As a result of the agreement between the Hungarian government and BorsodChem, the company has suspended its workforce reduction plans which had earlier been an integral part of the company's ongoing restructuring programme and had seemed unavoidable.
In response to the agreement Nandor Gur, chairman of the Labour and Employment Committee of the Hungarian Parliament said: “While complying with the EU’s competition policy, it is the aim of the Hungarian government to support domestic industrial companies with all available means in their efforts to overcome the economic crisis and thereby to save jobs. The chemicals sector constitutes a relatively large part of the Hungarian economy, and the performance of the sector is noteworthy even at an international level. I'd like to make it clear that the government is in no way indifferent as to how BorsodChem, a company with great traditions and outstanding production capabilities, overcomes the challenges of the recession. The agreement between the government and BorsodChem is a good example of the role that the government is undertaking in order to save jobs in regions suffering from the effects of the economic crisis."
Peter Szitka, mayor of Kazincbarcika added: “The local government of Kazincbarcika initiated negotiations between the Hungarian government and BorsodChem because the company has been the largest employer for decades in both the Kazincbarcika micro region and in Borsod-Abaúj-Zemplén, a county which is currently struggling with an unemployment rate of 21.6 percent (*). The company provides jobs for thousands of families living in the area. I hope that BorsodChem will remain a major player in the region’s economy in the economic upturn and beyond.”
For BorsodChem, CEO Dr Wolfgang Büchele said: “The management of BorsodChem extends its gratitude to the local government of Kazincbarcika for its continued efforts to support the company in finding an alternative to the headcount reduction during the negotiations with the government.” He noted that hammering out the final details of the agreement with the government is expected to take "a couple of months." However, he stressed that "one thing is certain already: the collective headcount reduction has become avoidable in the short run. As part of the cost-cutting and efficiency improvement programme, the company offers the opportunity of early retirement to those employees near retiring age. The financial resources to cover the costs of the early retirement will be provided by the company."
Permira Funds, as majority owner of BorsodChem, appreciates the work culture and the chemical expertise of BorsodChem’s staff, which date back to several decades. The owners are grateful to every employee for their valuable contributions, as the company’s products, thanks to the proprietary technology developed by the company’s chemical engineers in cooperation with the well-educated skilled workers, are competitive in most markets worldwide. As a long-term financial investor, Permira is dedicated to Hungary and BorsodChem and provides the management with all available support in order for the company to improve its long-term competitiveness and to develop the company into Europe's largest TDI producer and one of the leading MDI producers.
As a result of the agreement between the Hungarian government and