Kazincbarcika, Hungary - BorsodChem has reported positive shifts in trends for some of its key products, notably the sales volumes of TDI (toluene diisocyanate) "bottoming out" in April and moving into a stable upward curve for the last three months.
Although sales improved for TDI, the company's MDI (methylene diphenyl diisocyanate) sales have yet to improve after the recent decline in demand, the company said in a 28 July statement.
BorsodChem's cost-cutting and efficiency-improvement programme, first launched in November 2008, has resulted in savings of more than Euro 15 million ($21 million), without the loss of any jobs, the company pointed out. "It has also contributed to the stabilisation of the company's cash position that the management has agreed with each supplier on deferred payments," said BorsodChem ceo, Wolfgang Büchele. "Thus, despite the suspended investment programmes, the company can satisfy all of it ongoing payment obligations with a smoothed time schedule," he added.
The company is in continuous talks with the Hungarian government over financial support, which was agreed in principle in Feb 2009, the statement said. According to BorsodChem, the talks are "in a very advanced phase" and expected to be concluded by August 2009. Press reports have claimed the Hungarian Government is offering a Euro 100 million loan to BorsodChem.
"The company will announce the outcome of the negotiations with the Hungarian Government and the financing banks as soon as a final agreement is achieved," Büchele concluded. (RD)