Samsonite expands luggage operations in Hungary

Photo by Samsonite

Leading global baggage manufacturer Samsonite has invested around €11m to complete the construction of a second travel bag production plant at Szekszárd in southern Hungary.

The launch of the 20,000m2 facility, close to the US group’s already expanded operation in the town, will raise capacity 17% to 1.7 million luggage units per year. The new plant is set to turn out a range of 15 different models to be sold in up to 100 countries.

Its construction, the third major investment project by the local group offshoot Samsonite -Hungária in Szekszárd since a plant there was originally set up in 1989, has created 100 new jobs. It has taken Samsonite’s total national plant area to 40,000m2 and workforce to 750.

Along with the new plant, Samsonite is reported by local media to be investing €6.4m to establish a centre to support specialised technology training for workers at the plant.

Prior to the latest expansion, Samsonite-Hungária’s annual output stood at 900,000 CURV PP based cases and 300,000 designer polycarbonate bags. The new plant could see its eventual annual production capacity nearly double reaching 2.3 million suitcases and bags, Samsonite Europe’s president Arne Borrey was quoted as suggesting by regional media.

Samsonite has received state support in the current Szekszárd project in the form of a €2.85m grant from the Hungarian government.

In 2014, Budapest-based Samsonite-Hungária invested around €8m to add a new 4,400m2 production hall at the site, completed and fully operating in March 2015, which was due to increase its capacity by 28%. The workforce was subsequently increased to 520.

With the expansion, Samsonite introduced new added value technology enabling the site to produce the designer rigid PC made cases.

Also in 2014, Samsonite Europe undertook further expansion in its other operation in Oudenaarde, Belgium. The company invested €2.2m in an additional warehouse and €1.76m to install two new bag shell injection moulding lines for the Belgian facility.