The acquisition of Iron-Tech aligns well with our development strategy, which is based not only on organic growth but also on acquiring strong and high-potential companies operating in the markets of Central and Eastern Europe,” says Professor Radosław Miśkiewicz, founder and CEO of Luma Holding, which also owns the Luma Automation Group. “I firmly believe that only flexible organisational structures are prepared for consolidation in the face of ongoing globalisation processes. The investment in IRON-TECH will not only enhance our production capabilities, but will also allow us to engage more actively with the southern part of Europe,” he adds.
This is yet another acquisition by the Luma Automation Group in recent years. Last year, the group was joined by Zakłady Metalowe Postęp in Gliwice and Hydomat in Warsaw.
A Promising Future for the Hungarian Automotive Industry
Despite the very difficult period caused by the pandemic, Hungary’s automotive sector experienced a production increase towards the end of 2020. According to data published by the Budapest Business Journal, by the end of Q3 there was already a prevailing sense that the automotive industry was returning to full capacity, and German investors in Hungary expressed optimism about the outlook for 2021. In light of supply chain restructuring, Hungary remains an attractive location. Further investments along the Tisza and Danube rivers have been announced not only by Asian manufacturers from South Korea, China and Japan, but also by German and French companies. Hungary also stands to benefit from the reshoring of production that had been offshored to other continents in previous decades.
“There is no doubt that the issue of supply chains is becoming increasingly important, both due to the coronavirus pandemic and environmental concerns. More and more often – and the pandemic has clearly accelerated this shift – the issue of short supply routes is a key factor when selecting suppliers. This will further strengthen Poland and Hungary as attractive locations for manufacturing,” says Wojciech Derda, CEO of the Luma Automation Group. “The benefits of synergies are also crucial. IRON-TECH specialises in the machining of cast iron parts and will collaborate in this area with Odlewnia Kutno. We are confident that, in the long term, the combined capacities of our aluminium foundry (Saga in Teresin), stamping plants (ZM Postęp in Gliwice and Hydomat in Warsaw), and the Hungarian company will enable us to offer our partners not only semi-finished products but also ready-to-install components for final assemblies,” Derda concludes.
IRON-TECH Zrt., founded in 1999, employs over 250 people and specialises in precision metal machining and the production of metal components. The Hungarian company supplies, among others, such industry giants as Denso, Bosch, and Knorr-Bremse.
