Hungarian automotive industry: week 29

Manufacturers

Last week, representatives of Hungarian railway company MÁV-START Zrt, and Stadler Rail signed a supply contract on 21 new Flirt locomotives.

The Hungarian plant of Hankook Tire is further expanding its accommodation for its workers. The third phase of an investment including construction of a third wing at the company's workers' hostel is necessitated by the Hankook's continuous growth and an additional 950 employees starting work at the company.

In addition to the existing 500 beds, the company will be providing free accommodation for an additional 288 workers at a 3-star facility located 800 metres from the plant.

Hankook Tire add new wing to accomodation for workers

U-Shin's Kisbér-based plant, a manufacturer of automotive parts for OEMs such as Suzuki, Audi, Skoda, VW and Mazda reported on its pre-audit first-half earnings. According to U-Shin's financial report, the revenues of the group's automotive division increased by 8.9 percent (USD 571.511 million), while the company's operating results rose by 30 percent to USD 15.779 million from the previous period.

Suppliers

Ganz Engineering és Energetikai Gépgyártó (EEG) have developed a new range of turbines, subsidized with an EU and state support. According to the company's press release, the total costs of development project, launched in 2013, amounted to HUF 720 million.

It was financed with a HUF 180 million subsidy from the funds of New Széchenyi Plan and Research and Technology Innovation Fund, while HUF 540 million was provided by the company itself.

Graboplast to increase export activities

Last week, flooring systems manufacturer Graboplast announced plans to spend HUF 8.7 billion in the next two years on expanding their export activities.

Wittmann Robottechnika have built a new production hall and added a new injection moulding technology at their Mosonmagyaróvár plant. The company has built a 2,500-square-metre production hall and purchased new machinery.

Interviews

Last week, we interviewed János Rudnay, the presiedent of the newly formed Dual Training Committee, about the mission and aims of the organisation, including promoting investments and corporate responsibility taking.

Retailers

Phasing out the highly popular Suzuki Wagon R+ and Splash models left a substantial gap in the Hungarian car market. Their replacement, the Thailand-made Celerio is awaited with high expectations: the Hungarian importer is expecting 5-6,000 units to be sold each year.

Suzuki retailers have high hopes for new Celerio

The Lada models that will be reintroduced to the Hungarian market from November include the Euro 6-engined Kalina and the Granta 4x4. The official Hungarian importer of Lada cars is Lada Hungary Disztribúciós Kft., established by the owners of Duna Autó Zrt.

The company is currently building an extended retail and service network, planning to open four showrooms and four service centres in the short term.

Economy

Following a 6.3 percent increase in the previous month, the volume of industrial production rose by 1.5 percentage points y/y in May. Due to the fact that there are two fewer working days in May, the working day-adjusted index shows a 6.2 percent growth, according to the Hungarian Central Statistical Office (KSH).