By Liz White, UT contributing editorMiddleton, UK-British Vita plc has announced that it has gained the necessary government approvals to build a production and conversion facility for flexible polyurethane foam in South-west Hungary. Investment at what Vita calls the 'strategic' greenfield site, close to the town of Paks, will amount to £5.4 million (€7.9 million).
The UK flexible foamer's continuing success in central and East Europe has fuelled this further significant investment in a new production facility, according to David Campbell, chief executive.
Vita will install state-of-the-art equipment at the site, which it said has "excellent communications links with the rapidly growing furniture and bedding manufacturing markets of Hungary, Romania and the Balkans."
Expansion of these markets has followed recent major investments by Western furniture manufacturers in the region, a Vita statement commented.
The plant will be commissioned in the second half of 2004 and production is planned to come on stream at the end of the year.
Vita first flagged its intention to build plants in Central & Eastern Europe 11 years ago, since when, "Vita Polymers Poland, Vita Baltic in Lithuania and their sister companies have grown to become well-respected market leaders in producing quality products for their ever-expanding customer base," said Campbell, in a statement about the new facility.
"We plan to continue to be a major partner in this expansion and supply the full range of foam products needed for the markets in Hungary, Romania and the Balkans," the Vita boss continued.