Electronics Production | January 31, 2012
Videoton continues success
The expected income of the Videoton company group before consolidation exceeds 100 billion HUF, which shows a slight increase compared to the result reported in year 2010.
The company group still employs 8'000 workers. In 2011, the Hungarian factories increased the number of their employees by about 300, but – due to changes in the market – the Bulgarian subsidiary had to make a cut back to a similar extent. The primary goal being organic growth, the group started a technology improvement programme. The value of the investment to be accomplished between 2010 and the end of 2013 is well beyond 5 billion HUF. Out of this total, more than 3.5 billion HUF have already been invested until now. Though the majority of the investments for 2012 are dealing with automotive and industrial electronic assembly, segments that are expected to show the strongest results in 2011, plans also involve plastic injection moulding, metal processing and sheet metal technology and Videoton’s factory in Bulgaria. All investments will be made from existing cash flow (not from credit), Videoton points out. In year 2011 the largest European automotive suppliers, Bosch and Continental gave new, complex tasks to Videoton, whom they already consider as a key supplier in the region. The implementation of the projects needed several basic technologies, so the vertical integration of the company group meant an advantage and required the co-operation of several Videoton subsidiaries. The company group gained new lighting industry businesses in the field of public lighting, as well as from the automotive and consumer industry. Related to these projects, Videoton may produce complete sub-assemblies and, due to its electronic, plastic industrial and assembly technical competencies, help its partners in design and NPI effectively. In the field of household appliances, the company group participate in the launching of new products. One of its largest partners entrusted the company with the management of the whole development process. With it, Videoton succeded with achieving one of its long-term goal. Concerning industrial air technology, Videoton succeeded to introduce Ventifilt Kft, acquired in 2011, into the German market.