On October 10, Grundfos officially opened a new production factory in Tatabánya, Hungary, in the presence of His Royal Highness, Prince Joachim, as well as representatives of the Hungarian government and others. The new 14,500 sq m factory will hold Group motor production.
A considerable part of production equipment has been transferred from the motor factory in Bjerringbro, Denmark. The first phase of the transfer has been completed, the second phase will be completed this year, and the third phase will be completed during the first six months of 2001. A the time of opening the factory employs 70 staff whereas the number of staff will be 100 by the turn of the year and, once production is total, about 300.
The object of transferring motor production is not to close down workplaces in Bjerringbro or in other factories in the Group but to be able to meet the increasing demand. In his inauguration speech Group President, Niels Due Jensen, said he was very pleased with the fact that not a single workplace was lost in connection with the transfer of motor production.
"The growth in the Group, including the Danish production company, is so large that new jobs are available for all the Danish staff being affected by the transfer," Due Jensen explained.
One of the advantages of placing production in Hungary is considerably lower production costs. Another advantage is the central location of that country in the new Europe, as well as the stable political and economic development and easy access to highly qualified manpower.