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Steady position among the leading European EMS Companies

VTAE csarnok 2013Videoton, the largest Hungarian industrial group being in local private ownership, showed continuous growth during the last four years reaching a new record turnover in each year.
From 2009 - the lowest point of the world economic crisis - until the end of 2013 Videoton Group’s turnover increased by 50% in total and continues to grow in 2014.
In this dynamic growth electronics production took the biggest part from the integrated manufacturing portfolio of the Group and became the Videoton’s engine with its growth rate of 66%. As a natural consequence, the 75-year old company is still playing a leading role among the European based EMS providers being the TOP 4 in Europe while having the position no. 27 worldwide. Although Automotive is still the largest market of the Group, Industrial Applications have been providing the most dynamic growth in the recent years with a fast increasing number of new market segments and customers.
Based on the extraordinarily stable financial situation Videoton realized several significant technological investments in electronics production during the last four years, in total value of ca. 25 million EUR.
As a result of these investments new technologies like selective varnishing, selective soldering, ultrasonic washing were introduced on one hand. On other hand, besides increasing the component insertion capacity significantly, the production area was also expanded by ca. 45%, resulting in a total surface of 37.000 sqm for electronics assembly in Hungary and Bulgaria where the labor intensive products are manufactured.
Thanks to the continuous technological development as well as its well-established position and good reputation on the European market Videoton has gained foothold on new market segments like LED building lighting, measurement and control of liquids, gases and dry products in harsh environment and active suspension systems in addition to expanding its traditional markets like automotive lighting, railway electronics and building automation.
A quite significant development has also taken place in the design & engineering activities of the company. The engineering teams of Videoton are involved in the new product design projects of more and more customers in an expanding range of applications providing complex DfX services and a complete industrialization. As a result their contribution significantly shortens the time-to-market of the new products of customers.
The key characteristics of Videoton’s EMS activity - besides the outstanding quality, the continuous technological development and market & customer-oriented approach - is the high flexibility. This is also proven by the fact that the two fully specialized EMS subsidiaries, serving Automotive or Industrial clients, manufacture 1.600 different products for 35 customers ranging from yearly 10 to 3.000.000 pieces.
The key goal of Videoton is to realize its further growth by having long-term cooperation with key accounts for whom the Group can become a strategic preferred supplier of PCBA’s, modules and complete products in the European region.

Videoton is the 4th most significant EMS company of Europe

latkep logovalVideoton, the largest local industrial company group in Hungarian private ownership, takes place 27 globally, based on year 2013 figures, according to the latest ranking of the American trade magazine Manufacturing Market Insider (MMI). Among the European owned EMS (Electronic Manufacturing Services) companies included in the list, Videoton takes the exclusive 4th place.  So the company made a step forward compared to its previous year position (European 5th and global 28th).  MMI compiles this list of the first 50EMS companies in the world each and every year based on their turnover figures. Videoton is not only a stable player among the top 30th companies in the world but also belongs to the leading European suppliers for more than 10 years now in this global and dynamically growing industry.

Technological development of sheet metal forming tool manufacturing at Videoton

fanuc gepVT Precision Molds&Tools Kft, - designing and manufacturing tools for plastic injection moulding and sheet metal processing - has developed its technological base for nearly 130k EUR. The company, located in Székesfehérvár, competed successfully for a tender dedicated to complex corporate technology development for micro, small and medium sized enterprises, within the frame of New Széchenyi Plan. The company won 51 427 EUR non-repayable grant for the 128 584 EUR project thus they could modernize the design and manufacturing of sheet metal forming tools. Also within the frame of the technological development, a new FANUC Robocut wire cut EDM equipment has been installed. Due to the grant, the Videoton subsidiary could also improve its information technology by NX 8.5 software.
The procurement of the processing equipment and the design software package has become necessary due to the increased number of customer purchase orders and the higher technological and quality demands.
Thanks to the project accomplished with the support of the European Union, VT Precision Molds&Tools Kft. has significantly improved its capabilities in the design and manufacturing of progressive sheet metal forming tools, so now the company is able to meet the current market demands.

Videoton had a prominently good year in 2013 too

turnover of videoton 2014Videoton industrial group increased its consolidated turnover expectedly by 12% in 2013, which means more than 110 billion HUF (370 million EUR). Electronic manufacturing by its 30% market share is still the most significant among the manufacturing services of the 5th largest European EMS company. Within electronics, especially the production for the Industrial and Automotive segments has grown but each market segment has contributed to the business success. Progress has been achieved also within the other activities of Videoton, like plastic injection moulding, stamping, machining, tooling and surface treatment.
The operation of the industrial group is supported by its nearly 80 billion HUF (270 million EUR) shareholder’s equity. The working capital grew by 6% compared to the previous year. A large part of the result is ploughed back in each year by the company therefore, due to its inner sources and financial power, it is capable to realize investments and development worth over a billion HUF without any bank credit. Last year the company spent 3 billion HUF (11.7 million EUR) on technological investments. (The number does not contain the value of the 150 newly bought Mercedes-Benz Citaro buses by which VT-ARRIVA participates in the public transportation of Budapest.) The headcount of the group increased by 5% (400 more employees) by the end of December therefore there are 8200 employees now. Beyond investments, the future progress of Videoton depends on human resources as well; therefore the development of this field has high priority in 2014.
Videoton, which provides complete solutions in Automotive, Household Appliances and Industrial Application as contract manufacturer, sees its successes in the right strategy, the good situation assessment, the careful risk management and the continuous development. This is proven by the fact that the group has been growing solidly and dynamically in the last 4 years (see graph). According to the forecasts, this progress keeps going on also in 2014.

Videoton EAS Kft. has won the Pegasus prize

pegazus dij veasVideoton EAS Kft. dealing with electronic assembly has won the first place in market leader category among the most dynamically developing companies of the Western Hungarian region. Pegasus prize has been awarded for the fifth time since 2011 to the five-five most successful small and medium sized enterprises in two categories from three regions (Western Hungary, Central Hungary and Eastern Hungary). Based on their 2012 turnover, the companies have been awarded in emerging (turnover from 500 million HUF to 2.5 billion HUF) and market leader categories (turnover above 2.5 billion HUF). In choosing the winners, mainly the growth rate and its intensity in the last 3 years were taken into account as well as the transparency of the enterprises.
Videoton EAS which produces more than 800 types of electronic products deserved this award as they increased their annual turnover by 86% in total (from 7.8 billion HUF to 14.5 billion HUF) in the last 3 years. According to preliminary figures, the turnover of the Videoton subsidiary is expected to increaseby a further 20% in 2013 due to its competitive manufacturing services and dynamically developing international business relations. Beyond the more than 20 EU member states, they also deliver to overseas. The electronics produced by Videoton EAS support the safety of high-speed rail network in Europe, China, India and South America. They can also be found in high voltage power plants, boilers, smoke detectors and LED lights.

Videoton was given Magyar Brands award

mb dij 2013In 2013 it was the fourth time that Videoton received Magyar Brands (Hungarian Brands) award, this time as the second best. The candidates and the nominated brands are ranked by an independent professional committee based on various criteria – like tradition, management, employment, ownership, reputation, identity – expressed in figures. Based on all this Videoton deserved – from quality, business and consumer point of view as well – to be among the firsts in the TOP 100 business brands category. The prizes were distributed among the enterprises which personalise the success of the Hungarian economy and adequately represent it inside and outside our borders.
The 75 years old Videoton Holding Zrt., thanks to its stable financial and market position, grew steadily in the last three years and, after 2011, reached its highest ever turnover also in 2012. The Magyar Brands recognition – which distinguishes Videoton based on profession ground among the bests – means a positive feedback to the company approving the successes and results achieved.

Videoton in Productronica 2013 Fair

productronicaIt was the first time that Videoton exhibited in one of the world’s leading electronic production assets fair, Productronica in Munich, 12-15 November, 2013. The company group – represented by Videoton Holding (electronic production and assembly), VT Mechatronics Kft. (machining and turning of small volume, high complexity parts as well as system integration) and VTES Kft. (focusing on the production of small, medium and high volume sheet metal parts) – introduced itself together with other Hungarian manufacturers in a common Hungarian stand with the support of Hungarian Investment and Trade Agency (HITA).
The 5th largest European EMS company had several pre-agreed, successful meetings in the Fair with potential new partners. The event was, however, the most promising and significant for VT Mechatronics because most of its potential customers participated in the Fair as exhibitors, so the company could get in touch with them easily.
The Fair met the expectations because it remarkably contributed to the fact that the Videoton companies could start year 2014 with successful business transactions.