EMCC European Monitoring Centre on Change

Zalaco Sütőipari

Zalaco Sütőipari

Geographic Location

Country: Hungary
Region: Zala; Nyugat-Dunantul; Dunantul
Location of affected unit(s): Zalaegerszeg


Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
10.7 - Manufacture of bakery and farinaceous products
Number Employed: 600

Employment Effects

Announcement Date: 16-09-2019
Type of Restructuring: Business expansion
Employment Effect Start: 31-12-2019
Foreseen End Date: 31-12-2020
Planned Job Creation: 150

Additional Information

Bakery products manufacturing company Zalaco launched its new plant in Zalaegerszeg. The investment cost HUF 4 billion (€12 million), of which HUF 836 million (€2.51) was subsidised by the government. The new plant is going to produce frozen and packaged bakery products and confectioneries. Demand for these products has increased substantially in the last couple of years. According to reports, the investment is expected to create 150 new job positions in the new site by 2020. The company said that the plant is in the test trial phase and that actual production is planned to start at the end of 2019.

The company has a strong presence in Western Hungary, except for Pest county and Budapest. Its export volume has been quite limited so far, due to capacity constraints. There is hope that, with the new plant, the company can export to Austria, Slovakia, Croatia and Serbia.