ZORGE : production capacity Hungary increased

<p style="font-style:italic">After the economical crisis the situation of Zorge is recovering better than expected. Due to the increasing growth in industrial production of the OEM industry the demand in rubber parts has strongly risen over the last year. This recovery is indebted by the renewed building up of stocks within several segment of the European OEM industry and the increasing demand from Far Eastern countries.</p><p>The recession has had its impact on both production facilities of Zorge after the loss of demand the company contended with end 2008. Next to re-organizations and cost measurements the management used the opportunity to improve its competitive position by new investments and improvements in production techniques in order to quicken the process of recovery. This approach has proven its success.</p><p>The expansion of the engine compound in Hungary follows on top of the investments Zorge did two years ago. For the time present the expansion will cover the suddenly caused lack in production capacity and improves the companies position in the East European suppliers market. With the investments in machinery Zorge has build on the knowledge and experience from the past in cold runner techniques and production automation.</p><p>In spite of the positive forecasts for the present Zorge remains reserved and cautious for the future. This is because of uncertainties that still exist in future developments in demand and raw material prices the OEM industry is still being confronted with. It will take some time before the improving demand for parts is balanced with the available production capacities and stock levels through the supply chains.</p>