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US-Hungarian joint venture to build Ft 18 bln bioethanol plant

US investment company CSLM Holding and Hungary's Bio-Tech-Energy announced on Wednesday plans to build a Ft 18 billion (€67.4 million) bioethanol plant in Hungary which would process an annual 500,000 tons of corn, supplied by 500 producers.

The plant, to be built in Marcali, southwest Hungary will be owned in equal part by CSLM and Bio-Tech-Energy, but CSLM will finance the project as well as provide the technology. Construction is expected to start in 2007 and production could start by the beginning of 2008, Bio-Tech-Energy CEO János Rácz said. President of CSLM Howard Kloch said the company is currently working on three similar projects in the United States. Although none are yet completed, the company has experience with these types of investments through its international partners, he said. The plant will employ 50 people.