DÜFA Hungária Kft, the Hungarian unit of German paint company Meffert, is building a Ft 500 million paint factory in Rétság, north of Budapest, and expects to start production this summer, DÜFA managing director József Hosszú announced on Saturday. DÜFA was set up as Meffert's exclusive distributor in Hungary in 1993, but it has so far operated only as a wholesaler. With the completion of the factory, which includes 800 square meters of production space and 1,500 square meters of warehouse space, DÜFA will start making water-based interior paint and plaster. Test production will begin in August, and the factory is expected to be at full capacity by the end of 2006. DÜFA will produce not only for the Hungarian market, but for Meffert's other foreign units as well, Hosszú said. DÜFA will hire a further 19 workers to staff the production facility, adding to its current number of 20 employees, Hosszú said.