© Videoton Electronics Production | August 02, 2011

Videoton on its way to more growth

Videoton is the largest Hungarian industrial group in local private ownership working in the EMS-business. The company, headquartered in Székesfehérvár (Hungary), has 9 locations in Hungary, 1 in Bulgaria (Stara Zagora) and 1 in Ukraine (Mukachevo).
We have been talking to Ms Zsuzsa G. Lászlófalvi, Managing Director of Videoton Automotive Electronics, member of the Videoton Group that specialises in automative electronics.

What investments are planned for Videoton Automotive Electronics? (New equipment, additional staff)

It is not only a plan, some new investments, mainly related to capacity extension, are already under way. There are 3 main factors behind:

- we could extend our customer base with new partners (new projects, further capacity needs)
- we won some high volume and also complex projects from our existing customers (capacity needs)
- the structure of the used technology is shifting year by year to the direction of higher automation.

To be more specific, not only the extension of our SMD capacity with new lines is in process, but also the investment into the back-end processes: selective soldering machine, ICT capacity increase and conformal coating line, etc.

What are the major sales markets for VAE?

Actually we are working 100% for the automotive market. But with the utilization of our automotive experience in terms of high quality and on-time delivery and with a medium term view, we target the whole spectrum of the high reliability markets, for medium volumes, medium to high diversity. Other market segments and low volume, high diversity markets are covered by our sister company VEAS (Videoton Electronic Assembly Services).

What is your main focus area when it comes to automotive electronics? (Security, infotainment etc.)

The range of application of our products is very wide. Over the years we built up a competence in electronics and electro-mechanics for different lighting functions (daily running light, bending light controller, head lamp actuators, rear lamps, internal lighting, CHMSL), climate controllers, suspension controllers, wiper motor controllers, security applications like immobilizer and electronic steering column locks, rear seat entertainment, different special sensors. And there are also electromechanical related junction boxes, and specific relays.

With almost 1'000 employees VAE is fairly big. Will you increase numbers further?

Staff numbers are actually already above 1'000. Due to the above mentioned reasons, we increased staff numbers already this year by 100.

Electronics components are more and more prominent in car design. Is the competition getting tighter?
It is definitely tighter on both unit price and tooling. As we see, the new developments on the cars make the electronic assembly more and more diversified in terms of the used technology. It means the parts we need to produce require more back-end processes and also some specific components. An important part of our success is the vertical integration of the Videoton company group, which means we can utilize the specific components (plastic parts, stamped and/or machined parts) produced in the sister companies, the tooling made by our own tool shop, the support of the test development department even for very complex functional testers. We practically provide a one stop-shop solution with a competitive price level, and this supports us in the competition.

You have 5 facilities. Where are they?

All of them are located in the same industrial park - at Videoton Székesfehérvár.

Do they all focus on different segments within the automotive electronics sector?

There is some overlapping, but the main directions for each of the plants are different, like: electronics assembly, electro-mechanical assembly, spare part assembly, stamping and sensor production Our company structure also follows this segmentation, there are dedicated units for the different fields: separate quality, engineering, etc. staff.

Do you plan further investments in new facilities? (If so where?)

New products require more and more advanced environments. For this reason we are about to reorganize the 5 plants, with some improvement; we doubled our shop floor area in the new building where we completely fulfill the IPC Class 3 requirements. With this and further LEAN programs we aim to optimize the existing areas instead of having new facilities. However, it would not be a problem to extend our shop floor area in case of further capacity needs. Videoton is always open to invest in a business / technology / facility in case of an appropriate return.

Image © Videoton
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