Hungarian companies are increasingly setting their sights on the robust economies of Northern Europe, finding fertile ground for expansion notably in high-value sectors. A recent report details growing opportunities between 2019 and 2025 in fields like medical devices and enduring technologies,with firms like Vajda Papír and Macher Zrt. already demonstrating success in Norway and Denmark, respectively. This push is supported by the Hungarian government and export agencies focused on fostering international partnerships and navigating the demands of the Nordic markets, where quality and long-term reliability are paramount.
Hungarian small and medium-sized enterprises (SMEs) are finding increasing opportunities in Northern European markets. Companies in the region have demonstrated their competitiveness in several sectors in recent years, with particularly strong performance between 2019 and 2025 in medical instruments and devices, fresh produce trade, pharmaceuticals, electronics, application development, and biotechnology, according to Katalin Bihari, Deputy State Secretary for the Development of Foreign Relations at the Ministry of Foreign Affairs and Trade, and CEO of the Hungarian Export Promotion Agency (HEPA).
Table of Contents
- Innovation is a Key Requirement for Scandinavian Markets
- Quality and Reliability are Essential for Nordic Success
- Market Opportunities in the Scandinavian Region
- Hungarian Companies in Sweden: Open Doors
- New Opportunities Offered by the Advanced Industrial Environment
- The Convergence of the Swedish Model and Hungarian Ambition
Bihari explained that these sectors exemplify the innovative capacity and commitment to quality of Hungarian businesses, qualities that are essential expectations in the Nordic markets. HEPA’s CEO believes the metal and machinery industries also represent promising areas for Hungarian companies. Specialized metal processing, toolmaking, and prototype development are areas where Hungarian firms’ technological preparedness and flexibility can provide a competitive advantage.
Nordic industries are among the most advanced globally, making quality certifications, sustainable operations, and a modern logistics infrastructure crucial for market entry for Hungarian companies.
As a concrete example, Bihari cited Vajda Papír Kft.’s Norwegian subsidiary, Vajda Papír Scandinavia AS, which has become one of the group’s most important pillars. The company sold nearly 22,000 tons (18.5 million packages) of hygiene paper products in Norway and Sweden in 2024, establishing a strategic position in the Nordic region. The Norwegian subsidiary employed 114 people in 2024, with revenues reaching $47.6 million USD.
Macher Zrt., based in Székesfehérvár, is also achieving success in the Danish market. The Hungarian-German joint venture supplies premium-quality cable harnesses and electromechanical solutions for medical diagnostic equipment, industrial electronics, and automotive applications, demonstrating the value of Hungarian expertise in electronics and metalworking in the Nordic markets.
In the energy and technology sectors, Enerhash offers new solutions. By leveraging synergies between the energy sector and data centers, the company is increasing efficiency. Through more than 4.5 billion Hungarian forints in private investment, the company’s data center is already improving the performance of a power plant operated by a Swedish state-owned energy company within the Arctic Circle. Enerhash plans further investments, potentially opening up new opportunities for Hungarian technology exports.
Bihari emphasized:
“The Ministry of Foreign Affairs and Trade, along with embassies, economic attachés, and the HEPA Hungarian Export Promotion Agency, jointly support the international expansion of Hungarian companies with tailored services, from export readiness assessments to partner searches, leveraging knowledge of local economic processes and key business players.”
Collaboration between HEPA and international partners, such as experience-sharing with Business Finland, is opening up new avenues for Hungarian companies. Approximately 1,000 Hungarian companies among HEPA’s partners have expressed interest in the Nordic markets, highlighting the region’s strategic importance to the Hungarian economy.
Quality and Reliability are Essential for Nordic Success
“The Scandinavian industry is not built on promises, but on demonstrable quality and long-term reliability. Hungarian companies are increasingly able to demonstrate this, but entry into the market requires certifications, transparent processes, and a physical presence,” said Ádám Ferenc Tóth, Managing Director of the European Conformity Check Institute (ECC), which provides business development consulting for the Hungarian Metal Industry Cluster, and who attended the Elmia Subcontractor trade fair in Jönköping.
Tóth added:
Swedish and Norwegian manufacturers plan for the long term, and once a company becomes part of the supply chain, it tends to stay there.
Therefore, preparedness, quality assurance, and technological credibility are key. He believes this mindset is not an isolated phenomenon, but is fundamental to the entire Scandinavian industrial culture.
Europe has few regions that combine a stable economy and industry with innovation and a future-oriented approach – Scandinavia is one of them.
“The Swedish, Finnish, Danish, and Norwegian industrial models have been demonstrating for decades how to maintain competitive, technologically advanced, and sustainable production even with high wage levels.”
ECC’s Managing Director is convinced that Scandinavian industry is now a European benchmark not only in the automotive and engineering sectors, but also in energy, digitalization, and materials technology.
A key characteristic of Swedish industry is that stability does not mean slowness, but continuous adaptation. The economy is based on a highly skilled workforce, strong research and development funding, and close cooperation between industry, education, and the state.
One of the most important elements of Swedish industrial culture is trust: companies think in terms of long-term partnerships, supply chains are stable, but open to any new partner who can demonstrably prove reliability and innovation. It is no coincidence that the share of industry in Sweden still exceeds 20 percent of GDP, while the country is also at the forefront of digitalization and automation.
Three sectors are particularly attractive to Hungarian companies:
- Automotive and transportation technology: SAAB, Volvo, Scania – stable, technology-intensive manufacturing bases.
- Energy and engineering: ABB, Vattenfall, Husqvarna, Sandvik – high engineering content, advanced technological needs.
- Sustainable manufacturing: Reducing the environmental footprint is now a basic supplier requirement.
The strengths of Hungarian industry lie in flexible production, high technical standards, and good value for money. However, only companies with stable quality assurance, advanced technology, and long-term commitment can enter the Swedish market. A Swedish manufacturer rarely changes suppliers – but once they let someone into the chain, they work with them for decades. Therefore, a physical presence and technological persuasiveness remain crucial.
Hungarian Companies in Sweden: Open Doors
Fourteen Hungarian industrial companies participated in the 50th anniversary Elmia Subcontractor trade fair in Jönköping this year. The joint national stand was organized by the Hungarian Embassy in Sweden and the Hungarian Metal Industry Cluster. The portfolio of Hungarian companies covered a wide range of industries – from precision machining to welding, mechanical engineering, and automation – precisely the spectrum on which Swedish supply chains rely.
“The Swedish market is demanding, but open to new, innovative suppliers. Elmia Subcontractor is an excellent opportunity for Hungarian companies to personally showcase their technologies and build long-term relationships,” said Petra Dobronyi-Gál, Manager of the Hungarian Metal Industry Cluster, to Index.
A closer look at the participants reveals that it is rare for a small company in the Hungarian energy sector to turn to international markets so consciously. BAADSONSFJORD Kft. is doing just that: its goal is to make Scandinavian energy innovations accessible to Hungarian SMEs and increase their efficiency and sustainability. Norway, Sweden, and Denmark are at the forefront of energy technology development, particularly in green energy, energy storage, and smart control systems. The company does not simply want to “import” this knowledge, but to shape it into real business solutions tailored to Hungarian market needs.
“Our goal is to bring together Scandinavian developments and Hungarian entrepreneurial creativity. We are working on solutions that Hungarian SMEs can realistically implement and provide them with a real competitive advantage,” said Bálint Farkas, Managing Director of BAADSONSFJORD.
The company does not operate as a traditional consultant: it acts as an innovation intermediary, building a bridge between Scandinavian technology players and Hungarian companies. Its activities include identifying technology partners, preparing market adaptation studies, providing project development support, and developing energy efficiency strategies. The company is already preparing several pilot projects aimed at adapting Scandinavian energy efficiency models to Hungarian industrial and agricultural environments.
New Opportunities Offered by the Advanced Industrial Environment
Following the Stockholm Tech Show, OMIKRON Informatika Kft. has now opened up to the Scandinavian market at the Elmia supplier forum. The company believes that IT infrastructure is as essential to the operation of manufacturing companies as electricity or water. IT plays a key role not only in supporting production, but also in business continuity and cybersecurity. The advanced industrial environment and openness to remote, project-based solutions in the Scandinavian region offer new opportunities for Hungarian IT service providers. OMIKRON’s goal is to support the digitalization of manufacturing companies throughout Europe with modern, secure, and efficient IT systems.
Based in Pécs, MATRO Kft. has been a player in the Hungarian and international machining industry for 35 years. The family-owned business has developed into a stable, export-oriented manufacturer that supplies precision parts and tool holders to numerous industries in Europe. Its products appear in passenger and commercial vehicles, industrial equipment, pneumatic and medical systems.
MATRO’s machine park is one of the most modern in the region: 12-axis CNC lathes, 4–5-axis machining centers, and advanced CAD/CAM systems enable complex and high-precision manufacturing. The company manufactures more than 200 different tool holders, primarily for premium European machine manufacturers. At Elmia, the company presented its entire portfolio, from machined parts to the advanced Maxitool CNC tool holder product line, which generated interest from trade visitors.
One of the foundations of the company’s success is conscious diversification: the company manufactures parts for internal combustion engines in passenger cars, trailer coupling systems, air conditioning systems for electric vehicles, CNC machine parts, and parts for brake systems in commercial vehicles. Standing on multiple legs and having a reliable, multinational customer base provides stability even during economic turbulence. Continuous professional development, dual training, and the involvement of young professionals who want to create something lasting in a modern technological environment are given high priority at the expanding MATRO.
The Convergence of the Swedish Model and Hungarian Ambition
In summary, it can be concluded that
the key to the success of Swedish industry is reliability and long-term thinking. The future of Hungarian industry largely depends on its ability to fit into this logic – with technological knowledge, precision, and innovation.
The current large-scale Hungarian presence at Elmia Subcontractor is not only a symbolic but also a practical step in this process: the Hungarian machine industry is knocking on Scandinavian doors again – this time not with subcontracting work, but with knowledge, quality, and real technological content.
(Cover image: Hungarian Metal Industry Cluster)
