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Dunaferr on right track to achieve production plans

Telco

Hungarian steel maker ISD Dunaferr, which has been struggling for a long time to become profitable, recently reported that it reached 48% of its full-year target by the end of June, business daily Világgazdaság wrote on Thursday.

Dunaújváros-based Dunaferr, one of the largest industrial producers in Hungary, had a long struggle up until 2015, the first year it was profitable since 2008. The company closed 2015 with revenues of HUF 272 billion and EBITDA of HUF 2.8 bln.

Earnings for 2016 have not yet been made public, with the only figures available being the forecast of EBITDA of HUF 5.8 bln on revenues of HUF 315 bln.

If we look at the production plan for this year, the outlook is optimistic, as Dunaferr produced 769,676 tons of steel in the first half, only 200 tons behind the forecast amount. To meet the full-year production target, Dunaferr took very strict measures, including a bonus system linked not only to boosting output, but to keeping sick days and accidents to a minimum. The bonus may be a maximum of HUF 120,000 per year per employee.

There are currently 5,052 people on the Dunaferr payroll, Világgazdaság noted. At the beginning of this year, employees protested for higher wages, and workers at one of its business units are considering a strike again.

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