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© farang-dreamstime.com Electronics Production | March 11, 2013

Videoton on it's way to further growth

UPDATED: Videoton – the EMS company that seems to ignore all that is negative in the world and just keeps on trucking. During the last 3-year economic roller-coaster, the company has recorded growth.

EDITOR'S NOTE_ The infographic has been updated to now state the correct production area in m2. Previously, the graphic showed the total land area owned by Videoton.

So what is Videoton's secret? Is there a recipe for that kind of success? – Evertiq had a talk with Videoton's International Projects director Zoltán Horváth.

As one of the bigger players in the European electronics industry, how did the company manage to stay at the top – even during the economic crises that has been affecting everyone?

“Videoton has a very diversified portfolio and serves several sectors. Electronics manufacturing – while being the largest – is not the only sector that the company operates in. Taking this into account, our potential end-market is huge, so just slightly increasing our market share can balance the impact of a modest economic downturn.”

“We do – as a company – feel the crisis. One of the more inconvenient aspect is, that many of our customers are under extreme pressure, and this tests even the longest and friendliest supplier-customer relation”, the manager continues.

The economic crisis has plagued most of the companies. Some regions had to take bigger hits than others. Southern Europe especially. Where does Videoton stand in all of this?

“Bulgaria was on the front pages for the last couple of weeks, but this has no impact on operations at all. Concerning strikes and civil protest the CEE countries were much more quiet over the last 20 years the many of the Western European countries. That is why they get to the front pages so easily. Looking at the long-term prospects for our Bulgarian operations, the situation looks very well.”, Horváth continues.

When a company posts such 2012 results, there must be some high expectations for 2013. Does Videoton have some high flying plans and expectations for this year?

“Videoton has an extremely strong balance sheet. This makes our life less dependent on sharp planning: whatever opportunities arise, we have the means for investment. (Videoton is a net depositor for the bigger part of the last decade). The labour market rules are fair, but rather flexible in both Hungary and Bulgaria. We expect a growth rate that is higher than what is forecasted for both the European and the Hungarian industry. ”

And if the plan goes off without a stumble – we might see some growth in staff numbers at Videoton.

“We plan both incremental investments to keep up with the pace of output growth, and substitutional on, further improving the technical and quality level of our operations.”

“When it comes to locations, we have no plans to increase our foot print in the region or further abroad. We define ourselves as a regional (means European) player. Our presence in Hungary, Bulgaria and Ukraine covers the different cost and competence levels in low cost Europe.”

Geographically, Videoton will remain were they are – and Mr. Horváth believes this is exactly what the company needs for the time being.

“We believe that the sectors we have will provide us with the growth opportunities and challenges we need. The industrial and electrical sectors are our main growth drivers at the moment. This is what we focus on right now.”

Infographic © Evertiq

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