Local assembly rejects referendum on tyre recycling plant after company scraps project

Budapest, August 29 (MTI) – The city assembly of Kaposvár, in southwest Hungary, on Monday rejected an initiative to hold a referendum on plans to build a tyre recycling plant in the city on the grounds that holding one had become devoid of purpose after the project was scrapped.

Homatech Recycling cancelled the project last month because of support for holding a referendum on the investment.

The referendum was initiated by Attila Pintér, the head of the Socialist Party’s local chapter.

Kaposvár Mayor Károly Szita said in July that Homatech CEO Gábor István had signed an agreement cancelling the sale of a parcel of land on which to build the plant.

Homatech announced plans to build the 16 billion forint (EUR 51.8m) plant in Szazhalombatta, near Budapest, last November, but started looking for a new location because of opposition by local residents and the municipal council. Kaposvár was announced as the new location for the project in April.

Homatech Recycling is majority-owned by Bonitas 2002 Befektetési, a holding of food industry magnate and OTP Bank chief Sándor Csányi.

Source: MTI