Hungary's BorsodChem defers TDI expansion plans; suspends previously announced job cuts

BorsodChem, leading Hungarian producer of plastic raw materials and isocyanates, will defer its planned 200,000 tpa TDI expansion for 2009 by at least an year due to the provisional weakness in markets, the company said in a press release. In the past three years, the company has been implementing its long-term strategy, which aims to elevate the company from a regional onto a leading European level. This includes a strong focus on isocyanates, namely MDI and TDI, in its product portfolio. Also, the company recently announced suspension of its workforce reduction plans which had earlier been an integral part of the company's ongoing restructuring programme and had seemed unavoidable. This decision was a result of the agreement between the Hungarian government and BorsodChem which was mediated by the local government of Kazincbarcika, a Noarth Hungary based city where the company is located. The uncertainties regarding Hungary's energy regulation, the increased demand for electricity in Central and Eastern Europe coupled with insufficient generator capacities have lead to soaring electricity prices and BorsodChem's competitive advantage has significantly decreased in comparison with other European and Asian producers. Furthermore, the surfacing global economic crisis has drastically reduced demand for both TDI and MDI, which are mainly used in the weakening automotive, furniture and construction industries. The drop in demand for BorsodChem's key products has entailed a serious decline in prices and a consequent deterioration in BorsodChem's financial performance.
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Milacron 450 ton electric injection molding machine

Milacron 450 ton electric injection molding machine