THE ECONOMY OF VAS COUNTY, WESTERN HUNGARY 2021-2022

SERVICE 15 The foundations of today’s Galambos Group were laid by Gyula Galambos in 1991, when he bought a second-hand truck and founded a private company in Szombathely, Hungary, which was engaged in international freight transport. The company was taken over by his sons in 2002 and has been growing steadily under the name of Galambos Trans Kft. ever since. According to the needs of their rapidly expanding clientele, the brothers realized that they could further strengthen their market position by providing logistics services in addition to transportation. As a result, in 2006, they bought a 7.3 ha premises in Vép, where they planned a logistics center, a truck parking lot and a restaurant, moreover, in 2007, they established Galambos Logistic Kft. and Galambos Grill Kft. The headquarters of the Galambos Group in Vép is located next to the road connecting Vép to the M86 expressway. The site is located about 1.5 km from both the center of Vép and the expressway as well as about 7 km from Szombathely, with the two nearest border crossing points with Austria 25 and 30 km away. The site is within easy reach of three capital cities (Budapest, Bratislava, Vienna) and several Adriatic ports. Initially, a 2 500 m2 high-bay warehouse including a few hundred square meters of outdoor storage space was available before being expanded over several stages to 25 000 m2 by 2020 in response to customer demand. The latest warehouses are already taking advantage of the latest technological advances to increase their efficiency by using semi-automatic forklifts with an inductive guidance system and narrow aisle racking. Clients of Galambos Logistic Kft. can On Roads to the Future Together Galambos Group make the most of these facilities as well as an additional 31 000 m2 of rented warehouse space. Although the main activity of the company is production support logistics, a range of other services are also offered to their customers, e.g. warehousing, commissioning, repackaging, handling damaged goods, labelling, multipack production, shrink-wrapping, assembly of packaging materials and warehousing with authorization from public customs warehouses. In 2014, the range of services was extended and now includes the cleaning of packaging to treat returnable packaging materials used by the company’s multinational partners. The logistics service activities of Galambos Logistic Kft. encompass the transportation activities of Galambos Trans Kft., which will enable the provision of a more complete range of services at the group level. A number of factors pushed the owners to meet the need for capacity expansion. The most significant of these are the proximity of Vas County to the Austrian and Slovenian borders, the continuous development of the Hungarian road and railway networks, which positively affects Szombathely, the decreasing availability of satisfactory free warehouse space in the region, the development of our existing and new partner companies, as well as the aims to meet their needs at the highest possible level and develop these stable partnerships. The main elements of these developments include the acquisition of land, the construction of a 12 700 m2 warehouse with modern shelving and forklift trucks as well as a 1 060m2 industrial cleaning hall for the cleaning of industrial packaging, including the installation of new crate washing equipment to enhance the complexity of the project. Today, the demand for the cleaning of packaging is growing exponentially throughout Europe, even in Hungary. The demand from various manufacturing companies for the cleaning and treatment of internal, in-process packaging materials is increasing. At present, no such free washing/cleaning capacity exists in the region that can be used by external customers. For the time being, this service is sufficiently geographically remote to generate significant extra costs for local companies in the area. Two members of the group are involved in the project. Galambos Holding Kft. will invest in real estate (land acquisition and construction), while Galambos Logistic Kft. will provide the high-level professional background as well as implement the procurement of logistics services and equipment related to the cleaning of packaging materials. Even though this development, expected to be completed by 2023, will also provide the Group with new opportunities for cooperation in the fields of warehousing and the cleaning of packaging materials, a new logistics center will be required on the outskirts of Szombathely. To meet the needs of their clients, companies always place great emphasis on reliable and efficient operations guaranteed by meeting the criteria set out by the international standard ISO 14001 for environmental management systems, introduced in 2012, and ISO 9001 for quality management systems, introduced in 2016. In 2022 Galambos Logistic Kft. introduced AEO certificate as well, which is a partnership programme between the customs authority and the economic operators. Corporate social responsibility is important to this family-run business which regularly supports local schools, kindergartens, sports clubs, cultural events and church communities. Accuracy, fast work and reliable partnerships are the hallmarks of the members of the Group, which are confirmed by their customers and suppliers. Day-to-day work is organized with the specific needs of their clients in mind. Optimal solutions are provided for a wide range of transport and logistics services while paying the maximum amount of attention and capitalizing on decades of experience. 14 INDUSTRY Stellantis engine and component manufacturing plant in Szentgotthárd, Vas County, is one of the most important automotive manufacturing facilities in Hungary. The plant started operation in March 1992 and initially it consisted of engine and component manufacturing and car assembly operation. Car assembly ceased production end of 1999, and thereafter main profile of the plant remained engine and component manufacturing. Official name of the plant is Opel Szentgotthárd Ltd. and it is operating as part of the Stellantis leading global automaker and mobility provider with industrial operations in nearly 30 countries and commercial operations in 130 markets worldwide. The plant is the only Stellantis production facility in Hungary. Opel Szentgotthárd main product is the three-cylinder 1.2 litre displacement internal combustion petrol turbo engine under commercial name PureTech. Yearly production capacity is 390 thousand units. The plant operation consists of engine component manufacturing (crankshaft, cylinder block and cylinder head) as well as general assembly of the engine. Customers for the engine are other Stellantis car assembly plants in Europe. Total production volume was over 290 thousand engines, average headcount of the plant was 807 and net sales over 89 mio. Eur – all figures for calendar year 2021. Opel Szentgotthárd Ltd. - Stellantis Integration works of a new, four-cylinder internal combustion petrol engine family have started in the plant, start of production is scheduled for mid-2023. Much of the integration works of the new engine on the existing production lines will be performed in-house using do-it-yourself approach based on internal knowledge and experience of the local workforce. Opel Szentgotthárd’s Environmental Management System is ISO 14001:2015 certified and the plant Quality Management System is IATF 16949 certified. In the production the plant widely implemented automated data-based decision-making processes to significantly improve quality and productivity. With direct and indirect employment through on-site suppliers, Opel Szentgotthárd is one of the major employers of Vas County and a significant contributor to the County economic output and export. Based on net sales, total export value and number of employees, the plant is in the 10 biggest companies of Vas County – data from 2020 calendar year. Opel Szentgotthárd is also embedded in the trade and higher education system of Vas County by providing theoretical and practical training to students on site within the framework of dual education system.

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