Denso Starts Inverter Production in Székesfehérvár

The Japanese company Denso has launched the production of inverters in Székesfehérvár, southwest of Budapest, where the EUR 30 million (HUF 11.5 billion) investment will be used to manufacture one of the most important units for electric cars.

Jiro Ebihara, former president of Denso Manufacturing Hungary Ltd., said in a video message during the press launch that Székesfehérvár will be the European base for electrification after the production of diesel engine components, and will therefore continue to play a very important role in Denso's European activities.

Also in a video message, Takeuchi Katsuhiko, head of Denso's electrification business, said that many European manufacturers are developing inverters for electric vehicles, so they face strong competition in the market.

Denso's European President, Yasushi Mukai pointed out that after the Székesfehérvár factory was founded, the number of employees had grown from 200 to 4,500, the number of customers from one to 34 and the number of suppliers from 23 to 87. They hope to soon expand their inverter customer base from one to 34 in the European market.

Yasushi Mukai recalled that they chose Hungary as the location for their European factory in 1994, for two reasons: the full support of the city and the government, and the availability of human resources. More than 30 years have passed since then, and with the continuous support of the Hungarian government, they have continued to develop, with the most diverse technologies and skills globally.

Attila Szincsák, technical vice president of Denso Hungary, said that the production of the 5th generation Toyota inverter seemed a long way off during the coronavirus epidemic, but now a new era is beginning. Mass production of the inverter will officially start on Monday, he added.

According to a press release distributed on the spot, Denso will produce inverters for electric and hybrid vehicles on the newly installed production line. The inverter is the 'heart' of electric cars, converting the battery's direct current into alternating current and changing the frequency of the current to ensure the engine runs properly.

Denso Manufacturing Hungary Ltd. has been present in Székesfehérvár since 1997 and is one of the group's largest manufacturing bases in Europe.

According to publicly available company data, Denso posted a net profit of EUR 13.5 million (HUF 5.1 billion) on net sales of EUR 681 million (HUF 259 billion) in its latest financial year ended March.