Bakery sector producer Zalaco triples capacity

A significant player in Hungarian food industry, the Western Hungarian company of Zalaco expands with greenfield investment in Zalaegerszeg. Having plants in Ajka and Sopron, too, this company is an important representative of the domestic bakery sector as it produces several hundred types of products and more than 100 million product items altogether every year, reaching both the Hungarian and the regional markets. As a result of this investment, 150 new jobs are to be created in the county town of Zala.

Founded a decade ago, Zalaco's principal activity is the manufacturing of bread and fresh bakery products. Their product range is unique in Hungary as they distribute almost 400 bakery and confectionery products. In Zalaco's plant, 7 million kg bread is baked and 50 million croissants and rolls and 40 million pastry products are produced every year. Besides, a significant quantity of cakes and confectionery products are produced as well. The company established a new production complex in Zalaegerszeg in 2014, creating 51 jobs with this investment. In the next year, the company opened its Ajka and Sopron plants. In 2017, the price revenue of the company is likely to have reached HUF 7 billion and they employed 515 persons according to recent data.

According to the Hungarian Investment Promotion Agency (HIPA), this significant extension was justified by limited production and storage capacities since the company distributes its products through its own retail network and reseller food chains (e.g., Lidl) as well. As a result of the greenfield project of EUR 13 billion, Zalaco builds a 150-sqm storage hall, and a 2,500-sqm new production floor. It means that the company triples its production capacity in Zalaegerszeg, extending its capacities for the manufacturing of pastry, bread and frozen pastry, in order to reliably satisfy the increased demand on the long-term.

HIPA says the whole food industry in Hungary is developing and strengthening dynamically which is well illustrated by the fact that the production value kept on growing in recent years to exceed HUF 3,000 billion in 2017 which is a 6% increase compared to 2016.