Efficiency, Productivity and Increased Competitiveness

Givaudan, a global leader in flavors and fragrances, has significantly increased the production capacity at its Makó manufacturing site in southeast Hungary following HUF billions in investments. With the successful transfer of specialized technology from its Swiss facility, the Makó plant has emerged as a regional hub for special reaction-based technologies.

“Our company growth strategy includes a strong commitment to innovation, operational excellence and expanding our local presence. The establishment of the Makó factory as a greenfield investment in December 2012 marked a pivotal moment in our journey, creating a robust manufacturing facility designed to meet the evolving demands of our diverse customer base for the next 20-25 years,” Mihály Karkas, Head of Operations and Company Manager at the Makó plant, explains.

He adds that over the years, the Makó facility has consistently demonstrated its commitment to high-quality production, exceptional customer service and competitive pricing. This dedication has facilitated ongoing capacity expansion investments over the past eight years, including the recent introduction of innovative vacuum drying technology, positioning the Makó plant as a center of excellence in powder technology manufacturing.

Growing production capabilities
Of the company’s more than 70 production units globally, Givaudan's Makó facility has evolved into the largest and most complex site within the Taste & Wellbeing division. “Our continuous growth has established the Makó factory as the center of powder mixture production in Europe,” Karkas notes. “As a result, our production volumes and workforce are steadily increasing, enabling us to serve our customers across Europe and beyond with enhanced efficiency.”

In the heart of Europe
Givaudan’s commitment to local and regional customer engagement is exemplified by the strategic location of the Makó plant in Central Europe. “Hungary’s central position allows us to efficiently reach markets from London to Moscow and from Stockholm to Istanbul,” Karkas emphasizes. “Being an EU member further streamlines our logistics, ensuring timely delivery to our customers, near and far.”

Expanding local supplier base
The Makó plant prioritizes collaboration with local suppliers to enhance its supply chain. The Company Manager underscores the importance of aligning supplier performance with customer expectations. “We invest in developing local suppliers who can meet our rigorous standards in terms of quantity, quality, and service,” he states. “Our sourcing strategy focuses on bulk components, such as sugar and dried vegetables, often supplied by smaller producers and distributors.”

Broad product portfolio
The Makó facility continues to expand its product offerings, demonstrating resilience even during challenging times like the COVID-19 pandemic and geopolitical tensions. “Our diverse product portfolio and large network of delivery destinations allow us to adapt swiftly to market changes,” he remarks.“ Despite the challenges, we achieved double-digit growth in 2021 and 2022. While sales in the affected regions declined due to the Russian-Ukrainian conflict, we saw significant growth in Northern and Western Europe, allowing us to maintain overall growth in 2023 and 2024.”

Commitment to workforce well-being
Givaudan recognizes that employee well-being is crucial for recruitment and retention. “Creating a positive work environment is essential for fostering employee satisfaction and commitment,” Karkas explains. “Our experience shows that when employees feel good at work, they feel good about the company and are happy to come to work. Our social responsibility initiatives, which include activities such as dental screenings for students and supporting local organizations and schools, play a vital role in our well-being programs. By creating a healthy working environment, we have cultivated a strong sense of loyalty among our team members, contributing to a positive retention rate over the past ten years."

Making strides through Lean transformation
The Makó plant has excelled in continuous improvement, achieving significant milestones in loss reduction, capacity enhancement, quality improvement, safety risk mitigation and cost competitiveness. “What began as a Lean transformation has evolved into a continuous improvement journey,” the Company Manager states. “Our daily commitment to improvement has led us to achieve the gold level in our Continuous Improvement and Maturity Assessment (CIMA), a Givaudan framework for evaluating Lean implementation. We are the sixth Givaudan unit to reach this prestigious milestone. This accomplishment reflects our dedication to efficiency, productivity, and competitiveness, placing us among an elite few in our industry.”

Givaudan’s Makó plant is not only a testament to the company’s strategic vision but also a model of resilience and excellence in manufacturing, poised for continued growth and success.