The Schaeffler Group, parent of INA / FAG bearings (Germany) has officially inaugurated its newest bearing manufacturing plant, in Debrecen, Hungary. The opening was attended by Schaeffler Group's Maria-Elisabeth Schaeffler accompanied by a wide range of government leaders.

Schaeffler's decision to build a new bearing manufacturing plant in Hungary was made in 2005 and formally announced in March 2006. The company had briefly considered the government's offer of the elderly Hungarian Rolling Bearing Works (MGM) plant, but rejected it in favor of a greenfield facility.

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At more than €70 million (USD $100 million), the new plant, according to the Ministry of Economy and Transport, represents one of the largest investments in the history of Hungary's private manufacturing sector.

Until 1999, INA/FAG had no bearing manufacturing presence in Hungary. With this new facility adding to the previous Debrecen automotive-size ball and roller bearing plant, the company now employs more than 1,300 workers in the area.

The just-completed Debrecen plant covers more than 334,000 square feet on 30 acres in a manufacturing park. Authorities say it will eventually hire as many as 1,100 skilled or semi-skilled workers, helping address the depressed region's most difficult employment issue.

Schaeffler's Hungarian operations are essentially two businesses, FAG Components and FAG Automotive, operating in tandem.

Nearby, in the same industrial park, is Eurings Ltd. (a joint venture of FAG, Germany, and SIMEST, Italy), which supplies hot forged, annealed and sand blasted and rolled bearing rings to FAG Hungary. Eurings runs three shifts. Hoover has a bearing ball plant nearby, as do Dongwoo Kft. and Kaewoo MGM.

Schaeffler's new plant will reportedly first focus on the most price-competitive automotive sizes of ball and roller bearings under 90mm.