Hungarian electronic parts maker and assembly group Videoton is to invest more than €24m on a new manufacturing plant with upgraded technology at its electronics assembly operation in central Hungary.
In December (2017), the group electronics assembly offshoot Videoton EAS staged an official foundation laying ceremony for the construction of the new €16m plant at its industrial site in Székesfehérvár.
This 20,000m2 building, due for completion by the end of this year, will include 8,500m2 of production space along with a 4,500m2 warehousing area. Videoton will spend between €6.5m - €8m on technological developments there, according to the Hungarian news agency MTI.
Videoton EAS currently employs 770 workers at two production halls with a combined area of 17,000m2. With the addition of the new plant, it expects the employee headcount to exceed 1,000 by 2019, revealed the subsidiary’s managing director Csaba Klambauer.
Revenue is due to increase from €70m to €100m per year at the company in 2019 following the latest Videoton investment project, which was funded from group resources.
Meanwhile, another offshoot of the Székesfehérvár-based contract manufacturing group, Videoton Autoelektronika which serves the automotive sector, will benefit indirectly from the project.
Also located in the central Hungarian city, it has outgrown its plant and will be able to expand its electronics and electromechanical parts assembly operation taking over the EAS vacated unit, reported group co-chief executive Ottó Sinkó.
This year, the two Videoton subsidiaries are scheduled to contribute around €243m to the holding company’s revenue, the executive said.
Much of Videoton group’s component and sub assembly production includes injection moulded plastic parts with several offshoot firms dedicated to those electronic parts manufacture.
The 75-year-old group, today considered one of Europe’s biggest electronic manufacturing service (EMS) providers, reported first half 2017 sales revenue up 8% - above its predicted 5% growth for the period.
In 2016, Videoton reported full year revenues of almost €518m and for 2017, the group projects consolidated revenue will top €550m. It plans to invest around €39m overall during 2018.