COMPANIES THAT SUCCESSFULLY APPLIED FOR THE COMPENSATION SCHEME FOR LARGE ENTERPRISES - VIDEO REPORT

COMPANIES THAT SUCCESSFULLY APPLIED FOR THE COMPENSATION SCHEME FOR LARGE ENTERPRISES - VIDEO REPORT

Compensation scheme

In line with the approval of the European Commission on June 23, 2020, a new compensation scheme has been introduced by the Ministry for Foreign Affairs and Trade, which was managed by the Hungarian Investment Promotion Agency (HIPA). The new scheme was available from July 6, 2020 for large companies based on the amendment of Decree 7/2020 (IV.16) of the Ministry for Foreign Affairs and Trade on the subsidy to improve competitiveness required as a consequence of coronavirus situation and the introduced administrative measures. The coronavirus outbreak had a severe economic impact that resulted in declining revenues and operating profit. Therefore, Hungary has adopted this new compensation scheme that compensated the affected undertakings for the damage caused by the COVID-19 outbreak and administrative measures adopted with the intention to minimize the spread of the virus. The compensation could be granted in the form of non-refundable cash grant for those companies that were willing to contribute to economic recovery of Hungary. Hungary has allocated a budget of HUF 70 billion from national resources for the realisation of the aid scheme. For further details, check out our detailed article here.

Please find below the list of companies that have successfully applied for the above state aid scheme.

Companies that successfully applied for the Compensation Scheme for Large Enterprises
(continuously updated in the order of the announcement, starting from the latest on top)

Audi Hungaria

Audi is starting a new investment in its tool factory in Győr. In the framework of the project of more than EUR 10 million, the current production hall will be extended by 3,800 square meters for exclusive series production, and the logistics hall will increase by 2,500 square meters. While retaining nearly 700 jobs, the capacity of exclusive series production will grow by 30 percent.

Flextronics International Kft.

Flextronics International Kft. manufactures electronic consumer goods. The Zalaegerszeg unit, which currently employs more than 1,200 people, manufactures a variety of products, including exterior and interior car lights, as well as electronic controls, motion sensors and multimedia modules. As a result of the HUF 8.9 billion development, the company's plants in the Zalaegerszeg and Sárvár sites will expand. As part of the investment, not only 1,390 jobs will be saved, but the company will also create new jobs.

Tamási-Hús Kft

Tamási-Hús Kft., the Hungarian subsidiary of the Austrian Gierlinger-group, is active in meat processing and preservation, producing smoked, cooked and so-called crispy fried bacon products. By investing EUR 4.53 million, the company aims to increase their production capacity for retail pack sliced bacon. The investment aims to acquire new, air-drying and disinfection equipment, a large capacity slicing machine line, a bacon press, and they will also install an automated packaging inspection system. The project also helps in retaining 331 jobs.

Hydro Extrusion Hungary Kft.

The Norwegian Hydro corporation is active in 40 countries around the world, selling products and services to the automotive, construction, packaging and general engineering segments. Their Hungarian subsidiary, Hydro Extrusion Hungary Kft. decided to invest close to EUR 5.3 million to acquire equipment to manufacture high value added components for new generation electric car production. This development project will also help the company retain 1,510 jobs.

Jabil Circuit Magyarország Zrt.

Jabil Circuit Inc. was founded in 1966 and by today it has become a crucial supplier of the most important global electronics manufacturers. Their subsidiary Jabil Circuit Magyarország Zrt is located in Tiszaújváros in Hungary, where they decided to develop the capacity for the production of low voltage battery cell chargers for electric vehicles. To acquire the required machine line and install automation at their plant, they will invest EUR 3.2 million, which will also help in maintaining 3729 jobs.

BorgWarner

BorgWarner Oroszlány Kft.
BorgWarner corporation is active as a supplier in the automotive industry worldwide, manufacturing energy efficient engine and drivechain components. One of their subsidiary in Oroszlány, BorgWarner Oroszlány Kft, produces torque distribution and control systems including turbo chargers for electric and hybrid engine vehicles. To expand their portfolio and production capacity they will invest EUR 12 million aiming to acquire equipment and also to keep 936 jobs.
BorgWarner Hungary Kft.
The other Hungarian subsidiary of the company, BorgWarner Hungary Kft. decided to improve their production flexibility and install a solenoid manufacturing line by investing EUR 18.7 million and maintaining 312 jobs, while also creating an additional 100 positions.

Villeroy & Boch Magyarország Kft.

Villeroy & Boch MAgyarország Kft. is a German manufacturer of ceramics, with the company headquarters located in Mettlach, Saarland. The firm's predecessor in Hungary, Alföldi Porcelánygyár was established in 1965 in Hódmezővásárhely. They have two brands in retail in Hungary, Villeroy & Boch and the well known Alföldi. The company decided to invest more than HUF 810 million to automate manufacturing processes and reduce physical workload on employees, and also to increase the production capacity of the more and more popular, new technology WC bowls.

Beurer Hungária Kft.

Beurer GmbH is a German, family-owned manufacturer of electrical devices for health and well-being. The pandemic crisis made it clear that the production of the most important medical equipment should be brought back to Europe. Based on that the company decided to to invest EUR 1.7 million in their factory in Veszprém to start the production of medical equipment, contactless medical thermometer, blood pressure meters and surgical masks. They plan to build a second level to the production hall with the necessary social infrastructure, acquiring the required tools and staff, and the equipment needed to run the base material storage facility.

Mahle Compressors Hungary Kft.

MAHLE GmbH is a German automotive parts manufacturer based in Stuttgart, it is one of the largest automotive suppliers worldwide. Mahle Compressors Hungary Kft. manufactures various products and components for combustion and electric engines at its plant in Balassagyarmat. In order to increase their production capacity for component machining they now invest EUR 4,003,990, which will help retaining 728 jobs and will also add 9 new positions.

Alpine Kft.

Alpine Electronics, Inc. is a Japanese consumer electronics subsidiary of the Japanese electronics component manufacturer Alps Electric, specializing in car audio and navigation systems. Alpine Kft., a strategic partner of the Hungarian government, was established in 1998 manufactures electronic entertainment equipment for the automotive industry. The centre of European production is in Biatorbágy, Hungary. The company decided to start a plant development requiring and investment of EUR 5.94 million, besides expanding the product portfolio, this project will also help saving 1064 jobs.

DENSO Gyártó Magyarország Kft.

DENSO Corporation is a global automotive components manufacturer headquartered in Japan.
DENSO Gyártó Magyarország Kft. was established in1997 in Székesfehérvár. The company manufactures vehicle and engine components. Their current development project aims to expand the production of vehicle engine and emission control systems with an investment of EUR 10 million. The project helps retaining 547 jobs as well.

Diamond Electric Magyarország Kft.

Diamond Electric Holdings Co. Ltd. manufactures electrical components including transformers, electronic control units, communication equipment components, and other products. Their Hungarian subsidiary was established in 2000, in Esztergom, manufacturing vehicle and vehicle engine components. They decided to invest EUR 2,391,000 to expand their production of ignition coils, maintaining 130 jobs.

Haldex Hungary Kft.

Haldex is a Swedish multinational company developing, manufacturing and distributing products for brake and suspension systems in vehicles. They deliver to manufacturers of heavy trucks, buses and trailers and have a strong global presence all over the world. Today the company is focused on safety and the future of electrified, autonomous and connected heavy vehicles. Haldex Hungary Kft. was established in 2003, it is located in Szentlőrinckáta. The company primarily produces parts for vehicle engines.

Haldex is going to invest EUR 4.5 million to add the capacity to manufacture new type of electronic brake control units. The project results in retaining 271 jobs and adding 15 new positions.

Dometic Hűtőgépgyártó és Kereskedelmi Zrt.

Dometic is a well-known supplier among the producers of commercial and passenger vehicles, but they also deliver to other industry segments. Their business applications can be found in the hotel and catering industry, in mobile refrigerators, hospital cooling systems, in comfort vehicle extras and they also make special devices for marine installations. The seat of Dometic Hűtőgépgyártó és Kereskedelmi Zrt. is in Jászberény, the company also has a chain of 18 retailers countrywide. Their primary activity is the production of refrigerators.

The current development will include the installation of new, automated factory lines, production equipment, new, specialized tools to make new products, new storage and storage technology improvements, and new handling equipment. They will also introduce a corporate management software system. The project requires an investment of EUR 2.5 million and will result in retaining 288, and also in creating 15 new jobs.

Autoliv Kft.

Autoliv was founded in 1953 with a headquarters in Stockholm. The company develops, produces and distributes airbags, safety belts, steering gears, active and passive safety systems and accessories. Autoliv Kft. was founded in 1990, its seat is in Sopronkövesd. Their main activity is manufacturing safety belts by the order of automotive makers like VW, Skoda, Audi, Daimler, Volvo, Jaguar, LandRover, and BMW.

Their current, almost EUR 2.42 million project will aim to expand their reel, strap and fitting manufacturing lines, and introduce automation, also considering customer safety expectations and improving their competitiveness. Besides upgrading their production capacities, they also intend to grow their storage size. The company wishes to install a solar panel system to provide the required energy for the production in an environment friendly way. The new fire safety system would increase safety and security in the factory, and they also wish to introduce a packaging instruction management software as well. The company's quality assurance system would be augmented by video control and introducing a 3d macroscope. Finally, they also wish to extend the SAP corporate management system to their production processes. This development would result in retaining 1,806 jobs and create 4 new positions.

Csabacast Kft.

A CsabaCast Kft. is one of the most successful suppliers of the automotive industry in Hungary. The company manufactures engine, gearbox and differential parts for European companies, or for companies with factories on the continent, including BMW, Audi, Volkswagen, Mercedes and Ford.
The investment aims to implement developments to increase capacity and efficiency at their plant in Apc, by robotisation, automation and developing new type, large capacity machining centres. They would like to expand their machining centres by adding German made, state of the art technology, computerized units, and they also intend to acquire and introduce a new corporate management system. They are going to increase their molding capacity as well. The HUF 2.1 billion investment helps retaining 402 jobs and also creates 30 new positions.

REGIO Játékkereskedelmi Kft

The company is the leading wholesale and retail toystore chain of Hungary owning 40 commercial units and a webshop. They are exclusive distributors of international brands like the puzzle and board game maker Ravensburger, Disney plush toys and SIKU, the famous maker of toy and model cars.
REGIO Játékkereskedelmi Kft. intends to initiate developments in Szeged and Törökbálint to improve their logistics efficiency. By investing HUF 1.8 billion at the two premises, they would like to modernize and expand their units of toy design, computerized modelling and documentation, and the company also intends to establish a storage and logistics centre in Szeged, in the south of Hungary. Additionally, they will also introduce automation and robotisation at their storage facility in Törökbálint.

VIDEOTON Autóelektronika Kft.

Videoton Autóelektronika Kft. is specialized in car electronics; now they intend to improve their manufacturing processes in producing power steering control and hybrid vehicle inverter electronics. Currently they run their activities on 25 thousand m2 in four buildings.
The company decided to invest HUF 1.8 billion, which helps retaining 1,291 jobs and also, an additional 51 jobs will be created. The project will include establishing a cleanroom lab and acquiring an SMD mounting station, a vacuum furnace and additional mounting and testing equipment.

Waberer's International Nyrt.

Waberer's International Nyrt is one of the most prominent logistics provider and the largest freight forwarding company in Europe. The company has more than 3550 trucks and 4500 drivers, their customers are Hungarian and International companies, mainly from the automotive, electronics and FMCG segments.
The company's investment project will focus on expanding their storage and logistics capacities at Budapest and Páty, and performing the required technological improvements. The HUF 3 billion investment will help retain 1,096 jobs, while also adding 230 new jobs. They will install a modern, computerised storage technology in Budapest and also update their forklift fleet. This will add 160 new jobs at their Budapest premise, while in Páty, they will construct a new racking system and upgrade their IT and software base, which will add 70 new positions to their current headcount.

Medicontur Kft.

Medicontur Kft. was established in 1989, its seat, plant, R&D and logistics centres are located at Zsámbék. The company's main activity is the production of medical equipment, they have become a leading maker and developer of intraocular lenses in Hungary and in several other countries as well over the last three decades. Their products are available in more than 70 countries today. Medicontur Kft. puts great emphasis on product innovation, its R&D centre has presented substantial achievements in recent years in developing new raw materials and in improving the optical and mechanical properties of implantable artificial lenses.
Medicontur Kft. currently has 3,100 m2 useful building area, they plan to move the activities of several premises to the Zsámbék site. To achieve this, the company intends to build a new plant hall with 2.300 m2 factory floor area including utilities, as an extension of the existing building. The project requires an investment of EUR 1.8 million, and it makes keeping 301 workplaces possible.

Apollo Tyres Hungary Kft.

Apollo Tyres has been producing and selling vehicle tyres since 1972 with a headquarters in Gurgaon, India. The company is one of the 20 largest tyre production companies, with prime tyre brands Apollo and Vredestein, also featuring two smaller, regional tyre brands Kaizen and Regal. The company currently has 7 factories and 3 R&D centres worldwide, Apollo products are available in 118 countries. Apollo Tyres Hungary Kft. was established in 2014, primarily producing vehicle tyres and tubes in Gyöngyöshalász.

The current EUR 12.4 million investment will be used to expand the production capacity at their plant in Gyöngyöshalász, securing to keep 820 workplaces.

SMR Automotive Mirror Technology Hungary Bt.

The Samvardhana Motherson company group was founded in 1975 as a family business and is mostly known as an automotive provider besides other industry segments. They are active in 41 countries globally. The company owns industrial sites in Hungary in Mosonszolnok, Mosonmagyaróvár, Hegyeshalom, Kecskemét and Túrkeve.

The currently running investment project amounts to EUR 16 million, aiming to develop and optimize existing business infrastructure capacities, introduce new IT solutions to improve the quality and efficiency of logistics areas, and various modernization and laboratory upgrade projects at numerous sites of the company in Hungary, making it possible to keep 2911 workplaces in total.

TDK Hungary Components Kft.

TDK in Szombathely, which has been operating for 22 years, is one of the most important European electronic development and production centres of the international TDK Group. The company develops and manufactures electronic components for "smart car applications" in Szombathely, such as full keyless opening and starting, automatic high beam control, optical parking assist systems, lane departure warning systems or various traffic sign detectors.

TDK operates as one of the city's largest employers in the development and production facility of about 50,000 square meters in Szombathely. Hungary provides substantial financial subsidy for the EUR 12 million investment of TDK Hungary Components Kft., by which 2,126 jobs will be retained.

Continental Automotive Hungary Kft.

The second largest automotive supplier in the world, the German Continental has been operating in Hungary for three decades, has seven factories, as well as a logistics and a development hub in Hungary. During the current development project, it installs machine lines to launch the manufacturing of new generation vehicle electronics in Budapest and Veszprém with an investment of EUR 74.26 million, helping to further increase and renew domestic automotive production.

SEWS Komponens és Elektronika Európa Kft.

The main activity of SEWS Ltd. based in Mór has been the production of passenger vehicle parts: the manufacturing of connector houses, fuse boxes, engine compartment interfaces and air-conditioning panels, as well as wholesale and retail trade and storage of vehicle components since 2003.

The company's investment of EUR 8 million (HUF 2.74 billion) will help to retain 561 workplaces. The development project mainly consists of manufacturing equipment (new moulding machines, production lines, X-ray and CT devices), which are needed to increase production capacity, and a smaller part is made up of the partial restructuring of the existing production plant and the development of an automated environment to meet production needs.

Graboplast Zrt.

The Hungarian-owned Graboplast operates four factories in Győr, Kecskemét and Tatabánya and employs almost 650 employees; of the HUF 18 billion net sales in 2019, more than HUF 15 billion was secured from foreign sales in the markets of over a hundred countries.

Graboplast invests EUR 2.35 million in its Tatabánya plant and the expansion guarantees the future of 139 local workers beyond increasing exports. The aim of the investment is to create a line of machinery on which the next generation of floor covering products can be produced economically and in a market quality.

ANY Biztonsági Nyomda Nyrt.

The leading security printing company in the CEE region with products available on all continents, provides full services to the state administration in the field of personal and product identification. In addition to the government sector, their partners are financial institutions, transport and commercial sectors as well. The company is to implement an investment of EUR 3.25 million, in the framework of which new production units will be established at the company's two sites in Budapest. In order to develop the production of paper and card-type documents the company acquires the tools, flatbed offset printer, chip implanting, hologram making, card personalisation and revising devices needed to facilitate an even higher standard of security graphics.

BorsodChem Zrt.

BorsodChem, a member of the Chinese Wanhua Group, which celebrated its 70th anniversary in 2019, has arrived at a new stage in its current intensive investment programme, and has decided to implement a new nitric acid plant with a capacity of 90,000 tonnes per year. The new unit under the investment of EUR 35.5 million will be extending the existing production capacity, thanks to which, the import purchase is to be replaced entirely by production in Kazincbarcika. On top of adding value, the investment is an integral part of the Company's strategy, which focuses on an advanced, innovative chemical background, the application of the best technologies available worldwide, continuous R&D and developments based on long-term sustainable operation.

Howmet-Köfém Székesfehérvári Könnyűfémmű Kft.

Howmet-Köfém was founded in 1991 with headquarters in Székesfehérvár; the company currently consists of a production unit for wheel products, turbine-base machining and manufacturing fasteners at the site of Nemesvámos and a unit that supplies energy and facility to the site.

The company is now investing EUR 25.3 million, creating 90 new jobs in addition to the existing 550 jobs. The investment is to realize the extension of a recently opened hall, where the current wheel disc capacity of 1.8 million is expected to increase to 2.3 million by the end of 2021. The plant will be characterized by high automation and Industry 4.0 technology.