HUNGARY gets new Norwegian investments
BUDAPEST: Two new investments signal increased interest from Norwegian business in the Hungarian market. Orkla Group has indirectly become one of the leading Norwegian investors into Hungary through the merger of two light aluminium profile producing units, Sapa and Alcoa, thus becoming majority owner of Alcoa Köfém Ltd, located in Székesfehérvár. The other significant development is the acquisition by the Tau-based Comrod Communications ASA of its supplier in Hungary.
Orkla originally owned Sapa. Through the merger with Alcoa in 2007 which owned Köfem, Orkla became 60 percent majority owner of what is now called Sapa Profiles Ltd in Székesfehérvár, 60 kilometres southwest of Budapest. The production site will remain an individual legal entity, and serve its customers as a unit of SAPA AB Group.
As it has done for decades, Sapa will continue the full-scale production of aluminium parts (profiles, tubes and various other spare parts). Customers include the automotive industry, door and window manufacturers, transport equipment producers, etc. The Hungarian production unit has in recent years consciously started to shift from low-cost, labour intensive production to higher knowledge-content products with a larger share of added value, by now accounting for the majority of its activities.
More substantial investments to come
In search for new markets and opportunities, the company introduces hundreds of new or modified products to the market. The new owners will implement special training programmes on the site. The unit in Székesfehérvár is the biggest one among the company’s Central European subsidiaries. It employs 850 persons and is expected to reach a yearly turnover of EUR 300m, with 90 percent of the production being exported.
The company plans to increase production and upgrade the production equipment, meaning further significant – several million euro - investments. Furthermore, Sapa is to set up its global financial and administrative centre in Székesfehérvár, which will provide services to its subsidiaries in Europe and North America. Its operation will start in 2009 with around 100 employees.
Comrod buys its supplier
Comrod Communications ASA based at Tau near Stavanger, has come to an agreement with its Hungarian supplier regarding the acquisition of the Hungarian company, renamed as Comrod Hungary Ltd. It will be completely reorganised and integrated into the mother company.
It is to be Comrod’s first East-Central European production unit. Its turnover for this year is expected to be around EUR 4m, producing parts for military radar and radio equipment, to be assembled at the company’s main production site in Tau. The Hungarian production site, located in the vicinity of Budapest, currently employs 15 persons. However, further investments and a doubling of personnel is foreseen by the end of the year.
Based on the information of the Hungarian economic daily, Világgazdaság, the most important factors behind Comrod’s decision were the competitive wages, available highly skilled personnel, a wide range of sub-suppliers in the region and Hungary’s position in NATO. Furthermore, Comrod is in need of an expansion of its production capacities, due to the USD 20m deliveries to be performed to the American Harris Corporation by mid-2008.
Red.anm.
Les mer om markedet på Innovasjon Norges hjemmesider, http://www.innovasjonnorge.no/Internasjonale-markeder/Kontorer-i-utlandet/Ungarn/