COMPANY BRIEFS

INFINEON EXPANDS SEMI-CONDUCTOR PLANT IN CEGLÉD

German-owned Infineon Technologies celebrated the expansion of its plant in Cegléd, SE of Budapest early October. It is Hungary’s largest semi-conductor manufacturing facility. The EUR 100 million investment, that is to create up to 275 jobs, allows for the production of high-power semiconductor modules that will be built into the inverters of electric and hybrid vehicles. One fifth of the investment will be borne by Hungarian taxpayers. Munich-based Infineon Technologies AG is the global market leader for automotive semiconductors. Thanks to its large-scale operation, almost every second electric or hybrid car produced in 2021 uses Infineon semiconductors in the inverter. The German company is present in 140 countries worldwide, employing more than 40,000 people. Infineon has been operating in Hungary for over 25 years. The semiconductors produced by Infineon’s Hungarian subsidiaries are used in industrial automation and power technology, medical equipment, energy production, transportation and distribution, and also in the field of renewable energy sources. The inauguration follows almost exactly three years after the foundation stone was laid. The new production capacity is set to fulfil demand for high-power modules that help the electrification of vehicles and enable green energy for wind turbines, solar modules and energy-efficient drives. As Infineon COO Rutger Wijburg pointed out, the new manufacturing capacities will help Infineon to accommodate the growing demand for electromobility applications with a clear focus on Europe.

KEMPINSKI HOTEL CORVINUS BUDAPEST 30TH ANNIVERSARY

This year sees a major milestone in the history of Kempinski Hotels as the company celebrates its 125th birthday, while Kempinski Hotel Corvinus Budapest marked its 30th anniversary this fall. This anniversary represents an important jubilee for the hotel, following three decades of precious moments, memories and experiences in the art of hospitality, according to a press release. The first purpose-built joint-venture five-star hotel in Budapest after the change of the political system welcomed its first guests on September 11, 1992. Its pioneering spirit, combined with Kempinski’s trademark European flair, has consistently positioned the hotel at the forefront of the city’s competitive market, and as a market-first innovator. The press release adds that Kempinski Hotel Corvinus Budapest is well known for its unique, professionally curated Corvinus Art Collection, which also appears in the recently published 'Storytelling Suites'. The hotel invited five leading Hungarian writers to spend a night in the Art Collection Suites and write a short story inspired by the suites and the works of art there. The resulting booklet is not only testament to the hotel’s continued dynamic commitment to the local art scene but will also allow guests and partners to relate to and appreciate the fabric of Budapest and Kempinski Corvinus’ part in it in a rare, inspired and enriching way. The luxurious property’s management is proud that ten of its employees have been working at the hotel since the opening. The management and the board members of the hotel honored the dedication of these long-service staff members on September 29 with a festive lunch. Their loyalty was acknowledged with a travel pass redeemable at one of the European Kempinski hotels, including travel costs. As the General Manager of the hotel, Stephan Interthal highlighted, “I have managed this wonderful hotel for 15 years out of the past 30 years of its operation. Budapest, which is my second home by now, became a cosmopolitan metropolis before my eyes. In 1997, when I arrived for the first time, the city was very different, and today, Budapest surpasses several famous capitals in many aspects. I would like to thank all those who have accompanied and supported us over the years: our owners, Kempinski Hotels, partners, guests, colleagues and friends.”

CAADEX LTD. INVESTMENT WITH EU FUNDING IN HUNGARY DECREASING PROFIT AT NESTLÉ HUNGÁRIA

Hungarian family-owned Caadex Ltd. in Mindszentgodisa, S Hungary, has decided to invest more than HUF 500 million in energy and equipment, the company informed the state news agency MTI. According to the statement of the Baranya County company, which is engaged in the production and trade of tin and steel products, the HUF 357 million conditionally non-refundable EU funding won in the tender of the Economic Development and Innovation Operational Program Plus (Ginop Plus) will be supplemented with HUF 153 million of own resources. This will be used to install an air-to-water heat pump system in the recently inaugurated plant in nearby Komló and to install a new Nestlé Hungária's profit fell to HUF 1.483 billion in the first half of the year from HUF 1.975 billion last year, according to a report published on the website of the Budapest Stock Exchange (BSE). The food company's half-year sales increased from HUF 82.9 billion to HUF 103.9 billion, including foreign sales from HUF 17.2 billion to HUF 23.2 billion over the year. Exports to EU countries fell by 2%, while exports outside the EU and Europe rose by almost 80% to HUF 9.4 billion. Within total turnover, domestic sales of goods grew the most, by 27%, but services also increased by more than 10%. Pet food accounted for more than HUF 53 billion of sales, with the division's annual growth of 38%, and is expected to remain strong in the second half of the year. Traditional Nestlé products achieved sales of HUF 45.3 billion, with the highest growth of over 10% in kitchen products and children's nutrition. Coffee, however, underperformed due to difficulties in raw material supply, they said. The company's targets for this year were unchanged, the report said. A rebound in tourism boosted revenues, but the war in Ukraine, energy prices and changes in exchange rates are seen as risks, according to the report.

laser cutting machine to increase their laser cutting capacity, which will boost their competitiveness in the plant in Mindszentgodisa. Managing Director Gábor Szanyi told MTI that the expected five-to-six-fold increase in electricity prices from January 1 will pose significant challenges for the company, which employs 125 people. The Komló project, which is to be completed by March, is expected to significantly increase energy efficiency, he added. In July, the company inaugurated its new plant in Komló, S Hungary, which was built with the help of HUF 500 million from Ginop funds and its own resources. Caadex's turnover in 2021 increased to HUF 2.189 billion from HUF 1.124 billion in the previous year, with more than 80% of sales coming from exports to the EU. Profit after tax rose from HUF 222.58 million to HUF 489.89 million in the same period. The decline in export markets is expected to lead to a 10% drop in sales by 2022 and 30% by 2023, but the company is trying to cushion the negative impact by attracting new partners, he added.

company briefs

PANNERGY SOLD CLOSE TO 40% MORE HEAT IN THE THIRD QUARTER

PannErgy Plc. sold 201,100 gigajoules of heat in the third quarter, 38.9% more than in the same period last year, the company said in a production report published on the Budapest Stock Exchange (BSE) website. According to the information, the outstanding performance was due to a cooler-than-average September and continued investment in efficiency, operational safety and capacity. The company

CONTINENTAL EXPANDS SOFTWARE DEVELOPMENT IN SZEGED

Continental is expanding its software development activities in Szeged with a unit working on driver assistance and automated driving solutions, Country Director of Continental Hungary, Róbert Keszte announced this October. Speaking at an event at the University of Szeged, he said that the company's Artificial Intelligence Development Center in Budapest, which employs 200 professionals, has proven over the past four years that it is capable of pioneering the world's most innovative technologies. Róbert Keszte explained that the quality of university education and the existing professional community, which covers both software development and the automotive industry, were the main reasons for the decision to expand this activity in Szeged. At the same time, the director pointed out that Continental has had a wellestablished factory in Szeged for decades, which is one of the most successful units of the group. Balázs Lóránd, head of Continental Autonomous Mobility Hungary, said that the Szeged software engineers will be responsible for preparing and processing the data needed for artificial intelligence-based development, and for developing the tools, frameworks and exceeded its quarterly target by around 22.9%. PannErgy confirmed the expected achievement of its consolidated EBITDA (earnings before interest, tax, depreciation and amortization) target for the current financial year of HUF 3,250-3,350 million. The achievement of the plan and the public EBITDA plan for 2023 will be updated in the fourth quarter production report. The company also stated that its primary objective is to utilize its significant spare heat capacity above its current utilization. It was noted that radically increased hydrocarbon prices and supply uncertainty, as well as the cost of carbon emission quotas, have further increased the competitiveness of geothermal energy. The shares of PannErgy Plc. are traded in the premium category of the Budapest Stock Exchange, with a closing price of HUF 1,055 on Friday. The share price has ranged between HUF 830 and HUF 1,150 over the past year.

embedded systems needed for this. The newly recruited developers will work remotely for the first period, but the company aims to set up its own office in downtown Szeged for the 40-strong team. They are looking for talented people who are the best in their field to develop new solutions, he added. Szeged deputy mayor for urban development, Sándor Nagy explained that Szeged has become one of the centers of the Hungarian IT industry thanks to the high-quality university education with a long tradition. In addition to multi-national companies, the city has a good number of domestic enterprises, providing jobs for about 3,000 developers in the sector. “Szeged is building on a knowledge-based economy, the aim is to ensure that university graduates find their way locally, thus creating high added value jobs," the deputy mayor stressed. At the event, Continental signed a strategic cooperation agreement with the University of Szeged covering education and research.

AUTONET OPENS WAREHOUSE OUTSIDE BUDAPEST

Switzerland-based leading auto part supplier SAG – Autonet Group opened its brand-new high-tech warehouse worth over EUR 50 million in Üllő, just south of Budapest. Offering employment opportunities for 130 future workers, the project will provide a highly automated storage space of 16,500 square meters that is bound to serve a number of regional markets. Hungarian taxpayers have covered about 8% of the investment costs through a government grant. Founded in 1996 by two Hungarian entrepreneurs of Transylvanian origin, SAG – Autonet Group is by now among the top auto part suppliers on the continent. Its Hungarian operation, specializing on wholesale trade, dates back over twenty years, whereas its local subsidiary, Autonet Logistic Ltd. with a warehousing focus was set up last year. The newly inaugurated logistics hub is fully Diplomacy-n-Trade.ai 1 2017. 02. 27. 11:22:30 robotized and attaches high importance to efficiency. Thanks to the use of the AutoStore system space can be utilized with up to four times better effectiveness as compared to conventional warehouses. The facility will serve nine regional markets. The company is present in 13 countries out of which ten are in Central and Eastern Europe. At the opening ceremony Christian Doser, Autonet’s CEO Central Europe highlighted that the fast-growing Group believes in the region, believes in the knowledge of its people and that there is huge potential in these countries. The logistics sector plays a key role in investment promotion in Hungary which is showcased by the fact that between 2014 and the first half year of 2022 in total 34 deals were closed in this field. Those positive investment decisions accounted for some EUR 890 million and 4,700 new jobs.

YETTEL’S CALL TO FIND SOLUTION TO THE ENERGY CRISIS

Mobile network operator Yettel's developer competition encourages the identification and development of technological solutions to tackle the energy crisis, the company told the state news agency MTI. The two-round competition, called 'Hack it your way', is open to brainstormers, startups, development teams and programming professionals and targets three topics: reducing household spending with smart devices, helping small and medium-sized enterprises to operate M more efficiently and rethinking urban transport in a greener, more energy-efficient way. The competition, with a total prize of HUF five million, aims to bring together the best Hungarian brains to tackle the problems faced by the community, society and even the rest of the world in general. The winners will be announced in November, after the contestants have presented their solutions, based on the decision of a jury delegated by Yettel. The winners of each theme will take home HUF one million, the absolute winner will take home a further HUF 1.8 million and the Audience Prize winner will receive HUF 200,000.

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