• Hungarian forint
  • Budapest
  • Police news
  • HelloMagyar
Will one of Hungary’s biggest industrial companies shut down within weeks?Will one of Hungary’s biggest industrial companies shut down within weeks?Will one of Hungary’s biggest industrial companies shut down within weeks?Will one of Hungary’s biggest industrial companies shut down within weeks?
  • Politics
  • Business
  • Society
  • Sport
  • Culture
  • Special Hungary
  • News To Go
  • World
  • Contact Us
  • About us
  • About us
  • Contact Us
  • Privacy Policy
✕
Important
  • Do you want to get Hungarian castles for free? New bill makes that possible

  • Brutal bomb attack in downtown Budapest, officers injured: VIDEO never seen before

  • PHOTOS: King Charles III arrived to his favourite Hungarian village!

Support us
Bíborka Prágai Bíborka Prágai · 19/09/2022
· Society

Will one of Hungary’s biggest industrial companies shut down within weeks?

Dunaferr vasmű dunaújváros

Dunaferr, photo: wikipedia, 12akd

Due to a lack of governmental aid, the biggest Hungarian ironworks could close down within weeks. This would indirectly affect tens of thousands of people’s jobs.

The company is currently providing jobs for roughly 4,500 employees, and tens of thousands more of those who are working for the group’s suppliers, subcontractors, and partners. Dunaferr intends to fulfill its contractual obligations and continue to employ its people, writes Index.

Started during socialism

The ironworks was founded in 1950, under the socialist regime, and the whole town of Dunaújváros was built around it. With the approach of the end of state socialism, they were already planning crisis management in the 1980s. Although the transition was not completely smooth, the company continued to operate. The state slowly backed out of the industry, and by 2010, there was partial privatisation.

Read also: Ukrainian mercenaries tried to take over the largest ironworks in Hungary and plan to return?

Mounting problems

Dunaferr started facing problems years ago, due to the impact of the COVID-19 pandemic and the increasing raw material prices. Following the pandemic, it only operated at 30-50 percent capacity, which was not profitable. Consequently, it went under supervision because of liquidity problems.

Now Dunaferr announced the situation had become untenable. After the shutdown of one blast furnace a few weeks ago the company was forced to shut down the other one as well. Their partner (Donau Brennstoffkontor GmbH (DBK)) unexpectedly refused coke delivery, causing further problems. DBK must start delivering the required amount of coke within a week. Otherwise, the company cannot keep operating.

Whether Dunaferr will continue to operate and provide jobs to all its employees and partners, will be decided in a week. It depends on DBK and the government’s decision on interfering.

Read also: Romania will save Hungary from the energy crisis?

Source: Index

If you would like to support the work of the Daily News Hungary staff and independent journalism,
please make a donation here
economic crisis in Hungary economy energy crisis in Hungary Hungarian economy Hungary
Share

Hot news

  • Government: Hungarian nation has no boundaries

  • What happened today in Hungary? – 4 June, 2023

  • The number of Hungarians has decreased shockingly since the Peace Treaty of Trianon

  • Batumi, the four-season Georgian tourist destination, presented in Budapest

  • Reserve your seat on trains to Lake Balaton with the help of an innovation now!

  • PM Orbán under harsh attack for his pro-peace program

Related posts

Railway Hungary trains delay
04/06/2023

Reserve your seat on trains to Lake Balaton with the help of an innovation now!


Read more
SZIN
04/06/2023

Festival prices skyrocketing in Hungary


Read more
Balaton beach free
04/06/2023

Astonishing free beaches in Hungary


Read more
Szekler Gate Sokorópátka
04/06/2023

PHOTOS: The world’s biggest Szekler Gate inaugurated in Sokorópátka


Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

SUPPORT US
  • Facebook
  • Twitter
  • Instagram

Must read

Subscribe to our newsletter

Sign up to receive daily updates, news & stories about Hungary!

Select your location below or enter your country so we can deliver our morning newsletters to you in time.


Thank you!

You have successfully joined our subscriber list.


.

About us

Contact us

Copyright rules

Privacy policy

Advertise with us

© 2023 DailyNewsHungary. All rights reserved! | Server and development by Svigelj Levente E.V
Government: Hungarian nation has no boundaries

Government: Hungarian nation has no boundaries

Read More
What happened today in Hungary? – 4 June, 2023

What happened today in Hungary? – 4 June, 2023

Read More
The number of Hungarians has decreased shockingly since the Peace Treaty of Trianon

The number of Hungarians has decreased shockingly since the Peace Treaty of Trianon

Read More
Batumi, the four-season Georgian tourist destination, presented in Budapest

Batumi, the four-season Georgian tourist destination, presented in Budapest

Read More
Reserve your seat on trains to Lake Balaton with the help of an innovation now!

Reserve your seat on trains to Lake Balaton with the help of an innovation now!

Read More
PM Orbán under harsh attack for his pro-peace program

PM Orbán under harsh attack for his pro-peace program

Read More
Crossing the Hungarian-Croatian, Hungarian-Serbian borders changes fundamentally

Crossing the Hungarian-Croatian, Hungarian-Serbian borders changes fundamentally

Read More
<b> Foreign investors love Hungary! </b>

Foreign investors love Hungary!

Read More
Do you want to get Hungarian castles for free? New bill makes that possible

Do you want to get Hungarian castles for free? New bill makes that possible

Read More
PHOTOS: Danube Day organised in the picturesque heart of Transylvania

PHOTOS: Danube Day organised in the picturesque heart of Transylvania

Read More
  • 0
  • 1
  • 2
  • 3
  • 4
Have you read it?