NEWSline

PAYER – new subsidiary in the Ukraine
15th May 2008

The new PAYER-subsidiary located in the city of Beregszász/Ukraine strengthens PAYER’s global position in the east-European market. 
 
With the establishment of our new subsidiary in the Ukraine, the in terms of area largest state of Europe after Russia, PAYER continues its concept to combine different regional competences, logistic considerations and marketability together to a powerful wholeness. The duty of our new subsidiary is to strengthen the specific tasks of its headquarters in Austria and its factory in Hungary.

We benefit from the setup of new production-lines in the Ukraine regarding cost of labour, the closeness to the headquarters as well as the easy cultural and linguistic interconnectedness, especially with the factory in Hungary as our new subsidiary company is located in a Hungarian spoken area in the Ukraine.

For PAYER this step has been necessary due to its excellent order situation which asks for higher capacity and good outsourcing-areas.

The new established and independent acting company “PAYER Industries Ukraine” is a subsidiary company of “PAYER International Technologies” and is working intensively and supplementary together with our plant in Hungary. PAYER Industries Ukraine based in Beregszász, a city which is located 5 km away from the Hungarian frontier. Since the main spoken language in this region is Hungarian, a simply and smooth communication with the Hungarian PAYER plant is ensured. The traffic related good location of our new subsidiary in order to make an easy arrival via car and plane from Austria as well as from Hungary possible, is another big advantage for us.

Further aspects which argue for the Ukraine as a location, is the commercial law – in this area exists an exemption from customs compared to the GIS states and also the chance for us, to open up the Ukraine and Russian market.

The production will start within June 2008. The main duties of our new subsidiary are labour- and personnel-intensive assembling as well as injections moulding activities of small parts and components for Personal Care. Simple production activities can be outsourced and extended by less logistic effort.

A complex in size of almost 2.300 m˛ has been rehired and adapted. A three shift operation will be introduced from beginning onwards. Up to the end of 2008 we will further expand the activities. At the beginning we have employed 100 people in the Ukraine – at the end of the year, the number of employees will rise to approximately 160 people.


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