Government Rescues Troubled Industrial Giant
The Hungarian government has successfully saved Dunaferr, the largest metallurgical-engineering complex in the country, with the active involvement of the Ministry of Economic Development. According to a statement from the Ministry, Dunaferr was facing insolvency at the end of 2022 due to the irresponsibility of foreign management, misguided sanctions, and the energy crisis, which jeopardized the jobs of thousands of workers. However, through various measures such as drafting legislation and establishing coordination between the parties, the Ministry contributed to the rescue of the plant.
In December 2022, Dunaferr was put into liquidation, creating the legal framework necessary for its survival. Over the past seven months, the government, the liquidator, the region’s MP Lajos Mészáros, and Dunaferr’s employees have made extraordinary efforts to save the plant. Measures such as the establishment of a wage labor scheme and the provision of government aid to pay the wages of over 4,000 workers have helped keep Dunaferr afloat.
In a recent sale, Liberty Steel, which had previously assisted the plant in December, submitted a winning bid for the assets needed for steel production. This successful sale marks an important milestone, but the government acknowledges that there is still work to be done. The government is committed to a green transition in the steel industry and aims to reorganize the plant’s operations, introduce modern technology, and produce higher value-added and environmentally friendly products.
The Ministry, on behalf of the government, will continue to fight for the protection of the factory, jobs, and families, and ensure that no bureaucratic obstacles hinder Dunaferr’s rescue and revitalization.
It is evident that the government recognizes the importance of Dunaferr in Hungarian industry and employment, as well as the strategic significance of the steel industry. With its active involvement, the government has taken steps to save the plant and ensure its future success.
