Under a partnership agreement between BorsodChem (BC) and Austria's Donau Chemie AG, Donau Chemie is to set up a water-treatment chemical plant at BorsodChem's site in Kazincbarcika (N Hungary), BorsodChem told MTI on Monday.
The new facility will process hydrochloric acid, a by-product from BorsodChem's isocyanate production.
Donau Chemie will build the plant through initial investment of around €6m, creating around 20 new jobs. As part of the partnership agreement, Donau Chemie will take possession of hydrochloric acid, produced in higher quantities after BorsodChem's new TDI plant has started operating, the statement said.
BorsodChem called an international tender last year to select a partner to take possession of the hydrochloric acid in the long term, and selected Donau Chemie out of several applicants.
The new plant is scheduled to start operating at the end of next year. In the event of a shortage, the company will also supply BorsodChem with chlorine.
Although Donau Chemie will now take over most of the hydrochloric acid generated at BorsodChem, BorsodChem will continue to sell 30,000-40,000 tons of hydrochloric acid per year directly on the CEE market, the company said.
BorsodChem had revenue of €750m in 2010.
The Donau Chemie Group had consolidated revenue of €257m last year.