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Zsolnay, Herend to merge

Key players on the Hungarian porcelain industry will merge to face market challenges. The proposal drawn up by Pécs-based Zsolnay Rt and Herendi Porcelain Manufacturers Rt has already been submitted to privatization authority ÁPV Rt, Gyula Kovács CEO of Zsolnay Rt. told NAPI Gazdaság. The merger will take place gradually, first the companies will agree and cooperate on marketing activities and procurement. Then they will merge into a new company having various production sites all over the country. Both brand names will be kept. Zsolnay expects to face a deficit at the end of year despit the fact that Cerind Kft, their bankrupt tenant in industrial porcalain factory hall owes them over Ft 520 million. Zsolnay may be privatized as early as this year. The municipalirty of Pécs has always been a potential buyer of the company. (NG 1, 4)