Samsonite-Hungária, a global luggage manufacturer Samsonite International Ltd., plans to move its plastic parts molding supply from Asia to Europe's local processing company.
Samsonite, headquartered in Denver, Colorado, stated that its subsidiary in Budapest is investing in a project of 5.67 million euros (6.7 million US dollars) to upgrade and expand the production of several Hungarian injection molding plants.
Samsonite admits that shifting to European supply may increase costs, but it will have partners with closer partnerships, so that greater flexibility can be achieved. The goal is to increase the production capacity and competitiveness of each company and help establish new beauty. A more stable, more flexible local supply base.
Samsonite has relied on outsourcing most of its luggage production to the rest of the world. However, in recent years, the company has invested heavily in expanding its in-house production of polypropylene and polycarbonate hard shells in Hungary.
Its latest project is partially funded by the European Union and national governments, with a total funding of 2.52 million euros (2.9 million US dollars) and will benefit four small and medium-sized injection molding plants in the Danube region outside of southern Hungary and central Hungary.
A few of the Group's processing suppliers include Plasticor Kft. in Veszprém; Sárbogárd in Sárrét-Plast Zrt.; Kresz & Fiedler Kft. in Pécsvárad, and TermoplastKft. in Pécs. Financial capital injection will help the four companies significantly increase their molding capacity and invest in IT. Development, implementation of the expansion of the two companies. The expansion project will be completed in December this year.
In general, this project aims to increase the production of hard shells, injection molded suitcases, and increase the competitiveness of the Group. In the past five years, the output of the Saksad plant in southwestern Hungary has quadrupled.