Hungarian business news from previous week – 25th week, 2021

Székesfehérvár, Hungary. Photo: MTI

See below main business and financial news from the previous week:

MVM GETS INVESTMENT-GRADE RATINGS FROM S+P, FITCH

Wholly state-owned Hungarian energy company MVM was assigned investment-grade ratings by S+P Global Ratings and Fitch. MVM chairman-CEO György Kóbor said the ratings would further strengthen MVM group’s ties as a borrower and a business partner as well as clear the way for drawing resources on international markets.

Fitch said the ‘BBB’ rating reflects “MVM’s high market share and an integrated position across the various segments of the Hungarian electricity and gas markets”.

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MAGYAR SUZUKI REVENUE FALLS 31 PC IN 2020

Net revenue of the local unit of Japanese car maker Suzuki fell by 31 percent to 1.656 billion forints (EUR 4.7bn) last year, Magyar Suzuki director of operations Róbert Krisztián said.

Magyar Suzuki turned out 112,475 vehicles at its plant in Esztergom, in northern Hungary) last year, and 111,044 of those cars were sold.

In 2019, around 185,000 of the cars produced at the plant were sold. Magyar Suzuki shut down production for six weeks in the spring of 2020 because of the pandemic. Krisztián said Suzuki plans to make around 143,000 vehicles in Esztergom this year.

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VITESCO INVESTS HUF 36 BN IN CAPACITY EXPANSION IN HUNGARY

Plans were announced for Vitesco Technologies, a business of Germany’s Continental, to invest 36 billion forints (EUR 10.3mn) to expand capacity at its base in Debrecen, in eastern Hungary. The government is supporting the investment, which will create 450 jobs, with a 10.5 billion forint grant.

HUNGARY WEIGHS ROLE AS TRANSIT COUNTRY FOR GAS FROM KRK LNG TERMINAL

A top official of the Hungarian Energy and Public Utility Regulatory Authority (MEKH) proposed the establishment of a working group to consider a closer cooperation with Croatia’s gas market at an international conference of gas industry insiders in the coastal town of Opatija.

MEKH VP for international relations Pál Ságvári said Hungary’s gas network, connected to nearly all of its neighbours, could serve as a delivery mechanism for gas from Croatia’s recently inaugurated LNG terminal off the island of Krk to countries such as Ukraine.

CORDIA INVESTS IN UK AFFORDABLE HOUSING PROVIDER

Cordia, the residential property business of Hungarian developer Futureal, said it partnered with Matter Real Estate on an investment in Auxesia Homes, a registered provider of social housing in the UK. Auxesia Homes’ main customers are British Armed Forces, National Health Service and Emergency Service personnel.