The Printing Company

History from 1851 to the present day

THE PRINTING COMPANY

History from 1851 to the present day

Chairman’s Introduction

Habent sua fata libelli. The Latin saying was born before Gutenberg. However, it is not only books that have their own fate, but also printing workshops. The 165 years of life of our printing company also speaks about it in the following pages.

I have worked for this prestigious The company previously operated only institution for 24 years, the history of which in Hungary but now it delivers its products was synonymous with the development of to many countries of the world because the state administration, professionalism of the competitive technology and unique and the latest technologies. I am proud security elements we can offer, not to that the first Hungarian stamp printed in mention the innovative work culture, which, our country and a number of important as you will see in the book, look back over documents were produced here, and now, a hundred years. in addition to many novelties that were unimaginable at that time, the product I am pleased and proud to commend to portfolio designed in the early 1900s your attention the history of our company, is complete once again. We are able to because it demonstrates how you can keep produce passports, the most up-to-date up with the rapidly developing world, while electronic identity cards, and billions of preserving respect for and commitment tax stamps as well as deliver hundreds to art and the changed Gutenberg Galaxy of millions of other security forms. as well.

Dr Ákos Erdős, Chairman November 2016 The Beginning

The legal predecessors of ANY Security Printing Company were established to satisfy the administrative needs of the Habsburg Empire and then the Austro-Hungarian Monarchy.

The centuries-old history of the printing and notices, as well as the newspapers of the K.u.K. Hof- und Staatsdruckerei. house began in the mid-19th century, when of Serbian Vojvodina and Banat of Temes. After the Compromise of 1870, the printing the branches of the Viennese State Printing The printing house began to operate house was moved to Buda in order to satisfy House, the Kaiserlich-Königliche Hof- und at the beginning of 1851, largely with similar needs in Hungary. The transfer of Staatsdruckerei were established, one after the machines and skilled staff provided the machinery and equipment from Timisoara the other, by a resolution of the Imperial by the parent company. The first head of was carried out under the direction of Ministry of Finance on 9 June 1850, the Timisoara branch printing was Vazul Zawadowsky, who remained the manager including the Timisoara Subsidiary, in Zawadowsky, who was entrusted with of the printing house thereafter as well. order to produce the administrative forms management by Alois Aurer, director 5

Map of Greater Hungary, 1895, 1897 (on the next page)

8

Alois Auer

The Kaiserlich-Königlichen Hof- und Staatsdruckerei was founded in 1801 in Vienna. The printing company became decisive in 1841 when its direction was entrusted to Alois Auer, a printer with excellent professional education, a creative mind and unparalleled working ability, who was also recognised by the government for his accomplishments. Around 1850, the company was already mentioned among the world’s first reproduction workshops with Security printing more than 800 employees at the time. During the development of the printing The protection against counterfeiting required house, Auer had the fonts remoulded the newest tools in each case meeting according to the font size system developed the technical standards of the particular by him, adapting to the needs of the multi- age. Moreover, it was important confidential ethnic state, significantly increased the number work for designers and printers, which they of type families and modernised printing, too. performed with an innovative knowledge. He also introduced a series of new procedures: In addition to paper with specific characteristics, chemitype, chalcography, siderography, special printing processes were also used galvanography, photography, heliography, for the production of securities and documents and various methods of lithography. besides the different modes of the more widespread intaglio printing, letterpress printing and lithography. Nature printing or physiotypy developed and patented by Alois Auer (No. 7698, 1852, 10, 12), the director of the Viennese State Printing House was considered an interesting and special process even in Hungarian context. During the process, objects from nature were pressed into a soft lead plate using a copper plate. The lead impression contained even the finest pattern of the original object. If a greater number of copies were needed, galvanic copies were made from the impression. Gutta-percha copies were made from pressure sensitive objects, and then the copies were pressed and made suitable for galvanising by coating with a silver-containing solution. The method was also used for the production of the first Hungarian fee stamp series. The unique pattern of the venation of leaves of the background print of the stamp pictures was taken from real leaves using the nature- printing process. The background of the stamps was printed by letterpress printing from the stereotype produced using the galvanic copies made from them. The Kreutzer and forint denominations were made with different pattern of venation. The middle graphic engraving different by denominations was put on the stamp sheet by intaglio printing. Watermarked paper was used for printing.

Austrian and Hungarian made fee stamps with Nature printing various nature printing background prints (on the next page) 9 The Cadastral Lithographic Printing House Institute and the State Printing House

Department 10 of the Ministry of Finance called “Permanent Cadastral Surveying Works” began its work on 17 February 1867. It was responsible for copying maps, as well as for the management of the creation of the land tax register.

The ministerial document No. 1868/50618, the Hungarian government considered it started its operations at Nándor (today on the foundation of a Hungarian printing necessary to produce its administrative and Kapisztrán) Square, in the Buda Castle, plant, was issued on 25 September 1868. financial forms in its own state printing house. in the government district. The manager Land surveyor engineer Norbert Bauer The institution was established by was Vazul Zawadowski, who was helped was in charge of the management of the decree of the Ministry of Finance by a supervisor, a clerk and an attendant the Hungarian Royal Cadastral No. 68.825 on 12 January 1869, following as state officials and 41 typographers. Lithographic orienting House Institute the Viennese model and using the equipment The budget allocated an extraordinary fund housed in the Buda Castle, in which and the fonts of the Timisoara branch, under for the reconstruction of the building and 16 state employees and 3 cartographers the supervision of the Ministry of Finance. the modernisation of the printing house were employed. From the very beginning, The Hungarian Royal State Printing House between 1869 and 1871.

Map of Budapest

The Hungarian Royal State Printing House

The merger of the printing houses and the launch of the operation of the higher-capacity State Printing House did not wait long, since, in compliance with the Compromise principles, the Ministry of Finance wanted to draw into its competence the issue of fee stamps as well.

Norbert Bauer, director of the Cadastral in Vienna in July 1869, and the chemist designed the first postage stamps Lithographic Printing House discussed József Harrer was trained for and forms with impressed stamps the transfer of the machines necessary the technology of stamp production. manufactured in Hungary, was also for stamp production at Staatsdruckerei Engraver János Uchrein, who later employed at that time. Illustration pictures for elementary education Government orders sometimes provided an opportunity for representative publications that were valuable even in terms of book art. For example, in 1878, the volume entitled “Illustration Pictures for First-Year Elementary Education” with huge colourful lithographs was produced on instructions from the Ministry of Education as a school aid, with the participation of famous painters of the time: Mór Than, János Greguss and others

The merger of the Cadastral Lithographic here. The State Printing House dealt with Printing House into the State Printing all of the printing processes, so the staff House was ordered on 9 March 1870 by working here had to be proficient in all the Minister of Finance in his document areas of the printing profession. Norbert “with immediate effect”. However, it Bauer was appointed acting director, while actually took place on 1 May; the document Zawadowski, who resettled from Timisoara also granted permission to the Company to to Buda, took part in management as a chief improve its equipment and to recruit and foreman from 29 March 1872. Imre Péchy became known beyond the borders of the country primarily for his mapping studies, train personnel. The State Printing House gained professional relief maps and in recognition of his work. He The State Printing House announced recognition and reputation at home and was elected member of the Paris Académie a competition for 20 technical jobs. abroad during the quarter of a century long Nationale and was awarded the Order of Iron The State Printing House, expanded management of Imre Péchy (1832-1898), Crown by Emperor Franz Joseph. His known works included the map of Budapest and its by amalgamation, also received the who succeeded Bauer in the director’s region published in 1872, and the relief map of building located at 33 Országház Street, chair from 1873. His successful managerial the Tatra Mountains, published by the State to the ground floor of which the Audit activity was illustrated by the development Printing House. Office was moved later. Whilst on the third of the final internal organisation and The Pallas Encyclopaedia wrote an appreciation floor, the draughtsmen, pantographs and product structure of the company, high- of him under a separate headword, still in life: the company sample store were placed. quality prints, stamps and value articles, “It is due to his tireless activity, well-developed artificial taste and versatile in-depth technical The form store and the expedition, which appearance and reputation at home and knowledge that the State Printing House was later housed in the new building of abroad. Under Péchy’s direction, the State developed into the country’s first art institute, the Ministry of Finance at 3 Országház Printing House took part in all the world and his galvanoplastic, photomechanical, copper Street, performed trading tasks as well, exhibitions organised in Europe, won and photo printing reproductions and artistic reproductions duplicated in stunning design and as the publications of the State Printing awards and gained recognition with its unusual sizes raise the institute to the same level House could only be ordered or purchased exhibited products. as other similar art institutes abroad.” 14

Many of the contemporary painters and graphic artists were involved in the illustration of the volumes presenting Hungary, whilst the majority of the drawings were engraved into wood or copper in the workshop of the School of Arts and Crafts under the direction of Gusztáv Morelli, many of them as a facsimile, that is, with the faithful reproduction of every last detail of the original drawing 15

The Hungarian version of the 21-volume decorative brochure entitled “The Austro-Hungarian Empire in Word and Picture” was also published by the State Printing House between 1887 and 1901. This encyclopaedia-sized empire presentation work, which came out under the patronage and collaboration of the heir to the throne, Archduke Rudolf, with Mór Jókai being the editor in chief of the Hungarian sections, required a lot of organisation and precise work, given the large number of authors and the richness in artwork 16

Sample Page: Annuity loan note, 1895

The autonomous state existence created the appropriation accounts, the important different treasury bills, state promissory by the Compromise for Hungary bills, the Financial Gazette published by notes, annuity loan notes, class lottery demanded the development of a modern the Ministry of Finance since 1874 and tickets, blank bills, bills of lading of administration, which required a variety the timetables of the Hungarian State domestic and foreign freights, cigar and of forms and records. Accordingly, Railways were printed in the State Printing tobacco packaging materials and tax the state budget and its justification, House. Hungarian Royal Treasury Notes, stamps were also produced there. 17

Decorative binding of the first volume of the Sample Pages of Value Articles, 1900

The decorative and huge product display albums made for the world exhibitions, surviving in the library of the Ministry of Finance and in Stamp Museum well illustrates the level at which the State Printing House worked and the intensity with which it appeared on the exhibitions. It worthily took part in the 1896 Millennium Exhibition as well. “The Hungarian Royal State Printing House took great care of the exhibition,” wrote Zsigmond Falk, “and strove to present all the special things that are not produced by any other printing company. It encompasses all the typographical branches and manufactures, state and debt securities, stamp tickets and postal value articles. Every year, they produce more than a thousand beautiful drawing, engraving, galvanoplastic and photomechanical works nearly nine hundred thousand forints worth”.

Advertisement of lottery with game plan, list of prizes, 1857 From 1871, Hungarian Stamps are Manufactured by the State Printing House

For the domestic and foreign general public, stamp production became the most well-known activity of State Printing House over the decades.

The provision of the 1867 Compromise should be put on the mail of the Hungarian the task of supplying forms for the post concerning postal services came into effect Post. The first Hungarian postage stamp offices in Hungary and Transylvania, could on 1 May. Then, all of the post offices in came out at the beginning of June 1867, not produce stamps. Hence, the solution Hungary came under the competence of and it was printed in the Viennese was to produce the postage stamps, the Hungarian Post Directorate. Therefore, State Printing House at the same time similar to fee stamps, in the Cadastral a natural claim came forward that as the Austrian edition, with similar Lithographic Printing House, which independently published Hungarian stamps stamp image. was only intended to be merged with issued by the Hungarian Post Directorate The University Press, which was awarded the State Printing House at that time. 19

Galvanic printing forms of 3-kreutzer stamps, 1871

On 23 December 1869, Minister of Finance Menyhért Lónyay wrote to Minister of Agriculture, Industry and Trade István Gorove concerning the case of postage stamps, referring to the fact that stamps, blank bills and other forms would be produced in the Cadastral Lithographic Printing House intended to unite with the State Printing House and that the negotiations necessary for the reconstruction of the designated rooms and equipping the institute had already started. The trade minister, who oversaw postal affairs as well, soon replied that “…I am ready to pass the production of postage stamps, stamps, envelopes, stamped postal orders and postcards to the Cadastral Lithography Printing House Institute to be merged with the Hungarian State Printing House, provided that the manufacturing costs will not exceed the costs of the Vienna Imperial and Royal State Printing House.”

István Gorove

The graphics of the first postage stamp lithographic printing house. After several In addition to the stamps, envelopes, made in Hungary, published in 1871, test printing, the first lithographic stamps postcards, letter cards with stamp pictures was created by engraver János Uchrein, were released from the printing house in printed on them, a variety of delivery notes using the ruler’s portrait. In order to meet May 1871. The copper printing presses and postal forms constituted the form the deadline, the lithography method was arrived later. Therefore, in June 1871, as needs of the Hungarian Post in the product used, along the lines of the former standard originally planned, the first copper-printed portfolio of the printing house. mapping process used in the cadastral Hungarian stamps were produced as well. 20

Engraved version of the 1871 stamp release, with the galvanic copies of printing forms 21

In 1873 the responsible Ministry of Agriculture, Industry and Trade applied to the king for his permission to change the image of postage and newspaper stamp. The production of the stamp series was approved by the emperor, Franz Joseph, and the permission was written with his own hands on the document. From 1900 a New Name: State Printing Company

Regulation No. 101.522/1900 of the Ministry of Finance of 15 December 1900 established a new organisation and order of business for the State Printing House. Breaking away from the former name, State Printing Company became the official name.

The new regulations came into force on required a strict controlling system that The biggest securities and value articles 1 January 1901. existed solely at the State Printing House. production tasks were banknote Ministry of Finance as principal ruled out The revenues of the printing house production, League of Nations loan and the opportunity of State Printing House to also increased steadily after the turn compulsory loan, with all the financial compete with other printing houses. It was of the century, and its profit also and postal value articles, works associated allowed to accept external orders only if increased, except for the years during with the switch from korona to pengő. the job was confidential and the customer the First World War.

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50th year anniversary

Printers greatly appreciate the exceptionally long time spent in business. The staff of the Hungarian Royal State Printing House celebrated the fifty years of work in the printing industry of machine- minder Imre Déling on 28 June 1908. He had a fruitful career: he worked for several foreign and domestic printing companies and participated in the resettling of the Timisoara branch to Buda as well. He was a foundation member and for many years, governor of the professional body called Pressmen's Circle. 25

Closed telegraph form with impressed stamp, 1901

Black number Kreutzer card and plain postcard, 1888 edition Colour number Kreutzer, 1874 edition, with copper print stamp 26 Tax Stamp Production since 1900

Tobacco labels from the 1900s 27 Passports have been produced in the Printing House for more than 100 years

Passport, 1914 Economic Crisis and World War II

In the early 1930s, the crisis affecting the country’s entire industry did not spare the printing industry either.

On 14 December, 1931 the State Printing and, what is more, in 1938 the State "unused military factory", which Company switched from eight hours Printing Company was unable to satisfy meant that although it did not have a day (48 hours a week) to six hours the ever-increasing demands even by to participate in direct war production, a day (36 hours a week), while wages restoring the eight-hour working day, so it still had to implement particular were cut by 25%. two shifts were partially introduced, and measures: for example, to form a well- However, during the years of the war, then, because of an abundance of orders separated military composing room which were tragic in terms of the fate associated with the territorial expansion and move a small printing division to of the country, the company was rather of the country, three shifts. the countryside to meet its printing flourishing due to military and political In 1939, the Hungarian Royal State needs and to print the official papers orders. Unemployment was eliminated Printing Company was declared an designated for these regions. 29 The State Printing Company was declared factory, movement within the printing press which it increased by another 50% in 1943. a military factory in 1942. Direction was was also made stricter. As the departments Most departments already worked 24 hours taken over by the headquarters formed carrying out work subject to strict a day. In addition to the growing need for from confidential clerks, classified as accounting, the strongroom manager had to forms, the State Printing Company was also "field-officers". The management of carry out full accounting on the completion entrusted with the manufacturing of new the company could undertake work only of the shifts. products. For example, the special forms with their permission, and their permission of the Public Supply Office and the food was required even for the issue of holidays. By 1942, the printing house doubled its and fuel notes (motalkó) used all over Simultaneously with becoming a military income achieved in the last year of peace, the country were manufactured here. Reconstruction and Transformation After 1945

The siege of Buda Castle, which lasted nearly seven weeks, ended on 12 February 1945.

During the reconstruction works, the plant machines were initially operated manually ordered that the Printing Company was renovated and the damaged machines by the workers. applied overprint "4 April 1945 Liberation were repaired with exemplary speed so (money value)" on 26 denominations of The Provisional National Government that work could be started sooner. and the Ministry of Transport ordered the stamps of the series entitled Generals The first set-up type was a bilingual ID card, the edition of a stamp series to issued in 1943-44. The first new post-war shortly after which the first newspaper commemorate 4 April 1945. Design and Hungarian stamp could be released was also produced: the Official Journal of construction/manufacturing of a new stamp on 27 May 1945. The creation entitled the Provisional Government of Debrecen. in the ruined plant was not yet possible, so In Memory of Endre Bajcsy-Zsilinszky For the lack of electricity, the printing the management of the Hungarian Post was made by graphic artist Sándor Légrády. 31 Transformation Milpengő, Billion, Trillion, Tax Pengő were made with background printing of the State Printing without value. Rather, values were printed Company into Large- on the base in a special session, sometimes Scale Works with different colours. The new forint and the Forint series consisting of 13 stamps were released on 1 August 1946. The batch made up of 22 million units was manufactured using two technologies: Simultaneously with the machines, previous Stamp issued in memoriam intaglio and letterpress printing. Endre Bajcsy-Zsilinszky was created customers reappeared one after the other. by Sándor Légrády graphic artist. The Hungarian Post and the Hungarian The year 1947 brought real change to Railways continued to give most of the work, the plant. It was the time when pools but the production of official forms, bonds appeared, later followed by the lottery and lottery tickets also continued. Ballot and other gambling products; the printing papers for the 1945 elections were made of their tickets brought a long-term firm here in November, and the tax pengő put order to the State Printing Company. into circulation in the spirit of runaway For more than a decade after World War II, inflation was also printed here. They the company worked with machines started with one thousand tax pengő, purchased before or during the war and then went on with denominations of mostly restored by the workers. With such ten thousand, one hundred thousand, facilities, it was even more significant that Jubilee stamp of the 100-year-old and one million tax pengő. two employees of the Printing Company, State Printing House During the two years after the war, Ernő Dunai and Ferenc Lehrbaum 12,500,000 postage stamps were printed. developed the so-called dry offset process The first key development investment was in 1949 – for which they received a shared made in 1957: new sheet-feed machines were While the postal charges were increased acquired. In addition to the increased capacity, 27 times between 1 May 1945 and 24 July Kossuth Prize – while in 1950, thanks to this investment also led to improved quality: 1946, the Printing Company made every the successful innovation by János Kozsik, multicolour printed stamps could now be effort to meet the constant stamp distress. Hungarian-made monotype matrices were released. The stamps Horse Courier, Million, produced. In the 1960s, the company began to print export stamps as well: Mongolia was the first country to order a stamp made by the State Printing Company, followed by Vietnam, Lebanon, El Salvador, Jordan, Kuwait and a number of other countries. At this time, the State Printing Company was ranked in the second place among the world’s large stamp printing companies. A new product release created a demand for the next major investment. Based on the success of pools and lotteries, in 1967 the State Printing Company was entrusted with the production of domestic enveloped lottery tickets previously made in Romania, procurement of the necessary equipment took place then. In 1977, a combined printing machine with two special finishing units was installed to manufacture the pools and lotteries. During the half-century after World War II, the production of quarterly election materials – ballot papers, posters and other printed matter – became a permanent part of the production profile, which resulted in the replacement of the machines of the letter press printing shop. The modernisation of the cliché took place in the 1980s. The technology of phototypesetting was introduced and program-controlled step- and-repeat equipment was purchased for the production of offset plates. Lottery tickets High-performance four-colour offset printing machines were added to the printing machinery. Electronic colour separation equipment with the related image processing unit was put into operation in 1989 to replace the photo- mechanical process. Intaglio mould making was completely renewed, and a new intaglio rotation machine was also put into operation.

Ballot paper, 1945 32

Fee stamp imprimatur 33 The renewal of Raising the quality of postage stamps as in the 1920s, that stamp collecting could and the maintenance of continuous, be a serious business and, therefore, they stamp production reliable quality was always on the agenda asked well-known graphic artists to design of the State Printing Company. stamps. Three of them were commissioned The Hungarian Post had recognised, as early or employed by the State Printing Company.

Stamp sheet issued for the 100th anniversary of Mór Jókai’s birth, lithographic phase stone, 1925 34

Charity, 1924 35 Ferenc Helbing (1870-1959) was originally Ádám Cziglényi (1909–1998) was a student of Sándor Légrády (1906-1987) began his artistic a lithographer, and after the School of Industrial Vilmos Aba Novák at the College of Fine Arts, career as an aurifex, and then he became Design, he became a professor and director of where he graduated in 1935. He designed about a student of Helbing in the School of Applied the School of Arts and Crafts, today’s University 250 Hungarian and a thousand foreign stamps Arts. From 1930, he worked as a stamp of Applied Arts, until 1936. He was a pioneer of in the 1970s, his works were repeatedly awarded designing graphic artist for the State Printing commercial graphics in Hungary. In addition to the “Most Beautiful Stamp of the Year” award. Company for nearly half a century, until 1977. numerous stamps, he designed the majority of With the introduction of raster embossed stamp the Hungarian banknotes and made posters, design, he opened a new era in Hungarian glass paintings and book illustrations. stamp art, and the outstanding quality of his works was recognised abroad as well. Already in 1936, his Planes series was awarded the first prize in Florida, whilst the Madonna of the For Transylvania series of 1940 won the third prize in 1957 of a competition covering the whole world, which was called the most beautiful Madonna depiction.

The 22 million pieces of the Forint stamp series were manufactured using two technologies: gravure printing and letterpress printing. 36 Public taste and the prevailing design trends, and the stamp manufacturing activities of released for the hundredth anniversary of as well as the change in lifestyle, significantly the State Printing Company, the centenary domestic stamp production, there were many influenced the choice of theme and aesthetic of the Hungarian stamp was celebrated in 1971. stamps with history topics, including the design of stamps in the 1960-70s. Further artists This occasion was associated with the publishing “quotation” from a lithographic newspaper stamp and designers with individual style and talent, of stunning unique stamps, series and blocks, from 1871. Sándor Légrády designed a stamp such as József Vertel, Éva Zombory and and a highly successful International Stamp entitled “Postage stamps are manufactured Mihály Füle, to name a few, became well-known. Exhibition was held in Budapest. Among by the Hungarian State Printing Company During the boom of Hungarian stamp culture the raster embossed or offset print stamps for 100 Years” with the corresponding tickets.

Olympic stamp series 37 Many of the Hungarian postage stamps manufactured by the State Printing Company gained national (MABEOSZ, Hungarian Association of Stamp Collectors) and international recognition during the last half century, starting from the 1936 Florida Award of the Planes series (Sándor Légrády), the Olympic stamp line issued in 1952, through the People’s Stadium made by József Vertel in 1953 to the Csontváry blocks (1973) and the Cultural Forum Budapest 85 (József Vertel). In the 1986 competition of the world’s most beautiful stamps, the Organising Committee of the International Postal Organisation WIPA (Wiener Internationale Postwertzeichen Ausstellung) awarded the 2nd Prize to the stamp showing the portrait of the renowned Hungarian cancer researcher Móritz Kaposi, which was issued in honour of the 14th International Cancer Congress held in Budapest. It was designed by graphic artist József Rác and printed by digital signal splitting, using offset technology. The 4th Conference of state postage stamp printing companies was held in Madrid, in April 1992 at the same time as the Seville World Exhibition; the State Printing House won first prize, a silver plaquette and a certificate with its Protected Birds series (designed by Pál Varga) in the category called “Best Offset Print Stamp” in the contest attached to the conference.

Planes and Protected birds series

Hungarian Millennium After the millennium, the State Printing Company Plc. produced a festive and representative stamp at the flattering request of the Hungarian Post. The “Hungarian Millennium” block is considered rarity in the world, because it was the first postage stamp in the Hungarian stamp production that was embossed with 23-carat gold foil and furnished with laser perforation. After Privatisation, Renewal in Kőbánya

After the political transition in 1989-90, the State Printing Company, former supplier of the Treasury and the State, also had to face the challenges of the market.

Most of the state monopolies ceased to Due to the changed market conditions, it was formed on 3 May 1993 with 224 exist and then the competition started became necessary to radically reconsider participants, which purchased a share for the production of those products that the situation of the Company. package with a nominal value of were previously produced exclusively by HUF 120 million (15.87% of total shares). state monopolies. The Printing Company The State Printing Company was The remainder was acquired by the local continued to manufacture the total amount privatised in 1993: Láng Publishing government. of pool and lottery tickets, a majority and Holding Co. could purchase of forms and securities provided with 70% of the shares of the company. Dr Ákos Erdős became Chairman of protection against counterfeiting, and The employees could also be present the Board, whilst the former commercial with about 50% of the shares, it retained in the company as owners: under director of SZÜV Printing Company, its position in the production of postage the Employee Stock Ownership Plan György Gyergyák was appointed CEO. stamps as well. (ESOP), the local ESOP organisation 39

György Gyergyák recalls his first year as CEO as a real challenge. Not only that two press organisations had to be merged, but in the meantime, he had to manage the printing of the ballot papers required for parliamentary and municipal elections and the move to Kőbánya. All tasks were implemented perfectly. “During my decades-long work here, I could all the time rely on my colleagues, who provided limitless support: Saci Antal, Huba Szatmári, Gyuri Vajda, Robi Keczeli, Marika Kissné, Albi Dékány, Janó Bak, Erzsi Novotny, Palkó Simek, Laci Szántó, Imi Pálvölgyi, Miki Jármai and Attila Kiss and the Mikk brothers from the printing shop. I could go on for a while. I was honoured to work at and for a nearly one and a half century old, always renewing printing company.”

In the contract concluded with the State Property Agency, the new majority owner agreed to create the conditions for the establishment of a modern printing plant by selling the building complex in the Buda Castle District. The new printing- house was built in less than six months, without state aid and loan, at a cost of nearly half a billion forints. The printing press in Halom Street was solemnly inaugurated on 4 October 1994. Meanwhile, the State Printing Company Plc. took over the printing press fleet and a majority of the employees of the SZÜV Continuous Form Printing House (Computer Technology and Business Administration Organisation). Thus, the company’s product range was significantly enlarged and its market positions were improved. In the year of privatisation in 1993, the revenue of the Printing House was HUF 670 million, followed by strong growth. By 2015, the Company had become a printing company group with an income of HUF 21 billion, one of the leading security printing companies in the region.

President Árpád Göncz was also invited to the official opening but, because of urgent state affairs, he made a private visit to the printing press later on. New Development Path: “More Than a Printing House”

Gathering strength and laying the foundation of development in the coming decades. This is to sum up, briefly, the years of the State Printing Company Plc after privatisation, which were characterised by strategic decisions resulting in a strong change in attitude.

Recognising the market needs and with such an order of magnitude required capital raising, the invested capital IT innovations, the owners and a reliable financial investor. The financial of the printing company increased by management of the printing company strength and professional experience HUF 1.2 bn. started a development overreaching of the new co-owner, Baring Central The co-owner held a stake of 42.92%, the next millennium: production of European Investments, significantly which was ultimately sold by the Company plastic cards and personalisation. contributed to further development. before its entry into the stock market It became apparent that an innovation At the end of 1997, because of foreign in 2005. 41

Listing on the BSE Admission to the stock market had further to the company’s stable operation. benefits in store for the Company, as it The Company’s shares are listed in in 2005 provided considerable publicity not only in Premium category on the Budapest Stock the domestic but also in the international Exchange. The shares of the Printing press. In addition to increasing awareness, Company have performed steadily over the “more than a printing house” achieved the past 10 years, and showed an increasing The shares of the Printing House were considerable brand value growth with tendency, apart from weakening due traded on the Budapest Stock Exchange the transparent operations seen not only by to the global economic crisis, while on 8 December 2005 for the first time customers but also by suppliers. Therefore, the dividends paid to owners from year and, on this day alone, share transactions a long-term strategic cooperation was to year was in line with – and, at times, of about HUF 5 billion were made. established, which further contributed even exceeding – market expectations. 42 Shortened product life cycles

Over the past 20 years, a number of products have been manufactured in the Press, which survived “only” for a couple of years. Vignettes and cards as well as prepaid phone cards equipped with scratch surface have been replaced by electronic sales. At the end of the 1990s, in the transforming market of forms, the Company started the sales of standard forms under the trade name “State Forms”, invoices to be used by every business, delivery notes, printed and unprinted continuous forms. Through its network of dealers and resellers, the products could be purchased from the known print shops in the country and by mail order as well. Later the range of products was expanded by private label products, “Educational Forms” family intended for schools. In addition to companies and public education, the company produced printed matter for family doctors, the number of which exceeded 600 types. It managed to keep a number of insurance and banking customers by manufacturing and personalising the company’s products according to individual needs. After the 2004 export market expansion, the companies of the Printing Company group are recognised as a leading supplier in this area now in Romania, Bulgaria and Hungary.

“Educational Forms” family

“ANY printed forms” family 43 State Printing Company is 150 years old

The State Printing House celebrated its 150th anniversary in 2001. For this occasion, an exhibition was held at the Budapest History Museum under the title “The State Printing Company is 150 Years Old – From the First Hungarian Stamp to the Chip Card”. The exhibition showing the history of the State Printing House from 1851 to 2001 provided insight into the culture and product range of a prestigious company and also carried serious economic values: visitors could get acquainted with stamps and lottery tickets as well as state, public administration and business forms and also cutting-edge plastic and chip cards.

From the exhibition

“State Printing Company is 150 years old” stamp International Expansion

Although the sales revenues of the Company rose dynamically after privatisation, it became evident that the Hungarian market is of limited size for continued growth.

From 2004, the Company began to the beginning of 2005, Bulgarian, Russian and amounted to 39% of the total revenues. expand in Central and Eastern Europe, and Slovak businesses were also registered. ANY Security Printing Company Group Poland, Bulgaria, Romania and Russia The strategy worked: In 2004, the export currently consists of ten companies. by the foundation of subsidiaries. turnover amounted to HUF 640 million, It operates with 3 sites in Hungary, In September 2004, the first joint venture however, in 2015, it exceeded HUF 8 billion, 2 in Romania, and one in each of Bulgaria, was established in Romania, whilst by so the export revenues increased to 12-fold Slovakia and Moldova. 45

SLOVAK DIRECT

TIPO DIRECT SERV

ANY BIZTONSÁGI ZIPPER SERVICES NYOMDA GYOMAI KNER NYOMDA

ZIPPER DATA

DIRECT SERVICES

Subsidiaries of the Printing Company Gyomai Kner Printing Company

Of the Hungarian subsidiaries, the Printing Company has arrived at One of the oldest Hungarian book printing another milestone in parallel with houses was founded by Izidor Kner, whose Gyomai Kner Printing House is name became synonym of beautiful books the largest and most prestigious company regional expansion. Further markets and quality since the late 19th century. His son, in the group, which has primarily been were needed to sustain dynamic growth. Imre, was not only a printer, but also a real book Thanks to its document security artist. He is considered one of the creators of engaged in the printing of books and the the baroque, then the Hungarian classicist production of business forms since 1882. enhancements, the Company is able typography. Gyomai was an intellectual to manufacture security products that workshop between the two wars, where The Romanian and Bulgarian joint are competitive not only in Central and the elite of Hungarian literature and graphic life turned up as creators. ventures have experienced a sharp increase Eastern Europe but also in the dynamic during the last 10 years. The “greenfield” global markets with their high level of companies established with the local expectations. Today, an increasing number partner have become dominant players of orders are received from non-European in the local business forms market. countries, and successful cooperation can During the period of over ten years, be expected in the future, too.

HUF million 25,000

20,000

15,000

10,000

5,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sales revenue, HUF million 11,557 14,489 14,472 14,620 14,007 17,129 17,122 16,781 18,021 22,692 21,366

Export sales revenue, HUF million 635 1,835 1,882 1,445 2,874 3,132 4,732 4,298 5,479 7,628 8,348

Rate of export growth ANY Security Printing Company Name Change - 2013

According to a law issued in 2012, companies not owned by the state may not use the attribute “national” or “state” in their name.

According to a law passed in 2012, the last 20 years. Therefore, according to Printing Company PLC with effect from companies not owned by the state the Articles of Association and the relating 1 February 2013. may not use the attribute “national” legal provisions, the Board of Directors The name of the State Printing House has or “state” in their name. There has decided to change the company’s name. changed, but the spirit of the 165-year-old always been state ownership to According to the decision of the Board company and the legacy of its history has a lesser or a greater degree among of Directors of State Printing Company, been entered into the pages of Hungarian owners of the company, but it has Registry Court changed the name of State economic and industrial history. stayed permanently under 5% for Printing Company PLC to ANY Security 47 Changes in the company logo made during the history of the printing house reflected the style of the era and the changing product structure.

The appearance of the first logo can be put at This historicising style figure was used between Highlighting the picture of the jubilee postage the end of the 19th century, and then the new the two world wars. stamp of 1951, graphic artist Sándor Légrády name valid from 1 January 1901 was included planned a new logo, which was used until in the ring of the logo containing the company the mid-1980s. name.

In 1986, the idea of Péter Schubert graphic artist In 1994, after the privatisation, the company’s The entry into the international market in 2003 resulted in a company logo with a new colour image also changed; the plans were made by also necessitated the change of the logo, while scheme and a stamp picture. Attila Auth, with the stamp remaining the central the stamp picture was changed into a rectangle theme. referring to a plastic card.

In 2013, not only the name but also the logo of the printing house was changed. Growth in the Field of Security Products

Since its foundation, the company’s activities were determined by the manufacture and development of security products.

Each area worked in a way to ensure and develops its international administration are produced at that the production and manufacture of certifications each year. They ensure the highest level – from identity cards products take place under the strictest that almost any personal and product through passports to tax stamps. rules. The Printing Company renews ID items requested by the state 49 Document Production of the concept. The products and services as well as food vouchers. With its encompass areas such as eID, passport, experience in manufacturing more than visa, tax and excise stamps or even 500 million cards, the company produces the design, manufacture of election documents, banking and trading cards forms and the delivery of the necessary to be used both at home and abroad. Thanks to its many years of experience IT infrastructure. The company performs In addition to contact and contactless and references, the Company helps the work personalisation of Hungarian biometric card documents, MasterCard and Visa of the state administration in the document passports and a variety of documents. chip cards, it offers a full range of card and product protection projects from Its manufacturing technology allows to solutions with its self-developed loyalty the planning stage, to the implementation produce billions of tax and excise stamps scheme. 50 A New Electronic The cards are supplied by the consortium than seven months; nowhere in the world led by ANY Security Printing Company. has such a document been made with Identity Card The contactless chip cards, which also these strict security functions in such in Hungary include fingerprints, have been renewed a short time. The new identity cards not only by their security solutions, they are protected by 16 security elements, are applicable for numerous electronic including Braille feature, transparent functions: they can be used for electronic hologram, security background, MLI signature on e-government services, for feature, laser engraved document number, The new electronic ID cards were tax and social insurance and as ePasses. metallic hologram, OVI feature and launched on 1 January 2016 in Hungary. The new documents were issued in less 2D barcode.

The new Hungarian electronic identity card 51

The new Hungarian electronic identity card under UV light 52 Biometric Passports Currently, it carries out the personalisation required for the production of electronic and mailing of Hungarian biometric passports and visas, such as intaglio printing passports and 50 different documents, technology and the most modern printing and thus providing a full range of logistics sewing machines. It produces passport books services. The Printing Company has all with safety elements complying with the ICAO The Company has produced over the information, technology and 9303 standard, but it also offers a number of 100 million cards in recent years. professional backgrounds that are non-obligatory security elements.

Sample passport 53

Pages of the sample passport under UV light 54 Tax Stamps

Tax stamps, in accordance with their utilisation area, represent a high security level from among the security products manufactured by ANY Security Printing Company PLC. The Company has been delivering its products certifying payment of the excise duty and including special security solutions to the National Tax and Customs Administration in consortium for more than 20 years. This has resulted in the decrease of the number of falsifications that cause damage to the budget.

Hungarian tax stamps

Hungarian tax stamps under UV light

Election Forms are granted by the highest international In 2000, the company was awarded an qualifications and its references include export task to Bosnia and Herzegovina, printing of election forms of other ordered by the Organization for Security countries as well. During the 2014 and Co-operation in Europe (OSCE). elections, the legal environment of Due to the special electoral rules, all people The Printing Company has 70 years the domestic electoral system was eligible to vote and staying in any part of of experience, both in the production completely renewed with many new the world had to provide opportunity to of election forms and in the management challenges compared to the past, such exercise their voting rights. The task was of special security and logistical objectives as the supply of materials for voting by implemented by the Printing House with related thereto. Printing, packaging and mail, production of information notices clear recognition of all organisers and delivering to thousands of sites is a very and voting patterns with Braille for stakeholders. complex task. The activities of the Company visually impaired voters.

There are numerous security elements on ballot forms as well 55 Document Security Laboratory The Company is one of the largest document production and personalisation companies of the region. It would not have been able to achieve all this without its own security products. In the Document Security Laboratory working for the Printing Company since 1999, more than 20 university-educated chemists, physicists and chemical researchers carry out their work. They are engaged in the development of the most up-to-date document security products and solutions. The fibres, shiny dots developed by experts, UV inks ‘working’ when printing or upon personalisation, special document printing inks, and monitoring devices guarantee the highest level of protection. Solutions are present in almost every product, thereby ensuring their competitive advantage.

Security fibres, shiny dots Security fibres and shiny dots are widely used to make paper documents safer for years. ANY Security Printing Company produces polyamide and viscose based security fibres in various sizes and colours, which are prepared in a different combination.

Security inks The staff of the Document Security Laboratory have developed and manufactured a wide number of special security inks of different colours. In addition to inks suitable for offset, intaglio and rotary printing, ink-jet and laser personalisation, the colleagues working for the Document Laboratory are able to elaborate specific solutions based on individual needs.

Fibres

UV-inks Mobile verification device

Document printers The document printers developed by the Printing House ensure the operation of domestic registers and registration offices. The security ink-jet, laser printer toner and stamping pad inks provide efficient protection for the personalised documents’ data, developed by our experts working at the Document Security Laboratory. The prints are easily controllable by means of UV lights and special tools. Each personalised text remains visible under UV light, even if the apparent colour of the text was hidden or re-written on the paper. The document printers developed by the Laboratory have worked in thousands of places for over 10 years: in all the Hungarian registration offices, registries and foreign offices.

Mobile control devices and solutions The documents and security labels are most commonly monitored in the field, so the control device portfolio of the Printing House focuses on mobile and handheld devices. It is an important requirement to be able to check personalisation information besides the security elements. The data in documents are encoded, and recorded on the products in the form of bar codes or data matrix. This data can be printed by the Company with inks that are visible or invisible to the naked eye. Personalisation can also be performed by UV or IR inks to prevent the falsification of strictly protected information. Depending on the characteristics of the special inks and the additives used during personalisation, the Printing Company offers different types of testing devices and complex solutions. Products on Paper, Plastic and Mobile

Today, the Printing Company hardly produces a product that is not personalised, identified. Therefore, the uniqueness of such products should be ensured during their production.

With a combination of the various IT and produced more than a hundred years ago competitive products for our customers: printing technologies, the Company is – according to the customer requirements besides the state administration, banks, able to manufacture the products used on paper, plastic and mobile phone. This insurance companies, utilities and large for identification and payment – formerly approach ensures that we can produce commercial firms. 57 58 Business Forms

The company produces business forms, bank statements and notices, ranging from printing, personalisation to enveloping and posting. The printing technology is also suitable for the production of products in particularly high volume, such as gambling tickets and election forms, and a variety of value articles.

Gambling Tickets

The majority of Hungarian lottery forms are produced by ANY Security Printing Company PLC based on the orders received from Szerencsejáték Zrt. (the largest service provider in the Hungarian gaming market): betting tickets for the five-number lottery draw, six-number lottery draw, Luxor, Tipp- mix, Goal Toto, Keno and the Scandinavian Lotto. The company also delivers thermo- transfer base papers for confirming slips.

Gambling tickets 59

KDB banking cards

Bank Cards Luncheon Vouchers Transport Tickets

The Company provides a wide range The Printing Company has a unique In recent years, the Printing Company has of services in the field of payment reference in the field of the production of produced more than 600 million thermal solutions. In addition to the production a wide variety of luncheon vouchers. It is paper-based tickets furnished with security and personalisation of MasterCard, Visa able to produce many different vouchers – elements for the Hungarian State Railways bank cards and mobile bank cards, it has either on hologram paper or in perforated and Volánbusz Transport Company Ltd. almost 20 years of experience in bulk block forms. It completes them with For the ticket machine project launched transactional printing, mailing and in security elements according to individual in spring 2014, the thermal paper base supply of PIN cards. ANY Security Printing needs that allow for the verification of material is supplied by the Printing Company. Company Plc. set up its card production the originality by special control devices. The Company produces 70 million products and personalisation plant in 1998. Due to Sodexo, which is one of the largest voucher per year with PersoProtect protection these developments, now it owns one of distributors all over the world, is among for BKK Centre for Budapest Transport. the most advanced card production and the Company’s partners. Through the solution developed by personalisation centres in Central Europe, the Document Security Laboratory, effective which was also certified by Visa and protection can be provided to the thermal MasterCard. paper-based tickets or season tickets that are easy to use in vending machines.

Sodexo luncheon vouchers CEO’s Epilogue

This book is about legends, people who were committed to pursuing their profession all their lives, and regardless of the fact that they did not work in a public company any longer, they considered it of the utmost importance to provide the citizens of the country with the necessary documents and all other documents in the best possible quality and in the fastest possible way.

The professionals of today can justly be as the items produced here have attracted compared to the workers and managers not only Hungarian, but also international of old age, about whom you can read in interest. the more-than-a-century-old documents. Walking around the world, we can proudly During the last about 18 years of my say that we belong to the professional working for the company, I have met forefront. Our work is recognised from an exceptionally great number of Dublin through Accra to Johannesburg. conscientious employees who would By stepping across the border, we have do a great job in any era. We appreciate enabled the company to develop. So far, we them to the best of our ability, since in have expanded in the Central and Eastern recent years, about 70 colleagues have European regions, but today that is not been granted a Lifetime Achievement enough. We shall continue the march to Award on the occasion of their the territory of Africa or any other continent. retirement and 40 years of employment with the Printing Company. I am sure of one thing: just as technology and the world keep changing, so are we. This company is lucky because in its However, there is one thing we are not 165-year history up to the present, willing to give up: the highest possible expertise has been combined with standard of safety and quality that has the noblest traditions of taste, characterised our products for 165 years.

Gábor Zsámboki, CEO November 2016

Managers

Vazul Zawadowski Works Manager 1851–1868 Norbert Bauer Acting Director 1869–1871 Imre Péchy Director 1872–1897 József Zárday Director 1899–1909 János Drehr Director 1910–1924 Tamás Kálnoki Kiss Director 1924–1937 Elemér Nyári Director 1938–1944 Ferenc Szakál Director 7 April – 7 June 1945 Antal Bardócz Managing Director 8 June – 7 July 1945 Ernő Makay Director 16 July – 31 October 1945 Béla Nirtitt Director Chief Mining Counsellor November 1945 – January 1946 Iván Ráday Director 31 January 1946 – 3 November 1948 Ferenc Krusslák Director 1948 András Kiss Deputy Director 1948 István Szabó Director 1948 Frigyes Klenk Director 1948 Ferenc Koltai Director 1949–1957 János Jámbor Director 1957–1973 Gyula Boskovitcz Director 1973–1979 Péter Bresztovszky Director 1979–1981 Sándor Mihalek Chief Executive Officer 1982–1994 György Gyergyák Chief Executive Officer 1994–2008 Gábor Zsámboki Chief Executive Officer 2008– ANY Security Printing Company PLC – Board of Directors

Dr Ákos Erdős Chairman Gábor Zsámboki Vice Chairman Tamás Erdős

György Gyergyák Péter Kadocsa Erwin Fidelis Reisch

ANY Security Printing Company PLC – Supervisory Board

Dr Istvánné Gömöri Vice Chairman Ferenc Berkesi Dr Imre Repa Dr János Stumpf Dr Erzsébet Novotny

Dr Tamás Sárközy Chairman

ANY Security Printing Company PLC – Management

Gábor Zsámboki Patrícia Antal-Császár Attila Kis-Fleischmann Chief Executive Officer Human Resources Director Marketing Director

László Balla András Huszár Emil Knieszner Deputy Chief Executive Officer Logistics Director Information Security Director

Ferenc Berkesi Dr Mihály Iszály Norbert Szász Director Chief Security Officer Director of IT Development and Operations Kristóf Kalauz Gábor Péter Dr Ádám Szobota Plant Director, Security Printing Chief Information Officer Product Centre Administration and Coordination Director Dr Lajos Székelyhídi Tamás Karakó János Veres Chief Research and Development Officer Chief Financial Officer Director of Innovation & Business Development Zoltán Tóth Róbert Keczeli Chief Technical and Production Officer International Tender Director Lifetime Achievement Award

The list of employees who have worked for the Printing Company almost all through their lives. Only in recent years, more than 60 of them have received a lifetime achievement award to commemorate their retirement, loyalty and about 40 years they spent with the company.

2006 Lászlóné Kaszás Katalin Tari Györgyné Adorján Ernőné Katona Sándorné Tari Ottóné Kerepesi 2007 Endréné Nagy 2013 Józsefné Karch Istvánné Popelka Istvánné Endrész Albertné Kecskés Róbertné Pub Gyula Janoch Béláné Nikiser Jánosné Szabó Lászlóné Kaposi Judit Sasváriné Horváth Ágnes Török Lászlóné Kelemen János Szopkó Sándorné Varga Lászlóné Kelemen II Béláné Vecsei Pálné Kormos 2008 Pálné Zeke Kovács Béláné Józsefné Balázs Attiláné Zsinkai Károlyné Puszta János Kincses Csabáné Sirkó Imre Pálvölgyi 2012 Józsefné Siti Attiláné Pék Istvánné Bagó Károlyné Sulyok Ferencné Fekete 2010 Ilona Feketéné Erdei 2014 Jánosné Alapi Imréné Forgács Istvánné Alapi Tibor Dudás Etelka Herbály Béláné Juhász György Epresi Angéla Holes György Horváth Zoltánné Kalmár Ferencné Kiss Rikárdné Kadarkuti Zsuzsanna Molnár Józsefné Zakariás Józsefné Szántó Jánosné Pap Lászlóné Zeke Endréné Rajk 2015 Józsefné Szabó Piroska Főzőné Kuti 2011 Pálné Szarvas Attila Zsinkai Ernőné Airizer Imréné Szász Györgyné Banádi Istvánné Szőke 2016 Ferencné Jung Sándorné Szőllősi Ferencné Sugár Award-Winning Colleagues

The Federation of Hungarian Printers and Paper Makers rewards printers for their excellent performance every year.

For Hungary Printing Award

2008 György Gyergyák, former Chief Executive Officer of ANY Security Printing Company PLC, member of the Board of Directors 2009 Lajos Papp, former Chief Executive Officer of Gyomai Kner Printing House 2016 Dr Erzsébet Novotny, Key Account Manager of ANY Security Printing Company PLC, Chief Executive Officer of Specimen Co. Ltd., member of the Supervisory Board of ANY Security Printing Company PLC

András Hess Award

2007 Huba Szatmári 2009 Albert Dékány 2010 Gyula Lángos 2011 Dr Erzsébet Novotny 2012 Róbert Keczeli 2013 Ágnes Konkolicsné Lukács 2014 Miklós Jármai 2015 Lajos Mikk 2016 Gyula Grantner

Certifications

Hungary’s qualified bidder and producer of securities Official NATO Supplier qualification (up to the NATO secret level) NATO and EU “Secret!” Facility Security Clearance Certificate, Certified Data management permit and system license National “Top Secret!” Facility Security Clearance Certificate, Certified Data management permit and system license ISO 9001 Quality Management System Certificate ISO 14001 Environmental Management System Certification ISO 27001 Information Security Certification License for EMV MASTERCARD and VISA bank card production and personalisation ISO 14298 (“Governmental” level, “Central Bank” level) AQAP 2110 Certification MASTERCARD CQM Certification MasterCard Mobile Provisioning

This volume was written and edited by Erzsébet Novotny, György Vajda and Attila Kis-Fleischmann, using the printing historical manuscript of István Jáni, Géza Buzinkay and Erzsébet Novotny.

The photos were taken with the permission of the Stamp Museum.

Design and production: www.ungerzsolt.hu

Publisher: ANY Security Printing Company PLC Leader in charge: Gábor Zsámboki CEO Halom u. 5. 1102 Budapest, Hungary www.any.hu [email protected]

Printed in Gyomai Kner Printing Company, in the 134th year of the founding of the printing house, in 2016 Leader in charge: Péter Fazekas CEO Kossuth u. 10-12. 5500 Gyomaendrőd www.gyomaikner.hu [email protected]

Hungary, Budapest, November 2016

ISBN 978-963-12-7461-5