diff --git a/package/confd/confd.mk b/package/confd/confd.mk
index d47a7ee6..f707dfae 100644
--- a/package/confd/confd.mk
+++ b/package/confd/confd.mk
@@ -15,6 +15,8 @@ define CONFD_INSTALL_EXTRA
 	cp $(CONFD_PKGDIR)/sysrepo.conf  $(FINIT_D)/available/
 	ln -sf ../available/sysrepo.conf $(FINIT_D)/enabled/sysrepo.conf
 	cp $(CONFD_PKGDIR)/tmpfiles.conf $(TARGET_DIR)/etc/tmpfiles.d/confd.conf
+	mkdir -p $(TARGET_DIR)/usr/share/factory/cfg
+	cp $(CONFD_PKGDIR)/factory.cfg   $(TARGET_DIR)/usr/share/factory/cfg/startup-config.cfg
 	mkdir -p $(TARGET_DIR)/lib/infix
 	cp $(CONFD_PKGDIR)/prep-db       $(TARGET_DIR)/lib/infix/
 	cp $(CONFD_PKGDIR)/clean-etc     $(TARGET_DIR)/lib/infix/
diff --git a/package/confd/factory.cfg b/package/confd/factory.cfg
new file mode 100644
index 00000000..8711e168
--- /dev/null
+++ b/package/confd/factory.cfg
@@ -0,0 +1,5 @@
+{
+  "ietf-system:system": {
+    "hostname": "default"
+  }
+}
diff --git a/package/confd/tmpfiles.conf b/package/confd/tmpfiles.conf
index 504121c4..58cf1038 100644
--- a/package/confd/tmpfiles.conf
+++ b/package/confd/tmpfiles.conf
@@ -1 +1,2 @@
 d  /run/resolvconf/interfaces	- - -
+C  /cfg/startup-config.cfg	- - -