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Successes and challenges at Videoton

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Celebrating its 80th anniversary this year, Videoton Group reached a new record in the first 8 months of 2018 thanks to increasing its turnover by 11% compared to the same period last year.
By the end of 2018, the turnover of our manufacturing subsidiaries is expected to triple compared to what they had 10 years ago when the global financial crisis broke out.

Based on its turnover, Videoton Group continues to be among the TOP 5 contract manufacturers headquartered in Europe while being in TOP 3 based on value-add figures.
The profitability competitiveness, technological complexity and service level of the group are considered outstanding even on a global level.

At the same time this is also the most challenging year for the group. Due to the lack of manpower, our growth had to be realised with a practically unchanged headcount.
The number of employees at our manufacturing subsidiaries was 7.250 at half-year. Together with our service companies the figure was 10.700 in total.
We were able to realise our results with a wage increase that was higher than the average in the National Economy.

It further increased the challenges of this year that Videoton is realising the biggest investment of its history. The total amount of investments will exceed 14 billion HUF in 2018 which is 2,5 times more than the typical figures of the previous years.

All investments are continued to be financed from Videoton’s own capital.
The investments are linked to our core activities & existing businesses, largely concerning the fields of Industry 4.0, integrated ERP and digitalisation. They are also expected to establish a solid base for the development of the Group in the coming decade.

Outstanding Results in 2017

konszolidalt arbevetel2017 is the 8th consecutive year when Videoton booked record revenue.

The revenue increased by 10%, which - according to preliminary estimates - may exceed 550 million EUR.

Gross margin increased proportionally. Progress was spectacular in all market and vertical segments. The headcount of the manufacturing companies increased by cca. 400 until November 2017. Thus, the number of Videoton employees by now is above 10 500, out of which over 6 300 are employed in the domestic production.

As a result of the outstanding financial stability, technological diversification and intense investment program, Videoton's competitiveness continues to improve resulting in substantial new program awards in all major segments: the automotive industry, industrial applications and small household appliances.

New electronics assembly hall is under construction in Szekesfehervar

honlapra foto alapkoEMS subsidiary of VIDEOTON Group, VIDEOTON EAS Kft. staged the official foundation laying ceremony of its new prodaction facility in December 2017

Videoton Group is one of the most significant player in European ownership among the Electronic Assembly Services (EMS) companies, being in the TOP 30 largest firms of the industry worldwide. The 2 specialised EMS subsidiaries of the Group – VIDEOTON Autóelektronika Kft. which is manufacturing solely automotive electronics products and VIDEOTON EAS Kft which is specialised mainly in diverse industrial applications – manufactured 1.800 different types of products with a staff of 2,200 people on a surface of 43,000 sqm, inserting over 3 billion components on 30 SMT lines in a volume of more than 60 million pcs in 2016.

As market demands continue to increase, both companies are in need of further capacity expansion together with the increase of the production area. For this reason, a new modern assembly hall on a surface of 20,000 sqm and with a full infrastructure will be constructed for VIDEOTON EAS Kft. at the central Szekesfehervar site of Videoton. While the vacated area of the existing assembly building will give VIDEOTON Autóelektronika Kft. the opportunity to expand further.
Along with the assembly area of 8,500 sqm a significantly automatized warehouse of 4.500 sqm will be also established in the new hall. The total value of the building investment will be at ca. 5.5 billion HUF out of which 500 million HUF will be dedicated to the warehousing infrastructure. The technological investment containing new SMT lines, wave and selective soldering, testing equipment as well as assembly stations will amount to ca. 1.5 billion HUF only in case of VIDEOTON EAS Kft. in the next 2 years.

The investment will be financed fully by Videoton which is again a good example for the financial strength of the contract manufacturing company. As a result of the expansion – which is going to be completed by the end of 2018 – the current staff of 770 people will reach 1,000 at VIDEOTON EAS Kft., while their turnover will grow from the current 70 million EUR to 100 million. Furthermore, VIDEOTON EAS Kft. producing PCBA’s, electronic modules and complex final assembled products (kivenném), can strengthen its position on the market not only by fulfilling the increasing demand of its existing customers but by building up new potential business partners.

Thanks to its state-of-the art machine park, technological diversity and high flexibility, VIDEOTON EAS Kft. provides complex and competitive services to customers ranging from large global industrial groups through traditional medium-sized companies to innovative start-ups in Industrial, Railway, Household appliances and Building Automation segments.


automotivebatterypackThe VIDEOTON subsidiary specialized in the manufacturing of small household appliances, industrial products and battery packs is now manufacturing battery packs for the automotive industry, too. The subsidiary in Kaposvar supplies a new innovative product for a German Tier-1 Automotive company. This Li-Ion battery pack is part of an e-call system used in passenger cars. VIDEOTON did not only carry out the sampling process but also contributed significantly to the product’s success through its DfX services. Furthermore, the industrialization of the product was also realized completely by the local engineering team.

Our engineers proposed several improvements on the prototype in terms of manufacturing and assembly. Following that, they also designed the plastic housing of the battery pack during which they could utilize the product optimization possibilities of the in-house 3D printer and 3D scanner. The assembly line that is used in serial production and consists of several automatic assembly & testing stations was designed and manufactured by the production engineers of our subsidiary. Furthermore, they also developed a special traceability system for this project. This is also the first time that Kaposvar uses laser welding in its operation.

It has also contributed greatly to the success of the project that the project was able to take advantage of the integrated manufacturing structure of VIDEOTON Group. The ECU of the battery pack is supplied by VT Automotive Electronics Kft. which is fully specialized in the manufacturing of automotive electronics (PCBAs, modules). While for them, the ICT and functional test equipment was provided by VT-ASYST, the VIDEOTON subsidiary specialized in the design and manufacturing of special purpose machines.

VIDEOTON has been manufacturing battery packs in Kaposvar and Marcali for almost 20 years (with now close to 300 people) for a wide range of different markets such as Consumer, Power Tools, E-bikes and Industrial applications, providing full-scale manufacturing and DfX services for customers. 


mars drinks masterbrand logoklixmarscabinetMars Drinks, the British subsidiary of one of the most prestigious global food giants signed a contract with 2 of Videoton’s subsidiaries at the same time. One of the most important elements of the drinks vending machines, the PCBA set will be manufactured by VIDEOTON EAS Kft., the non-automotive EMS daughter company of the Group at its central Szekesfehervar plant.

The complete frame, the set of built-in metal sheet parts and assemblies will be supplied to the UK plant of the customer by VTES Kft which is specialised in stamping, powder coating and assembly.

After starting the cooperation by transferring existing models, the engineering team of VTES Szekesfehervar provided DfX services to the business partner during the industrialisation of the new models. As a result the new product family has a more efficient manufacturing process and a more competitive cost level.

This business case shows perfectly how attractive the integrated manufacturing services of Videoton Group can be for its customers. Videoton is in the position to supply parts, assemblies, modules in several commodities for the same product at the same time, improving its competitiveness.


DeloitteFor the first time in the company’s history, Videoton has been named as one of Central Europe’s 500 biggest companies.

The prestigious “Central Europe TOP 500” list published every year by Deloitte covers countries such as Poland, Czech Republic, Slovakia, Slovenia, Hungary as well as the Baltic states and certain parts of Southeast Europe. Companies registered in these countries are ranked based on their revenues and are categorized in 7 different industries such as Public Sector, Life Sciences & Healthcare or Energy and Resources. The 2016 edition showed Videoton’s first-ever inclusion on the list. With its 500 million € revenue in 2015, Videoton was named #473 in total and #120 in its own category, Manufacturing. Among the manufacturing companies registered in Hungary, Videoton is the only one on the list which is completely Hungarian-owned and not a local subsidiary of a multinational group or a company being in foreign majority ownership.

A traditional company of Hungary being privately owned for 25 years now, Videoton has had an impressive growth in recent years almost doubling its revenue since 2009. Videoton expects to maintain momentum this year as well, forecasting 5-10% increase for 2016. Although all activities, technologies and subsidiaries of the vertical integrated industrial group took part in this success, Videoton’s EMS subsidiaries were undoubtedly the biggest contributors. With now 28 SMT lines and state-of-the-art operations in Hungary and Bulgaria, Videoton has been able to strengthen its position as one of the largest European-based EMS providers in recent years further.

VIDEOTON HOLDING’s revenue increased by 15% in 2015

vt2The VIDEOTON Group increased its revenue by more than 15% compared to 2014, exceeding 500 million EUR. The manufacturing subsidiaries of the group achieved more than yearly 10% growth in total for the 6th consecutive year. As a result, the group’s revenue practically doubled by 2015 compared to 2009. In 2015 the biggest growth came from the Group’s electronics production and assembly activities. The revenue of Videoton’s main core activities increased by more than 21%. The Automotive, Industrial Electronics and Household Appliances industries took equally a share in this growth. Videoton’s markets, technological background and competitiveness are stable while its capital strength is outstanding, being now above 295 million EUR.

The number of employees increased by 700 people in 2015 thus exceeding 10,000. Besides the approximately 6 million EUR worth of technological investment, the group spent more to the expansion and development of certain areas than usual. Increasing the quality of work environment, offices and changing rooms was a priority.

The various changes in the world – China getting more expensive, low interest rates, cheap energy and raw materials – created an exceptionally favourable situation for Hungary while the Hungarian economic environment ensured stable taxes and exchange rates. It is the totality of these elements that resulted in the high growth rate of Videoton for whom the lack of manpower may appear as a new obstacle in the future.

Videoton is the largest Hungarian industrial group in local private ownership and also one of the world’s TOP35 EMS companies that provides manufacturing and manufacturing-related services to industrial companies. The Székesfehérvár-based company has 9 locations in Hungary and 1 in Bulgaria (Stara Zagora).