Swiss-Hungarian businessman Bahcar Najari acquired a 74.5% ownership share in Zsolnay Porcelánmanufaktúra Zrt, after the agreement relating to the transfer of shares was signed in Pécs on Friday.

The Syrian-born entrepreneur, who trades in luxury watches, is to pay HUF 180 million to the City of Pécs and provide a capital injection of HUF 500 million to the factory. The minority share and voting preferred stock will remain with the asset management company and the local government, respectively.

The Ministry of Rural Development's Parliamentary State Secretary Gyula Budai stressed that the sale is a prime example of the fact that time-honoured Hungarian products and companies that count as Hungaricums can be saved if a settlement and its community steward them well. Mr. Budai expressed his hope that cooperation on the part of the local government would be successful so that the reputation of the Zsolnay factory, which is acknowledged both at home an abroad, might improve further.

At the transfer ceremony, which was also attended by diplomatic representatives from several Arab countries, the State Secretary stated that the change in Zsolnay's ownership structure and the investors plans with the factory are coherent with Hungary's policy of opening towards the east. He noted that this policy had been launched by the Government in 2010 to regain eastern markets that had been lost after the fall of communism. Mr. Budai said that the results of the Government's effort are already showing. As examples he mentioned the fact that Szentkirályi mineral water is now being shipped to Saudi Arabia and marketed in large quantities, as well as the recently held Hungarian-Arab business forum, whose participants showed heightened interest in Hungary.

Mayor of Pécs Zsolt Páva told the press that the local government had endeavoured to reinforce the Zsolnay brand over the past 4-5 years through the establishment of the Zsolnay cultural quarter and the restoration of the Zsolnay mausoleum, but had not succeeded in guaranteeing the future of the factory to a reassuring extent. Mr. Páva stressed that he hoped the Zsolnay trademark would soon regain its former glory and that the City would support the investor in this endeavour.

Bachar Najari, who graduated as an architect in Budapest, has been living in Hungary for over three decades and speaks excellent Hungarian, spoke of the fact that his primary goal is to regain Zsolnay porcelain's former rank. The factory must survive, and its preservation sends a message to the world that Hungary respects and preserves its values.

He also mentioned that because he had often had problems in acquiring gifts for his business partners, he had been thinking of becoming involved in the production of Hungaricum products for some time, and the purchase of the Zsolnay shares was an excellent opportunity to make this a reality.

In representation of Arab diplomats accredited to Hungary, Palestinian Ambassador Ahmad Abdelrazek expressed his joy regarding the fact that the acquisition of the Zsolnay shares means that "an Arab investor launches another success story", and also stated that he and his diplomat colleagues encourage Arab investors to come to Hungary. Mr. Abdelrazek also mentioned that the success of the factory is also linked to the fact that it also utilised old Islamic technology, which is a good example of the traditionally excellent relations between the Islamic world and Hungary.

Zsolnay, which employs some 200 people, is currently experiencing financial difficulties. It closed 2011 with HUF 840 million in turnover and losses of HUF 282 million, while its balance for 2012 is expected to include a loss of HUF 270 million with revenues of HUF 602 million.

(MTI)