The FMCG giant, which owns brands such as Head & Shoulders and Old Spice, signed the deal at its Csömör plant in the country, stating it ‘appreciates the investment climate in Hungary’, including the talent of Hungarian employees and the infrastructure.
The investment will be put into expanding operations at the company’s Gyöngyös plant to include Braun packaging production and assembly and packaging for some Oral B lines. Alongside this, P&G intends to plug some of the money into developing its facilities at Csömör, particularly in regard to sanitary pad production capabilities.
According to the Budapest Business Journal, this will amount to over USD 200 million and create 250 new manufacturing jobs.
After a rocky period in the past few years, P&G has been showing signs of getting back on track.
A major part of this is the portfolio restructuring, which has included the sale of USD 12 billion worth of beauty brands to Coty, a deal that concluded yesterday.
“A few years ago we got too central and global and too slow to address market opportunities. We need more direct ownership for our regional managers all the way to the store shelf,” David Taylor, the company’s recently appointed CEO, said earlier this year.
The move to invest more in Europe suggests the company is already acting on this strategy of a decentralised, responsive approach.
P&G in Hungary
According to the Budapest Business Journal, the multinational has had a presence in Hungary since 1991, and throughout the 25 year history there, the P&G Hungarian subsidy has grown into an organisation of over 1,200 employees creating a portfolio of over 20 brands.
Its operations are spread across the two plants, which service the global market with P&G’s feminine and baby care ranges.
P&G’s CEO and chairman of the board for Central Europe, Geraldine Huse, spoke of the commitment the company has to Hungary’s economy.
“Throughout our journey we have remained committed to continuously bringing innovation to Hungary, serving Hungarian consumers, investing in state-of-the-art manufacturing facilities, creating a modern working environment and contributing to the growth of the country,” said Huse.