In recent years, Vajda-Papír Group has strengthened its position in the Nordic market. Its Norwegian factory, Vajda-Papír Scandinavia AS, the only Hungarian-owned daily consumer goods producer and exporter in Norway, celebrates its 10th anniversary this year. To mark the anniversary, Minister of Foreign Affairs and Trade Péter Szijjártó visited the Norwegian factory. In order to further exploit the good potential of the Nordic market and to strengthen the company's regional presence and export activities, Vajda-Papír is considering further investments, developments and market expansion.

The Vajda-Papír Group started paper production and converting in June 2013 at the Drammen mill near Oslo, which has a history of more than 100 years, employing 120 people and producing the full range of tissue paper products. Annual production now tops 30,000 tonnes and turnover almost doubled last year to HUF 20 billion, with the Norwegian mill accounting for a quarter of the group's turnover.

"The results of the past 10 years prove that we made the right decision in establishing the Norwegian subsidiary, as Vajda-Papír Scandinavia accounted for a quarter of the group's turnover last year. Exports and local sales in Scandinavia are growing nicely, and we are planning further investments and expansion in the near future," said the founder-owner on the 10th anniversary of the founding of the Norwegian company, during a visit by the Minister of Foreign Affairs and Trade.

Attila Vajda, the founding managing director of Vajda-Papír, said that the market outlook is significantly improved by the fact that the solvent demand in this region is stronger than the European average, so higher shelf prices can be achieved, and therefore higher supplier prices can be enforced despite higher transport costs. As a result, exports to Scandinavia are growing at a higher rate than total company turnover year on year, with 63% of Hungary's total exports (HUF 12.5 billion) going to the region last year, he said. He said that exports to Scandinavia jumped from 21% of Vajda-Papír Ltd's turnover in 2019 to 29% in 1 year, and since then, the company's sales have been growing year on year at a higher rate than its sales, increasing its share. The region thus accounted for 63% of total exports in 2022.

In addition to the market potential, competition is fierce, but Vajda-Papír has built up a strong position, according to the managing director, mainly due to the use of the latest technology in their factories, which also ensures energy-efficient operation. The war in Ukraine and the energy crisis hurt profitability last year, as it is a highly energy-intensive industry, but Attila Vajda expects an improving trend this year. Despite the difficult conditions, the managing director said it was a significant achievement that the company had maintained its workforce and created 50 new jobs with the handover of the second phase of the Dunaföldvár plant, while ensuring full self-sufficiency in the production of raw materials. "This has also further strengthened Hungary's self-sufficiency in tissue paper products, as the in-house production of the raw material strengthens the security of production, and Vajda-Papír's annual production of 140,000 tonnes is far capable of meeting the country's total annual demand of 90,000 tonnes, if needed," he said. Attila Vajda added that the results achieved were largely supported by the company's position on foreign markets, so the focus this year is on further increasing exports and expanding export markets. "The results achieved so far prove that we are on the right track when we opted for high quality technology, environmentally conscious production and continuous education of our employees, thus not only increasing the added value of the paper industry, but also contributing to the strengthening of the whole national economy," he said.

Attila Vajda reported that exports in the Northern European region and Scandinavia are growing year by year and local turnover is also increasing. The CEO pointed out that Sweden stands out among the countries of the region, with exports to this country growing most dynamically, more than sixfold (641%) in 3 years, making it the most significant country for Vajda-Papír's exports to the outside market, with export turnover exceeding HUF 6 billion in 2022, almost three times that of Denmark, the next in order. We sold more than 16 million packages of paper products to our partners in the region - Norway, Denmark, Finland, Iceland and Sweden - in 2022.

Swedish export revenues this year could exceed HUF 8 billion. Total export revenue to the Nordic destination amounted to HUF 12.5 billion last year and is expected to exceed HUF 16.5 billion this year in the Northern European region, which includes Finland and Iceland in addition to the Nordic countries.

The Managing Director of Vajda-Papír said that last year the group shipped more than 13,000 tonnes of paper products to the Northern European region, more than 1,000 tonnes per month, so it can be said that 10 trucks of Vajda-Papír products were shipped to the region every working day. This year's deliveries are expected to reach 14.5 thousand tonnes. In the Nordic region, the company supplies 97% of its products to the general public - 62% toilet paper and 31% paper towels, so both the tissue and napkin categories have great potential - but there is also great potential for further growth in the retail sector.

Attila Vajda emphasized that the Scandinavia - Hungary production axis gives the Vajda-Papír Group the opportunity to supply its partners from Northern Europe, through Western Europe, the Balkans and Southern Europe with the best quality-price ratio and the lowest environmental impact of finished hygiene products.

THE VAJDA-PAPÍR GROUP

Vajda-Papír was established 24 years ago as a family business, employing around 650 people across the group. In addition to sales in Hungary and Norway, the company's tissue paper products are shipped to more than 30 countries worldwide, and more than 50% of the Group's total tissue paper production is sold in export markets. Last year, Vajda-Papír doubled its turnover at both its Hungarian and Norwegian mills, with a total turnover of more than HUF 80 billion. The group's annual production is expected to exceed 150 thousand tonnes in 2023.

Source: KKM Press