Consumer goods giant The Procter & Gamble Co. (PG Quick QuotePG - Free Report) intends to expand operations in two of its manufacturing plant at Csomor and Gyongyos, Hungary. The proposed expansion will involve an investment of $200 million, creating 250 positions.

The signing of the expansion agreement with Hungarian government officials reportedly took place at P&G’s Hyginett Plant in Csomor, where it will upgrade technology to manufacture women’s sanitary pads. Packaging operations for its Braun razor brand and assembly and packaging operations for some Oral B tooth care products will be carried out at its Baby Care plant in Gyongyos.

Notably, total P&G employs about 1,200 workers in Hungary. About 800 people work at the Hyginett Plant whereas the Baby Care plant has employed more than 150 workers.

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Management is optimistic about the fact that this expansion, which is part of its global supply chain transformation, will make P&G’s end-to-end supply network more efficient, productive, innovative and better positioned to drive growth.

Notably, P&G’s core earnings per share dipped 2% to $3.67 in fiscal 2016. Although the company’s organic sales grew 1% year over year, its net sales were down 8% to $65.3 billion. Though weak sales have been offsetting margin improvement from pricing gains and cost cuts for some time now, P&G is investing in its brands and products as well as re-designing the supply chain to boost productivity and organic growth.

In the wake of intensifying competition from industry peers like Colgate-Palmolive Co. (CL Quick QuoteCL - Free Report) , The Clorox Company (CLX Quick QuoteCLX - Free Report) and Reckitt Benckiser Group plc (RBGLY Quick QuoteRBGLY - Free Report) , the expansion drive could likely be P&G’s strategy to boost its top line.

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