Újpesti Cérnagyár
Hungarian thread manufacturer founded in 1923 as a British-owned Coats subsidiary, nationalized in 1949, reacquired by Coats in 1990, and closed in 2007 when production moved to Romania.
Last updated September 27, 2026
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Overview
Újpesti Cérnagyár (Újpest Thread Factory) was a Hungarian thread manufacturing company with roots going back to 1923, when it was established as the Angol-Magyar Cérnagyár Rt. (Anglo-Hungarian Thread Factory) with 100% British ownership under the J. and P. Coats Ltd. consortium of Glasgow. The factory, built on land along the Danube in Újpest at what is now Külső Váci út 91, began construction in 1924 and was inaugurated on 22 April 1926, already operating at full capacity with 800 workers. It produced sewing and handwork threads, primarily from Egyptian cotton, and sold its output entirely on the domestic Hungarian market. During World War II the British owners left Hungary, and in 1942 the company was renamed Első Magyar Cérnagyár Rt. The factory survived the war without damage, though in December 1944 German forces planned to blow up its chimney to block the Váci road against the advancing Red Army but ran out of time. After the war, production resumed under Soviet and then British contract work, and the Scottish owners returned in November 1945. On 28 December 1949 the company was nationalized and took the name Újpesti Cérnagyár, employing 1,200 people at the time. In 1963 it was merged into the Pamutfonóipari Vállalat (Cotton Spinning Company), and between 1963 and 1966 significant investment modernized its machinery and infrastructure, boosting production and exports to the Middle East, the Americas, and India. The 1969 textile reconstruction brought new technologies including synthetic-fiber sewing threads. After the 1989 political changes, the Pamutfonóipari Vállalat became a joint-stock company in 1992, and privatization followed in 1995–1996. However, the Újpesti Cérnagyár had already been bought back by its former owner Coats in 1990, continuing operations as Coats Magyarország Kft. (Coats Magyarország Cérnagyártó és Értékesítő Kft.), a key subsidiary within the global Coats network. The Hungarian subsidiary also acquired the Nagyatád plant. In the 2000s, rising costs created economic difficulties, and by 2007 the company closed its Hungarian plants and relocated production to Romania. The Coats Magyarország Kft. entity continued as a sales and distribution operation, offering 100% polyester sewing and embroidery threads (Astra, Epic, Gral, Gramax), special threads (Barbour), OPTI zippers, and FIOCCHI fasteners, metal buttons, interlinings, and hook-and-loop tapes, serving the apparel, leather, and footwear industries.
History
The predecessor of Újpesti Cérnagyár was founded in 1923 as a British-owned company. In 1922, the Hungarian Minister of Trade initiated negotiations with the leadership of the international consortium led by J. and P. Coats Ltd. (Glasgow) to establish a thread factory in Hungary. To encourage the investment, the new venture was offered 15 years of tax exemption, 25–35% tariff protection, and duty-free cotton imports. Low Hungarian textile wages were attractive to the Scottish company. At that time, only one thread factory operated in Hungary, in Nagyatád, as a subsidiary of the Austrian Mez Rt. The company, named Angol-Magyar Cérnagyár Rt., was established in 1923 with 100% British ownership. Construction on a 25,400-square-fathom site along the Danube, part of Count László Károlyi's Káposztásmegyer estate, began in 1924 and was completed by 1926 at today's Külső Váci út 91 in Újpest. The new factory was inaugurated on 22 April 1926, already operating at full capacity with 800 workers. Bodó Albert, director of the Pozsonyi Cérnagyár Rt. (founded 1901, also part of the Coats consortium), was entrusted with directing the construction. Equipment was brought from other consortium factories. A full vertical operation was established: cotton spinning, winding, throwing, bleaching, and dyeing departments. Egyptian cotton was mainly used. Products (sewing and handwork threads) were sold entirely on the domestic market. In 1932 the company established a joint commercial office with Mez Rt., and in 1934 the Coats consortium also purchased Mez Rt., where significant modernization and production expansion were carried out. When Hungary entered the war in 1941, the British owners and their specialists left the country. In 1942 the factory was renamed Első Magyar Cérnagyár Rt. During the war the company engaged in military production. The factory fortunately suffered no damage from combat, but in December 1944 the Germans wanted to blow up the factory chimney to block the Váci road with its ruins against the advancing Red Army, but they ran out of time. Újpest was liberated on 10 January 1945, and from then until the British owners returned, a Soviet military commander directed the factory. The icy Danube flood in the winter of 1945 caused major damage to the factory. When production could restart, the factory struggled with raw material shortages. This was solved by contract work for the Soviet Union—characteristic of the entire Hungarian textile industry at the time: raw material was supplied by the Soviet Union, but finished products had to be shipped back there. In November 1945 the Scottish owners returned and took over management again. Production continued based on Soviet and then British contract orders. On 28 December 1949 the company was nationalized and took the name Újpesti Cérnagyár. At that time 1,200 people worked in the factory. In parallel, the Nagyatád factory was also nationalized and made independent, operating as Nagyatádi Kézimunkafonal Gyár until 1953, when it was again attached to Újpesti Cérnagyár. The new state company's work was made difficult by the fact that production had previously been directed from Glasgow, where the technology was developed and everything was prescribed down to the smallest detail, without transferring production secrets. The new management therefore had to "relearn" all the tricks of production. Over the years, however, production was significantly developed, and in 1960 the reconstruction of the Nagyatád plant began with Hungarian-made ring-threading machines. On 1 July 1963, industry leadership created the Pamutfonóipari Vállalat (PFV), combining the Lőrinci, Miskolci, and Kaposvári spinning mills with Újpesti Cérnagyár and its Nagyatád plant. The aim of the merger was to concentrate material and intellectual resources. Between 1963 and 1966, PFV spent a then very large sum of 57 million forints on modernizing the machinery and infrastructure of Újpesti Cérnagyár and the Nagyatád plant. As a result, production and export activity increased significantly, with exports to the Middle East, North and South America, India, etc. playing a major role. Investments begun in 1969 during the so-called textile industry reconstruction enabled significant modernization of production and the introduction of new technologies (e.g., synthetic-fiber sewing threads) in thread manufacturing as well. The political changes beginning in 1989 brought major changes to Hungarian textile industry. Among others, Pamutfonóipari Vállalat, together with its constituent companies, was transformed into a joint-stock company in 1992, with the State Property Agency (ÁVÜ) holding 75.9%. Its privatization as a single unit was hopeless, so the State Property Agency decided on privatization plant by plant. This took place in 1995–1996. However, Újpesti Cérnagyár had already been bought back by its former owner, Coats, in 1990, and thus could continue its original activity, naturally at a much higher level than before, producing and marketing the most modern products. Coats has factories in many countries, and among them the Újpest-based Coats Magyarország Kft. (full name: Coats Magyarország Cérnagyártó és Értékesítő Kft.) played a very important role. The Hungarian subsidiary also purchased the Nagyatád factory, which is also part of the company. Unfortunately, in the 2000s, due to continuously rising costs, the company had to struggle with economic difficulties. By 2007, the company closed its Hungarian plants and relocated to Romania. The Coats Magyarország Kft. entity continued as a sales and distribution operation, offering 100% polyester sewing and embroidery threads (Astra, Epic, Gral, Gramax), special threads (Barbour), OPTI zippers, and FIOCCHI fasteners, metal buttons, interlinings, and hook-and-loop tapes, serving the apparel, leather, and footwear industries.
- 2007
Coats Magyarország Kft. closes Hungarian plants and relocates production to Romania.
- 1995
Plant-by-plant privatization of PFV companies begins.
- 1992
Pamutfonóipari Vállalat becomes a joint-stock company with ÁVÜ holding 75.9%.
- 1990
Coats buys back Újpesti Cérnagyár from the state.
- 1969
Textile industry reconstruction begins, introducing synthetic-fiber sewing threads.
- 1966
PFV completes 57 million forint modernization of Újpest and Nagyatád plants.
- 1963
Merged into Pamutfonóipari Vállalat (PFV) on 1 July.
- 1960
Reconstruction of Nagyatád plant begins with Hungarian-made ring-threading machines.
- 1953
Nagyatád factory reattached to Újpesti Cérnagyár.
- 1949
Company nationalized on 28 December and renamed Újpesti Cérnagyár; 1,200 employees.
Products and positioning
Industrial thread and haberdashery supplier for the apparel, leather, and footwear industries, operating as a local subsidiary of the global Coats group.
Astra sewing thread
100% polyester industrial sewing thread.
Epic sewing thread
100% polyester industrial sewing thread.
Gral sewing thread
100% polyester industrial sewing thread.
Gramax sewing thread
100% polyester industrial sewing thread.
Barbour specialty threads
Specialty threads for industrial use.
OPTI zippers
Zippers including flame-resistant and concealed types.
FIOCCHI fasteners and haberdashery
Metal buttons, interlinings, hook-and-loop tapes, and other haberdashery.
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