GE vows to maximize local suppliers for Paks project


General Electric (GE) plans to boost the value of purchases from some 1,300 certified suppliers in Hungary from the current USD 900 million a year, GE Europe President-CEO Peter Stracar said Tuesday at a forum for suppliers initiated by the company in Budapest, as reported by online business news site

GE Europe President-CEO Peter Stracar

The forum, attended by more than 150 company directors, owners and purchasing managers, was organized by the Ministry of Foreign Affairs and Trade, the Ministry for National Economy, the Hungarian Chamber of Commerce and Industry (MKIK), the Hungarian Investment Promotion Agency (HIPA), and the state secretariat responsible for the Paks Nuclear Power Plant expansion project.

At the event, leaders of local SMEs learned directly from GEʼs existing suppliers about the administrative, quality control, IT and delivery expectations they must meet to become suppliers of a major global company, and were also informed about international and local projects in which they might potentially participate.

Regarding international projects, Endre Ascsillán, vice president of GE Hungary, highlighted the expansion at Paks, for which GE is supplying Russiaʼs Rosatom - the general contractor of the new reactors of the Paks plant - with steam turbines, turbo generators and other auxiliary equipment. GE is counting on the greatest possible participation of local suppliers in implementation of the project, he added, while noting that additional opportunities may also arise for Hungarian suppliers in nuclear projects elsewhere.

Stracar noted that GE buys directly from more than 30,000 suppliers of goods and services worldwide, with the value of its procurements reaching some USD 70 billion annually, of which Europe accounts for around USD 9 bln. He added that an increase is envisaged in Hungaryʼs USD 900 mln annual share of the total value of some USD 1.7 bln in procurements in the Central and East European region.

Stracar said that within the region, GEʼs network of suppliers is strongest in Poland and Hungary, and highlighted the importance of a strong SME sector in the growth of both companies and national economies.

Levente Magyar, state secretary for economic diplomacy at the Ministry of Foreign Affairs and Trade, noted that GE has been active in Hungary for almost 30 years. Hungary hosts one of GEʼs production bases in Europe, which demonstrates the appreciation of the Central and Eastern European region, he added.

Magyar credited GE and similar major companies with playing a vital role in ensuring that the V4 region (Hungary, Poland, the Czech Republic and Slovakia) catches up more rapidly with Western Europe.


The New Age of Commerce is Approaching Analysis

The New Age of Commerce is Approaching

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

Blue Chip Art and Passion Assets - Claudia Worthington Hess ... Podcasts

Blue Chip Art and Passion Assets - Claudia Worthington Hess ...

Magyar Posta to Close 35 Post Offices in Capital City

Magyar Posta to Close 35 Post Offices in Capital


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.