Hungary - an ideal location for Investors

Transcription

1 Hungary - an ideal location for Investors

2 Agenda Competitiveness of the Hungarian Automotive Industry Education, Workforce and Wages Logistics and Road Infrastructure The Hungarian Automotive Industry Services of ITD Hungary

3 Automotive Industry in Hungary 5 arguments that make Hungary an ideal location for automotive manufacturing investment and/or trade relations Automotive industry is one of the leading-edge sectors of the country: 16% of total industrial production; 25% of total exports made by more than 600 automotive companies; OEMs: Suzuki, Audi, GM Powertrain Availability of talented, creative, flexible and qualified labor pool: the sector employs over 97,000 people and some 3,000 engineering students and 21.5 thousand students from vocational education are eager to join the automotive industry Outstanding business infrastructure, BMI ranked Hungary s business infrastructure for automaking number 4 Competitive local supplier network: some 250 local companies possess quality certificates, and some 110 companies with advanced automotive systems (ISO, TQM, 6-Sigma, etc.) Reasonable and competitive labor costs combined with the highest productivity in CEE: highest productivity amongst the low-cost countries in Europe

4 Automotive OEMs in CEE Volkswagen in Poznan 155,000 cars per year Chevrolet in Warsaw New plant with a production of 100,000 cars per year Opel (General Motors) in Gliwice New plant with production of 180,000 cars Daewoo in Tychy New plant with a production of 25,000 cars Hyundai in Nosovice Capacity: 300,000 cars (by 2011) 3,500 employees 100 km Fiat in Bielsko-Biala Capacity: 300,000 cars Skoda (VW) in Mladá Boleslav Capacity: 442,500 cars 22,500 employees Kia in Zilina Capacity: 300,000 cars Employees: 1,200 PSA and Toyota in Kolin 300,000 cars ~2,500 employees Volkswagen (VW) in Bratislava Capacity: 225,400 cars Employees: 8,000 PSA (Peugeot/Citroen) in Trnava Capacity: 300,000 cars Employees: 2,200 Audi (VW) in Győr Production of 1,890,000 engines and 60,000 cars Employees: 5, km REVOZ (Renault) in Novo Mesto Capacity: 125,700 cars GM in Szentgotthárd Production of 400,000 engines 250,000 gearboxes Dacia (Renault) in Pitesti Capacity: 57,300 cars Suzuki in Esztergom Capacity: 200,000 cars Employees: 5,800 Sources: Le Monde, HVG, Napi

5 Education, Workforce and Wages

6 Hungary Ahead in Labour Productivity GDP in Purchasing Power Standards per person employed relative to EU-25 (EU-25 = 100) Hungary Czech Rep. Slovakia Poland Romania Bulgaria Source: Eurostat, 2006

7 Hungarian Workforce A Good Bargain Hourly Wages in the Automotive Industry in the World Hourly salary and fringe benefits in EUR Germany USA Japan UK France Italy Hungary Source: German Automotive Association; salary and fringe benefits

8 Automotive Competence Centres Mosonmagyaróvár Vogel&Noot Mosonszolnok Bos, Sapu Sopron Dekorsy, Euro- Elzett, Hirschler, Semperform Budapest Armafilt Autokut Avvc Bíró Kft. Eltec Fémalk Kmgy Michelin-Taurus Mikropakk Siemens VDO Tauril Temic Telefunken TÜV-Nord Webasto ACC1 Balassagyarmat Delphi-Calsonic Hatvan Bosch, Saia-Burgess Salgótarján Mitsuba, Salgglass ACC4 Miskolc Bosch, Remy, Technoplast Eger Bosch-Rexroth, Firth Rixson, ZF Mezőkövesd Exir, Remy Sopronkövesd Autoliv Esztergom Albert Weber Diamond Electric Kirchoff, Suzuki Gödöllő EMT, Lear, Nief Plastic Szombathely Bpw, Delphi- Packard, Eybl, Luk Győr Audi, Erbslöh, Hydro Aluminium, Magna-Steyr, Philips, Rába, Rekard Produkt, Rudolph Logistik ACC2 Szolnok Eagle Ottawa, Euroszol, Isringhausen, Le Bélier Kalocsa Emika, Kaloplasztik Kecskemét Knorr-Bremse, ThyssenKrupp ACC3 Szeged Autofer Orosháza Linamar Kiskunfélegyháza Kunplast-Karsai

9 Logistics and Road Infrastructure

10 Highly developed infrastructure motorway and logistics hubs Slovakia, Poland Western Europe, ARA Ports, Hamburg, Bremerhaven Slovakia, Czech Republic Ukraine, CIS SLOVAKIA UKRAINE AUSTRIA MEZŐKÖVESD 3x Constanza ROMANIA Logistics centres SLOVENIA TASZÁR Airport with public, international, commercial, permanent border crossing Airport with public, international, commercial, temporary border crossing Airport development opportunities Ports Railway connection Container terminal Koper, Triest Existing motorway Constanza CROATIA SERBIA Motorway to be completed until the end of 2007 Motorway to be completed until the end of 2015

11 Logistics: Sea-port connections in Europe Fast connection between Sea-ports and Hungary: Hamburg Bremenharven Rotterdam Regular scheduled block train connections to/from Hamburg, Koper, Rotterdam, Bremenshaven and Constantza (planned)

12 The Hungarian Automotive Industry

13 Some major automotive companies in Hungary HanKoo ook

14 One of the Determinant Sectors that drive the Economic Growth FDI in transport equipment manufacturing keeps growing FDI stock in million EUR in the transport industry in Hungary and its share FDI stock share of total (%) % 10% 8% 6% 4% 2% 0% Source: Hungarian Central Statistical Office

15 Automotive industry at a glance Production Value EUR 10.6 billion 18.6% of total industrial production and 13.4% of total exports Total number of companies: 634 Number of companies with quality certificates: ~ 250 Advanced automotive systems in place: ~ 110 companies Total number of employees: ~ 97,000 people Export ratio: - car manufacturers 94% - engine and component manufacturers: 88% Most important export market: European Union Sales in 2006: Passenger cars: Commercial vehicles & buses: Motorcycles: 187,842 pcs 28,154 pcs ~15,000 pcs

16 Major Automotive Companies in Hungary Mosonszolnok SAPU/Schefenacker Mosonmagyaróvár Vogel&Noot Sopron Semperform Sopronkövesd Autoliv Győr Audi Erbslöh Magna Steyr Philips APM Rába Jánosháza Eybl Szentgotthárd GM Opel Nagykanizsa Eybl Kisbér Ortech SEWS Budapest Alu-Öntő Kft. Autokut Avvc Beroha Excel Csepel Fémalk GE Ikarus Perion Tauril Temic Telefunken UBP Csepel Webasto Ajka Le Bélier Budaörs Vogel-Sitze Oroszlány Borg Warner Wescast Tatabánya Asahi Glass Bridgestone Euro Exedy Souftec Esztergom Diamond Elec. Suzuki Solymár Pemü, Johnson Controls Saia-Burgess Mitsuba, Salgglass Delphi-Calsonic Lear, Stanley Electric Zollner Bosch BombardierSaia-Burgess Schwarzmüller Hokushin Ibiden Ercsi Musashi Diósd Daewoo Ballbearings EMT Lear Kalocsa Emika Clarion Eger Bosch Firth Rixton Leoni ZF Hung. Miskolc Bosch Akzo-Nobel Coating Jászárokszállás Arvin Meritor (Zeuna Starker) Sátoraljaújhely Prec-Cast Orosháza Mezőgép-Linamar Mezőkövesd Delco-Remy, Exir Szolnok Eagle Ottawa Isringhausen Le Bélier Nyíregyháza Eismann Hübner Michelin Phoenix Vibroacustic Debrecen FAG Szombathely BPW-Rába Delphi-Packard Eybl LuK Savaria Veszprém Bakony Rt. Continental Teves Valeo Autoelectric Mór Benteler Hammerstein Michels SEWS Székesfehérvár Alcoa Denso Loranger Videoton Visteon Kiskőrös Eckerle Kecskemét Knorr-Bremse ThyssenKrupp

17 Automotive Organizations, Associations AHAI (Association of the Hungarian Automotive Industry) founded in 1998 has 24 members representing the interests of Automotive companies in Hungary towards the Authorities and the Society participating and law EU law harmonizing preparations, executions member of ACEA and OICA contact: AHVCM (Association of the Hungarian Vehicle Component Manufacturers) founded in 1993 has 212 members assisting the member companies in technical developments, commercial and economical issues, improving their competitiveness through continuously informing them member of CLEPA (European Association of Automotive Suppliers) contact: NOHAC (North Hungarian Automotive Cluster) founded in member companies fostering a cooperative network of automotive enterprises, new supplier links, improvement of competitiveness, encouraging innovation activities Encourage the settlement of foreign automotive ventures in the region contact: nohac@nohac.hu; PANAC (Pannon Automotive Cluster) founded in members partner mediating, network building, supplying services for automotive companies, international contacting contact:

18 The Services of the Hungarian Investment and Trade Development Agency

19 ITD Hungary Support The Hungarian Investment and Trade Development Agency is the agency of the Hungarian Government for foreign investment promotion and trade development. Network: Central Office in Budapest 6 Regional Offices 14 locations 55 Foreign Trade Offices Pécs Győr Veszprém Eger Debrecen Budapest Szeged 8 Representative Offices in the border regions of neighboring countries

20 Investment Promotion of ITD Hungary All-inclusive Support for Foreign Investors Project- Preparation Customised information about the economy, market trends, taxes, incentives Sector specific information Recommendation on locations and site visits Liaising with authorities, local and regional bodies and service providers Implementation After-care Assistance to setting up a company Assistance to licensing and permitting procedures Advice on available grants and tax incentives Identification of suppliers and subcontractors Assistance to organising media coverage and events Support to reinvestments Lobbying for the improvement of the business environment in Hungary

21 Trade Development Services of ITD Hungary Business meetings/forums for different sectors Organizing business meetings for Hungarian companies with foreign partners (on selected markets) Business Matchmaking Partner search for Hungarian exporters in special sectors (automotive industry, ICT, machinery etc.) Participation in different international exhibitions (with Hungarian booth) Organizing professional business forums Presentation of companies or special products to potential subcontractors Organizing individual company presentations in the special target market Presentation of a company within the framework of one-to-one meetings with several companies, selected according to special preferences Trade development tenders Consultation for start-up companies Promotion of capital export Information about the conditions of different tenders Brochures, publications

22 Contacts Hungarian Investment and Trade Development Agency (ITDH) H-1061 Budapest, Andrássy út 12, Hungary Mr. András Hajdu, Head of Department, Business Development Directorate Phone: (36 1) Mrs. Szilvia Werly, Senior Consultant, Business Development Directorate Phone: (36 1) Mr. Gábor Grenczer, Team Leader, Investment Promotion Directorate Phone: (36 1) Internet:

23 Thank you for your kind attention! Hungarian Investment and Trade Development Agency (ITDH) H-1061 Budapest, 12 Andrassy ut, Hungary Phone: (36 1) , Fax: (36 1) Internet: