HUNGARY GOVERMENT TO BUY BACK DUNAFERR STEEL PLANT

Hungary goverment expressed the intention to buy back the steel plant DUNAFERR in order to safe 1.500 job losses. DUNAFERR was sold in 2004 to the Ucranian ISD company: Reported losses are over 222 M$ in the last two years.

European steel production capacity is over demand and no goverment wants to accept steel plant closures due to the strategic importance and social impact of this activity.

¿Buying back steel plants is the right approach to cope with European steel production overcapacity?. Definetely No, in our opinion. Fight unfair competition, v.g., introducing import taxes to manufactured products produced under social dumping conditions overseas Europe will be more effective and fair. This measure, in combination with productivity improvement plans could contribute to the European Industrial Revamping.