Janos Kalman, managing director of the Hungarian cement producer Hejocsabai Cement es Meszmu (HCM), has revealed that the company will need the government's support to be able to restart cement production at its plant in Miskolc.
HCM could start the necessary development only after receiving the required permits and a specific government decision could speed up the process
HCM plans to spend HUF 9billion (€28.7 million) on setting up the first two production lines, and some 66% of this amount may be covered from state subsidy, while the company plans to take out a loan to cover the rest of the amount.
Some 344 jobs could be created as a result of the development with the total cost of the relaunch is estimated at HUF 13 billion although Kalman says the production unit is worth some HUF 100 billion.
In another report on the country's annual cement consumption, it is said that some 35% of a forecast increased in demand for cement could be covered by HCM.
Currently, cement consumption in Hungary reaches some 3 million tonnes/year and some 900,000 tonnes of this volume are covered by imports from Slovakia and Romania. Cement consumption is expected to grow to 5 million tonnes a year in the short term.
