in Debrecen will take the operation to another level within the corporate structure. A FAG spokesman in Hungary revealed this week that the USD $49 million project will be creating INA/FAG's supply base for all ball bearings destined for European markets. The expansion involves a new greenfield building, covering 334,000 square feet of manufacturing floorspace on a 30 acre site suitable for future expansion. The shift away from Germany as the assumed nerve center for all Schaeffler group operations marks a significant strategic shift for the company. It also highlights the growing importance of low-cost eastern European manufacturing bases for traditionally western European companies, particularly those headquartered in Germany. Until 1999, the company had no bearing manufacturing presence in Hungary. Once this Debrecen expansion phase is complete and online, FAG will employ more than 1,200 people in the area.