State-owned liquidator Nemzeti Reorganizációs Nonprofit is to take over the management and operation of Hungarian alumina maker MAL after a court has ordered the company to be liquidated based on a claim submitted by one of the creditors, the National Development Ministry (NFM) said on Wednesday.
MAL was declared a company of strategic importance in September 2012. The national asset management company MNV will provide appropriate funds for reasonable measures serving to maintain operation and thousands of jobs at the company and its suppliers, the statement said.
MAL came under pressure following a red sludge spill in October, 2010, which killed several people and caused huge damage. News of its liquidation comes the same day the company announced it has wound up production at its bauxite mine in Halimba, laying off 20 workers so far, while relocating 80 to nearby production bases.
Chief executive Zoltán Bakonyi told MTI that the output of the mine in Halimba had fallen drastically and it could no longer be operated profitably.