Furniture maker Nova Bútor Kft, owned by Austria's ADA group, plans to build an Ft 800 million mattress and mattress frame plant in the village of Nova, near Hungary's border with Austria, business daily Világgazdaság reported on Monday.
The additional capacity will help the company meet growing demand on the Austrian bedroom furniture market, managing director Krisztián Papp said. Part of the 8,700 square meter plant's costs was covered by a grant from the state's Economic Competitiveness Program (GVOP).
Nova Bútor could hire as many as 20 more staff when the plant is completed, bringing its total number of employees to more than 100. The plant is part of a larger development project, which included the construction of a Ft 500 million, 3,500 square meter mattress frame and varnishing plant in December 2005.
Most of Nova Bútor's products are exported, but the company's sales in Hungary could also increase as more Hungarians become willing to spend more on bedroom furniture, the paper said. Nova Bútor's biggest customers in Austria are home furnishings chains Kika, Leiner and Lutz.