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mars drinks masterbrand logoklixmarscabinetMars Drinks, the British subsidiary of one of the most prestigious global food giants signed a contract with 2 of Videoton’s subsidiaries at the same time. One of the most important elements of the drinks vending machines, the PCBA set will be manufactured by VIDEOTON EAS Kft., the non-automotive EMS daughter company of the Group at its central Szekesfehervar plant.

The complete frame, the set of built-in metal sheet parts and assemblies will be supplied to the UK plant of the customer by VTES Kft which is specialised in stamping, powder coating and assembly.

After starting the cooperation by transferring existing models, the engineering team of VTES Szekesfehervar provided DfX services to the business partner during the industrialisation of the new models. As a result the new product family has a more efficient manufacturing process and a more competitive cost level.

This business case shows perfectly how attractive the integrated manufacturing services of Videoton Group can be for its customers. Videoton is in the position to supply parts, assemblies, modules in several commodities for the same product at the same time, improving its competitiveness.


DeloitteFor the first time in the company’s history, Videoton has been named as one of Central Europe’s 500 biggest companies.

The prestigious “Central Europe TOP 500” list published every year by Deloitte covers countries such as Poland, Czech Republic, Slovakia, Slovenia, Hungary as well as the Baltic states and certain parts of Southeast Europe. Companies registered in these countries are ranked based on their revenues and are categorized in 7 different industries such as Public Sector, Life Sciences & Healthcare or Energy and Resources. The 2016 edition showed Videoton’s first-ever inclusion on the list. With its 500 million € revenue in 2015, Videoton was named #473 in total and #120 in its own category, Manufacturing. Among the manufacturing companies registered in Hungary, Videoton is the only one on the list which is completely Hungarian-owned and not a local subsidiary of a multinational group or a company being in foreign majority ownership.

A traditional company of Hungary being privately owned for 25 years now, Videoton has had an impressive growth in recent years almost doubling its revenue since 2009. Videoton expects to maintain momentum this year as well, forecasting 5-10% increase for 2016. Although all activities, technologies and subsidiaries of the vertical integrated industrial group took part in this success, Videoton’s EMS subsidiaries were undoubtedly the biggest contributors. With now 28 SMT lines and state-of-the-art operations in Hungary and Bulgaria, Videoton has been able to strengthen its position as one of the largest European-based EMS providers in recent years further.

VIDEOTON HOLDING’s revenue increased by 15% in 2015

vt2The VIDEOTON Group increased its revenue by more than 15% compared to 2014, exceeding 500 million EUR. The manufacturing subsidiaries of the group achieved more than yearly 10% growth in total for the 6th consecutive year. As a result, the group’s revenue practically doubled by 2015 compared to 2009. In 2015 the biggest growth came from the Group’s electronics production and assembly activities. The revenue of Videoton’s main core activities increased by more than 21%. The Automotive, Industrial Electronics and Household Appliances industries took equally a share in this growth. Videoton’s markets, technological background and competitiveness are stable while its capital strength is outstanding, being now above 295 million EUR.

The number of employees increased by 700 people in 2015 thus exceeding 10,000. Besides the approximately 6 million EUR worth of technological investment, the group spent more to the expansion and development of certain areas than usual. Increasing the quality of work environment, offices and changing rooms was a priority.

The various changes in the world – China getting more expensive, low interest rates, cheap energy and raw materials – created an exceptionally favourable situation for Hungary while the Hungarian economic environment ensured stable taxes and exchange rates. It is the totality of these elements that resulted in the high growth rate of Videoton for whom the lack of manpower may appear as a new obstacle in the future.

Videoton is the largest Hungarian industrial group in local private ownership and also one of the world’s TOP35 EMS companies that provides manufacturing and manufacturing-related services to industrial companies. The Székesfehérvár-based company has 9 locations in Hungary and 1 in Bulgaria (Stara Zagora).

Videoton ended year 2014 with record revenue

In 2014 the Videoton company group increased its cumulative revenue with approx. 17%.  Thus the group's consolidated revenue exceeded 130 billion HUF. Thanks to Videoton’s effective operation, development and stability have been continuous in the past 23 years. Among European contract manufacturers Videoton is ranked in the top three in terms of revenue, number of employees and efficiency.  Growth of other companies in the branch is not even close to that of Videoton.  


Growth was perceivable in each activity (electronic manufacturing, assembly, mechanical part production, services) and in all market segments of the company. Out of its main activities, electronic and electro-mechanical assembly developed the most. Taking Videoton’s main markets, the ratio of automotive industry has increased further, last year it exceeded 40%, so remained the most important industrial branchThis was followed by the industrial electronics sector, its share was about 30%.  The next in line was the production of small household appliances, with a share of 19%, in which beauty care products had a significant role too.  Videoton’s own capital, approaching 84 billion HUF, ensures a stable background to the operation of the company group. Videoton group reinvests substantial part of its turnover carrying on its technological development programme started in 2008.  Last year alone, Videoton spent nearly 5.5 billion HUF on technology investment, using only internal resources and capital strength, without any external credit

Number of employees in the group exceeded 9,200 in 2014, including nearly 5,600 people working in domestic manufacturing companies.  Compared to last year, the number of employees has increased by nearly 1,300 people, this expansion exceeds 700 people in the production companies.  In 2015 Videoton group is going to continue its dynamic development, the target is to reach further 3%-5% increase in revenue.

Videoton received Bisnode Reliability Award

Out of the companies included in the TOP 200 list published by Figyelő, Videoton Holding Zrt, the largest Hungarian industrial group in local private ownership, was selected to take over the Bisnode reliability award in November 2014.

Bisnode has been offering business risk information on companies since 1908.  This is practically a system which collects and analyses quantitative and qualitative information on companies, based on which the reliability of these companies can be evaluated easier.  These data are accompanied by further information taking into consideration not only balance sheet and income statement but also “demographical data” of a company, such as: age, scope of activities, size, ownership structure, payment practice.

Only few percentage of the companies in Hungary are entitled for the rating, so it is an honour to have Bisnode certification.  By now this certification has become synonymous also with long-term sustainability and symbolizes such a business and quality rank of which Videoton can deservedly be proud.


Success story in Videoton’s Marcali site

videoton fdk egyuttmukodesKEP Kft specialised in the assembly of battery packs – operated by VIDEOTON Elektro-PLAST Kft management – celebrated together with its Japanese business partner, FDK in Marcali, Hungary. The reasons for the event were the extension of the successful co-operation and the substantial quality improvements achieved by the help of the workers.
The co-operation started in year 2010 with a half a year window but has become so successful during the years that now FDK is considered to be one of the most stable customers of Videoton.
This spring the management, experts and workers of KEP Kft started the optimization of the production processes in Marcali at FDK’s request as one. As a consequence their customer service improved and they could reach smooth, high quality production and also customer satisfaction.  This all created an excellent basis to a long-term co-operation and urged the Japanese management to show FDK’s appreciation for this exemplary co-operation by giving awards to the employees of KEP Kft.
VT EP Kft may deem it a huge achievement and success that Junshi Yamashita san, the president of FDK’s European operation and Masazumi Tsukada san, president of FDK Twicell company travelled from the HQ to Marcali only to express their satisfaction by the ceremony and to review the production results. In the gala Tsukada san, the president of FDK Twicell, Mr Gerber, the managing director of VIDEOTON Elektro-PLAST Kft. and KEP Kft. and Mr Juhász, the factory manager in Marcali handed over the prize to the colleagues with outstanding performance in the quality circles. The three special awards in the category of individual developments were handed over by Mr Tunkli, Vice President, Videoton Holding ZRt. Altogether 23 persons received recognition in the gala, they could take over certificate and reward prize both from Videoton and FDK.
By now, we may say, mutual trust and strong will to achieve further success together is established by and between the companies. Battery production is a huge, potential market where Videoton wishes to play an increasing role as a contract manufacturer and designer partner.  At the beginning of the co-operation Videoton significantly restructured and renovated the buildings of the jeans factory which formerly operated in the site, and it has been continuously evolving since that. The investments resulted in a completely new and modern plant in Marcali. During the reconstruction Videoton installed air-conditioning and antistatic floor in major part of the production area in order to create an environment meeting the strict regulations of Ni-MH battery pack assembly.
The Videoton subsidiary assembles mainly Ni-MH battery packs for the FDK, which are finally used in small household devices (electric toothbrush, shaver, etc.), wireless phones and in the automotive industry. The company employing nearly 260 employees – out of which 160 people work in the FDK project – produced and added value of more than 1 billion forint in year 2013.

Steady position among the leading European EMS Companies

VTAE csarnok 2013Videoton, the largest Hungarian industrial group being in local private ownership, showed continuous growth during the last four years reaching a new record turnover in each year.
From 2009 - the lowest point of the world economic crisis - until the end of 2013 Videoton Group’s turnover increased by 50% in total and continues to grow in 2014.
In this dynamic growth electronics production took the biggest part from the integrated manufacturing portfolio of the Group and became the Videoton’s engine with its growth rate of 66%. As a natural consequence, the 75-year old company is still playing a leading role among the European based EMS providers being the TOP 4 in Europe while having the position no. 27 worldwide. Although Automotive is still the largest market of the Group, Industrial Applications have been providing the most dynamic growth in the recent years with a fast increasing number of new market segments and customers.
Based on the extraordinarily stable financial situation Videoton realized several significant technological investments in electronics production during the last four years, in total value of ca. 25 million EUR.
As a result of these investments new technologies like selective varnishing, selective soldering, ultrasonic washing were introduced on one hand. On other hand, besides increasing the component insertion capacity significantly, the production area was also expanded by ca. 45%, resulting in a total surface of 37.000 sqm for electronics assembly in Hungary and Bulgaria where the labor intensive products are manufactured.
Thanks to the continuous technological development as well as its well-established position and good reputation on the European market Videoton has gained foothold on new market segments like LED building lighting, measurement and control of liquids, gases and dry products in harsh environment and active suspension systems in addition to expanding its traditional markets like automotive lighting, railway electronics and building automation.
A quite significant development has also taken place in the design & engineering activities of the company. The engineering teams of Videoton are involved in the new product design projects of more and more customers in an expanding range of applications providing complex DfX services and a complete industrialization. As a result their contribution significantly shortens the time-to-market of the new products of customers.
The key characteristics of Videoton’s EMS activity - besides the outstanding quality, the continuous technological development and market & customer-oriented approach - is the high flexibility. This is also proven by the fact that the two fully specialized EMS subsidiaries, serving Automotive or Industrial clients, manufacture 1.600 different products for 35 customers ranging from yearly 10 to 3.000.000 pieces.
The key goal of Videoton is to realize its further growth by having long-term cooperation with key accounts for whom the Group can become a strategic preferred supplier of PCBA’s, modules and complete products in the European region.