Diebold Nixdorf Inc. will close its manufacturing facility near Budapest, Hungary as part of what the company has been calling its multiyear business transformation program.
Production activities from the Hungary site will be integrated into other facilities in the company's global manufacturing network, the company announced March 10. Diebold has tabbed its restructuring program as DN2020.
"As with any project of this kind that impacts our people, these are difficult decisions," Juergen Wunram, senior vice president and chief operating officer at Diebold Nixdorf, stated in a press release.
Closing the Hungary plant and consolidating production into larger and more scalable facilities will enable Diebold "to be more competitive, agile and efficient for our customers, and help ensure the future success of the company," Wunram added.
Diebold opened the Hungary plant in 2006 to assemble and ship ATMs and related parts to customers in Europe, the Middle East and Africa, and Latin America. After Diebold's acquisition of Wincor Nixdorf in 2016, the company retained its U.S. headquarters, though it also has a substantial presence in Germany.
Production and related operations at the facility will be phased out by the end of the third quarter in 2017. The Hungary facility currently employs approximately 150 people.