AUTOMOTIVE INDUSTRY HUNGARY - HIPA...Automotive Industry in Hungary 15 A long with many discoveries...

HUNGARYIN

AUTOMOTIVE INDUSTRY

OPENING DOORSFOR YOUR INVESTMENT

ABOUT HUNGARY

AUTOMOTIVE INDUSTRY

LABOUR FORCE

INNOVATION

SUPPLIER NETWORK

HUNGARIAN INVESTMENT PROMOTION AGENCY (HIPA)

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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)


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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.


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.


#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


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


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


Automotive Industry in Hungary


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 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 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.



“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?



“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?



“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

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32.5

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LGA

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HU

AN

IA

EUR

OZO

NE

LAT

VIA

AU

ST

RIA

HU

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AR

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FIN

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LAN

D

FR

AN

CE

CR

OA

TIA

GE

RM

AN

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CZ

EC

H R

EP

UB

LIC

SW

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EN

ES

TO

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DE

NM

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SLO

VA

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BE

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MA

LTA

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IN

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US

SLO

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EU

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ITA

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ITE

D K

ING

DO

M

IRE

LAN

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Sou

rce:

EU

RO

STAT

COMPETITIVE LABOUR COSTSIN THE INDUSTRY

Total hourly labour costs, € (2015)

10203040


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.


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


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


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.


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


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


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.


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


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


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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AUTOMOTIVE INDUSTRY HUNGARY - HIPA...Automotive Industry in Hungary 15 A long with many discoveries...

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Transcript of AUTOMOTIVE INDUSTRY HUNGARY - HIPA...Automotive Industry in Hungary 15 A long with many discoveries...