12 February 1998: Hungary“s Office of Fair Trading (GVH) recently gave the go-ahead to a merger between the Sajoszentpeter Glass Factory Rt and Oroshazi Glassware Manufacturing and Trading Kft. Orosh…
12 February 1998: Hungary“s Office of Fair Trading (GVH) recently gave the go-ahead to a merger between the Sajoszentpeter Glass Factory Rt and Oroshazi Glassware Manufacturing and Trading Kft. Oroshazi, owned by Owens Illinois of the United States, was expected to take possession of the Sajoszentpeter plant on 1 February. In 1997, Oroshazi controlled 39% of the Hungarian glassware market, while the Sajoszentpeter factory accounted for 28% and imports made up 29%. The merger will thus create a single dominant glassware producer with the remaining production shared by the Tokod and the Salgotarjan glass factories. As a result of the abolition of the import duty surcharge as of 30 June 1997, glassware imports doubled on the previous year to Ft 4 billion in 1997, with a larger share of the increase coming from the second half of the year. Both participants in the merger and the GVH expect the move to help the Hungarian glassware industry become more competitive than imports and increase its market share. Sajoszentpeter Glass Factory, which was earlier owned by Hungarian investors, had net sales revenue of Ft 4.5 billion last year, while Oroshazi, exclusively owned by Owens Illinois, had net sales of Ft 5 billion.