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Ziegler Expands In Hungary

February 7, 2011

Investment will largely target automotives market.

J.H. Ziegler has begun the second construction phase of a new plant in Babolna, Hungary. Representing an investment of nearly €7 million, the
new production building and the most modern, largest and most versatile production systems for nonwovens will commence production in the third quarter of 2011 and is equipped to manufacture almost the entire range of the company's products.

Since opening in 2006, the first Bábolna plant has been producing nonwovens primarily for the furniture industry. Even though Ziegler opened another new line in Achern, Germany in 2008, the strongly growing demand, particularly from the automotive sector, has already necessitated a further capacity expansion. The Hungary site was chosen for expansion because of its proximity to customers in Central/Eastern Europe.

"Since its opening four and a half years ago, our Hungarian plant has been very successful. The good productivity of the workforce, the excellent logistics location at a distance of only 30 km from Győr and continued growth of the local automotive industry were the crucial factors behind this major investment. By the end of 2011, the Hungarian plant will have a comparable capacity to that in Germany. We will also be extending the development, maintenance and logistics departments in Hungary. Some members of the Hungarian workforce have been undergoing additional training in the parent plant in Achern since the end of last year. This will help to ensure that the start-up of the new ultramodern plant will run smoothly," said Peter Hartwig, managing director of J.H. Ziegler GmbH at a press conference in Bábolna.

"The automotive industry has become the most important industrial sector for J.H. Ziegler GmbH in the last few years. We will now be able to supply this sector with a far greater proportion of acoustic absorbers and other nonwoven components directly from Bábolna/Hungary. The same applies to our range of technical nonwovens, for which we are also expecting a significant increase in sales."

In 2010, Ziegler achieved a turnover of around €30 million, which represents a 40% increase compared to 2009. Just over half of the total turnover came from the automotive industry and its sub suppliers.

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