Ikea to buy chinaware in Hungary, company says

Ikea to buy chinaware in Hungary, company says Budapest - A venerable Hungarian porcelain factory said Wednesday it has landed an order to make china tableware for Swedish home furnishing retailer Ikea.

Zsolnay Porcelanmanufaktura expects to sign a seven-year deal shortly to supply 5,000 tons of china a year for Ikea starting in September 2009, the MTI news agency reported.

While Zsolnay would be one of about 1,300 Ikea suppliers, the contract would be a lifeline for the loss-making 156-year-old company.

The contract is expected to triple Zsolnay's sales of 1.1 billion forints (6.4 million dollars), chief executive Katalin Peter Marosy told MTI.

A spokeswoman at Ikea's Swedish headquarters, Charlotte Lindgren, said the company generally does not comment on its suppliers.

Zsolnay, aided by the Hungarian government, plans to build a new manufacturing facility at its site in the city of Pecs to boost production, Marosy said.

The city currently owns the company, which employs about 300 people. (dpa)

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