BorsodChem opens new production site in Hungary, receives government subsidy
Kazincbarcika, Hungary – Hungary-based BorsodChem, a subsidiary of China’s Wanhua Chemical Group, inaugurated its new production site, Site IV, in a ceremony on 30 June. The site, the result of an investment of nearly €400m, was opened in a ceremony attended by Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó.The brownfield site, covering 400,000m2 in the Berente Village suburb of Kazincbarcika, will produce mono-nitrobenzene (MNB), aniline, and concentrated nitric acid. The site also includes a new 50MW power plant. Construction began five years ago with the aim of providing vertical integration for the company's production units. Following approval from the European Commission, the Hungarian Government supported the investment with a tax credit of €44.5m.A significant part of the investment in Site IV is the Anilin plant group, which aims for self-sufficiency in MDI production. The group includes units for producing MNB and aniline. MNB is used to manufacture aniline which, in turn, is the main ingredient needed to produce MDI (methylene diphenyl diisocyanate), BorsodChem’s flagship product. The company says both production units conform to the latest standards of operational safety, product quality, and environmental protection.By replacing imported aniline with local production, BorsodChem says it is significantly reducing the environmental impact caused by transporting this raw material. The new Anilin plant group aligns with BorsodChem's sustainability strategy, which was published earlier this year. The addition of a second 50MW natural gas power plant doubles the company's energy generation capacity. The company says the new power plant uses high-efficiency co-generation, to not only meet the increased energy demand, but also reduce BorsodChem's reliance on the energy market.BorsodChem has also inaugurated a concentrated nitric acid plant – with a capacity of 90kt/year at its original site. This project received support from the Hungarian Government in the form of a non-refundable cash subsidy of over HUF 1.3bn, as part of a programme aimed at enhancing the competitiveness of large companies. The concentrated nitric acid plant will facilitate the production of another vital product for the company, TDI (toluene diisocyanate), for the production of flexible polyurethane foams.BorsodChem achieved sales revenue exceeding €3bn in 2022, despite the difficulties caused by the energy crisis – which hit the chemical industry particularly hard – and the ongoing war in neighbouring Ukraine. Some 82% of the company’s sales revenue comes from exports, to more than 60 different countries. The company, which celebrates its 75th anniversary in 2024, has invested more than €1bn on its manufacturing capabilities in the last five years (including this latest investment), creating employment for 420 additional staff, and for thousands of contractors.
