Mr Laux said he was satisfied with the management at both plants, noting that they had done everything possible to keep capacity in Hungary. "The outside observer does not see the battle some units must carry on to convince the parent company that it is worthwhile to keep capacity where it is," he said.

    The plant in Szekesfehervar not only makes entertainment electronics, but electric shavers and vacuum cleaners, and later it could start making other household appliances, Mr Laux said. The picture is a bit different for the plant in Tamasi, which makes mainly office lighting and public lighting for interiors, he said. Philips makes the same products at plants in Poland and Romania, which are much bigger markets and where the construction sector was not hit as hard by the crisis as in Hungary, he explained.