Furniture manufacturing group Ada to expand its Hungarian production capacity

“Austrian-owned furniture manufacturing group Ada is expanding its Hungarian production capacity with an investment of 5.2 billion forints (EUR 16.8 million), towards which the Hungarian Government is providing one billion forints in non-returnable funding, 20 percent of the total cost of the project”, Minister of Foreign Affairs and Trade Péter Szijjártó announced.

“Ada Hungária Ltd. and Nova Furniture Ltd. are expanding all three of their facilities in Hungary in Körmend, Zalaegerszeg and Nova, creating 100 new jobs”, he told reporters.

“Three out of the five plants owned by Austria’s largest furniture manufacturing company are in Hungary, and the number of people currently employed by the company will be increasing by 100 to 1,460”, the Minister continued.

“This latest investment by Ada with further increase Hungary’s export performance”, he added.

“More and more sectors of industry are investing in Hungary, which has one of the most favourable investment environments in Europe thanks to the fact that we have the lowest levels of income tax and corporation tax within the European Union”, Mr. Szijjártó highlighted.

The Foreign Minister stressed that last year a record number of 96 foreign investments were made in Hungary via the investment promotion system, following 71 in the previous year.

In Hungary, the furniture manufacturing sectors generated 180 billion forints (EUR 580 million) in production value last year, a year-on-year increase of 6 percent; the sector provides jobs for 15 thousand people and an average of 63 percent of the goods it manufactures go to export, he explained.

However, Mr. Szijjártó also indicated that last year’s record low level of Hungarian unemployment represents a new challenge, and the crucial requirement for the further promotion of investment is the availability of a suitably trained workforce.

“For this reason, the Government had decided to increase the benefits and tax allowances relating to accommodation provided by employers, thus facilitating workforce mobility from regions where the level of unemployment is still higher than average”, he recalled, adding that in addition, a 5 billion forint (EUR 16.2 million) fund has been opened for local authorities to construct workers’ hostels.