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HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

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BUSINESS JOURNAL BUDAPEST

VOL. 25. NUMBER 3

FEBRUARY 10 – FEBRUARY 23, 2017

.hu

3

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Budapest Business

Journal | february

10 – february

23, 2017

ial Reentport Spec Office Equipm

Practice 16 Thinking and ics 17 Concept Blends CEU iLab – new g Around Ergonom Design Revolvin ees19 Today’s Office ch to Employ a Chilled Approa Relax! Taking

interior Furniture & illusive design, the paperless search for the ent evolution office, equipm of Gen-Y ds nee the and

SPECIAL REPORT

Office Equipment SPECIAL REPORT

Office Furniture a Design Challenge in Hungary Setting up a business and keeping it in the black, or simply making ends meet, by solely designing office furniture is still a long shot for most Hungarian designers. 16 SPECIAL REPORT

Printing Solutions Help Green Drive The use of paper may be slowly declining thanks to digitalization and growing environmental awareness, but the long-promised paperless office remains a distant utopia for now. 18

SOCIALITE

Snapshots of ‘Radical Eye’ Photography A major exhibition at the Tate Modern in London drawing on the collection Elton John, features the work of three giants of

Hungarian photography.21

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Bringing Added Value to the Countryside

E SS BUSIN

Hungarian Investment Promotion Agency President Róbert Ésik discusses another record-breaking year in attracting FDI to the country, and plans for NEWS spreading the benefits further Industrial Output Barely afield. 10

Grew Last Year

As expected, Hungarian industry performed poorly in 2016, after producing relatively large scale growth a year before. The outlook is improved for this year, even more so for 2018.3

NEWS

Restoring Market Positions a Hard Slog Bilateral Russo-Hungarian trade has dropped markedly amid EU sanctions; it may prove difficult to push economic activity back up to pre-crisis levels.5

2017. 02. 08. 22:24

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Budapest Business Journal | february 10 – february 23, 2017

BBJ

THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall NEWS EDITOR: Christian Keszthelyi EDITORIAL STAFF: Zsófia Czifra, David Holzer,

Levente Hörömpöli-Tóth, Gary J. Morrell, Claudia Patricolo, Rob Smyth, Ágnes Vinkovits.

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Address: Madách Trade Center 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, www.bbj.hu SUBSCRIPTIONS: Budapest Business Journal 1 year 6 months 3 months

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News Services Hungary A.M., Energy Today, Regional Today 1 year, from HUF 179,000+VAT 6 months, from HUF 104,900+VAT 3 months, from HUF 58,900+VAT Book of Lists 2015-2016: HUF 19,120+VAT DigiBOL HUF 39,900+VAT Call +36 1 398-0344 or email circulation@bbj.hu What We Stand For: The Budapest Business Journal aspires to be the most trusted newspaper in Hungary. We believe that managers should work on behalf of their shareholders. We believe that among the most important contributions a government can make to society is improving the business and investment climate so that its citizens may realize their full potential.

REWARDING Expat Excellence

I

f all goes according to schedule – and as I am hosting the event, it pretty much falls on my shoulders to make sure it does go according to schedule – the third BBJ Expat CEO of the Year will be named at around 10 p.m. tonight at our annual awards gala at the Corinthia hotel Budapest.

At the time of writing, and despite all conspiracy theories to the contrary, I have no idea who the winner will be; indeed, I won’t know until the envelope is opened and the name read out. The final decision will be made by the jury, of which I am not a member, just a few minutes before the gala starts.

What I can tell you is that the winner will be a Dane.

Or a Dutchman. Or a German. Or a German. Or a Brazilian-German. It’s an eclectic mix, which shows how wide the expat genepool is here in Hungary. If you want to know more about the shortlisted candidates, there was a major article in the last issue of this newspaper.

And given our background as an English-language newspaper, I quite like the idea that there isn’t a Brit or an American among them. Indeed, the award hasn’t even gone to a native English-speaker thus far. Our first winner, Javier González Pareja (then CEO of Bosch Magyarország) was Spanish; last year’s winner, Jost Lammers (of Budapest Airport), is another German. This year there isn’t a woman among

the shortlisted candidates. That should not be seen as suspicious (given that one of our jury members is herself a female CEO, it would be very odd to suggest any kind of male chauvinism going on here); it was simply how things worked out on this occasion.

The award was launched three years ago (at a time when it was not uncommon to see attacks in the press against multinational firms here in Hungary), with the deliberate aim of recognizing the contributions that the very best expat CEOs make to improving the competitiveness of the country, and thus the lives of everyone here.

It is not, and never has been, a suggestion that foreign bosses are better than their Hungarian peers.

There are many top-notch Hungarian CEOs, and a few that are world-class. They are rightly honored and acknowledged, and we felt the best expats should be too. They bring with them a different set of experiences, different skill sets, different company and national cultures, and different leadership styles forged from a combination of all that. Not better, just different, and that diversity – a word that came up a lot in discussions with our CEOs –, when mixed with the local talent, can make real magic.

Just who the winner is, and a deeper insight into what they bring to the daily operation of their company, will be revealed in our next issue.

Fortepan.hu / Tivadar Lissák

MTI / Péter Lakatos

The Budapest Business Journal, HU ISSN 1216-7304, is published bi-weekly on Friday, registration No. 0109069462. It is distributed by HungaroPress.

Reproduction or use without permission of editorial or graphic content in any manner is prohibited. ©2017 BUSINESS MEDIA SERVICES LLC with all rights reserved.

THEN & NOW

BBJ-PARTNERS

Budapest suffered heavy bombing during World War II, particularly in the latter years. The black and white picture taken earlier, in 1942, shows a bomb crater near the Heart of Jesus Church in District XII. It is not uncommon for unexploded ordinance from the war to be unearthed during building works, even today. On January 31, a 50 kg bomb was found in the same district, requiring the evacuation of all people for a 200 meter radius while it was disarmed by army bomb disposal experts.

VISIT US ONLINE: WWW.BBJ.HU

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2017. 02. 08. 22:25

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News

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///macroscope

Industrial Output Barely Grew Last Year

ZSÓFIA CZIFRA

H

ungary’s industrial production grew at a somewhat faster pace in December, the Hungarian Central Statistical Office reported. Raw data shows that the volume of industrial output was down by 0.5% in the last month of the year, compared to the same month a year earlier; however, production rose by 1.9% adjusted for working days. The pace in December was faster than the 0.7% rise seen in November. This was the second consecutive rise in production, following two months of decline in September and October.

On a monthly basis, working-day and seasonally adjusted industrial output grew by 0.5%, down from 0.8% in November.

But when looking the whole year data, a drastic setback is seen: in 2016, industrial production advanced only a poor 0.9%, compared to 7.4% in 2015.

In spite of the favorable macroeconomics circumstances, last year’s industrial output was weak, agreed Takarékbank analyst Gergely Suppan. The performance of the vehicle manufacturing segment was especially poor, which can partially be explained with the switchover to new models in the local automotive factories. Output can liven up in the next few months, due to the improving economic environment both in Hungary and in Europe, but the planned production setback at Audi might slow down the pace. The higher employment rate in manufacturing also signals an upturn in industrial production, Suppan said, adding that this year, the launch of new capacity, combined with a low base, could lift industrial output to 3.5-4%. However, notable acceleration can only be seen in 2018, when further new capacities are expected to be launched.

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MTI / Csaba Krizsán

As expected, Hungarian industry performed poorly last year, after producing relatively large scale growth a year before. The outlook is improved for 2017, but the we are unlikely to see a real breakthrough until next year, analysts warn.

About 1,500 of the 11,500 workers at Audi Hungaria’s plant in Győr held a two-hour strike recently, following failed wage negotiations. Péter Lőre, director of communications at Audi Hungaria, said that the strike resulted in a drop in production but will not affect deliveries to customers. The plant puts out 8,000 engines on a daily basis. The Hungarian auto industry, which is going through a process of preparing for the introduction of a series of new models, was seen as a drag on the country’s industrial output in 2016.

Better figures are expected this year and, most especially, next.

Mixed Expectations for Industry As for this year’s performance, expectations are mostly optimistic, however, the sector faces several uncertainties. ING Bank chief analyst Péter Virovácz told news agency MTI that the performance of Hungary’s industrial sector in 2017 would largely depend on how other segments could counter the drop in production at Audiʼs Győr plant.

The number of shifts there has been cut from three to two as it makes the changeover to a new model.

On the positive side, it seems that the economic sentiment in Europe is improving, with a strong domestic demand. Also, order stock has slightly risen in the past few months, and the car manufacturing segment might utilize its capacities better, thus moving forward industrial growth.

On the other hand, large-scale capacity expansions are planned from the second half of next year, therefore its effects can only be seen at the end of 2018.

Also, car manufacturers started this year with reduced capacity. On top of this, the European Union said it would bring forward the implementation of stricter environment protection inspections, the so-called Real Driving Emission tests. If car manufacturers do not have enough time to execute the necessary developments, this could cause some 15% setback in production in Hungary, a state secretary of the National Development Ministry has estimated. As the contribution to the gross domestic product

provided by the local car manufacturers is around 4%, that estimated 15% drop in production might result in a 0.5 percentage point decrease in the GDPgrowth, experts calculated.

Also, while the order stock did rise slightly, it is still historically low.

However, car manufacturers are yet to announce their capacity plans for this year, and this could lift expectations for the industry. The detailed figures for industrial output for December will be published mid-February.

Central Budget Starts Year in Good Shape The central subsector of the state budget closed January with a surplus of HUF 123.4 billion, a favorable first-month figure in light of similar data from recent years. The last time the January budget surplus was close to this figure was in 2012, with HUF 107.3 bln.

This January, the central subsystem, social security funds and extra-budgetary state funds also posted surpluses of HUF 65.9 bln, HUF 25.5 bln and HUF 32 bln, respectively. In January 2016, the respective balance was also positive, albeit with a smaller surplus of HUF 92.4 bln.

When comparing data to last year’s figures, it turns out that it is mainly tax revenues that are in the background of this year’s high surplus.

In addition, fiscal revenues related to state assets also increased compared to the previous year. It is very likely that the one-off income deriving from the sale of state-owned farmlands contributed to the

high surplus in the first month of the year.

Expenditures were up substantially at chapter-managed appropriation allocation funds, concerning expenditures related to EU funding for the operative programs of the 2014-2020 period.

This year’s balance is expected to be determined by the reduction of valueadded tax on some basic foods and lower payroll taxes, the government’s unprecedented housing incentives and significant minimum wage hikes, reads a press release on the Ministry for National Economy’s website. “Upbeat macroeconomic predictions for 2017 signal that the Government’s ESA deficit target of 2.4% of GDP is achievable”, concludes the ministry.

Numbers to Watch in the Coming Weeks Construction data for last December and also for the full year will be published on February 13 by the Central Statistical Office.

The very next day, while heats may be beating a little faster as a result of Valentine’s Day Celebrations, all eyes will be on the flash estimate of Q4 GDP data; consumer prices for the first month of the year and detailed industrial output figures will also be released on February 14. On February 20, we will find out how much money Hungarians made in 2016, and a few days later, we will learn how they spent it in December.

2017. 02. 08. 22:25

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Budapest Business Journal | february 10 – february 23, 2017

Putin’s Semi Regular Visit Seen Using Hungary as ‘Message Platform’

CHRISTIAN KESZTHELYI

“Hungary values its cooperation with Russia”, Orbán said during a joint press conference with Putin, whose safe landing at Budapest’s Ferenc Liszt International Airport was secured by Gripen fighter jets of the Hungarian Air Force once in Hungarian airspace, with the special approval of NATO. Orbán attacked the West of for its “strongly antiRussian sentiment”, adding that he sees “anti-Russian politics have become the fashion”. Orbán stressed again in relation to the Russian sanctions that issues that are not economic in nature should not be

100% loan, Gergely Botár/kormany.hu

While Hungary’s Prime Minister Viktor Orbán, once again, attacked economic sanctions against Russia during President Vladimir Putin’s official visit to Budapest on February 2, the Russian President’s trip to an EU and NATO member drew widespread criticism from Western powers for giving the leader a “message platform” from which to justify his views about the Ukraine crisis.

thanks to the Hungarian government, which is paradoxically always referring to sovereignty,” Zgut told the BBJ. Another step in increasing Hungary’s dependence on Russia would be if the latter country were to finance the expansion of Paks nuclear plant with a

Orbán walks with Putin and his delegation through the Parliament Building on February 2. punished via economic measures, as this only results in “everyone suffering and everyone losing out”. He noted that he has difficulties imagining Hungary being successful if the country does not develop “open, strong and fruitful” economic and trade cooperation with “the major players in the global economy”.

Strategic Move This was the second time in the past three years that Putin has received a warm welcome in Hungary, a fact that is seen as a strategic move by many. “Hungary has become an entry point to the EU for Putin, who has been persona non grata since the Ukrainian crisis erupted,” Edit Zgut, analyst at Political Capital Policy Research & Consulting Institute, told the Budapest Business Journal.

“He could use Budapest as his own ‘message platform’ about the EasternUkrainian crisis for the second time, blaming Kiev with the one-sided violation of the Minsk Agreement,” she added. Not surprisingly, Orbán’s opposition to the economic sanctions as an answer to a

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matter of politics also seems to find favor with the Russian president. “It was also important for Putin that, together with Orbán, they made a united stand against the EU-sanctions. The Hungarian PM has technically assisted him by arguing that non-economic problems cannot be solved with economic means and by this he denied any economic or political solidarity with Ukraine,” Zgut said.

The political analyst suggested that Orbán’s criticism of the EU in the issue of Russian sanctions is in line with the president’s plans for weakening the bloc.

“One of Putin’s most important strategic goals is to disrupt EU unity through disinformation and influence exerted on the European public. We should take this into account when we examine the nature of the bilateral relations that are not based on truthful trust but instantaneous interests,” Zgut added.

The Sovereignty Paradox During the meeting, the two leaders were reported to have discussed existing deals, as well as regional cooperation agreements, such as the upgrade of Hungary’s sole nuclear power plant in Paks, and also the long-term RussianHungarian gas deal amended last year, and which expires in 2021.

Orbán promised that, in order to “maintain open and transparent relations with Russia”, the two countries will revisit negotiations on the transport of gas from Russia to Hungary annually “at the highest level”. Orbán also remarked that Hungary’s supply of natural gas is

guaranteed up to

2021,

promising that negotiations between the two countries will soon commence for the period after 2021. Zgut, for one, isn’t sure that is such a good idea: “Hungary’s energy dependence on Russia will increase in the future –

instead of the previously agreed 80%, as Putin said he was ready to do so. Although the European Commission has been investigating whether Hungary’s plans of using Russia as an 80% creditor is in line with EU competition law, unnamed EU sources have been cited in media reports suggesting that the EC could soon greenlight the credit line. However, a little before Putin’s visit, Hungary’s Minister of Foreign Affairs and Trade Péter Szijjártó insisted that the Russian credit would only be called down for the upgrade if it is the best offer on the market.

Trump-Putin-Orbán Relations With the election as President of the United States of America of Donald J. Trump, seen as being far warmer towards Russia than the Obama administration, Hungary’s relationship with both its most powerful neighbor and its most powerful ally could well be on an upward curve.

Nonetheless, no far-going conclusions should be made at this point, until the development of bilateral relations, as there are still many strategic conflicts of interest between the United States and Russia, such as the development of a missile defence system, Zgut said.

“Short-term tactical détente seems possible, partly because America wishes to place a bigger emphasis on the fight against ISIS, in which they presumably count on Russiaʼs increasing contribution,” Zgut said.

However, “a worst case scenario would be if the Trump administration struck a bilateral deal with the Kremlin regarding the conflict in Ukraine, a solution openly endorsed

by Minister of Foreign Affairs and Trade Péter Szijjártó, it would take the form of a second ‘Yalta Conference’ excluding smaller states, sidelining Hungarian interests in the region,” Zgut concluded.

In light of the overall Hungarian-U.S. relationship, Zgut is less optimistic about Trump’s presidency than the Hungarian government seems to be, though. “For Trump, international relations is a zero trade game, and if the Hungarian government wants to deal with issues in a bilateral manner, Hungary, as a small export-oriented country, could easily be ground up by stronger players,” she says. That said, as far as ideology is concerned, there are similarities, she admits. “Orbán agrees with Trump’s immigration-limiting measures and welcomes everything the president says,” she says, but notes that Trump seems to have high expectations of the EU’s dissolution, which would not be in the interests of Hungary, the analyst suggested.

2017. 02. 08. 22:25

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Budapest Business Journal | february 10 – february 23, 2017

Restoring Hungary’s Market Positions in Russia Requires Strong Competitiveness

Bilateral RussoHungarian trade has dropped markedly amid, among other things, EU sanctions imposed against Russia. New joint projects are now taking shape, but even after any eventual lifting of the trade embargo, it may prove difficult to push economic activity back up to pre-crisis levels.

LEVENTE HÖRÖMPÖLI-TÓTH

Russian-Hungarian economic relations have been suffering gravely since the summer of 2014, when the European Union imposed trade sanctions against the Russian Federation in the wake of the Ukraine crisis; Hungary, as an EU member state, has been duly observing those sanctions, although it has never been voluble in its praise of them. Together with restrictive countermeasures adopted by Russia, the sanctions have pushed Hungarian export losses to such heights that, according to Minister of Foreign Affairs and Trade Péter Szijjártó, the grand total may account for around

USD 6.7 billion dollars.

The recent visit of Vladimir Putin to Budapest, on his third meeting with Prime Minister Viktor Orbán in less than two years, was yet another occasion to turn the limelight on such negative figures, and prompted the Hungarian Premier to say that issues not related to the economy should not be resolved via economic measures. In the light of such statements, pundits were not exactly surprised to hear that Hungary would be pleased to see the EU embargo terminated and that several business projects under Russian-Hungarian cooperation are ready switch up into a higher gear soon.

value of imports fell drastically due to the steep drop in oil prices. In parallel, a structural slow-down of the Russian economy took place, which adversely affected demand for Hungarian goods.

“It must be noted that Russia was not a top export destination for us in the first place: it ranked only tenth among export target countries even before the embargo, and

80%

of Hungary’s exports head to the EU anyway,” Deák points out. According to estimates of business analysis portal portfolio.hu, outward trade from Hungary to Russia is said to have gone down by a little more than USD 1 billion.

Nikolai Liventsev, head of the trade mission of the Russian Federation, prefers to focus on future perspectives as it continues “working hard – together with our Hungarian partners – to create a very positive ‘environmentʼ for substantial development in bilateral cooperation”, where “the most promising areas of cooperation are energy, agriculture, chemical industry, power and transport engineering, pharmaceuticals, construction”. Joint projects in the food industry, healthcare and tourism are also regarded as strategic.

However, there are uncertainties waiting on the road back towards the record bilateral foreign trade figures of 2008 that amounted to USD 13 bln. “The volume of our foreign trade depends not only on the general economic situation in the world, but the world economy is also much influenced by politics,” Liventsev says. “I would prefer not to make any forecasts at the moment.

However, we see a very positive trend in our relations.”

A lot will be up to the health of the Russian economy, which is critical in order to fuel demand for foreign

András György Deák, a senior research fellow at the Institute of World Economics of the Hungarian Academy of Sciences. goods. “It is feared that structural problems will continue to exist resulting in stagnation,” Deák of the Hungarian Academy of Sciences says. “In the case of this scenario, dynamic Russian growth rates of 6-7% from ten years ago are out of the question.”

Hungarian Farmers Returning to Market A particularly hot issue is how Hungarian farmers can make it back to the Russian market once the restrictions are lifted, since they were hit hardest by the sanctions. As Liventsev points out, in the meantime companies from other countries have replaced European suppliers on the Russian market. “Moreover, Russian agriculture and food industry are absolutely capable of produce the stuff that earlier used to be imported,” he adds. In the process of restoring market presence, the key factor in the free market is competitiveness.

“Demand and supply ratio is of

Future Projects

The Value of Imports Both countries would surely benefit from the ban being lifted, but it is a matter of debate exactly to what extent the sanctions can be blamed for lost trade. As András György Deák, a senior research fellow at the Institute of World Economics of the Hungarian Academy of Sciences explains to the Budapest Business Journal, the bulk of the decline in trade volume stems not from sanctions, but from the fact that the

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critical importance,” Liventsev says.

“We must admit, that the chances for export-orientated Hungarian farmers to rebuild their positions on the Russian market after the restrictions are over will depend greatly on the conditions mentioned above. We are always open to discuss any issues related to mutually beneficial cooperation.”

Deák adds that friendly state-level political relations matter only in the case public procurement-based or technology-related investments: in all other cases, competitiveness alone rules. “The right scale and the right product volume are vital for Hungarian companies to succeed. You don’t stand a chance in Russia by offering monthly deliveries of 70,000 bottles of wine, for instance. You need at least 400,000,” he says. “There have been positive developments in this regard, as fragmented production in Hungarian agriculture has undergone a good amount of concentration, which will help market entry not only in Russia, but other big markets such as China or Turkey as well.”

Nikolai Liventsev, head of the trade mission of the Russian Federation.

But what about projects announced after the Orbán-Putin meeting, like those that see Hungarian companies getting opportunities in the Russian water management sector, or focuses on a joint effort to deliver railway technology under a public procurement procedure in Egypt?

Deák believes these are very positive initiatives, yet they are not of large enough volume. “What makes a difference in terms of the GDP is cooperation in energetics, namely natural gas and nuclear energy,” he says. “In the case of the enlargement of the Paks nuclear power plant, however, the biggest question mark is how the Hungarian government will be able to handle the heavy financial burden related to the investment, since it may boost public debt by up to 1.5-2% per year.”

2017. 02. 08. 22:25

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News

Budapest Business Journal | february 10 – february 23, 2017

Orbán Could Meet Trump at NATO Summit Hungary’s Prime Minister Viktor Orbán could have the chance to meet U.S. President Donald J. Trump in May, after Trump agreed to meet the leaders of NATO member countries after speaking with NATO Secretary General Jens Stoltenberg, according to a White House press announcement.

The announcement said that during a telephone call, Trump and Stoltenberg “reconfirmed the importance of the alliance in troubled times”, which comes as a slight surprise as Trump had criticized NATO on numerous occasions recently, with particular regard to what the new president sees as the United Statesʼ unfair share in the financing of the organization. At the summit, Orbán may have the chance to meet personally with Trump, even if only for a short unofficial dialogue.

The Hungarian prime minister was one of the first leaders in the world to endorse Trump during the American elections, praising the then candidate for his stance on “illegal migration”.

MTI/Attila Balázs

///in brief Following Trump’s election, the two leaders held a phone conversation in which Trump reportedly invited Orbán to Washington, although no official date has yet been set.

Lego Inaugurates Social Space at University of Nyíregyháza

WSJ Closing its Budapest Bureau The Budapest bureau of The Wall Street Journal is being closed by publisher Dow Jones & Co. as part of its downsizing in Europe and Asia, in an attempt to reduce expenditure.

Due to falling revenues, Dow Jones has launched a program it calls “WSJ 2020”, Hungarian online daily index. hu reported. As part of the overhaul of its operations, Dow Jones is establishing offices covering the whole continent and closing independently operating units, as well as leaving some news areas, the Hungarian daily added. The Wall Street Journal’s plans were announced in October.

“These are challenging times. I thank you in advance for your patience and understanding as we set about the difficult task of continuing to build our

digital future while responding to the decline in traditional advertising,” Dow Jones Chief Executive William Lewis said at the time, according to wsj.com.

Local correspondents Margit Feher and Veronika Gulyás confirmed the news of the Budapest closure in posting the following joint statement on their public Facebook timelines: “Dow Jones &Co., the publisher of The Wall Street Journal, is closing its Budapest bureau as part of its downsizing in Europe and Asia. We are very sad about this but will always be proud to have been part of the DJ/WSJ family.”

Students playing with Lego bricks in the recently inaugurated Lego social space at the University of Nyíregyháza, under a cooperation agreement signed in November with the manufacturer of the construction toys. Now the corridor where students used to chat, read or work on laptops has been expanded, with a special place added for Lego toys. At the inauguration, Péter Polányi of Lego Manufacturing Kft. encouraged students to use the space, which he said should be seen as an arena for creativity. He added that Lego Hungary is looking for an envoy for Lego among the university students, whose aim would be to further strengthen the relationship between the giant and the university. The town of Nyíregyháza (230 km northwest of Budapest) is host to a Lego plant where most of the company’s global output of Duplo bricks are manufactured.

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Business ///news

Egis Acquires Russian Drug Portfolio of Croatian Peer French-owned Hungarian drugmaker Egis on February 6 announced its acquisition of the Russian skin care and women’s healthcare products portfolio of Croatian peer Jadran-Galenski Laboratorij (JGL), Hungarian news agency MTI reported. Egis targets a “big jump” in sales as a result of the acquisition. Egisʼ exports to Russia came to HUF 31 billion in its 20152016 business year.

Apollo Tyres to Launch Vocational Training in Hungary More than 50 elementary school students visited the open day of Indian tire maker Apollo Tyres on February 2 in order to learn

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PayPal Launches PayPal.Me Service in Hungary

PayPal is launching its personal peer-to-peer (P2P) payment method PayPal.Me in Hungary, according to a press statement sent to the Budapest Business Journal by the global online payments system operator.

Individuals registered with PayPal can create their own PayPal.Me web address, through which they can receive payments, whether it is money from family members, friends or businesses paying for freelance work.

PayPal argues that dusk is falling on the era of cash, and with its perceived disappearance, digital payments will become more frequent and favorable.

The PayPal Money Habits Study found that while paying in cash is still preferred, mobile payments are on the rise, with P2P payments increasingly popular for paying back small debts. “Given that 93% of the global study’s participants hate owing people money, with PayPal.Me you don’t have to worry about owing money to a friend or family member again,” according to PayPal. “Let’s face it – cash is outdated,” said Matt Komorowski, Managing Director of PayPal Northern Central Europe.

“When using PayPal.Me, you have a personal, easy way to transfer money among friends and family. It is also an amazing way for businesses, freelancers and charities to get paid – one link, quick payment, and it’s done,” he added.

EasyJet Adds AmsterdamBudapest Flight to Schedule

BBJ EXPERT OPINION

Dome Facility Services Group has won the ‘Facility Management Company of the Year 2016’ Award Dome Facility Services Group was awarded the title Facility Management Company of the Year 2016 at the annual iroda.hu real estate gala held on February 2 at the Várkert Bazár in Budapest.

In 2016 Dome Group won an industrial FM commission for 500,000 sqm, entered the international market and extended its scope of activities.

Dome Facility Services Group has offered integrated facility management (FM) services on the Hungarian real estate market for more than 13 years.

Besides that, energy and interior construction services are also offered to clients under the brand names Dome Energy and Dome Fit-out. The Dome Real Estate Consulting service branch provides clients with full scale real estate and FM consulting services.

Following its continuous and dynamic development, Dome Group has become a key player of the FM market in Hungary.

Gábor Décsi MRICS, managing partner 2016 was a milestone year for Dome in many aspects. The proudest moment was when Dome won a major vehicle industry FM commission in Győr in November 2016; it represents one of the largest interlaced facility management commissions in Hungary, on an area of almost 500,000 sqm.

Dome also entered the international market in 2016, because as a founding member of the European federation 21st FM it offers – with its partners – integrated, united and tailor-made services for global companies in seven countries in Central, Eastern and Southern Europe.

2016 also brought remarkable changes in the organizational structure, because a real estate consulting branch was established, which offers real estate and facility management consulting services to corporate clients including special tasks, like the preparation of technical due diligence studies, technical surveys, cost optimization and real estate utilization.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

After the exit of ride-sharing app operator Uber from the Hungarian market, the traffic of Hungarian taxis is thought to have increased by 50-60%, Miklós Tamás, the chairman of Hungarian taxi firm City Taxi, told Hungarian daily Világgazdaság. The chairman told the paper that orders for a single cab have significantly increased since Uber and similar service providers that “operated illegally” exited the market. According to Tamás, some drivers serve 16-20 customers on a daily basis, while before Uber’s departure the number was around 12-14. Uber left the market last year when the Hungarian government decided to tighten the regulatory environment related to personal transport, after taxi drivers held a series of strikes and road blockages against Uber and similar service providers. Uber left claiming its business model was not ready to conform to the latest regulations.

However, soon after a similar service provider named Taxify entered the Hungarian market, and another is expected to arrive soon in the shape of Slovakiaʼs Hopin, which Hungarian online daily index. hu describes as providing a service essentially similar to Uber.

about jobs in the industry as well as the corporate culture of the international company, according to a press statement sent to the Budapest Business Journal. Eighth grade students have until February 15 to hand in their applications for tire technician and tire manufacturer majors starting in two vocational schools in Heves County, in northern Hungary.

Those students who enter the dual education system in September will have the chance to gain practical knowledge at Apollo’s state-ofthe-art plant in Gyöngyös under the guidance of experienced professionals. This is the second year the industry education programs have been arranged in the cities of Heves and Gyöngyös.

Business

The first flight of easyJet on its Amsterdam-Budapest route touched down at Ferenc Liszt International Airport on February 6.

The addition is easyJet’s eighth destination from the Hungarian capital. The British low-cost airline has been expanding its Budapest route network at a fast pace, a press statement observes, and also launched two new destinations – to Venice and Lyon – last year. The Airbus A320 operated by easyJet carries passengers between Budapest and Amsterdam three times a week. Departures from Budapest during the winter schedule period are offered on Monday, Wednesday and Friday, at 10:35 a.m. each day. After less than two-and-a-half hours, the flight lands at 12:55 p.m. at Schiphol, the main international airport of the Netherlands.

Company Uber’s Exit Boosts Hungarian Taxi Traffic

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HOTCO: Budapest Attracting More Major Hotel Investments Budapest is currently the city with most hotel rooms under construction in the whole of CEE, with Deutsche Hospitality and NOVUM Group announcing plans to build their first facilities here. A series of cultural and sporting events as well as the 2024 Olympic bid are all fuelling optimism for the future.

LEVENTE HÖRÖMPÖLI-TÓTH

With tourism producing some 10% of Hungary’s GDP, and tourist numbers steeply rising, nobody in the hotel industry has been surprised that the country has become a magnet for new investments. That phenomenon is underlined by Tophotelprojects, a company that collects data on projects in the pipeline.

“Hungary, hosting 25 projects, ranks third in the race with Austria leading the pack. But Budapest as a city is right now the number one place with regard to the number of rooms under construction,” Rolf Schmidt, managing director of Tophotelprojects, told the Hotel Investment Conference (HOTCO) CEE & Caucasus, which took place for the very first time this year, with Budapest the host.

Appetite for high-end facilities dominates the landscape: 51% of ongoing investments concern fourstar hotels, and 22% of them five-star premises.

“Hungary has huge growth potential in tourism and four regions have been identified by the government that will serve as flagship venues for further development,” said Dr. Gusztáv Bienert in his then capacity as government commissioner for tourism (he resigned two days later after becoming TOURISM PRODUCES 10% OF HUNGARY’S GDP.

25 HOTEL PROJECTS IN HUNGARY

51%

22%

Budapest has more hotel rooms under construction than any other city in CEE

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president of the Hungarian Swimming Association).

Those key destinations are Budapest, Balaton, Sopron and Tokaj (and their wider regions) where culture, spa and health tourism, conferences, sports and natural beauty are the main areas that are expected to help boost guest nights.

“It cannot be emphasized enough that there is a growing demand for five- and four-star hotels and that applies to the countryside, too, where there is only one five-star, namely in Sárvár,” Bienert said.

Reasons to Travel The Sziget music festival, the Hungarian Grand Prix F1 race, and the European Capital of Culture initiative all generate regular traffic, while other one-time events like the Soccer World Cup in Russia in 2018, the 2020 UEFA European Football Championship (held in 13 cities across 13 countries), and the Champions League final in Kiev, Ukraine in 2018 should all draw yet more tourists.

“We witnessed how the perception of our country changed after Euro 2012, which Poland co-hosted with Ukraine, and apart from the short-term results of 600,000 visits it proved to be a catalyst for a more internationalized image,” noted Marcin Herra, CEO and co-owner of EVolutio, a Warsaw-based management consultancy.

The same positive impact is expected of the 2024 Olympics should Hungary win. However, accommodation seems to be the most critical bottleneck, since Budapest lacks sufficient rooms at the moment.

“Regardless of the success of the bid, we do need more accommodation,” Iván Rózsa, director of communications of the Budapest 2024 bid admitted. “This summer the city will face a real stress test because some 10,000 athletes will arrive for the FINA World Aquatics

Championship, not to mention the fans following them. Meanwhile hundreds of thousands will stream to town because of Formula 1 and Sziget nearly simultaneously.”

IntercityHotel HOTCO was used as the occasion to make several key announcements about hotel investment projects on the Budapest market. Deutsche Hospitality revealed that its threestar IntercityHotel chain will make its Eastern European debut by 2019 with a project near Keleti Railway Station, part of a broader brand expansion that also takes in locations in Leiden, in the Netherlands, and Dubai, in the UAE. The eight-story IntercityHotel Budapest will have 300 rooms, six conference rooms, a restaurant and bar, plus 100 apartments in a separate building nearby.

Joachim Marusczyk, Managing Director of IntercityHotel GmbH is looking forward to the new opening.

“Budapest is a city with lots of potential.

We are delighted that our brand will soon be able to offer a centrally positioned and modern hotel in such an attractive metropolis.” Hopes for a profitable investment are further nurtured by the fact that Germany is the number one source of visitors to Hungary, with total bookings of just under 1.5 million overnight stays in 2015 according to Hungarian Tourism Ltd.

NOVUM Group Another announcement came from the Hamburg-based NOVUM Hotel Group.

The family-owned business has 128 hotels in 39 locations in Europe. In less than two years, a new landmark hotel, the Holiday Inn Vienna – South will open in the Austrian capital with 201 rooms.

The chairman of the UAEʼs Al Habtoor Group praised Hungary’s investment environment for the ease of doing business and the healthy returns on investment it offers in a speech at HOTCO. The Ritz-Carlton Budapest and the InterContinental Hotel are both owned by the Al Habtoor Group, which also recently acquired the Rumbach Center and the Dorottya Udvar office complexes in Budapest.

According to state news wire MTI, Khalaf Ahmad Al Habtoor (pictured, above) said: “Investments here are more rewarding than in any other parts of Europe, the United States, and the so-called established investment destinations. I believe that the more mature markets in Europe have peaked.

They yield very little returns, if any, and the red tape is a major put-off to investors.”

He added that Hungary “offers more incentives and subsidies to investors than the traditional markets in Europe and that gives Hungary the competitive edge over places like London, Paris, Frankfurt, and Berlin, which have all become too lax as other ‘less mature markets’ have gained “Our policy is to scrutinize every destination thoroughly before making an investment decision,” Resa Etmenan, CEO of the NOVUM Group said. “One to one and a half years: this is how long it takes to assess the features of new potential destinations based on cooperation with consultancies.” NOVUM specializes in three- to four-star facilities and Budapest is now on its radar too; indeed, it says it is planning to launch two hotel projects here, although no further details were revealed.

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Developing from a Record Year

For developer-owner Prologis, proof that the industrial real estate market had well and truly climbed out of the recession came when it was able to begin leasing its Szigetszentmiklós business park within two months of breaking ground. The news was doubly significant as the Prologis Park Budapest-Sziget was the first speculative build since 2008. But do not expect that to trigger a rush of similar speculative projects, country manager László Kemenes warns.

László Kemenes joined Prologis 11 years ago, starting as a leasing manager, but within one year had been promoted to country manager.

Prior to that he was with CBRE for four years, which followed his first job after graduation with a real estate consultancy firm from 19992002. He will turn 40 this year.

Hungary, with a 30% market share.

“We cannot forget that growing the portfolio means extra work in terms of customer management, because we are not the type of developer that sells a project as soon as it is stabilized.

We want to stay very close to our customers, to keep them happy through professional property management services,” the country manager explains.

BTS projects don’t only come from existing, satisfied customers, of course.

“In 2017 we are looking to meet the requirements of all those companies coming onto the market and looking for new space, for growth opportunities or consolidation opportunities. We have a land bank ready to go: during the recession we did a lot of work to make sure our land had all the building permits, zoning and infrastructure permits needed to launch construction as soon as a suitable client came along. We continue to look at further opportunities – of land and buildings – wherever they make sense. I’m very positive about the coming year-to-24 months. I think the market is in a good place; whatever the level of demand for industrial space, we are well placed to serve those requirements.”

ROBIN MARSHALL

“In 2014 we could see the recovery was there in terms of demand for industrial real estate in the greater Budapest area,” recalls Kemenes. “For those looking for immediately available space at that time there was actually quite a lot on the market. When we decided to launch our speculative development the supply was already limited: it was the right time, and that was proven by our success in leasing it. I am really proud of that.”

The first interest in Prologis Park Budapest-Sziget came from Inter Cars Hungária Kft. (the local branch of the largest passenger and truck parts dealer in Central and Eastern Europe), which initially leased 5,000 sqm, subsequently expanded to 7,000 sqm. Next on the scene was Waberer’s International Zrt., one of the largest freight forwarders in Europe.

“That was a very important step for us that brought great results. We were there for our customer when they needed immediate space, and because of our good relationship with them, we were able to do a deal to expand the park by another 21,000 sqm, which is built to suit [BTS] for Waberer’s International and will be handed over at the beginning of Q2 this year.”

Kemenes says the Szigetszentmiklós park will reach 170,000 sqm of warehouse and office space when the BTS project is completed, which represents the limits of the site. With that in mind, in January Prologis announced that it had bought two buildings on a neighboring plot, known as the M0 Central Business Park, which take the total capacity up to 200,000 sqm.

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“We continue to look at further opportunities – of land and buildings – wherever they make sense. I’m very positive about the coming year-to-24 months.

I think the market is in a good place; whatever the level of demand for industrial space, we are well placed to serve those requirements.”

No Sudden Rush But Kemenes cautions that this success won’t trigger any sudden rush towards speculative building projects, however good the market might look. “The reason for us to go ahead was that the timing was right at that point; the market fundamentals were there to do it.

Yes, we would consider doing it again, but the timing would need to be right.

In terms of development, BTS will be the focus for most market players. The last down turn made most of us more

conservative in terms of development strategy.”

Prologis released its European Q4 and yearend figures in mid-January (posting a 54% increase in volume over 2015 for leases and renewals, and seeing a 90 basis points increase in occupancy), with strong contributions coming from Hungary.

“Occupancy in Hungary is 98%, this is a huge contribution; our occupancy figure is a record high for Europe,” Kemenes says. In development terms, a total of 50,000 sqm was added (at Szigetszentmiklós and Prologis Park Hegyeshalom, near the Austrian border), and the two acquisitions at Prologis Park Budapest-Sziget added a further 31,000 sqm.

Prudent Approach The country manager says the company will continue to take a prudent approach to growth, looking for suitable land and buildings and focusing, for now, on its BTS approach. “We do not want to be the biggest in Europe; we want to do the best deals,” he explains. That said, Prologis is the biggest in its field in

Prologis Hungary currently owns six parks: Prologis Park Budapest-Batta (Százhalombatta) 39,000 sqm Prologis Park Budapest-Gyál: 152,000 sqm Prologis Park Budapest – Harbor: 132,000 sqm Prologis Park Budapest M1 (Páty) 67,000 sqm Prologis Park Budapest-Sziget (Szigetszentmiklós): 201,700 sqm warehouse and office space Prologis Park Hegyeshalom: 32,000 sqm Prologis Park Budapest-Üllő: 37,500 sqm (leased by Auchan) Prologis Budaors: 27,800 sqm (leased by Geodis)

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Investment, Reinvestment and Job Creation regional differences relative to the 4.6% unemployment rate, so Hungary has many regions where a lack of labor does not arise as a problem. A clear and positive recent trend, which is supported by the government, is that rural municipalities and regions are becoming increasingly attractive to foreign investors. Since unemployment is higher in these regions, more labor and better conditions are available to investors. Moreover, there are university cities in the eastern half of Hungary that may serve as knowledge bases for investments involving higher added value. The investment of Lego in Nyíregyháza, of Flowserve in Debrecen, and of BP in Szeged are excellent examples of investment in eastern Hungary in 2016. In the latter two cases, for example, the university background and the availability of a large, highly qualified workforce were clearly key factors.

Hungarian Investment Promotion Agency (HIPA) President Róbert Ésik talks to the Budapest Business Journal about another record-breaking year in attracting FDI to the country.

BBJ STAFF

What are the headline figures for the year, and how much did FDI grow over 2015?

Hungary is an outstanding target country for investment. It is clear that the popularity of Hungary is rising continuously among foreign investors. As solid evidence of this trend, the number of projects managed and negotiated by HIPA has been increasing each year.

HIPA closed a record year in 2016: A positive decision was passed in 71 investment projects supported by the agency. As a result, 17,647 new jobs will be created in Hungary with an investment of EUR 3.2 billion in foreign capital. In comparison to the previous year, the number of positively assessed projects increased by 6%, the volume of investment grew by 131%, and the creation of new jobs rose by 36%.

With regard to the sectoral and relative distribution of results in 2016, there were 15 projects from Germany, 14 from the United States, and seven from Hungarian companies. In terms of sectoral distribution, the automotive industry accounts for 25 projects, the business services sector (SSCs) for 12 projects and the food industry for eight projects.

What is the share of FDI between Budapest and the rest of the country?

After Budapest, which city attracts the most investment?

In terms of regional distribution, most projects (16) were implemented in the Northern Great Plain. Next came Central Hungary (15); Central Transdanubia (14); Northern Hungary (12); and the Southern Great Plain (12). The fewest number of projects were implemented in Western Transdanubia and Southern Transdanubia, with five and three projects, respectively.

If I had to pick a city, it would be Debrecen because it closed a very successful year in terms of investment.

71

decisions

17,647 EUR 3.2 bln jobs investments AUTOMOTIVE

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It is important to note that of the 71 projects, 55 involved reinvestments, which suggest that the companies already established in Hungary are satisfied and remain confident in the country. This means that foreign investors greatly appreciate the quality of Hungarian labor, the advantages offered by the economic environment and the predictability of the political environment.

wheel and rear-wheel drive passenger cars. The investment will create 2,500 new jobs, further strengthening the vital role of the manufacturing unit in Kecskemét in the global production chain of the German premium brand.

Which deal that HIPA was involved with particularly stands out, and why?

If I have to name one investment that is outstanding among all previous projects, both in terms of investment volume and the creation of jobs, it would be the second manufacturing unit implemented

by Mercedes-Benz in Kecskemét. The plant built with an investment of EUR 1 bln, or more than HUF 310 bln, represents the largest ever greenfield investment in Hungary. The body, surface finishing and assembly plant – operating within a flexible production system – will be suitable for the manufacture of front-

What are the overall trends?

Several positive trends can be observed in relation to the key sectors. With regard to the automotive industry, increasingly complex and sophisticated activities are being introduced to Hungary in connection with vehicle manufacturing (e.g. tool manufacturing), or in the form of independent development activities (e.g. engine development). The two main directions in the automotive industry are self-driving cars and electromobility. In the prior case there are already two major German companies operating R&D centers in Hungary in the field: thyssenkrupp and

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FOOD INDUSTRY

Bosch. The shared service center sector remains one of the most dynamically growing sectors, ranked second in terms of newly created jobs in relation to projects managed by HIPA. At the present time, the SSC sector employs more than 42,000 people, who commonly have higher education degrees and speak foreign languages, at roughly 100 locations in Hungary. The rise in the number of companies was accompanied by the increasing complexity of services provided, and the outsourcing of new, more complex processes to. The IT development and service centers operating in the infocommunications (ICT) sector are satisfied with the qualifications of the Hungarian labor force, which contributes to the continuous growth and expansion in the sector.

You have been trying to encourage investment into the regions, and particularly the east, where there are fewer jobs. Is this working?

Let me answer the question in a wider context. Generally speaking, low unemployment is now posing a challenge in the Visegrád Group countries in terms of encouraging investment. It is important to emphasize that there are significant

The bimonthly investment supplement of the Financial Times, fDi Magazine,

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Of 71 positive decisions 55 were reinvestments

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announces its “European Cities and Regions of the Future” competition every two years, collecting and ranking the most important European investment locations.

The magazine contains two interesting and positive facts relating to Hungary.

Firstly, the magazine still ranks Budapest among the top ten most attractive cities in Eastern Europe, and the capital is also listed in the top ten lists of three sub-categories of the most important European cities.

In addition, a Hungarian city other than Budapest earned a ranking for the first time: Győr was ranked ninth in the subcategory of the favorable business environment of smaller European cities.

In relation to these rankings, in fDi’s

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elements of the measures are the facilitation of commuting by car and the facilitation of employees’ residence. But we could also note the benefits available in relation to R&D activity performed within one’s own scope of activity.

“Global Cities of the Future 2016/17” category, Budapest was the only city from the CEE region included on the TOP 25-FDI Strategy list. I think that these rankings, and the fact that all three credit rating agencies – Fitch, Moody’s and S&P – again rate Hungary among countries recommended for investment, further enhance the value of Hungary on investors’ maps.

Part of HIPA’s role as a one-stop-shop is to represent the needs of investors to government. If there was one law you could enact to improve things from an FDI perspective, what would it be?

In addition to the developments mentioned earlier, as of January 1 substantial and positive changes take effect within the scheme of non-refundable aids. The measures primarily target the promotion of R&D activities and technology-intensive investments. The HIPA website (www.hipa. hu) provides detailed information, but my colleagues and I would also be pleased to answer any enquiries from people who are interested, such as company executives.

What will be the priorities for this year?

Will there be more targeted sectors/ regions/programs?

In short, we have two clear objectives.In addition to the “Made in Hungary” type of projects, we will put a much higher emphasis on “Invented in Hungary” type of investments.

This means that by benefiting from the renewed funding scheme, we aim to further increase the number of projects with high added value. As an additional priority, the share of investments implemented in rural locations should further rise. Economic and political stability, foreign policy focusing on the promotion of investment and foreign trade, and new measures improving competitiveness provide a solid foundation for these efforts. In relation to the latter, as of January 1, the corporation tax rate is reduced to 9%, which is the lowest rate in the EU. In addition, as a first step, the social contribution tax levied on employers significantly declined from the same date, down five percentage points from 27%. In a further positive change, measures supporting the mobility of labor have been introduced, which may offer a response to labor-related challenges in the short term. The two key

“In addition to the ‘Made in Hungary’ type of projects, we will put a much higher emphasis on ‘Invented in Hungary’ type of investments.”

FDI Roundup the government’s commitment to Some of the latest foreign and the endeavor. Hungary is awarding the company HUF 280 million in training direct investment news support for new hires. BlackRock is for Hungary, taken from the world’s largest asset manager with USD 5.1 trillion in assets under the Budapest Business management.

Journal’s daily morning to Move Regional news digest Hungary A.M. Bosch Logistics hub to

Hungary in 2018

BlackRock’s Budapest Innovation Center to Create 500 Jobs U.S.-based global investment management corporation BlackRock is setting up an innovation center in Budapest that will create 500 jobs, Minister of Foreign Affairs and Trade Péter Szijjártó revealed on January 25, according to Hungarian news agency MTI. BlackRock ’s innovation center will deal with product development and the way client data is managed, as well as with creative marketing.

BlackRock managing director Patrick Olson said the company had picked Budapest for the center because of the local education system, quality of infrastructure, security, quality of life

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German engineering giant Bosch is moving its Central and East European regional logistics center to Hatvan, about 60 km northeast of Budapest, from 2018, Minister of Foreign Affairs and Trade Péter Szijjártó said on January 26, state wire service MTI reported. The move will create 250 jobs, Szijjártó said. Hungary’s stateowned National Industrial Park Operating and Development Company will build a HUF 17 billion industrial park on the outskirts of Hatvan for Bosch, which will lease 60,000 square meters of the area for a period of 16 years. Bosch will also commit to raising the value of its orders from local suppliers by EUR 60 million over the next six years as part of the arrangement. With the establishment of the logistics base in Hatvan,

Bosch’s local headcount will rise to 14,700, higher than any other foreignowned producer in the country. Daniel Korioth, who heads the Bosch group in Hungary, said the agreement on the logistics center in Hatvan is Bosch’s most important model project and will serve as a precedent for the entire group.

Hilton Garden Inn Budapest City Center to Open in Summer 2018 Hungary’s Accent Hotel Management announced on January 31 it will open the Hilton Garden Inn Budapest City Center under a franchise agreement with hotel company Hilton in the summer of 2018, state news agency MTI reported.

A foreign investor is building the HUF 8 billion hotel, Accent Hotel Management told MTI. The 214-room hotel will be located near the Hungarian State Opera House. Accent Hotel Management manages 16 hotels with almost 1,600 rooms in Hungary. Its annual revenue exceeds HUF 8.2 bln.

O+GD Central Makes Discovery at Hungary License Oil and gas company O+GD Central, a unit of the Netherlands’ Sand Hill Petroleum, has made a discovery in Szolnok, Daniel Breitner, in charge of official matters for the company, told MTI. A production estimate will

As a most recent change to the funding scheme, funds based on an individual government decision (EKD) are available to a wider range of applicants in relation to the processing of agricultural products. EKD funds are available in Békés, Nógrád and Szabolcs-Szatmár-Bereg Counties for an investment value of as little as EUR 5 million, involving the creation of at least 50 new jobs.

I believe that beyond the above changes, there are additional opportunities to make Hungary even more attractive to investors.

My colleagues and I are ready to draw up proposals for the government.

be made when tests are completed, Breitner said. He put the base cost of drilling at the license in Szolnok at close to USD 2 million. O+GD Central started drilling at the site in the fall of last year. It has a number of other licenses around the country, too.

ThyssenKrupp to Build Another Plant in Hungary Germany-based automotive giant ThyssenKrupp is planning to build a new plant in Hungary’s second city of Debrecen (about 230 km east of Budapest) through an investment of HUF 11 billion, which is being supported with a HUF 3.8 bln government grant, according to a press statement sent to the Budapest Business Journal.

Construction of the new factory on the 100,000 sqm area is set to start this year, and is due to be finished in 2018, Marc de Bastos Eckstein, managing director of ThyssenKrupp Presta Hungary, and Minister of Foreign Affairs and Trade Péter Szijjártó announced on February 3. With the new plant, which will be the second in the country and will provide approximately 250 jobs, ThyssenKrupp will be putting out more than six million springs and stabilizers on an annual basis. During the announcement, Szijjártó praised the competitiveness of the Hungarian investment environment. He added that one of ThyssenKrupp’s chief aims is in line with Hungary’s: to create more jobs in the country through high added value investments.

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Schoenherr law Firm Strengthens Budapest Office Banking and finance lawyer Gergely Szalóki has been promoted from legal expert to local partner at Schoenherr in Budapest, as a step in strengthening the law firm’s capabilities in the region. Szalóki specializes in banking & finance and capital markets, and also deals with insurance regulatory issues. He has been involved in numerous major transactions for both domestic and foreign clients in the financial industry, and also advises on the borrower side. Szalóki is involved in bond issue transactions representing both managers and issuers, and also acts for investment funds. He holds a PhD in law from the Károli Gáspár University of the Reformed Church and an LL.M. from the Central European University in Budapest. He was admitted to the Hungarian Bar Association in 2011.

“Gergely is a key member of the stellar banking and finance team in Budapest, and over the years he has honed his legal expertise working on highly complex mandates. We are thrilled to count on his know-how and team spirit,” said Schoenherr Managing Partner Michael Lagler.

Dentons Budapest Office Welcomes China Desk Head

Susan Wang recently joined the Budapest office of law firm Dentons as head of its new CEE China Desk.

With her arrival, Dentons hopes to strengthen its capabilities to support Chinese investment in CEE. Wang will focus on cross-border M&A, private equity transactions, joint ventures, and other corporate initiatives, prioritizing Chinese inbound M&A activity into the CEE/ SEE region. A Chinese and U.S.-qualified lawyer, Wang previously worked in Dentons’ Beijing office, where she gained experience advising clients in cross-border transactions in a broad range of industries, including manufacturing, energy, power and natural resources. Prior to that she worked for Morrison & Foerster LLP in Shanghai, as well as King & Wood Mallesons in Beijing. She holds a BA in Law from the China University of Political Science and Law, and has also studied at the TLBU Graduate School of Law in Seoul, and at Boston

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University School of Law. “It is a pleasure to welcome Susan Wang to the team. Her appointment and the creation of the CEE China Desk demonstrate the role of our Budapest office as a hub for key cross-border deals and client relationships across the CEE/SEE region,” said István Réczicza, Hungary managing partner at Dentons.

MVM Appoints Economic Deputy CEO

András Huszár has been appointed economic deputy CEO of Hungarian Electricity Works (MVM), with effect from February 1.

Huszár has 25 years of experience in finance and economics. His chief areas of expertise include financial stability, efficiency improvement, risk management and financing. Huszár worked at the Budapest Stock Exchange from 1991, then joined the Deutsche Telekom Group in 1994. He worked for Hungarian oil and gas company MOL from 2001 to 2016.

Orbán & Perlaki Attorneys Names new Partner

Gábor Kovács was appointed partner at Orbán & Perlaki Attorneys (OPL) as of January 1.

Kovács started his legal career in 2007, training within PwC’s corporate law, M&A, real estate and financing practices, and later advised the CEO of a major Hungarian IT outsourcing, electronic billing and e-payment service provider for three years.

Kovács joined OPL in 2012, soon after the law firm was founded and has been closely involved in its development ever since. Throughout his time at OPL, he has carried out multiple crossborder transactions, commuting between CEE state capitals, and has worked abroad in several places across Europe, from Paris to Bucharest.

Kovács’ clients include Pannonia Ethanol, one of Europe’s biggest bioethanol producers, which he advised in several major financing and refinancing projects and transactions, as well as a number of regional companies in the agricultural and e-payment sector. “I consider my main task to be broadening the client base of our law firm, especially in the field of renewables and other innovative industries. At the same time, I would like to carry on supporting our growth

as an independent, international corporate law firm by assisting our clients in their needs throughout the CEE region. Amongst others, our expertise in the field of privacy and ICT law provides a solid foundation to achieve these goals,” said Kovács.

Affidea Picks new Finance Director Mihály Szabó has been appointed finance director of medical services provider Affidea Diagnosztika, taking effect from the end of 2016. In the past six years, Szabó had worked in a similar position at Hungarian oil and gas company MOL Group, after working at a joint subsidiary of General Electric and Qatar Petroleum. At MOL Group, he was responsible for supporting profitability growth and synchronizing business and financial functions, as well as helping the financial integration of the Romanian subsidiary into the group. Before that, Szabó gained experience in expenditure control, securing liquidity and accounting report systems. In his new position, he will face the challenges of both the private sector and the public healthcare sector.

Praktiker Hungary Names Sales Director László Bagaméri has been appointed sales director at home improvements retail chain Praktiker Hungary, taking effect from February 1.

Bagaméri joins Praktiker from Tesco Global Stores, where he was operations director responsible for numerous regions. Bagaméri has more than 20 years of experience in domestic and international retail, and has worked for multinational companies. He also gained DIY experience when working as a store manager at Baumax in Kecskemét and Budapest. In his new position, Bagaméri will be responsible for leading the sales teams of 20 Praktiker stores in Hungary, following the guidance of the owners and management in order to offer the best possible services to customers.

“I’m proud to be joining a team and brand that was able to stay on the ground after difficult periods.

Praktiker, with a Hungarian owner in the background, is offering new perspectives for workers, and a renewed product portfolio for customers,” said Bagaméri.

Hankook Tire Hungary Appoints new Managing Director Seong Hak Hwang has been appointed managing director of Hankook Tire Hungary, the local subsidiary of the South Korean giant, as Sang Il Lee will be retiring from the position.

Hwang joined the company in 1987, and worked for several years in China as a plant manager. He will be leading the company’s only European plant.

Hwang started his career as an engineer, before gaining experience in research and development, as well as product development. “I am very happy to start working as managing director in the Hungarian factory.

From my long career with the company, there is no question that my utmost priority is to maintain premium quality with my work in the factory and to meet the high expectations that my predecessor has set. I am delighted to have an opportunity to be in the front line of the European automotive industry,” said Hwang.

Oppenheim Hungary Welcomes new Partner Áron László was appointed IP/IT partner at Oppenheim’s Hungarian operations, taking effect from January 1.

László began his legal career in Oppenheim in 2002 . From 2005 , he worked for one of the leading Hungarian IP/ IT law firms. László rejoined Oppenheim in 2014 to reinforce its industrial property practice, to which he brings extensive knowledge of trademark, design and patent law.

Oppenheim’s IP/IT practice has a large caseload representing foreign clients in Hungary and includes a growing group of Hungarian clients seeking to create international brand strategies for themselves, the law firm says. “Áron is a highly experienced and ambitious practitioner, who has proven that it entails very high efficiency benefits for our clients to have their patent, trademark and design matters handled by our firm in a ‘one-stopshop’ system, along with their further legal matters. Áron’s election to partner is a clear message towards our clients: Oppenheim offers special attention to industrial property matters,” says Iván Bartal, leader of the IP/IT practice.

2017. 02. 08. 22:24

Gruppo T.F.M. KFT. 1068 Budapest, Király u. 102.

3rD District

4th District

26 sqm – 1 room, Krisztina CirCuit

79 sqm – 4 rooms, BudaKalász street

70 sqm – 3 rooms, Káposztásmegyer

101 sqm – 3 rooms, ráKóCzi street

80 sqm – 2 rooms + Hall, márVány street

44 sqm – 2 rooms, Bazsarózsa street

Beautiful panorama over the Buda Castle, this high floor apartment, that needs renovation, is situated within a building with elevator, close to the Chain Bridge.

This renovated, park facing apartment has separate rooms, very bright, fully fitted kitchen and balcony. It is located close to the Danube.

In a new subdivision, this sunny apartment has living room with open kitchen, 2 bedrooms, air conditioning system, terrace and 40 sqm of private garden.

This sunny apartment is situated adjacent to Hotel Astoria, in a period building. Benefits of air conditioning system, alarm system and private gas heating. Renovated 8 years ago.

This very spacious and bright, street facing apartment in good condition benefits of separate rooms and private gas heating. Good connection to public transport.

In a quiet side street, in a well maintained building with common garden, this very sunny, street facing apartment in good condition has separate rooms and balcony.

18.900.000 HuF

25.900.000 HuF

31.900.000 HuF

40.000.000 HuF

39.900.000 HuF

19.200.000 HuF

1st District

+36.1.201.0403

2nD District

+36.1.379.0506

5th District

+36.70.3156.087

10th District

12th District

+36.1.789.2846

14th District

+36.1.612.5475

12th District

14th District

90 sqm – 3 rooms, Bem quay

73 sqm – 2 rooms, római-part

67 sqm – 2 rooms, VáCi street

92 sqm – 4 rooms, Kőrösi Csoma WalKWay

75 sqm – 3 rooms, ráCz aladár lane

70 sqm – 2 rooms + Hall, pálya street

This completely renovated apartment has nice panorama over the Danube, fully fitted kitchen and 2 bathrooms. It is situated within a renovated building with elevator.

In a new subdivision, this very sunny apartment benefits of fully fitted kitchen, wardrobe room, terrace, air conditioning system and direct connection to the bank of the Danube.

Beautiful view over the Danube and the Liberty Bridge, in a period building with elevator, this very bright, high floor apartment benefits of 3 balconies and private gas heating.

This completely renovated, very bright, duplex apartment benefits of two bathrooms and balcony. It is located in the centre of the district.

This semi-detached house built on 600 sqm of lot, has terrace, well kept garden and garage. It is located in a garden suburb area.

74.900.000 HuF

41.500.000 HuF

62.000.000 HuF

34.490.000 HuF

In a quiet and green area, this well divided and bright apartment in good condition has nice panorama from the balcony, private gas heating and parking space.

+36.1.201.0403

2nD District

3rD District

+36.1.782.7275

7th District

+36.70.322.4429

3rD District

+36.1.287.6745

5th District

+36.1.780.8276

10th District

49.900.000 HuF

+36.1.789.2846

13th District

33.000.000 HuF

+36.1.612.5475

15th District

135 sqm – 4 rooms + Hall, nyúl street

79 sqm – 3 rooms + Hall, dereglye str.

173 sqm – 3 rooms, apáCzai Csere J. str.

93 sqm – 4 rooms, zöldpálya street

75 sqm – 3 rooms, Visegrádi street

88 sqm – 5 rooms, ráKospalota

This well divided, spacious apartment, that needs renovation, has separate rooms, 2 terraces and it is situated within a small condominium with beautiful common garden.

In a quiet side street, this completely renovated, street and garden facing apartment has separate rooms, open kitchen and private gas heating.

Breathtaking panorama over the Danube and the Gellért Hill, this top floor, very bright apartment has 2 bathrooms and it is situated within a beautiful period building.

In a quiet area, this new built terraced house has living room with open kitchen, 3 bedrooms, 2 bathrooms, garage and well kept garden.

A few minutes from the Víg Theatre, this bright, high floor apartment has separate rooms, private gas heating and it is situated in a well maintained building with elevator.

This completely renovated, duplex apartment benefits of fully fitted kitchen, balcony, very nice private garden and parking space. It is situated in a new building.

85.000.000 HuF

42.900.000 HuF

159.000.000 HuF

39.900.000 HuF

34.900.000 HuF

37.900.000 HuF

+36.1.336.1706

2nD District

+36.1.430.1403

3rD District

+36.1.287.6745

6th District

+36.1.780.8276

11th District

+36.1.788.1435

13th District

+36.70.398.8754

15th District

245 sqm – 8 rooms, ViHorlát street

445 sqm – sHop, laKtanya street

73 sqm – 3 rooms, szíV street

190 sqm – 7 rooms, tétényi street

127 sqm – 3 rooms, Hegedűs gyula street

200 sqm – 8 rooms, ráKospalota

This completely renovated condominium consists of 3 luxury apartments with very nice panorama, air conditioning system, well kept garden, swimming pool and 3 garages.

In the centre of Óbuda, this 3 storey, completely renovated shop has private gas heating.

Currently it works as café. Very good connection to public transport.

In a renovated period building, this very sunny, street facing apartment has private gas heating and it is located close to the Andrássy Boulevard.

This three storey family house that needs renovation built on 215 sqm of lot, has private gas heating, balcony, terrace and parking space in the courtyard.

This property in good condition consists of 2 separate apartments and it is situated within a nice period building. Both apartments have kitchen, bathroom and private gas heating.

This very spacious, renovated, two storey family house built on 990 sqm of lot, has 2 kitchens, 3 bathrooms, wardrobe room, 4 terraces and parking space.

199.000.000 HuF

159.000.000 HuF

34.500.000 HuF

64.900.000 HuF

37.500.000 HuF

63.000.000 HuF

+36.1.376.6080

2nD District

+36.1.430.1403

3rD District

+36.1.351.0446

6th District

+36.1.720.2433

11th District

+36.1.788.1435

13th District

+36.70.398.8754

Dunakeszi

220 sqm – 6 rooms + Hall, lepKe street

300 sqm – 5 rooms, CsillagHegy

60 sqm – 2 rooms, ó street

182 sqm – 6 rooms, KéKtó square

66 sqm – 3 rooms, Bodor street

42 sqm – 2 rooms, dunaKeszi

This completely renovated apartment benefits of floor to ceiling windows, 2 garages and it is situated within a small condominium with tennis court in the nice common garden.

This luxury, eco-friendly home has 1517 sqm of lot, 3 bathrooms, terraces, balconies, swimming pool, private gas and solar panel heating and 2 garages. Handover in 2017.

This apartment is in good shape and situated in a nice period building perfectly positioned between the Opera House and the St. Stephen’s Basilica.

In a quiet area, this three storey semi-detached house in good condition built on 417 sqm of lot, has 2 bathrooms, 2 balconies and garage. Good connection to public transport.

220.000.000 HuF

193.000.000 HuF

In a new building with elevator, this very bright apartment benefits of living room with fully fitted open kitchen, 2 separate bedrooms and 17 sqm of terrace.

In a new subdivision, this well divided, garden facing apartment has living room with open kitchen, separate bedroom and balcony.

Parking space possibility for 1.000.000 HUF.

38.900.000 HuF

65.900.000 HuF

41.500.000 HuF

16.900.000 HuF

+36.1.376.6080

3rD District

+36.70.322.4429

4th District

+36.70.3156.087

7th District

+36.1.720.2433

11th District

+36.70.701.2348

13th District

+36.70.399.0399

Dunakeszi

66 sqm – 3 rooms, KaBar street

67 sqm – 3 rooms + Hall, nyár street

71 sqm – 3 rooms, BetHlen gáBor square

122 sqm – 5 rooms, mészöly street

260 sqm – 5 rooms, angyalFöld garden suB.

61 sqm – 3 rooms, dunaKeszi

In a well maintained condominium with elevator, this renovated, street facing apartment has bright kitchen, balcony and air conditioning system.

In the centre of the district, this very quiet, park facing, sunny apartment in good condition is situated in a well maintained building.

In a nice period building with elevator, this very bright, high floor apartment has view over the Bethlen Gábor Square, separate rooms, wardrobe room and private gas heating.

At the bottom of the Gellért Hill, this very spacious and bright apartment has 4 separate bedrooms, living room, 2 bathrooms and private gas heating.

This very spacious, two storey house built on 244 sqm of lot, has 2 bathrooms, sauna, terrace and garage. It is located in a quiet garden suburb area.

This garden facing apartment has living room with open kitchen, 2 separate bedrooms, balcony and parking space in the garage. It is situated in a new building with geothermal heating.

32.000.000 HuF

84.900.000 HuF

53.990.000 HuF

25.900.000 HuF

21.490.000 HuF

+36.1.379.0506

20.500.000 HuF

+36.1.782.7275

+36.1.351.0446

+36.1.336.1706

+36.70.701.2348

+36.70.399.0399

each agency independently owned and operated. • these offers are valid, till the apartments are sold. • these information do not constitute a contractual element. tecnocasa_bbj_2017_02.indd 1

BBJ_2503_bus.indd 13

2017. 02. 08. 10:10

2017. 02. 08. 22:24

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Business

REAL ESTATE NEWS

www.bbj.hu

Budapest Business Journal | february 10 – february 23, 2017

Positive Real Estate Parameters Expected, Says CBRE CBRE anticipates that favorable demand fundamentals will continue in the office, retail, industrial and hotel sectors.

The company has traced a large pipeline in both the Budapest office and hotel market sectors.

However, there is a limited retail supply to meet increasing demand from retailers, and a very low speculative industrial pipeline. The investment market recovery is expected to continue, although the question remains as to whether there is enough investment grade stock to meet rising demand from investors.

The 25,500 sqm Park Atrium office center was purchased by Corpus Sireo for a reported figure of more than EUR 50 mln.

GARY G. MORRELL

“CBRE is involved in EUR 700 million in investment transactions that are expected to conclude in the first half year,” said Lóránt Kibédi-Varga, managing director of CBRE Hungary at the Re-View 2016 event at the Brody Studios. “Vacancy in the office market is below 10% and industrial vacancy is less than 5%. Around 2,000 new hotel rooms are due to be delivered. Unemployment in Budapest currently stands at around 3% and one concern is that, as the markets take off, there is the possibility of a labor shortage,” he said.

In a sign of the growing presence of institutional investors, Corpus Sireo has purchased the earlier generation 25,500 sqm Park Atrium office center for a reported figure of more than EUR 50 mln, and the Germany-based asset and investment manager, KGAL acquired the 23,000 Eiffel Square office center.

The leading consultancies predict around EUR 1.7 billion in investment volume for 2017. Most bids are for lot sizes of between EUR 100 mln and EUR 50 mln. German and Austrian funds are now active in addition to Central European focused equity such as Czech insurance funds. The average deal size is EUR 30 mln, which is still below precrisis levels.

New Actors Appear “Besides the usual Western European investors and the Hungarian and American institutional funds, new actors have also appeared in the market. These are investment companies from Greece and the United Arab Emirates, and the German closed-end funds have also returned to Hungary, which all played a role in the turnover growth in 2016,” said

BBJ_2503_bus.indd 14

Tim O’Sullivan, head of capital markets at CBRE. “German funds bought the benchmark Park Atrium and Eiffel Square office buildings in Budapest. The acquisition of Váci Corner was the third significant transaction in the Budapest office market last year. We can truly state that Hungary is back on the investment map,” he added.

He puts office yields at 6.75%, retail at 6.25%, High Street retail at potentially sub6, and industrial at sub-8%. “The office market will still lead in terms of the number of deals transacted, but there are some large retail projects expected to trade in 2017.

The lack of available stock in the industrial sector will limit activity in this sector; however, there has been a lot of demand for industrial and logistics stock,” he said.

Judit Varga, head of office advisory and transactions at CBRE Hungary argues that a significant proportion of the 20172018 pipeline is pre-leased. With regard to demand, it is now difficult to source 1,000 sqm plus spaces and therefore pre-leases need to be concluded. Vacancy is expected to remain below 10%.

Retail sales for Hungary remain robust although fewer retailers are entering Hungary than elsewhere in CEE due to higher VAT, rising labor costs and high rents, the latter driven by the lack of new construction. Hungary has the lowest retail pipeline in CEE, with only strip mall conversions and high street projects forecast to deliver before 2019. It is, therefore, a challenge for shopping center owners as to how to accommodate new brands looking to enter the market.

Strong Fundamentals “Continued strong retail fundamentals in 2017 should overcome the reluctance of new retail brands to enter the Hungarian market

Source: CBRE

despite higher VAT and rental rates than our CEE neighbors and increasing labor costs,” commented Anita Csörgő, head of retail at CBRE Hungary.

Gábor Borbély, head of research at CBRE Hungary, describes the hotel sector as a neglected market sector, although it has seen 5-7% annual growth as Budapest is seeing 80% annual occupancy. An estimated 2,000 plus rooms are due to be delivered in the next two-three years. Refurbished classic buildings are seen as a win-win situation with utilized listed buildings attracting tourists.

The industrial sector is regarded as being in a strong position due to rising demand and low vacancy. According to CBRE, vacancy in the circa 2 million sqm Budapest market has fallen to 7.6%; while there is no availability in the largest regional hubs,

the company puts total industrial space in Hungary at 7.8 million sqm (including owner-occupied space). However speculative development is limited. “New facilities are being built to serve expanding industrial production plans. Speculative development, however, remains sporadic,” said Gergely Baka, head of industrial and logistics at CBRE Hungary.

“We are expecting a strong turnover in the Hungarian commercial property market also for 2017. The stable economic growth and the increasing household consumption make the country attractive for investors, and moreover, all three credit rating agencies graded Hungary ‘suitable for investment’, thus more institutional investors may enter the market. The investment sales have quadrupled since 2013 in Hungary,” concluded Kibédi-Varga.

2017. 02. 08. 22:24

3

www.bbj.hu

Budapest Business Journal | february 10 – february 23, 2017

Special Report Office Equipment

CEU iLab – new Concept Blends Thinking and Practice 16 Today’s Office Design Revolving Around Ergonomics 17 Relax! Taking a Chilled Approach to Employees 19

Furniture & interior design, the illusive search for the paperless office, equipment evolution and the needs of Gen-Y. BBJ_2503_special_report.indd 15

2017. 02. 08. 22:11

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Special Report

www.bbj.hu

Budapest Business Journal | february 10 – february 23, 2017

Office Furniture: a Tough Design CEU iLab – new Concept Blends Thinking Challenge in Hungary CEU COLUMN

and Practice for Entrepreneurship Andrea Kozma

Mel Horwitch

CEU iLab manager

University professor CEU

CENTRAL EUROPEAN UNIVERSITY BUSINESS SCHOOL

CENTRAL EUROPEAN UNIVERSITY BUSINESS SCHOOL

Do universities have any real-world role in making a city or country more competitive? And can a university, in partnership with practitioners, produce new ways to learn in helping train budding entrepreneurs and entrepreneurial teams?

as fundraising and leadership. CEU students – MBAs, legal studies students and others – also have the opportunity to work with CEUiLab teams, gaining practical experience in helping teams get off the ground.

This diverse array of CEUiLab activities, representing a variety that only a university can provide, seems to be working. Here is what our members say: “There are of course many aspects one takes into account when selecting working space,” says Imre Boda, one of the founders of Valuella, a global software development company, delivering complex software solutions to its clients. “As a startup, we have different expectations from mature companies. At the startup phase, everything around us is vibrant. We need a lot of energy and strive to go on.”

CEU is exploring such matters explicitly and with vigor. In a fashion similar to universities in the United States, the United Kingdom. and elsewhere in Western Europe, CEU now houses its “CEUiLab is just the place own business incubator/accelerator, for us at this early stage,” CEU InnovationsLab, which is located says Arslan Ali, the other on the top floor of its new Nádor utca founder. “It is not just a superb campus. CEUiLab is a co-working co-working office with great space with a combination of assigned location and facilities. The and “hot tables” for the various teams, real value is the spirit and the thus accommodating a range of unique learning we get here. individual needs.

The peer companies sharing The university has multiple aims for the office with us, the attention this activity, including upgrading and and ongoing nurturing nurturing Budapest-based startups we get from CEU create associated with CEU alumni, faculty the stimulating and vivid and students; developing new ways and atmosphere that we need.” opportunities management students can learn; and creating a dynamic community of academics and practicing innovators “We are grateful to have been committed to entrepreneurship. granted the opportunity by CEUiLab to CEUiLab tries to go further than set ourselves up,” say GlobalVet’s, László simply offering space and coffee for startups – it also aims to transfer the latest Tóth and Balázs Laki, the most recent members of the CEUiLab family. “This relevant thinking and practices to its place is just as diverse as our team is,” members. CEUiLab’s has a “disciplined they add. GlobalVet is a novel veterinary entrepreneurship” approach that builds on management system that gives access to the academic excellence and diversity of both doctors and owners, allowing them CEU. Our one-year incubation program offers structured mentoring by expert staff to work closely and consult about the little patient’s state with just a click. “We and the possibility for CEUiLab members found a home here,” says Tóth. to leverage the considerable networking “We have just made the first step of a long possibilities of the university. journey,” adds Laki, “and we already got After rigorous selection, teams submit great vibes from the surrounding people project plans for the year and then work and environment. This is the added value closely with CEUiLab management, CEU faculty and affiliated mentors to fine-tune CEUiLab offers and makes it so different from other incubators.” business and financial plans, prototypes, and ultimately to go to market. There This column is part of a continuing series are also regular team-review meetings, of opinion pieces from experts at the CEU CEUiLab workshops, and consulting Business School in Budapest. The opinions sessions. This whole range of CEUiLab stated here do not necessarily reflect those offerings broadens team learning and of the Budapest Business Journal. builds new competencies in such areas

BBJ_2503_special_report.indd 16

Setting up a business and keeping it in the black, or simply making ends meet, by solely designing office furniture is still a long shot for most Hungarian designers. Indeed, it remains very difficult even if you omit the word “office” and broaden your scope to design furniture for any purpose.

BBJ STAFF

Unlike in Italy, say, where furniture manufacturers abound and, as a result, prices are competitive, in Hungary, having something made on a small scale is simply not worth it. steel sheet. The metal manufacturing enables the transformation of the lasercut flat patterns into stable structures.

The powder coated legs and the various plywood shapes are easy to assemble, while the characteristic

Y parts

ARE SIMILAR IN DESIGN,

“This is not a specificity of the Hungarian market. It applies basically to the rest of the world,” says Dániel Lakos, a designer for Planbureau. Typically, designers here receive orders for individual pieces, and sometimes collections, through interior design works. Lakos designed the interior for advertisement agency Benedict and Helfer, a project for which he was given much leeway and could incorporate unique furniture designed exclusively for that space.

Another way to get closer to a market is applying for design competitions.

Planbureau’s Alba collection, which consists of a chair, a writing desk, and a large shelf unit, was originally designed for a Japanese International Furniture Design Competition and was available for sale in that country and also in Switzerland. The international jury awarded a Grand Prix for the shelf unit, and three years later, the chairs were among the shortlisted entries at another international design competition that drew more than

1,000 ENTRIES.

The reason larger production runs cannot be made and placed with stockists either in Hungary or abroad, is high manufacturing costs. The demise of manufacturing industry here makes it really costly to have anything made in a factory, and that affects mass production or smaller runs. Unlike in Italy, say, where furniture manufacturers abound and, as a result, prices are competitive, in Hungary, having something made on a small scale is simply not worth it.

Yet working with such limitations has its advantages too. Since complicated attachments and technology would just further hike the price, designers are forced to come up with pieces that are easier to assemble, have fewer parts, and/or are multifunctional.

The Y-system of Lehel Juhos, an industrial designer who runs his own studio, is a good example – the pieces are sturdy enough to endure the demands of an office environment but are also simple enough for anyone to assemble for their home office. The Y-system set comprises a stool, tables, and shelves made of beech plywood, and powder coated

lending unity to the collection. Juhos, like many of his peers, does not exclusively design furniture; he has more industrial design-related jobs, which, from a pure design viewpoint, does at least have the advantage of adding variety to the job.

Simplicity and efficient design are required when working for large players as well. Shapes and molds must be individually created for each and every part of the furniture, such as the seat pan, so it may take several months to finalize the plans. Once they go into production, you cannot change them, says furniture designer András Kerékgyártó. He recently started working with a Vesprémbased plywood element manufacturer that wished to enter a new market.

Relying on its former network of clients and manufacturing capacities, the firm teamed up with Kerékgyártó to create and launch a new line of contract furniture under the name Plydesign.

The company appears to be on something of a mission, to judge from its publicity. “For a long period – over ten years – there hasn’t been any successful attempts to develop and manufacture a new chair design in quantities in Hungary. This armchair is our contribution to the goal of reeastablishing Hungary’s furniture industry,” it says in its catalogue.

“I started off small, designing universal legs that could hold several sizes of table tops. When we saw it worked, we expanded the line with more pieces,” Kerékgyártó said. His “Flagship” armchair won the “Design Without Borders Award” at the “Madeinhungary 2016” exhibition.

At the time of writing, the team is at the Stockholm Furniture Fair (February 7-11) to forge new ties and find local distributors. The type and style of furniture – the range incudes stacking chairs, armchairs, barstools, coffee tables and dining tables – make the line a good fit for the Scandinavian market, hence the choice of this event, and the equally costly Milan Furniture Fair. The overall cost of participation may amount to more than EUR 6,000, and it is not enough to attend once. “Consistency is the key to be taken seriously by international players,” said Kerékgyártó.

2017. 02. 08. 22:11

www.bbj.hu

3

Budapest Business Journal | february 10 – february 23, 2017

Special Report | 17

Office Equipment: A Strategy Shift Towards Solutions Hardware and software are equally important for office equipment, and manufacturers and distributors are pushed to bundle them into sophisticated solutions to fulfill the needs of their corporate clientele.

LEVENTE HÖRÖMPÖLI-TÓTH

Although you are still more than likely to work in an office where monster-sized multipurpose copy machines rule the landscape, current trends indicate this is about to change. For office equipment is undergoing a paradigm shift just like many other segments where mobility, and with it major size shrinking, define the evolutionary process. “In our experience, ever more business users are switching from

Zsolt Patkó, director of sales at GLOBAL-UNION Ltd. the A3 format to A4, since smaller devices now have the same functions as their bulkier counterparts,” Zsolt Patkó tells the Budapest Business Journal. He is director of sales at GLOBAL-UNION Ltd., which is the exclusive importer of KYOCERA Document Solutions, and as such is one of the leading players in the sales of office equipment.

According to Patkó, A3 machines have traditionally had a longer life cycle and offered cheaper operations for companies, but these days are gone.

“Print-outs made in A3 format make up merely 1-2% of the total. On the other

hand, the latest breed of A4 equipment is capable of producing an identically high performance and their energy consumption and maintenance costs are considerably lower, so there is no reason to stick big anymore,” he explains.

Hardware Alone Not Enough The real deal on today’s market is no longer pure hardware, though. Everything is moving in the direction of document management solutions. It is no wonder that

KYOCERA has recently acquired Ceyoniq Group, a leading provider of Enterprise Content Management (ECM) solutions, a step that hints at the clear intention of the Japanese behemoth to focus a lot more on the software element of the sales equation.

“Mobile or ‘follow-me’ printing, scanning into the cloud are just a few key mechanisms that are gaining momentum in the everyday office environment. In order to ensure the seamless execution of such kinds of tasks, flawless software solutions are needed,” Patkó adds. In the case of follow-me printing, for instance, users can get their print-out from any printing device on the corporate premises as long as they have their pin code or access card with them.

But scanning will not stop at using the cloud; there are tools that can handle more complex assignments as well. “Many firms employ hundreds of students to get their archives digitalized. By contrast, our document management system does the same in an automated fashion,” Patkó says. Again, the software component is crucial in this respect, as it must be optimized for the different devices.

“Solutions are a lot more commonplace in Europe than in Hungary where, typically, local subsidiaries of foreign parent companies are the ones giving priority to this approach. But I am confident the whole industry will catch up gradually,” the director of sales concludes.

Today’s Office Design Revolving Around Ergonomics

Office equipment goes hand-in-hand with office design as together they shape the mood and dedication of workers in the long run, and as an employer you don’t have to be Google to know that cutting-edge gadgets alone will not fascinate them.

LEVENTE HÖRÖMPÖLI-TÓTH

“A key buzz word for companies is clearly ergonomics, which plays a role in ever more aspects of office design,” says Gábor Rétfalvi, managing director of G-Green Kft., a distributor of high-end office furniture.

Spine-friendly chairs are only a start, albeit an important one whose significance still needs to be explained to many CEOs. The use of electric height-adjustable desks is also very much in, so that workers can set it by the push of a button depending on whether they wish to work standing or sitting.

Noise insulation is another hot issue that many CEOs and office managers are only beginning to grasp.

“Having spent the whole working day in

BBJ_2503_special_report.indd 17

“Without one [a play room] you are so last century, which impression you definitely want to avoid.” one open space, people often complain about headache by the end of the day. One of the reasons for that is noise made by colleagues, which can be dramatically reduced by installing the right furniture,” Rétfalvi adds.

Noise shields make a huge difference in this respect, and are often built into cabinets.

Workspaces are also getting increasingly multipurpose. Cubicles are on the way out and non-assigned seating is in. Space is used in innovative ways. “Employees have a great need for privacy to make private phone calls or just simply get away from the crowd. That is what creatively designed booths are for, that simultaneously serve as a place to enhance social interaction between a smaller circle of individuals,” points out Rétfalvi.

Trends point to a sort of antithesis of rigid workstations where wireless technology sets the rhythm. Take the example of Valve, a leading global video game developer where employees can gather at any spot of the office in ad-hoc working groups according to their liking because, according to the firm’s policy, this creative chaos results in the highest productivity. This presupposes flexibility where modular components can be mixed,

Gábor Rétfalvi, managing director of G-Green Kft. stacked and moved around, offering innumerable combinations for a dynamic and collaborative workspace.

“The fact is that Generation Y and Z take a given amount of cash for granted. Next up on their check list is the quality of the workplace.

They simply can not bear an old-fashioned environment, they yearn for 21st century solutions,” the expert adds.

One case in point are the so-called play rooms that at first popped up on the lay-

out plans of IT firms, but which by now have become a must-have for any company wishing to recruit from amongst the younger generations. Consoles are appreciated, but table tennis or table football are also offered in many cases. “Without one you are so last century, which impression you definitely want to avoid.”

See also: Relax! Taking a Chilled Approach to Employees, p19.

2017. 02. 08. 22:11

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Special Report

www.bbj.hu

Budapest Business Journal | february 10 – february 23, 2017

Cutting-edge Printing Solutions Help the Drive to go Green in the Office The use of paper may be slowly declining thanks to digitalization and growing environmental awareness, but the long-promised paper free office remains a distant utopia for now.

LEVENTE HÖRÖMPÖLI-TÓTH The widespread use of digital solutions promised the ideal that we would stop relying on paper printouts in the office a long time ago. Yet, it seems the world is not quite there. In fact, according to InfoTrends figures quoted by The Wall Street Journal, office paper use hit a record high at around

1 trillion COPIES

in the United States in 2007. Partly due to the recession, that was the peak and now a declining trend is finally taking shape.

This phenomenon applies in Hungary too. As the latest end-user printing industry survey conducted by International Data Corporation (IDC) in key countries from Central and Eastern Europe, the Middle East and Africa (CEMA) reveals, the number of pages printed in home and office sectors (excluding pages printed on production devices) dropped by a moderate single digit rate in 2015.

“One of the most important observations to be highlighted from the survey is that, for the first time, end users in the business sector are reporting that the number of pages printed in the office went down because of digitalization initiatives,” says Mitri Roufka, program director with IDC CEMA. Sustainability is becoming an issue for more corporations, but a survey

by Canon Hungária involving 300 companies found somewhat controversial results. Whereas 28% of respondents reported that the number of printouts was down, 17% of them claimed they would print more than before.

In the experience of Ricoh Hungary, with ever more sophisticated document management solutions available, the role of paper is losing its weight within companies; however, this process is still in its infancy with regard to firm-to-firm dealings, as in the case of invoicing. Paper-dependency is even more apparent in the government administration, where efforts are being made to bring about change, but the transition is taking place more slowly.

BBJ_2503_special_report.indd 18

Awareness has been raised on many fronts. For one, a recent initiative organized by the Association for Information and Image Management (AIIM) is called World Paper Free Day; this year it will be on November 6, with the purpose of drawing public attention to the issue.

“People instinctively like paper, and for many it still feels natural to print out a document to read, sign, edit or share,” says Bob Larrivee, chief analyst at AIIM. “But things are gradually changing as people become more comfortable using technology for such tasks and realize that e-signatures are just as valid as physical ones. Enterprises are also seeing the benefit of digitizing content for customer service, collaboration and overall productivity, which will only help the move to paper-free.”

Hardware Makes a Green Difference Part of the efforts aimed at environmentfriendliness is to operate office devices that live up to the high expectations of the green economy. Durability is key in this regard, since replacing hardcopy peripherals (HCP) and consumables less often clearly relieves the environmental burden. According to IDC, across the whole CEMA region toner and ink sales were both down in 2015 compared to 2014, by 6.7% and 6.1%, respectively, and the value of HCP (A3/A4) shipments contracted even more sharply, namely by 19% year-on-year; by contrast, Hungary and neighboring countries saw a strong growth of hardware sales due to better economic conditions.

“I think it will take 15-20 years, when the Millennials who grew up with digital photos and smartphones take over senior positions in companies, to see the transition to a paperless office. We, the Gen-Xers, are the dinosaurs hindering evolution.”

As Canon Hungária pointed out in its statement to the Budapest Business Journal, the existence of enterprises specialized in the collection of used toners and cartridges is a great progress. On the other hand, it is crucial to show responsibility when printing. By regulating electronic access to printers and using a smaller number of networkconnected printers, not only can costs be cut, but there are also environment benefits.

An extended lifecycle can be helpful too. KYOCERA uses special silicon and micro-ceramics for producing its HCPs that ensures extreme longevity, with even A4 machines being capable of delivering 1.5 million copies in the premium price range. Ricoh Hungary, in turn, often relies on parts made of recycled material for the assembly of its devices, and the full remodeling of used equipment that is known as so-called Greenline devices maximizes product

lifecycle. The company also ensures that its office equipment can handle recycled paper.

The Anti-printing Coalition Data further hints that the most organizations have either already started digitalization initiatives or are planning to do so in the near future.

Startups are “born” digital, and their printing-as-last-resort attitude is pretty much self-evident. This newly forming anti-printing coalition is bound to cause paper volume to drop, which might be seen to pose a threat to HCP manufacturers. However, they should rather see it as an opportunity, since they will still be the most likely to be asked by the client to help them with printing replacement software solutions.

Accordingly, Ricoh Hungary offers a wide range of multifunctional HCPs supporting the paperless office idea that have built-in or added software that is designed to provide cuttingedge document management solutions instead of paper-based ones. Canon Hungária has similar functions to offer.

But will we go paperless any time soon?

“I think it will take 15-20 years, when the Millennials who grew up with digital photos and smartphones take over senior positions in companies, to see the transition to a paperless office,” says Look Wee Teck, head of consumer electronics at market research firm Euromonitor. “We, the Gen-Xers, are the dinosaurs hindering evolution.”

2017. 02. 08. 22:11

www.bbj.hu

3

Budapest Business Journal | february 10 – february 23, 2017

Special Report | 19

Relax! Taking a Chilled Approach to Employees

The Prezi offices in Budapest.

To be part of the so-called Generation Y certainly has its benefits, and not just in terms of youth. Employees aged 30 and below can count on amazing workplaces, unlike anything their parents, and especially their grandparents, would have seen. Prezi and Ustream perfectly embody this concept, though many more traditional Hungarian companies are starting to follow this trend.

Today’s generation is considered more secure, open-minded, optimistic and well oriented to change, and therefore many companies are looking for candidates like them. But how can you attract them? What does Generation Y really need from a workplace?

“Providing new generations with benefits is not enough.

New generations need more flexibility, with intriguing tasks. But, of course, the office environment is crucial. When the choice is hard, a charming workplace is certainly a plus. Every company who is going after qualified people is aware of that.”

CLAUDIA PATRICOLO

“Generation Y has entirely different ideas about the ideal work environment. A high salary offer is not as promising as it used to be, and non-financial benefits have become more significant than ever,” Gergely Parti, response manager at recruitment specialist HAYS tells the Budapest Business Journal.

“Natural light, free parking, air conditioning with manual control, free coffee and snacks, green spaces, and chill-out rooms are other important office facilities for Gen Y. According to a recent Hays Hungary survey, the most important services available in the vicinity of the workplace are the variety of restaurants/ cafés, medical and sport centers, and childcare facilities. It seems that the salary and compensation package alone no longer satisfies them, which is a great challenge for the labor market as well.”

Younger employees have been raised in a technological world where all is available.

As a logical consequence, when it comes to workplaces they need something more than previous generations, otherwise they will keep looking for a different job. It is not rare for new graduates to test different roles. And many times a friendly and chilled environment is a must that can define their career forever. It is not about the money so much as the lifestyle.

“Providing new generations with benefits is not enough,” says Prezi communications

BBJ_2503_special_report.indd 19

For Gen-Y a good salary is just the starting point.

Other things matter at least as much. manager Csaba Faix. “New generations need more flexibility, with intriguing tasks. But, of course, the office environment is crucial. When the choice is hard, a charming workplace is certainly a plus. Every company who is going after qualified people is aware of that.” Prezi certainly is, to judge from its large co-working spaces, free kitchens, free libraries and musical instruments usable by everyone, in an office environment designed by the Hungarian firm Minusplus, whose motto is “Custom Made Architecture”.

The way we work has changed. So office design has had to adapt to this new way of work. “People spend most of their day time in the office. So we had to create a space where they like to stay, a space that can inspire people,” Faix adds. Prezi’s communications office, for example, was designed by the employees themselves, who were given a budget to organize and decorate the office as they wish.

“Of course, we cannot narrow it down to just Generation Y; every employee would love to work in an inspiring, lively office,” comments Balázs Varró, communications manager of Ustream, a famous Hungarian startup success that is now an IBM company. “Before moving in to our current office, we asked our colleagues what their preferences were regarding interior design and functionality.

We have many tempting features: ergonomic and colorful furniture, a big community area with table tennis, table football, beans bags and so on.”

Reshaping the space, introducing open desks, couches in the middle of meeting rooms, kitchens with healthy food ready to hand, seems to be the key for attracting the best workers. “These features are mainly provided by startups, but many traditional companies are thinking in the same way when renovating or building new offices,” notes Varró.

Parti, of Hays, agrees that other, more established companies are now also adopting new workspace approaches. “More multinational companies are following the recent trends besides startups. The reason behind that is that they simply have to accommodate to the new expectations of the labor market. If they would like to acquire the best candidates, they have to offer the work environment that they need. The greatest difficulty in the case of a Gen Y employee is keeping them. You have to offer continuous challenges, career steps, opportunities and, of course, a work environment that motivates them or they will get a counter offer and leave the company,” he explains.

“The amount of money spent on creating relax rooms and friendly spaces depends on the size of the company. Most are open to creating such places, since their first interest is that the employees perform well. Nowadays it is completely natural if a conference room has an Xbox in it, or there are thematic days with different kinds of snacks served.

Companies are aware of the importance of creating a friendly environment and they are ready to spend even more than HUF 1 million on creating a chill-room,” Parti says.

It seems that nowadays every firm has to consider that understanding the new generations is a crucial matter if they are to move forward.

2017. 02. 08. 22:11

20 | 3

Special Report

www.bbj.hu

Budapest Business Journal | february 10 – february 23, 2017

Office equipment manufacturers' branch offices Ranked by total net revenue

2

xeRox HungaRy kFt. www.xerox.hu

koniCa minolta HungaRy business solutions kFt.

7,500

✓

–

✓

–

–

✓

–

✓

RiCoH HungaRy kFt. www.ricoh.hu

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

–

✓

–

–

✓

–

–

–

Konica Minolta, Develop, KIP

3,300(2)

✓

✓

✓

–

–

✓

✓

–

–

Ricoh

✓

✓

✓

✓

✓

oWneRsHip (%) HungaRian nonHungaRian

Ÿ

1992 180

– XEROX Ltd. (100)

✓

Ÿ

1990 151

– Konica Minolta Business Solutions Europe GmbH (100)

dániel székely Péter Apjok Attila Kószás

1117 Budapest, Galvani utca 4.

(40) 200-423 (1) 464-9069 ugyfel@ konicaminolta.hu

✓

Audi Hungária Zrt., BRVZ Kft., Michelin Hungária Kft.

1990 88

– Ricoh Europe Holdings Plc. (100)

michael Raberger Péter Eperjesi Ferenc Kustos

2040 Budaörs, Puskás Tivadar út 14.

(23) 806-800 (23) 806-801 info@ricoh.hu

1992 20

László Juhász (90), Anikó Szabó (10) –

lászló juhász – Dorottya Juhász

1172 Budapest, Rétifarkas utca 16.

(1) 273-0100 (1) 273-0060 info@globalunion.hu

1992 5

– OKI Europe Ltd (100)

miroslav tyburec Łukasz Gniewosz Réka Veszeli

1133 Budapest, Váci út 76.

(1) 814-8000 (1) 814-8009 askoki@okihu.hu

Ÿ

1991 24

Zoltán Schneider (33.30), László Kasnya-Kovács (33.30), Károly Molnár (33.30) –

Zoltán schneider József Merth László Kasnya-Kovács

1089 Budapest, Delej utca 41.

(1) 477-4050 (1) 477-4060 posta@kvint-r.hu

Ÿ

1994 9

– Brother Holding (Europe) Ltd (100)

tomonaga takashi – –

1117 Budapest, Budafoki út 209.

(1) 382-7450 (1) 382-7455 sales@brother.hu

– Canon Europa N.V. (100)

Győző Kroó Orsolya Földi Csaba Kátai

1037 Budapest, Záhony utca 7.

(1) 237-5900 (1) 237-5901 info@canon.hu

2008 9

– Epson B.V (100)

Hideki kitamura, lena saw seang giak, michelle elizabeth mecklenburgh – –

1117 Budapest, Infopark sétány 1.

(1) 382-7680 (1) 382-7689 info@epson.hu

Ÿ

2014

– Alpha Holding Two B.V. (100)

kristóf takáts Zoltán Szalai –

1117 Budapest, Alíz utca 1.

(1) 485-6580 (1) 885-3302 –

Ÿ

1989

– Samsung Electronics Corporation Ltd. (100)

joseph (jeongwoo) kim Kim Ki-sup –

1138 Budapest, Dunavirág utca 2.

(1) 453-1100 (1) 453-1103 –

aCCessoRies

Home deliveRy

Consulting

Rental

Xerox

(1)

5,731

paRts supply

otHeR –

www.konicaminolta.hu

3

RepaiR

bRands CaRRied sCanneRs

visual teCHnology

multiFunCtional maCHines

sHReddeRs

Fax maCHines

digital CopieRs

optiCal image CopieRs

laseR pRinteRs

Company Website

seRviCes

yeaR establisHed no. oF Full-time employees on jan. 1, 2017

1

total net Revenue in 2016 (HuF mln)

Rank

pRoduCts

✓

majoR Clients in 2016

4

global union kFt.

2,000

✓

–

–

–

–

✓

–

✓

Toners

Kyocera Document Solutions

✓

✓

✓

✓

✓

✓

Knorr-Bremse Vasúti Jármű Rendszerek Hungária Kft., Lufthansa Systems Hungária Kft., Volvo Hungária Kft., Extreme DIgital Zrt., Libri, TV2

5

oki systems (HungaRy) kFt.

1,689

✓

–

✓

✓

–

✓

–

–

Accessories

OKI

–

✓

✓

✓

–

✓

MOL, Richter Gedeon, NAV, Magyar Posta, OTP Bank, Orex

✓

Professional 3D printers

3D Systems, UTAX, Dascom, Printronix, Microplex, Lexmark

✓

Labelling equipment

Brother

✓

Printing machines, wide format printers

Canon, Therefore, Iris, UniFlow, Irista, Lifecake, hdbook

6

www.globalunion.hu

www.okihu.hu

kvint-R kFt.

575

www.kvint-r.hu

bRotHeR CentRal&easteRn euRope gmbH NR magyaRoRsZági keReskedelmi képviselete

Ÿ

✓

✓

✓

–

✓

–

✓

✓

–

–

✓

✓

–

–

✓

✓

✓

✓

✓

✓

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

veronika brazdilova Emőke Vass Júlia Péter-Kiss

1138 Budapest, Madarász Viktor utca 47-49.

(1) 436-8800 (1) 436-8801 info@xerox.hu

www.brother.hu

Canon NR HungaRia kFt.

Ÿ

www.canon.hu

epson euRope b.v.

HungaRian bRanCH NR oFFiCe

Ÿ

✓

✓

–

–

–

–

–

–

–

–

✓

✓

✓

✓

–

Epson

Ÿ Ÿ

–

HewlettPackard

✓

✓

–

✓

–

✓

–

✓

–

–

–

–

–

Ÿ

Ÿ

www.epson.hu

Hp inC

NR magyaRoRsZág kFt. www8.hp.com/hu/hu

samsung eleCtRoniCs NR magyaR ZRt.

Ÿ

Ÿ Ÿ Ÿ Ÿ

–

Ÿ

Ÿ

✓

–

–

–

–

✓

✓

✓

Smart phones, tablets, cameras, data transmission equipment

Ÿ

✓

–

✓

✓

–

✓

✓

–

Interactive board

www.samsung.com

sHaRp eleCtRoniCs (euRope) gmbH

NR HungaRian bRanCH

oFFiCe

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Samsung

✓

✓

✓

✓

–

–

Sharp

✓

✓

✓

✓

✓

✓

www.sharp.hu

Ÿ

1994

Ÿ

Ÿ

Ÿ

2008 11

– Zsolt szabó Sharp Electronics Maciej Skupinski (Europe) GmbH Adam Bieniewski (100)

1117 Budapest, Infopark sétány 1. I/6 (1) 815-2500 (1) 815-2501 eniko.laczko@sharp.eu

NOtes: (1) Data of business year April 1, 2016-December 31, 2016. (2) Data of business year April 1, 2015-March 31, 2016.

Ÿ= would not disclose, NR = not ranked, NA = not applicable

BBJ_2503_special_report.indd 20

This list was compiled from responses to questionnaires received by February 8, 2017 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

2017. 02. 08. 22:11

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| 21

www.bbj.hu

Budapest Business Journal | february 10 – february 23, 2017

Socialite

Snapshots of ‘Radical Eye’ Photography

A major exhibition at the Tate Modern in London

draws on the photography collection of pop legend Sir Elton John, and, among others, features the work of three giants of Hungarian, indeed world, photography.

DAVID HOLZER

On a recent visit to London, my Hungarian partner visited the Tate Modern art gallery on the south bank of the River Thames. I spent the day attempting to think outside the box with a group of frighteningly enthusiastic hipsters. We met up in an astonishingly loud pub near Blackfriars Bridge.

“How was your day?” I bellowed.

“I saw the Elton John photography exhibition,” she shouted back. “It was good.

Are all London pubs so noisy?”

“They are at this time. It’s terrible.”

“I like it,” she said. “Hungarian bars are never like this.”

Later on, in a reasonably quiet restaurant, she told me that the exhibition included some Hungarian photographers.

“There was a film of Elton John talking about the people he liked most. One of them, Kertész Andor, was Hungarian but I think Elton John believed he was Polish,” she giggled.

Hungarians are very proud of any other Hungarian who makes their mark in the big wide world. Justifiably so, in my opinion. The number of Hungarians who have influenced the visual arts, in particular is quite disproportionate to the size of the population. A Hungarian photographer friend recently told me that Hungarians created Hollywood. I’m in the process of investigating this extravagant claim but who knows, it might be true.

It is true that Goldie Hawn is half Hungarian, which makes her daughter Kate Hudson a quarter Magyar. Rachel Weisz has a Hungarian inventor father.

After a couple of years of living in this country I’ve learned to recognize that Hungarian women possess a certain set to the jaw and often have large, penetrating eyes. I can see now that Hawn, Hudson and Weisz have Hungarian blood.

I was amazed to find out that Ilona Staller, also known as Cicciolina, is Hungarian. That, of course, is another story altogether.

But back to photography. The Elton John exhibition is called “The Radical Eye: Modernist Photography”. And it’s clear that some of the most radical eyes belong to three Hungarian photographers.

BBJ_2503_socialite.indd 21

László Moholy-Nagy

One of the first photographs Elton John ever bought was Moholy-Nagy’s “View from the Berlin Tower” (1928) which he says looks like a surrealist painting from that period. It actually looks rather more like a Constructivist painting.

Constructivism began in Russia around 1913, before Socialist Realism got a stranglehold. It’s hugely influential, and remains as hip as it ever was.

Moholy-Nagy was born in Bácsborsód in 1895. He lived for a time in Szeged before heading for Vienna in 1919. In 1920, he left for Berlin where he became involved with the Bauhaus movement. MoholyNagy worked with typography, sculpture, painting, printmaking and industrial design as well as photography.

As a photographer, he came up with the term “New Vision”, reflecting his belief that photography had the power to create a new way of seeing the world that the human eye couldn’t.

When the Nazis came to power, the Jewish Moholy-Nagy left for the Netherlands before travelling to London.

In 1937 he moved to the United States where he died in 1946. Moholy-Nagy’s legacy is substantial. The University of Art and Design in Budapest named after him.

Brassaï Elton John’s collection also includes a photograph of two half-dressed men in a pre-war Paris nightclub. Brassaï is at the other end of the spectrum to MoholyNagy, interested in capturing all human life, especially as lived in the twilight underworld. It is pretty easy to see why his photographs would appeal to Elton John.

I have to say I had absolutely no idea that Brassaï was Hungarian. He was born Gyula Halász in Brassó, now Romania, in 1899 to an Armenian mother and Hungarian father. His pseudonym means ‘from Brasso’. Brassaï studied painting and sculpture at the Hungarian Academy of

Fine Arts in Budapest. After World War I, he went to Berlin, before moving to Paris in 1924. Here he lived among the artists in Montparnasse and befriended Henry Miller, chronicler of Paris’ erotic lowlife and lover of Anais Nin. Brassaï’s 1933 book “Paris de nuit” was an immediate success and contains many of the louche images we associate with him today.

Brassaï went on to photograph many of the great artists and writers of his time. He remained in Paris throughout World War II. After the war he had exhibitions in the United States. He died in 1984.

One of the men Brassaï befriended in Paris was the Hungarian Andor Kertész, better known in the West as André. I knew absolutely nothing about him.

André Kertész Elton John regards Kertész’ “Underwater Swimmer, Esztergom, Hungary” (1917, pictured above) as the most important photograph in his collection. He argues that “Underwater Swimmer” has had an enormous influence on photographers and artists – David Hockney springs immediately to mind – and revolutionized the way the male body is depicted by making it appear sexy.

In “Kertész on Kertész”, the photographer explained how the photo came about. “After I was wounded [in World War I] I was in the hospital for almost nine months. We went swimming in the pool every day, and I realized the distortions in the water. When I photographed them my comrades said, ‘You are crazy. Why did you photograph this?’ I answered: ‘Why only girl friends?

This also exists.’ So I photographed my first distortion in 1917.”

Which makes it all sound very simple doesn’t it? In fact, Kertész kept on pushing the boundaries, as my young hipster friends would put it, up to his death.

He was born in 1894 in Budapest.

Although trained as a stockbroker, Kertész

fell in love with photography when he first encountered it in magazines. His own photographs were first published in the magazine Érdekes Újság during World War I, when he served in the AustroHungarian army.

After the war, Kertész returned to stockbroking, but couldn’t stick at it. In the early 1920s he worked in agriculture and as a beekeeper. He returned to the stock exchange but carried on with his photography. In 1925 he left for Paris.

Apparently, while in Paris, Kertész was the first photographer ever to have a one-man show, at the Sacre du Printemps gallery. He also joined the Dada movement, becoming “Brother Seeing Eye”. On the commercial front, Kertész became a highly successful photojournalist, commissioned to produce pure photo essays.

In 1936, for the usual reasons, the Jewish Kertész emigrated to New York.

In the beginning, America was far from being the promised land for him and his wife. He was designated an enemy alien and forbidden to take photographs on the street. But in 1945 Kertész’ book “Day of Paris”, photographs taken just before he fled the French capital, became a critical success in the States.

Up until 1964 Kertész was a magazine photographer but, in that year, he was given a solo show at the Museum of Modern Art. With his work critically acclaimed, Kertész’ status as an important artist was assured.

Despite this, he never quite felt recognized enough. He travelled constantly, getting by with a mixture of “Kertészian” (Hungarian, English and French). Throughout the 1980s he experimented with polaroids and made images every bit as striking and beautiful as “Underwater Swimmer”.

André Kertész died in 1985.

“Radical Eye” is on at the Tate Modern in London until May 7. I am unaware of dedicated spaces in Budapest where you can see the work of MoholyNagy, Brassai or Kertész, but it’s always worth checking out the Capa Center (officially the Robert Capa Contemporary Photography Center, dedicated to yet another internationally famous Hungarianborn photographic giant) at Nagymező utca 8, off Király utca. Slightly further afield, the Hungarian Museum of Photography (fotomuzeum.hu/en) in Kecskemét, certainly has examples of the work of all three in its collection.

2017. 02. 08. 22:11

22 | 5

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www.bbj.hu

Budapest Business Journal | february 10 – february 23, 2017

WHAT’S 10TH BUDAPEST MANGALICA FESTIVAL Szabadság tér 1054, Budapest, Szabadság tér Free entry February 10-12 Every February, Budapest’s central Szabadság tér is the site of a celebration for a Hungarian breed of domestic pigs, Mangalica, in a buoyant festival featuring a wide range of Mangalicabased meals cooked on the spot under the open sky, alongside handcrafted goods of local producers, Hungary’s finest wines and pálinka specialties, and livemusic performances during February 10-12. One of the major attractions of the festival is usually the live animal exhibition, where animals of the three breeds (blonde, red, and swallow-belly Mangalica swine) and a sow with her piglets are moved into a temporary corral on the square. This folk festival is accessible to anyone free of charge. All products are from checked stocks by the National Association of the Mangalica ADVERTISEMENT

Breeders. (If pork, hairy or otherwise, is not your thing the 5th Budapest Fish Festival also runs from February 10-12 at Vajdahunyad Castle at Városliget.

Talented chefs of participating restaurants present mouthwatering meals made of freshwater fish from the lakes and rivers of Hungary, alongside a variety of international treats, including sushi, Russian caviar, and even English fish & chips.)

BUDAPEST DANCE FESTIVAL Various venues February 18-March 1 An exciting exhibit and prodigious dance performances of talented troupes from Hungary, the Netherlands, Scotland, and Spain form the Budapest Dance Festival, happening from February 18 through March 1 at several stunning cultural venues in Budapest, such as the Palace of Arts, the MOM Cultural Center, the National Theater, the Liszt Ferenc Academy of Music, and the Pesti Vigadó. Visitors to this festival can enjoy

performances of the Nederlands Dans Theater 2, La Veronal from Spain, and the Szeged Contemporary Dance Company, among others.

BALL OF HUNGARIAN WINES Corinthia Hotel Budapest 1073 Budapest, Erzsébet körút 43-49 February 25 The Ball of Hungarian Wines annually welcomes an elite crowd to sample 100 of the country’s finest reds, whites, and sparkling whites amid the exclusive interior of the Corinthia Hotel Budapest.

Beginning at 6:30 p.m. on February 25, Magyar violin virtuoso Norbert Döme welcomes visitors with live melodies, while from 7 p.m. guests can enjoy beautifully presented mouthwatering dinner meals, such as creamy camembert with Granny Smith apple and radicchio, confit goose leg with butternut squash textures and savoy cabbage, or beef tenderloin with foie gras

and root vegetables, all amid jazz and swing melodies.

BUDAPEST BOAT SHOW HUNGEXPO Budapest Fair Center 1101 Budapest, Albertirsai út 10 (Expo tér 1) February 23-26 Visitors to the city’s sprawling fair center can admire a wide variety of sailboats, electronic vessels, and motorboats, alongside boating accessories like technical outerwear, footwear, apparel, and boating gear, all presented in one place. Besides the impressive ships and fresh innovations, marine lovers can join thematic programs during the four-day show, like a knottying competition and much more.

Text provided courtesy of WeLoveBudapest.com

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Ebi yakisoba ( Pirított zöldséges tészta, nyársra húzott grillezett rákfarokkal)

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Budapest Business Journal | february 10 – february 23, 2017

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Fine Furmint Finally Shows up en Masse at Annual big Bash

The centerpiece event of “Furmint February” followed the day after the world’s very first “International Furmint Day” of February 1 and many of the wines poured were indeed worthy of being unleashed on an international audience.

ROB SMYTH

For a long time dry Furmint has often flattered to deceive, but there is mounting evidence that winemakers from the Furmint fortresses of Tokaj and Somló, and increasingly beyond, are getting it right. Earlier the considerable qualities of the grape were often hidden behind a mask of oak, high alcohol and searing acidity, but many of the wines served at the main event this year showed much more subtle use of oak, if any oak at all, and better balance concerning alcohol and acidity.

Furmint is well on the restrained side when it comes to aromatics and its quince, pear, lemon, green apple, and hazelnut aromas, or those hard to pindown subtle salty-savory notes that can appear when grown on volcanic soils as in Tokaj and Somló, can fade to grey when it’s battling against barrels. On the other hand, Furmint can be quite full-bodied and hardly needs propping up with wood in the first place.

While Furmint’s pedigree in making Tokaji Aszú and other sweet lateharvest wines dates back centuries and is unquestionable, it’s only in this century that this late-ripening, thinskinned white grape has been used for making dry wines of serious breeding in Tokaj as producers, led by István Szepsy and Oremus, sought to find a dry alternative as global demand for the sweet stuff diminished. Every year, more grape growers and winemakers

are getting on the seemingly unstoppable dry Furmint train and planting the grape up and down the land, or re-introducing it where it once thrived before the Phylloxera louse devastated vineyards in the late 19th century.

Furmint is now re-establishing itself around Lake Balaton, especially on and around the northern shore.

From Csopak, Szent Donát’s Márga 2015 comes from a vineyard comprising marl soil and was vinified in a combination of French oak, tank and concrete. It has retained delightfully vibrant aromas and has a fresh, taught and focused palate. The 2013 version of Márga has picked up nice complexity with the passage of time. Also from Csopak, Petrányi Pince showed its first attempt with its 2015 bottling, having replaced half a hectare of Tramini with Furmint.

This one comes from limestone and clay soils, and was fermented in the tank with part of it then aged in barrels for a year. It more than justifies the grubbing up of the Tramini.

From further east along the northern shore in the Káli Basin, Pálffy Riválisok 2015 is an impressive blend of 12 barrels – six of each of both Furmint and Olaszrizling, originating from the volcanic basalt soils of Feketehegy. Furmint is widely considered superior to Olaszrizling (although the latter grape does come into its own on the northern side of Lake Balaton) but the two “rivals” certainly hit it off in this blend.

Incidentally, Furmint could soon surpass Olaszrizling as Hungary’s most widely planted white grape, if it hasn’t done already, given the race to plant it while Olaszrizling stagnates.

Generally it still remains to be seen how capable dry Furmints are of ageing, given the fact that the high-end stuff is very new. From the Tokaj town of Mád, Géza Lenkey pulled in a crowd with wines stretching back to 2006, which are waxy, mushroomy and complex.

Here are two wines that show two different sides of Furmint:

Montium Birtok Furmint 2015 (Tokaj) This estimable blend from a newish winery in Legyesbénye, on the southern limits of the Tokaj wine region, comes from a cocktail of volcanic soils on south-facing slopes. It is soft, fruity and zesty and despite having seen no oak, this wine misses nothing in

terms of body. Everything at Montium is made in the tank, but the fermentation is carried out via the naturally occurring indigenous yeast present on the grapes and in the cellar.

This wine strikes a nice balance between roundness, ripe fruit (pear, peach) and freshness.

Dry Furmint is often highly priced but this is terrific value at HUF 2,950 (Bortársaság).

The excellent Judit Bott, who herself was given advice

by Tokaj doyen István Szepsy when she arrived in the region, has helped Montium’s Ferenc Ringer and Péter Csorba to get started.

Gilvesy Próbaüzem (unfiltered Furmint) 2015 (Badacsony) The “virgin vintage” of Gilvesy Furmint shows the considerable potential of the grape in the Badacsony region. It hails from the Váradi vineyard on Szent György-hegy and was fermented (spontaneously from indigenous yeast) and aged in third-fill, 500-liter Zemplén oak barrels (made

by Kádár Hungary) for seven months.

This is a wine that has finally come of age and I recall not being bowled over by it originally. It’s mellowed with a bit of age to become a deliciously rounded specimen, which is full-bodied and concentrated with a waxy texture, tropical and stone fruit notes, a tasty touch of oak and a long fruity cum saline finish. The bad news is that there’s not much of it left, but it gives a lot for HUF 3,450 (Bortársaság).

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