Hungarian steel mill halts production – EURACTIV.com

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Dunaferr Steelworks, one of Hungary’s largest industrial manufacturing companies, has been forced to halt production, the company said on Saturday.

“The situation in Dunaferr has become untenable”, and after the closure of a blast furnace a few weeks ago, the group based in Dunaújváros was forced on September 16 to close the other, which “could have fatal consequences for one of the largest industrial companies,” according to the company, Telex reported.

The company said the immediate reason for the closure is the unexpected refusal of Austrian company Donau Brennstoffkontor GmbH, their partner for decades, to supply essential raw coke.

“The forced shutdown now means that there is currently no possibility of pig iron and steel production at Dunaferr,” the statement read.

The company said its only chance of survival was to maintain production and quickly restart the blast furnaces “because a longer shutdown would make Dunaferr’s operations impossible, mainly due to technical risks and restart costs.” The only possible solution is for DBK to restart the supply of the necessary quantity and quality of coke within a week at the latest,” they say.

The company directly employs 4,500 people.

Dunaferr has been in shock for a long time; the coronavirus epidemic, followed by the Russian-Ukrainian war, and the energy crisis have all “put Dunaferr in a situation that the group alone is not able to cope with”, the company said, calling for the state intervention.


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