Kazinbarcinka, Hungary -- BorsodChem Zrt has decided to close BC-Ablakprofil Kft, a loss-making plastics processing subsidiary, as part of an initiative to focus on core businesses and improve the cost efficiency and competitiveness of the group.
Although Ablakprofil is consolidated into BorsodChem, the subsidiary's business is not related to plastics raw material production, BorsodChem's central business.
Ablakprofil has accumulated a loss of about HUF 2200 million ($11.7 million) over the last seven years.
The management set up a comprehensive cost cutting programme,and BorsodChem has approached many companies to find a new owner for Ablakprofil, to no effect.Hence, BorsodChem said it has "reluctantly decided to close it down.
BorsodChem has started negotiations with employee representatives and trade unions.
Wolfgang Büchele, ceo of BorsodChem extended his gratitude to Ablakprofil's employees for their commitment to the company.