“One of the most determinative companies of Hungarian industrial production is Dunaferr, which has undertaken a definitive role in the realisation of the Government’s industrialisation programme, through which Hungarian industrial production has increased by 24.3 percent during the past six years and was 9.7 percent higher in May than one year earlier”, Minister of Foreign Affairs and Trade Péter Szijjártó said at the inauguration ceremony of ISD Dunaferr’s modernised blast furnace in Dunaújváros.
“Only those (countries) who have a strong industry can remain strong and competitive in Europe today. This is why in 2010 the Government decided to provide the competitiveness of the Hungarian economy with strong foundations through the country’s reindustrialisation”, Mr. Szijjártó stressed.
“The investment is expected to enable the company to undertake smaller orders in future and lead to a significant improvement in the quality of the products manufactured. The goal is the annual manufacturing of two million tons of products”, Corporate Manager Evgeny Tankhilevich said. The company currently manufactures 1.7 million tons of products-a-year.
“Returning the Dunaújváros steel producer to its former glory requires the realisation of development projects that enable the Fejér Country company group to fulfil the challenges of the modern age”, Mr. Szijjártó noted.
“Dunaferr also plays an important role in the automotive industry, which can be regarded as the backbone of the Hungarian economy, and is becoming an increasingly important supplier. The automotive industry, which fundamentally determine the role of the Hungarian economy, is counting to an increasing extent on the products and raw materials produced by Dunaferr. The lifespan of the modernised furnace put into operation today is 12 years, which provides an opportunity for the long-term servicing of the automotive industry”, he stressed.
“In addition, the Government is also counting on the work of Dunaferr with relation to the expansion of the Paks Nuclear Power Plant. The construction of the Plant’s two new blocks will require half a million tons of rolled steel, which will be manufactured by the Duanújváros company”, the Minister said. Mr. Tankhilevich also told the press that the next phase of investment would involve the modernisation of the company’s hot rolling mill; Dunaferr provides jobs to 5361 people in Dunaújváros and provides a living for some 12 thousand people if we include suppliers.
Company officials refrained from providing information on the cost of the project or whether state funding had contributed to the investment.
According to the latest public company data, in 2014 Dunaferr achieved domestic revenues of 88 billion forints (EUR 281M) and 174 billion forints (EUR 556M) in export revenues. Total revenues of 262 billion forints decreased somewhat from the previous year’s figure of 271 billion. The company reported post tax losses of 21 billion forints in both years.