Here you can read about the history of the Kalasnyikov making in Hungary from the beginnings to nowadays.
Translated by Peter Fazekas, spell checked by Nathan Deppe.
The AK-47 assault rifle’s Hungarian career started at the end of the ’50s, when the Hungarian high command decided to modernize their weapons by replacing their PPSh submachine guns and Mosin-Nagant rifles.
They chose the AK-47 assault rifle, which has already proven itself in the Soviet Union. Once they bought (practically just received) the manufacturing rights and technology, accommodating the assault rifle regulating fever that swept the eastern block, they gave the manufacturing rights to FEG(which was a lamp factory back then), while the Danuvia weapon factory provided the milled receivers.
All of this happened while the army had reduced its numbers, and weapon factories started switching to manufacturing consumer goods (tools, scissors, lamps etc.) due to the reduced demand.