Electronics Production | November 05, 2007
Romania & Ukraine<br>next for Videoton
evertiq.com spoked to Mr. Ottó Sinkó, CEO of Hungarian based EMS provider Videoton and asked about the company's development on the European market, main focus, investments and future plans.
How does the development look for Videoton in Europe? Last year Videoton grew 25% while this year the company estimates to grow 20%. The number of employees is the same. The company has grown through efficiency. However we still sees a stable growth in Hungary. Which countries in Europe are in your main focus? Bulgaria is an interesting market for Videoton. In Bulgaria and Romania the completion looks better, however wages are increasing in these two countries as well. In Bulgaria there is a very big industrial base. Are there any other European countries you would like to enter? The next locations for establish a production for Videoton is Romania and Ukraine. There is better growth in these two countries and competitiveness from other large EMS companies is smaller. Which customer segments are you focused on? Videoton's customer segment is mid-sized European companies, and also multinational worldwide companies. Videoton’s major share is in the automotive segment however we are also involved in consumer, industrial and small part of telecommunication electronics. Many customers are located in Germany, France and UK. How do you see the completion from China? High volume has already moved to China but low and mid size volume is in Hungary, however moving to China is slowing down in Hungary. Will Videoton make any investments or acquisitions in the near future? This year Videoton will invest approximately € 20 million in new machines, capacity expansion, transport for the employees and more. Last year the company made an acquisition process. Now the company is looking for some new acquisition but only to increase the workforce by 100 employees. Videoton will also through acquisitions reach into new market segment and new customers. What will happen next with Videoton? The company will not make any big movements, however we are growing rapidly and the future looks bright.