Forestry company Bakonyerdő Zrt will spend almost HUF 2 billion on developments over three years at its parquet floor factory in Zalahaláp (SW Hungary) including upgrading the plant's technology, Bakonyerdő Manager Gabor Várkonyi told MTI.
Várkonyi said the plant, the second biggest in the country, produces 600,000 sqms of parquet floor per year and will be transformed into the most modern factory of its kind in Hungary as a result of the developments.
Phase one of the investment will cost HUF 80 million. This will be followed by construction of a 700sqm surface treatment unit later this year.
The final phase of the investment will involve upgrading of the plant's pressing technology at a cost of HUF 1billion.
Production capacity will increase to 1.3 million sqms and the product range will be expanded.
The factory is market leader in domestic sales and exports 80% of its products to countries such as Ukraine, Poland, Lithuania, Italy and Austria.
Demand for the factory's products declined to a low of 320,000 sqm in 2009. This year, output is projected to increase to 600-630,000 sqm, and the plant has returned to full capacity, employing 170 workers.
Várkonyi said the plant is to be profitable again in 2011 after a long period of losses. Revenue rose to HUF 2.3 billion in 2010 from HUF 1.8 billion in 2009, and is projected at HUF 2.6 billion this year.