Dana Incorporated reports it has started construction for its new gear manufacturing plant in Eastern Europe, aiming to have it producing parts by early next year, reaching full capacity by 2020. Dana has not indicated the plant’s full capacity.

The projected $49-million (€46 million) investment was announced last September, and is intended to support new demand in the region, which Dana originally emphasized is business that has already been “secured.”

In addition to manufacturing, 140,000-sq.ft. plant in Győr, Hungary, will provide design and engineering, services, to support customers’ sourcing and technology strategies. The new plant will be Dana’s fourth in Hungary, and will have 200 workers at full production.

The plant will produce Dana’s Spicer® AdvanTEK® hypoid or spiral bevel ring-and-pinion gear sets. Dana pointed out that it manufactures primary ring-and-pinion drive gearing for banjo and beam axles, as well as all-wheel-drive systems.

The AdvanTEK line of gears are incorporated into a wide range of axles for light trucks and commercial vehicles.

In 2016, Dana noted that it in the future it may establish full axle assembly in Hungary.

"We are excited to be building this new gear-manufacturing facility to support new business growth in Europe," stated Bob Pyle, president of Dana Light Vehicle Driveline Technologies.  "This plant is strategically positioned in close proximity to our existing Győr operations and will enable us to deliver technologies to our European customers more quickly and cost effectively.”