THE ECONOMY OF VAS COUNTY, WESTERN HUNGARY 2021-2022

THE ECONOMY OF VAS COUNTY, WESTERN HUNGARY 2021-2022

2 PROLOGUE We would like to express our gratitude for your interest in the economy of Vas County, the westernmost region of Hungary located on the border with Austria. Situated at the crossroads of trade routes that have been important since antiquity and Roman times, the area marking the dividing line between Eastern and Western Europe has been a lively intermediary for thousands of years with significant investor interests. The Chamber of Commerce and Industry of Vas County coordinates the activities of more than 20,000 businesses. The greatest asset of our Chamber is the combined knowledge, experience, support and cooperation of our members as well as partners, in addition to that of our business leaders and entrepreneurs in the county. We also feel it is important to showcase our uniqueness, that is, our talents and skills, the vibrancy of our region as well as our economic and scientific frameworks to our current and future partners, not only to those in business. On behalf of the economic authority and business network of Vas County, I wish you a fruitful time studying this publication. Should you be interested, we look forward to welcoming you in our region! Vince Kovács President of the Chamber of Commerce and Industry of Vas County The economy of Western Hungary, including Vas County, is extremely open due to its geographical location, moreover, is organically linked to European and global networks with all the advantages and disadvantages that this entails. The capitals of the neighbouring countries (with the exception of Ljubljana in Slovenia) are all closer to Vas County than the Hungarian capital, Budapest. Roughly halfway between Vienna (or Bratislava), Graz and Zagreb, Vas County is centrally located with regard to transport links running from both north-south and east-west. Therefore, it is no coincidence that the Chinese state planned a cargo airport here a decade ago. The county’s economy is characterized by the strong presence of multinational companies, predominantly automotive suppliers, and, traditionally, a broad spectrum of trade in services: health tourism activities are prominent as Western Hungary hosts the majority of Western European visitors not visiting Budapest for a city break. Although Bükfürdő and Sárvár are internationally renowned spa resorts, Szombathely - the former Roman town in Vas County - is also the birthplace of St. Martin, so, in addition to health tourism, there is also a plethora of opportunities for the development of cultural tourism, including the jewel of the region (Kőszeg), one of the oldest churches in Hungary (Ják) and the relics of the cult of Mary (Celldömölk). Vas County was the centre of ornamental horticulture in Hungary (with events and wonderful arboretums that remain renowned to this day), moreover, with its suppressed thermal springs and extremely fertile river valleys (Rába and Répce), could easily become a center for the production of greenhouse vegetables. Even though Szombathely, the county town of Vas County with a population of 80,000, has been a major university town for a century now, the activities of smaller towns are also becoming increasingly important because of their high-quality educational facilities (Kőszeg, Sárvár, Celldömölk, Szentgotthárd, Körmend, Bük, etc.). Three universities are present in the region, including Hungary’s top university, Eötvös Loránd University (ELTE), which is based in Budapest and is working ever more closely with large companies in the county (dual training in mechanical engineering and tourism, a course in the chamber of commerce at the university, etc.). As a center for healthcare from primary and secondary to higher education - building on the infrastructure as well as expertise of health tourism, sports and recreation - it is no coincidence that becoming a hub of the healthcare industry is the county’s most important medium-term strategic plan in addition to automotive and logistics developments. Many potentials in cooperation with Austrian and Slovenian authorities as well as economic, educational (vocational and scientific training) and municipal actors remain untapped. As an authority, it is our fundamental task to initiate and support such progress. THE MAIN FEATURES OF THE ECONOMY OF VAS COUNTY 3 In Vas County, the past 30 years since the end of the Cold War (in 1990) have brought about real growth in both its economic output and income of 50 and 75%, respectively. The role of the real economy, especially of a few predominantly foreign-owned companies, has been key in terms of its expansion, both in absolute terms and overall. In terms of GDP per capita, the County is among the highest in Hungary, moving up one or two positions every year, moreover, by and large, the same is true of incomes. In spite of rising price levels and the weakening exchange rate of the forint leading to the rapid erosion of wage growth, gross domestic income has rebounded strongly after the COVID crisis, with the County ranking between third and fifth nationwide in this respect. In Vas County, the value added generated by firms is sufficiently stable and its contribution to the County’s GDP is steadily increasing (from approximately 40% to close to 60%). The three main components of the value added generated by local firms (profit after tax, depreciation and personnel costs) have followed a broadly similar trend, what’s more, this tendency is without a doubt encouraging as well as paints a clear picture, namely profitability has increased dramatically year after year. Meanwhile, this increase over the last 6-8 years has brought about a marked change in the magnitude of both depreciation and personnel costs. The link between the dramatic increase in the share of personnel costs (over 60%, compared to approximately 20% some years ago!) and the shortage of staff is undeniable. The proximity to Austria is one of the main economic driving forces in the County, with people living near the border often crossing over into Austria to work, moreover, salaries comparable to those in Austria are often an expectation on the Hungarian side of the border. At the end of December 2021 in Vas County, which has a similar population to that of the Austrian province of Burgenland, the majority of the 44,000 enterprises, that is, 35,000, were registered as sole proprietors, while the minority, 8,600 to be exact, were registered as partnerships. 173 businesses were registered per thousand inhabitants in the County, an increase in entrepreneurship compared to the previous year. 92% of all partnerships employed 9 members of staff or less, while the number of enterprises with more than 249 employees was 27 in the County. In terms of their main activities, partnerships in trading, scientific and technical activities as well as construction and industry were most common, while those self-employed were most prevalent in the fields of agriculture and real estate. By examining the composition of enterprises based on turnover, those leading the TOP100 list of the County are exclusively foreign-owned companies. The largest domestic firm is a food company from Sárvár that finished 12th in the aforementioned ranking. The County’s industrial production was worth HUF 1.4 billion (approximately EUR 3.8 million) and the amount per capita of HUF 5.5 million (slightly less than EUR 15,000) was 31% higher than the national average. Exports account for four fifths of industrial sales, while mechanical engineering accounts for a dominant share of industrial production. The basic conditions required for production infrastructure are mainly available in industrial parks, which have been established by municipalities in all the major towns, in addition to the county seat. Along with stagnation nationwide, new projects for construction organisations in the County are on the rise: in 2021, companies signed new contracts worth HUF 41.7 billion (approximately EUR 110 million), 15%more in volume than recorded during the previous year. New investments worth HUF 147 billion (approximately EUR 400million) in 2021 by business organisations were 11% higher than a year earlier according to comparable prices. The rate of increase was much higher than that recorded nationwide of 2.3%. 65% of all the investments were made by enterprises employing at least 50 workers. 29% of development funds were used for the construction of buildings and other structures, while 70% facilitated the purchase of machinery, equipment and vehicles. In 2021, the retail network of Vas County had a turnover of HUF 327.2 billion (approximately EUR 875 million) according to current prices, equating to 2.6% of the national turnover. Themain driving force behind regional tourism is medical and wellness tourism services related to medicinal and thermal waters, respectively, with a high number of overnight stays concentrated in Bükfürdő and Sárvár. Other major tourist destinations are Kőszeg with its cultural values and mountainous environment, the Őrség Region with its folk traditions and characteristic dispersed or scattered (locally referred to as “szeres”) settlement structure, as well as Szombathely where, in addition to tourism, both professional and religious tourism are significant. The increasing role of both health prevention and healing in the tourismoffered by spa towns is in line with trends in national demand, with more than 10% of foreign tourists arriving for medical tourism purposes. As far as foreign guests are concerned, visitors from the Czech Republic, Austria and Germany stayed the most nights in accommodation located in Vas County. Regarding the labour market in the County, 130,000 people were employed and 2,000 unemployed. The number in employment was not significantly different from that recorded during the previous year, while the figure of unemployed individuals decreased by more than the national average. The unemployment rate was 1.2%, lower than the national average of 3.7% as well as one of the lowest among those of the capital city and counties of Hungary. Our Chamber strives to promote the interests of entrepreneurs in Vas County in accordance with those of the economy and society for the purpose of shaping the economic environment by participating in economic development and economic policymaking. As a result, high-quality services facilitate the business activities of enterprises while ensuring safe business transactions and fair market conduct. 9,0% 8,0% 56,0% Textile, clothing Others Food Industry 13,0% Chemical Industry 14,0% Machine Industry

4 TOP100 1-50 TOP100 1-50 5 Company name Main Economic Activity 1. Schaeffler Savaria Kft. Manufacture of other parts and accessories for motor vehicles 2. Aptiv Services Hungary Kft. Manufacture of electronic components 3. BPW-Hungária Kft. Manufacture of other parts and accessories for motor vehicles 4. TDK Hungary Components Kft. Manufacture of electronic components 5. LINDE GÁZ Magyarország Zrt. Manufacture of industrial gases 6. CELLCOMP KFT. Manufacture of non-domestic cooling and ventilation equipment 7. FALCO Zrt. Manufacture of veneer sheets and wood-based panels 8. Allison Transmission Hungary Kft. Manufacture of other special-purpose machinery n.e.c. 9. Paccor Hungary Kft. Manufacture of plastic packing goods 10. Opel Szentgotthárd Kft. Motor vehicle manufacture 11. AVIA DIESEL Kft. Wholesale of fuel and motor fuel 12. TARAVIS Kft. Production and preserving of poultry meat 13. SCHOTT Hungary Kft. Manufacture and processing of other glass, including technical glasswar 14. MAM-HUNGÁRIA Kft. Manufacture of other plastic products 15. KROMBERG és SCHUBERT Kft. Manufacture of other electronic and electric wires and cables 16. Kiswire Szentgotthárd Kft. Manufacture of basic iron and steel and of ferro-alloys 17. ADA Nova KFT. Manufacture of other furniture 18. Pangea Made Kft. Tanning and dressing of leather; dressing and dyeing of fur 19. Swietelsky Vasúttechnika Kft. Railway construction 20. ADA HUNGARIA Kft. Manufacture of other furniture 21. Ivy Technology AMS Hungary Kft. Repair of machinery 22. GRAVITÁCIÓ KFT. Wholesale of wood, construction materials and sanitary equipment 23. HÉTFORRÁS Zrt. Warehousing and storage 24. KARINTIA Kft. Wholesale of grain, tobacco, seeds and animal feeds 25. SáGa Foods Zrt. Production of meat and poultry meat products 26. Homlok Zrt. Railway construction 27. S-Group Közép-európai Zrt. Personal security activity 28. AKMÉ Kft. Retail sale of a variety of hardware, paints and glass and retail sale of wood 29. KÖNIG MASCHINEN Kft. Manufacture of machinery for food, beverage and tobacco processing 30. PNH Kft. Manufacture of machinery for mining, quarrying and construction 31. VASIVÍZ ZRt. Water collection, treatment and supply 32. Wewalka Kft. Manufacture of macaroni, noodles, couscous and similar farinaceous products 33. UBM Szeleste Zrt. Manufacture of prepared feeds for farm animals 34. Harmadik FORRÁS-COOP Kereskedelmi Kft. Grocery retail sale in specialised stores 35. Rábaparti Kft Retail sale of automotive fuel 36. MEDOSZ Kft. Wholesale of chemical products 37. HIRSCH POROZELL Kft. Manufacture of plastic packing goods 38. WIBEBA-Hungaria Faipari Kft. Sawmilling and planing of wood 39. VOG KFT. Non-specialised wholesale trade services 40. Fürge Diák Iskolaszövetkezet Market research and public opinion polling 41. BINDER Produktion Bt. Wholesale trade services of hardware, plumbing and heating equipment and supplies 42. EDILKAMIN International Kft. Manufacture of central heating radiators and boilers 43. Grana Kereskedőház Zrt. Wholesale of grain, tobacco, seeds and animal feeds 44. AUTÓFÓKUSZ Kft. Trade of passenger cars and light motor vehicles 45. DOMINO TRANS KFT. Road freight transport 46. BINDER Kft. Manufacture of metal structures and parts of structures 47. Szombathelyi Erdészeti Zrt. Forestry and other forestry management activities 48. DUNA COOP KFT Wholesale of dairy products, eggs and fat 49. STERF Hungary Kft. Wholesale of grain, tobacco, seeds and animal feeds 50. HB TRANSZ Kft. Production and preserving of poultry meat Net revenue from sales (thousands of HUF, 2019) Net revenue from sales (thousands of HUF, 2020) Net revenue from export sales (thousands of HUF, 2019) Net revenue from export sales (thousands of HUF, 2020) 240 571 491 274 714 814 228 092 213 257 904 187 261 351 513 184 913 530 248 808 813 184 913 530 85 615 086 111 923 949 83 051 279 109 046 035 80 015 620 96 107 221 73 060 531 88 767 374 58 992 990 84 337 258 6 991 022 8 475 138 63 063 290 70 562 344 56 262 174 61 869 962 33 935 880 49 357 741 19 662 927 29 392 442 40 355 776 44 569 963 40 355 776 44 569 963 26 850 034 33 241 951 18 168 292 22 326 768 34 105 652 32 750 867 32 016 852 29 665 125 23 522 577 31 866 599 0 0 26 258 839 28 757 410 630 900 358 399 24 009 989 25 588 762 23 547 882 25 316 064 17 078 714 19 849 823 16 382 898 18 949 992 15 169 433 17 788 034 15 146 252 17 756 414 13 294 416 16 789 399 7 926 677 5 198 431 17 088 284 16 659 163 16 707 468 16 159 396 15 576 783 14 874 009 15 575 017 14 864 912 32 997 493 14 252 929 755 792 678 978 11 532 406 12 324 282 11 007 879 11 703 778 11 653 131 12 003 349 10 498 487 10 901 216 8 992 926 11 713 548 197 413 108 015 10 924 778 11 529 240 0 0 9 321 719 11 314 899 4 021 068 5 475 504 10 194 679 10 808 579 36 115 11 434 7 531 871 9 982 328 0 0 7 421 428 9 005 573 0 0 6 932 592 8 903 168 32 095 52 868 7 324 586 8 000 748 6 370 974 6 798 204 5 546 249 7 943 307 5 518 125 7 413 958 7 794 406 7 490 598 0 15 734 4 989 337 7 350 111 4 524 868 7 145 332 10 535 146 7 243 476 596 113 527 367 6 601 027 7 202 872 0 0 5 444 501 7 029 382 0 0 5 359 774 6 990 317 2 987 2 630 5 832 345 6 629 115 799 935 1 227 215 4 889 682 6 060 930 4 761 337 5 715 076 6 185 960 6 044 510 972 753 865 888 4 195 923 5 985 255 0 0 2 697 323 5 674 456 5 262 132 4 420 606 5 588 272 4 229 316 5 334 163 5 551 540 3 606 451 5 275 453 5 473 633 675 601 630 073 4 360 436 5 389 851 1 631 719 1 618 034 2 774 925 5 326 724 12 570 8 780 4 506 028 4 998 527 947 283 1 326 368 4 796 437 4 753 224 0 0 4 494 352 4 732 350 4 755 865 4 669 086 0 The TOP 100 companies of County Vas

6 TOP100 51-100 TOP100 51-100 7 Company name Main Economic Activity 51. iSi Automotive Hungary Kft. Manufacture of other parts and accessories for motor vehicles 52. Concordia Szombathely Kft Retail sale of automotive fuel 53. LISS Zrt. Manufacture of light metal packaging 54. UNISZOV Kft. Retail sale of automotive fuel 55. Turkey Experts Kft. Raising of poultry 56. SZOVA Nonprofit Zrt. Buying and selling of own real estate 57. MIELL Quality Kft. Other service activities incidental to business activities n.e.c. 58. VASI ÁRCSI ÉPÍTŐ Kft. Construction of residential and non-residential buildings 59. FE-ZO KFT. Grocery retail sale in specialised stores 60. Savaria Autóház Kft. Trade of passenger cars and light motor vehicles 61. SÁGHEGY Kft. Manufacture of other food products n.e.c. 62. Sárvári Mg. Zrt. Raising of dairy cattle 63. TAR Csavar-Csapágy Kft. Retail sale of a variety of hardware, paints and glass and retail sale of wood 64. VASI ÁRCSI Kft. Construction of residential and non-residential buildings 65. JUB Kft. Wholesale of wood, construction materials and sanitary equipment 66. Clear '97 Kft. Restaurants and mobile food service activities 67. EDELHOLZ Kft. Sawmilling and planing of wood 68. VASI OPUS Kft. Construction of residential and non-residential buildings 69. PERINT Kft. Non-specialised wholesale of food, beverages and tobacco 70. Agro-Alfa Kft. Wholesale trade of motor vehicle parts and accessories 71. UNICUM KFT. Wholesale of mining, construction and civil engineering machinery 72. Szombathelyi COOP Zrt . Grocery retail sale in specialised stores 73. HÚS-ÁLLAT Import-Export Kft. Wholesale of live animals 74. LIGNOMAT Kft. Wholesale of machinery, equipment and supplies 75. PANDAN Kft. Manufacture of plastic packing goods 76. MEDIQ DIREKT Kft. Wholesale of pharmaceuticals and medical goods 77. NÉMOTRANS Kft. Road freight transport 78. VERSTEIJNEN LOGISTICS Kft. Road freight transport 79. WestRoll Kft. Wholesale of electronic and communication equipment and parts 80. PROFI-OIL Hungary Kft. Leasing of non-financial intangible assets 81. WORLD PROTEINS Kft. Wholesale of fruit and vegetables 82. Szombathelyi Távhőszolgáltató Kft. Steam and air conditioning supply 83. Koppány 2007 Kft. Road freight transport 84. Vitra Factory Kft. Manufacture of other office and shop furniture 85. Euroboard Kft. Manufacture of paper and paper products 86. Laguna Lakástextil Kft. Wholesale trade services of textiles 87. VILLKÁSZ Kft. Other building installation 88. UNIRIV KFT General mechanical engineering 89. BABATI ÉS TÁRSA KFT. Processing and preserving of meat 90. BEKO Engineering Kft. Engineering services and related technical consulting services 91. AGROW GP Kft. Wholesale of grain, tobacco, seeds and animal feeds 92. Szombathelyi Tangazdaság Zrt. Raising of dairy cattle 93. Mozdony és Vasúti Járműjavító Kft. Repair and maintenance of other transport equipment 94. SPG Sportcikk Kft. Retail sale of clothing in specialised stores 95. LORRY GM Kft. Other transportation support services 96. Smart Solar Kft. Electrical installation works 97. IGAZGYÖNGY '98 KFT. Wholesale on a fee or contract basis of other particular products 98. Krajcár Kft. Manufacture of plastic packing goods 99. JERICH Trans Kft. Road freight transport 100. Meliorációs és Rekultivációs Kft. Construction of roads and motorways Net revenue from sales (thousands of HUF, 2019) Net revenue from sales (thousands of HUF, 2020) Net revenue from export sales (thousands of HUF, 2019) Net revenue from export sales (thousands of HUF, 2020) 5 108 987 4 662 834 5 105 171 4 607 977 3 213 282 4 544 336 0 0 4 531 871 4 430 027 3 268 909 4 472 369 0 0 5 245 030 4 393 520 4 385 850 3 964 197 3 930 468 4 311 453 0 0 3 529 454 4 158 567 327 540 445 023 5 522 238 4 120 588 0 0 3 856 079 4 108 714 0 0 4 531 287 4 024 748 4 140 164 4 017 916 4 137 441 4 014 039 3 735 216 3 823 164 1 816 609 1 823 213 3 524 688 3 814 770 7 007 9 993 7 762 364 3 753 357 0 0 3 173 218 3 674 344 12 523 21 726 2 917 170 3 640 097 0 0 3 552 666 3 622 054 2 767 986 2 694 718 1 457 148 3 600 355 0 0 3 287 794 3 396 849 0 0 2 761 713 3 381 099 77 192 115 674 2 731 523 3 377 863 26 160 41 181 3 191 949 3 251 060 0 0 2 576 607 3 240 054 1 711 935 2 249 154 1 226 660 3 234 009 3 152 751 3 206 199 795 362 775 783 2 908 288 3 177 700 0 0 2 628 800 3 094 731 2 193 321 2 606 779 2 482 689 3 086 932 5 146 170 3 083 504 2 278 605 2 919 118 0 514 5 686 638 2 824 489 2 630 677 2 811 917 0 0 2 402 190 2 768 976 2 212 323 2 571 930 893 814 2 767 717 1 864 208 2 700 332 2 158 873 2 697 479 3 014 348 2 682 698 0 0 2 215 482 2 673 508 848 310 1 182 308 2 825 478 2 615 918 7 420 7 450 2 206 343 2 557 786 468 603 501 339 1 778 144 2 528 533 1 496 589 1 732 001 2 440 091 2 499 980 1 117 477 1 789 576 2 469 698 2 483 558 501 159 2 116 498 2 482 619 2 041 443 2 458 426 1 008 023 2 437 950 2 207 774 2 418 978 1 975 719 2 418 373 500 228 623 867 2 215 702 2 399 675 2 105 995 2 377 517 0 0 The TOP 100 companies of County Vas

8 SZOMBATHELY In terms of economic development, the Municipality of Szombathely City with County Rights considers it of utmost importance to support local employers to increase the efficiency of their activities and to make their future investment decisions on the one hand, and to provide an attractive value proposition for new businesses when making their decision on establishment on the other. The ten-year economic development programme called Szombathely2030 has been compiled with these aspects in mind. SZOMBATHELY’S RESPONSE TO THE COMPLEX ECONOMIC DEVELOPMENT CHALLENGES The industry of the city is characterized by the dominance of large automotive companies. Accordingly, its industrial structure is mainly labour intensive and therefore it is highly exposed to automation, digitalization, robotization and industry 4.0 processes – the currently ongoing industrial restructuring -, and to the impacts of the pandemic situation on the economy which have accelerated the process of industrial restructuring. On the one hand, it is extremely significant to the city to assess the real needs of local manufacturers with two-way communication and to assist their activities in the above-mentioned processes via ensuring high-quality research and development, innovation and educational background on the other. This will contribute to create long-term, quality, crisis resilient workplaces and to integrate knowledge intensive elements into labour intensive industry. However, in order to make the economy and industry of Szombathely more stable and knowledge intensive, diversification is crucial, i.e. the creation of a second leg which can also function as a breakout point. This stable leg is healthcare industry, on the one hand reacting on European Union and national development priorities, and building on the long history of thermal baths and sport rehabilitation as well as on the spa and health tourism of the region, the solid institutional system on the premises and the proximity to Austria, mainly Burgenland on the other. In order to enSZOMBATHELY 9 2030 courage the establishment of healthcare manufacturers, it is necessary to ensure an R&D&I and an educational background with a focus on healthcare industry, and the relevant elements of the programme have been compiled accordingly. THE TWO KEY AREAS OF THE SZOMBATHELY2030 PROGRAMME On the basis of the above reasons and the local features of Szombathely and its region, as well as the needs of local businesses, two key areas have been highlighted in the programme, the soonest realization of which can contribute to strengthening the economic structure of the city and building a crisis resilient knowledge economy to the largest extent, according to a wide range of shareholders. The clear aimof the defined focal points is the two-directional support and promotion of the successful industrial restructuring. One key area is strengthening and supporting industrial digitalization, primarily focusing on automation, robotization and artificial intelligence; through national and international start-ups, SMEs and large companies. Through this the transformation and industrial restructuring of automotive industry dominating the economy of the city and the region can be supported efficiently, but also the establishment of healthcare industry can be proactively stimulated. Within healthcare industry, the other focus is unique specialization based on the regional characteristics, complex rehabilitation with special emphasis on sports, stroke and musculoskeletal rehabilitation and combining academic and applied research with user needs. The objective is to create an environment for development, demonstration and testing which is unique even at an international level and connects households, social institutions (eg. nursing homes), thermal baths and a virtual hospital infrastructure. Towards a resilient knowledge economy Szom thely FLAGSHIP PROJECT OF THE SZOMBATHELY2030 PROGRAMME As flagship project of the programme a complex development has been designated which physically unites the most significant elements of the two key areas detailed above. This means the creation of a research and development, innovation and education centre (RDI centre) in one of the focal points of the North Industrial Area which has specifically advantageous characteristics. The idea of the RDI centre is to provide quality educational and research and development services for businesses already existing in Szombathely to increase the efficiency of their activities, to help them make future investment decisions and to provide an attractive value proposition for new businesses when making their decision on establishment. Not only shall the centre assist the work of large companies but it is also supposed to dynamize new local businesses, start-ups, helping them survive, enhancing their prosperity and serving as a solid base in the economic environment of the post-Covid era full of turbulent changes. Besides the city, universities, research institutes and organisations dedicated to utilize technological know-how will play an important role in the development of the RDI centre. All three partner universities who have signed the Szombathely2030 Cooperation Agreement intend to establish new academic units, skills development and testing laboratories in the centre, indicating that they wish to play an important role not only in education but also in research and development. Óbuda University intends to implement their developments and trainings in the area of manufacturing technology and artificial intelligence, the University of Pécs in healthcare and rehabilitation, while Eötvös Lóránd University in the area of trainings tailored to individual company needs and digital education methodologies. Accordingly, prioritised project elements of universities include the Robotics and AI Centre, the Regional Rehabilitation Education and Research Centre, the Digital Methodology Centre; new trainings (healthcare engineering, new rehabilitation trainings) as well as trainings providing foreign-Hungarian joint degrees. The Szombathely2030 team is in contact with Austrian and German research institutes who are also planning to establish their own offices and laboratories in the RDI Centre, and the Pannon Business Network Association will be represented by a Digital Innovation Centre with a completely digitalized teaching and research production line amongst others. This will enable the launch of individual research and development projects. Apart from training and research and development, another important element of the RDI Centre is the establishment of a healthcare industrial demonstration and testing environment which is unique at Central-European level connecting real nursing homes, households of the elderly and virtual hospitality infrastructure; mobilizing service providers of thermal tourism, creating medical testing laboratories and senior-friendly smart homes equipped with sensors and launching a digital health clone programme. Regarding the infrastructure, the RDI Centre will cover an area of about 25.000 m2 in the first round with further expandable units in a modular system. A possible second module might be built for a large healthcare company while a third module would serve as an incubator for the SME sector with special focus on enterprises working in any area of complex rehabilitation. The RDI Centre intends to develop a dynamic and prosperous business environment in a period of economic downturn caused by COVID and beyond which greatly increases knowledge concentration in the space, enhances the economic stability and industrial diversification of the city, themobilization and development of enterprises which might have crippled during the crisis, as well as the support to the shareholders of the SME sector with the help of venture capital, and with international export opportunities as well.

Bringing high-level technological knowledge to the operational business level and transform it into growing profitability is the ultimate goal of Pannon Business Network (later referred to as PBN). Guiding from data science to predictive maintenance, from neural networks to camera-based quality control, from shape memory polymers to 4Dprinting are concrete examples the staff of PBN is working on with companies together. PBN was established in 2006, to support added value growth of manufacturing companies. The first decade was characterized by innovation management, product launch assistance internationally, running an office in Beijing. In 2016 the focus was reorganized to digitalization – industry4.0 in manufacturing. It was the year when PBN prepared national policy paper for the government bodies and organized international conference to knowhow exchange about digitalization. It was the start of the new era. PBN founded its digital innovation hub in 2017, which is called advanced manufacturing laboratory, am-LAB. It is an organic continuation of the added value growth approach, with translating digital technologies to profit growth. There are four technological domains, at which the hub is active – robotics, extended reality, 3Dtechnologies and data science. Within robotics there are four categories – collaborative, industrial, mobile and aerial. am-LAB is focusing dominantly on collaborative and mobile, however with references and experience in each of them. In the service portfolio there are such innovative elements like integrating the different branded units, direct programming in multiple languages. References include support of open Pannon Business Network source application of robot gripper – welding - assembly interface, robot – 3Dscanner integration or mobile robot and collaborative robot fit. Extended reality is a commonly demanded service, which ranges from prototype visualization through mixed reality to augmented reality solutions. CGI animation software solutions enable novel applications, just like hololens with unity, or combined with traditional design software. Reference applications are broad, from mixed reality commercial spot through real-time data visualization to animated augmented reality product layout. In the field of 3Dtechnologies, 3Dprinters represent the basics. SLA and filament printers are available, from traditional smaller building plates to extreme builder size. 3Dscanning is essential for reverse engineering projects, a mobile solution is at disposal. Data science is one of the essences of am-LAB service portfolio. The majority of the team – 14 people – were trained for data science – coding, algorithms, etc. – to have a broad understanding of this decisive area. In terms of specialization segmentation and classification are the two most important fields, within them the small, heterogenous, abnormal datasets and their relevance to AI algorithms. In order to move to more holistic, interconnected approach, PBN purchased a demonstration or teaching and learning factory unit. It is a multiple cell line, including order taking, process management, quality control, warehousing, labeling components. The goal is to simulate potential error handling, one-batch size production solution for manufacturing companies. Currently, individual digitalization elements – like collaborative and mobile Digitalization for All - technology transfer in action robot – is realized, visualization frommarkers in AR from sensor data achieved, and digital twinning is being implemented. To support specialization for industries, facilitating growth of new sectors and in order to exploit existing features of the local ecosystem, PBN started to focus on senior home care, and especially on rehabilitation. PBN actively contributed to the vision and strategy setting of the city and that of the county, also catalyzing international expert pool involvement into the regional planning procedure. As a result of internal growth and external relevance, a so called smart senior home was established and developed in 2021. Based on research with the social care provider organization owned by the municipality, a decade-long focus on innovation generation in the health and care sectors, PBN established its unit, dealing with advanced technologies in home care, called at.home. The approach is based on three principles or needs that characterize the senior home care – socializing, safety and health monitoring. Over 50 digital solutions are included and thematically organized to provide a test and development infrastructure for the care development industry. PBN has over 450 European Union partners, with whom joint projects were implemented since 2006. More than 75 Horizon and Interreg projects represent the pool of actions, dealing with applied research and partnership building. Strategic partners are Fraunhofer, ECHAlliance, meanwhile PBN is also the national representative and partner of EIT Manufacturing in Hungary. EDUCATION 11 The number of students at the Faculty of Health Sciences of the University of Pécs, in the Szombathely Campus has been steadily increasing in recent years, and now exceeds 370. With the expansion of the educational programs, and the increase in the number of students, we place great emphasis on the development of quality education and its conditions. In Szombathely, in addition to the new Bachelor’s degree programs in Dietetics and Physiotherapy, which started in 2021, the Bachelor’s degree program in Medical Diagnostics Analytics and the Master’s degree programs in sports management were launched in 2022. Over the next 5 years, our student numbers are projected to grow by 200 students, thanks to the recent launches of new programs and new specializations planned in the near future. Our development vision is to improve the condition of the building, renovate and modernise the demonstration classrooms for the education of midwives, paramedics, physiotherapists, nurses and health visitors, to create the infrastructural foundations for the Complex Rehabilitation Centre, and, in addition to the expansion of the building, to improve the equipment essential for modern education in the coming years. With the construction of a new part of the building, we are planning to create physiotherapy, ergotherapy and hydrotherapy departments in the (almost 180 m²) part of the complex that also functions as a Complex RehaUniversity of Pécs Faculty of Health Sciences Szombathely Campus at the forefront of regional health professional education bilitation Centre (ground floor). In these demonstration classrooms, outpatient physiotherapy care for the general public, sports physiotherapy care, practical education of students, and other continuing education activities could be carried out in a complex manner. A complex vision would be helped by the inclusion of the prevention, treatment and rehabilitation segments, contributing to the assessment, improvement and treatment of the health and musculoskeletal condition of the population of the region, as well as to the long-term follow-up of people affected by Covid infection. We also plan to build 4 additional 40 m2 classrooms for our students. The new classrooms will provide a teaching environment for nursing and patient care (nurse, paramedic, midwife, physiotherapist, dietician), health care and prevention (health visitor), infant and child educator, as well as social and sports sectors. They also provide opportunities for the organisation of conferences, professional trainings, skills development trainings, professional competitions, professional days, professional presentations, and health promotion programmes and leisure activities for lay people. We are proud to be able to offer the Faculty’s highly developed simulation centre and sports laboratory facilities to students of any of our Campuses, and to provide a background for their research by doing so. Education and profession in a picturesque setting 10 INNOVATION

EDUCATION 13 In February 2017, the integration of Eötvös Loránd University and Savaria University Centre was completed. In the Savaria University Centre, four structural units of ELTE offer courses: Berzsenyi Dániel Teacher Training Centre: Full spectrum of teacher training courses from the elementary-school teacher to the master’s degree. The Faculty of Informatics: Dual training in mechanical engineering and computer programming: from vocational training to the diploma. Faculty of Education and Psychology: Courses in sports science and the highly popular humanities courses: psychology, community development. Faculty of Social Sciences: A wide range of courses in economics: from higher education vocational training through dual training to graduate economics courses. The Savaria University Centre is a bastion of applied knowledge at ELTE, where the results of ELTE’s market-leading basic research are translated for the first time into competitive practice-oriented training courses relevant to society and industry. A strong emphasis is placed on talent management and on producing teachers who can respond to the challenges of education in the 21st century. Valuable ELTE diploma - now also available in Szombathely! Savaria University Centre Contact us! Website: https://sek.elte.hu https://www.felvi.hu E-mail: felveteli@sek.elte.hu Facebook: www.facebook.com/elte.sek Instagram: #eltesavaria The Kőszeg Campus of the University of Pannonia started its operation on 1 January 2016. The founding partners of the Campus are the ISES (Institute for Social and European Studies) Foundation, the Institute of Advanced Studies and the Municipality of Kőszeg. The Campus was officially inaugurated on 9 March 2016, and education started in September 2016 with a Master’s degree in International Studies in English and a Master’s degree in Cultural Heritage Management and Sustainable Development in English. The development of higher education in Kőszeg is an integral part of the Creative City Sustainable Countryside (KRAFT) model programme. Thanks to the programme, Kőszeg’s historic city centre buildings are being renovated for research and education purposes. Currently, the former MÁV children’s home is being renovated and will be a worthy home for quality education and research when completed. University of Pannonia Kőszeg Campus Beyond lexical knowledge, a successful adaptation to a future job market is only guaranteed by a continuous development of skills. Successful adaptation to a future job market will depend on developing competences beyond lexical knowledge. Collaboration and adaptability, a high level of IT skills as well as language skills are all necessary for successful career planning. The ELTE Szombathely unit, the Savaria University Centre, places great emphasis on the development of these competences. Dual courses are essential, based on very close and continuously expanding cooperation with partner companies that are key players in the regional economy. Our professional structure is constantly expanding and changing in response to market needs, particularly in the majors of engineering and economics. Our teacher training is in a leading position on country-level as well. A few years ago, ELTE launched a psychology major in Szombathely, which has been attracting students with unbroken momentum ever since. Szombathely offers modern education, an inspiring environment, a wide range of international contacts, modernized dormitories and high amounts of monthly scholarships. We are diverse, but we become diverse through our students. Currently, the campus offers courses in International Studies in English, undergraduate and master’s degrees. The key strengths of our courses are internationally renowned lecturers, personalised mentoring, an excellent teacher/student ratio, small group, innovative knowledge transfer, and an inspiring, interdisciplinary, multicultural environment. Students can get involved in research at the University of Pannonia and the Institute of Advanced Studies, deepening their knowledge and broadening their horizons. Research is also open to graduates, who can carry out their PhD research in the University’s Doctoral Schools under joint supervision with a research site in Kőszeg. High-quality research is supported by the Institute’s modern, constantly updated library, where researchers from all disciplines can find the literature that supports their work, in the spirit of interdisciplinarity. The staff of the Campus and the University are renowned, qualified teachers and researchers who are involved in numerous national and international research and development projects, in collaboration with industry and governmental actors. We welcome your enquiries about studies, research and collaboration at info@pek.uni-pannon.hu. 12 KŐSZEG Kőszeg is a unique historical town that abounds in nationwide acclaimed cultural and built heritage as well as appealing natural features. The recent infrastructural developments offset the isolation – based on its border town attribute – of Kőszeg: building expressway 86 and 87 and connecting the town with S31 expressway in Austria both provide a direct connection to Western European road network. Moreover, an international hub for rail and regional public transport is under implementation. By state support, Kőszeg is constantly renovating its internal road network, listed buildings and institutional system. Based on the plentiful natural and cultural heritage, the gradually expanding network of cycling and hiking routes, Kőszeg provides a variety of recreation and recharge spot for visitors eager for an active holiday combined with culture and history. The work culture of local people is more advanced compared to those living in other regions of the country. The economy of the region and the town is determined by the proximity of Austria and the presence of Western companies. In recent past the level of domestic income has increased, thus commuters and those employed in jobs requiring lower qualifications compared to their original education standard tend to be interested more in domestic job opportunities. These employees can be mobilized with adequate opportunities and the effect of their return is noticeable in both employee and entrepreneurial positions. The leaders and community of the town appreciate professionals and entrepreneurs who seize the opportunities. The well-qualified, multilingual local workforce, school-town traditions, natural, built and cultural ambience, the flourishing tourism and continuous infrastructural development projects offer appropriate conditions for establishing industrial, IT and creative organizations and businesses. Additionally, Kőszeg is suitable for high-quality accommodation facilities, complex tourism packages or healthcare and social services. There are two industrial parks located in Kőszeg, one implemented from a development of the municipality and the other from a private investment, both of which capable of further economic and service establishments. Kőszeg is an investment site with significant growth potential next to the Austrian border of Hungary. There are several properties in our town ready to be utilized, also unexploited areas suitable for greenfield investment. Get to know the investor offer and possibilities of Kőszeg: Kőszeg

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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