Business plan draft shows Dunaferr breaking even

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A draft of troubled steelmaker ISD Dunaferr’s business plan for this year shows the company breaking even at operating level, business news daily Világgazdaság reported today. The business plan shows a HUF 7 billion improvement in profit, targets CAPEX of HUF 10.2 billion.

Sales volume is set reach 1,608,000 tons. The business plan assumes GDP growth of 2%, an exchange rate of HUF 297 to €1 and “improved sales opportunities.”

Dunaferr announced in August 2013 that 1,500 of its 5,000 workers would be laid off, but later reduced this number to 400. Hungary’s government is reported to be in talks with ISD Dunaferr’s Russian owner, the state-owned Vnesheconombank, on acquiring the troubled company.

Dunaújváros mayor Gábor Cserna recently said the government had made a “concrete” offer for the company during Prime Minister Viktor Orbán’s official visit to Moscow earlier in January.

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