Hungary’s Tungsram needs gov’t bailoutReading Time: < 1 minute
The chairman-CEO of one of Hungary’s oldest and best known companies, historic light bulb maker Tungsram, appealed to the government for assistance on Tuesday.
Russia’s invasion of Ukraine, the pandemic and difficulties with the global supply chain are endangering the future of the Tungsram group, Jörg Bauer told Index.
Tungsram needs to either receive orders through state energy efficiency programmes, or a direct government financial capital injection, Bauer said, adding that immediate government assistance would enable the further operation and successful transformation of the historic Hungarian brand that creates innovative value and contributes to a knowledge-based society.
Tungsram, registered in 1909, pivoted to other lamp-based products after it split from US company General Electric (GE), the largest American investor in Hungary, in 2018. It currently operates five plants in Hungary. However, Tungsram posted losses for 2020 and 2021, and the company is planning a partial shutdown of its operations this month, to sell off existing inventory, after a disappointing first quarter.
Any shift to more innovation-based activities is impossible when the company is struggling for its existence, Bauer said. “Immediate government assistance would enable the further operation and successful transformation of a historical Hungarian brand that contributes to a knowledge-based society and creates innovative value,” he argued.