BorsodChem shuts loss-making PVC processing unit

30 August 2011 12:59  [Source: ICIS news]

LONDON (ICIS)--BorsodChem is to close down its loss-making polyvinyl chloride (PVC) plastics processing subsidiary BC-Ablakprofil after failing to find a buyer for the company, the Hungarian PVC and isocyanates producer said on Tuesday.

Ablakprofil, which employs 82 people, had accumulated losses of about forint (Ft) 2.2bn ($11.7m, €8.1m) over the past seven years, despite a comprehensive cost-cutting programme, BorsodChem said.

“BorsodChem has decided to close down Ablakprofil… as part of a business initiative to focus on core businesses and improve the overall cost efficiency and competitiveness of the group… The business of the subsidiary is not at all related to plastics raw material production, the core business of BorsodChem,” it added in a press release on the closure.

“Efforts [to find a buyer for Ablakprofil] have borne no fruit in the past three years, and because it is anticipated that the business environment will remain unfavourable for Ablakprofil’s products in the foreseeable future, BorsodChem has reluctantly decided to close down the loss-making subsidiary,” the release said.

In February, BorsodChem, located in Kazincbarcika, northern Hungary, was acquired by China's Wanhua Industrial Group.

($1 = Ft187.4, €1 = Ft271.8)


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