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BorsodChem to expand for €500 mln

BorsodChem Rt, the biggest maker of PVC plastic in Eastern Europe, said it will spend up to €500 million expanding production to meet growing demand, Bloomberg reported.

The company will build two new plants at its site in Kazincbarcika, NE Hungary, to raise the production of MDI and TDI, foams used in the building and automotive industries, Chief Executive Officer Kay Gugler said at the company’s annual meeting in Budapest Friday. BorsodChem said it's expanding capacity while maintaining current levels of PVC plastic production. The company has spent €300 million in the past three years boosting production to become a chemicals group offering products other than PVC. On Friday the company also published its unaudited consolidated flash report, revealing consolidated net profits fell 52.7% to Ft 2.47 billion in Q1 2006 compared to the same period a year earlier, but operating profit increased 3.2% to Ft 6.018 billion.