Pék -Snack Kft has completed a HUF 700 million development to increase capacity and update production at its plant in Igal (SW Hungary) as the last phase of the project, a HUF 220 million investment was inaugurated on Wednesday.
The latter development was part-financed from European Union grants of a combined HUF 133 million.
Pék -Snack, which was earlier part of the Fornetti franchise network, has started distributing its products under its own brand name since March this year. Currently, they supply frozen baked goods to more than 700 Hungarian and close to 500 Croatian franchise partners.
As part of the project started last year, production technology was upgraded, production became computer-controlled and an integrated business management system was implemented. As a result of the capacity increase, the builder of the Pék -Snack network now directly employs more than 200 workers in Hungary.
MTI reported in February that Fornetti Europa Kft as the exclusive beneficiary of the Fornetti franchise rights and know-how terminated its agreement with its Igal partner at the end of December 2010 citing quality problems.
János Galántai, managing director of Pék -Snack Kft, formerly called Fornetti Pannon Kft, then told MTI that its former partner was setting unacceptable conditions and they have managed to keep most of their former partners.