Magna Steyr to Close Hungarian Engineering Center

VIENNA – Magna Steyr will close its Magna Steyr Engineering Center Hungaria subsidiary in Gyor, Hungary.

“Under the current plan, operative business at the engineering center is expected to be discontinued at the end of 2012, with the exception of certain projects,” Magna Steyr says in a statement. “This step has become necessary due to a combination of the current market conditions and declining business.”

The closing affects all 42 employees of Magna Steyr ECH.

The engineering center was founded in 2001 to support production of the first-generation Audi TT at the nearby Audi Hungaria Motor plant. Today, the center offers various capabilities and is working for a number of customers.

Magna Steyr expanded the center’s capacity in 2010. In August 2011, the center’s managing director, Karoly Szocs, told local media the company was planning to double its number of engineers.

Magna Steyr ECH is owned 96.67 % by Magna Steyr and 3.33% by Engineering Center Steyr, Magna’s sister company based in St. Valentin, Austria.