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New American agricultural machinery plant lands in Hungary

Illinois based agricultural equipment manufacturer GSI opened a year ago its first European manufacturing plant. Location of choice is Biatorbágy (Hungary), where 125 people now work in a brand new facility.

GSI, a global brand of AGCO, is a world class manufacturer of grain storage, material handling, conditioning and drying equipment, as well as a full line supplier of swine and poultry production equipment.

The 8,000 sqm manufacturing plant is benefitting from the dynamic growth in the agriculture industry – especially grain, poultry and swine businesses – in the Europe, Middle East & Africa region. The design, manufacturing and distribution of grain material handling equipment is now covered by the Hungarian plant. BCI Global assisted GSI in its location decision process. Tom Powers (just retired), director Strategy and Integration of AGCO, was BCI’s counterpart: “As a former location strategy consultant, I had high expectations for BCI Global when they were selected for this project. The very competent, cross-functional, and geographically diverse project team exceeded expectations. The analysis was thorough, the methodology sound, and all deliverables presented on time. I was very confident in presenting to AGCO and GSI senior leadership the recommendation to locate our manufacturing facility in Hungary based on BCI’s findings. We are very pleased with our decision to locate in Budapest and I would definitely look forward to having the opportunity to work with BCI Global again”.

Production

“Opening our first manufacturing plant in Europe is a key step to increase our international presence and deliver quality products and dependable solutions” explains Thomas Welke, Senior Vice President of the Global Grain and Protein division of GSI. “When we decided to expand, we wanted to be able to accomplish three objectives: speed of delivery, flexibility of product design and the ability meet local customer needs,” Jason Colwell, Director of Business Operations: “With this new Hungary manufacturing plant, we achieve all of them”.
Jason Colwell explains also the choice for Hungary. “Central location played an important role in deciding to open the plant in Biatorbagy as our main export markets in the region are Russia, Ukraine as well as Hungary and the neighboring countries. Now we can deliver tailor-made material handling equipment designed and manufactured locally”. In addition to this, the favorable investment conditions, great logistics and infrastructure helped GCI to decide on this location, also taking advantage of the professional workforce as well as quality local suppliers.

Distribution

In addition to manufacturing material handling equipment, the factory also functions as a training and distribution center for GSI’s complete portfolio of grain, poultry and swine equipment. Together with the additional 2,000 sqm office and warehouse building, GSI Hungary Ltd. has created 125 jobs by hiring design engineers, quality engineers and colleagues to support logistics and purchasing department as well as several skilled blue collar workers (CNC operator, welder, etc). The number of employees is expected to grow exponentially as GSI plans to triple the production of the Hungarian plant in the next two years.

AGCO

GSI is a global brand of AGCO, a global leader focused on the design, manufacture and distribution of agricultural machinery, which has been present in Hungary already since 2011, when a shared service center opened its doors. That year was also marked by the decision that the company, famous for their brands Challenger®, Fendt®, Massey Ferguson® and Valtra® now aims to deliver complex agricultural solutions and acquired GSI Group specialized in grain storage and handling, poultry and swine systems.

More information:
Josefien Glaudemans: email josefien.glaudemans@bciglobal.com,
phone +31 24 3790222

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