Hungarian lighting company Tungsram has laid out ambitious plans as it aims to become a global company with $1bn in revenue in ten years, after an ownership change, it was announced on April 5.

General Electric announced late last year that it was selling its whole lighting business in the Europe, Middle East, Africa and Turkey region as it plans to trim assets to focus on its core businesses: aviation, healthcare, and power.

These units and the Hungarian operations were acquired by the former head of GE Hungary Jorg Bauer for an undisclosed amount earlier this year. The transaction includes all five of GE’s Hungarian factories with a total of 4,000 employees.

Bauer said he had signed a contract with GE on taking over the companyʼs units in Hungary this week. The deal was financed with short and long-term credit from state-owned export-import Eximbank. About 95% of the businessʼs revenue comes from exports, and profits will be ploughed back into Tungsram rather than repatriated, he added.

Bauer praised Tungsram as "the most innovative Hungarian company over the last hundred years".

Tungsram is close to signing an agreement with Eximbank on export financing. The company plans no dividend payment for the first three to five years of its reorganisation. It is targeting revenues of HUF90bn for this year, similar to what it generated last year.

The plans for the future include involving partners in product development and the establishment of an R&D base in Budapest. The company looks to strengthen its position on Asian markets, which generate just 4% of its revenue at present.

GE entered Hungary in 1989 with the privatisation of the renowned light bulb maker Tungsram, a company whose name was a synonym for lighting in many European markets for a century. Over the years it has expanded to become one of the largest US-based multinationals in the country with 12 units and 10,000 employees.