Gyulai Húskombinát, one of Hungary's oldest and most renowned sausage makers, will concentrate production on two of the company's leading products, Gyulai sausage and Gyulai liver paste, eliminating production of 15-20 other meat products, the business daily Világgazdaság reported, citing Gyulai Húskombinát CEO János Ruck.
Ruck told the newspaper that a lack of credit resources prompted Gyulai Húskombinát to concentrate production on its two leading products, noting that the company had recently received HUF 500 million (€1.75 million) in assistance from its majority owner, Hage Zrt, though would still need HUF 700 million – HUF 800 million to continue normal production.
Ruck said that the Gyulai Húskombinát will use 80%-90% of its output capacity following the refocus of production, adding that the company does not plan to significantly reduce its current workforce of 500 as the result of the shift.
Ruck noted that Gyulai Húskombinát is currently involved in negotiations with the Hungarian Development Bank regarding access to a proposed HUF 30 billion bank-guarantee package for food-industry companies to become available at the end of May if it receives government approval.
The daily newspaper Népszabadság reported on May 2 that Gyulai Húskombinát could go bankrupt if it does not find a new financial partner to provide the company with working capital. (MTI – Econews)