Hungary’s rolling stock manufacturing sector is facing a severe crisis after a court ordered the liquidation of Ganz-Mavag International (GMVI) and Dunakeszi Járműjavító, two companies considered strategically important to the national rail industry. Experts warn that only state intervention could prevent the collapse of the sector.
According to data from the Opten company register, the Budapest Metropolitan Court ruled on Thursday to begin liquidation proceedings against both GMVI and the Dunakeszi Rolling Stock Manufacturing, Repair and Maintenance Works. The two firms have struggled with serious financial difficulties in recent years, Szabad Európa reported.
GMVI serves as the parent company of the entire group, which includes the Dunakeszi factory. In 2020, Hungary’s current Defence Minister Kristóf Szalay-Bobrovniczky was briefly among its owners. That same year, the company secured a HUF 32 billion contract from MÁV for the production of new rolling stock.
The Dunakeszi facility employs 673 people and plays a strategic role in Hungary’s rail manufacturing capacity. It has previously produced the intermediate cars of Stadler’s KISS double-deck EMUs and continues to perform major repair and maintenance work for MÁV.
Failed Egyptian contract
The company’s troubles began with a 1,350-car order for Egypt, a joint venture originally involving Russia’s Transmashholding. After the imposition of war-related sanctions, the Russian partner was forced to withdraw, leaving Dunakeszi to continue production at significant losses.
The Hungarian government had repeatedly expressed its intention to rescue the strategically vital factory, adopting two decrees aimed at its preservation. However, analysts estimate that a state injection of around HUF 40 billion would be required for full financial stabilisation – an amount that now appears unlikely to be allocated.
Industry observers suggest that the most feasible solution could involve the state purchasing the companies through the liquidation process – effectively amounting to re-nationalisation. Yet such a move would be both legally and financially complex.
Much of the Dunakeszi plant’s value lies not in its physical assets, but in its specialised permits, licences, and ISO certifications, which are essential for rolling stock production. Obtaining these again under a new corporate structure could take up to 18 months, further delaying any potential restart of manufacturing.
Failed Talgo Bid
In March of last year, the consortium Ganz Mavag Europe Private Limited, which includes the railway group Magyar Vagon and the fund owned by the Hungarian state Corvinus Zrt., launched a public offer, worth 619 million euros, to take over all the shares at the Spanish railway manufacturer Talgo, the manufacturer of the famous AVE high-speed trains.
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