Hungary’s MOL to cut up to 700 jobs, part of corporate restructuring

01 October 2012 11:06  [Source: ICIS news]

LONDON (ICIS)--Hungary’s MOL is looking to lay off 600-700 people from its group-wide operations, the oil, gas and petrochemical company said on Monday.

MOL, which has suffered a petrochemical operating loss for the past two quarters, said the job cuts - equivalent to 6-7% of the workforce - would be focused on its downstream division and be part of a large-scale corporate restructuring and efficiency improvement drive.

A seriously negative downstream business environment combined with the ongoing weakness of the global economy made the redundancies necessary, the company added.

The corporate restructuring and efficiency improvement project was aimed at lifting the group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) by approximately $500-550m (€390-429m) by 2014, MOL said.

On 25 September, MOL announced that it was also proceeding with a three-year programme which could help it “outgrow the crisis”.

This is to include the construction of a butadiene (BD) plant at the Tiszaujvaros location of its TVK subsidiary, which runs most of MOL’s petrochemical assets.

MOL's current range of petrochemicals includes polypropylene (PP) and polyethylene (PE) materials, including high density polyethylene (HDPE) and homopolymers.

($1 = €0.78)

By: Will Conroy
+44 20 8652 3214

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