Austrian furniture company develops all of its three sites in Hungary

Austrian furniture company develops all of its three sites in Hungary

Péter Szijjártó, Minister of Foreign Affairs and Trade

The ADA Group is expanding its furniture manufacturing capacities in Western Hungary under a project that also includes technological developments and the construction of hall buildings. The Austrian company tries to meet continuously increasing demand with the more than EUR 17 million. The project implemented with the participation of the Hungarian Investment Promotion Agency (HIPA) will create 100 new jobs at the Körmend, Zalaegerszeg and Nova factories.

Representatives of the company and the government

Representatives of the company and the government

Founded in 1930, the Austrian parent company has grown into the largest furniture manufacturer in Austria over the decades, employing about 3,000 workers at the concern level. The Group, which currently has production capacities in Austria, Hungary and Romania, has a significant market share within the industry; it is market leader in Austria and its subsidiaries in Hungary also have significant positions in the domestic upholstered furniture market. Primarily Germany, Austria and Switzerland represent the buyer's market of ADA, so the ADA factories in Hungary also make 98% of their products for export.

ADA established the Körmend-based ADA Hungária Bútorgyártó Ltd. as its first foreign subsidiary in 1992, then NOVA BÚTOR Ltd. as its second foreign subsidiary, which operates at two locations, in Nova and Zalaegerszeg. ADA makes about 41,000 pieces of furniture in Hungary every year, which has made it one of the largest domestic furniture companies and the largest upholstered furniture manufacturer by now. Product development is also carried out at ADA Hungária and, with a smaller staff, at NOVA Bútor. The high value added research and development process begins with planning, which they bring into line with technical and electronics solutions, and finally series production may begin.

The project plans are in part construction designs and in part aim at the technological development of the machinery. As part of the complex project, first a hall building project will be carried out in Körmend, then one in Zalaegerszeg and the related equipment will be purchased. The hall building project will also allow ADA to meet the continuously increasing space requirements of its development centre in Hungary. The new machinery and the new technology will also be suitable for manufacturing newly developed products.