2011 was also a successful year

Székesfehérvár, 9 December 2011 - The expected income of the Videoton company group before consolidation exceeds 100 billion HUF, which shows a slight increase compared to the result in year 2010. The company group still employees 8000 workers. In 2011 the Hungarian factories increased the number of their employees with about 300 people but – due to the effects of the changes in the market – the Bulgarian subsidiary had to make a cut back in similar extent.

The primary goal in Videoton is organic growth. So the company group started a technology improvement programme which is more intensive than ever before. The value of the investment to be accomplished between 2010 and the end of 2013 is well beyond 5 billion HUF. Out of this more than 3.5 billion HUF has already been executed until 2011.
Though the majority of the investments going on also in 2012 is carried out in the companies dealing with automotive and industrial electronic assembly, which are expected to have the largest result in 2011; actually the whole technical verticality – including plastic injection moulding, metal processing and sheet metal technology – and Videoton’s factory in Bulgaria is also affected. The largest industrial company in Hungarian private ownership finances the investments from its cash flow (not from credit).
Due to its prominently strong financial position and its increased technical and organisational efficiency the Videoton company group strengthened its position in the European market further against its competitors.
It is also a consequence of the above that Videoton extended its businesses with the existing partners and succeeded to get several new customers. The ability that Videoton was able to offer efficient solution to single business cases in certain characteristic industrial segments is to be highlighted especially.
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 subsidiary companies.
In lighting industry the revolutionary breakthrough of LEDs is going on. The company group gained new lighting industry businesses in the field of public lighting, automotive industry and consumer industry. Related to these projects Videoton may produce complete sub-assemblies and, due to its electronic, plastic industrial and assembly technical competences, help its partners in design and NPI effectively.
In the field of household appliances, the company group had a chance also in 2011 to participate in the launching of new products meaning worldwide novelty in their own category. Besides, Videoton was assigned to prepare further novelties too. Beyond all this, one of its largest partners entrusted the company with a task in which the management of the whole development process may be done by Videoton.  With the establishment of this ability Videoton, belonging to the leading contract manufacturers in Europe, achieved its year-long target.
Concerning industrial air technology, Videoton succeeded to introduce Ventifilt Kft, acquired in 2011, in the German market and so to give a new horizon to the operation of the company.
There are more and more potential customers who, hearing about the versatility of the company, use Videoton as a “trouble-shooter”, e.g.: for emergency takeover of work from suppliers not able to operate any more should it be caused by flood in Thailand or financial bankruptcy.

Battery pack assembly in the Marcali site of Videoton

Székesfehérvár - Marcali, 13 July 2011Having a smooth co-operation with Sanyo, considered to be its strategic partner already, VT KEP Kft - specialised in the assembly of battery packs in Marcali, Hungary – is glad to welcome another Japanese owned company, FDK among its customers.

Videoton significantly modified and renovated the buildings of the jeans manufacturing factory operating in the Marcali site earlier. The works resulted in a wholly new and up-to-date plant. During the reconstruction Videoton made most of the production area air conditioned and covered by antistatic floor in order to create appropriate environment for Li-ion battery pack assembly in line with the strict specifications. The company established also the engineering capacity necessary to the new product introduction (NPI). The team not only supports the NPI but also able to design and accomplish production lines, assembly and test assets.
Due to these changes the Marcali site of Videoton has become one of the largest employers in the region, giving job to 200 people today. They assemble mainly Ni-MH battery packs to FDK and Li-ion battery packs to Sanyo, which are used in gardening assets, electric manual tools, wireless phones, and electric bicycles. The battery cells coming from Asia are welded together with the help of contacts and cables, then are put to a plastic housing or fastened by shrinking foil. In case of new applications, as, for example the electric bicycle, a high-tech electronics is also part of the battery pack, which is a further supply potential to Videoton’s PCBA sections.
The customers are fully satisfied with the performance of VT KEP Kft.  Both Videoton and its partners are seriously considering the extension of the co-operation.
The infrastructure established in Marcali allows not only this potential extension but also the transfer of further EMS projects. In order to handle the production peaks of its mother company located in Kaposvár, Hungary (VT ElektroPLAST Kft), the Marcali site manages assembly activities different from its main profile even today.

Videoton EAS Kft. has won another successful business

Székesfehérvár, 6 June 2011 - Videoton Electronic Assembly Services Kft. (VEAS), the Videoton subsidiary involved mainly in production of industrial and automation electronics agreed with the French company Hager on the manufacturing of a full range of electronics products. Videoton, considered to be the most significant local EMS company in the Central Eastern European region, provides a turn-key solution for Hager.

The co-operation between the two companies started in 2008, since that the production of several products has been introduced to the Hungarian factory of VEAS.
Parallel to this, the two companies are successfully working together in the production of further new product families beyond this transfer project.
Following the accomplishment of the transfer VEAS is going to supply the electronic sub-assemblies used in the smart building automation to Hager Group.
This business fits well into the long term strategy of the Videoton company because VEAS intends to strengthen its services and market positions further in the field of manufacturing small volume, high diversity, complex products of high importance.
The success of this Videoton subsidiary company is primarily due to the flexible service of the customers as well as to the high level of service at a competitive price. Still, the recently started investments targeting technology improvement and capacity extension (new Fuji NXT insertion machines, AOI, laser engraving, labelling machines, etc.) in a value of 1 billion HUF will also contribute to the aim of strengthening the company’s position in the EMS market where Videoton is the third most significant European service company.

Videoton gained a foothold also in the supply market of semi-conductor producing machines and medical equipment

Székesfehérvár - Győr, 3 May 2011 -
Recently Videoton Holding acquired direct majority ownership in STS Technology Kft headquartered in Győr. In the future Videoton will manage the company as an integrant part of its contract manufacturing portfolio.

STS Technology signed an important agreement to deliver equipment and modules to the European and Asian factories of one of the leading suppliers of assembly equipment for the semiconductor industries. The other important target market of STS Technology is the production of medical equipment. The first successful co-operation has already started in the production of subassemblies to CT and PET equipment with the quickly developing company Mediso located in Budapest. The planned income of STS Technology for year 2011 exceeds 10 million EUR.
The most important capability of STS Technology is: the single and small series production of high complexity (thousands of components and sub-assemblies) machines and mechatronical equipment using in-house produced precision mechanical parts. The company knows its way very well around the world market of the parts applied, its competitiveness is increased by the local and Eastern European supplier base.
The integration of the STS Technology fits perfectly into Videoton’s strategy: in line with the market demands and with the nature of the region it strengthens Videoton’s position in the field of single and small series equipment production. Several innovative companies develop and have precise mechatronics based equipment produced in Europe. As of today it mainly takes place in Western Europe while the South East Asian production many times does not mean a real alternative due to the distance, consequently Videoton, as a contract manufacturer, sees large extension potential in this field from the printing machines to the laboratory equipment.
Videoton’s vertical integration (production of plastic parts, metal parts, enclosures, electronics control units, etc.) ensures an advantage in the competition compared to the companies making only assembly.

2010 – Another successful year for Videoton

Székesfehérvár, 21 December 2010 - Videoton Holding ZRt. has accomplished a successful year in all aspects: its turnover increased with 18%, its result improved, and the number of employees increased with 580 people at the member companies located in Hungary.

The starting extension of Videoton’s core businesses (automotive industry, industrial electronics, production of small household appliances) following the hard year of 2009 contributed significantly to this favourable result. The turnover of the household appliances – which reduced the most during the crisis – increased the most in 2010. The market segment of the automotive industry – following a significant drop – increased as well. Industrial electronics have shown a consistently continuous increase practically for years. 
Another major component of the successful operation was that the Videoton company group did not lose any of its customers even in 2009, the year of the crises, and could gain new partners in year 2010.
With the acquisition of Ventifilt Kft. and STS Group Zrt. the Videoton group accomplished one of the most important targets of its strategy, and entered into new market segments - renewable energy, industrial air technology – which ensure long term dynamic development for the company group.
The Videoton group started investment programmes in year 2010, the value of which exceeded 2.5 billion HUF. The largest amount was invested into the further development of the electronics assembly technology; it meant about half of the development resources.
The advantages of the Videoton company group, like stable capital, no debt, complex technologies - a value in itself -, presented themselves the most during the financial crisis.
The development reached by Videoton in year 2010 exceeded the one reached by the branch (contract manufacturing) in all aspects.
In 2010 Videoton offered much higher level services to its partners in the field of engineering and development activities then before, so the company became even better in meeting the expectation of the customers according to which the contract manufacturer should accomplish not only the complete manufacturing process of a given product but also a larger and larger part of its development and implementation process.


Videoton Informatics Kft. manufactures fast lane to American company NCR

Székesfehérvár, 2 December 2010VT Informatika Kft. having locations in Székesfehérvár and in Törökszentmiklós, Hungary won a new business in the frame of which the company will produce complex mechanical sub-assemblies to NCR, the US company which is market leader in the field of cash automats. Videoton will be the largest manufacturer of the key components of the fast lane in Europe.

The complex sub-assemblies contain cca. 70 parts and imply almost the whole technological range of VT Informatics Kft (CNC cutting, sheet metal pressing, bending, tox clinching and powder painting). Some of the pressed parts are made in the Törökszentmiklós site of the company, the others are produced in the Székesfehérvár location. “VT Informatics Kft will produce more than 6000 sub-asemblies annually, which results in an income of several million Euro” – told László Kovács, the mechanical business unit manager of the subsidiary company. The serial production is expected to be started in the beginning of December 2010.  The mechanical sub-assemblies will be delivered to Szigetszentmiklós, the Hungarian site of NCR, where the final assembly takes place.
NCR transferred the production of fast lanes from the USA to Hungary in year 2009 in order to meet with the needs of the European markets. In Hungary these new, innovative fast lanes will be placed in the larger supermarkets like Cora, Auchan and Tesco.
The co-operation between VT Informatics and NCR started in year 2007 when VT Informatics received its first order for the production of various metal parts to the different type of cash automats.

Awarding the fast lane project to VT Informatics shows that NCR is satisfied with the services received from the company. It also proves that NCR considers VT Informatics a strategic supplier.

Another German multinational among Videoton's customers

Székesfehérvár, 18 Augustus 2010 - VT Metal Kft concluded a new business with company Möller belonging to Eaton, US. The Videoton company dealing with metal processing and surface treatment started to supply electric parts and accessories to the factory of its new partner located in Holzhausen, Germany. 

"The 16 different types of processed components are built into high-voltage circuit breakers. The new won project ensures close to 400 million HUF turnover to the company through years" - told Dr Norbert Kiss, the managing director of the subsidiary company.
In spite of the crisis the company invested in another Brother TC32 BN-QT processing centre in a value of 50 million HUF related to the new project. This way the company continues the decided technological improvement in the frame of which investments into four up-to-date CNC machines in the value of hundreds of million HUF took place in the past two years. Due to these investments and to the new business the company supplying mainly the automotive industry restrengthened its position in the market of industrial applications.
This new co-operation is an excellent proof for the fact that Videoton consciously improves its competences in the field of electric subassemblies. Up to now Videoton has manufactured among others low-voltage circuit breakers, switches, electronic controllers to various multinational companies like ABB, Schneider, Legrand, Kopp, Eaton, Hager but via this project the company stepped into the market of high-voltage applications too.