automotive industry hungary - hipa...automotive industry in hungary 15 a long with many discoveries...
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HUNGARYIN
AUTOMOTIVE INDUSTRY
OPENING DOORSFOR YOUR INVESTMENT
ABOUT HUNGARY
AUTOMOTIVE INDUSTRY
LABOUR FORCE
INNOVATION
SUPPLIER NETWORK
HUNGARIAN INVESTMENT PROMOTION AGENCY (HIPA)
6
14
30
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Published by the Hungarian Investment Promotion Agency, HIPA
All rights reserved © HIPA, 2017www.hipa.hu
Automotive Industry in Hungary 5
70%62%
51%
40% 39%
30%
HUNGARY Source: wiiw FDI Database
POLAND ROMANIA SLOVENIACZECHREPUBLIC
SLOVAKIA
Inward FDI stock in 2015 (percentage of GDP)
HUNGARY
ABOUT HUNGARYMAIN FIGURES
(Source: *HCSO = Hungarian Central Statistical Office)
AREA
93,022 km2
FORM OF GOVERMENT
PARLIAMENTARY REPUBLIC
TIME ZONEGMT + 1 HOUR
CURRENCYFORINT
(HUF)
GDP (PPS)€ 194,248 MILLION
(2015)
UNEMPLOYMENTRATE5.1 %
(2016, HCSO)
INFLATION0.4%
(2016, HCSO*)
MEMBERSHIP IN INTERNATIONAL ORGANISATIONS
EU, UN, OECD, WTO, NATO, IMF, ECEU member: since 2004
CLIMATETEMPERATE
(similar to the rest of the continental zone)
RISK OF NATURALDISASTERSVERY LOW
OTHER MAJOR CITIES
Debrecen (203,059)Szeged (162,621)Miskolc (159,101)Pécs (145,347)Győr (129,568)
CAPITALBUDAPEST
1,759,407(as of January 2016)
POPULATION
9,830,485(as of January 2016)
Automotive Industry in Hungary 7
Euro
pean
Com
mis
sion
, REG
ULA
TIO
N (E
U) N
o 13
16/2
013
O.J
. L34
8 -
20/
12/2
013
TEN-T CORE CORRIDORS CROSSING HUNGARYMEDITERRANEAN * ORIENT-EAST/MED * RHINE-DANUBE
ABOUT HUNGARYLOGISTICS & INFRASTRUCTURE
COMMERCIAL CORRIDORS & INFRASTRUCTURE
LEGEND
existing
planned
MOTORWAYS IN HUNGARY M1: Budapest – AUTM3: Budapest – RO/UKR/SK
M5: Budapest – SRBM6: Budapest – PécsM7: Budapest – SLO
EXTENSIVE ROAD & RAILWAY
TRANSPORTATION NETWORK
HIGHLY DEVELOPED LOGISTICS &
TELECOMMUNICATIONS INFRASTRUCTURE
AT THE CROSSROADS OF THREE MAIN EUROPEAN
TRANSPORTATION CORRIDORS
3
“The initial evaluation of ten countries resulted in a short list of three countries, in which we analyzed several regions and cities. Finally, we made a decision for Hungary and more specifically in favor of Miskolc.Hungary was chosen as our investment location among other reasons due to the availability of a developed infra-structure, logistics conditions, strong industrial traditions and background, as well as due to the availability of skilled workforce and an investor-friendly environment. Also, the renowned technical university of Miskolc as well as the avail-ability of technical and vocational schools played a crucial role while considering our long term plans and strategy.”Kersten Bachmann, Director, EMEA Operations AirbagTAKATA Safety Systems Hungary Ltd.
Automotive Industry in Hungary 9
ABOUT HUNGARYBUSINESS ENVIRONMENT
INV
ESTM
ENTS
IN F
OCU
S
In order to Improve the
busIness clImate the hungarIan government...
...has modified its taxation and incentive system related to R&D
activities to make Hungary the innovation
hub of CEE.
...has signed more than 70 strategic partnership
agreements giving companies fast access to
the Government.
...further improved the practice-based dual
education system built on industry needs.
...was the first to implement a Digital
Nation Development Program in the CEE
region.
…has created the most competitive CIT in the
EU with 9 % flat rate.
...has introduced a new incentive scheme supporting tech-
intensive investments.
...has introduced its unique economic development
plan based on Industry 4.0 requirements.
...is committed to further reduce taxes on
employment.
11
2.BUDAPEST
IS THE
BEST CITYON EARTH
(Condé Nast Traveler,2015)
EXPATS LIKE HUNGARYBudapest is a city full of surprises and
wonders, with its lively centre, pretty parks,
majestic river, tall church spires, and lavish
spas. One of the most exciting cities in the
world, Budapest is full of secrets, hidden spots
to explore, and old favourites to revisit. This is
the city where being bored is not an option.
According to TripAdvisor, Budapest is offer-
ing the best price-value ratio in the world.
According to Condé Nast Traveler readers,
Budapest is the second best city on earth.
INTERNATIONAL SCHOOLSExpatriates looking to stick with the curricula of their home countries can choose from a range of private international schools for their children. There are also many English, German or French public and private pre-schools for children aged from three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in a foreign language at universities too.
ABOUT HUNGARYQUALITY OF LIFE
EXPLORE THE COUNTRYSIDEHungary’s diverse countryside offers a wide range of outdoor activities: 11,000 kilometres of hiking routes; more than 2,500 kilometres of cycle paths; 22 golf courses; ten national parks; and many protected nature reserves for those in love with fresh air. The protected Puszta-region, the Great Plain, the romantic Danube Bend with its historic sites, and pretty baroque towns, such as Eger, attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort.
Automotive Industry in Hungary 13
#1ARIA HOTEL
BUDAPEST
HOTEL IN THE WORLDBY TRIPADVISOR 2017
Travelers' Choice Award
15Automotive Industry in Hungary
Along with many discoveries and inventions, Hungarians have contrib-uted to the spread of the automobile
across the world.
One of the earliest examples of this was during the reign of King Matthias Cor-
vinus in the 15th century, with the wheel-wrights of Kocs in Komárom county and their construction of a horse-drawn vehicle with steel-spring suspension. This “cart of Kocs” as the Hungarians called it (kocsi szekér) soon became popular all over Europe and lent its name to the English word “coach”.
Organised automobile manufacturing has been present in Hungary since 1905,
when János Csonka, commissioned by the Hungarian Royal Post created his mail trans-port car in the training centre of Budapest University of Technology.
József Galamb with others together framed the concept of the famous Model-T Ford.
His intention was to create a car that would be cheap and simple to manufacture. In this model he applied technical innovations, such as the planetary gear and the removable cylinder head. In 1913, with his lead, the Ford Factory switched to serial production on its production lines. This resulted in the Model-T becoming the world’s first mass produced affordable car. During its 20 year production, over 155 million units were manufactured.
János Csonka and Donát Bánki constructed the first petrol vaporizer, (carburet-
tor), which they patented in February 1893. János Csonka was the first to utilise the use of aluminium in the manufacturing of engines, he also developed controlled inlet valves and high voltage magneto ignition for petrol engines.
THE CENTURIES-OLD HISTORYOF THE AUTOMOTIVE INDUSTRYIN HUNGARY
15th century 1905 19131893
AUTOMOTIVE INDUSTRYHISTORY
15th century
17
THE CENTURIES-OLD HISTORYOF THE AUTOMOTIVE INDUSTRYIN HUNGARY
Automotive Industry in Hungary
Béla Barényi as a constructor for Daimler-Benz, established the basic methodolo-
gies of passive safety in vehicles. Thanks to his activity, we have a crash zone, a non-deforming passenger compartment, and the telescopic collapsing steering column in modern cars. In the late forties, he introduced safety crash tests to the automotive industry.
1939 1957
Ferenc Anisits (Dr.) played a hugely sig-nificant role in the development of the
first eight-cylinder, direct-injection diesel engine and headed up the BMW Diesel Development Centre in Steyr, Austria. Under his leadership the electronically con-trolled diesel injection system was intro-duced in 1993, for which he was awarded Ernst Blickle Innovation Award in 1995.
Ferenc Pavlics was a technical director for General Motors, later participating in the
formation of the Lunar Roving Vehicle in the Apollo Space Programme.
1993
AUTOMOTIVE INDUSTRYHISTORY
László Palkovics is a Professor of Budapest University of Technology and Economics
and the Centre of Competence. He was lead-ing a 100-engineer R&D unit in Budapest, and coordinate the worldTheir wide range pre development activities of Knorr Bremse AG. In his engineering career, he has been involved in vehicle dynamics, controlled vehi-cle sys tems, modeling techniques, hybrid vehicle drives and safety systems. Now being as a state secretary he is dedicated in the development of new generations of engi-neers for the future.
The international career of Miklós Kovács was straightforward. Initially, after com-
pleting his studies at design college, he got a job at Audi as a scholarship recipient. He took part in the preparation of studies on the Audi A8 and Audi A4 models, and now he is the designer of the current Hyundai models. In 2011, he received the award of one of Europe's most prestigious design competitions, the Best of the Best Award of the German Red Dot Design Award.
Pál Lukács (Phd) has achieved significant results in the area of research and develop-
ment, for instance in the area of garage diag-nostic tool development of brake systems for heavy trucks during the three years spent at the Knorr-Bremse development institute in Budapest. In recent years, he has been work-ing on the development of technologies for the recovery of organic materials from car wrecks and electronic waste, and is currently engaged in projects on technological innovation in the area of recycling.
now
19
THE CENTURIES-OLD HISTORYOF THE AUTOMOTIVE INDUSTRYIN HUNGARY
Automotive Industry in Hungary
AUTOMOTIVE INDUSTRYHISTORY
OVER 40 OF THE TOP 100GLOBAL OEM PARTS
SUPPLIERS
MORE THAN 700SUPPLIERS IN THE AUTOMOTIVE INDUSTRYIN
HU
NG
AR
Y
The automotive industry in Hungary registered a 15.0% growth between 2010 and 2016.15.0%
Production value of the industry amounted to € 25.3 billion in 2016.
€25.3 BILLION
The automotive industry accounts for 30.1% of manufacturing industrial output in the first eleven months of 2016.
30.1%
The number of people employed in the automotive industry was 155,508 in the 2016 Q4.155,508
92%OF THE AUTOMOTIVE INDUSTRY'S OUTPUT
IS EXPORTED
THE AUTOMOTIVE INDUSTRY GIVES
20% OF HUNGARY’S TOTAL
EXPORTS
MAIN EXPORT MARKET
EU 87%
Over 520,000
PASSENGER CARS WERE MANUFACTURED
IN HUNGARY IN 2016
4 OEMsHAVE ALREADY
CHOSEN US (AUDI, MERCEDES,
OPEL, SUZUKI)
1071EUR/MONTH
AVERAGE GROSS EARNINGSIN THE AUTOMOTIVE INDUSTRY
(HCSO, 2016)
Automotive Industry in Hungary 21
AUTOMOTIVE INDUSTRYFACTS & FIGURES
YOU CAN COUNT ON THE QUALITY LABOUR FORCE ACROSSHUNGARY
"We decided to establish a production unit in Hungary 24 years ago. Since then AUDI HUNGARIA Zrt. has become the biggest engine factory and one of the most modern car production plants of the world. It employs 11,600 people. The central location of Hungary, the advanced infrastructure, the stable political and economic conditions of Hungary as an industrial site and skilled workforce all contribute to the success of our company. We are at home in Hungary.”Peter Kössler, Chairman of the Board of Manage-ment, AUDI HUNGARIA Ltd.
AUDI HUNGARIA Ltd.
LOCATIONGyőr
FOUNDATION1993
NUMBER OF EMPLOYEES
11,600
PRODUCTSTT Coupe /Roadster,
A3 Sedan /Cabriolet
CAR PRODUCTION
122,975(2016)
ENGINE PRODUCTION
1,926,638(2016)
Did you know that…...the world's largest engine factory is in Győr, Hungary?
Automotive Industry in Hungary 23
AUTOMOTIVE INDUSTRYOEMs
"I believe that Hungary, and especially its automotive supplier base, has an outstanding potential for development. As to our car plant in Esztergom, it is located in the heart of the country, but it is also close to the capital city of Budapest which is the largest Hungarian city with the largest pool of professional talent. The constantly developing infrastructure of our country allows for the Suzuki products, such as Vitara, an easy access to the European and global markets. Our talented, dedicated and hard-working innovation-minded personnel enable us to provide our customers with world-class cars which have the ’Made in Hungary’ plaque on them while embodying the values of Hungarian talent alloyed with state-of-the-art Japanese technology."Dr. László Urbán Deputy CEO, Magyar Suzuki Corporation
MAGYAR SUZUKI CORPORATION(SUZUKI MOTOR CORPORATION)
LOCATIONEsztergom
FOUNDATION1991
NUMBER OF EMPLOYEES
3,100
PRODUCTSSX4
S-CROSS Vitara
CAR PRODUCTION
211,000(2016)
Did you know that…...Suzuki Vitara is the winner of the compact crossover category according to The Sunday Times' Top 100 cars of 2016? Vitara is produced exclusively in Esztergom, Hungary.
AUTOMOTIVE INDUSTRYOEMs
Automotive Industry in Hungary 25
“The past five years have been a success for Mer-cedes-Benz Kecskemét plant in Hungary. Thanks to the high-quality products and to the well-trained labour force the car production, started in 2012, has written a great success story. We are particularly proud to say that two of the three Mercedes-Benz models made in Kecskemét, called the CLA and CLA Shooting Brake are produced exclusively for cus-tomers around the world. In 2016 we established the fundamentals of the future success. Mercedes-Benz announced to invest around 580 million euros in the expansion of capacity and the technological upgrade of the existing facility for the production of compact cars at the site. The new generation of compact cars will also be produced in Kecskemét. In addition, we will invest 1 billion EUR in building a second factory until the end of the decade to create 2500 new jobs. Our series of investment is a clear sign of our com-mitment to Hungary, the government and the leaders of Kecskemét are key partners in our endeavors.We believe in quality work, that is the most important aspect of our work, and for that we rely on an effec-tive and loyal employee team in Hungary.”Christian Wolff – CEO, Mercedes-Benz Manufacturing Hungary Ltd.
MERCEDES-BENZ MANUFACTURINGHUNGARY Ltd.
LOCATIONKecskemét
PRODUCTIONSTART
2012
NUMBER OF EMPLOYEES
>4000
PRODUCTSB Class,
CLA, CLA SB
CAR PRODUCTION
>190,000(2016)
Did you know that…...CLA and CLA Shooting Brake are made solely in Kecskemét, Hungary?
AUTOMOTIVE INDUSTRYOEMs
Automotive Industry in Hungary 27
“After 25 years and a total investment of over 1.5 billion Euros, Opel Szentgotthárd builds multiple engine families including the latest applications coming from our new Flex Plant. We also continue to invest into the future – in 2015 we opened our new Opel Knowledge Center that will help educating the next generation of qualified professionals.Hungary is important for us, not only because of our manufacturing presence – Opel has the largest car park with over 475 000 cars running on the roads and the brand secured the number one position on the passenger car market 5th year in a row. I trust we have everything in place to look forward to another success-ful 25 years in Hungary.” Grzegorz Buchal, Managing Director, Opel Szentgotthárd Ltd.
OPEL SZENTGOTTHÁRD Ltd.(GENERAL MOTORS)
PRODUCTSengines,
cylinder heads,transmissions
ENGINE PRODUCTION
629,139(2016)
LOCATIONSzentgotthárd
FOUNDATION1991
NUMBER OF EMPLOYEES
1,600
GYŐR Audi Hungaria
SZENTGOTTHÁRD Opel
ESZTERGOM Magyar Suzuki
KECSKEMÉT Mercedes-Benz
THEY HAVE ALREADYCHOSEN US!
Did you know that…...the new 2016 Astra’s power is delivered exclusively by the newest-generation diesel and gasoline engines which are produced at Szentgotthárd, Hungary?
Automotive Industry in Hungary 29
AUTOMOTIVE INDUSTRYOEMs
“DENSO Manufacturing Hungary Ltd. currently has - including rented associates - more than 5,000 employees so we can say that we are one of the biggest employer of our Central-Transdanubian region. The cause for this great performance is that in Hungary we found a real good place to invest and to develop our business. The central location of Hungary on the con-tinent ensures continuous economical development to the country. Beside that the Hungarian workforce have real good features as the people are clever, hardwork-ing and the school system gives a sincere and useful knowledge on each level. I believe that Hungary was a wise choice for our mother company as in 2017 DENSO celebrates its 20th year of operation in Hungary and the company plans to stay in the country for much more decades."Kato Yukihiro, President of DENSO Manufacturing Hungary Ltd.
“Looking back to this 25 years here in Hungary, we were really successful. We had organic growth and we also had some greenfield investments and made some acquisitions. These are of course resulted by our motivated employees who are really engaged and drived for the result. Each of our Hungarian locations is working together with different universities, so we are involved in this dual education system, mostly on uni-versity level, but on middle education level as well. Our Szeged location is managing some technical schools, and our Veszprem location has the most successful cooperation with Pannon University: they have special subject driven and trained by Continental.” Mihály Nagy, Managing Director Continental Group Hungary
YOU CAN RELY ON GLOBALLY ACKNOWLEDGEDHUMAN CAPITAL AT A REASONABLE COST
8
32.5
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LIT
HU
AN
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OZO
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LAT
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HU
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AR
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FIN
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FR
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DO
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IRE
LAN
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Sou
rce:
EU
RO
STAT
COMPETITIVE LABOUR COSTSIN THE INDUSTRY
Total hourly labour costs, € (2015)
10203040
Automotive Industry in Hungary 31
LABOUR FORCEPRODUCTIVITY
Hungary has adopted the well-working GERMAN MODEL
in medium & higher education
CURRICULUM is customized
to company needs
Long term market-ready WORKFORCE
DUAL EDUCATION
What do we do to make the required labour force
available for you?
THE MEETING POINT OF CORPORATE CULTURE
& EDUCATIONAL POTENTIAL
TRAINING of young engineers on internationally
approved standards
Participation on real INDUSTRIAL
PROJECTSduring studies
Participation in STUDENT
COMPETITIONS
CLOSE COOPERATION
between corporate partners
& universities
CUSTOMIZED CURRICULUMS & DEPARTMENTS
strongly linked to the actual needs of
the industry
The cooperation of academia and the corporate players resulted in a customized education at the Universities of
Győr, Veszprém, Miskolc, Kecskemét, Debrecen.
Automotive Industry in Hungary 33
LABOUR FORCEDUAL EDUCATION SYSTEM
There will be large numbers of students leaving the
higher education who can immediately enter the world
of work, without years of education and additional
financial investment. It will be important to reduce the
drop-out rates, to encourage practice-oriented training and to ensure real labour market-
oriented diplomas.
In the 2016/2017 academic year, higher education in
the dual form in Hungary is provided in the agricultural, economic, engineering and
information technology areas, thus highly qualified young
graduates will continue to be available for companies.
In the 2016/2017 academic year 24 higher education institutions
offered dual education prog-rammes. The number of
partner organisationsincreased to almost
600.
At the end of 2016 the number of students who were
engaged in vocational dual training was over 50,000. Until 2018 it is expected to
increase to
70,000.
+Great number of
available productive labour with competitive costs
58.72
HU
NG
AR
Y
SO
UT
H K
OR
EA
ITA
LY
IND
IA
FR
AN
CE
RU
SS
IA
Sou
rce:
EF
Eng
lish
Pro
ficie
ncy
Inde
x 20
16
EF English Proficiency Index 2016 (%)
SLO
VA
KIA
SPA
IN
605040302010
PROFICIENCY ENGLISH LANGUAGE SKILLS
↗ 95% of fresh graduates has English language skills↗ 2nd most popular foreign language: German (71%)↗ Followed by: French (18%), Russian, Italian, Spanish↗ All degrees include foreign-language certificate
and computer skills
CZ
EC
H R
EP
UB
LIC
PO
LAN
D
JAPA
N
CH
INA
ME
XIC
O
TU
RK
EY
Automotive Industry in Hungary 35
LABOUR FORCELANGUAGE SKILLS
LABOUR FORCEDUAL EDUCATION SYSTEM
SZEGEDNNG
KECSKEMÉTKNORR-BREMSE
PHOENIX MECANO
KECSKEMÉTKecskemét College
MAJOR AUTOMOTIVER&D CENTRES IN HUNGARY
DUNAVARSÁNYIBIDEN
EGERBOSCH
BUDAPESTAVL
BOSCHNNG
KNORR-BREMSETHYSSENKRUPP
VESZPRÉMCONTINENTAL
VALEO
VESZPRÉMUniversity of Pannonia
SZOMBATHELYEPCOS
SZOMBATHELYEPCOS
MISKOLCBOSCH
MISKOLCUniversity of Miskolc
DEBRECENNI
Great innovation capacity available.
Great research and development
potential.
Dedicated to innovation:amount of Government
incentives has been doubled.
MAJOR R&D INSTITUTIONS
WITHR&D CAPACITY
GYŐRAUDI
GYŐRSzéchenyi István
University
MAKLÁRBOSCH
SZEGEDUniversity of Szeged
TATABÁNYAEdutus College
BUDAPEST• Bay Zoltán Nonprofit Ltd. for
Applied Research• Budapest University of
Technology and Economics• Hungarian Academy of Sciences
– Institute for Computer Science and Control
• Jedlik Ányos Cluster• Óbuda University
Automotive Industry in Hungary 37
INNOVATION
"Thyssenkrupp is a technology leader in the field of steering systems and a major innovative partner of the automotive industry worldwide. The thyssenkrupp Competence Center in Budapest has developed a complex mechatronic system that includes both software and hardware. This enables automotive OEMs to give their cars a unique and precise handling feel for the steering wheel. Further advantages of our systems are the significant decrease of fuel consumption of passenger cars and also enabling the integration of special functions like side wind compensation or parking assistant into vehicles. Innovation, though crucial, is not enough today. In case of such a safety critical equipment, the key to success in automotive R&D is how one transforms innovative ideas into products that are appreciated around the world. This is what our Competence Center excels in. In order to leverage our know-how in steering systems in Budapest, we are currently building a plant as well in Hungary where the production of steering systems and, in addition to that, camshafts will take place. The latest milestone in the history of thyssenkrupp in Hungary is the announcement in February, 2017, that thyssenkrupp Springs and Stabilizers selected Eastern Hungary for their new plant. With these ongoing developments, thyssenkrupp is looking forward to meeting the challenges of the future."Marc de Bastos Eckstein, General Manager, thyssenkrupp Presta Hungary
THYSSENKRUPP PRESTA HUNGARY LTD.
Young and talented engineer pool.
Strong cooperation with universities.
Nearly
500 engineers.
Innovations to ensure reducing the car pollutant
emission worldwide.
Thyssenkrupp’s Competence Centre for the development
of electromechanical steering systems is located
in the capital ofHungary, Budapest.
Developing unique products for the
steering business of the group.
Automotive Industry in Hungary 39
INNOVATION
AVL AUTÓKUT ENGINEERING LTD. / CASCADE ENGINEERING EUROPE / CLARION / CONTINENTAL AUTOM. / CONTITECH FLUID / DRAEXLMAIER / EMT / EXCEL CSEPEL / FESTO / FLEXTRONICS / GE LIGHTING / IBIDEN / LEAR / MGM / MICHELIN / MONO-IPOLYFABRIC / PEMÜ / SCHWARZMÜLLER / SEMCON / SIEMENS VDO / TAURIL / THYSSENKRUPP / TOYO SEAT / VOGEL SITZE / WEBASTO / GENTHERM / ZOLLNER
CENTRAL HUNGARY
ARCELORMITTAR / AUTOLIV / B.O.S. / BPW / DANA / DELPHI / EDAG / ERBSLÖH / EURO EXEDY / EURO ELZETT / FEDERAL MOGUL / FLEXTRONICS / GYŐRI PLAST / HIRSCHLER / KRAVTEX / LUK SAVARIA / MAGNA STEYR / NEMAK / RÁBA / REHAU / REKARD PRODUKT / VERITAS / SMR / VOGEL UND NOOT / WUPPERMANN
WESTERN TRANSDANUBIA
AJKAI ELEKTRONIKA / ALBERT WEBER / ALCOA / ALUMETAL / AGC GLASS HUNGARY / BENTELER / BORG WAGNER / BOURNS / BRIDGESTONE / COLOPLAST / CONTINENTAL AUTOM. / DENSO / DIAMOND ELECTRIC / EXEDY DYNAX EUROPE / GEDIA / GESTAMP / HANKOOK / WILD MANUFACTURING / JOHNSON CONTROLS / KARSAI PLAST / KIRCHHOFF / LE BÉLIER / MAGYARMET / MUSASHI / PLASTICOR / PLASTIMAT
CENTRAL TRANSDANUBIA
AKZO NOBEL COATINGS / APOLLO TYRES / TISZA AUTOMOTIVE / BOSCH / CSABACAST / DELPHI / DELTA-TECH / EXIR / FIRTH RIXSON / GIBBS / HI-LEX / KNAUS TABBERT / KOVÁCS / LEAR / LEONI / MITSUBA / MODINE / PREC-CAST / JOHNSON ELECTRIC ÓZD / SALGGLAS / SHINWA / STANLEY ELECTRIC / TAKATA / TECHNOPLAST / ZF
NORTHERN HUNGARY
CAROFLEX / COLOPLAST / EAGLE OTTAWA / EISMANN / FAG (SCHAEFFLER) / FAURECIA / JOPP INTERIOR / F.SEGURA / HAJDU AUTÓ / HALDEX / HÜBNER / AUNDE / JÁSZ-PLASZTIK / LE BÉLIER / MICHELIN / SINTEX-NP / PHOENIX-MECANO
NORTHERN GREAT PLAN
BROSE / CONTITECH FLUID / CONTITECH RUBBER / CSABA-METÁL / ECKERLE / EMIKA / EUROFIT / FREUDENBERG / HIRSCHMANN / HBPO / JOHNSON CONTROLS / KALOPLASTIC / KNORR-BREMSE / KUNPLAST-KARSAI / LINAMAR / MAGNA EXTERIORS / PATA / PHOENIX MECANO / THYSSENKRUPP / ZORGE
SOUTHERN GREAT PLAN
BHG / CABTEC / HARMAN / RATIPUR / INTERPLUS
SOUTHERN TRANSDANUBIA
Szeged
Kecskemét
Debrecen
Nyíregyháza
MiskolcEger
HatvanGyőr
Szombat-hely
Székesfehérvár Dunaharszti
Budapest
Veszprém
Pécs
RÁBA
VALEODENSO
VISTEON
BOSCHTAKATA
BOSCHZF
BOSCH
CONTINENTAL
HARMAN
KNORR-BREMSEPHOENIX MECANOSCHWARZMÜLLER
BPW
FAGNATIONAL
INSTRUMENTSMICHELIN
AVLBOSCH
THYSSENKRUPP
MAJOR AUTOMOTIVE SUPPLIERS IN HUNGARY
MORE THAN 700SUPPLIERS IN THE AUTOMOTIVE INDUSTRY IN HUNGARY
“The BorgWarner turbocharger plant in Oroszlány was originally built to serve one of the most important Audi factories located in the region, but it soon began to manufacture the products itself as well and broaden its customer portfolio. From the very beginning, the company has seen strong growth, doubling its turnover year by year. BorgWarner have been committed to make this growth possible along the following reasons.• Investments creating workplaces and providing opportunities for the economic development of different regions have highly been encouraged by Hungarian Government incentives. • BorgWarner has an excellent customer footprint in Hungary.• Hungary and the region itself have an adequate industrial culture; well trained in the automotive industry. There are several technical universities in Hungary and salaried workforce can be hired from countrywide. • The region itself has also been providing available labor force; both white collars and blue collars. • Hungary’s advantage is also its great logistics opportunities and infrastructure.”Attila Bogár, General Manager of BorgWarner Oroszlany Ltd.Zalaegerzeg
FLEXTRONICS
Automotive Industry in Hungary 41
SUPPLIER NETWORK
Continental has a more than 25 years history in Hungary. The company has several sites across the country, in the following cities: Szeged, Budapest, Makó and Vác.
ContiTech Rubber Industrial Ltd. in Szeged manufactures two main product groups: textile conveyor belts mainly for the mining industry and rubber as well as composite hoses mainly for the oil industry. The site has the world's biggest capacity of textile conveyor belt production and supplies approximately one third of the oil hose market.Plant Budapest produces vehicle electronic components and microelectronic circuit modules, using state-of-the-art and innovative technologies, being engaged in almost all areas of vehicle electronics for the Continental divisions Chassis & Safety, Powertrain and Interior, and sup plies all major car producers worldwide.The product range in Budapest includes brake systems, various comfort and chassis elec tronic components, sensor clusters, electronic control units for electronic stability systems and hybrid drive systems, body control electronics, oil sensors etc. The plant in Budapest celebrated its 25th anniversary in 2015.ContiTech Fluid Automotive Hungaria Ltd. is a subsidiary of the ContiTech division and has production sites in Makó and in Vác. The company in Makó, which was founded in 1995, and the factory in Vác, which has been producing since 1999, were united in 2006, and since 2008 they have been called ContiTech Fluid Automotive Hungária Ltd.The profile of the company is still the production and sale of heating and cooling hoses for the automobile and truck sections, but in addition, Vác produces fuel hoses as well.
The Bosch Group relaunched its operations in Hungary in 1991 and first established a presence in the country 119 years ago, in 1898. Robert
Bosch himself founded the first company in Hungary. The Bosch Group has achieved a steady expansion in Hungary over the years, and by now has 9 companies, 7 manufacturing plants and, including the number of engineers working at the 10-year-old Engineering Centre Budapest, the largest European development centre outside Germany. The efforts of the 11,000 employees contribute to the progress of Hungary as a whole, because they are responsible for generating over 2.7% of the Hungarian GDP every year. The company’s growth is also supported by the activities of the Hungarian Investment Promotion Agency.
CONTINENTAL HUNGARIA Ltd.
ROBERT BOSCH Ltd.
40 OF THE
TOP 100 GLOBAL OEM PARTS
SUPPLIERS are available in Hungary
Automotive Industry in Hungary 43
SUPPLIER NETWORK
BEFORE YOU MAKE A DECISION
WE OFFER YOU…
AFTER YOU HAVE CHOSEN
HUNGARY
PLEASE CONTACT US
HIPAOUR SERVICES
Address: 1055 Budapest, Honvéd utca 20. Customer service: [email protected]
Telephone: +36 1 872 6520Web: www.hipa.hu
We support your further expansion
and plans.
…meetings with HR & real estate agencies,
law firms and other consultants
based on your needs.
…tailor-made incentive offers and information
packages on the business environment,
labour market, tax regulations, etc.
…reference visits at companies that are
already established in Hungary.
…location search & evaluation
+site visits.
…assistance with your incentive
application.
HOW DO WE SUPPORT YOUR
AUTOMOTIVE PROJECT?
…one-stop-shop management
consultancy services to address your business needs.
We are open to your feedback and offer mediation
between government and business based
on your inputs.
Automotive Industry in Hungary 45
OUR SERVICESFOR
INTEGRATORS
FOROEMs / SUPPLIERS
FORSUPPLIERS
SUPPLIERLISTS
=Filtering
SUPPLIER LISTSby company
requests
B2B,SUPPLIER FORUM
=Personal encounterbetween potential
suppliers and producers
UNIVERSITY AND R&D COOPERATION
=Supporting
educational and R&D cooperation between
universities and suppliers
PARTNERSHIPAGREEMENT
=Cooperations and
common projects todevelop Hungarian
suppliers
CERTIFIED SUPPLIERDATABASE
=Online, interactivecertified supplier
database and virtualmarketplace
EDUCATION, TRAINING
=Professional trainings
in several fields (efficiency trainings,
benchmarking techniques, automotive
standards)
DEVELOPMENTOF ACTUALSUPPLIERS
=Training for the
Hungarian suppliers,and potential
suppliers
PUBLICATIONS,MARKET
INFORMATION=
Information about the current Hungarian
supplier base
EXHIBITIONS=
Appearance on Hungarian and
international exhibitions and
fairs
Automotive Industry in Hungary 47
HIPASUPPLIER DEVELOPMENT
Regional grants are the most typical forms of incentives for greenfield / brownfield investments or reinvestments. The maximum amount of regional incentive is shown on the regional aid intensity map. The map above illustrates that regional aid available for investment for a large enterprise may be up to 50% of the eligible costs of the investment, depending on the region. For investments not exceeding €50 million, the maximum intensity ratio can be increased by 10 percent for medium-sized and by 20 percent for small enterprises. In case of R&D activities, the maximum aid intensity is 25% all over the country.
As a member of the European Union, Hungary’s regulations on incentive opportunities are in accordance with the EU rules. One
of Hungary’s competitive advantages over other countries in the region is the Government’s strong commitment to increase the competitiveness of SMEs and large enterprises in Hungary.Alongside the regulatory tools that contribute to the competitive business environment of local companies, Hungary offers wide-ranging incentives to facilitate foreign direct investments and reinvestments by local enterprises. Subsidies may be granted as regional aid or specific aid, such as R&D subsidies.
GOVERNMENT INCENTIVES
INVESTORS MAY APPLY FOR VIP CASH SUBSIDY WITH CAPACITY EXPANSION AND TECHNOLOGY-INTENSIVE INVESTMENT PROJECTS
WHICH DO NOT RESULT IN THE INCREASE OF THE HEADCOUNT.
CASH SUBSIDIESfor investments,
training, job creation
and R&D
TAX INCENTIVESreduction of
corporate tax, social tax, or for
encouraging R&D activities...
LOW-INTEREST LOANS
THESE INCENTIVES INCLUDE, BUT ARE NOT LIMITED TO
Automotive Industry in Hungary 49
HIPAINCENTIVES OVERVIEW
The maximum available aid intensity decreases if the investment is a large investment (exceeding €50 million): 50% of the maximum aid intensity determined in the regional aid map is available for investment between €50 and €100 million, with 34% of the maximum aid intensity for investment over €100 million.For information on up-to-date and individual incentive packages please contact HIPA directly.
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