Tápiószele, 8 September 2020 – Production is resumed at the Ganz factory in Tápiószele. The plant, which has a long history of manufacturing industrial transformers, high-performance motors and hydrogen generators, employs hundreds of people in the Nagykáta and Cegléd areas. The plant is operated by a new investor as a tenant, Ganz Transformers and Electric Rotating machines Ltd. , after the previous owner was unable to finance the production.
After a temporary shutdown for several months, the machines have been restarted in early September 2020 and workers reappeared at the Ganz plant in Tápiószele. Production was able to relaunch with the appearance of the new investor, Ganz Transformers and Electric Rotating machines Ltd. , which undertook to operate the plant as a tenant in the next period, providing the financing needed for the production of heavy machinery.
The restart was preceded by successful negotiations with the largest Hungarian and international customers and suppliers of the factory. The openness of the business partners represents that the demand for the unique, high-quality products of the plant is high in both Hungary and abroad.
The factory deals with high-voltage industrial transformers, high-power motors, hydrogen generators, the servicing of these products, and general contractor activities related to electrical substations. The plant is one of the most significant employers in the Nagykáta and Cegléd area; due to the relaunch, a large number of workplaces have been preserved in the region.
How the factory got into a difficult situation
The successor to Ganz Villamos Művek was acquired in 2006 by the India-based Crompton Greaves Group. The foreign professional investor has acquired companies with similar profiles in a number of other countries, such as Belgium and Ireland, but their integration failed. Although the plant in Tápiószele was modernized, the sales channels needed for further growth could not be built.
These problems were exacerbated by the economic effects of the coronavirus epidemic, and as a result the Hungarian company, CG Electric Systems Hungary Ltd., was only able to pay a part of the wages in May, June and July for the employees. A fraud case also came to light at the Indian parent company, after which it was impossible to finance the domestic company and conclusively, production had to be halted.
Liquidation proceedings were also launched in connection with the Hungarian company in July this year, namely with the involvement of a state liquidation organization, after a government decree declared the company a strategically important business organization. Subsequently, outstanding wages were paid from the National Employment Fund, and the liquidator, who temporarily exercised ownership rights, decided to lease the factory.
Production continues with Hungarian control
With the appearance of the new, Hungarian-owned investor, and with the start of the lease construction on September 1, one of the largest and historic Hungarian industrial plants will continue to operate under domestic management. The primary goal for this year is to stabilize the production, by providing adequate project financing and restoring customer and supplier relationships.
In the medium term, the goal is to set the company on a growth path while also bringing back the world-famous Ganz brand.