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State gets 20% stake in Ózd Steelworks for EUR 30 mln

The state of Hungary has acquired a 20% stake in Ózd Steelworks (some 160 km northeast of the capital) from Germanyʼs Max Aicher group for a consideration of more than EUR 30 million, Minister for Innovation and Technology László Palkovics announced on Monday.

Image by Shestakov Dmytro/Shutterstock.com

Ózd Steelworksʼ majority owner is investing EUR 60 mln in the company to boost efficiency and broaden the production palette to include higher-quality, more complex output, Palkovics said.

The stateʼs acquisition of equity in the company ensures the security of the existing 500 jobs at Ózd Steelworks and could create more jobs, he added.

Palkovics noted that the steel industry is struggling with big challenges at present and needs to boost competitiveness. Much of the steel industryʼs business is done with construction industry companies which have orders worth HUF 25 trillion extending until 2023, he noted. It is important that these companies get their building materials from Hungarian factories, he added.

Max Aicher, the owner of the German company bearing his name, said he appreciated the governmentʼs cooperation and would seek to continue this cooperation in future.

Ózd Steelworks makes hot rolled reinforcing bars, round bars, wire-rods and welded meshes.