Perfecting the Art of electronic Alpine Electronics

perfecTing THe ArT of elecTronic

Alpine Electronics Ltd in Hungary was established in 1998 and since then it has remained their only production site in Europe. Due to the company’s latest technologies and their commitment to high quality, the Biatorbágy factory today is a key player in the firm’s global operations. Edina Beale reports.

In Hungary there are at present 149 Japanese companies in operation, 46 of which are manufacturers. In recent decades, Japanese companies have invested over 4.5 billion USD in Hungary and they employ more than 25,000 people. The Japanese Alpine group formed Alpine Electronics Ltd in 1998 and began construction of a state-of-the-art manufacturing plant in Biatorbágy with a capital investment of 23 million EUR. The plant was to become the European base for the production of Alpine ‘mobile media solutions.’

The Alpine group has a worldwide reputation for quality mobile solutions. The company’s products range from audio solutions to integrated systems that bring together mobile communications, video, audio and navigation. Alpine have a presence in Japan, North and South America and Asia. The group’s European headquarters are based in Munich, with sales and development centres in Stuttgart and the UK. Steady development

Alpine Electronics Ltd began production of quality auto audio systems for the European in October 1999. In 2000, the first full year of production, the product range consisted of two CD Changer modules produced for the aftersales market. The company moved swiftly to meet the criteria for the ISO/TS 16949, the harmonised standard for the automotive supply chain, successfully meeting the certification audit in 2001. Following this award, the company switched its operations to OEM production. In 2002 the company achieved the ISO 14001 environmental certificate and marked another milestone by producing one million units per year in production volume.

Continuous investments

In 2004 the factory increased its plastic moulding and painting capacity and enlarged its production facility to 14,000 m2. This increased capacity enabled the internal production of key cosmetic

parts and resulted in the production of 1.5 million units being produced annually.

The success of their integrated production system and the commitment to quality has enabled the company to be listed among the top 30 exportation companies in 2005.

The economic recession in 2008 and the terrible Fukushima earthquake in 2011 caused serious damages for the parent company in within a few years the factory managed to overcome the difficulties and brought production back up to previous levels, enabling the firm to make new investments.

In 2017 Alpine invested 39 million USD in the Biatorbágy factory. As a result of this new development, the production capacity has doubled and the number of employees has grown to nearly 1,200. The company has not only implemented a new production line but also introduced new technology in the Hungarian factory and increased the use of domestic suppliers.

Direct impact on R&D

When Alpine Electronics Ltd had become an OEM it began producing components for the prestige car manufacturers of Europe including BMW, Chrysler, Daimler and PAG. The range of products increased and in addition to the car audio systems, the company also began to manufacture dashboard information displays. The CD head units, however, continued to be the main contribution to sales. The company trades primarily in Europe, however its products are used worldwide.

In order to meet the demands of their partners, Alpine have a wellestablished research and development centre based in Stuttgart, Germany. The R&D centre explores five main areas: Human interface tech-

nology, evaluation technology, acoustic technology, digital mechatronics technology and system integration technology. Collectively these areas of research are known as HEADS.

With the site in Hungary being Alpine Electronic’s sole European manufacturing company, any new products or developments of existing products have a direct impact on business. The ability of the company to adapt to and meet the new challenges and demands of their partners is essential to the continued success of the plant.

Secure future

In January 2019 Alpine Electronics, Inc became a wholly owned subsidiary of Alps Electric Co., Ltd. The total value of this transaction was approximately 538.5 million USD. Alps Alpine is now a leading global manufacturer of high-quality electronic components for mobile devices, home electronics, vehicles and industrial equipment. With the philosophy of ‘Perfecting the Art of Electronics’, Alps Alpine supplies over 40,000 different components to about 2,000 companies all over the world.

The Hungarian government now has many Japanese strategic partners and as a result, Hungary has become the target destination for companies in the Far East and Asia. Japanese investors mainly look for opportunities in the car manufacturing sector. After Germany, Japan is the second largest investor in this sector, and therefore has a big role in the increased development of this sector. With the support of the Hungarian government and due to this recent merger, Alpine Electronics in Hungary will have an even stronger backup which will enable the firm to face future challenges head on. n