Posted by: Gabor Grenczer, Counsellor, Economy and Trade Posted on: Wednesday 08 September 2010, 16:34

Hungarian bicycle company Neuzer is building a HUF 530m plant in the Esztergom Industrial Park, north of Budapest.

Neuzer won HUF 100m in grant money for the investment. The plant will have a capacity to turn out 800 bicycles in a single shift. It will have four production lines, instead of two, allowing the company more flexibility to fill orders.The plant will have an area of 6,500 square metres, including 2,000 square metres of warehouse space. The company employs almost 160 staff.

Neuzer's output rose 10pc in 2009 and revenue exceeded HUF 3bn. It sold more than 100,000 bicycles, mainly in Western Europe.Neuzer has a unit in Romania which sells an annual 8,000-10,000 bicycles. A Slovakian-owned company for whom Neuzer is the sole parts supplier sells 15,000 bicycles a year.

Neuzer does not sign contracts for any more than 20,000 units as having many small business partners has made the business more stable. All of Neuzer's bicycles are developed in Hungary and the company offers new products each year.