GSI opens Hungary factory after BCI location analysis

Agricultural machinery manufacturer GSI recently opened its first factory on the European continent. The choice for Biatorbágy in Hungary was based on an advice provided by Buck Consultants International.

GSI, a worldwide brand of AGCO, is a producer of granary, conditioning systems and grain dryers, and has a complete line with diverse production machinery for pigs and poultry. In line with its international growth ambition, the company recently decided to build a production facility in Europe. It was however not clear for the management where to base the factory. To assist with the choice for location, GSI decided to bring in the help of Buck Consultants International, a Dutch consulting firm with offices in Nijmegen and The Hague. The main requirement of GSI for the new location: quick delivery, flexibility in product design, and the possibility to meet the specific needs of the local customers (Europe, Middle East and Africa).

Following a thorough analysis of dozens of locations in Europe, including Western and Eastern Europe, Hungary came out on top. Jason Colwell, Director Business Operations EMEA at GSI, elaborates on the decision for Hungary: “Central location played an important role in deciding to open the plant in Biatorbágy as our main export markets in the region are Russia, Ukraine as well as Hungary and the neighbouring countries. Now we can deliver tailor-made material handling equipment designed and manufactured locally.” Favourable investing conditions, good logistics and infrastructure, as well as the local labour market and high-quality suppliers also played a role in GSI’s location decision.

The Hungarian factory is fully operational with a floor space of 2,000 m2, and employs 125 people, including design and quality engineers, staff experts for logistics and sales departments, and professionals such as CNC-operators and welders. The number of employees will, most likely, increase significantly, as GSI expects a tripling of its production in the Hungarian plant in the coming two years.

Cooperation with BCI
Tom Powers, Director Strategy and Integration of AGCO and ultimately responsible for the assignment, expressed his satisfaction with the service of Buck Consultants International (BCI). “As a former location choice advisor, I had very high expectations of Buck Consultants International when we selected them for the project. The very competent, cross-functional, and geographic differentiated project team surpassed our high expectations. The analysis was thorough, the methodology correct, and the reports presented in a timely manner. On the basis of the findings of BCI, I was fully confident to present the recommendation for Hungary to the AGCO and GSI management teams. I am very pleased with our decision to open in Biatorbágy, and am looking forward to work again with BCI in the future when the possibility occurs.”