American Machinist

A day at a time for Csepel. (Csepel Machine Tool Corp.) (company profile)

AT0027

BUDAPEST, HUNGARY

Dezso Varga, general director of Csepel Machine Tool Corp, woke up one morning two years ago and heard on the radio that, due to a government edict, he would no longer be able to export machine tools to the Socialist countries. That market, at the time, accounted for half his annual turnover, including orders that had been booked as much as four years in advance.

"We lost a stable market for half our goods," Varga continues. " Our marketing strategy had to change overnight. And we had to turn to the banks, who became our good friends: Lending us money at 30-40% made them very happy."

Csepel has built machine tools since 1927. …

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