Austrian company Inost Holding plans to convert its shoe factory in Körmend, southwest Hungary into a spa, health center and hotel at a cost of more than Ft 1 billion, business daily Napi Gazdaság reported on Wednesday.
Inost Holding shut down the plant earlier after it became loss-making. Olip Hungary Kft, a new company set up by Inost at the end of March, has already started demolishing buildings at the site, but officials from the company declined to offer any further details about the plans until the necessary permits for construction are obtained.
The shoe factory started operating in 1992 and employed hundreds of people at the end of the 90s, but production stopped two years ago. Inost had another shoe plant in Hungary at Martfű, which was also shut down.