Press release

DZU Joint Stock Company - 50 years leader in industrial production

With a total budget of EUR 2.4 million (HUF 860 million), the production capacity of VIDEOTON EAS plant in Stara Zagora will almost double in the near future. 50% of the investment will be implemented within the framework of the Hungarian Government's Foreign Market Growth Support Scheme.

The Ministry of Foreign Affairs and Trade of Hungary and HEPA Hungarian Export Promotion Agency has launched a program to support the foreign market expansion of Hungarian corporations. Within the framework of this program, VIDEOTON successfully applied for a grant to modernize its plant in Stara Zagora, Bulgaria, aiming to increase production capacity. The complete development idea, if fully realized, including the necessary building extensions and modernization, could result in further investments of similar value.

On January 21, 2022, in the production facility of VEAS in Székesfehérvár, Péter Szijjártó, Minister of Foreign Affairs and Trade of Hungary, presented the certificate of the grant to Attila Bakk, Managing Director of VEAS Bulgaria. Péter Lakatos, Co-CEO of VIDEOTON HOLDING, highlighted in his speech at the ceremony that the company's international investment is an important step forward since VIDEOTON's production performance has grown beyond the country's borders. Ottó Sinkó, Co-CEO of VIDEOTON HOLDING, noted that the plant in Bulgaria, already manufacturing, will be modernized in order to strengthen VIDEOTON’s role in the international market, and there is a need for a production site of favorable manufacturing costs to boost VIDEOTON's competitiveness.

VIDEOTON’s Bulgarian holding, of four companies, hiring 1,250 employees, has been operating for more than 20 years, and the group aims to use the funds from the grant for realizing the production of a similar standard to that of the cutting-edge VIDEOTON EAS production facility in Székesfehérvár.

In his speech, Péter Szijjártó, Minister of Foreign Affairs and Trade of Hungary, emphasized that the operation of VIDEOTON is of paramount importance not only for Székesfehérvár, but also for the national economy, furthermore, VIDEOTON HOLDING, as one of the largest, exclusively Hungarian-owned group, is a role model for all Hungarian companies.

After the ceremony, the ministerial delegation visited the modern electronics manufacturing facility of VIDEOTON EAS, which was opened in 2019.

The beginning was set on November 19, 1968, with a decision of the Council of Ministers for establishment of a plant for Peripheral Devices. The construction began in 1969, and shortly thereafter the plant grew rapidly into the largest company in Bulgaria in the field of electronics production.

In the mid-1980s, DZU became a powerful factor in the Bulgarian economy with staff of about 10,000 people and annual income of more than 2 billion US dollars. Working in a close cooperation with R&D institutes for computing equipment, technical cybernetics and robotics, based in Sofia and Stara Zagora, DZU Group contributed to the development of advanced technologies for the production of complex electronic equipment, which was exported to Central and Eastern European countries and Russia.

The product range included microprocessor control devices for industrial robots operating in flexible automated production sites. The manufacturing of the high precision subassemblies built in the disk drives memories required specific air-conditioned environment and the appropriate technological equipment. For this purpose clean rooms class 100, 10 000 and 100 000 were built to ensure the high standards of cleanliness for assembly and setting of the magnetic heads and storage devices.

The political changes that occurred in 1989, put an end to the success story - DZU lost its markets, traditional production declined significantly and the plant went into financial hardship.

Salvation came in June 1999, when the Hungary-based Videoton Holding acquired the company. The new owner, ranked as one of the top 6 largest European electronics vendors and at # 30 on the MMI Top 50 EMS list, restructured DZU and made it a stable and successful company once again.

Videoton introduced a new business model – Contract Manufacturing, providing to foreign partners flexible technological base and facilities, reduced investment risk and costs, wide range of processes and industrial park services, quick startup of the transferred project, qualified middle management and labor.

New opportunities arose to do business with world-renowned multinational companies for Printed Circuit Boards assembly, production of industrial applications in the energy sector, small household appliances and consumer goods, tooling, plastic parts manufacturing etc.

DZU provides customized solutions for its business partners from part manufacturing through final assembly to the transportation of the finished goods, based on the competitive advantage of the vertically integrated manufacturing services, design and engineering support, Supply Chain Management.

The financial stability, high flexibility, cost – competitiveness and customer – oriented approach add even more values to the company’s profile.

The experience accumulated in these long-term partnerships, the expanded product range and diversified manufacturing services resulted in re-organization of the customer portfolio of the company.

In recent years, the objective is not having as many customers as possible, but having ‘good customers’. They are leaders in technological development and innovation, boosting new ideas and having ambitions for growing market share. Such customers are not exclusively focused on receiving low cost offers, as they need flexible and proactive suppliers, having innovative mindset, who are able to provide them complete Engineering support and product management, including NPI capabilities.

In response to new market needs, the company was restructured in 2017, so that the core industries were focused in self – managed business entities within Videoton Bulgaria group:

Videon Bulgarian Holdings EOOD: Mechanical and Electromechanical assembly of electrical devices

VEAS Bulgaria EOOD: Electronic Assembly Services - PCBA and Electromechanical assembly

VT Bulplast EOOD: Thermoplastic and Thermoset parts manufacturing; Tool Design & Manufacture & Repair

These companies offer customers complexity and high level of service, innovative and flexible solutions for process and cost optimization, as well as participation in co-development projects.

Videoton Bulgaria Group welcomes the upcoming golden jubilee with satisfaction from the good financial results and looks forward to the business challenges in the coming year.