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Parliament restores 25% state ownership in Herendi

Hungary’s parliament on Monday approved an amendment to the country's state-property law reinstating the state's direct, long-term ownership of a 25% stake in renowned porcelain maker Herendi.

Parliament approved the amendment by a vote of 331 in favor, none against and one abstention. Herendi’s 900 employees and management own the remaining 75% of the company.

Hungary's previous government withdrew the state's 25% direct, long-term ownership in Herendi, transferring the stake to the state-owned Regional Development Holding (RFH).

Hungary's governing Fidesz party submitted the amendment bill, which stated that Herendi is a "Hungarikum"- something unique to Hungary or Hungarian culture - that must be preserved for future generations of Hungarians.

The 185-year-old Herend-based company specializes in the manufacture of premium, hand-painted and gilded porcelain, exporting to 60 countries throughout the world, mainly to the USA, Japan, Italy and the United Kingdom.

Herendi generated revenue of close to HUF 5 billion in 2010, up nearly 10% yr/yr, posting profit of around HUF 600 million last year.