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Vnesheconombank turns down offer to acquire Dunaferr

Pharma

Russia’s state-owned Vnesheconombank has turned down an offer by the Hungarian government to buy steelmaker ISD Dunaferr at talks on Thursday, daily Magyar Nemzet reported on Friday. National Economy Minister Mihály Varga told the paper Vnesheconombank would not sell ISD Dunaferr, without commenting further.

National Energy and Utilities Regulatory Office (MEKH) director Lajos Dorkota informed the 'paper that Vnesheconombank wanted to turn ISD Dunaferr into Central and Eastern Europe’s most competitive steelworks and had signed a contract on the renovation of one of its foundries.

The renovation will ensure 3,500 workplaces remain in Dunaújváros, Dorkota said.

State secretary for employment policy Sándor Czomba confirmed to national news service MTI on Friday that Vnesheconombank was not interested in selling ISD Dunaferr, but in the company’s long-term operation in Hungary. The Russian owner is considering investments that would support the output of products with high added value, Czomba said. 

Dunaferr said last August that it would lay off 1,500 of its 5,000 workers, but later reduced the number to 400.

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