Caadex Ltd. Investment with EU Funding in Hungary

Hungarian family-owned Caadex Ltd. in Mindszentgodisa, S Hungary, has decided to invest more than HUF 500 million in energy and equipment, the company informed the state news agency MTI.

According to the statement of the Baranya County company, which is engaged in the production and trade of tin and steel products, the HUF 357 million conditionally non-refundable EU funding won in the tender of the Economic Development and Innovation Operational Program Plus (Ginop Plus) will be supplemented with HUF 153 million of own resources.

This will be used to install an air-to-water heat pump system in the recently inaugurated plant in nearby Komló and to install a new laser cutting machine to increase their laser cutting capacity, which will boost their competitiveness in the plant in Mindszentgodisa.

Managing Director Gábor Szanyi told MTI that the expected five-to-six-fold increase in electricity prices from January 1 will pose significant challenges for the company, which employs 125 people. The Komló project, which is expected to be completed by March, is expected to significantly increase energy efficiency, he added.

In July, the company inaugurated its new plant in Komló, which was built with the help of HUF 500 million from Ginop funds and its own resources.

Caadex's turnover in 2021 increased to HUF 2.189 billion from HUF 1.124 billion in the previous year, with more than 80% of sales coming from exports to the EU. Profit after tax rose from HUF 222.58 million to HUF 489.89 million in the same period.

The decline in export markets is expected to lead to a 10% drop in sales by 2022 and 30% by 2023, but the company is trying to cushion the negative impact by attracting new partners, he added.